Pegasystems Q4 2024 Earnings Report

Key Takeaways

Pegasystems reported a 3% YoY revenue increase in Q4 2024, driven by strong growth in Pega Cloud ACV. However, GAAP net income declined by 17% due to higher expenses, though free cash flow reached a record high.

Total Revenue

$491M

Previous year: $474M

+3.5%

EPS

$1.61

Previous year: $1.77

-9.0%

Annual Contract Value

$1.37B

Previous year: $1.26B

+9.3%

Gross Profit

$388M

Previous year: $383M

+1.4%

Cash and Equivalents

$337M

Previous year: $423M

-20.4%

Free Cash Flow

$338M

Previous year: $77.4M

+337.2%

Total Assets

$1.77B

Previous year: $1.51B

+17.0%

Pegasystems Revenue

Pegasystems EPS

Pegasystems Revenue by Segment

Forward Guidance

Pegasystems expects continued growth in ACV and free cash flow in 2025, driven by strong demand for AI-powered solutions and Pega Cloud.

Positive Outlook

Projected 12% ACV growth in 2025.
Revenue guidance of $1.6 billion for 2025.
Expected free cash flow of $440 million.
Strong momentum in Pega Cloud services.
Focus on AI innovation to drive further growth.

Challenges Ahead

Declining subscription license revenue.
Ongoing litigation costs may impact profitability.
Macroeconomic uncertainty could affect demand.
Increased operating expenses impacting margins.
Potential foreign exchange rate fluctuations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income