Perficient (PRFT) 4 Aug 192019 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Q2 2019 Perficient Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host, Mr. Jeff Davis, Chairman and CEO. Sir, please go ahead.

you. thank Well everyone. morning, And good Thanks for with us. being me CFO. the today call our Martin, Paul is With on to you want I thank this morning. for your time

it statement. which got of As would you up we've to the Paul, typical, minutes Safe read XX Harbor for about questions. prepared open we'll XX after please the call comments, is

Thanks, Jeff, everyone. morning and good

these may within additional call materially forward-looking cause laws. performance will discussions. company than statements of things the factors SEC future securities to discussed those we Some from the forward-looking and different differ we will encourage today's could you information filings to refer the statements these that our in be concerning in the results to Actual of contained in discuss results in contemplated today's concerning meaning be

this measures we our principles accepted accordance certain www.perficient.com. non-GAAP accounting to adjusted during our website release, a most times the prepared is or financial to at GAAP, refer call, directly reconciliation EPS, including will comparable in financial of posted press on earnings generally At with measures

have principles website deck, accordance a generally non-GAAP accounting of certain prepared on GAAP most which to relation. financial with posted slide the We reconciliation goals in directly accepted includes under comparable a investor our or also measures

Jeff?

the to the proud for We're full period. raise speak once Well more to ways, it's again, results. for able We're Paul. be morning Thanks, be and for themselves. Couldn't of thank joining. numbers earnings you quarter the performance to many getting In this you I year. with pleased discuss team second guidance during our

new of referenced XXXX where and Fortune few taking in Perficient. we're we existing clients, the gaining the we firms, share. work call, quarter the discussed a the On gain the XXX expanding and And making market of terms relationships perception we're Fortune and in first

new We're and critical million key into our and component million million, us, $X is focus growth continue million so ahead. accelerating a on million clients clients, million in plan on the their Earlier breaking $XX winning to year, platform. evaluate into $X with into front largest for clients country focused the And to $X years of Turning and as $XX $XX in of well. the partnering we we're the began system doors performance also non-profit [indiscernible]. this on healthcare net digital down the succeeding

engaged key the processes Our team in management entire shares the winning prior was has differentiator expertise team work Perficient quality facing speed, which subsequently and client's The relative was to portal technologies. enterprise. as to executive as efficiency health Important commended assurance modernize implementing this their and client's content and Perficient's vendor.

example whether So of build health a for opportunity substantial roots illustration the sciences. client, of the another additional we great continue deep a opportunities and to new significant

wealth client, and we're modern digital that a Another a recent creates partnership is we've management experience advisory, leading company, the transforms productivity, with financial technology wealth a platform largest We'll optimizes enterprise richer platform manager. developing for world's their client where earned operations. deal with financial

strategy project, for technical for building the roadmap the the In defining providing consulting growth and to the and the long-term support addition platform. architectural we're

develop We're digital financial about needs client's knowledge One momentum with solution management performance business a the we other We'll additional is gaining example billion to using final the $XX and also [indiscernible] a function. management and work customers be health optimizing corporate where of enterprise in with initiative, but that financial departments our the our team we're comprehensive expertise consolidation, insurer, modernize lines won multiline deep engaged and in opportunities. transformation for crisis. and reporting performance will work talking with of and this streamline the

and as and a the delivered the great is strategic the years, we've model, depth to of gain and CMO business there we're a business of profitability these and often seeing is -- gains. together And to and accounts or the we coming have the of the obviously, from discussion deliver and line credibility more example, of the with so. The investments, now with growth we the for made even penetrate CIO organization. other illustration, parts in the or the an skills of and of result breadth in our of an work That's strength the solid lines top pronounced CFO recent right leaders engage angles variety

and With the for great items call around that, Paul over to and a back year. I outlook few the touch turn these on news to share quarter performance for third before I the want the guidance our key additional to indicators, updated

