Pegasystems Q4 2023 Earnings Report
Key Takeaways
Pegasystems reported strong Q4 2023 results, with cash flow from operations and free cash flow exceeding $200 million for the first time. The company achieved double-digit ACV growth and a Pega Cloud gross margin of 74% for the year.
Cash flow from operations and free cash flow both exceeded $200 million for the first time in company history.
Annual contract value (ACV) grew 11% year over year.
Pega Cloud gross margin jumped to 74% for 2023.
The company hit its Rule of 30 target and is on track to achieve the Rule of 40 as it exits 2024.
Pegasystems
Pegasystems
Pegasystems Revenue by Segment
Forward Guidance
Pegasystems provided guidance for 2024, including annual contract value growth of 11%, revenue of $1.5 billion, and diluted earnings per share of $1.18 (GAAP) and $2.75 (Non-GAAP). They anticipate cash provided by operating activities to be $365 million and free cash flow to be $350 million.
Positive Outlook
- Annual contract value growth of 11%
- Revenue of $1.5 billion
- Diluted earnings per share of $1.18 (GAAP)
- Diluted earnings per share of $2.75 (Non-GAAP)
- Free cash flow of $350 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income