8-K

United States

Securities and Exchange Commission

Washington, DC 20549

Form 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 25, 2021

PERFICIENT, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-15169	74-2853258
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

555 Maryville University Drive

Suite 600

Saint Louis, Missouri 63141

(Address of principal executive offices)

(314) 529-3600

(Registrant’s telephone number, including area code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	PRFT	The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 25, 2021, Perficient, Inc. (“Perficient”) announced its financial results for the three and twelve months ended December 31, 2020. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 2.02.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information and Exhibits be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 7.01 REGULATION FD DISCLOSURE

Financial Results Presentation

    On February 25, 2021, Perficient posted on the Investor Relations page of its website at www.perficient.com a slide presentation related to its fourth quarter ended December 31, 2020 financial results and operating metrics. A copy of the slide presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The information contained or incorporated in our website is not part of this filing.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d)Exhibits.

Exhibit
Number	Description
99.1	Perficient, Inc. Press Release, dated February 25, 2021, announcing financial results for the three and twelve months ended December 31, 2020
99.2	Perficient, Inc. Q4 2020 Financial Results Presentation
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		PERFICIENT, INC.
Date:	February 25, 2021	By:	/s/ Paul E. Martin
			Paul E. Martin
			Chief Financial Officer

EX-99.1

EXHIBIT 99.1

For more information, please contact:

Bill Davis, Perficient, 314-529-3555

bill.davis@perficient.com

PERFICIENT REPORTS FOURTH QUARTER AND FULL YEAR 2020 RESULTS

~ Company Projects Double Digit Revenue and Earnings Growth in 2021 ~

ST. LOUIS (February 25, 2021) - Perficient, Inc. (Nasdaq: PRFT) (“Perficient”), the leading global digital consultancy transforming the world’s largest enterprises and biggest brands, today reported its financial results for the quarter and year ended December 31, 2020.

Financial Highlights

For the quarter ended December 31, 2020:

•Services revenues excluding reimbursable expenses increased 13% to $158.9 million from $140.5 million in the fourth quarter of 2019;

•Total revenues increased 12% to $162.6 million from $145.2 million in the fourth quarter of 2019;

•Net income decreased 29% to $8.4 million from $11.8 million in the fourth quarter of 2019, reflecting, among other things, an adjustment to fair value of contingent consideration resulting from performance above expectations by each of our three 2020 acquisitions, increased amortization expense and increased interest expense, partially offset by improved operating results;

•GAAP earnings per share results on a fully diluted basis decreased 28% to $0.26 from $0.36 in the fourth quarter of 2019, primarily as a result of the decrease in net income discussed above;

•Adjusted earnings per share results (a non-GAAP measure; see attached schedule, which reconciles to GAAP earnings per share) on a fully diluted basis increased 31% to $0.76 from $0.58 in the fourth quarter of 2019; and

•Adjusted EBITDA(a non-GAAP measure; see attached schedule, which reconciles to GAAP net income) increased 32% to $35.0 million from $26.5 million in the fourth quarter of 2019.

For the year ended December 31, 2020:

•Services revenues excluding reimbursable expenses increased 10% to $599.5 million from $546.4 million in 2019;

•Total revenues increased 8% to $612.1 million from $565.5 million in 2019;

•Net income decreased 19% to $30.2 million from $37.1 million in 2019, reflecting, among other things, an adjustment to fair value of contingent consideration resulting from performance above expectations by each of our three 2020 acquisitions, increased amortization expense, a loss on debt extinguishment, increased acquisition costs and increased interest expense, partially offset by improved operating results;

•GAAP earnings per share results on a fully diluted basis decreased 19% to $0.93 from $1.15 in 2019, primarily as a result of the decrease in net income discussed above;

•Adjusted earnings per share results (a non-GAAP measure; see attached schedule, which reconciles to GAAP earnings per share) on a fully diluted basis increased 21% to $2.50 from $2.07 in 2019; and

•Adjusted EBITDA(a non-GAAP measure; see attached schedule, which reconciles to GAAP net income) increased 22% to $116.3 million from $95.0 million in 2019.

“In a year marked by uncertainty, challenge and change, Perficient's performance was strong and our momentum accelerated,” said Jeffrey Davis, chairman and CEO. “The pandemic's impact on businesses varied across industries, but its most profound, universal and long-lasting effect was that it made enterprises immediately and acutely aware that digital transformation was required now and permanently. In this environment of increasing customer spend, we're anticipating another year of margin expansion, accelerating revenue, and earnings growth as we continue to aggressively grow our global delivery teams.”