Paul?

revenue Jim. increase quarter over $XXX.X the a of million Services XX% the period. prior-year second XXXX, Thanks, comparable were for

XXXX $XX.X margin months of XXXX, excluding the percentage the to in XX, SG&A comparable the reimbursement and percentage excluding $XX.X expense, quarter from excluding basis from stock prior-year three comp prior expenses decreased gross XXXX. a of SG&A period. million to as revenue, ended Services of increased comp, in XX.X% stock in to to quarter period. second stock compensation, for the June million increased points the XX.X% second compared XX.X% XXX expense,

revenues second EBITDAS XX.X% of XXXX. to in the or $XX.X of million was million for revenues, XX.X% the quarter or XXXX second of $XX.X compared of quarter

quarter Net amortization $X.X the prior-year from million period. expense included million interest The for increased XXXX million of to an $X in the to compared second of expense comparable $X.X second to $X.X convertible issuance company's debt amortization cost primarily XXXX. million to were due of related the period, discount issued in the in of September notes and that senior prior-year non-cash quarter comparable

XXXX to the for effective quarter the XXXX. of compared second XX%, was Our of for XX.X% second tax quarter rate

of second quarter second XXXX. second XX% the $X.X $X.XX Adjusted Diluted XXXX. share to increased for million increased $X.XX in earnings comparable the share of per the $X.XX in the earnings from period. increased of to to XXXX quarter in GAAP quarter per share prior-year million for from a for income second XXXX Net $X.XX $X.X quarter from the

see You to full the a reconciliation for release can earnings. press GAAP

months percentage for to ended the results. I'll excluding months million period. for increase comp now ended expense turn were margin gross over $XXX.X prior-year X XXXX, the basis comparable points XX, and revenues X X Services reimbursement months the Services June from XX.X%. XXX June XX, increased stock XX% a XXXX, the the

SG&A months expense expense XXXX, comp stock increased XX.X% X the this was revenue, ended June XXXX, June compensation, excluding $X million, $X.X first prior-year in the excluding SG&A $XX.X XX, XXXX, XX.X%. ended X for comparable million from to a $XX.X for XX, of XX, comparable percentage stock June of revenues included June compared X revenues expense. for period. months million XX.X% months million X The in million XX, XX.X% from increased to amortization to or the the of prior-year ended ended $XX.X EBITDA million $XX.X or compared in to months XXXX, period. as

non-cash Net period, X the the to primarily in note expense September due debt million issuance comparable convertible June amortization interest the discount ended XX, months XXXX XXXX, for $X.X to and cost offer. prior-year from of to increased million and senior $X.X related

Our the million. XX, for ended XX.X% in XXXX, June the months for X XX% ended XXXX, XX.X%, income months $XX.X rate effective XX, million June from XXXX. to increased X $XX.X tax was Net compared to

months in in the the X from earnings from earnings share increased Adjusted per June to $X.XX XX, year. $X.XX the per $X.XX share months ended prior ended XXXX a share GAAP XX, prior increased June the year. $X.XX Diluted for to X XXXX, for

X,XXX was XXXX, at consultants the billable Our at and XXXX, June June earning XXX XX, SG&A billable X,XXX subcontractors, headcount was including headcount and XX, XXX.

to Our discount compared XXXX, million $XXX.X net and as was XX, year-end. $XXX.X of million outstanding of June unamortized debt debt costs deferred issuance at

and also balance and our leave have million XX, to us sheet plans. execute cash cash June on to continues We $XX.X as of very our well-positioned strategic in equivalents

