NASDAQ$PEGA

Pegasystems Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Pegasystems' Q1 2023 results were driven by a focus on client success.

Pegasystems reported a decrease in total revenue and GAAP net loss for Q1 2023, but highlighted ACV growth and strong cash generation. The company's focus on client engagement and profitable growth contributed to the results.

  • Annual contract value (ACV) grew 15% year over year (constant currency).
  • Focus on profitable growth led to significant cash generation.
  • Pega Cloud gross margin reached 72%.
  • The team delivered well on ACV growth, free cash flow, and backlog.

Headline financials

Total Revenue

$325M

Previous: $376M-13.5%
EPS (adj)

$0.23

Previous: $0.59-61.0%
Annual Contract Value

$1.17B

Previous: $1.03B+13.5%
Capital Expenditures

-$11.5M

Previous: -$6.66M-72.6%
Free Cash Flow

-$32.3M

Previous: -$7.04M-358.5%
Net Income

-$20.8M

Previous: -$379K-5381.3%
Operating Income

-$22.2M

Previous: $18.6M-219.3%
Gross Profit

$228M

Previous: $288M-21.0%
Cash & Equivalents

$168M

Previous: $133M+26.8%
Total Assets

$1.28B

Previous: $1.54B-16.7%
Stock-Based Comp

$42.6M

No prior period

Revenue & EPS history

Pegasystems · Revenue · Quarterly

$325M

Q1 2023-13.5%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Pegasystems · $325M total across 4 segments · Q1 2023

  • Pega Cloud
    $108M+19.4%
  • Subscription license
    $84.5M-38.5%
  • Maintenance
    $79.6M-0.1%
  • Consulting
    $53M-13.5%

Forward guidance

The press release does not contain specific forward guidance. It mentions the company's progress against its 2023 goals and excitement about becoming a Rule of 40 company.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+3.5%

Avg return

Earnings day

+3.3%

Avg return

5 days after

+2.8%

Avg return

30 days after

59%

39 / 66 earnings

Positive

+42.2%

Q4 2023

Best reaction

-28.0%

Q3 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%-6.4%-12.6%
Q4 2025-11.9%+1.9%-1.3%
Q3 2025+15.0%+16.8%-4.6%
Q2 2025+1.4%-0.2%+11.8%
Q1 2025+28.8%+32.5%+39.7%
Q4 2024-19.6%-18.9%-32.1%
Q3 2024+13.4%+13.9%+29.8%
Q2 2024+9.7%+4.9%+11.7%
Q1 2024-0.4%+2.6%+1.1%
Q4 2023+42.2%+34.1%+28.3%
Q3 2023+4.7%+7.3%+34.0%
Q2 2023-9.7%-3.3%-12.0%
Q1 2023+3.7%+6.2%+7.9%
Q4 2022+27.3%+21.7%+18.3%
Q3 2022+9.5%+11.7%+12.3%
Q2 2022-13.2%-12.8%-21.8%
Q1 2022+11.5%+6.1%-26.5%
Q4 2021-18.5%-18.4%-21.2%
Q3 2021-7.5%-6.4%-10.2%
Q2 2021-5.0%-5.2%+3.0%
Q1 2021-1.8%-4.1%-8.6%
Q4 2020-2.0%+0.4%-20.2%
Q3 2020-4.2%-8.5%+6.7%
Q2 2020+9.7%+11.9%+22.5%
Q1 2020+7.7%+4.9%+22.5%
Q4 2019+9.7%+11.1%-15.8%
Q3 2019-4.9%-3.5%+1.8%
Q2 2019+4.9%+2.0%+3.3%
Q1 2019-6.0%-5.8%-5.3%
Q4 2018+9.5%+11.4%+9.3%
Q3 2018+4.4%-3.9%-6.2%
Q2 2018+1.5%+2.3%+9.2%
Q1 2018+2.2%-3.1%-1.9%
Q4 2017+11.6%+6.7%+9.7%
Q3 2017-7.7%-7.3%-11.7%
Q2 2017-10.2%-3.0%-3.9%
Q1 2017+13.9%+24.1%+32.9%
Q4 2016+4.7%+4.1%+1.3%
Q3 2016+10.1%+8.8%+15.2%
Q2 2016-4.7%-5.1%-3.6%
Q1 2016-2.1%
Q4 2015+8.4%
Q3 2015+7.9%
Q2 2015+13.4%
Q1 2015+2.1%
Q4 2014-14.0%
Q3 2014-11.0%
Q2 2014+9.7%
Q1 2014+10.9%
Q4 2013-11.7%
Q3 2013+26.6%
Q2 2013+4.8%
Q1 2013+5.3%
Q4 2012+7.9%
Q3 2012-0.2%
Q2 2012+0.4%
Q1 2011-12.1%
Q1 2012-3.3%
Q4 2011+29.7%
Q4 2009+29.7%
Q3 2011-28.0%
Q3 2010-28.0%
Q4 2010+22.2%
Q2 2010+22.2%
Q2 2011+22.2%
Q1 2010-10.8%

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