Executive Summary

Q2 2024 revenue was $222.8M, down 4% year over year, with GAAP diluted EPS of $0.49 and adjusted EPS of $0.92; adjusted EBITDA was $43.3M (-10% YoY). Sequentially, revenue and profitability improved vs Q1 2024, but remain below prior-year levels .
Management did not host an earnings call and provided no guidance due to the pending acquisition by EQT; FY24 guidance was previously withdrawn in Q1 .
CEO emphasized strategic positioning and global growth momentum; notable operational highlights included the launch of “Scarlett,” an AI-powered virtual assistant for the workforce .
Wall Street consensus estimates via S&P Global were unavailable through our system for Q2 2024; therefore, we cannot quantify beats/misses versus consensus. Values would ordinarily be retrieved from S&P Global, but were unavailable.

What Went Well and What Went Wrong

What Went Well

Sequential improvement: Revenue rose to $222.8M in Q2 from $215.3M in Q1; GAAP diluted EPS increased to $0.49 from $0.33; adjusted EPS improved to $0.92 from $0.77; adjusted EBITDA rose to $43.3M from $36.5M .
Strategic/AI momentum: Company launched “Scarlett,” an AI-powered virtual assistant to drive workforce efficiency, and earned new specializations with Adobe and Salesforce, reinforcing data and customer analytics capabilities .
Management tone: CEO stated “We remain well positioned to continue to execute against our long-term strategy and goals… excited to move forward on our global growth journey,” supporting confidence in the trajectory despite near-term headwinds .

What Went Wrong

Year-over-year declines: Revenue (-4%), GAAP diluted EPS (-33%), adjusted EPS (-8%), and adjusted EBITDA (-10%) vs Q2 2023, reflecting softer demand and higher costs including transaction-related items .
Margin compression: Operating income fell to $23.4M, with operating margin at ~10.5% in Q2 2024 vs ~15.5% in Q2 2023 (derived from reported revenue and operating income), underscoring profitability pressures .
Guidance and investor communication: No earnings call or guidance due to pending EQT acquisition, limiting near-term visibility for investors and analysts .

Financial Results

Quarterly summary (oldest → newest)

Metric	Q4 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$220.790	$215.304	$222.817
Net Income ($USD Millions)	$23.175	$11.555	$17.438
GAAP Diluted EPS ($)	$0.65	$0.33	$0.49
Adjusted EPS ($)	$0.99	$0.77	$0.92
Adjusted EBITDA ($USD Millions)	$46.653	$36.462	$43.255
Operating Income ($USD Millions)	$32.418	$15.701	$23.400
Operating Margin (%)	14.7% (32.418/220.790)	7.3% (15.701/215.304)	10.5% (23.400/222.817)
Adjusted EBITDA Margin (%)	21.1% (46.653/220.790)	16.9% (36.462/215.304)	19.4% (43.255/222.817)

Year-over-year comparison (Q2 2023 vs Q2 2024)

Metric	Q2 2023	Q2 2024	YoY Change
Revenue ($USD Millions)	$231.105	$222.817	-3.6% (computed; cites both)
Net Income ($USD Millions)	$26.362	$17.438	-33.9% (computed; cites both)
GAAP Diluted EPS ($)	$0.73	$0.49	-32.9% (computed; cites both)
Adjusted EPS ($)	$1.00	$0.92	-8.0% (computed; cites both)
Adjusted EBITDA ($USD Millions)	$48.155	$43.255	-10.2% (computed; cites both)

Revenue composition (Q2 2024)

Component	Q2 2024 ($USD Millions)
Services (excl. reimbursables)	$219.543
Reimbursable expenses	$2.911
Software and hardware	$0.363
Total Revenue	$222.817

Non-GAAP reconciliation tables and definitions are provided in the filings; adjusted EPS and adjusted EBITDA exclude amortization, stock compensation, acquisition and transaction expenses, FX, and other items as detailed .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2024	$925M–$965M (issued 2/27/24)	Withdrawn (as of 5/6/24) ; no guidance reiterated in Q2	Withdrawn; maintained suspension
GAAP EPS	FY 2024	$2.64–$2.77 (2/27/24)	Withdrawn (as of 5/6/24) ; no guidance reiterated in Q2	Withdrawn; maintained suspension
Adjusted EPS	FY 2024	$4.05–$4.20 (2/27/24)	Withdrawn (as of 5/6/24) ; no guidance reiterated in Q2	Withdrawn; maintained suspension
Conference Call	Q2 2024	N/A	None due to pending EQT transaction	Not held

Earnings Call Themes & Trends

Note: No Q2 2024 earnings call or transcript due to pending EQT acquisition .