Other Highlights

Among other recent achievements, Perficient:

•Was recognized as a “Leader” in the 2021 Global Outsourcing 100 by the International Association of Outsourcing Professionals (IAOP), naming Perficient one of the world's best outsourcing service providers and advisors;

•Named Tom Hogan President, in addition to his existing role of Chief Operating Officer;

•Appointed five Area Vice Presidents, expanding Perficient's executive leadership team to drive continued growth and operational excellence across the company while delivering superior solutions for clients;

•Announced that 10 colleagues were designated as Sitecore Most Valuable Professionals (MVPs). Perficient also achieved the Sitecore Content Hub Specialization, further enabling unified customer experiences;

•Achieved the Diamond Level Partner status with OneStream, representing exceptional solution delivery and commitment to customer success;

•Was listed in the Forrester “New Wave: Computer Vision Consultancies, Q4 2020” report, which identified Perficient as one of “13 providers that matter most” with proficiency in AI strategy development and documentation automation;

•Was included in the Forrester “Now Tech: Commerce Services, Q4 2020” report as a provider with a focus on experience and operations, able to build commerce experiences for enterprises and provide services that help build out these experiences around order management, inventory management, and payment gateways;

•Launched Perficient Bright Paths, a program designed to advance STEM education and career opportunities for underrepresented constituencies and communities; and

•Was named a Top Workplace by the Detroit Free Press, adding to 2020 best workplace distinctions awarded in St. Louis, Charlotte, Atlanta, Chicago, Southern California, and Minnesota.

Business Outlook

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. See “Safe Harbor Statement” below.

Perficient expects its first quarter 2021 revenue to be in the range of $165 million to $168 million. First quarter GAAP earnings per share is expected to be in the range of $0.31 to $0.34. First quarter adjusted earnings per share (a non-GAAP measure; see attached schedule which reconciles to GAAP earnings per share guidance) is expected to be in the range of $0.65 to $0.68.

Perficient is providing full year 2021 revenue guidance in the range of $670 million to $704 million, 2021 GAAP earnings per share guidance in the range of $1.57 to $1.72 and 2021 adjusted earnings per share (a non-GAAP measure; see attached schedule which reconciles to GAAP earnings per share guidance) guidance in the range of $2.85 to $3.00.

Conference Call Details

Perficient will host a conference call regarding fourth quarter and full year 2020 financial results today at 11 a.m. Eastern.

WHAT: Perficient Reports Fourth Quarter and Full Year 2020 Results

WHEN: February 25, 2021,at11 a.m. Eastern

CONFERENCE CALL NUMBERS: 855-246-0403 (U.S. and Canada); 414-238-9806 (International)

PARTICIPANT PASSCODE: 7685538

REPLAY TIMES: February 25, 2021, at 2 p.m. Eastern, through Thursday, March 4, 2021, at 2 p.m. Eastern

REPLAY NUMBER: 855-859-2056 (U.S. and Canada); 404-537-3406 (International)

REPLAY PASSCODE: 7685538

About Perficient

Perficient is a leading global digital consultancy. We imagine, create, engineer, and run digital transformation solutions that help our clients exceed customers’ expectations, outpace competition, and grow their business. With unparalleled strategy, creative, and technology capabilities, we bring big thinking and innovative ideas, along with a practical approach to help the world’s largest enterprises and biggest brands succeed. Traded on the Nasdaq Global Select Market, Perficient is a member of the Russell 2000 index and the S&P SmallCap 600 index. For more information, visit www.perficient.com.

Safe Harbor Statement

Some of the statements contained in this news release that are not purely historical statements discuss future expectations or state other forward-looking information related to financial results and business outlook for 2021. Those statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on management’s current intent, belief, expectations, estimates, and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements include (but are not limited to) those disclosed under the heading “Risk Factors” in our most recently filed annual report on Form 10-K, and the following, many of which are, or may be, amplified by the novel coronavirus (COVID-19) pandemic:

(1)the possibility that our actual results do not meet the projections and guidance contained in this news release;

(2)the impact of the general economy and economic and political uncertainty on our business;

(3)the impact of the COVID-19 pandemic on our business;

(4)risks associated with potential changes to federal, state, local and foreign laws, regulations, and policies;

