Business
Pega GenAI Excitement Accelerates Growth in Q2 2024
Annual contract value (ACV) grows 13% year over year in constant currency Cash flow from operations reaches $220 million and free cash flow hits $218 million
About this update from Pegasystems Inc.
[{"type":"text","content":"\n\nAnnual contract value (ACV) grows 13% year over year in constant currency\n\n\n\nCash flow from operations reaches $220 million and free cash flow hits $218 million in the first half of 2024\n\n\n\nPega Cloud backlog exceeds $1 billion for the first time\n\n\n\n CAMBRIDGE, Mass.--(BUSINESS WIRE)--\nPegasystems Inc. (NASDAQ: PEGA), the leading enterprise AI decisioning and workflow automation platform provider, released its financial results for the second quarter of 2024.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240724234135/en/ACV Growth (Graphic: Business Wire)\n“Our approach to statistical AI and generative AI continues to be a significant differentiator,” said Alan Trefler, founder and CEO. “The offerings we’ve introduced, especially Pega GenAI Blueprint™, have captured the imagination of clients, prospects, and partners, allowing them to identify new possibilities and helping us drive deeper engagement. With tens of thousands of blueprints created over the last few months, we’re identifying opportunities to accelerate growth and creating additional momentum for Pega Cloud®.”\n\n\n\"I'm really proud to see how our team is improving profitability while driving ACV growth,” said Ken Stillwell, COO and CFO. “Our strong execution and our AI innovation put us in a fantastic position to pursue the massive digital transformation opportunity in front of us.”\n\n\nFinancial and performance metrics (1)\n\n\nReconciliation of ACV and Constant Currency ACV\n\n\n\n\n(in millions, except percentages)\n\n\n\n\n\n\nJune 30, 2023\n\n\n\n\n\n\n \n\n\n\n\n\n\nJune 30, 2024\n\n\n\n\n\n\n \n\n\n\n\n\n\n1-Year Change\n\n\n\n\n\n\n\n\nACV\n\n\n\n\n\n\n$\n\n\n\n\n\n\n1,164\n\n\n\n\n\n\n \n\n\n\n\n\n\n$\n\n\n\n\n\n\n1,305\n\n\n\n\n\n\n \n\n\n\n\n\n\n12\n\n\n\n\n\n\n%\n\n\n\n\n\n\n\n\nImpact of changes in foreign exchange rates\n\n\n\n\n\n\n \n\n\n\n\n\n\n—\n\n\n\n\n\n\n \n\n\n\n\n\n\n \n\n\n\n\n\n\n5\n\n\n\n\n\n\n \n\n\n\n\n\n\n \n\n\n\n\n\n\n\n\nConstant currency ACV\n\n\n\n\n\n\n$\n\n\n\n\n\n\n1,164\n\n\n\n\n\n\n \n\n\n\n\n\n\n$\n\n\n\n\n\n\n1,310\n\n\n\n\n\n\n \n\n\n\n\n\n\n13\n\n\n\n\n\n\n%\n\n\n\n\n\n\n\n\nNote: Constant currency ACV is calculated by applying the June 30, 2023 foreign exchange rates to all periods shown.\n\n\n\n\n\n\n\n______________________________\n1 R...