Q3 2024 Pegasystems Inc Earnings Call Transcript
Key Points
- Pegasystems Inc (PEGA) reported a 14% year-over-year growth in annual contract value (ACV) in constant currency, with Pega Cloud growing 26% year-over-year.
- The Pega GenAI Blueprint is significantly impacting client engagement and expanding the addressable market by helping clients modernize legacy systems.
- The company achieved record free cash flow and cash flow from operations for the first nine months of 2024, nearly doubling from the previous year.
- Pegasystems Inc (PEGA) has successfully shifted its go-to-market strategy, improving sales efficiency and effectiveness by focusing on target organizations.
- The company has seen strong engagement from partners, with over 70 Blueprints created by partners to enhance client offerings.
- Despite the positive momentum, Pegasystems Inc (PEGA) faces a tough comparison for Q4 due to a strong performance in the same quarter last year.
- There is still nervousness in the market due to geopolitical tensions and economic uncertainties, which may impact client decision-making.
- Maintenance and subscription revenue are expected to decline as the company transitions more clients to Pega Cloud, which could affect short-term revenue visibility.
- The competitive environment remains challenging, with major players like Salesforce also focusing on AI and automation solutions.
- The company acknowledges that the market is still noisy and clients are confused about AI, which could slow down adoption and decision-making processes.
Ladies and gentlemen, thank you for standing by. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to Pegasystems Inc. third-quarter 2024 earnings conference call. (Operator Instructions)
Thank you. I would now like to turn the conference over to Peter Wilburn, Vice President of Corporate Development, Investor Relations. You may begin.
Thank you so much, Krista. Good morning, everyone, and welcome to Pegasystems Q3 2024 earnings call. Before we begin, I would like to read our Safe Harbor statement. Certain statements contained in this presentation may be construed as forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The words expects, anticipates, intends, plans, believes, will, could, should, estimates, may, forecasts and guidance or variations of such words and other similar expressions identify forward-looking statements, which speak only as of the date
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