Pegasystems Announces Financial Results for Second Quarter and First Six Months of 2015
CAMBRIDGE, MA -- (Marketwired) -- 07/29/15 -- Pegasystems Inc. (NASDAQ: PEGA), the software company empowering the world's leading enterprises with strategic business applications, today announced results for its second quarter and six months ended June 30, 2015.
"We are delighted with our strong performance in the first half of 2015, which we believe reflects our unique ability to help clients manage customer engagement on a global scale and rapidly adapt to change," said Alan Trefler, Founder and CEO of Pegasystems. "We exceeded our revenue goals while building backlog, demonstrating strong execution throughout the organization. We continue to be gratified that the most successful enterprises in the world are choosing Pega to transform their organizations for efficiency and competitive advantage."
SELECTED GAAP & NON-GAAP RESULTS (1)
Three Months Ended June 30,
-----------------------------------
($ in thousands except per
share amounts) 2015 2015 2014 2014 % Increase
-------------
Non-
GAAP Non-GAAP GAAP Non-GAAP GAAP GAAP
----------------------------------------------------------------------------
Total Revenue $162,019 $162,019 $142,985 $143,868 13% 13%
License Revenue $ 63,497 $ 63,497 $ 54,012 $ 54,533 18% 16%
Cloud Revenue $ 7,279 $ 7,279 $ 3,727 $ 3,936 95% 85%
Net Income $ 3,104 $ 10,945 $ 1,504 $ 7,989 106% 37%
Diluted Earnings per share $ 0.04 $ 0.14 $ 0.02 $ 0.10 100% 40%
Six Months Ended June 30,
----------------------------------
($ in thousands except per % Increase
share amounts) 2015 2015 2014 2014 (Decrease)
-------------
Non- Non- Non-
GAAP GAAP GAAP GAAP GAAP GAAP
----------------------------------------------------------------------------
Total Revenue $315,937 $315,937 $283,449 $286,091 11% 10%
License Revenue $121,472 $121,472 $106,626 $107,669 14% 13%
Cloud Revenue $ 13,456 $ 13,456 $ 7,585 $ 8,182 77% 64%
Net Income $ 9,039 $ 21,131 $ 11,269 $ 23,695 (20%)(11%)
Diluted Earnings per share $ 0.11 $ 0.27 $ 0.14 $ 0.30 (21%)(10%)
(1) See a reconciliation of our GAAP to Non-GAAP measures contained in the
financial schedules at the end of this release.
Cash: Total cash, cash equivalents, and marketable securities at June 30, 2015 was $226.9 million, up 7% from 2014 year-end.
Cash generated from operations for the first six months of 2015 was $39.4 million. Free Cash Flow, which we define as operating cash flow less Cap Ex, was $32.1 million for the first six months of 2015.
License and Cloud Backlog: The Company computes license and cloud backlog by adding billed deferred license and cloud revenue and off-balance sheet license and cloud commitments, which is business that is contracted, unbilled, and not recorded on the Company's balance sheet.
License and Cloud Backlog (1)
June 30,
%
($ in thousands) 2015 2014 Increase
----------------------------------------------------------------------------
Total billed deferred license and cloud
revenue 61,339 54,938 12%
Total off-balance sheet license and cloud
commitments (2) 330,043 298,658 11%
TOTAL LICENSE AND CLOUD BACKLOG 391,382 353,596 11%
(1) See historical quarterly license backlog amounts including cloud in a
separate schedule at the end of this release.
(2) See the "Future Cash Receipts from License and Cloud Arrangements" table
on page 23 of the Quarterly Report on Form 10-Q for the period ending June
30, 2015.
"With a strong first half to 2015, Pegasystems continues to execute against its financial performance goals," said Rafe Brown, Pegasystems CFO. "As a result of the increased visibility gained by building backlog in the first half, we believe we will modestly exceed our previously issued GAAP and non-GAAP revenue guidance of approximately $653 million for the full year 2015. We reiterate our previously issued GAAP diluted EPS guidance for the year of approximately 49 cents per share and non-GAAP diluted EPS guidance for the year of approximately 78 cents per share, as we continue to invest in our strategic applications, cloud, sales, and marketing efforts."
See the reconciliation of our GAAP diluted EPS guidance to non-GAAP diluted EPS guidance for the full year of 2015 at the end of this release.
