- PEGASYSTEMS INC. (PEGA, Financial) reported a 44% increase in total revenue for Q1 2025, amounting to $475.6 million.
- Pega Cloud's Annual Contract Value (ACV) increased by 23% year-over-year in Q1 2025.
- Free cash flow reached $202 million for the quarter.
Pegasystems Inc. (PEGA), an Enterprise Transformation Company, announced its financial results for the first quarter of 2025. The results highlighted significant growth across several financial metrics, showcasing the company's robust performance in the fast-evolving technology sector.
PEGASYSTEMS saw its total revenue climb by 44% to $475.6 million in the first quarter of 2025, a substantial increase from the $330.1 million reported in the same period of 2024. This surge was primarily driven by strong subscription revenue, which accounted for 87% of the total revenue, reaching $414 million.
The company also reported a 13% year-over-year growth in its Annual Contract Value (ACV), with the Pega Cloud ACV witnessing a notable 23% growth during the same period. This indicates rising demand for Pega's cloud solutions as clients continue to seek effective digital transformation strategies.
Pegasystems CEO, Alan Trefler, attributed the accelerated growth to the transformative impact of Pega GenAI, which has enhanced client engagement and allowed clients to achieve digital and legacy transformation goals more efficiently.
The company's financial strength was further evidenced by its ability to generate $202 million in free cash flow, representing a 13% increase compared to the previous year. Operating cash flow reached $204 million, reflecting the benefits of its subscription-based model.
Earnings per share were also strong, with GAAP earnings reported at $0.91 per diluted share, and non-GAAP earnings reaching $1.53 per diluted share, a significant improvement over the previous year's results.
Ken Stillwell, COO & CFO of Pegasystems, emphasized the company's focus on accelerating profitable growth while efficiently returning capital to shareholders, operating under the "Rule of 40."
The company's backlog grew by 21% year-over-year, underscoring the sustained demand for its services and products. Pegasystems continues to show resilience and adaptability in a competitive market, underpinned by strong financial metrics and strategic initiatives.