(5)risks associated with the operation of our business generally, including:

a. client demand for our services and solutions;

b. effectively competing in a highly competitive market;

c. risks from international operations including fluctuations in exchange rates;

d. adapting to changes in technologies and offerings;

e. obtaining favorable pricing to reflect services provided;

f. risk of loss of one or more significant software vendors;

g. maintaining a balance of our supply of skills and resources with client demand;

h. changes to immigration policies;

i. protecting our clients’ and our data and information;

j. changes to tax levels, audits, investigations, tax laws or their interpretation;

k. making appropriate estimates and assumptions in connection with preparing our consolidated financial statements; and

l. maintaining effective internal controls;

(6)risks associated with managing growth organically and through acquisitions;

(7)risks associated with servicing our debt, the potential impact on the value of our common stock from the conditional conversion features of our debt and the associated convertible note hedge transactions;

(8)legal liabilities, including intellectual property protection and infringement or the disclosure of personally identifiable information; and

(9)the risks detailed from time to time within our filings with the Securities and Exchange Commission.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. This cautionary statement is provided pursuant to Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this release are made only as of the date hereof and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.

Perficient, Inc.

Unaudited Consolidated Statements of Operations

(in thousands, except per share information)

	Three Months Ended December 31,				Year Ended December 31,
	2020		2019		2020		2019
Revenues
Services excluding reimbursable expenses	$	158,917	$	140,475	$	599,473	$	546,444
Reimbursable expenses	2,673		3,283		10,110		15,474
Total services	161,590		143,758		609,583		561,918
Software and hardware	964		1,401		2,550		3,609
Total revenues	162,554		145,159		612,133		565,527
Cost of revenues (exclusive of depreciation and amortization, shown separately below)
Cost of services	97,536		87,727		373,057		347,585
Stock compensation	2,111		1,665		7,666		6,628
Total cost of revenues	99,647		89,392		380,723		354,213
Selling, general and administrative	30,028		30,938		122,803		122,920
Stock compensation	2,984		3,031		11,872		11,267
Total selling, general and administrative	33,012		33,969		134,675		134,187
Depreciation	1,437		1,266		5,430		4,447
Amortization	7,300		4,007		22,857		16,151
Acquisition costs	18		301		3,675		896
Adjustment to fair value of contingent consideration	5,726		611		9,519		301
Income from operations	15,414		15,613		55,254		55,332
Net interest expense	3,333		1,867		10,128		7,418
Loss on debt extinguishment	200		—		4,537		—
Net other expense (income)	277		7		260		(27)
Income before income taxes	11,604		13,739		40,329		47,941
Provision for income taxes	3,183		1,947		10,148		10,816
Net income	$	8,421	$	11,792	$	30,181	$	37,125
Basic net income per share	$	0.27	$	0.38	$	0.95	$	1.18
Diluted net income per share	$	0.26	$	0.36	$	0.93	$	1.15
Shares used in computing basic net income per share	31,773		31,411		31,793		31,344
Shares used in computing diluted net income per share	32,541		32,566		32,516		32,243

Perficient, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

	December 31, 2020		December 31, 2019
Assets
Current assets:
Cash and cash equivalents	$	83,204	$	70,728
Accounts receivable, net	133,085		129,118
Prepaid expenses	5,575		4,647
Other current assets	4,646		7,404
Total current assets	226,510		211,897
Property and equipment, net	11,902		12,170
Operating lease right-of-use assets	38,539		27,748
Goodwill	427,928		335,564
Intangible assets, net	63,571		37,953
Other non-current assets	17,311		15,160
Total assets	$	785,761	$	640,492
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	25,613	$	23,081
Other current liabilities	103,267		61,503
Total current liabilities	128,880		84,584
Long-term debt, net	183,624		124,664
Operating lease liabilities	29,098		19,649
Other non-current liabilities	50,081		30,580
Total liabilities	391,683		259,477
Stockholders' equity:
Preferred stock	—		—
Common stock	50		49
Additional paid-in capital	459,866		455,465
Accumulated other comprehensive income (loss)	3,746		(2,650)
Treasury stock	(289,225)		(261,624)
Retained earnings	219,641		189,775
Total stockholders' equity	394,078		381,015
Total liabilities and stockholders' equity	$	785,761	$	640,492

About Non-GAAP Financial Information

This news release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (“GAAP”), please see the section entitled “About Non-GAAP Financial Measures” and the accompanying tables entitled “Reconciliation of GAAP to Non-GAAP Measures.”

