Pegasystems Inc (PEGA) 10-Q Quarterly Report November 2019

CAMBRIDGE, Mass. — August 7, 2019 — Pegasystems Inc. (NASDAQ: PEGA), the software company empowering digital transformation at the world’s leading enterprises, released its financial results for the second quarter of 2019.

"At mid-year, I’m excited with the strong progress we’re making in our business and in our transition to cloud,” said Alan Trefler, founder and CEO, Pegasystems. “I’m pleased with how our strategy is working, and we continue to gain traction in seizing the huge opportunity in front of us."

“Pega Cloud ACV increased 65% year over year, reaching $136 million,” said Ken Stillwell, CFO, Pegasystems. “This strong ACV growth reflects solid demand worldwide for digital transformation solutions.”

Financial metrics ⁽¹⁾



(Dollars in thousands, except per share amounts)	Three Months Ended June 30,								Six Months Ended June 30,
(Dollars in thousands, except per share amounts)	2019			2018			Change		2019			2018		Change
Total revenue	$	205,592		$	196,779		4	%	$	418,138		$	431,961	(3	)%
Subscription revenue ⁽²⁾	$	125,982		$	117,416		7	%	$	269,760		$	262,218	3	%
Net (loss) income - GAAP	$	(32,296	)	$	(10,409	)	(210	)%	$	(61,013	)	$	1,791	*
Net (loss) income - Non-GAAP	$	(23,427	)	$	(2,732	)	(758	)%	$	(32,803	)	$	17,525	*
Diluted (loss) earnings per share - GAAP	$	(0.41	)	$	(0.13	)	(215	)%	$	(0.77	)	$	0.02	*
Diluted (loss) earnings per share - Non-GAAP	$	(0.30	)	$	(0.03	)	(900	)%	$	(0.42	)	$	0.21	*

* not meaningful

⁽¹⁾ A reconciliation of the GAAP measures to our Non-GAAP measures is contained in the financial schedules at the end of this release.

⁽²⁾Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal.



(Dollars in thousands)	Three Months Ended June 30,													Six Months Ended June 30,
(Dollars in thousands)	2019				2018				Change					2019				2018				Change
Cloud	$	31,699	15	%	$	20,201	10	%	$	11,498		57	%	$	59,457	14	%	$	35,783	8	%	$	23,674		66	%
Term license	24,954		12	%	31,309		16	%	(6,355		)	(20	)%	73,268		18	%	96,004		22	%	(22,736		)	(24	)%
Maintenance	69,329		34	%	65,906		34	%	3,423			5	%	137,035		33	%	130,431		31	%	6,604			5	%
Subscription	125,982		61	%	117,416		60	%	8,566			7	%	269,760		65	%	262,218		61	%	7,542			3	%
Perpetual license	19,320		9	%	13,475		7	%	5,845			43	%	34,270		8	%	36,553		8	%	(2,283		)	(6	)%
Consulting	60,290		30	%	65,888		33	%	(5,598		)	(8	)%	114,108		27	%	133,190		31	%	(19,082		)	(14	)%
Total revenue	$	205,592	100	%	$	196,779	100	%	$	8,813		4	%	$	418,138	100	%	$	431,961	100	%	$	(13,823	)	(3	)%

The following information was filed by Pegasystems Inc (PEGA) on Wednesday, August 7, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

Please wait while we load the requested 10-Q report or click the link below:

https://last10k.com/sec-filings/report/1013857/000101385719000033/q3201910q.htm

View differences made from one quarter to another to evaluate Pegasystems Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) — *Sample 10-K Year-over-Year (YoY) Comparison*

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were ~~removed~~ , added and changed by Pegasystems Inc.

Continue

Assess how Pegasystems Inc's management team is paid from their Annual Proxy

Pegasystems Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2019 10-K Annual Report includes:

Voting Procedures
Board Members
Executive Team
Salaries, Bonuses, Perks
Peers / Competitors

Continue

Rating
Learn More

Filter Sentiment:

All

Positive

Negative

Filter Category:

All

Financial

Revenue

M & A

Other

Filter Subcategory:

All

Earnings

Product

Geography

Cash Flow

Income

Other

Inside Pegasystems Inc's 10-Q Quarterly Report:

Financial - Earnings Highlight
The decrease in total gross profit percent in the nine months ended September 30, 2019 was driven by the shift in client preferences in favor of cloud arrangements, which are lower margin than our term and perpetual license revenue streams and decreases in cloud and consulting gross profit percent.

Revenue - Product Highlight
Revenue from cloud arrangements is generally recognized over the service period, while revenue from term and perpetual license arrangements is generally recognized upfront when the license rights become effective.
Revenue - Product Highlight
Revenue from cloud arrangements is generally recognized over the service period, while revenue from term and perpetual license arrangements is generally recognized upfront when the license rights become effective.
Financial - Earnings Highlight
The decrease in total gross profit in the nine months ended September 30, 2019 was primarily due to a decrease in term and perpetual license revenue and a decrease in consulting revenue due to a decrease in billable hours.
Revenue - Geography Highlight
Important factors that could cause actual future activities and results to differ materially from those expressed in such forward-looking statements include, among others, variation in demand for our products and services, reliance on third-party relationships, reliance on key personnel, the inherent risks associated with international operations and the continued uncertainties in the global economy, our continued effort to market and sell both domestically and internationally, foreign currency exchange rates, the potential legal and financial liabilities and reputation damage due to cyber-attacks and security breaches, and management of our growth.
Financial - Earnings
The increase in total gross...Read more
Financial - Cash Flow
As client preferences continue to...Read more
Financial - Shares
The increases in the three...Read more
Revenue - Product
Table of Contents * not...Read more
Revenue - Product
The increase in term license...Read more
Other - Other
Cash from cloud arrangements is...Read more
Revenue - Product
It was also due to...Read more
Revenue - Product
The increases in maintenance revenue...Read more
Financial - Shares
Table of Contents The increases...Read more
Financial - Income
During the nine months ended...Read more
Revenue - Product
The decreases in consulting revenue...Read more
Financial - Cash Flow
We believe that our current...Read more
Revenue - Product
Subscription revenue The increases in...Read more
Other - Other
Our cloud-architected portfolio of customer...Read more
Revenue - Product
The primary driver of the...Read more
Revenue - Product
The increase in headcount reflects...Read more
Other - Other
On March 15, 2019, we...Read more
M & A - Other
The change in cash provided...Read more
Other - Other
Table of Contents Common stock...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Pegasystems Inc provided additional information to their SEC Filing as exhibits

Exhibit 10.1: Material Contract

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32: Section 1350 Certification

Ticker: PEGA
CIK: 1013857
Form Type: 10-Q Quarterly Report
Accession Number: 0001013857-19-000033
Submitted to the SEC: Thu Nov 07 2019 11:11:04 AM EST
Accepted by the SEC: Thu Nov 07 2019
Period: Monday, September 30, 2019
Industry: Computer Processing And Data Preparation