Quarterly Conference Call
Pegasystems will host a conference call and audio-only Webcast associated with this announcement at 5:00 p.m. EDT today. A live audio webcast of the conference call, together with detailed financial information, can be accessed through the Company's Website at www.pega.com/about/investors. Dial-in information is as follows: 1-877-407-3982 (domestic) or 1-201-493-6780 (international). To listen to the Webcast, log onto www.pega.com at least 5 minutes prior to the event's broadcast and click on the Webcast icon in the Investors section. A replay of the call will also be available on www.pega.com in the Investors section Earnings Calls link.
Discussion of Non-GAAP Financial Measures
To supplement financial results presented in accordance with Generally Accepted Accounting Principles in the U.S. ("GAAP"), the Company provides non-GAAP measures, including in this release. Pegasystems' management utilizes a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions, and for forecasting and planning for future periods. The Company's annual financial plan is prepared both on a GAAP and non-GAAP basis, and both are approved by our board of directors. In addition and as a consequence of the importance of these measures in managing the business, the Company uses non-GAAP measures and financial performance results in the evaluation process to establish management's compensation.
The non-GAAP measures exclude the effects of certain business combination accounting entries, stock-based compensation expense, amortization of acquired intangibles, acquisition-related expenses, and the benefit associated with favorable settlements of certain indemnification claims and indirect tax liabilities. The Company believes that these non-GAAP measures are helpful in understanding its past financial performance and its anticipated future results. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. A reconciliation of the Company's GAAP to non-GAAP measures is included in the financial schedules at the end of this release.
Forward-Looking Statements
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this press release may be construed as "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "expect," "anticipate," "intend," "plan," "believe," "could," "estimate," "may," "target," "strategy," "is intended to," "project," "guidance" and similar expressions, among others, identify forward-looking statements, which speak only as of the date the statement was made. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause the Company's actual results to differ from those expressed in such forward-looking statements. These risks and uncertainties include, among others, variation in demand for our products and services and the difficulty in predicting the completion of product acceptance and other factors affecting the timing of our license revenue recognition; the ongoing consolidation in the financial services, insurance, healthcare, and communications markets; reliance on third party relationships; the potential loss of vendor specific objective evidence for our time and materials professional services arrangements; the inherent risks associated with international operations and the continued weakness in international economies; foreign currency exchange rates; the financial impact of the Company's past acquisitions and any future acquisitions; and management of the Company's growth. Further information regarding these and other factors which could cause the Company's actual results to differ materially from any forward-looking statements contained in this press release is contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 and other recent filings with the Securities and Exchange Commission. These documents are available on the Company's website at http://www.pega.com/about/investors. The forward-looking statements contained in this press release represent the Company's views as of July 29, 2015. Investors are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved. Although subsequent events may cause the Company's view to change, except as required by applicable law, the Company does not undertake and specifically disclaims any obligation to publicly update or revise these forward-looking statements whether as the result of new information, future events or otherwise. The statements should therefore not be relied upon as representing the Company's view as of any date subsequent to July 29, 2015.
About Pegasystems
Pegasystems (NASDAQ: PEGA) develops strategic applications for sales, marketing, service, and operations. Pega's applications streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements. Pega's Global 2000 customers include many of the world's most sophisticated and successful enterprises. Pega's applications, available in the cloud or on-premises, are built on its unified Pega 7 platform, which uses visual tools to easily extend and change applications to meet clients' strategic business needs. Pega's clients report that Pega gives them the fastest time to value, extremely rapid deployment, efficient re-use, and global scale. For more information, please visit us at www.pega.com.
All trademarks are the property of their respective owners.
Pegasystems Inc.
