Pegasystems Reports $1.497 Billion Revenue and $99.2 Million Net Income for Fiscal Year 2024

Pegasystems Inc. reported a total revenue of $1.497 billion for the fiscal year ending December 31, 2024, marking a 4.5% increase from $1.433 billion in 2023. The company's net income rose to $99.2 million, or $1.16 per share, compared to $67.8 million, or $0.82 per share, in the previous year. This improvement in profitability was attributed to increased revenue from Pega Cloud and subscription services, which saw significant growth, while maintenance and perpetual license revenues declined due to a strategic shift towards cloud-based offerings.

The company experienced notable changes in its revenue streams, with Pega Cloud revenue increasing by 21% to $558.7 million, driven by expanded adoption among existing clients. Subscription services revenue also grew by 11% to $882 million. However, maintenance revenue decreased by 3% to $323.3 million, reflecting the transition of clients to Pega Cloud solutions. The overall annual contract value (ACV) rose by 9% to $1.372 billion, with a constant currency increase of 11%.

Strategically, Pegasystems has focused on optimizing its operations, which included a restructuring initiative that led to a reduction in selling and marketing expenses by 4% to $534.8 million. The company also reported a significant increase in cash provided by operating activities, which reached $345.9 million, up from $217.8 million in 2023. Pegasystems' total cash, cash equivalents, and marketable securities increased to $740 million, compared to $426.3 million a year earlier, reflecting improved liquidity and financial stability.

Operationally, Pegasystems has expanded its customer base, with a notable increase in user engagement metrics. The company reported a backlog of $1.623 billion, an 11% increase from the previous year, indicating strong future revenue potential. The workforce was optimized, resulting in a decrease in employee headcount, which contributed to lower operating expenses. The company continues to invest in its product offerings, including the Pega GenAI Blueprint, to enhance application development and deployment capabilities.

Looking ahead, Pegasystems anticipates continued growth driven by its cloud offerings and strategic initiatives. The company expects to maintain its focus on digital transformation solutions for its Global 2000 clients and government agencies, aiming to enhance customer experiences and operational efficiencies. The management remains optimistic about future performance, supported by a solid financial foundation and ongoing investments in technology and innovation.