Slide 1: Analyst Presentation
Analyst Presentation Quarter Ended September 30, 2022 October 19, 2022
Slide 2: Forward-looking and cautionary statements
Forward-looking and cautionary statements Certain statements in this Presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statement
Slide 3: We are Persistent.
We are Persistent. A trusted Digital Engineering and Enterprise Modernization partner. $255.6M $1,022.2M $913.5M ₹2.2B FY23 Q2 Revenue Annualized revenue run rate TTM Revenue FY23 Q2 PAT based on Q2FY23 +40.2% YoY +41.0% YoY +36.0% YoY $368M ₹107.49 $3.3B 22,476 Total Contract Value (TCV) TTM EPS Ma
Slide 4: Strong global presence with 22,000+ team members across key geographies
Strong global presence with 22,000+ team members across key geographies North & Rest of Central America Europe India the world 78.6% 8.3% 11.5% 1.6% Revenue Revenue Revenue Revenue 2,130 383 19,769 194 Employees Employees Employees Employees
Slide 5: Our core strengths in Digital Engineering fuel the next wave of transformation
Our core strengths in Digital Engineering fuel the next wave of transformation for our clients Software, Hi-Tech Banking, Healthcare & & Emerging Financial Services Life Sciences Industries & Insurance Accelerate Time to Market Enable Product & Platform Engineering Business Agility Unlock CX & Desig
Slide 6: We are helping market leaders transform their industries
We are helping market leaders transform their industries 14 of 30 45+ Most Innovative US Companies Global Fortune 500 Companies As rated by Boston Consulting Group 8 of 10 25+ Banking Largest Banks in both Global FinTechs US & India 6 of 10 4 of 10 Top Medical Device Top US Health Systems Companies
Slide 7: We continue to be recognized for our customer excellence and expertise
We continue to be recognized for our customer excellence and expertise Our 2021 awards build on our previous recognition from ISG Persistent was recognized in 2020 as the leader for Customer and Delivery Excellence in BFSI, HCLS, North America and APAC.
Slide 8: Analyst recognition — Gartner
Analyst recognition — Gartner Named as a Niche Player in the 2022 Gartner® Magic Quadrant for Public Cloud IT Transformation Services We have received this recognition from Gartner for second year in a row. MediaAgility was acquired by Persistent in March 2022 b ’ Google Business Unit. As a Google C
Slide 9: We are building on our long-term growth journey
We are building on our long-term growth journey 16.1% 23.5% 914 Revenue CAGR Revenue CAGR from IPO to FY22 between FY20 and FY22 766 566 502 471 481 429 352 309 274 238 207 170 127 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 TTM * In USD Million
Slide 10: Delivering consistent growth in revenue and margins
Delivering consistent growth in revenue and margins Quarterly Revenue ($M), % QoQ and % YoY Growth EBIT and PAT Margin % 300.0 50.0% 44.8% 280.0 42.2% 45.0% 40.2% 260.0 36.2% 40.0% 34.0% 14.3% 14.6% 240.0 255.6 35.0% 13.9% 14.0% 14.0% 13.5% 241.5 13.2% 27.3% 12.7% 220.0 30.0% 217.3 200.0 25.0% 20.3%
Slide 11: On account of broad-based growth across all industry segments
On account of broad-based growth across all industry segments Quarterly Revenue ($M), % YoY Growth Software, Hi-Tech and Banking, Financial Healthcare Emerging Industries* Services & Insurance & Life Sciences 70.0% 90.0 90% 55.0 80.0 57% 85% 74.0% 80% 60.0% 80.0 75% 50.2% 50.0 50% 70% 70.0 43% 70.0