About Non-GAAP Financial Measures

Perficient provides non-GAAP financial measures for adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, stock compensation, acquisition costs and adjustment to fair value of contingent consideration), adjusted net income, and adjusted earnings per share data as supplemental information regarding Perficient’s business performance. Perficient believes that these non-GAAP financial measures are useful to investors because they provide investors with a better understanding of Perficient’s past financial performance and future results. Perficient’s management uses these non-GAAP financial measures when it internally evaluates the performance of Perficient’s business and makes operating decisions, including internal operating budgeting, performance measurement, and the calculation of bonuses and discretionary compensation. Management excludes stock-based compensation related to restricted stock awards, the amortization of intangible assets, amortization of debt discounts and issuance costs related to convertible senior notes, acquisition costs, adjustments to the fair value of contingent consideration, net other income and expense, the impact of other infrequent or unusual transactions, and income tax effects of the foregoing, when making operational decisions.

Perficient believes that providing the non-GAAP financial measures to its investors is useful because it allows investors to evaluate Perficient’s performance using the same methodology and information used by Perficient’s management. Specifically, adjusted net income is used by management primarily to review business performance and determine performance-based incentive compensation for executives and other employees. Management uses adjusted EBITDA to measure operating profitability, evaluate trends, and make strategic business decisions.

Non-GAAP financial measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of discretionary judgment as to which charges are excluded from the non-GAAP financial measure. However, Perficient’s management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of adjusted EBITDA, adjusted net income, and adjusted earnings per share. In addition, some items that are excluded from adjusted net income and adjusted earnings per share can have a material impact on cash. Management compensates for these limitations by evaluating the non-GAAP measure together with the most directly comparable GAAP measure. Perficient has historically provided non-GAAP financial measures to the investment community as a supplement to its GAAP results to enable investors to evaluate Perficient’s business performance in the way that management does. Perficient’s definition may be different from similar non-GAAP financial measures used by other companies and/or analysts.

The non-GAAP adjustments, and the basis for excluding them, are outlined below:

Amortization

Perficient has incurred expense on amortization of intangible assets primarily related to various acquisitions. Management excludes these items for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share. Perficient believes that eliminating this expense from its non-GAAP financial measures is useful to investors because the amortization of intangible assets can be inconsistent in amount and frequency, and is significantly impacted by the timing and magnitude of Perficient’s acquisition transactions, which also vary substantially in frequency from period to period.

Acquisition Costs

Perficient incurs transaction costs related to merger and acquisition-related activities which are expensed in its GAAP financial statements. Management excludes these items for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share. Perficient believes that excluding these expenses from its non-GAAP financial measures is useful to investors because these are expenses associated with each transaction and are inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult.

Adjustment to Fair Value of Contingent Consideration

Perficient is required to remeasure its contingent consideration liability related to acquisitions each reporting period until the contingency is settled. Any changes in fair value are recognized in earnings. Management excludes these items for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share. Perficient believes that excluding these adjustments from its non-GAAP financial measures is useful to investors because they are related to acquisitions and are inconsistent in amount and frequency from period to period.

Amortization of Debt Discount and Debt Issuance Costs

On August 14, 2020, Perficient issued $230.0 million aggregate principal amount of 1.250% Convertible Senior Notes due 2025, and on September 11, 2018, Perficient issued $143.8 million aggregate principal amount of 2.375% Convertible Senior Notes due 2023 (the “2025 Notes” and the “2023 Notes,” respectively, and together, the “Notes”) in private placements to qualified institutional purchasers. In accordance with accounting for debt with conversions and other options, Perficient bifurcated the principal amount of the Notes into liability and equity components. The resulting debt discounts are being amortized to interest expense over the period from the issuance dates through the respective contractual maturity dates. Issuance costs related to the Notes were allocated pro rata based on the relative fair values of the liability and equity components. Issuance costs attributable to the liability component of the Notes, in addition to issuance costs related to Perficient’s credit agreement, are being amortized to interest expense over their respective terms. Perficient believes that excluding these non-cash expenses from its non-GAAP financial measures is useful to investors because the expenses are not reflective of the company’s business performance.

Loss on Extinguishment of Debt

Perficient repurchased a portion of its 2023 Notes in 2020, which resulted in a loss on extinguishment of debt. Perficient believes that excluding this loss from its non-GAAP financial measures is useful to investors because the expense is infrequent and not reflective of the company’s business performance.

