Pegasystems Inc.


SKU: PEGA-1 Category:


Pegasystems delivered disappointing results as the company could not meet Wall Street’s revenue and earnings expectations. The increase in ACV continues to be the most crucial indicator of Pegasystems’ performance. By 2023’s halfway point, ACV had increased 13% year over year. The Pega Cloud ACV’s continuing growth, which surpassed $499 million at the end of the second quarter, was the primary factor in its ACV increase. Pega achieved a remarkable feat in the first half of 2023 by producing $114 million in cash flow from operations and $123 million in free cash flow. The free cash flow dollars produced in the first half of the year was $123 million. Strong free cash flow generation enables Pega to invest in its operations, deliver exceptional customer service, and maintain financial stability in the face of various economic uncertainties. Pega Cloud revenue is currently $423 million on a trailing 12-month basis, up from around $50 million just a few years ago. Pega Cloud’s gross margin increased from 68% to 73% year on year in the first half of 2023. The company anticipates boosting Pega Cloud gross margins by scaling Pega Cloud, increasing automation, and deploying multi-tenancy in Kubernetes.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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