Slide 12: Leading to lower client concentration, broad-based growth
Leading to lower client concentration, broad-bas d g owth… Client Concentration Large Client Count Top 10 clients as % of total revenue >$5M Annual Revenue 30 47.0% 46.3% 46.7% 26 45.4% 45.0% 25 24 22 42.1% 21 40.7% 17 17 36.7% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY21 Q4FY21 Q1
Slide 13: Persistent 1-Year Relative Stock Performance
…a d s g f ca t sha hold valu c at o ’ Persistent 1-Year Relative Stock Performance* v/s NIFTY 50 & NIFTY IT Index -12.8% 1 year return 0.8% 3 year return 477.8% 11.2% -3% -13% -23% 5 year return 383.9% 12.5% Sep-21 Dec-21 Feb-22 May-22 Jul-22 Sep-22 Share Price Return Div Yield% NIFTY NIFTY IT Pers
Slide 14: Performance Highlights
Performance Highlights
Slide 15: Message from Founder, Chairman and Managing Director
As we cross $1 billion in annualized revenue run rate and INR 2,000 crore in quarterly revenue, I want to thank all the employees, clients and partners that contributed to our growth journey along the way. We have achieved this milestone through continued passion and persistence. Dr. Anand Deshpande
Slide 16: Message from Chief Executive Officer
We are proud to announce another quarter of strong performance as we surpassed $1 billion in annualized revenue run rate — delivering 5.8% sequential and 40.2% year-over-year growth. We are also pleased to share that Persistent is included in three indices of the National Stock Exchange in India — t
Slide 17: Financial highlights for Q2 FY23
Financial highlights for Q2 FY23 Revenue ($ million) 5.8% Q-o-Q 40.2% Y-o-Y Revenue (₹ million) 9.1% Q-o-Q 51.6% Y-o-Y 20,486.4 255.56 18,781.1 241.52 182.32 13,512.5 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 EBIT (₹ million) 11.1% Q-o-Q 59.4% Y-o-Y PAT (₹ million) 4.0% Q-o-Q 36.0% Y-o-Y 2,986.6 2,2
Slide 18: TCV and ACV bookings in Q2 FY23
TCV and ACV bookings in Q2 FY23 Trailing Twelve Month TCV* $1,457.1M Trailing Twelve Month TCV (New) $811.3M 394.0 361.0 367.8 230.3 228.3 334.3 195.1 157.6 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Trailing Twelve Month ACV* $1,087.4M Trailing Twelve Month ACV (New) $536.4M 291.3 139.
Slide 19: Notable News and Achievements
Notable News and Achievements
Slide 20: Key wins for the quarter
Key wins for the quarter Software, Hi-Tech & Banking, Financial Services Healthcare Emerging Industries & Insurance & Life Sciences Establishing a professional services Providing industry-specific Salesforce Leveraging industry and platform Center of Excellence for a leading expertise to enhance cus
Slide 21: Recognition for the quarter
Recognition for the quarter Persistent included in 3 indices of the National Stock Identified by Dun & Bradstreet as the Top Performer Exchange of India – Nifty Midcap 50 Index, Nifty IT in the Growth Performance categories in Software Index, Nifty Midcap Liquid Index and BPM sectors Learn More Lear
Slide 22: ESG update
ESG update Call for Code Persistent joined the United Nations Global Persistent hosted and kicked off the 2022 IBM Call Compact as part of our commitment to being for Code Global Challenge in India, as a a responsible organization. W ’ b w w ’ Tech for Good initiative since Learn More 2018. Learn Mo
Slide 23: News highlights for the quarter