Unaudited Condensed Consolidated Statements of Operations
($ in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2015 2014 2015 2014
--------- -------- -------- --------
Revenue:
Software license $ 63,497 $ 54,012 $121,472 $106,626
Maintenance 49,329 45,393 98,081 90,274
Services 49,193 43,580 96,384 86,549
========= ======== ======== ========
Total revenue 162,019 142,985 315,937 283,449
--------- -------- -------- --------
Cost of revenue:
Software license 1,030 1,177 2,106 2,756
Maintenance 5,476 5,044 10,656 9,708
Services 48,275 40,470 92,078 80,140
--------- -------- -------- --------
Total cost of revenue (1) 54,781 46,691 104,840 92,604
--------- -------- -------- --------
Gross profit 107,238 96,294 211,097 190,845
--------- -------- -------- --------
Operating expenses:
Selling and marketing 60,389 56,342 116,124 102,149
Research and development 31,372 27,323 61,216 51,932
General and administrative 10,214 10,250 16,559 19,552
Acquisition-related 13 157 39 363
--------- -------- -------- --------
Total operating expenses (1) 101,988 94,072 193,938 173,996
--------- -------- -------- --------
Income from operations 5,250 2,222 17,159 16,849
Foreign currency transaction (loss)
gain (968) (4) (3,930) 318
Interest income, net 216 163 529 287
Other income (expense), net 3 6 3 (526)
--------- -------- -------- --------
Income before provision for income
taxes 4,501 2,387 13,761 16,928
Provision for income taxes 1,397 883 4,722 5,659
--------- -------- -------- --------
Net income $ 3,104 $ 1,504 $ 9,039 $ 11,269
========= ======== ======== ========
Earnings per share :
Basic $ 0.04 $ 0.02 $ 0.12 $ 0.15
========= ======== ======== ========
Diluted $ 0.04 $ 0.02 $ 0.11 $ 0.14
========= ======== ======== ========
Weighted-average number of common
shares outstanding:
Basic 76,626 76,286 76,514 76,385
Diluted 78,950 78,280 78,771 78,563
Dividends declared per share $ 0.03 $ 0.03 $ 0.06 $ 0.045
========= ======== ======== ========
(1) Includes stock-based compensation
as follows:
Cost of revenue $ 2,281 $ 1,387 $ 4,234 $ 2,398
Operating expenses $ 6,364 $ 3,771 $ 10,680 $ 6,055
PEGASYSTEMS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in thousands, except per share amounts)
Three Months Ended June 30,
-----------------------------------------------------
2015 2015 2014 2014
GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
------------------------------------------------------
TOTAL REVENUE $162,019 $ - $162,019 $142,985 $ 883 $143,868
Software license 63,497 - 63,497 54,012 521 54,533
Maintenance 49,329 - 49,329 45,393 153 45,546
Services 49,193 - 49,193 43,580 209 43,789
TOTAL COST OF REVENUE $ 54,781 $(3,628) $ 51,153 $ 46,691 $(2,831) $ 43,860
Amortization of
intangible assets
(2) 1,347 (1,347) - 1,444 (1,444) -
Stock-based
compensation 2,281 (2,281) - 1,387 (1,387) -
GROSS MARGIN % 66% 68% 67% 70%
TOTAL OPERATING
EXPENSES (3) $101,988 $(8,149) $ 93,839 $ 94,072 $(5,908) $ 88,164
Amortization of
intangible assets
(2) 1,772 (1,772) - 1,980 (1,980) -
Stock-based
compensation 6,364 (6,364) - 3,771 (3,771) -
Acquisition-related 13 (13) - 157 (157) -
INCOME FROM OPERATIONS $ 5,250 $ 11,777 $ 17,027 $ 2,222 $ 9,622 $ 11,844
OPERATING MARGIN % 3% 11% 2% 8%
INCOME TAX EFFECTS (4) $ 1,397 $ 3,936 $ 5,333 $ 883 $ 3,137 $ 4,020
NET INCOME $ 3,104 $ 7,841 $ 10,945 $ 1,504 $ 6,485 $ 7,989
DILUTED EARNINGS PER
SHARE $ 0.04 $ 0.10 $ 0.14 $ 0.02 $ 0.08 $ 0.10
DILUTED WEIGHTED-
AVERAGE COMMON SHARES
OUTSTANDING 78,950 - 78,950 78,280 - 78,280
% Increase
(Decrease)
---------------------
GAAP Non-GAAP
---------------------
TOTAL REVENUE 13% 13%
Software license 18% 16%
Maintenance 9% 8%
Services 13% 12%
TOTAL COST OF REVENUE 17% 17%
Amortization of
intangible assets
(2)
Stock-based
compensation
GROSS MARGIN % (116) bp (109) bp
TOTAL OPERATING
EXPENSES (3) 8% 6%
Amortization of
intangible assets
(2)
Stock-based
compensation
Acquisition-related
INCOME FROM OPERATIONS 136% 44%
OPERATING MARGIN % 169 bp 228 bp
INCOME TAX EFFECTS (4) 58% 33%
NET INCOME 106% 37%
DILUTED EARNINGS PER
SHARE 100% 40%
DILUTED WEIGHTED-
AVERAGE COMMON SHARES
OUTSTANDING 1% 1%
PEGASYSTEMS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in thousands, except per share amounts)
