Slide 1: Analyst Presentation
Analyst Presentation Quarter Ended December 31, 2022 January 18, 2023
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. $264.4M $1,057.4M $978.8M ₹2.4B FY23 Q3 Revenue Annualized revenue run rate TTM Revenue FY23 Q3 PAT based on Q3FY23 +32.8% YoY +39.6% YoY +34.9% YoY $440M ₹116.30 $3.6B 22,598 Total Contract Value (TCV) TTM EPS Ma
Slide 4: Strong global presence with 22,500+ team members across key geographies
Strong global presence with 22,500+ team members across key geographies North & Rest of Central America Europe India the world 77.1% 9.0% 12.3% 1.6% Revenue Revenue Revenue Revenue 2,177 377 19,862 182 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: Persistent Named a Leader in Everest Group Software Product Engineering Services PEAK Matrix 2023
Analyst Recognition: Everest Group Read the full report Persistent Named a Leader in Everest Group Software Product Engineering Services PEAK Matrix® 2023 We have been recognized as a Leader in the Everest Group Software Product Engineering Services PEAK Matrix® Assessment 2023 among 33 leading engi
Slide 9: Persistent takes leadership positions in Zinnov Zones 2022
For the 10th consecutive year, Persistent takes leadership positions in Zinnov Zones 2022 Engineering Research and Development Services ratings Software Platform Engineering Ratings 2022 Once again, Persistent has been named a Leader in the following nine segments: \ Enterprise Software Engineering
Slide 10: Persistent Marks a Decade as a Leader in Zinnov Zones
Analyst Recognition: Zinnov Persistent Marks a Decade as a Leader in Zinnov Zones Engineering Research and Development Services Ratings “Persistent’s strategic investments in new-age technologies such as Cloud, Data & AI have helped strengthen its positioning across the Digital Engineering space. It
Slide 11: Bolstering our strategic partner ecosystem
Bolstering our strategic partner ecosystem Persistent Partners with Software AG and Persistent IBM Call for Code 2022 Microsoft to Accelerate Partner to Deliver Innovative Persistent provided technical Its Growth Industry Solutions for the expertise and development talent Leverages Microsoft technol
Slide 12: We are building on our long-term growth journey
We are building on our long-term growth journey 979 16.1% 23.5% 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
Slide 13: 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% 15.4% 34.0% 264.4 14.6% 255.6 14.0% 14.0% 14.3% 240.0 35.0% 13.5% 13.9% 241.5 13.2% 220.0 27.3% 32.8% 30.0% 217.3 200.0
Slide 14: 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 7 0 . % 1 1 0 .0 81.3% 9 0 % 5 5 .0 5 7 % 8 5 % 80. 0 8 0 % 1 0 .0 6 0 . % 5 0 % 7 5 % 5 0
Slide 15: Leading to lower client concentration, consistent broad-based growth
Leading to lower client concentration, consistent broad-based growth… Client Concentration Large Client Count Top 10 clients as % of total revenue >$5M Annual Revenue 46.3% 46.7% 45.4% 45.0% 34 30 42.1% 40.7% 26 25 24 36.7% 22 21 35.0% 17 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY2
Slide 16: … and significant shareholder value creation
… and significant shareholder value creation Persistent’s Total Shareholder Return Persistent 1-Year Relative Stock Performance* v/s NIFTY 50 & NIFTY IT Index 1 year return 0.6% -21.0% -4% 3 year return 474.2% 9.3% -21% -26% 5 year return 439.1% 11.7% Dec-21 Apr-22 Jul-22 Sep-22 Dec-22 Share Price R
Slide 17: Performance Highlights
Performance Highlights
Slide 18: 11th sequential quarter of revenue growth (CEO message)
We are delighted to announce the 11th sequential quarter of revenue growth, fueled by our continued investments in innovative technologies and our differentiated Digital Engineering expertise. In this dynamic macro-economic environment, we are closely collaborating with our clients and partner ecosy
Slide 19: Financial highlights for Q3 FY23
Financial highlights for Q3 FY23 Revenue ($ million) 3.4% Q-o-Q 32.8% Y-o-Y Revenue (₹ million) 5.9% Q-o-Q 45.4% Y-o-Y 264.35 21,693.7 255.56 20,486.4 199.12 14,917.2 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 EBIT (₹ million) 11.6% Q-o-Q 60.0% Y-o-Y PAT (₹ million) 8.2% Q-o-Q 34.9% Y-o-Y 3,332.0 2,9
Slide 20: TCV and ACV bookings in Q3 FY23
TCV and ACV bookings in Q3 FY23 Trailing Twelve Month TCV* $1,563.0M Trailing Twelve Month TCV (New) $892.7M 440.2 239.0 230.3 228.3 394.0 361.0 367.8 195.1 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Trailing Twelve Month ACV* $1,122.4M Trailing Twelve Month ACV (New) $551.6M 326.3 143.