Foreign Exchange Loss (Gain)

Non-operating foreign currency exchange gains and losses, inclusive of gains and losses on related foreign exchange forward contracts not designated as hedging instruments for accounting purposes, are reported in net other expense (income) in our consolidated statements of operations. As our operations expands into countries outside of the United States, and in particular as a result of our 2020 acquisition of Productora de Software S.A.S., based in Colombia, foreign exchange gains and losses have and will become increasingly material. Perficient believes that excluding these gains and losses from its non-GAAP financial measures is useful to investors because foreign exchange gains and losses will vary as the underlying currencies fluctuate, which makes it difficult to compare current and historical results.

Stock Compensation

Perficient incurs stock-based compensation expense under Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation - Stock Compensation. Perficient excludes stock-based compensation expense and the related tax effects for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share because stock-based compensation is a non-cash expense, which Perficient believes is not reflective of its business performance. The nature of stock-based compensation expense also makes it very difficult to estimate prospectively, since the expense will vary with changes in the stock price and market conditions at the time of new grants, varying valuation methodologies, subjective assumptions, and different award types, making the comparison of current results with forward-looking guidance potentially difficult for investors to interpret. The tax effects of stock-based compensation expense may also vary significantly from period to period, without any change in underlying operational performance, thereby obscuring the underlying profitability of operations relative to prior periods. Perficient believes that non-GAAP measures of profitability, which exclude stock-based compensation, are widely used by analysts and investors.

Dilution Offset from Convertible Note Hedge Transactions

It is Perficient’s current intent to settle conversions of the Notes through combination settlement, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of our common stock. We exclude the shares that are issuable upon conversions of the Notes because we expect that the dilution from such shares will be offset by the convertible note hedge transactions entered into in August 2020 and September 2018 in connection with the issuance of the Notes.

Perficient, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(unaudited)

(in thousands, except per share data)

	Three Months Ended December 31,				Year Ended December 31,
	2020		2019		2020		2019
GAAP Net Income	$	8,421	$	11,792	$	30,181	$	37,125
Adjustments:
Provision for income taxes	3,183		1,947		10,148		10,816
Amortization	7,300		4,007		22,857		16,151
Acquisition costs	18		301		3,675		896
Adjustment to fair value of contingent consideration	5,726		611		9,519		301
Amortization of debt discount and issuance costs	2,510		1,187		6,855		4,667
Loss on extinguishment of debt	200		—		4,537		—
Foreign exchange loss (gain)	275		12		267		56
Stock compensation	5,095		4,696		19,538		17,895
Adjusted Net Income Before Tax	32,728		24,553		107,577		87,907
Adjusted income tax (1)	7,920		5,917		26,356		21,098
Adjusted Net Income	$	24,808	$	18,636	$	81,221	$	66,809
GAAP Earnings Per Share (diluted)	$	0.26	$	0.36	$	0.93	$	1.15
Adjusted Earnings Per Share (diluted)	$	0.76	$	0.58	$	2.50	$	2.07
Shares used in computing GAAP Earnings Per Share (diluted)	32,541		32,566		32,516		32,243
Dilution offset from convertible note hedge transactions	(34)		(297)		(52)		—
Shares used in computing Adjusted Earnings Per Share (diluted)	32,507		32,269		32,464		32,243

(1) The estimated adjusted effective tax rate of 24.2% and 24.1% for the three months ended December 31, 2020 and 2019, respectively, and 24.5% and 24.0% for the year ended December 31, 2020 and 2019, respectively, has been used to calculate the provision for income taxes for non-GAAP purposes.

Perficient, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(unaudited)

(in thousands)

	Three Months Ended December 31,				Year Ended December 31,
	2020		2019		2020		2019
GAAP Net Income	$	8,421	$	11,792	$	30,181	$	37,125
Adjustments:
Provision for income taxes	3,183		1,947		10,148		10,816
Net interest expense	3,333		1,867		10,128		7,418
Net other expense (income)	277		7		260		(27)
Depreciation	1,437		1,266		5,430		4,447
Amortization	7,300		4,007		22,857		16,151
Acquisition costs	18		301		3,675		896
Adjustment to fair value of contingent consideration	5,726		611		9,519		301
Loss on extinguishment of debt	200		—		4,537		—
Stock compensation	5,095		4,696		19,538		17,895
Adjusted EBITDA (1)	$	34,990	$	26,494	$	116,273	$	95,022

(1) Adjusted EBITDA is a non-GAAP performance measure and is not intended to be a performance measure that should be regarded as an alternative to or more meaningful than either GAAP operating income or GAAP net income. Adjusted EBITDA measures presented may not be comparable to similarly titled measures presented by other companies.

