Pegasystems (PEGA) Reports Q4 Earnings: What Key Metrics Have to Say

Core Insights - Pegasystems reported revenue of $490.83 million for the quarter ended December 2024, reflecting a year-over-year increase of 3.5% and a surprise of +1.76% over the Zacks Consensus Estimate of $482.32 million [1] - The company's EPS was $1.61, down from $1.77 in the same quarter last year, with a surprise of +5.92% compared to the consensus estimate of $1.52 [1] Revenue Breakdown - Subscription services revenue was $230.90 million, below the average estimate of $236.97 million, with a year-over-year increase of +11.6% [4] - Subscription license revenue reached $204.70 million, exceeding the average estimate of $186.13 million, but showed a year-over-year decline of -1.4% [4] - Total subscription revenue was $435.59 million, surpassing the average estimate of $423.13 million, with a year-over-year change of +5.1% [4] - Perpetual license revenue was $2.42 million, slightly above the average estimate of $2.41 million, but down -55% year-over-year [4] - Maintenance revenue was $81.26 million, below the average estimate of $84.96 million [4] - Consulting revenue was $52.82 million, compared to the average estimate of $57.28 million, reflecting a year-over-year decline of -2.7% [4] - Pega Cloud revenue was $149.64 million, slightly below the average estimate of $152.01 million [4] Profit Metrics - Gross profit from subscription services was $189.91 million, below the average estimate of $196.46 million [4] - Gross profit from perpetual licenses was $2.41 million, compared to the average estimate of $3.19 million [4] - Total gross profit from subscriptions was $394.22 million, exceeding the average estimate of $376.28 million [4] - Gross profit from subscription licenses was $204.31 million, surpassing the average estimate of $179.82 million [4] Stock Performance - Pegasystems shares have returned +10.2% over the past month, outperforming the Zacks S&P 500 composite's +4.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]