Slide 21: Notable News and Achievements
Notable News and Achievements
Slide 22: Dividend Update
Dividend Update ₹28 Persistent Board of Directors declared an Interim Dividend of ₹28 per share* on the face value of ₹10 each for the Financial Year 2022-2023. *Compared to interim dividend of ₹20 in Q3 FY22 and a full year dividend of ₹31 for FY22.
Slide 23: Key wins for the quarter
Key wins for the quarter Software, Hi-Tech & Banking, Financial Services Healthcare Emerging Industries & Insurance & Life Sciences Establishing a dedicated Global Transforming legacy check platform and Enabling the cloud migration journey to Technology Center to drive operational enabling cloud rea
Slide 24: Strengthening our Leadership: Welcoming Dr. Rajesh Gharpure
Strengthening our Leadership: Welcoming Dr. Rajesh Gharpure We are pleased to welcome Dr. Rajesh Gharpure as the Chief Delivery Officer for Service Lines. Rajesh has over 27 years of experience in Global Delivery and Operations, Digital Transformation, Consulting and Finance at LTI. He brings with h
Slide 25: New office inaugurations around the world
Drumbeat of new office inaugurations around the world to support our growth and thriving culture Indore Pune, Ramanujan Bengaluru London
Slide 26: Invested in new state-of-the-art home for Persistent University in Pune
Invested in new state-of-the-art home for Persistent University in Pune Ramanujan Building \ 150K+ square feet with 1,300+ seating capacity \ Best-in-class AV infrastructure \ Customizable training halls with 40 – 55 seats each \ Modern workspaces with standing desks, huddle, and focus zones \ 6 bro
Slide 27: Recognition for the quarter
Recognition for the quarter Persistent Named a Leader in Persistent won the Appian APJ Persistent won two awards at Agile Application Development Innovation Award 2022 for our the prestigious 25th Annual Projects in ISG Provider Lens™ development & delivery of Marketing Excellence Awards: Next-Gen A
Slide 28: News highlights for the quarter
News highlights for the quarter Slowdown Fears: Is It Really Different For I.T. You've Migrated to the Cloud, Now What? 4 Critical Companies This Time? Outlook 2023 Cost-Saving Practices Sandeep Kalra Nitha Puthran Learn More Learn More This is how traditionally non-tech industries are 'Tech Connect
Slide 29: Financial Details
Financial Details
Slide 30: Sequential Q3 FY23 vs Q2 FY23
Sequential Q3 FY23 vs Q2 FY23 Expenses / Sales % Expenses / Sales % Particulars Q3FY23 Q2FY23 Change QoQ Q3FY23 Q2FY23 Revenue ($ M) Services 242.65 235.58 3.0% IP Led 21.70 19.98 8.6% Revenue ($ M) 264.35 255.56 3.4% Avg. Exchange Rate ₹ / US$ 82.06 80.16 2.4% Revenue (₹ M) 21,693.68 20,486.41 5.9%
Slide 31: YoY Comparison Q3 FY23 vs Q3 FY22