Perficient, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(unaudited)

	Q1 2021				Full Year 2021
	Low end of adjusted goal		High end of adjusted goal		Low end of adjusted goal		High end of adjusted goal
GAAP EPS	$	0.31	$	0.34	$	1.57	$	1.72
Non-GAAP adjustment (1):
Non-GAAP reconciling items	0.48		0.47		1.72		1.71
Tax effect of reconciling items	(0.14)		(0.13)		(0.44)		(0.43)
Adjusted EPS	$	0.65	$	0.68	$	2.85	$	3.00

(1) Non-GAAP adjustment represents the impact of amortization expense, stock compensation, amortization of debt discount and issuance costs, loss on extinguishment of debt, foreign exchange gains and losses, acquisition costs, and adjustments to fair value of contingent consideration, net of the tax effect of these adjustments, divided by adjusted fully diluted shares. Perficient currently expects its Q1 2021 and full year 2021 GAAP effective income tax rate to be approximately 21% and 25%, respectively. The Company's estimates of GAAP and adjusted fully diluted shares for 2021 are included in the following table. These estimates could be affected by share repurchases, shares issued in conjunction with future acquisitions and the potential impact from the conditional conversion features of our debt.

(in millions)	Q1 2021	Full Year 2021
GAAP Fully Diluted Shares	33.0	33.3
Non-GAAP adjustment (2):
Dilution offset from convertible note hedge transactions	(0.5)	(0.9)
Adjusted Fully Diluted Shares	32.5	32.4

(2) Non-GAAP adjustment represents the exclusion of shares that are issuable upon conversion of our convertible notes due to the expectation that such shares will be offset by the convertible note hedge transactions entered into in August 2020 and September 2018.

EX-99.2

Q4 2020 Financial Results February 25, 2021

2 Safe Harbor Statement Some of the statements contained in this presentation that are not purely historical statements, including our GAAP EPS guidance and Adjusted EPS guidance, as well as our effective income tax rate and GAAP and adjusted fully diluted shares for 2021, discuss future expectations or state other forward-looking information related to financial results and business outlook for 2021. Those statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements. The “forward- looking” information is based on management’s current intent, belief, expectations, estimates, and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements are disclosed under the heading “Risk Factors” in our most recently filed annual report on Form 10-K. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. This cautionary statement is provided pursuant to Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this presentation are made only as of the date hereof and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.

3 Q1 2021 Full Year 2021 Low end of adjusted goal High end of adjusted goal Low end of adjusted goal High end of adjusted goal GAAP EPS $ 0.31 $ 0.34 $ 1.57 $ 1.72 Non-GAAP adjustment (1): Non-GAAP reconciling items 0.48 0.47 1.72 1.71 Tax effect of reconciling items (0.14) (0.13) (0.44) (0.43) Adjusted EPS $ 0.65 $ 0.68 $ 2.85 $ 3.00 Reconciliation of Adjusted GAAP Measures The following table provides a reconciliation of Perficient, Inc. GAAP EPS guidance to Adjusted EPS guidance: (1) Non-GAAP adjustment represents the impact of amortization expense, stock compensation, amortization of debt discount and issuance costs, loss on extinguishment of debt, foreign exchange gain or loss, acquisition costs, and adjustments to fair value of contingent consideration, net of the tax effect of these adjustments, divided by adjusted fully diluted shares. Perficient currently expects its Q1 2021 and full year 2021 GAAP effective income tax rate to be approximately 21% and 25%, respectively. The Company’s estimates of GAAP and adjusted fully diluted shares for 2021 are included in the following table . These estimates could be affected by share repurchases, shares issued in conjunction with future acquisitions and the potential impact from the conditional conversion features of our debt. (2) Non-GAAP adjustment represents the exclusion of shares that are issuable upon conversion of our convertible notes due to the expectation that such shares will be offset by the convertible note hedge transactions entered into in August 2020 and September 2018. Note further discussion and reconciliation of Perficient, Inc. non-GAAP financial measures can be found in our earnings press release and Form 8-K furnished February 25, 2021. (in millions) Q1 2021 Full Year 2021 GAAP fully diluted shares 33.0 33.3 Non-GAAP adjustment (2): Dilution offset from convertible note hedge transactions (0.5) (0.9) Adjusted fully diluted shares 32.5 32.4

