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Pegasystems Inc. (PEGA) 10-Year Financial Performance & Capital Metrics

PEGA • • Industrial / General
TechnologyApplication SoftwareArtificial Intelligence & AnalyticsAI Analytics Platforms
AboutPegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software applications in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. It provides Pega Platform, an application development product for clients; and Pega Infinity, a software platform that unifies customer engagement and digital process automation. The company also offers customer engagement applications, including Pega Customer Decision Hub that enable enterprises to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega Sales Automation to automate and manage the sales process; and Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity. In addition, it provides intelligent automation software; Pega Cloud that allows clients to develop, test, and deploy applications and the Pega Platform using an Internet-based infrastructure; Pega Academy, which offers instructor-led and online training to its employees, clients, and partners; and guidance, implementation, and technical support services. The company primarily markets its software and services to financial services, life sciences, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer services markets through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.Show more
  • Revenue $1.5B +4.5%
  • EBITDA $159M +37.8%
  • Net Income $99M +46.3%
  • EPS (Diluted) 0.55 +37.7%
  • Gross Margin 73.91% +0.4%
  • EBITDA Margin 10.64% +31.9%
  • Operating Margin 8.27% +46.4%
  • Net Margin 6.63% +40.0%
  • ROE 21.12% -24.5%
  • ROIC 12.36% +40.4%
  • Debt/Equity 0.94 -42.9%
  • Interest Coverage 18.12 +53.9%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓FCF machine: 22.6% free cash flow margin
  • ✓High quality earnings: Operating CF exceeds net income
  • ✓Strong 5Y sales CAGR of 10.4%

✗Weaknesses

  • ✗Expensive at 17.6x book value

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y9.76%
5Y10.44%
3Y7.31%
TTM17%

Profit (Net Income) CAGR

10Y11.55%
5Y-
3Y-
TTM126.41%

EPS CAGR

10Y10.11%
5Y-
3Y-
TTM116.31%

ROCE

10Y Avg1.95%
5Y Avg-2.32%
3Y Avg4.41%
Latest15.33%

Peer Comparison

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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
LYFTLyft, Inc.7.69B19.25349.3631.39%2.4%26.3%9.97%1.64
DDOGDatadog, Inc.40.84B125.50246.0826.12%3.32%3.1%2.05%0.68
MNDYmonday.com Ltd.7.18B139.22224.5533.21%5.58%5.13%4.12%0.10
PEGAPegasystems Inc.9.77B57.54104.624.51%16.05%46.57%3.46%0.94
SAPSAP SE287.77B247.1093.259.51%19.41%13.94%1.54%0.23
TYLTyler Technologies, Inc.19.07B443.1473.259.53%13.72%8.75%3.17%0.19
FICOFair Isaac Corporation38.48B1623.1861.1615.91%32.75%2%
DSGXThe Descartes Systems Group Inc.7.56B87.9353.6213.63%22.1%10%2.81%0.01

