Pegasystems (PEGA) Q4 FY2023 earnings: revenue $474 million, up 19.6% on the year

Pegasystems Inc. (PEGA) reported revenue of $474 million for Q4 FY2023, the quarter ended 31 December 2023, up 19.6% on the same quarter a year earlier. Net income was $143 million, up 312.2% on the year, and diluted earnings per share $0.81. The figures are the company's own, from the 10-K it filed with the SEC on 14 February 2024.

Revenue$474 millionup 19.6%

Net income$143 millionup 312.2%

Diluted EPS$0.81

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	474	335	n/a	n/a
Cost of revenue	90.6	93.8	n/a	n/a
Gross profit	384	241	n/a	n/a
Gross margin	80.9%	72.0%	n/a
Research and development	71.2	75.0	n/a	n/a
Operating income	155	-10.8	n/a	n/a
Operating margin	32.7%	-3.2%	n/a
Interest expense	1.6	1.5	n/a	n/a
Pre-tax income	155	-3.7	n/a	n/a
Income tax	12.2	3.5	n/a	n/a
Effective tax rate	7.9%	n/a	n/a
Net income	143	-7.3	n/a	n/a
Net margin	30.1%	-2.2%	n/a
Diluted EPS	$0.81	-$0.04	n/a	n/a

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	79.9	24.2	n/a	n/a
Capital expenditure	2.5	0.3	n/a	n/a
Free cash flow	77.4	23.8	n/a	n/a
Free cash flow margin	16.3%	7.1%	n/a
Cash from investing	-26.6	-40.2	n/a	n/a
Cash from financing	3.1	2.0	n/a	n/a
Depreciation and amortisation	4.6	4.6	n/a	n/a
Share-based compensation	33.3	31.3	n/a	n/a
Buybacks	-1.7	0.2	n/a	n/a
Dividends paid	2.5	2.5	n/a	n/a
Dividend per share	n/a	$0.01	n/a	n/a
Diluted shares, weighted	179m	167m	n/a	n/a
Shares outstanding at period end	168m	167m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Shareholders' equity	354	168	n/a	n/a
Debt	499	n/a	n/a	n/a
Operating lease liabilities	66.9	68.9	n/a	n/a
Other liabilities	591	986	n/a	n/a
Total liabilities and equity	1,511	1,223	n/a	n/a
Fixed assets	47.3	49.5	n/a	n/a
Goodwill	81.6	81.4	n/a	n/a
Intangible assets	7.0	7.9	n/a	n/a
Investments	193	167	n/a	n/a
Cash and equivalents	230	169	n/a	n/a
Receivables	300	169	n/a	n/a
Other assets	651	579	n/a	n/a
Total assets	1,511	1,223	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	335	474	330	351	325	491	476	385	381	504	430	421
Cost of revenue	93.8	90.6	94.7	96.9	96.7	102	102	110	106	103	107	108
Gross profit	241	384	235	254	228	388	373	275	275	401	323	313
Gross margin	72%	81%	71%	72%	70%	79%	78%	72%	72%	79%	75%	74%
R&D	75.0	71.2	72.1	75.4	74.2	76.4	74.3	78.8	78.8	80.9	82.0	84.2
Operating income	-10.8	155	-20.4	13.0	-11.7	143	127	17.3	14.5	104	37.1	16.6
Operating margin	-3%	33%	-6%	4%	-4%	29%	27%	4%	4%	21%	9%	4%
Interest expense	1.5	1.6	1.8	1.7	1.6	1.8	1.0	0.0	0.1	0.1	0.0	0.0
Pre-tax income	-3.7	155	-15.2	15.3	-11.6	154	126	25.2	24.1	105	39.7	18.5
Tax rate	n/a	8%	n/a	57%	n/a	23%	32%	-19%	-80%	-123%	17%	28%
Net income	-7.3	143	-12.1	6.6	-14.4	119	85.4	30.1	43.4	235	32.8	13.3
Net margin	-2%	30%	-4%	2%	-4%	24%	18%	8%	11%	47%	8%	3%
Diluted EPS	-$0.04	$0.81	-$0.07	$0.04	-$0.09	$0.62	$0.46	$0.17	$0.24	$1.27	$0.18	$0.08
Operating cash flow	24.2	79.9	180	40.1	30.5	95.2	204	86.3	56.3	158	212	86.0
Capital expenditure	0.3	2.5	0.6	1.3	3.1	2.8	1.9	2.1	4.5	6.0	5.7	4.2
Free cash flow	23.8	77.4	180	38.8	27.4	92.4	202	84.1	51.8	152	207	81.7
Buybacks	0.2	-1.7	0.0	0.0	11.2	56.8	117	134	143	105	167	200
Dividends paid	2.5	2.5	2.5	2.5	2.6	2.6	2.6	2.6	5.2	5.1	5.1	5.1
Shares outstanding	167m	168m	170m	171m	172m	172m	171m	171m	171m	170m	169m	164m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2023, filed 14 February 2024, accession 0001013857-24-000012: the filing on EDGAR. All of Pegasystems Inc.'s filings: EDGAR company page.

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