Perficient (PRFT) investor relations material

Executive summary

• Q2 2024 revenue declined to $222.8 million, down 3.6–4% year-over-year, with net income falling to $17.4 million, a 34% decrease.

• Diluted EPS for Q2 2024 was $0.49, down 33% from Q2 2023; adjusted EPS was $0.92, down 8%.

• The company entered a merger agreement with EQT Asia, with shareholders to receive $76.00 per share in cash; closing expected by end of 2024.

• Adjusted EBITDA dropped 10% to $43.3 million compared to Q2 2023.

• Macroeconomic uncertainty and project delays impacted revenues, partially offset by acquisitions.

Financial highlights

• Services revenue declined to $219.5–$222.5 million in Q2 2024; software and hardware revenue was $0.3 million.

• Net income for Q2 2024 was $17.4 million, down from $26.4 million in Q2 2023.

• Adjusted net income for Q2 2024 was $31.9 million, down from $34.4 million in Q2 2023.

• Adjusted EBITDA for Q2 2024 was $43.3 million, down from $48.2 million in Q2 2023.

• Cash and equivalents at June 30, 2024, were $112.9 million, down from $128.9 million at year-end.

Outlook and guidance

• Merger with EQT Asia expected to close by year-end 2024, subject to regulatory approvals.

• Company expects significant transaction costs related to the merger; a termination fee of $81.3 million may be payable under certain conditions.

• No guidance or earnings call will be provided due to the pending acquisition.

• Management expects accounts receivable changes to normalize by end of Q3 after ERP system implementation.