We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pegasystems (PEGA) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
Read MoreHide Full Article
Pegasystems (PEGA - Free Report) reported $298.27 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 8.7%. EPS of $0.01 for the same period compares to -$0.38 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $309.61 million, representing a surprise of -3.66%. The company delivered an EPS surprise of -80.00%, with the consensus EPS estimate being $0.05.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Pegasystems performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Subscription: $238.30 million compared to the $257.73 million average estimate based on four analysts.
Revenue- Consulting: $58.39 million versus the four-analyst average estimate of $57.09 million. The reported number represents a year-over-year change of -0.4%.
Revenue- Perpetual license: $1.58 million compared to the $0.78 million average estimate based on four analysts. The reported number represents a change of -30.3% year over year.
Revenue- Subscription services: $197.11 million compared to the $195.49 million average estimate based on three analysts. The reported number represents a change of +14.7% year over year.
Revenue- Pega Cloud: $115.06 million versus $116.38 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +23.1% change.
Revenue- Subscription license: $41.20 million versus the three-analyst average estimate of $56.54 million. The reported number represents a year-over-year change of -1%.
Revenue- Maintenance: $82.04 million versus the two-analyst average estimate of $79.97 million.
Gross Profit- Subscription Services: $160.32 million versus the three-analyst average estimate of $156.67 million.
Gross Profit- Perpetual license: $1.56 million compared to the $0.75 million average estimate based on two analysts.
Gross Profit- Subscription: $200.90 million versus $214.40 million estimated by two analysts on average.
Gross Profit- Consulting: -$0.32 million compared to the $0.49 million average estimate based on two analysts.
Gross Profit- Subscription license: $40.57 million versus $57.29 million estimated by two analysts on average.
Shares of Pegasystems have returned +11.9% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Pegasystems (PEGA) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
Pegasystems (PEGA - Free Report) reported $298.27 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 8.7%. EPS of $0.01 for the same period compares to -$0.38 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $309.61 million, representing a surprise of -3.66%. The company delivered an EPS surprise of -80.00%, with the consensus EPS estimate being $0.05.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Pegasystems performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue- Subscription: $238.30 million compared to the $257.73 million average estimate based on four analysts.
- Revenue- Consulting: $58.39 million versus the four-analyst average estimate of $57.09 million. The reported number represents a year-over-year change of -0.4%.
- Revenue- Perpetual license: $1.58 million compared to the $0.78 million average estimate based on four analysts. The reported number represents a change of -30.3% year over year.
- Revenue- Subscription services: $197.11 million compared to the $195.49 million average estimate based on three analysts. The reported number represents a change of +14.7% year over year.
- Revenue- Pega Cloud: $115.06 million versus $116.38 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +23.1% change.
- Revenue- Subscription license: $41.20 million versus the three-analyst average estimate of $56.54 million. The reported number represents a year-over-year change of -1%.
- Revenue- Maintenance: $82.04 million versus the two-analyst average estimate of $79.97 million.
- Gross Profit- Subscription Services: $160.32 million versus the three-analyst average estimate of $156.67 million.
- Gross Profit- Perpetual license: $1.56 million compared to the $0.75 million average estimate based on two analysts.
- Gross Profit- Subscription: $200.90 million versus $214.40 million estimated by two analysts on average.
- Gross Profit- Consulting: -$0.32 million compared to the $0.49 million average estimate based on two analysts.
- Gross Profit- Subscription license: $40.57 million versus $57.29 million estimated by two analysts on average.
View all Key Company Metrics for Pegasystems here>>>Shares of Pegasystems have returned +11.9% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.