YoY Comparison Q3 FY23 vs Q3 FY22 Expenses / Sales % Expenses / Sales % Particulars Q3FY23 Q3FY22 Change QoQ Q3FY23 Q3FY22 Revenue ($ M) Services 242.65 172.68 40.5% IP Led 21.70 26.44 -17.9% Revenue ($ M) 264.35 199.12 32.8% Avg. Exchange Rate ₹ / US$ 82.06 74.92 9.5% Revenue (₹ M) 21,693.68 14,917
Slide 32: YoY Comparison 9M FY23 vs 9M FY22
YoY Comparison 9M FY23 vs 9M FY22 Expenses / Sales % Expenses / Sales % Particulars YTD Q3FY23 YTD Q3FY22 Change QoQ YTD Q3FY23 YTD Q3FY22 Revenue ($ M) Services 702.83 477.12 47.3% IP Led 58.60 71.14 -17.6% Revenue ($ M) 761.43 548.26 38.9% Avg. Exchange Rate ₹ / US$ 80.06 74.29 7.8% Revenue (₹ M)
Slide 33: Balance Sheet (₹ M)
Balance Sheet (₹ M) As on As on As on Particulars December 31, 2022 March 31, 2022 December 31, 2021 Assets PPE and Intangible Assets 22,946.33 16,406.93 9,255.12 Non-Current Assets 2,443.70 5,413.30 6,134.60 Cash and Investments 16,746.11 17,472.98 18,964.09 Other Current Assets 26,391.89 14,847.76
Slide 34: Fact Sheet
Fact Sheet
Slide 35: Fact Sheet
Fact Sheet Nos. / % Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 FY22 FY21 Revenue from Operations, USD M 264.4 255.6 241.5 217.3 199.1 765.6 566.0 % Q-o-Q growth 3.4% 5.8% 11.1% 9.1% 9.2% % Q-o-Q growth (constant currency) 3.5% 6.6% 12.0% 9.3% 9.6% Revenue % Y-o-Y growth 32.8% 40.2% 44.8% 42.2% 36.2% 35.2% 1
Slide 36: Fact Sheet
Fact Sheet Description / % Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 FY22 FY21 North America 77.1% 78.6% 78.4% 78.6% 79.2% 78.8% 80.8% Europe 9.0% 8.3% 8.5% 8.4% 8.3% 8.7% 9.2% Geography Revenue Mix India 12.3% 11.5% 11.3% 11.0% 10.9% 10.6% 8.4% ROW 1.6% 1.6% 1.8% 2.0% 1.6% 1.9% 1.6% Total 100.0% 100.0% 10
Slide 37: Fact Sheet
Fact Sheet Nos. Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 FY22 FY21 Clients Billed Services 770 767 735 678 625 845 722 IP Led 134 134 129 125 122 237 239 Nos. Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 FY22 FY21 $30M+ 5 3 3 2 2 2 2 Client $20M – $30M 2 3 1 2 2 2 1 Engagement Size $10M – $20M 9 6 7 6 6 6 4 $5M – $
Slide 38: Fact Sheet
Fact Sheet USD / Per Person Month Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 FY22 FY21 Linear Revenue Per Global Delivery Centers 15,962 16,181 16,423 16,383 16,043 16,459 16,851 Billed PM* India 4,424 4,498 4,387 4,317 4,252 4,291 4,250 % Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 FY22 FY21 Attrition Rate TTM Basi
Slide 39: Fact Sheet
Fact Sheet Description / Nos. / % Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 FY22 FY21 Billable Person Months 51,465 47,704 45,900 41,025 35,938 140,982 99,264 Global Delivery Centers 6,578 6,438 6,336 5,260 4,519 17,099 12,595 India 44,887 41,266 39,564 35,766 31,419 123,883 86,669 Billed Person Months 39,
Slide 40: Persistent
Persistent See Beyond, Rise Above