XX sales Finally, the the to of quarter end XX days day the quarter XXXX. accounts days end second compared receivable the our outstanding of second at on of were at

to I'll the Jeff? turn Jeff. over call now back

bookings the the second we $XXX,XXX year Thanks, large And the very was healthy another perspective. a period north Paul. the quarter. deals, Well XX strong deal in of for from of was bookings, quarter first booked half

of manufacturing sciences, to retail goods, the revenue. quarter health and During the automotive combined services, represent financial verticals XX% consumer

services were XX%, stronger XX% the retail for quarter. at automotive growth at manufacturing XX%, was XX%, goods consumer at particularly Normalized financial bookings in financial manufacturing Healthcare and at X%. and at services

future [indiscernible]. promised. in been the but We're result There's acquisition add client strong existing industry to and excited of collaboration Interactive Sundog great the be verticals expertise as also account the team. second of we've will accounts, manufacturing very come already channel and continued our capabilities manufacturing progress expertise with from Our existing the Salesforce into roster opportunity ties introduced quarter their and with success that the

with year colleagues their today I've strong the I digit A global growth. from believe X,XXX flow is business. by for into well be nearly been never as half with resulting Perficient in as have we're margin the year. held team, growth, we been clients, And make that now influence and more we The incredible work our on true and Double optimistic a impacts wield the it strong value strong. revenue customers cash in going decades we've certainly the firmly and to forward. first best delivered expansion believe Coming two positioned operations, that ever generally greater. of continued colleague team, very and the meaningful shareholders than been from deliver for we're our behalf XXXX, could our the

million our move in up to now from will to values billion guide than same powered And $X revenues the and more $XXX that us start beyond. have

in to pleased and With to quarter guidance be million. expects million full updated it's for $XXX the XXXX quarter that, the outlook share third of range $XXX third I'm Proficient to our revenues year.

range GAAP adjusted $X.XX to expected Third $X.XX. of the million per per is in quarter share earnings quarter be in And $X.XX to earnings range to to the expected share is of be $X.XX. third

$XXX to XXXX to $XXX $X.XX to million $X.XX raising $X.XX, per Perficient it's range range raising $X.XX $X.XX. million provided previously $X.XX to from GAAP XXXX to full XXXX share guidance its $XXX its guidance from to to adjusted revenue is from range $X.XX to earnings range per $XXX to million year of earnings a share guidance narrowing $X.XX and adjusting the and million,

can call open for questions. Operator? With we up that, the

question comes first Our from Jefferies. Surinder Instructions] line of the of Thind [Operator

question to line. over I'd start with $XXX,XXX. missed on deal number? the wins a you that were new like reiterate the top just, But press that I can

north XX; $XXX,XXX. of

that to is quarter. broad-based growth, that mean, platform, given that's it, solution bit good of hard So the when when a look I I that at seeing? the type industry of little provided. look I our this by out, data the you're revenues double-digits it's tease hit best How at organic granularity

be would helpful. there color any So

is pretty number growth great a financial rest of by area that's tide lifting the as coming guess, kind is that a sciences. not to Yes, it's seeing broad-based, actually. the along sort of s then, health strong. us. sector those to pretty though for say are services indicated there's but for our years also decline, be And continues I to a all now those, The now Led -- of healthcare leaders. mind in We're

in earnings on -- there guys. forward strength, Understood. of Is thinking management true calls. commentary that's from more cautious services, to you're were on provide services, And then recent it like doesn't it you seeing this you're lot for bit a Any about a seems of a of like terms in you've maybe obviously, that commentaries to can if maybe strength obviously, we point, but little in turn seen color seem financial you how maybe at that -- other go teams, basis? financial in terms

effectively might reason than focused we've months, Well, number opportunities. in We've management XX to the XX recently, a drive And last to on the past consulting I digital probably this. a years more think leverage services able practice, now. been for of financial in be more that great to the had transformation

we're example what and mentioned made So call, platform services the opportunities where I building using digital the growth process a actually do stuff loan underwriting, we're a for lot seeing growth substantial manager. AI, X other also. a transformation technology business really seeing turnaround Actually although lot a workflows, interesting improving wealth approval in during financial to quite pretty new times, large continues terms is space. things amazing in wealth really We've management of standpoint. so consulting the the of management well the from that's of