Six Months Ended June 30,
-------------------------------------------------------
2015 2015 2014 2014
GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
----------------------------------------------------------------------------
TOTAL REVENUE $315,937 $ - $315,937 $283,449 $ 2,642 $286,091
Software license 121,472 - 121,472 106,626 1,043 107,669
Maintenance 98,081 - 98,081 90,274 375 90,649
Services 96,384 - 96,384 86,549 1,224 87,773
TOTAL COST OF
REVENUE $104,840 $ (6,849) $ 97,991 $ 92,604 $ (5,682) $ 86,922
Amortization of
intangible assets
(2) 2,690 (2,690) - 3,284 (3,284) -
Stock-based
compensation 4,234 (4,234) - 2,398 (2,398) -
Indemnification
claim and
indirect tax
settlements (75) 75 - - - -
GROSS MARGIN % 67% 69% 67% 70%
TOTAL OPERATING
EXPENSES (3) $193,938 $(10,431) $183,507 $173,996 $(10,314) $163,682
Amortization of
intangible assets
(2) 3,567 (3,567) - 3,896 (3,896) -
Stock-based
compensation 10,680 (10,680) - 6,055 (6,055) -
Indemnification
claim and
indirect tax
settlements (3,855) 3,855 -
Acquisition-
related 39 (39) - 363 (363) -
INCOME FROM
OPERATIONS $ 17,159 $ 17,280 $ 34,439 $ 16,849 $ 18,638 $ 35,487
OPERATING MARGIN % 5% 11% 6% 12%
INCOME TAX EFFECTS
(4) $ 4,722 $ 5,188 $ 9,910 $ 5,659 $ 6,212 $ 11,871
NET INCOME $ 9,039 $ 12,092 $ 21,131 $ 11,269 $ 12,426 $ 23,695
DILUTED EARNINGS PER
SHARE $ 0.11 $ 0.16 $ 0.27 $ 0.14 $ 0.16 $ 0.30
DILUTED WEIGHTED-
AVERAGE COMMON
SHARES OUTSTANDING 78,771 - 78,771 78,563 - 78,563
% Increase
(Decrease)
---------------------
GAAP Non-GAAP
-----------------------------------------
TOTAL REVENUE 11% 10%
Software license 14% 13%
Maintenance 9% 8%
Services 11% 10%
TOTAL COST OF
REVENUE 13% 13%
Amortization of
intangible assets
(2)
Stock-based
compensation
Indemnification
claim and
indirect tax
settlements
GROSS MARGIN % (51) bp (63) bp
TOTAL OPERATING
EXPENSES (3) 11% 12%
Amortization of
intangible assets
(2)
Stock-based
compensation
Indemnification
claim and
indirect tax
settlements
Acquisition-
related
INCOME FROM
OPERATIONS 2% (3%)
OPERATING MARGIN % (51) bp (150) bp
INCOME TAX EFFECTS
(4) (17%) (17%)
NET INCOME (20%) (11%)
DILUTED EARNINGS PER
SHARE (21%) (10%)
DILUTED WEIGHTED-
AVERAGE COMMON
SHARES OUTSTANDING 0% 0%
PEGASYSTEMS INC.
FOOTNOTES FOR RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures see disclosure under Discussion of Non-GAAP Financial Measures included earlier in this release and below. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:
Revenue: Business combination accounting rules require that we determine the fair value of the deferred revenue liability for contractual obligations assumed primarily from our acquisition of Antenna Software, Inc. and its subsidiaries ("Antenna") in October 2013. In post-acquisition reporting periods, we recognize revenue for the fair value of these contracts, when all the revenue recognition criteria are satisfied, instead of the revenue that would have been recognized by Antenna as an independent company. We add back the effect of the deferred revenue fair value adjustment in non-GAAP revenue to reflect the full amount of these revenues to provide a more complete comparison of the revenue guidance to peer companies. No adjustments were made to revenue for the first six months of 2015.
Amortization of intangible assets: We have excluded the amortization expense of intangible assets from our non-GAAP operating expenses and net earnings measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.
Stock-based compensation expense: We have excluded stock-based compensation expense from our non-GAAP operating expenses and net earnings measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expense.
Acquisition-related expenses: We have excluded the effect of acquisition-related expenses from our non-GAAP operating expenses and net earnings measures. We incurred direct and incremental expenses associated with the Antenna and 2014 acquisitions. These acquisition-related expenses were primarily professional fees to affect the acquisitions. We believe it is useful for investors to understand the effects of these items on our total operating expenses.
