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Dec 31, 2021

Pegasystems Q4 2021 Earnings Report

Pegasystems reported strong growth driven by demand for digital transformation projects.

Key Takeaways

Pegasystems' Q4 2021 results showed strong growth with ACV exceeding $1 billion. The company is focused on becoming the enterprise standard workflow engine.

Annual contract value exceeded $1 billion.

ACV grew 20 percent year over year.

Total Backlog was up 25 percent year over year to $1.3 billion.

2022 Revenue Guidance of $1.46 billion - $1.49 billion

Total Revenue
$316M
Previous year: $299M
+5.9%
EPS
$0.04
Previous year: $0.18
-77.8%
Total ACV
$1B
Previous year: $835M
+20.0%
Gross Profit
$231M
Previous year: $222M
+4.2%
Cash and Equivalents
$160M
Previous year: $172M
-6.9%
Free Cash Flow
$41.1M
Previous year: $22.1M
+85.6%
Total Assets
$1.59B
Previous year: $1.6B
-0.7%

Pegasystems

Pegasystems

Pegasystems Revenue by Segment

Forward Guidance

Pegasystems provided 2022 revenue guidance of $1.46 billion - $1.49 billion.

Positive Outlook

  • Annual contract value growth 20 - 22%
  • Revenue $1.46 - $1.49 billion
  • Net income (loss) $(71.7) - $(50.4) million
  • Diluted earnings (loss) per share $(0.89) - $(0.62)
  • Net Income (Non-GAAP) $64.7 - $86.0

Challenges Ahead

  • Net loss (GAAP) $(71.7) - $(50.4) million
  • Diluted earnings (loss) per share - GAAP $(0.89) - $(0.62)
  • Stock-based compensation 146.2
  • Litigation 24.0
  • Convertible senior notes 2.7

Revenue & Expenses

Visualization of income flow from segment revenue to net income