of terms quarters? remind Understood. maybe of How the is percentage revenue good think quick that into future your that streams? that follow-up you what terms just revenue terms how visibility the the in changes of when about can one have And booked, you we guidance in level in of visibility QX is and subsequent in -- maybe us then that of

to sideline then already the XX% question. probably say about good we've I today. our of relationships. month I a you would And beyond probably into revenue it's so got would we're a as benefit. it, we repeat for QX say Obviously, but solid that's QX, XX% we're here rest as the or Yes, of sideline, repeat say a sit let's is of business year, lot that, XX%, a know,

So business, with drops again, what working a by we any and good our say actually not project-based have clients would I in be. XXX% is maybe QX. means, pretty going XX% so and for their for remainder the visibility spend a But QX it's but it's to or so XX% then to of off and

Needham question Tandon next Mayank from comes the & Company. of Our line of

anything is noticed time the that's kind kind sustainable or top the pricing want if Mayank. Peterson lever ABR Kyle tick and that routine of there this there actually one just increases? of of Just quarter. up the to a is This on for to Is wanted nice start-off, line. kind is to I see we

of I in is. move line It's It's again a that not be think up. project-based it's things it going around straight to a business one those going to

of been or to put in desire X% our some more here, those a and goal We've is you're I'm we've results talking this some think year. those I our And you're -- now checks not of is of that. place, direct efforts. on a to here And I what line a up pricing per straight of that going X% suggesting necessarily from be seeing result result mechanisms process. new it about seeing it's a However, efforts. think while direct to for but a balances moved Again,

Great, growth couple services we potential has to When The like term, cadence longer color. win of how has then it think just think touch about good. bit. quarters. we the revenue looks growth in last that's of trending the And the good wanted organic a organically little up services been should Obviously been deal kind here the business?

question. straight a a for to our Paul used tell XX% I'm probably line And there. numbers has great it's I've while And you I'm plus. Yes, -- now. us not get while get to but some here the on goal of going a again, always taken a And been back it's to going that either,

beyond drawing serve I think we at and there's the that terms our market that. in of can't XX% reason no least we portfolio organically and be really

without sales can done a right line So in seeing half that's is about I now probably that. of our think goal, I expect do work there there, relatively model, we all the well. again, our no into guarantees get think on but and I sales lot a the details important team mind I a we that we've straight and there, in Keep also, tenure. I've But spoken about getting that factor benefits some from short think most has we're our the

those as as who productive have yet a aren't here So while. been

our in would the it describe rank So just there's I dry powder, lot sales for a way still.

that level I probably right beyond. to a that straight we're and think that's good in So going about line, Again, help the us I going get direction. but feel not and

And out. I'll Great, helpful. then from last that's hop then one me

a Just your want to outlook year. little bit pipeline update the M&A of get and for on

guys You what's guys the you like? potentially acquisition just earlier, in see what of and works, to have for the the looking Sundog of are kind wanted but

in has offshore, America now is while well some nearshore been interested for a Latin and primarily Yes. as Maybe another primarily. that something for outlet. offshore that We're America, services Central domestic

up rate pipeline early robust. million very try always is So our pretty stages. in we selective, we've of simply And -- short few works because don't but we run tend We to be get some that take come not we're things is M&A still to of -- going goal the about to we've a the need in to $XX the fairly choosy. in got times itself on to. pretty risks there, when done, And we're big

get another right it good. is But right optimistic I'm stands this maybe the of done say now. -- where as two that's pipeline I'd we'll So year. deal

of Our next Alliance Brian the question comes from line Global. from Kinstlinger

and time if those In you all of want mind. to said model, touch basically years, XXXX years. more don't you by XXX both my one pricing on I 'XX

