Sep 30, 2023

Pegasystems Q3 2023 Earnings Report

Pegasystems' Q3 2023 financial performance was released, highlighted by record cash flow and double-digit ACV growth.

Key Takeaways

Pegasystems Inc. reported its Q3 2023 financial results, marked by record free cash flow in the first three quarters and double-digit growth in Annual Contract Value (ACV). The company launched Pega Infinity ’23 with advanced GenAI capabilities and emphasized balancing growth with free cash flow.

Operating cash flow reached $138 million through Q3 2023, with free cash flow reaching $124 million.

Pega Cloud gross margin continued to improve, reaching 74% through Q3 2023.

Annual contract value grew 12% year over year, or 10% in constant currency.

Launched Pega Infinity ’23, featuring advanced GenAI capabilities.

Total Revenue
$335M
Previous year: $271M
+23.6%
EPS
$0.44
Previous year: -$0.34
-229.4%
Total ACV
$1.17B
Previous year: $16
+7306249900.0%
Gross Profit
$241M
Previous year: $178M
+35.6%
Cash and Equivalents
$336M
Previous year: $108M
+212.5%
Free Cash Flow
$23.8M
Previous year: -$18.8M
-226.8%
Total Assets
$1.22B
Previous year: $1.17B
+4.8%

Pegasystems

Pegasystems

Pegasystems Revenue by Segment

Forward Guidance

No forward guidance was provided in the release.

Revenue & Expenses

Visualization of income flow from segment revenue to net income