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Mar 31, 2023

Pegasystems Q1 2023 Earnings Report

Pegasystems' Q1 2023 results were driven by a focus on client success.

Key Takeaways

Pegasystems reported a decrease in total revenue and GAAP net loss for Q1 2023, but highlighted ACV growth and strong cash generation. The company's focus on client engagement and profitable growth contributed to the results.

Annual contract value (ACV) grew 15% year over year (constant currency).

Focus on profitable growth led to significant cash generation.

Pega Cloud gross margin reached 72%.

The team delivered well on ACV growth, free cash flow, and backlog.

Total Revenue
$325M
Previous year: $376M
-13.5%
EPS
$0.23
Previous year: $0.59
-61.0%
Total ACV
$1.17B
Previous year: $1.03B
+13.5%
Gross Profit
$228M
Previous year: $288M
-21.0%
Cash and Equivalents
$168M
Previous year: $133M
+26.8%
Free Cash Flow
$74.8M
Total Assets
$1.28B
Previous year: $1.54B
-16.7%

Pegasystems

Pegasystems

Pegasystems Revenue by Segment

Forward Guidance

The press release does not contain specific forward guidance. It mentions the company's progress against its 2023 goals and excitement about becoming a Rule of 40 company.

Revenue & Expenses

Visualization of income flow from segment revenue to net income