What is the market's earnings forecast for Pegasystems next quarter?

What is Pegasystems's latest dividend and current dividend yield?

What factors drove the changes in Pegasystems's revenue and profit?

What is Pegasystems's gross profit margin?

What were the key takeaways from Pegasystems's earnings call?

What is the revenue and EPS growth rate for Pegasystems year over year?

What guidance did Pegasystems's management provide for the next earnings period?

What does Pegasystems do and what are its main business segments?

- **AI-Driven Growth**: Pega Blueprint accelerates implementations (e.g., 100-day deployments) and enables partners to create custom solutions, driving 27% YoY Pega Cloud ACV growth.
- **Financial Strength**: $338M free cash flow and $393M share buyback highlight strong cash generation and shareholder returns.
- **Cloud Dominance**: 85% of ACV growth from Pega Cloud, signaling structural shift to a scalable, predictable business model.
- **Partnership Expansion**: 'Powered by Blueprint' empowers partners to bring their IP to market, potentially unlocking new logo growth at scale.
- **Regulated Industry Edge**: Unique workflow engine ensures reliable AI orchestration, critical for banking, healthcare, and insurance sectors.


**【CEO Summary Section】**
- Pegasystems' AI strategy centers on Pega Blueprint, enabling clients to design workflows using AI at design time and execute them reliably at runtime, ensuring predictability for regulated industries.
- Notable implementations include a global food and beverage company and a large automotive client, both going live in under 100 days.
- The company is expanding its partner ecosystem with 'Powered by Blueprint,' allowing partners to embed their IP into the tool, accelerating new use cases and sales cycles.

**【CFO Financial Commentary】**
- Q3 2025 results: Pega Cloud ACV grew 27% YoY, driving 85% of total ACV growth. Free cash flow reached $338M, up 38% YoY.
- Share buyback: $393M in Q3, reflecting confidence in long-term value.
- Term license revenue decline expected due to cloud migration, but overall business momentum remains strong.

**【Q&A Key Highlights】**
- **ACV Growth Drivers**: Pega Blueprint shortens sales cycles, with one deal closing in days vs. months. Usage-based pricing models align incentives with clients.
- **Federal Impact**: Government shutdowns slow project progress, but long-term strategic initiatives continue. Pega Cloud for government is gaining traction.
- **Partnership Strategy**: Partner-branded Blueprints enable 100,000+ sellers to leverage Pega's platform, potentially unlocking new logo growth at scale.
- **AI Orchestration**: Pega's workflow engine provides reliable orchestration vs. competitors' LLM-based approaches, critical for regulated industries.


Pegasystems Inc. (PEGA) Q3 2025 Earnings Call Transcript

- **AI-driven growth**: 16% YoY ACV growth fueled by Blueprint, enabling 60% YoY net new ACV expansion.
- **Cloud leadership**: Pega Cloud ACV +28% YoY, with $286M free cash flow and $251M in share buybacks.
- **Strategic partnerships**: AWS collaboration and 7+ SI partner-branded Blueprints accelerate enterprise transformation.
- **Legacy modernization**: Blueprint converts legacy assets into modern apps, e.g., Vodafone's 40-hour deployment.
- **Seasonal note**: Q3 softer due to renewal timing, but long-term growth trajectory intact.

**【CEO Summary Section】**
- Emphasized Pega's AI-driven strategy, particularly **Blueprint**, which enables predictable AI through structured workflows, contrasting with competitors' prompt-based approaches.
- Highlighted **partner-branded Blueprints** with top systems integrators (e.g., Accenture, AWS) to accelerate enterprise transformation and expand reach.
- Showcased **legacy system modernization success**, e.g., Vodafone's 40-hour app deployment and Blueprint's ability to convert legacy assets into modern applications.
- Announced a **5-year AWS collaboration** to combine Pega Blueprint with AWS Transform for faster legacy modernization.
- CEO's vision: Pega is building the future of enterprise transformation, where ideas move seamlessly from mind to market.

**【CFO Financial Commentary】**
- **ACV growth**: 16% YoY (14% constant currency), with net new ACV up 60% YoY, driven by Blueprint adoption.
- **Free cash flow**: $286M (H1 2025), with $251M spent on share buybacks (85% of FCF).
- **Cloud momentum**: Pega Cloud ACV +28% YoY, with 28% of backlog expected to convert in 12 months.
- **Seasonality note**: Q3 typically softer due to fewer contract renewals and term license revenue.

**【Q&A Highlights】**
- **Blueprint impact**: Drives 60% YoY net new ACV growth, with 1,000+ organizations using Blueprint for modernization.
- **Partnerships**: 7+ top SI's signed for partner-branded Blueprints, with AWS as hyperscaler model.
- **Macro resilience**: No material impact from tariffs; focus on GenAI and legacy modernization as growth drivers.
- **Term license trends**: Q3 term license revenue at historical low due to renewal timing, but overall momentum strong.
- **Share buybacks**: Disciplined approach to mitigate dilution and enhance per-share value.

Pegasystems Inc. (PEGA) Q2 2025 Earnings Call Transcript

- **ACV Growth Surpasses Expectations**: 13% YoY ACV growth driven by Pega Gen AI Blueprint adoption, with Pega Cloud ACV reaching $700 million (23% YoY).
- **Agentic Workflows Innovation**: Over 1,000 new Blueprints created weekly, showcasing enterprise-grade AI with predictable workflows.
- **Free Cash Flow Strength**: $202 million Q1 free cash flow, up from $201 million annualized in 2023, enabling $120 million share buybacks.
- **Debt-Free Milestone**: Repaid $468 million convertible notes, enhancing financial flexibility and investor returns.
- **PegaWorld 2025 Highlights**: 200+ live demos featuring RaboBank, Unilever, and Verizon use cases for legacy modernization and AI-driven efficiency.
- **Competitive Advantage**: Unique Agentic workflows combine generative AI with governed workflows, contrasting competitors' unreliable black-box agents.


