Publicly traded technology consulting firm Perficient increased its revenue and net income 18% and 32% respectively, in the third quarter.

Perficient is a a technology services specialist headquartered in St. Louis. The firm works with major corporations to design e-commerce websites, move applications to the cloud and carry out other IT modernization initiatives.

Perficient, similarly to the Big Four and other major consultancies, is also active outside its core focus area. Alongside its flagship IT offerings, the firm sells less technical strategy services focused on assisting corporate clients with tasks such as making their supply chains more efficient.

Perficient’s revenue rose 18% to $227.6 million in the third quarter from $192.8 million in the year-ago period. Net income was up 32%, increasing from $17.4 million to $23 million.

The firm’s adjusted earnings, meanwhile, reached $1.11 per share, which comes in at the top end of the forecast it had provided to investors this past August.

The key detail in Perficient’s third quarter earnings report is the 32% year-over-year net income increase it posted. 

The net income increase is not solely the result of the 18% revenue growth the firm produced during the third quarter. Proficient also improved its gross margins in the background, to a large extent by reducing selling, general and administrative expenses as a percentage of revenue.

“Expanding margins drove strong profitability during the third quarter,” Proficient chairman and CEO Jeffrey Davis said in prepared remarks. Davis also pointed out another achievement that the firm logged during the third quarter: it bought two IT consultancies with a combined workforce of more than 600 employees to grow its industry presence.

Proficient expects its business growth to continue in the fourth quarter. The firm told investors that it expects to generate up between $233 million to $239 million in revenue, which on the high end of the range constitutes a more than $10 million improvement over its third quarter sales. 

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