Profit & Loss

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Sales/Revenue+682.7M750.27M840.58M891.58M911.38M1.02B1.21B1.32B1.43B1.5B
Revenue Growth %0.16%0.1%0.12%0.06%0.02%0.12%0.19%0.09%0.09%0.05%
Cost of Goods Sold+213.45M239.26M279.67M301.76M310.02M310.91M336.36M368.63M378.48M390.67M
COGS % of Revenue0.31%0.32%0.33%0.34%0.34%0.31%0.28%0.28%0.26%0.26%
Gross Profit+469.25M522.97M608.79M589.82M601.36M706.6M875.29M949.21M1.05B1.11B
Gross Margin %0.69%0.7%0.72%0.66%0.66%0.69%0.72%0.72%0.74%0.74%
Gross Profit Growth %0.16%0.11%0.16%-0.03%0.02%0.18%0.24%0.08%0.11%0.05%
Operating Expenses+404.59M472.33M515.62M606.85M736.24M850.13M970.02M1.06B973.18M982.63M
OpEx % of Revenue0.59%0.63%0.61%0.68%0.81%0.84%0.8%0.8%0.68%0.66%
Selling, General & Admin278.13M323.88M352.73M425.14M531.03M613.14M709.39M742.52M655.92M647.63M
SG&A % of Revenue0.41%0.43%0.42%0.48%0.58%0.6%0.59%0.56%0.46%0.43%
Research & Development126.37M145.55M162.89M181.71M205.21M236.99M260.63M294.35M295.51M298.07M
R&D % of Revenue0.19%0.19%0.19%0.2%0.23%0.23%0.22%0.22%0.21%0.2%
Other Operating Expenses89K2.9M0000021.74M21.75M36.93M
Operating Income+64.66M50.64M93.18M-17.03M-134.88M-143.53M-94.73M-109.41M80.95M123.88M
Operating Margin %0.09%0.07%0.11%-0.02%-0.15%-0.14%-0.08%-0.08%0.06%0.08%
Operating Income Growth %0.25%-0.22%0.84%-1.18%-6.92%-0.06%0.34%-0.15%1.74%0.53%
EBITDA+87.75M74.78M117.89M8.26M-113.48M-122.18M-66.14M-74.69M115.61M159.31M
EBITDA Margin %0.13%0.1%0.14%0.01%-0.12%-0.12%-0.05%-0.06%0.08%0.11%
EBITDA Growth %0.17%-0.15%0.58%-0.93%-14.73%-0.08%0.46%-0.13%2.55%0.38%
D&A (Non-Cash Add-back)23.09M24.14M24.71M25.3M21.4M21.35M28.59M34.72M34.66M35.43M
EBIT64.75M53.55M93.18M-11.53M-134.63M-105.53M-124.03M-154M102.32M149.47M
Net Interest Income+1.06M911K862K2.71M1.81M-18.13M-7.25M-6.15M2.38M18.94M
Interest Income1.06M911K862K2.71M1.81M1.22M704K1.64M9.26M25.78M
Interest Expense0000019.36M7.96M7.79M6.88M6.83M
Other Income/Expense-4.16M-2.56M-6.94M5.49M32K18.64M-37.26M-52.39M14.49M18.75M
Pretax Income+60.51M35.2M37.1M-11.54M-134.85M-124.89M-131.99M-161.8M95.44M142.64M
Pretax Margin %0.09%0.05%0.04%-0.01%-0.15%-0.12%-0.11%-0.12%0.07%0.1%
Income Tax+24.18M8.22M4.17M-22.16M-44.41M-63.52M-68.95M183.78M27.63M43.45M
Effective Tax Rate %0.6%0.77%0.89%-0.92%0.67%0.49%0.48%2.14%0.71%0.7%
Net Income+36.32M26.99M32.93M10.62M-90.43M-61.37M-63.04M-345.58M67.81M99.19M
Net Margin %0.05%0.04%0.04%0.01%-0.1%-0.06%-0.05%-0.26%0.05%0.07%
Net Income Growth %0.09%-0.26%0.22%-0.68%-9.52%0.32%-0.03%-4.48%1.2%0.46%
Net Income (Continuing)36.32M26.99M98.55M10.62M-90.43M-61.37M-63.04M-345.58M67.81M99.19M
Discontinued Operations0000000000
Minority Interest0000000000
EPS (Diluted)+0.230.170.590.06-0.57-0.38-0.39-2.110.400.55
EPS Growth %0.1%-0.26%2.5%-0.89%-9.95%0.33%-0.01%-4.44%1.19%0.38%
EPS (Basic)0.240.180.640.07-0.57-0.38-0.39-2.110.410.58
Diluted Shares Outstanding158.09M159.46M165.66M166.13M158.11M160.67M162.77M163.89M169.83M179.27M
Basic Shares Outstanding153.01M152.69M154.86M157.13M158.11M160.67M162.77M163.89M166.32M170.53M
Dividend Payout Ratio0.25%0.34%0.28%0.89%----0.15%0.1%

