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Jun 30, 2023

Pegasystems Q2 2023 Earnings Report

Pegasystems' Q2 2023 financial results were released, demonstrating solid execution and a focus on balancing growth with free cash flow.

Key Takeaways

Pegasystems reported a 9% increase in total revenue, reaching $298.27 million. The company saw improvements in net loss, with GAAP net loss decreasing by 84% to $46.80 million and non-GAAP net income of $1.20 million. ACV grew 13% year over year, and the company achieved record cash flow in the first half of 2023.

Operating cash flow exceeded $110 million, and free cash flow exceeded $120 million in the first half of 2023.

Annual contract value (ACV) grew 13% year over year.

Pega Cloud gross margin expanded to 73%.

The company is focusing on client success and go-to-market alignment to improve operating effectiveness.

Total Revenue
$298M
Previous year: $274M
+8.7%
EPS
$0.01
Previous year: -$0.38
-102.6%
Total ACV
$1.16B
Previous year: $1.03B
+13.3%
Gross Profit
$202M
Previous year: $179M
+12.8%
Cash and Equivalents
$187M
Previous year: $109M
+71.0%
Free Cash Flow
$123M
Previous year: -$25.4M
-582.6%
Total Assets
$1.19B
Previous year: $1.26B
-5.2%

Pegasystems

Pegasystems

Pegasystems Revenue by Segment

Forward Guidance

Pegasystems will be looking to further increase operating effectiveness with additional improvements in their go-to-market alignment.

Revenue & Expenses

Visualization of income flow from segment revenue to net income