4 Operating Metrics (in thousands, except per share data) THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, 2020 2019 % Change 2020 2019 % Change Revenues $ 162,554 $ 145,159 12 % $ 612,133 $ 565,527 8 % Services Revenues (excluding reimbursable expenses) $ 158,917 $ 140,475 13 % $ 599,473 $ 546,444 10 % Cost of Services (excluding reimbursable expenses)* $ 96,974 $ 86,109 13 % $ 370,613 $ 338,739 9 % Services Revenues Net of Cost $ 61,943 $ 54,366 14 % $ 228,860 $ 207,705 10 % % of Services Revenues 39.0 % 38.7 % 38.2 % 38.0 % Adjusted EBITDA** $ 34,990 $ 26,494 32 % $ 116,273 $ 95,022 22 % % of Services Revenues 22.0 % 18.9 % 19.4 % 17.4 % Adjusted Net Income** $ 24,808 $ 18,636 33 % $ 81,221 $ 66,809 22 % % of Services Revenues 15.6 % 13.3 % 13.5 % 12.2 % GAAP EPS $ 0.26 $ 0.36 (28) % $ 0.93 $ 1.15 (19) % Amortization 0.22 0.12 0.70 0.50 Stock Compensation 0.15 0.15 0.60 0.56 Acquisition Costs/Earnout Adjustments 0.18 0.03 0.41 0.04 Amortization of Debt Issuance Costs and Discounts 0.08 0.04 0.21 0.14 Loss on Extinguishment of Debt 0.01 – 0.14 – Foreign Exchange Loss/(Gain) 0.01 – 0.01 – Tax Effect of Above Reconciling Items (0.15) (0.12) (0.50) (0.32) Adjusted EPS** $ 0.76 $ 0.58 31 % $ 2.50 $ 2.07 21 % * Cost of Services excludes depreciation and amortization. **Note further discussion and reconciliation of Perficient, Inc. non-GAAP financial measures can be found in our earnings press release and Form 8-K furnished February 25, 2021.

5 Operating Metrics (in thousands) Q4 2020 Q3 2020 % Change Q4 2020 Q4 2019 % Change Services Revenue (excluding reimbursable expenses) $ 158,917 $ 155,242 2 % $ 158,917 $ 140,475 13 % Software and Hardware Revenue $ 964 $ 923 NM* $ 964 $ 1,401 NM* Time & Materials ABR Q4 2020 Q4 2019 North American Employees $150 $149 Utilization Q4 2020 Q4 2019 North American Employees (Organic) 80% 78% Headcount Q4 2020 Q4 2019 Average Ending Average Ending North American Billable Employees 2,096 2,099 2,064 2,066 Subcontractors 270 256 251 234 Offshore Billable Employees 1,500 1,529 813 838 Total Billable Headcount 3,866 3,884 3,128 3,138 SG&A Headcount 642 649 549 550 Total Headcount 4,508 4,533 3,677 3,688 * "NM" means not meaningful.

6 Industry Data Revenue by Industry (Top 10) Q4 2020 Q3 2020 Q4 2019 Healthcare/Pharma/Life Sciences 33% 35% 32% Financial Services/Banking/Insurance 16% 14% 16% Manufacturing 11% 10% 10% Automotive and Transport Products 9% 8% 9% Retail and Consumer Goods 8% 8% 8% Business Services 6% 4% 4% Electronics and Computer Hardware 5% 6% 6% Leisure, Media and Entertainment 5% 5% 4% Energy and Utilities 4% 4% 3% Telecommunications 2% 2% 5%

XML

Document and Entity Information	Feb. 25, 2021
Cover [Abstract]
Document Type	8-K
Document Period End Date	Feb. 25, 2021
Entity Registrant Name	PERFICIENT, INC
Entity Central Index Key	0001085869
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity File Number	001-15169
Entity Tax Identification Number	74-2853258
Entity Address, Address Line One	555 Maryville University Drive
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Saint Louis
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	63141
City Area Code	314)
Local Phone Number	529-3600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	PRFT
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false