Balance Sheet

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Total Current Assets+458.87M398.79M472.08M610.63M505.61M976.91M840.22M846.48M1.03B1.33B
Cash & Short-Term Investments219.08M133.76M223.75M207.42M68.36M465.17M362.78M297.22M423.34M739.97M
Cash Only93.03M70.59M162.28M114.42M68.36M171.9M159.97M145.05M229.9M337.1M
Short-Term Investments126.05M63.17M61.47M93M0293.27M202.81M152.17M193.44M402.87M
Accounts Receivable216.62M279.18M382.82M353.53M379.94M438.28M421.96M511.77M562.47M552.9M
Days Sales Outstanding115.81135.82166.23144.73152.16157.22127.11141.74143.31134.79
Inventory0000000000
Days Inventory Outstanding----------
Other Current Assets10.79M12.19M41.13M49.68M57.31M73.46M55.48M37.49M9.57M2.68M
Total Non-Current Assets+168.89M255.87M249.53M371.92M479.2M627.35M753.31M511.19M481.71M434.57M
Property, Plant & Equipment31.32M38.28M40.36M36.63M34.28M108.05M114.36M131.17M111.48M104.23M
Fixed Asset Turnover21.80x19.60x20.83x24.34x26.58x9.42x10.60x10.05x12.85x14.36x
Goodwill46.78M73.16M72.95M72.86M79.04M79.23M81.92M81.4M81.61M81.11M
Intangible Assets33.42M44.19M31.9M21.23M19.72M15.75M14.06M10.89M7M3.83M
Long-Term Investments000000013.07M19.45M21.23M
Other Non-Current Assets4.03M3.99M162.71M241.19M346.16M336.26M362.31M269.87M258.49M219.89M
Total Assets+627.76M654.66M721.61M982.55M984.81M1.6B1.59B1.36B1.51B1.77B
Asset Turnover1.09x1.15x1.16x0.91x0.93x0.63x0.76x0.97x0.95x0.85x
Asset Growth %0.07%0.04%0.1%0.36%0%0.63%-0.01%-0.15%0.11%0.17%
Total Current Liabilities+267.19M284.05M313.21M331.81M377.95M460.13M485.4M538.94M577.06M1.09B
Accounts Payable12.68M14.41M17.37M16.49M17.48M24.03M15.28M18.2M11.29M6.23M
Days Payables Outstanding21.6721.9922.6719.9420.5728.2116.5818.0210.895.82
Short-Term Debt000000000467.47M
Deferred Revenue (Current)1000K1000K1000K1000K1000K1000K1000K1000K1000K1000K
Other Current Liabilities62.08M60.66M66.04M87.03M122.4M123.01M120.95M127.73M134.95M144.61M
Current Ratio1.72x1.40x1.51x1.84x1.34x2.12x1.73x1.57x1.78x1.23x
Quick Ratio1.72x1.40x1.51x1.84x1.34x2.12x1.73x1.57x1.78x1.23x
Cash Conversion Cycle----------
Total Non-Current Liabilities+37.71M34.72M37.32M29.21M67.85M601.96M692.04M687.89M579.84M96.73M
Long-Term Debt00000518.2M590.72M593.61M499.37M0
Capital Lease Obligations000052.61M59.05M87.82M79.15M66.9M67.65M
Deferred Tax Liabilities0038.46M6.94M000000
Other Non-Current Liabilities21.91M20.31M17.06M22.27M15.24M15.71M7.84M11.58M11.09M26.97M
Total Liabilities304.9M318.77M350.53M361.02M445.8M1.06B1.18B1.23B1.16B1.18B
Total Debt+000052.61M595.8M685.53M687.74M581.27M549.67M
Net Debt-93.03M-70.59M-162.28M-114.42M-15.75M423.9M525.56M542.68M351.37M212.56M
Debt / Equity----0.10x1.10x1.65x5.26x1.64x0.94x
Debt / EBITDA--------5.03x3.45x
Net Debt / EBITDA-1.06x-0.94x-1.38x-13.85x----3.04x1.33x
Interest Coverage------7.42x-11.91x-14.04x11.77x18.12x
Total Equity+322.86M335.89M371.08M621.53M539.01M542.17M416.09M130.84M353.84M585.48M
Equity Growth %0.1%0.04%0.1%0.67%-0.13%0.01%-0.23%-0.69%1.7%0.65%
Book Value per Share2.042.112.243.743.413.372.560.802.083.27
Total Shareholders' Equity322.86M335.89M371.08M621.53M539.01M542.17M416.09M130.84M353.84M585.48M
Common Stock765K766K781K785K796K809K817K824K838K861K
Retained Earnings180.18M198.31M221.93M510.86M410.92M339.88M276.45M-76.51M-8.71M87.9M
Treasury Stock0000000000
Accumulated OCI-3.51M-7.09M-3.73M-13.32M-13.23M-2.95M-6.99M-23.07M-17.88M-30.25M
Minority Interest0000000000