**【CEO Summary Section】**
- Pega achieved 13% year-over-year ACV growth, driven by Pega Gen AI Blueprint adoption, which enabled rapid client engagement and reduced sales cycle complexity.
- Introduced Pega Blueprint for Government Efficiency, a Gen AI toolkit for public sector digital transformation, and enhanced Customer Decision Hub (CDH) with Blueprint integration for personalized customer journeys.
- Agentic workflows, combining generative AI with predictable workflows, saw over 1,000 new Blueprints created weekly, doubling from prior quarters.
- PegaWorld 2025 will showcase 200+ live demos, including use cases from RaboBank, Unilever, and Verizon, emphasizing legacy system modernization and AI-driven efficiency.

**【CFO Financial Commentary】**
- Q1 2025 ACV added $74 million, with Pega Cloud ACV growing 23% to $700 million, representing half of total ACV.
- Free cash flow reached $202 million, up from $201 million annualized in 2023, driven by higher ACV and cost efficiency.
- Repurchased 1.5 million shares ($120 million), reducing outstanding shares by 550,000, with $500 million additional buyback authorization.
- Repaid $468 million convertible notes, achieving debt-free status and enhancing financial flexibility.
- Pega Cloud growth target of 20%+ remains on track, with strategic focus on legacy workload migration and cross-selling opportunities.

**【Q&A Key Highlights】**
- **ACV Growth Drivers**: 13% YoY ACV growth attributed to Blueprint adoption, with no material deal timing shifts from Q4 to Q1.
- **Blueprint Impact**: Every deal in Q1 leveraged Blueprint for rapid client visualization and workflow design, reducing discovery time from weeks to minutes.
- **Macroeconomic Resilience**: Despite global uncertainty, clients prioritized digital and legacy transformation, with no significant sales cycle elongation.
- **Competitive Differentiation**: Pega's Agentic workflows (AI-driven workflows with governance) contrast competitors' black-box agents, offering enterprise-grade reliability.
- **Cloud Momentum**: Pega Cloud ACV now 50% of total ACV, with 23% growth reflecting strong cross-sell/up-sell execution.

**【Financial Targets】**
- Maintain Rule 40+ profitability while accelerating growth, with focus on free cash flow per share expansion through ACV growth and capital returns.
- Pega Cloud ACV target of 20%+ growth, supported by high client retention rates and subscription model maturity.


Pegasystems (PEGA)-23 Apr 25-2025 Q1 Earnings call transcript

- **AI-Driven Growth**: Pega GenAI Blueprint enables 70,000+ workflows, with hundreds in production, driving 11% ACV growth. Pega AgentX integrates AI agents into trusted workflows, reducing risk for enterprises.
- **Financial Strength**: FY24 free cash flow up 68% to $338M; Pega Cloud gross margin 78% (+300bps). 2025 targets 12% ACV growth and $440M free cash flow.
- **Market Expansion**: New logo pursuit via Blueprint reduces friction; U.K. Armed Forces deal exemplifies legacy system replacement opportunity in public sector.
- **Shareholder Value**: $73.5M share buyback in FY24; proposed 2:1 stock split to enhance liquidity.


**【CEO Key Highlights】**
- **Revenue Growth & AI Strategy**: FY24 revenue growth driven by North American market recovery; AI investment continues with Pega GenAI Blueprint enabling legacy system transformation. Pega AgentX integrates workflows with AI agents, ensuring governance and scalability.
- **Pega GenAI Blueprint Impact**: Over 70,000 workflows created, with hundreds moving to production. Blueprint accelerates time-to-value, redefining client engagement and reducing friction for new logo acquisition.
- **2025 Outlook**: Target 12% ACV growth, with Pega Cloud driving 21% YoY growth. Emphasis on expanding into new markets and increasing sales coverage for new logos.

**【CFO Financial Summary】**
- **FY24 Financials**: ACV growth 11% (constant currency), Pega Cloud ACV +21%. Free cash flow $338M (+68%), GAAP net income $420M. Pega Cloud gross margin expanded 300bps to 78%.
- **2025 Guidance**: ACV growth 12%, free cash flow $440M (+30%). Pega Cloud margins expected to remain flat due to migration investments. Share buyback of $73.5M in FY24 offsets dilution.
- **Stock Split**: Proposed 2:1 split to enhance liquidity and accessibility for retail investors.

**【Q&A Key Takeaways】**
- **Blueprint Adoption**: Hundreds of millions in pipeline driven by Blueprint, with 70,000+ workflows created. Sales efficiency improved via experiential demos reducing reliance on custom solutions.
- **Pega Cloud Pricing**: Migrations yield 25%-100%+ uplift, varying by contract terms. Work-based licensing model aligns with AI-driven workflows.
- **Government Sector Growth**: U.K. Armed Forces deal highlights legacy system replacement opportunity. U.S. federal focus on constituent interaction efficiency aligns with Pega's strengths.
- **ACV Linearity**: FY24 less back-end loaded; FY25 expects Q1/Q4 strength. Currency headwinds (~$25M) impact 2025 growth.


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