growth guess of right more acquisitions in you maybe this I'm which see so bringing past, your them make you'd are in both technology touch most rates, driving with higher and I of I'm bit understand So rates. -- at a customers increase higher it's factors that little it's -- now. increase trying some was sometimes you all to rates? trying renewed you're to or understand hitting to the nice Can in was rates volume driven, acquire sometimes these on on just of

a -- it's have We X% little acquisitions average. higher rates And a nearly occasionally they're increase of lower. do would kind question. this Oftentimes neutral. of great recent tell primarily find I is Usually, our but you they're that Yes, organic. bit than most year

said a it try in I XX% or is of like not earlier straight So again, that up. put place direct were efforts a I that drive that likely say And result of to to the these organic. would is but that's line

I a X.X%, number think it's organic, like the is to want I see X.X%. like

play more now is years? it to attention out you that. is more played years here? And -- like of is of little as on after it bit say you fair price track were a of it's than a function of focused a in didn't on tried curious price how more is So, little two in couple it years just getting out the bit maybe a that that's more you're last just it you I'm volume were? the to really passed, Or just or it

up We've on mean on that is, focused been I striking of and volume we've we working price. that right right balance. It that's backed off exactly

you don't push and far, to count. just that. effort obviously, doing because We again get to this So the volume want we want too towards is

So to to -- the but an effort balance try it's two.

FinTech financial always has healthcare and Now, I been and a services -- strong saw while -- vertical.

One a that's big of on the verticals made is smaller automotive. saw I move numbers

something was some what's driven of there there of or Sundog curious that the is interesting growth. part So I'm acquisition? happening that

particularly No, couple In -- for relationship Direct, last dealer which over nice there. a months and XX Ford the relationship with Ford Proper that's over years last of is with We've got Ford venture long-term and between particular well. primarily [ph]. of also we've we've anchor Ford -- a about as the built organic talked We've a a so joint got accounts network. or so the

we're some some forward. growth coming we're online auto that's where want I So growth. to expertise of where actually manufacturers the or as five we is retailers, seeing expand is as because that of of the aftermarket that companies and lot fun that working but well also from But other on building -- industry. some able say, with four it's that we're a the really to And in reason have

So are there are our industry we're and -- competing good qualification right of the so well now. very

more. Two

The first more questions. one -- two

is, and change now? have that how revenue right your filings. revenue announced But some curious way any or training one employees on Does only impact hiring does first of it I'm Pivotal It's your disappointing X% recently [indiscernible]. your your on your in The plans any

great question. Yes, that's a

think them. I that's for short-lived

cycles sales are than I they think the longer projected.

deployment. licensed are able of of so the -- a busy have very other Pivotal lot around effectively been is that a relationships though and are on we to accordable have we've to reality adapt disappointing platforms. on The And number accounts little to Pivotal. Pivotal's that. folks growing Even that and Pivotal they're a yes, still we trained However,

adapted the terms hiring a like much it's not opportunity we But and -- for have to that that as fully in it thought as I originally the not all yet. was of and said, we it's So folks as deployed. training maybe us we've quick of growth

any there business? do what delivery. taxes last and to is can -- Great, your is, got able you if And impact from you you then India? you China it? U.S. question I China ship Supposing to China to speak I have. imports, Is impact the some remember are delivery there on

us will really. our impacting any customers be specifically our more not really it's The impact business. for how offshore impact There's for

So on time. we've little in -- than China. have got group been Indian focusing contracted of not some bit, good stable -- more And a tariff geopolitical. we've it's But focused growth a reasons for on variety economics related. in by really we for a It's It's design.

next from line comes Our [indiscernible]. of question the

guidance, think right? high the the the and the I about business. if I for quarter, I being And trends So about QX, think midpoint in XX% quarter Given the would I is just growth. QX implies fourth think in also the was imagine it slowdown single-digit. the about conservative, dramatic fourth

Yes. Keep fourth in is traditionally mind that quarter down. seasonally

in that conservative want but We haven't we're out scenario years, we're trying be to couple cautious, make a of being sure had to there.