Cash Flow

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Cash from Operations+62.53M39.87M158.24M104.36M-42.16M-563K39.12M22.34M217.78M345.93M
Operating CF Margin %0.09%0.05%0.19%0.12%-0.05%-0%0.03%0.02%0.15%0.23%
Operating CF Growth %-0.37%-0.36%2.97%-0.34%-1.4%0.99%70.48%-0.43%8.75%0.59%
Net Income36.32M26.99M32.93M10.62M-90.43M-61.37M-63.04M-345.58M67.81M99.19M
Depreciation & Amortization23.09M22.37M39.41M25.3M21.4M21.35M28.59M34.72M18.75M79.85M
Stock-Based Compensation30.05M40.82M53.31M63.86M80.91M103.07M115.95M122.21M143.35M142.72M
Deferred Taxes-2.1M-5.81M13.79M-30.9M-49.32M-59.78M-75.34M168.89M363K-1.54M
Other Non-Cash Items1.95M142.53M-13.79M14.77M46.26M29.16M92.49M106.45M65.52M6.55M
Working Capital Changes-26.8M-44.49M32.58M20.71M-50.98M-32.98M-59.53M-64.35M-78.01M19.16M
Change in Receivables-62.23M-56.73M23.81M25.78M1.09M-32.32M-11.96M-51.16M-57.6M79.03M
Change in Inventory3.22M-10.82M000-5.62M00-66K0
Change in Payables16.57M1.53M14.47M20.8M037.95M0066K0
Cash from Investing+-44.45M-7.17M-14.76M-48.2M70.07M-321.68M72.5M13.07M-50.75M-202.58M
Capital Expenditures-11.02M-19.09M-13.74M-11.89M-10.61M-25.37M-10.46M-35.38M-16.78M-7.71M
CapEx % of Revenue0.02%0.03%0.02%0.01%0.01%0.02%0.01%0.03%0.01%0.01%
Acquisitions----------
Investments----------
Other Investing-31.76M61.03M-721K-35.5M0-296.31M0000
Cash from Financing+-35.38M-51.72M-54.23M-101.46M-74.26M423.45M-121.84M-46.99M-81.96M-30.21M
Debt Issued (Net)----------
Equity Issued (Net)----------
Dividends Paid-9.19M-9.17M-9.28M-9.43M-9.49M-9.63M-9.76M-9.83M-9.96M-10.2M
Share Repurchases----------
Other Financing5.28M0002.2M-63.39M10.55M9.17M18.91M87.37M
Net Change in Cash----------
Free Cash Flow+51.51M20.79M144.49M92.46M-52.77M-25.93M28.66M-13.04M201M338.21M
FCF Margin %0.08%0.03%0.17%0.1%-0.06%-0.03%0.02%-0.01%0.14%0.23%
FCF Growth %-0.42%-0.6%5.95%-0.36%-1.57%0.51%2.11%-1.46%16.41%0.68%
FCF per Share0.330.130.870.56-0.33-0.160.18-0.081.181.89
FCF Conversion (FCF/Net Income)1.72x1.48x4.80x9.83x0.47x0.01x-0.62x-0.06x3.21x3.49x
Interest Paid000002.34M4.5M4.5M4.13M3.81M
Taxes Paid30.21M28.84M2.32M6.63M4.75M3.38M07.64M11.66M82.32M