News highlights for the quarter Persistent Systems Delivers Persistent Bridging the&Gap Corestack Between Consumption-Based Pricing- ‘B Digital ,Surgery — The Digital-first Banking w‘ Announce&Global Business IT: How Low- The Next Value Driver in IT ’ Future Has Already Arrived Infrastructure ’ Zfor
Slide 24: Financial Details
Financial Details
Slide 25: Sequential Q2 FY23 vs Q1 FY23
Sequential Q2 FY23 vs Q1 FY23 Expenses / Sales % Expenses / Sales % Particulars Q2FY23 Q1FY23 Change QoQ Q2FY23 Q1FY23 Revenue ($ M) Services 235.58 224.60 4.9% IP Led 19.98 16.92 18.1% Revenue ($ M) 255.56 241.52 5.8% ₹/ $ 80.16 77.76 3.1% R v u (₹ M) 20,486.41 18,781.11 9.1% Cost of Revenue ₹ ₹ Em
Slide 26: YoY Comparison Q2 FY23 vs Q2 FY22
YoY Comparison Q2 FY23 vs Q2 FY22 Expenses / Sales % Expenses / Sales % Particulars Q2FY23 Q2FY22 Change YoY Q2FY23 Q2FY22 Revenue ($ M) Services 235.58 159.51 47.7% IP Led 19.98 22.81 -12.4% Revenue ($ M) 255.56 182.32 40.2% ₹/ $ 80.16 74.11 8.2% R v u (₹ M) 20,486.41 13,512.49 51.6% Cost of Revenu
Slide 27: YoY Comparison H1 FY23 vs H1 FY22
YoY Comparison H1 FY23 vs H1 FY22 Expenses / Sales % Expenses / Sales % Particulars H1FY23 H1FY22 Change YoY H1FY23 H1FY22 Revenue ($ M) Services 460.18 304.44 51.2% IP Led 36.90 44.70 -17.4% Revenue ($ M) 497.08 349.14 42.4% ₹/ $ 79.00 73.93 6.9% R v u (₹ M) 39,267.52 25,811.75 52.1% Cost of Revenu
Slide 28: Balance Sheet (₹ M)
Balance Sheet (₹ M) As on As on As on Particulars September 30, 2022 March 31, 2022 September 30, 2021 Assets PPE and Intangible Assets 22,825.84 16,406.93 5,149.15 Non-Current Assets 2,854.65 5,413.30 4,642.75 Cash and Investments 15,718.98 17,472.98 18,704.34 Other Current Assets 20,722.62 14,847.
Slide 29: Fact Sheet
Fact Sheet
Slide 30: Fact Sheet
Fact Sheet Nos. / % Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 FY22 FY21 Revenue from Operations, USD M 255.6 241.5 217.3 199.1 182.3 765.6 566.0 % Q-o-Q growth 5.8% 11.1% 9.1% 9.2% 9.3% % Q-o-Q growth (constant currency) 6.6% 12.0% 9.3% 9.6% 9.5% Revenue % Y-o-Y growth 40.2% 44.8% 42.2% 36.2% 34.0% 35.2% 1
Slide 31: Fact Sheet
Fact Sheet Description / % Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 FY22 FY21 North America 78.6% 78.4% 78.6% 79.2% 78.7% 78.8% 80.8% Europe 8.3% 8.5% 8.4% 8.3% 8.8% 8.7% 9.2% Geography Revenue Mix India 11.5% 11.3% 11.0% 10.9% 10.5% 10.6% 8.4% ROW 1.6% 1.8% 2.0% 1.6% 2.0% 1.9% 1.6% Total 100.0% 100.0% 10
Slide 32: Fact Sheet
Fact Sheet Nos. Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 FY22 FY21 Clients Billed Services 767 735 678 625 596 845 722 IP Led 134 129 125 122 130 237 239 Nos. Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 FY22 FY21 $30M+ 3 3 2 2 2 2 2 Client $20M – $30M 3 1 2 2 2 2 1 Engagement Size $10M – $20M 6 7 6 6 5 6 4 $5M – $
Slide 33: Fact Sheet
Fact Sheet USD / Per Person Month Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 FY22 FY21 Linear Revenue Per Global Delivery Centers 16,181 16,423 16,383 16,043 16,544 16,459 16,851 Billed PM* India 4,498 4,387 4,317 4,252 4,307 4,291 4,250 % Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 FY22 FY21 Attrition Rate TTM Basi
Slide 34: Fact Sheet
Fact Sheet Description / Nos. / % Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 FY22 FY21 Billable Person Months 47,704 45,900 41,025 35,938 33,212 140,982 99,264 Global Delivery Centers 6,438 6,336 5,260 4,519 3,840 17,099 12,595 India 41,266 39,564 35,766 31,419 29,372 123,883 86,669 Billed Person Months 38,
Slide 35: Persistent
Persistent See Beyond, Rise Above