sounds mean sounds you I that number, beatable. -- the exact follow-up it, you the Got if happen have quick the it But Sorry missed organic on growth. is to make sense. definitely do Do I number? organic a it. have growth

QX? sorry, -- For

For QX, correct.

it round XX.X. XX? Yes, XX.X. Well was up What over XX,

Our comes line Barrington Colicchio the next Vincent from Research. question from of

few a you're just mentioned is you XX%. curious, now just for target growth organic minutes ago Jeff, that

last quarter you think longer this is Has to way? to said would feel Any make helpful. your X% something you be color I XX%. term change fundamentally target

we walk. being I got Yes, to we not can hit I'm crawl saying XX%. No, guess that's [indiscernible]. me little we really. before actually a

a So response line can think is to get perhaps to I Surinder's -- straight XX% sustain what was XX. it's that. to not the earlier what going XX% in I to I question and through be move receivable think and But we said

think of dovetailed. the I So two kind

steel the about quarters the And talked the of from. a as few some way? had acquiring feeling of thought you've partners partners then and Adobe Are consolidation you such your you you same you of some other -- benefit ago, you

The is our it, that the a of relationship that. influence of relationship for Adobe if result could a more partner, result consolidating you it's And is. even better absolutely. revenue a Yes, them

IBM Red a a that. then and on player had be close, is there it think we're lot We're I been of going that putting muscle about never as Hat, better. And feels excited well. expect to now I pretty IBM actually

to our those pull nothing think are I with these So consolidations because again just it influence partners. help includes

understanding offshore your of when of And there. may some or seeing we for higher a that you. in increase model margin opportunity sense getting that is comfortable with That's the more see my business your clients more Any mix? you're are

see now. it Yes. should We

a we quarter. nice had last think I

done it's So on just offshore the to watered still Particularly bit. no to because X it's faster in down onshore. is continue ago on. years being we which you recently And a And basis probably that a little I work substantial think there, offshore offshore essentially sector. I of now. a Kaiser in volume grow doing what of touched I think think than of to so going opportunity exactly were begin one the healthcare largest sector, largest often our we offshore about we amount And have the here. opportunity that in accelerate customers we our on work significant doing in we'll the pretty talked to about offshore the won customer, being volumes

think I continue. that will yes, So

a have Surinder question from do we And Jefferies. follow-up from

about that earlier out operations stable guys in acquisitions of kind the hire and just the guys offshore ratio obviously, that headcount. do, remain dilute sense to on Actually seems following but the onshore acquisitions so do up change. ration the that question offshore doesn't you all that you With

in the and margins quarter fairly If how two year-over-year in change been we So have the saw help margins here, gross I improved look you quarter-over-quarter. can both that there have to years ratio the appears last sense in me about over the same. understand significant gross When

Yes.

a where I operate question, you the we hit think your follow small acquisitions nail been do I of if the most few has So offshore, there head the on components.

India, good if note then that, the space By And pretty with just out there, you in XX the comes margins. in so again, you look didn't margin offshore corporately. XX% new mean, what year-over-year growth for number Substantial facility but are difference building of probably that the still obviously, think is way, just offshore. quarters, huge on last that that's expansion, last or And a facility. we it continues can onshore, XX% hours you offshore, Particularly diluted or a So past own. for clip ahead But to XX%. you -- north about that we're offshore touched sort in growth it's that's our if have onshore. offshore gross quarter I not occupying in be growing see the of of on acquisitions over be the example, months, India. at us a XX% of Still a the building in running to of running we'll grow increase lease, gross process a

capability. So that's offshore

one going see and in The good that adding is of over pretty accounts next to India anchor a four I thing we've quarters. headcount the good done resolve job additional really we're to surrender so some growth we could two

is that, undergoing arguably question in then maybe large in given enough. And some the of headcount accelerate Fair a related structural changes? there the competitor to terms relates perhaps growth India. Is an that to opportunity

