How did PERF's Q4 earnings compare to forecasts?

Perficient Inc. (PRFT) experienced a decline in both quarterly and annual earnings, despite maintaining stable revenue year-over-year:

1. **Revenue Performance**: Perficient's Q4 revenues decreased by 5% to $221 million, while the full-year revenues slightly increased to $907 million. This slight increase in full-year revenue was not enough to offset the decline in Q4 revenue, which fell short of market expectations.
2. **Earnings Performance**: The company's Q4 net income fell by 12% to $23.2 million, with a full-year net income decrease of 5% to $98.9 million. The Q4 GAAP EPS decreased by 12% to $0.65, and the full-year GAAP EPS decreased by 5% to $2.76. These declines indicate challenges in maintaining profitability despite relatively stable revenue streams.
3. **Market Reaction and Outlook**: Despite the earnings miss, Perficient's stock price experienced a minor decline but then edged slightly higher, suggesting investor confidence in the company's strategic positioning and outlook for 2025. The company anticipates revenue growth of 13% to 14.5% for 2025, with continued investment in AI technologies and expansion of its market presence.

In conclusion, Perficient's Q4 earnings fell short of expectations due to a combination of lower revenue and reduced profitability. However, the company remains optimistic about its growth prospects for the upcoming year, supported by strategic initiatives and market opportunities.