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Dec 31, 2024
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.
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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