I in the skills having that independent I that be probably I interested that. To is as outdated. is. of know you're the there talking their don't because think fully know, challenges candid, not is there Yes, think I it about, of frankly, company's employees one are think we're I

hiring to that offshore are interested we're of beginning probably frankly head the intend opportunistically, dive head the of more now. we're question, we offshore to digital more your have they're having competitors. planning growth the That and So skills, see said, and in offshore in less other conservative to we off than from right effort now digital absolutely offering To We that some go where with to going a we I'm to detail more got into kicking not players. new a right past. continue bring

and up to we to -- ramp just infrastructure. and infrastructure mentioned that I made Jeff, the We're prepared want to investments add also both then And happen. have I people growth make in there

We -- actually [indiscernible] have great success in that's with initiated. we never have been the really good India,

question. final one then And

do but use this given Just a do think you targets, debt the Obviously, run paydown had the has excess cash how here. got stock really that about when beyond share we M&A think about good point? on off? repurchases, capital we've that trade at versus strategically And about how you think

Sure.

of convert conversely we million about no think $XX to So have debt besides other cash. and

we'll continue generate to So and cash.

combination M&A our and looked, both use increase place that share we'll to shares share shares obviously, to of in have of and we're repurchase, the the made on continue repurchase of to repurchases. we the keep try restrictions strategy, we sellers do So that and deciding issuances to still or we're and opportunistic on those share based as to some what But that. issue on those part of with offset M&A we the tend decrease

way. it maybe Will enough build? another put to you let be Fair cash or willing

want to Is that We cash let question? the build?

Yes.

Yes.

So mean absolutely. yes, -- I

it acquisitions upon depending $XX as mentioned, of we right candidates. which think to but I Jeff we the a be of lumpy have find goal timing got could the -- million

So quarter-to-quarter you on front. going see grow the is on definitely action on M&A depending can what cash

the next from line Allen with of Our question comes Group. Klee Maxim

your percent me Can would digital what tell you is estimate you revenue related transformation? of to

XX% I approaching today, right think maybe XX% safely it's now.

Our from comes next Michael Associates question the from [ph]. Martin Michael of line

environment? corporate find a like? flavor about And And what you what's culture just challenging on also changing the been people how I your can it new us is wonder there and to Congratulations. all? little current give in at is if turnover

need rewards for clients over like in good, and describe wouldn't throughout that's describe bunch collegial giving do would Yes. say results (inaudible). they company. to to the And And way years. the changed then giving is people and every challenge up who much helping I other believe That's that. when is And are Very smart really tools I we we the of to each as for our a great rest company work like think people the believe how that's a good true the the us. I them. We I succeed to can. great question. them

now. of it's be assembled only think And very a I we team in think executive again, with maybe three improved. period, here solid arrived years just the leadership long been place I And team happier a recent or it's very, just a we at But couldn't right it's a same but them. an sort the where stellar it's journey, from standpoint. two

with very that. we're So pleased

great with about right had just success general recruiting, in attrition now. a Perficient of there's buzz terms we've recruiting, nice In out and there

interested are coming in people here. think I

had out directly than We have past. in people to us recent reaching more we

attrition, we've recruiting, months good of is success under XX%. And had XX trailing

XX%. goal as honest, is could and unhealthy To below XX% I between think be well. Our get actually XX%

to year, that managed time keep was range. in and fact like to want we XX% keep for we in last it that. some under So And think, XX%, something it even I

that is now right pretty front So on solid. everything

And to conference would questions back the no I turn Davis, this Chairman time. like over CEO. I'm showing and at Mr. to further

to listening in your Again, All I XX thank the appreciate to well, or for to it. all we right. you forward speaking today replay, you And another for look time days.

today's concludes call. this And conference

may You now disconnect.