Key Ratios

Metric2015201620172018201920202021202220232024
Return on Equity (ROE)11.76%8.19%9.32%2.14%-15.58%-11.35%-13.16%-126.37%27.98%21.12%
Return on Invested Capital (ROIC)23.66%15.34%29.48%-3.57%-19.64%-14.46%-7.45%-10.16%8.81%12.36%
Gross Margin68.73%69.7%72.43%66.15%65.98%69.44%72.24%72.03%73.58%73.91%
Net Margin5.32%3.6%3.92%1.19%-9.92%-6.03%-5.2%-26.22%4.73%6.63%
Debt / Equity----0.10x1.10x1.65x5.26x1.64x0.94x
Interest Coverage------7.42x-11.91x-14.04x11.77x18.12x
FCF Conversion1.72x1.48x4.80x9.83x0.47x0.01x-0.62x-0.06x3.21x3.49x
Revenue Growth15.71%9.9%12.04%6.07%2.22%11.65%19.08%8.76%8.71%4.51%

Revenue by Segment

2015201620172018201920202021202220232024
Pega Cloud------731.56M885.69M960.26M1.13B
Pega Cloud Growth-------21.07%8.42%17.38%
Subscription License------172.16M366.06M407.63M398.1M
Subscription License Growth-------112.64%11.35%-2.34%
Maintenance---207.91M268.29M329.92M367.01M350.63M374.55M340.86M
Maintenance Growth----29.04%22.97%11.24%-4.46%6.82%-9.00%
Consulting---21.19M24.36M21.61M56.46M230.65M221.71M213.27M
Consulting Growth----14.95%-11.29%161.24%308.53%-3.88%-3.80%
Perpetual License------17.71M19.29M10.1M3.77M
Perpetual License Growth-------8.94%-47.64%-62.71%
Subscription---524.76M613.76M771.33M957.47M---
Subscription Growth----16.96%25.67%24.13%---
Subscription Services------621.22M---
Subscription Services Growth----------
Cloud---298.82M422.17M590.14M----
Cloud Growth----41.28%39.79%----
License, Term---84.38M116.83M118.81M----
License, Term Growth----38.46%1.70%----
License, Perpetual---18.67M4.48M11.91M----
License, Perpetual Growth-----75.98%165.59%----
Technology Service---339.59M------
Technology Service Growth----------
License---288.12M------
License Growth----------

Revenue by Geography

2015201620172018201920202021202220232024
UNITED STATES379.94M430.56M474.82M469.99M525.19M613.84M690.13M763.56M785.03M828.33M
UNITED STATES Growth-13.32%10.28%-1.02%11.75%16.88%12.43%10.64%2.81%5.52%
EMEA---147.25M137.95M156.06M198.08M194.56M242.3M249.32M
EMEA Growth-----6.32%13.13%26.93%-1.78%24.54%2.90%
Asia Pacific61.31M66.27M104.57M125.48M100.33M106.66M144.52M140.95M162.12M166M
Asia Pacific Growth-8.09%57.79%20.00%-20.04%6.31%35.50%-2.47%15.02%2.39%
Other Americas57.89M59.16M39.49M53.24M60.54M49.44M61.34M102.98M85.15M95.7M
Other Americas Growth-2.19%-33.25%34.82%13.71%-18.33%24.07%67.89%-17.32%12.39%
Other EMEA87.24M92.54M130.89M-------
Other EMEA Growth-6.08%41.44%-------

Frequently Asked Questions

Valuation & Price

Pegasystems Inc. (PEGA) has a price-to-earnings (P/E) ratio of 104.6x. This suggests investors expect higher future growth.

Growth & Financials

Pegasystems Inc. (PEGA) reported $1.73B in revenue for fiscal year 2024. This represents a 316% increase from $416.7M in 2011.

Pegasystems Inc. (PEGA) grew revenue by 4.5% over the past year. Growth has been modest.

Yes, Pegasystems Inc. (PEGA) is profitable, generating $278.0M in net income for fiscal year 2024 (6.6% net margin).

Dividend & Returns

Pegasystems Inc. (PEGA) does not currently pay a meaningful dividend. The company may be reinvesting profits for growth.

Pegasystems Inc. (PEGA) has a return on equity (ROE) of 21.1%. This is excellent, indicating efficient use of shareholder capital.

Pegasystems Inc. (PEGA) generated $439.2M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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