Pegasystems (PEGA) shares ended the last trading session 6.6% higher at $100. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3% loss over the past four weeks.The optimism surrounding the stock can primarily be attributed to the growing demand for Pegasystems solutions. The company’s strong platform and extensive artificial intelligence (AI) portfolio, enabling world-class businesses to attain transformative outcom ...

Pegasystems (PEGA) shares have surged 102.2% over the past year, significantly outperforming the Zacks Computer and Technology and the Zacks Internet - Software industry’s return of 29.2% and 10.8%, respectively.Over the same time frame, it also outperformed its industry peers, including Autodesk (ADSK) , ACI Worldwide (ACIW) and Manhattan Associates (MANH) . Shares of ADSK, ACIW and MANH have gained 18.8%, 74.4% and 25.3%, respectively, in the trailing 12-month period.This exceptional performance has left ...

Core Insights - Wedbush analyst Dan Ives has identified Pegasystems as a top AI pick for 2025, with a strong performance in 2024, achieving a total return of 91% [1] - Analysts from Royal Bank of Canada and Citigroup have updated their price targets for Pegasystems, indicating a potential upside of 24% based on recent closing prices [1] Company Overview - Pegasystems focuses on improving customer engagement, streamlining customer service, and enhancing efficiency through intelligent automation [2][3][4] - The Pega Customer Decision Hub utilizes AI to personalize customer experiences and predict behavior, aiding in customer acquisition and retention [2] - The Pega Customer Service app enhances inquiry handling efficiency using AI-powered virtual assistants [3] - The Pega Platform allows companies to automate workflows and integrate with various software applications, enabling low-code development [4][5] Financial Performance - Pegasystems has experienced a revenue growth of 9% over the past twelve months, with significant improvements in profitability since September 2023 [6] - The company's gross margin has increased by over 200 basis points, while operating and net income margins have risen to nearly 12% and over 7%, respectively [7] - Free cash flow has nearly doubled year-to-date in 2024 compared to 2023, although backlog growth has stagnated since early 2024 [7] Future Outlook - The success of Pegasystems in 2025 hinges on enterprises' commitment to AI implementation, as the industry is still in the early phases of AI adoption [8] - Continuous innovation and product development, such as the GenAI Blueprint tool, will be crucial for providing customer value [9][10] - Pegasystems is positioned well within the AI movement and has a competitive forward price-to-earnings ratio of 32x compared to its peers [11]

Pegasystems (PEGA) shares have risen 28.6% in three months, significantly outperforming the Zacks Computer and Technology and the Zacks Internet - Software industry’s return of 8.1% and 2.9%, respectively.Over the same time frame, it also outperformed its industry peers, including Autodesk (ADSK) , ACI Worldwide (ACIW) and Manhattan Associates (MANH) . Shares of ADSK and ACIW have gained 11% and 6%, respectively, while MANH has lost 1.9% in the past three months.  This outperformance highlights Pegasystems’ ...

I am initiating coverage on Pegasystems Inc. (NASDAQ: PEGA ) with a BUY recommendation based on a 12-month price target of $111.75, implying a 27.0% upside to the last close of $88.02 on 11 November 2024. This blended price target is derived fromI have been investing in equities for the last two years since I came of age and have had a fervent interest in the financial markets since I was a teenager. I intend to major in Finance and explore the discipline further when I matriculate in 2025. Post-graduation, ...

Pegasystems Investor Presentation Q3 2024 NASDAQ: PEGA pegainvestorrelations@pega.com October 23, 2024 © Pegasystems Inc. Safe Harbor Statement Certain statements in this presentation 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 sim ...

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to increase significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] - Michael has over 10 years of experience analyzing companies in tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [1] Group 2 - The investing group led by Michael, Deep Value Returns, offers insights through its concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [1] - The group provides "hand-holding" support for both new and experienced investors, fostering an active and vibrant community accessible via chat [1]

For the quarter ended September 2024, Pegasystems (PEGA) reported revenue of $325.05 million, down 2.9% over the same period last year. EPS came in at $0.39, compared to $0.44 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $328.76 million, representing a surprise of -1.13%. The company delivered an EPS surprise of +11.43%, with the consensus EPS estimate being $0.35.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

Pegasystems (PEGA) came out with quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.43%. A quarter ago, it was expected that this business software company would post earnings of $0.23 per share when it actually produced earnings of $0.52, delivering a surprise of 126.09%.Over the last four quarter ...

