PEGA(US:PEGA)2022-04-27 16:00Revenue Growth - Subscription revenue increased by 21% to $307.6 million in Q1 2022, compared to $254.9 million in Q1 2021[105] - Total revenue for Q1 2022 was $376.3 million, a 20% increase from $313.5 million in Q1 2021[105] - Annual contract value (ACV) rose by 21% since March 31, 2021, reflecting strong demand for subscription services[97] - Remaining performance obligations (backlog) increased by 20% since March 31, 2021, indicating expected future revenue growth[100] Profitability and Expenses - Gross profit for Pega Cloud grew by 40% to $63.4 million in Q1 2022, up from $45.3 million in Q1 2021[106] - Selling and marketing expenses increased by 9% to $162.2 million, representing 43% of total revenue[107] - Research and development expenses rose by 14% to $71.5 million, accounting for 19% of total revenue[107] - Operating cash flow was $15.1 million in Q1 2022, down from $21.7 million in Q1 2021[114] Cash and Financial Position - Cash held by U.S. entities decreased to $251.6 million as of March 31, 2022, from $274.8 million at the end of 2021[114] - Total cash, cash equivalents, and marketable securities decreased from $362,779 thousand to $332,172 thousand[115] - The company has no outstanding borrowings under its $100 million senior secured revolving credit agreement as of March 31, 2022[119] Legal and Foreign Currency - The company incurred $17.4 million in legal fees and related expenses in the three months ended March 31, 2022, due to proceedings outside of ordinary business[117] - The company reported a foreign currency loss of $7,937 thousand for the three months ended March 31, 2022, compared to a loss of $7,522 thousand in the same period of 2021[129] - A hypothetical 10% strengthening of the U.S. dollar would have resulted in a 3% decrease in revenue for the three months ended March 31, 2022[127] Shareholder Returns - The company intends to pay a quarterly cash dividend of $0.03 per share, with total dividend payments to stockholders amounting to $2,454 thousand for the three months ended March 31, 2022[122][123] - The company has a remaining stock repurchase authority of $60 million as of March 31, 2022, with $22,583 thousand repurchased during the three months ended March 31, 2022[120][121] Other Financial Metrics - The effective income tax benefit rate was 95% for Q1 2022, compared to 73% in Q1 2021[112] - The transition to subscription-based software sales is impacting billings and cash collections, with subscription licenses generally billed over the contract term[116] - The company’s contractual obligations total $830,214 thousand as of March 31, 2022, including convertible senior notes and purchase obligations[124] - The increase in interest income in the three months ended March 31, 2022, was primarily due to increases in market interest rates[115]