Indemnification claim and indirect tax settlements: We reached an agreement with the former shareholders of Antenna to release a portion of the funds held in escrow as security for their indemnification obligations to us in settlement of the outstanding indemnification claims. The settlement resulted in a benefit to cost of revenue and operating expenses in the first quarter of 2015. In addition, we favorably settled indirect tax liabilities related to the Antenna acquisition, which resulted in a benefit to operating expenses in the first quarter of 2015. We believe the benefit associated with the settlements of the Antenna indemnification claims and indirect tax liabilities is not representative of our ongoing business, and we have excluded the effects of these items from our non-GAAP operating results and net earnings measures.
(2) Estimated future annual amortization expense related to intangible assets as of June 30, 2015 is as follows:
(in thousands)
Remainder of 2015 $ 5,954
2016 11,524
2017 9,826
2018 8,826
2019 3,034
2020 and thereafter 255
=================
Total intangible assets subject to amortization $ 39,419
-----------------
(3) Below is a reconciliation of non-GAAP operating expenses:
Three Months Ended June 30,
-------------------------------------------------------
2015 2015 2014 2014
(in thousands) GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
----------------------------------------------------------------------------
Selling and
marketing $ 60,389 $ (3,866) $ 56,523 $ 56,342 $ (2,971) $ 53,371
Amortization of
intangible assets 1,534 (1,534) - 1,499 (1,499) -
Stock-based
compensation 2,332 (2,332) - 1,472 (1,472) -
Research and
development $ 31,372 $ (2,265) $ 29,107 $ 27,323 $ (1,106) $ 26,217
Stock-based
compensation 2,265 (2,265) - 1,106 (1,106) -
General and
administrative $ 10,214 $ (2,005) $ 8,209 $ 10,250 $ (1,674) $ 8,576
Amortization of
intangible assets 238 (238) - 481 (481) -
Stock-based
compensation 1,767 (1,767) - 1,193 (1,193) -
Acquisition-related $ 13 $ (13) $ - $ 157 $ (157) $ -
TOTAL OPERATING
EXPENSES $101,988 $ (8,149) $ 93,839 $ 94,072 $ (5,908) $ 88,164
Six Months Ended June 30,
-------------------------------------------------------
2015 2015 2014 2014
Non- Non-
(in thousands) GAAP Adj. GAAP GAAP Adj. GAAP
----------------------------------------------------------------------------
Selling and
marketing $116,124 $ (6,936) $109,188 $102,149 $ (5,431) $ 96,718
Amortization of
intangible assets 3,065 (3,065) - 2,995 (2,995) -
Stock-based
compensation 3,878 (3,878) - 2,436 (2,436) -
Indemnification
claim and
indirect tax
settlements (7) 7 - - - -
Research and
development $ 61,216 $ (3,691) $ 57,525 $ 51,932 $ (1,749) $ 50,183
Stock-based
compensation 4,131 (4,131) - 1,749 (1,749) -
Indemnification
claim and
indirect tax
settlements (440) 440 - - - -
General and
administrative $ 16,559 $ 235 $ 16,794 $ 19,552 $ (2,771) $ 16,781
Amortization of
intangible assets 502 (502) - 901 (901) -
Stock-based
compensation 2,671 (2,671) - 1,870 (1,870) -
Indemnification
claim and
indirect tax
settlements (3,408) 3,408 - - - -
Acquisition-related $ 39 $ (39) $ - $ 363 $ (363) $ -
TOTAL OPERATING
EXPENSES $193,938 $(10,431) $183,507 $173,996 $(10,314) $163,682
(4) The GAAP income tax effects were calculated using an effective tax rate of 31.0% and 37.0% for the second quarter of 2015 and 2014, respectively. The non-GAAP income tax effects were calculated using an effective non-GAAP tax rate of 32.8% and 33.5% for the second quarter of 2015 and 2014, respectively.
The GAAP income tax effects were calculated using an effective tax rate of 34.3% and 33.4% for the first six months of 2015 and 2014, respectively. The non-GAAP income tax effects were calculated using an effective non-GAAP tax rate of 31.9% and 33.4% for the first six months of 2015 and 2014, respectively.
The difference between our GAAP and non-GAAP effective tax rates in the second quarter of 2015 primarily relates to the impact of non-GAAP income subjected to tax in higher tax rate jurisdictions during the period. The difference between our GAAP and non-GAAP effective tax rates in the first six months of 2015 primarily relates to the impact of higher non-GAAP income subjected to tax in lower tax rate jurisdictions during the period.
