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Dec 31, 2022

Pegasystems Q4 2022 Earnings Report

Pegasystems' Q4 2022 financial results were released, highlighting improved profitability and surpassing $1 billion in subscription revenue.

Key Takeaways

Pegasystems reported a strong finish to 2022, with total revenue of $396.47 million, a 25% increase year-over-year. The company's net income (GAAP) was $34.61 million, a significant improvement compared to the $(37.246) million loss in the same period last year. Non-GAAP net income was $68.341 million, a substantial increase from $3.051 million in the prior year. The company's annual contract value (ACV) grew 16% year over year (constant currency) and Pega Cloud gross margin reached 70%.

Total revenue increased by 25% year-over-year, reaching $396.47 million.

Net income (GAAP) improved to $34.61 million, compared to a loss of $(37.246) million in the same period last year.

Non-GAAP net income saw a significant increase to $68.341 million.

Annual contract value (ACV) grew 16% year over year (constant currency).

Total Revenue
$396M
Previous year: $316M
+25.4%
EPS
$0.82
Previous year: $0.04
+1950.0%
Total ACV
$1.13B
Previous year: $1B
+12.6%
Gross Profit
$304M
Previous year: $231M
+31.7%
Cash and Equivalents
$145M
Previous year: $160M
-9.3%
Free Cash Flow
$22.7M
Previous year: $41.1M
-44.8%
Total Assets
$1.36B
Previous year: $1.59B
-14.8%

Pegasystems

Pegasystems

Pegasystems Revenue by Segment

Forward Guidance

Pegasystems provided guidance for the year ended December 31, 2023, with revenue expected to be $1.4 billion and free cash flow expected to be $150 million.

Positive Outlook

  • Annual contract value growth of 11% - 13%
  • Revenue of $1.4 billion
  • Diluted earnings per share of $0.02
  • Cash provided by operating activities of $139 million
  • Free cash flow of $150 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income