Topic	Previous Mentions (Q4 2023, Q1 2024)	Current Period (Q2 2024)	Trend
Bookings/Pipeline	“Solid fourth quarter bookings… positioned for a return to growth, particularly in the second half of 2024” (Q4) ; “pipeline remains robust… momentum will continue to build throughout 2024” (Q1)	No call; press release reiterates strategic positioning	Improving pipeline narrative; limited detail due to no call
AI/Technology Initiatives	Recognized in Forrester’s AI Services Landscape (Q4) ; planned AI Bootcamps (Q1)	Launched “Scarlett,” an AI-powered virtual assistant for workforce productivity	Broadening AI deployment internally and in capabilities
Guidance/Outlook	FY24 guidance provided (Q4)	Guidance withdrawn (Q1)	No guidance; no call (Q2)
Geographic/Capability Expansion	Acquisition of SMEDIX (Romania) and expansion initiatives highlighted (Q4)	Continued partner awards and recognitions (Q1)	New specializations with Adobe, Salesforce; IDC recognition (Q2)
M&A/Corporate Actions	FY24 call held; later announced EQT definitive agreement (Q1)	Transaction pending; impacts investor communications (Q2)	Transaction-centric posture; operating focus maintained

Management Commentary

“We remain well positioned to continue to execute against our long-term strategy and goals… We’re excited to move forward on our global growth journey.” — Tom Hogan, President & CEO (Q2 press release) .
“Our business is steadily improving and our pipeline remains robust… We remain confident that momentum will continue to build throughout 2024.” — Tom Hogan (Q1 press release) .
“Solid fourth quarter bookings have us positioned for a return to growth, particularly in the second half of 2024.” — Tom Hogan (Q4 press release) .

Operational highlights emphasized AI enablement (“Scarlett”), data/customer analytics specializations, and broader commerce/data capabilities across partner ecosystems (Adobe, Salesforce, IDC recognitions) .

Q&A Highlights

No Q2 2024 earnings call or transcript; management did not host a call due to the pending EQT transaction .
As a result, there were no public Q&A clarifications in Q2 2024.

Estimates Context

S&P Global Wall Street consensus data for PRFT Q2 2024 was unavailable in our system; therefore, we cannot provide beat/miss versus consensus for revenue or EPS. Values would ordinarily be retrieved from S&P Global, but were unavailable.
Given guidance withdrawal (Q1) and absence of a Q2 call (Q2), analysts’ near-term visibility is constrained; any revisions would depend on external estimates and subsequent corporate updates .

Key Takeaways for Investors

Sequential improvement but YoY declines: Q2 showed better top-line and profitability vs Q1, yet remains below Q2 2023 on revenue (-4%) and profitability metrics (GAAP EPS -33%, adjusted EBITDA -10%) .
Margin trajectory: Operating margin improved QoQ to ~10.5% but is still below prior-year levels; watch mix, transaction expenses, and cost discipline as key levers .
AI execution: Internal launch of “Scarlett” and new data/analytics specializations point to ongoing capability build that could aid productivity and differentiation in client work .
Communication pause: No Q2 call and no guidance amid pending EQT acquisition reduces near-term visibility; monitor transaction milestones and any subsequent disclosures .
Cash/debt: Cash stood at $112.9M and long-term debt at $398.0M as of June 30, 2024; balance sheet capacity and transaction expenses should be monitored in the interim .
Near-term trading: Expect news flow around the EQT transaction to be the primary stock catalyst; operational data points are positive sequentially but not enough to offset YoY declines.
Medium-term thesis: If bookings/pipeline commentary from prior quarters translates post-transaction, the combination of global scale and AI/data competencies could support a return to growth; proof points will come from revenue reacceleration and margin recovery .

PERFICIENT INC (PRFT)·Q2 2024 Earnings Summary