Pegasystems Inc. (NASDAQ: PEGA), the leading enterprise AI decisioning and workflow automation platform provider, released its financial results for the second quarter of 2024. “Our approach to stat...
CAMBRIDGE, Mass.: Pegasystems Inc. (NASDAQ: PEGA), the leading enterprise AI decisioning and workflow automation platform provider, released its financial results for the second quarter of 2024.
“Our approach to statistical AI and generative AI continues to be a significant differentiator,” said Alan Trefler, founder and CEO. “The offerings we’ve introduced, especially Pega GenAI Blueprint™, have captured the imagination of clients, prospects, and partners, allowing them to identify new possibilities and helping us drive deeper engagement. With tens of thousands of blueprints created over the last few months, we’re identifying opportunities to accelerate growth and creating additional momentum for Pega Cloud®.”
"I'm really proud to see how our team is improving profitability while driving ACV growth,” said Ken Stillwell, COO and CFO. “Our strong execution and our AI innovation put us in a fantastic position to pursue the massive digital transformation opportunity in front of us.”
Financial and performance metrics (1)
Reconciliation of ACV and Constant Currency ACV
(in millions, except percentages) | June 30, 2023 |
| June 30, 2024 |
| 1-Year Change | |||
ACV | $ | 1,164 |
| $ | 1,305 |
| 12 | % |
Impact of changes in foreign exchange rates |
| — |
|
| 5 |
|
| |
Constant currency ACV | $ | 1,164 |
| $ | 1,310 |
| 13 | % |
Note: Constant currency ACV is calculated by applying the June 30, 2023 foreign exchange rates to all periods shown. |
______________________________
1 Refer to the schedules at the end of this release for additional information, including a reconciliation of GAAP and non-GAAP measures.
(Dollars in thousands, except per share amounts) | Three Months Ended June 30, |
|
|
| Six Months Ended June 30, |
|
| |||||||||||||
2024 |
| 2023 |
| Change |
| 2024 |
| 2023 |
| Change | ||||||||||
Total revenue | $ | 351,153 |
| $ | 298,268 |
|
| 18 | % |
| $ | 681,300 |
|
| $ | 623,740 |
|
| 9 | % |
Net income (loss) - GAAP | $ | 6,613 |
| $ | (46,804 | ) |
| * |
| $ | (5,511 | ) |
| $ | (67,578 | ) |
| 92 | % | |
Net income - non-GAAP | $ | 45,841 |
| $ | 1,203 |
|
| 3711 | % |
| $ | 87,995 |
|
| $ | 20,423 |
|
| 331 | % |
Diluted earnings (loss) per share - GAAP | $ | 0.07 |
| $ | (0.56 | ) |
| * |
| $ | (0.07 | ) |
| $ | (0.82 | ) |
| 91 | % | |
Diluted earnings per share - non-GAAP | $ | 0.52 |
| $ | 0.01 |
|
| 5100 | % |
| $ | 1.00 |
|
| $ | 0.24 |
|
| 317 | % |
(Dollars in thousands) | Three Months Ended June 30, |
| Change |
| Six Months Ended June 30, |
| Change | ||||||||||||||||||||||||
2024 |
| 2023 |
|
| 2024 |
| 2023 |
| |||||||||||||||||||||||
Pega Cloud | $ | 134,086 | 38 | % |
| $ | 115,063 | 39 | % |
| $ | 19,023 |
| 17 | % |
| $ | 264,988 | 39 | % |
| $ | 222,942 | 36 | % |
| $ | 42,046 |
| 19 | % |
Maintenance |
| 80,344 | 23 | % |
|
| 82,042 | 27 | % |
|
| (1,698 | ) | (2 | )% |
|
| 161,345 | 23 | % |
|
| 161,672 | 26 | % |
|
| (327 | ) | — | % |
Subscription services |
| 214,430 | 61 | % |
|
| 197,105 | 66 | % |
|
| 17,325 |
| 9 | % |
|
| 426,333 | 62 | % |
|
| 384,614 | 62 | % |
|
| 41,719 |
| 11 | % |
Subscription license |
| 84,647 | 24 | % |
|
| 41,197 | 14 | % |
|
| 43,450 |
| 105 | % |
|
| 147,985 | 22 | % |
|
| 125,724 | 20 | % |
|
| 22,261 |
| 18 | % |
Subscription |
| 299,077 | 85 | % |
|
| 238,302 | 80 | % |
|
| 60,775 |
| 26 | % |
|
| 574,318 | 84 | % |
|
| 510,338 | 82 | % |
|
| 63,980 |
| 13 | % |
Consulting |
| 52,040 | 15 | % |
|
| 58,387 | 19 | % |
|
| (6,347 | ) | (11 | )% |
|
| 106,087 | 16 | % |
|
| 111,420 | 18 | % |
|
| (5,333 | ) | (5 | )% |
Perpetual license |
| 36 | — | % |
|
| 1,579 | 1 | % |
|
| (1,543 | ) | (98 | )% |
|
| 895 | — | % |
|
| 1,982 | — | % |
|
| (1,087 | ) | (55 | )% |
| $ | 351,153 | 100 | % |
| $ | 298,268 | 100 | % |
| $ | 52,885 |
| 18 | % |
| $ | 681,300 | 100 | % |
| $ | 623,740 | 100 | % |
| $ | 57,560 |
| 9 | % |
Quarterly conference call
A conference call and audio-only webcast will be conducted at 8:00 a.m. EDT on Thursday, July 25, 2024.
Members of the public and investors are invited to join the call and participate in the question and answer session by dialing 1 (888) 415-4305 (domestic) or 1 (646) 960-0336 (international) and using Conference ID 1559653, or via https://events.q4inc.com/attendee/610142887 by logging onto www.pega.com at least five minutes prior to the event's broadcast and clicking on the webcast icon in the Investors section.
Discussion of non-GAAP financial measures
Our non-GAAP financial measures should only be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. We believe that these measures help investors understand our core operating results and prospects, which is consistent with how management measures and forecasts our performance without the effect of often one-time charges and other items outside our normal operations. Management uses these measures to assess the performance of the company's operations and establish operational goals and incentives. They are not a substitute for financial measures prepared under U.S. GAAP. Refer to the schedules at the end of this release for additional information, including a reconciliation of GAAP and non-GAAP measures.
Forward-looking statements
Certain statements in this press release may be "forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995.
Words such as expects, anticipates, intends, plans, believes, will, could, should, estimates, may, targets, strategies, intends to, projects, forecasts, guidance, likely, and usually or variations of such words and other similar expressions identify forward-looking statements. These statements represent our views only as of the date the statement was made and are based on current expectations and assumptions.
Forward-looking statements deal with future events and are subject to risks and uncertainties that are difficult to predict, including, but not limited to:
These risks and others that may cause actual results to differ materially from those expressed in such forward-looking statements are described further in Part I of our Annual Report on Form 10-K for the year ended December 31, 2023, and other filings we make with the U.S. Securities and Exchange Commission (“SEC”).
Investors are cautioned not to place undue reliance on such forward-looking statements, and there are no assurances that the results included in such statements will be achieved. Although subsequent events may cause our view to change, except as required by applicable law, we do not undertake and expressly disclaim any obligation to publicly update or revise these forward-looking statements, whether as the result of new information, future events, or otherwise.
Any forward-looking statements in this press release represent our views as of July 24, 2024.
About Pegasystems
Pega provides a powerful platform that empowers the world's leading organizations to unlock business-transforming outcomes with real-time optimization. Clients use our enterprise
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