Pegasystems Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
As of As of
June 30, December
2015 31, 2014
--------- ----------
Current Assets:
Cash and cash equivalents $ 120,864 $ 114,585
Marketable securities 106,068 96,631
--------- ----------
Total cash, cash equivalents, and marketable
securities 226,932 211,216
Trade accounts receivable, net 135,585 154,844
Deferred income taxes 12,948 12,974
Income taxes receivable 8,429 4,502
Other current assets 12,536 9,544
--------- ----------
Total current assets 396,430 393,080
Property and equipment, net 33,855 30,156
Long-term deferred income taxes 70,765 69,258
Long-term other assets 3,016 2,783
Intangible assets, net 39,419 45,664
Goodwill 46,882 46,860
Total assets $ 590,367 $ 587,801
========= ==========
Current liabilities:
Accounts payable $ 8,330 $ 4,752
Accrued expenses 40,326 42,958
Accrued compensation and related expenses 37,249 47,250
Deferred revenue 143,001 134,672
--------- ----------
Total current liabilities 228,906 229,632
Income taxes payable 24,919 24,896
Long-term deferred revenue 16,214 20,859
Other long-term liabilities 16,751 17,709
--------- ----------
Total liabilities 286,790 293,096
Stockholders' equity: 303,577 294,705
Total liabilities and stockholders' equity $ 590,367 $ 587,801
========= ==========
Pegasystems Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Six Months Ended
June 30,
2015 2014
---------- ----------
Operating activities:
Net income $ 9,039 $ 11,269
Adjustments to reconcile net income to cash provided
by operating activities:
Excess tax benefits from equity awards and
deferred income taxes (3,805) (3,425)
Depreciation, amortization, foreign currency
transaction loss (gain), and other non-cash items 15,738 11,589
Stock-based compensation expense 14,914 8,453
Change in operating assets and liabilities, net 3,513 46,049
---------- ----------
Cash provided by operating activities 39,399 73,935
---------- ----------
Cash used in investing activities (18,212) (18,008)
---------- ----------
Cash used in financing activities (13,234) (11,287)
---------- ----------
Effect of exchange rates on cash and cash equivalents (1,674) 2,240
---------- ----------
Net increase in cash and cash equivalents 6,279 46,880
Cash and cash equivalents, beginning of period 114,585 80,231
---------- ----------
Cash and cash equivalents, end of period $ 120,864 $ 127,111
========== ==========
Pegasystems Inc.
Historical License and Cloud Backlog
(in thousands)
----------------------------------------------------------------------------
2015 2015 2014 2014
Q2 Q1 Q4 Q3
----------------------------------------------------------------------------
Total billed deferred license and cloud
revenue 61,339 79,639 63,048 68,561
-----------------------------------
Total off-balance sheet license and
cloud commitments 330,043 294,412 301,409 265,309
-----------------------------------
TOTAL LICENSE AND CLOUD BACKLOG $391,382 $374,051 $364,457 $333,870
-----------------------------------
Pegasystems Inc.
Historical License and Cloud Backlog
(in thousands)
---------------------------------------------------------------------------
2014 2014 2013 2013
Q2 Q1 Q4 Q3
---------------------------------------------------------------------------
Total billed deferred license and cloud
revenue 54,938 62,741 64,267 34,644
-----------------------------------
Total off-balance sheet license and
cloud commitments 298,658 270,243 283,099 248,403
-----------------------------------
TOTAL LICENSE AND CLOUD BACKLOG $353,596 $332,984 $347,366 $283,047
-----------------------------------
Pegasystems Inc.
FY 2015 Reconciliation of Forward-Looking Guidance
($ in thousands, except per share amounts)
Fiscal Year 2015
-----------------------
Net Income and Diluted EPS - GAAP basis $ 38,943 $ 0.49
Adjustment to exclude amortization of intangible
assets, net of tax 7,769 0.10
Adjustment to exclude stock-based compensation, net
of tax 15,278 0.19
----------- -----------
Net Income and Diluted EPS - Non-GAAP basis $ 61,990 $ 0.78
=========== ===========
Press Contacts:Lisa Pintchman Pegasystems Inc. [email protected] (617) 866-6022 Twitter: https://twitter.com/pega Investor Contact: Sheila Ennis ICR for Pegasystems [email protected] 617-866-6077
Source: Pegasystems