Pegasystems (PEGA) came out with quarterly earnings of $0.48 per share, missing the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.04%. A quarter ago, it was expected that this business software company would post earnings of $1.07 per share when it actually produced earnings of $1.77, delivering a surprise of 65.42%.Over the last four quarters ...

EXHIBIT 99.1 Pega Delivers Outstanding Cash Flow and Margin Expansion in Q1 2024 CAMBRIDGE, Mass. — April 24, 2024 — Pegasystems Inc. (NASDAQ: PEGA), the leading enterprise AI decisioning and workflow automation platform provider, released its financial results for the first quarter of 2024. "In Q1, we released Pega GenAI Blueprint™, a revolutionary technology that massively changes the way we engage with our clients to help them re-imagine and evolve their business," said Alan Trefler, founder and CEO. "Hu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________ FORM 10-Q _____________________________________ ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2024 OR ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 1-11859 ____________________________ PEGASYSTEMS INC. (Exact name of Registrant as specified in its charter) ...

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Pegasystems Inc. (NASDAQ: PEGA), the leading enterprise AI decisioning and workflow automation platform provider, today announced a quarterly cash dividend of $0.03 per share, maintaining the company’s current dividend program. The Q2 2024 dividend will be paid on April 15, 2024, to shareholders of record as of April 1, 2024. About Pegasystems Pega provides a powerful platform that empowers the world’s leading organizations to unlock business-transforming outcomes with r ...

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Pegasystems Inc. (NASDAQ: PEGA), the leading enterprise AI decisioning and workflow automation platform provider, today announced Forrester Research has named Pega a Leader in The Forrester WaveTM: Customer Service Solutions, Q1 2024 (1). Across all solutions evaluated, Pega earned the top score in the ‘current offering’ category. In the report, under the headline “Pegasystems excels at automating and guiding service journeys to the best outcomes,” the report says: “Peg ...

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Pegasystems Inc. (NASDAQ: PEGA), the leading enterprise AI decisioning and workflow automation platform provider, today announced Forrester Research has named Pega a Leader in The Forrester WaveTM: Real-Time Interaction Management (RTIM) report, Q1 2024 (1). Pega earned the top scores in the main scoring categories of ‘current offering’ and ‘strategy,’ as well as the highest possible score in ‘market presence.’ In the report, under the headline “Pegasystems dominates en ...

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Key PointsPegasystems provides artificial intelligence (AI) powered tools for customer relationship management (CRM) and business process management (BPM) optimization and automation solutions.Pegasystems reported a blowout Q4 2023 EPS beat by 78 cents and raised full-year 2024 guidance.Pegasystems stock gapped up and closed 35% higher post-earnings.5 stocks we like better than PegasystemsPegasystems Inc. NASDAQ: PEGA is an enterprise software company specializing in helping companies unlock business-transf ...

Financial Data and Key Metrics - The company achieved total revenue of $1.43 billion in 2023, driven by a larger number of term renewals and longer-duration term license contracts in Q4 [131] - Cash flow from operations surged to $218 million, an 800% increase from the prior year, with free cash flow reaching $201 million, the highest in the company's history [132] - Full-year GAAP EPS was $0.73, and non-GAAP EPS was $2.48, exceeding $2 per share for the first time [133] - Pega Cloud ACV growth reaccelerated in Q4 to 21% year-over-year, with $58 million added in Q4 alone, the highest of any quarter [72] - Non-GAAP Pega Cloud margin expanded from 70% to approximately 75% [74] Business Line Performance - Pega Cloud is now the primary offering, enabling clients to focus on developing innovative business applications without managing underlying cloud infrastructure [20] - The company reduced non-GAAP sales and marketing expenses as a percentage of total revenue from 43% to 35% through operational restructuring [21] - The company introduced two new Gen AI offerings: Pega GenAI Knowledge Buddy and Pega GenAI Blueprint, aimed at improving developer productivity and enterprise innovation [12][124] Market Performance - The company's go-to-market strategy resulted in strong Q4 performance, with net new ACV additions exceeding Q4 2022 levels [112] - The company expects ACV growth to be back-end loaded in 2024, with significant renewals and cross-selling opportunities in the final quarter [22] - Pega Cloud ACV growth is expected to continue, with over 50% of ACV coming from Pega Cloud, driving a shift towards shorter-duration term license contracts [23][91] Strategy and Industry Competition - The company is leveraging Gen AI to double developer productivity, enhance client service, and maximize revenue through real-time optimization and personalization [11][63] - Pega's unique architecture, combining AI with enterprise-grade integration and controls, provides a competitive advantage in the market [62][70] - The company is focused on achieving the "rule of 40" by balancing growth and profitability, with double-digit ACV growth and robust free cash flow [24][75] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong demand for AI and the company's unique positioning to help clients leverage Gen AI effectively and safely [4][8] - The company expects total revenue of approximately $1.5 billion in 2024, with ACV growth of 11% and free cash flow increasing by 75% year-over-year to $350 million [76][81] - Management remains cautious about macroeconomic uncertainties, including interest rates and geopolitical risks, but is optimistic about the company's growth trajectory [37][79] Other Important Information - The company will host PegaWorld from June 9 to June 11 in Las Vegas, showcasing client success stories and new innovations [16][113] - The company is evaluating its debt strategy, including potential retirement or refinancing of convertible debt, given its strong cash flow position [54][105] Q&A Session Summary Question: How is Gen AI adoption impacting Pega's business model and revenue? [87] - Gen AI is expected to drive consumption rather than distinct SKU pricing, with adoption rates likely to increase over the next 1-3 years [87][88] - The primary value of Gen AI is reducing barriers to entry for clients, accelerating ACV growth, and enabling faster deployment of enterprise-grade applications [142][143] Question: How is Pega positioning itself in the competitive Gen AI landscape? [140] - Pega is integrating Gen AI into its core product lineup, focusing on enterprise-grade solutions that differentiate it from competitors [80][138] - The company's unique architecture and focus on business outcomes rather than just code generation provide a competitive edge [62][70] Question: What are the investment priorities for 2024? [149] - The company plans to continue leveraging operating expenses across all lines, with a focus on go-to-market transformation and expanding client engagement [149] - Investments in Gen AI, Launchpad, and cloud infrastructure remain key priorities [95][103] Question: How is Pega addressing the shift to shorter contract durations? [157] - Shorter contract durations reflect clients' preference for consumptive growth and more frequent renewals, providing opportunities for cross-selling and upselling [23][45] Question: How is Pega leveraging autonomous agents powered by Gen AI? [99] - Pega is integrating autonomous agents into its product roadmap, focusing on streamlining workflows and enhancing customer experiences [49][100] - The company recently rolled out voice AI capabilities, enabling real-time conversation analysis and field population for call center agents [100]

Shares of Pegasystems (PEGA 30.28%) were surging higher Thursday after the low-code software company breezed past estimates in its fourth-quarter earnings report.As of 1 p.m. ET, the stock was up 31.9%. How Pegasystems wowed the marketPegasystems' revenue growth accelerated from earlier in the year to 20%, reaching $474.2 million, which was much better than the consensus estimate of $413.6 million. Growth in annual contract value increased 11% to $1.26 billion as the company is seeing demand for AI products ...