Business
Pega Delivers Record Cash Flow in the First Half of 2023
Operating cash flow exceeds $110 million (Free Cash Flow exceeds $120 million)Annual contract value (ACV) grows 13% year over yearPega Cloud gross margin
About this update from Pegasystems Inc.
[{"type":"text","content":"Operating cash flow exceeds $110 million (Free Cash Flow exceeds $120 million)Annual contract value (ACV) grows 13% year over yearPega Cloud gross margin expands to 73%CAMBRIDGE, Mass., July 26, 2023 /PRNewswire/ -- Pegasystems Inc., the low-code platform provider empowering the world's leading enterprises to Build for Change®, released its financial results for the second quarter of 2023.\n\n \n \n \n \n \n \n\n \n\"In this uncertain and changing environment, focusing on client success is more important than ever,\" said Alan Trefler, founder and CEO. \"Our low-code platform for AI-powered decisioning and workflow automation uniquely empowers clients to embrace emerging trends like generative AI and, at the same time, reduce costs and improve customer engagement.\"\n\"Achieving record cash flow in the first half of 2023 reflects solid execution by our team to better balance growth and free cash flow,\" said Ken Stillwell, COO & CFO. \"This significant shift in cash flow generation is a benefit of our successful move to a subscription model. In the second half of 2023, we will be looking to further increase operating effectiveness with additional improvements in our go-to-market alignment.\"\nFinancial and performance metrics (1)\nReconciliation of ACV and Constant Currency ACV\n(in millions, except percentages)\nQ2 22\nQ3 22\nQ4 22\nQ1 23\nQ2 23\n1 Year Change\nACV\n$ 1,026\n$ 1,040\n$ 1,126\n$ 1,174\n$ 1,164\n13 %\nImpact of changes in foreign exchange rates\n$ —\n$ 24\n$ (1)\n$ (5)\n$ (5)\nConstant Currency ACV\n$ 1,026\n$ 1,064\n$ 1,125\n$ 1,169\n$ 1,159\n13 %\n \nNote: Constant currency ACV and Backlog are calculated by applying the Q2 2022 foreign exchange rates to all periods shown.\n(Dollars in thousands,\nexcept per share amounts)\nThree Months Ended\nJune 30,\nSix Months Ended\nJune 30,\n2023\n2022\nChange\n2023\n2022\nChange\nTotal revenue\n$ 298,268\n$ 274,337\n9 %\n$ 623,740\n$ 650,644\n(4) %\nNet (loss) - GAAP\n$ (46,804)\n$ (286,296)\n84 %\n$ (67,578)\n$ (286,675)\n76 %\nNet income (loss) - non-GAAP\n$ 1,203\n$ (31,406)\n*\n$ 20,423\n$ 18,768\n9 %\nDiluted (loss) per share - GAAP\n$ (0.56)\n$ (3.50)\n84 %\n$ (0.82)\n$ (3.51)\n77 %\nDiluted earnings (loss) per share - non-GAAP\n$ 0.01\n$ (0.38)\n*\n$ 0.24\n$ 0.22\n9 %\n* not meaningful\n \n(Dollars in thousands)\nThree Months Ended\nJune 30,\nChange\nSix Months End...