Financial Performance - Annual Contract Value (ACV) increased by 16% year over year, reaching $1,360 million as of September 30, 2024[2] - Total revenue for the three months ended September 30, 2024, was $325,050 million, a decrease of 3% compared to $334,643 million in the same period of 2023[3] - Non-GAAP net income for the nine months ended September 30, 2024, was $122,589 million, an increase of 111% from $58,018 million in the prior year[3] - Pega Cloud revenue for the nine months ended September 30, 2024, was $409,096 million, reflecting a 20% increase from $340,982 million in the same period of 2023[4] - Total revenue for the nine months ended September 30, 2024, reached $1,006,350, compared to $958,383 for the same period in 2023, reflecting a year-over-year increase of 5.0%[13] - The net loss for the nine months ended September 30, 2024, was $(19,901), significantly improved from a net loss of $(74,857) in the same period of 2023[16] - Cash flow from operations for the first nine months of 2024 was $251 million, with free cash flow at $246 million[1] - Free cash flow for the nine months ended September 30, 2024, was $245,776 million, representing a 99% increase from $123,649 million in the same period last year[23] Revenue Breakdown - Pega Cloud ACV grew by 30% year over year, totaling $144,108 million for the three months ended September 30, 2024[1] - Subscription services revenue for the three months ended September 30, 2024, was $224,810 million, a 69% increase from $201,578 million in the same period of 2023[4] - Subscription services revenue for the nine months ended September 30, 2024, was $947,327 million, a 16% increase from $813,821 million in the same period last year[24] - Annual Contract Value (ACV) for Pega Cloud increased to $640,574 million, a 30% increase from $494,571 million year-over-year[24] Expenses and Losses - The company reported a GAAP net loss of $14,390 million for the three months ended September 30, 2024, compared to a loss of $7,279 million in the same period of 2023, representing a 98% increase in losses[3] - Total operating expenses for the nine months ended September 30, 2024, were $737,147, slightly lower than $744,858 in the same period last year, a decrease of 1.0%[13] - Selling and marketing expenses for the three months ended September 30, 2024, were $14,169 million, a 36% increase from $10,401 million year-over-year[21] - Research and development expenses for the three months ended September 30, 2024, were $7,308 million, slightly down from $7,375 million in the same period last year[21] Cash and Assets - Cash provided by operating activities for the nine months ended September 30, 2024, was $250,697, compared to $137,920 in the prior year, an increase of 81.5%[16] - Cash, cash equivalents, and restricted cash at the end of the period were $299,065, compared to $172,146 at the end of the previous year, an increase of 73.8%[16] - Total current assets as of September 30, 2024, amounted to $1,119,080, up from $1,029,027 at the end of 2023, representing an increase of 8.8%[15] - Total liabilities decreased to $1,106,209 as of September 30, 2024, from $1,156,898 at the end of 2023, a reduction of 4.4%[15] Backlog Information - As of September 30, 2024, total backlog is $1,475.3 million, reflecting a 17% growth rate year-over-year[28] - The backlog for subscription Pega Cloud is $495.6 million, representing 53% of the total backlog[26] - The backlog for services and maintenance is $297.9 million, accounting for 20% of the total backlog[26] - The backlog for subscription licenses is $51.0 million, which is 3% of the total backlog[26] - The total backlog as of September 30, 2023, was $1,265.4 million, with a year-over-year change of $209.9 million[28] - The constant currency backlog for September 30, 2024, is projected to be $1,432 million, indicating a 13% increase[28] - The backlog for 1 year or less is $779.2 million, which is 53% of the total backlog[26] - The backlog for 1-2 years is $386.8 million, representing 26% of the total backlog[26] - The backlog for 2-3 years is $178.4 million, accounting for 12% of the total backlog[26] - The backlog for greater than 3 years is $130.9 million, which is 9% of the total backlog[26] Earnings Per Share - Diluted earnings per share on a non-GAAP basis for the nine months ended September 30, 2024, was $1.38, a 100% increase from $0.69 in the prior year[3] - The diluted earnings per share - non-GAAP for the three months ended September 30, 2024, was $0.39, a decrease of 11% from $0.44 in the same period last year[18] Strategic Insights - Pega's distinctive AI approach is driving client engagement and digital transformation, as highlighted by CEO Alan Trefler[1]