Pegasystems Inc. · NASDAQ:PEGA
Pegasystems — Investor Presentation (November 2009)
36 slides from Pegasystems's investor presentation, November 2009
Slide 1: Pegasystems Inc.
Pegasystems Inc. Craig Dynes, CFO November 2009 1 © Pegasystems 2009
Slide 2: Safe Harbor
Safe Harbor Certain statements contained in this presentation may be construed as “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “hope,” “anticipate,” “plan” and similar expressions identify forward-looking statements,
Slide 3: Q3 2009: Ninth Consecutive Quarter of Record Revenues
Q3 - 2009: Ninth Consecutive Quarter of Record Revenues Income Statement Summary For Nine Months ended Sept 30 (In millions) 2009 2008 Perpetual License $ 47.3 $ 29.3 Term License 29.8 19.0 Subscription 4.9 2.9 License Revenue 82.0 51.2 Maintenance 36.6 29.0 Professional Services 72.4 72.1 Total Rev
Slide 4: Pegasystems 2010 Preliminary Revenue Guidance
Pegasystems 2010 Preliminary Revenue Guidance Income Statement Summary For Year ended December 31 (In millions) Annual Revenue by Year 2008 2007 Perpetual License $ 46.7 $ 37.9 Term License 25.6 13.2 Subscription 4.3 ‐ License Revenue 76.6 51.1 Maintenance 40.1 31.1 Professional Services 94.9 79.7 T
Slide 5: Pega's results driven by unique business model
Pega’s results driven by • Unique business model • Extremely high returns enjoyed by customers • Methodology by which applications are created 5 © Pegasystems 2009
Slide 6: Not a Typical Enterprise Software Company
Not a Typical Enterprise Software Company • Perpetual licenses with 18% maintenance • Term licenses with 3 – 5 year non‐cancellable terms • Target is Purpose based licenses; $500 to $1 million • Target specific business problems for business people, not IT • Six to nine month implementations 6 © Peg
Slide 7: Pega opportunity: Execution Gaps
Pega opportunity… …Execution Gaps! Management Goals Sales Service Operations Compliance Partners New Case New Product Business Management Introduction Business Changes Worsen Execution Customer Proposal Gaps Satisfaction Compliance Sales Service Operations Compliance Partners Systems 7 © Pegasystems
Slide 8: Farmers Insurance
Farmers Insurance • 90% of Commercial SMB policies < $15K Problem: • 15,000 agents not good at writing commercial insurance • Improve agent experience through automation Objective: • Drive more commercial insurance in SMB space • Quote to bind time reduced from 14 days to 14 minutes Results: • Auto
Slide 9: CSC
CSC • Granted a license to provide Medicare Part D drug coverage Problem: • Two‐month deadline to launch program. • Handle inquiries and process the enrollments for hundreds of thousands of potential members per month. Objective: • New call center capable of handling complex processes and procedures
Slide 10: Create Solutions in Months
Create Solutions in Months Management Goals Sales Service Operations Compliance Partners 1. Directly Capture Business Requirements Build for Change Technology 2. Automate the Programming ™ 3. Automate the Work Sales Service Operations Compliance Partners Systems 10 © Pegasystems 2009
Slide 11: Directly Executable Business Requirements
Directly Executable Business Requirements SM Put Business Changes in the Hands of the Business Familiar Office tools (Visio, Word, Excel) accessed via a web browser Forms guide the user for safe and easy delegation Working models replace paper specifications & requirements 11 © Pegasystems 2009
Slide 12: Automate the Programming
Automate the Programming 12 © Pegasystems 2009
Slide 13: Round trip development
Round trip development 13 © Pegasystems 2009
Slide 14: © Pegasystems 2009
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Slide 15: © Pegasystems 2009
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Slide 16: © Pegasystems 2009
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Slide 17: © Pegasystems 2009
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Slide 18: © Pegasystems 2009
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Slide 19: © Pegasystems 2009
