Pega Delivers Best Quarter of the Year in Q3 2022
- Annual contract value (ACV) grows 16 percent in constant currency year over year
- Pega Cloud ACV grows 39 percent in constant currency year over year
- Total backlog grows 11 percent (18 percent in constant currency) year over year
CAMBRIDGE, Mass. — October 26, 2022 — Pegasystems Inc. (NASDAQ: PEGA), the low-code platform provider that builds agility into the world's leading organizations, released its financial results for the third quarter of 2022.
“Q3 2022 was by far the best quarter of the year for Pega,” said Alan Trefler, founder and CEO, Pegasystems. “We’ve prioritized our go to market efforts to promote profitable growth. The focus we’re driving is being embraced by the organization, and we’re excited about the results we’re seeing.”
"We are excited to see growth acceleration in key performance metrics despite significant foreign exchange headwinds,” said Ken Stillwell, COO and CFO, Pegasystems. “We also continue to make progress on improving operational discipline and driving profitable growth to achieve the Rule of 40 as we exit 2024.”
Financial and performance metrics (1)
(1) See the Schedules at the end of this release for additional information, including a reconciliation of our non-GAAP and GAAP measures.
Note: Constant currency measures are calculated by applying foreign exchange rates for the earliest period shown to all periods. The above constant currency measures reflect foreign exchange rates applicable as of Q3 2021.
Quarterly conference call
A conference call and audio-only webcast will be conducted at 5:00 p.m. EDT on Wednesday, October 26, 2022. Members of the public and investors are invited to join the call and participate in the question and answer session by dialing 1-888-256-1007 (domestic), 1-323-701-0225 (international), or via webcast (https://viavid.webcasts.com/starthere.jsp?ei=1574684&tp_key=adfbdc0fb8) by logging onto www.pega.com at least five minutes prior to the event's broadcast and clicking on the webcast icon in the Investors section.
Discussion of non-GAAP financial measures
We believe that non-GAAP financial measures help investors understand our core operating results and prospects, consistent with how management measures and forecasts our performance without the effect of often one-time charges and other items outside our normal operations. The supplementary non-GAAP financial measures are not meant to be superior to or a substitute for financial measures prepared under U.S. GAAP.
Reconciliations of our non-GAAP and GAAP measures are at the end of this release.
Certain statements in this press release may be "forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995.
Words such as expects, anticipates, intends, plans, believes, will, could, should, estimates, may, targets, strategies, projects, forecasts, guidance, likely, and usually, or variations of such words and other similar expressions identify forward-looking statements, which are based on current expectations and assumptions.
Forward-looking statements deal with future events and are subject to risks and uncertainties that are difficult to predict, including, but not limited to:
- our future financial performance and business plans;
- the adequacy of our liquidity and capital resources;
- the continued payment of our quarterly dividends;
- the timing of revenue recognition;
- management of our transition to a more subscription-based business model;
- variation in demand for our products and services, including among clients in the public sector;
- reliance on key personnel;
- global economic and political conditions and uncertainty, including continued impacts from the ongoing COVID-19 pandemic and the war in Ukraine;
- reliance on third-party service providers, including hosting providers;
- compliance with our debt obligations and covenants;
- the potential impact of our convertible senior notes and Capped Call Transactions;
- foreign currency exchange rates;
- the potential legal and financial liabilities and damage to our reputation due to cyber-attacks;
- security breaches and security flaws;
- our ability to protect our intellectual property rights, costs associated with defending such rights, intellectual property rights claims and other related claims by third parties against us, including related costs, damages, and other relief that may be granted against us;
- our client retention rate; and
- management of our growth.
These risks and others that may cause actual results to differ materially from those expressed in such forward-looking statements are described further in Part I of our Annual Report on Form 10-K for the year ended December 31, 2021, Part II of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, and other filings we make with the U.S. Securities and Exchange Commission (“SEC”).
Except as required by applicable law, we do not undertake and expressly disclaim any obligation to update or revise these forward-looking statements publicly, whether due to new information, future events, or otherwise.
The forward-looking statements in this press release represent our views as of October 26, 2022.
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