Pegasystems Inc. (PEGA) reports earnings

The report was filed on February 12, 2025

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Pegasystems Inc. (PEGA-3.75%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.

The filing details the company's business operations, which involve developing, marketing, licensing, hosting, and supporting enterprise software. This software helps organizations optimize decisions and processes in real-time, enhancing customer experiences and automating services.

Pegasystems reported total revenue of $1,497,180,000 for 2024, a 5% increase from the previous year. The increase was primarily driven by expanded adoption of Pega Cloud by existing clients.

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The company recorded a net income of $99,189,000 for 2024, compared to $67,808,000 in 2023. The improvement in net income was largely due to increased revenue and cost-efficiency initiatives.

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Operating expenses for the year totaled $982,633,000, which included a litigation settlement expense of $32,403,000. Selling and marketing expenses decreased by 4% due to reduced headcount.

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Pegasystems' balance sheet shows total assets of $1,768,273,000 as of December 31, 2024, with cash, cash equivalents, and marketable securities totaling $739,973,000.

The company disclosed ongoing litigation with Appian Corp., with a judgment of $2.06 billion entered against Pegasystems, which is currently under appeal.

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Pegasystems continues to focus on expanding its market share through its AI-powered platform and aims to deepen relationships with existing clients while establishing new ones.

The filing also highlights the company's efforts to optimize its go-to-market strategy and reassess office space needs, resulting in restructuring expenses.

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The company anticipates further legal expenses related to ongoing litigation and has maintained a valuation allowance on its deferred tax assets due to uncertainties in realizing these assets.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Pegasystems Inc. annual 10-K report dated February 12, 2025. To report an error, please email earnings@qz.com.