Perficient Inc. (NASDAQ:PRFT) Q4 2019 Earnings Conference Call - Final Transcript

Feb 25, 2020 • 11:00 am ET

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Perficient Inc. (NASDAQ:PRFT) Q4 2019 Earnings Conference Call - Final Transcript

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Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q4 Full-Year 2019 Perficient Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Jeff Davis, Chairman and CEO. Please go ahead, sir.

Executive
Jeffrey Davis

Thank you very much. With me on the call this morning are Paul Martin, our CFO; and Tom Hogan, our COO. I want to thank you for your time and we look forward to our call. Obviously, we have about 10, 15 minutes of prepared comments, after which, we'll open up the call for questions.

Before we proceed, Paul, would you read the safe-harbor statement, please?

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 discussed in these forward-looking statements, and 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 discussions.

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

Executive
Jeffrey Davis

Thanks, Paul. Once again, thanks for joining. We're pleased to be with you this morning to discuss our fourth quarter and full-year 2019 results as well as provide an initial outlook on 2020. In many ways, 2019, which represented the 20th anniversary of our listing as a public company, was a milestone year for Perficient. A broad expansion of several major client relationships and our success gaining large new customers drove double-digit revenue growth and strong margin expansion that resulted in earnings that exceeded the high-end of our original expectations by 17%.

Our strategic focus on the continued rapid build on the leveraging of our global delivery teams contributed to our performance. As you're likely aware, we more than tripled our space in India during the year, and are hiring great talent aggressively there to meet that demand. In fact, our offshore revenue grew materially in every quarter during the year on both an annual and sequential basis. During the year, our offshore revenue increased more than 20%, and in the fourth quarter, was up greater than 30%. That's a pace matching or exceeding most of our more offshore-oriented competitors.

Tom will talk a little bit later about our success during the quarter. We're winning large deals, but I'll share now that December represented our largest bookings month ever. And then in January, we exceeded the December number. So obviously, we're off to a great start in terms of