Perficient Inc. (NASDAQ:PRFT) Q4 2015 Earnings Conference Call - Final Transcript

Mar 03, 2016 • 10:00 am ET

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Perficient Inc. (NASDAQ:PRFT) Q4 2015 Earnings Conference Call - Final Transcript

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Operator
Operator

Good day, ladies and gentlemen, and welcome to the Fourth Quarter 2015 Perficient Earnings Conference Call. My name is Cowanda and I will be your coordinator for today. [Operator Instruction].

I would now like to turn the conference over to President and CEO, Jeff Davis. Please proceed sir.

Executive
Jeff Davis

Thank you, and good morning. With me on the call as usual is Paul Martin, our CFO, I'd like to thank you for your time this morning. As typical, we've got about 10 to 15 minutes of prepared comments after which we'll open up the call for questions.

Before we proceed, Paul, would you please read the Safe Harbor statement?

Executive
Paul Martin

Thanks, Jeff, and good morning, everyone. Some of the things we will discuss in today's call concerning future company performance will be forward looking statements within the meanings of the securities laws. Actual results may materially differ from those discussing these forward-looking statements. We encourage you to refer to the additional information contained in our SEC filings concerning factors that could cause those results to be different than contemplated in today's discussion.

At times during this call, we will refer to adjusted EPS, our earnings press release, including a reconciliation of certain non-GAAP financial measures for the most directly comparable financial measures prepared in accordance with generally accepted accounting principles. Our GAAP is posted on our website at www.perficient.com. We have also posted a slide deck which includes a reconciliation of certain non-GAAP rules to the most directly comparable financial measures compared in accordance with GAAP on our website under Investor Relations. Jeff?

Executive
Jeff Davis

Thanks, Paul. And once again, thanks everyone for joining. We're pleased to discuss our fourth quarter and full year results with you today. 2015 was a tale of two halves. As you're all aware, project delays hampered our first half performance but we anticipate and realize a strong rebound in the second half. And during the fourth quarter, the momentum that began building in the third quarter really accelerated and this carried us into 2016, helping us get off our struggle start to a year in many years.

Cloud, SaaS, digital transformation, business optimization and customer experience initiatives are driving our success, and we're uniquely positioned to capitalize on those trends for years to come. Despite the seasonality associated with the fourth quarter, services revenue actually grew sequentially, and that was on top of sequential growth of 9% in the third quarter. We continue to focus on leveraging the ABR improvements we've made in recent years across a larger book of business to drive additional organic growth.

Clients continue to respond well to our intelligent sourcing model and approach to global delivery that is differentiated from and more effective than the pure offshore firms. During the fourth quarter, the offshore revenue represented more than 6% of overall revenues. We talked about this last quarter as well. Our acquisition in early 2015 of Zeon was responsible for some of that growth but not all of it. In fact, revenue from our