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Slide 20: Round Trip Development
Round Trip Development 20 © Pegasystems 2009
Slide 21: © Pegasystems 2009
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Slide 22: Automate the Work
Automate the Work 22 © Pegasystems 2009
Slide 23: Only Pegasystems Unifies BPMS and Rules
Only Pegasystems Unifies BPMS and Rules Gartner Magic Quadrants BPMS Rules Microsoft Fair Isaac IBM Oracle Computer Associates Pegasystems AMS ILOG Sybase Pegasystems Unisys Gensym Magic Mindbox Haley SoftLaw Pegasystems PegasystemsRulesPower ESI Versata Exsys Resolution EBS Yasu Elity Forrester Wav
Slide 24: Only Pega Integrates BPMS and Rules
Only Pega Integrates BPMS and Rules 24 © Pegasystems 2009
Slide 25: Complex Rules require an integration of BPMS and a robust Rules Engine
Complex Rules require an integration of BPMS and a robust Rules Engine 25 © Pegasystems 2009
Slide 26: Solution Frameworks
Solution Frameworks • Used out of the box for early ROI • Kick starts iterative improvement • Less is more – customer can modify and extend • Encourages re‐use • Industry standards baked in 26 © Pegasystems 2009
Slide 27: Solution Frameworks
Solution Frameworks Cross Industry Frameworks Customer Control and Product Support Procurement New Hire Time Off Benefits Six Sigma Process Compliance Configuration Enrollment Framework Management Management Financial Services Frameworks Retail Wholesale Smart Smart Self- SWIFTNet SWIFTNet Smart Sma
Slide 28: Pegasystems Past and Present
Pegasystems Past and Present Pre 2005 Lineage Today Pegaworks PRPC • Bifurcated strategy, apps and BPM • BPM platform drives product line, platform suite of lighter frameworks • Legacy account coverage • Named Account sales model • PEGA only professional services • Partner network • All or nothing,
Slide 29: Pegasystems Revenue Summary
Pegasystems Revenue Summary Income Statement Summary For Year ended December 31 (In millions) Annual Revenue by Year 2008 2007 Perpetual License $ 46.7 $ 37.9 Term License 25.6 13.2 Subscription 4.3 ‐ License Revenue 76.6 51.1 Maintenance 40.1 31.1 Professional Services 94.9 79.7 Total Revenue $ 211
Slide 30: Pegasystems 2009 Q3 YTD Revenue Summary
Pegasystems 2009 Q3 YTD Revenue Summary Income Statement Summary For Nine Months ended Sept 30 (In millions) 2009 2008 Perpetual License $ 47.3 $ 29.3 Term License 29.8 19.0 Subscription 4.9 2.9 License Revenue 82.0 51.2 Maintenance 36.6 29.0 Professional Services 72.4 72.1 Total Revenue $ 191.0 $ 1
Slide 31: Pegasystems Future License Payments
Pegasystems Future License Payments Term License Payments Perpetual and Subscription License Payments Installment payments for non‐cancellable term Installment payments for non‐cancellable perpetual licenses not recorded on the balance sheet as of and subscription licenses not recorded on the Septem
Slide 32: Pegasystems Summary Results
Pegasystems Summary Results GAAP Net Income Income Statement Summary For Nine Months ended Sept 30 (In millions) 2009 2008 Net Income $ 25.9 $ 8.1 2009 Income Guidance increased on August 4, 2009: $25 million 32 © Pegasystems 2009
Slide 33: Pegasystems Cash Summary
Pegasystems Cash Summary Financial Statement Summary as of (In millions) Ending Cash and Investment balance 09/30/09 09/30/08 YTD Cash Flow from Operations $ 38.8 $ 32.9 09/30/09 12/31/08 Cash $ 198.4 $ 167.2 Debt None None Pegasystems pays a $0.03 per share quarterly dividend Pegasystems is current
Slide 34: BPM Market Sizing
BPM Market Sizing Gartner: Total BPMS Market (License & Maintenance) $3,000 2008 – 2013 CAGR: 10.6% $2,500 $2,666 $2,416 $2,000 $2,170 $ in millions $1,931 $1,740 $1,500 $1,613 $1,407 $1,000 $500 $0 2007 2008 2009 2010 2011 2012 2013 © Pegasystems 2009 34 34
Slide 35: Empowering Our Customers to Build for Change
Empowering Our Customers to Build for Change 35 © Pegasystems 2009
Slide 36: Pegasystems Inc. contact details
Pegasystems Inc. 101 Main Street, Cambridge, MA 02142 617-374-9600 www.pega.com 36 © Pegasystems 2009