Pegasystems ( (PEGA) ) has released its Q1 earnings. Here is a breakdown of the information Pegasystems presented to its investors.
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Pegasystems Inc., a leader in enterprise transformation, specializes in AI decisioning and workflow automation, serving major global businesses with scalable solutions for digital transformation. The company reported strong financial results for Q1 2025, driven by its Pega GenAI technology, which has enhanced client engagement and accelerated digital transformation efforts.
Pegasystems’ Q1 2025 earnings report highlights a significant increase in operating cash flow to $204 million and free cash flow to $202 million. The company also achieved a 44% increase in total revenue, reaching $475.6 million, and a notable improvement in net income, with GAAP net income rising to $85.4 million from a loss in the previous year. The company’s subscription model contributed to these positive results, with Pega Cloud ACV growing by 23% year over year.
Key financial metrics include a 13% year-over-year growth in Annual Contract Value (ACV) and a 21% increase in backlog. The company’s subscription services and license revenue saw substantial growth, with subscription license revenue increasing by 195%. Pegasystems’ strategic focus on AI and cloud solutions has been instrumental in driving these impressive results.
Looking ahead, Pegasystems remains committed to accelerating profitable growth and returning capital to shareholders. The company’s management is optimistic about leveraging its AI capabilities to continue supporting clients in their digital transformation journeys, positioning Pegasystems for sustained success in the evolving enterprise technology landscape.