PEGA(PEGA)2025-02-12 21:08Financial Performance - Total revenue for 2024 was $1,497 million, reflecting a 5% increase from $1,432 million in 2023[8] - Total revenue for Q4 2024 was $490.83 million, a 3.4% increase from $474.23 million in Q4 2023[24] - Subscription services revenue increased to $230.90 million in Q4 2024, up 11.5% from $206.99 million in Q4 2023[24] - Net income for the year ended December 31, 2024, was $99.19 million, representing a 46% increase compared to $67.81 million in 2023[28] - Free cash flow for the year ended December 31, 2024, was $338,214,000, representing a 68% increase from $201,004,000 in 2023[36] - Pega Cloud revenue increased by 18% to $652,443,000 in 2024 compared to $552,998,000 in 2023[40] - Subscription services revenue grew by 8% to $944,250,000 in 2024 from $877,089,000 in 2023[40] Cash Flow and Assets - Operating cash flow reached $346 million and free cash flow was $338 million in 2024[5] - Cash provided by operating activities for the year was $345.93 million, compared to $217.79 million in 2023, reflecting a significant increase[28] - The company’s cash, cash equivalents, and marketable securities totaled $739.97 million at the end of 2024, up from $423.34 million in 2023[27] - Total assets grew to $1.77 billion as of December 31, 2024, up from $1.51 billion in 2023[27] Future Projections - The company expects 12% ACV growth and $1.6 billion in revenue for 2025[10] - Diluted earnings per share (GAAP) for 2025 is projected to be $1.60, while non-GAAP is expected to be $3.10[10] - Pega's cash flow from operations is projected to be $455 million in 2025, with free cash flow expected to be $440 million[10] - Revenue guidance for 2025 is projected at $1,600,000,000[48] - Net income guidance for 2025 is $149,000,000 under GAAP and $289,000,000 under non-GAAP[48] Growth Metrics - Annual Contract Value (ACV) increased by 9% year-over-year to $1,372 million, with a constant currency growth of 11%[4] - Pega Cloud ACV grew by 18% year-over-year, with a constant currency growth of 21%[5] - The backlog as of December 31, 2024, was $1,623,492,000, reflecting an 11% growth from $1,463,368,000 in 2023[45] - The company achieved a Rule of 40 status in 2024, indicating a balance of growth and profitability[3] Expenses and Liabilities - Research and development expenses for the year were $298.07 million, slightly up from $295.51 million in 2023[24] - Total current liabilities increased to $1.09 billion in 2024, compared to $577.06 million in 2023, primarily due to the issuance of convertible senior notes[27] Taxation - The GAAP effective income tax rate for 2024 was 30%, up from 29% in 2023[1] Innovation and Strategy - New product innovations and AI solutions have led to increased client engagement and opportunities[2] - The company plans to continue focusing on market expansion and new product development to drive future growth[31]