NASDAQ$PEGA

Pegasystems Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Pegasystems' Q3 2022 was its best quarter of the year, driven by prioritized go-to-market efforts promoting profitable growth.

Pegasystems reported a strong Q3 2022, with significant growth in key performance metrics despite foreign exchange headwinds. The company is making progress on improving operational discipline and driving profitable growth to achieve the Rule of 40 as they exit 2024.

  • Annual contract value (ACV) grew 16 percent in constant currency year over year.
  • Pega Cloud ACV grew 39 percent in constant currency year over year.
  • Total backlog grew 11 percent (18 percent in constant currency) year over year.
  • Q3 2022 was the best quarter of the year for Pega.

Headline financials

Total Revenue

$271M

Previous: $256M+5.6%
EPS (adj)

-$0.34

Previous: -$0.40+15.0%
Annual Contract Value

$16.00

Previous: $948M-100.0%
Capital Expenditures

-$22.3M

Previous: -$7.09M-214.4%
Free Cash Flow

-$116M

Previous: -$63.6M-82.2%
Net Income

-$93.5M

Previous: -$56.5M-65.6%
Operating Income

-$77.2M

Previous: -$65.3M-18.2%
Gross Profit

$178M

Previous: $172M+3.3%
Cash & Equivalents

$108M

Previous: $116M-7.5%
Total Assets

$1.17B

Previous: $1.56B-25.0%
Stock-Based Comp

$33.8M

Previous: $28.7M+17.7%

Revenue & EPS history

Pegasystems · Revenue · Quarterly

$271M

Q3 2022+5.6%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Pegasystems · $262M total across 4 segments · Q3 2022

  • Pega Cloud
    $97.4M+24.2%
  • Maintenance
    $77.5M-6.8%
  • Consulting
    $55.5M-1.6%
  • Subscription license
    $31.1M-84.2%

Forward guidance

The company is focused on profitable growth and achieving the Rule of 40 as they exit 2024.

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 Q3 2022

Historical avgQ3 2022

+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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