Pegasystems Announces Financial Results for Third Quarter and Nine Months of 2015
CAMBRIDGE, MA -- (Marketwired) -- 10/27/15 -- Pegasystems Inc. (NASDAQ: PEGA), the software company empowering the world's leading enterprises with strategic business applications, today announced results for its third quarter and nine months ended September 30, 2015.
"We are very pleased with our strong performance this quarter and through the first nine months of 2015," said Alan Trefler, Founder and CEO of Pegasystems. "Once again, we exceeded our revenue goals while building backlog during what is often our most challenging quarter. Our strategy to reach a broader target base is bearing fruit, and we are seeing an increase in the number and size of deals from new logos, while continuing to expand our business with existing clients."
SELECTED GAAP & NON-GAAP RESULTS (1)
Three Months Ended September 30,
---------------------------------------
($ in thousands except
per share amounts) 2015 2015 2014 2014 % Increase
--------------
GAAP Non-GAAP GAAP Non-GAAP GAAP Non-GAAP
----------------------------------------------------------------------------
Total Revenue $ 162,403 $ 162,403 $ 137,631 $ 138,307 18% 17%
License Revenue $ 58,948 $ 58,948 $ 48,292 $ 48,814 22% 21%
Cloud Revenue $ 8,244 $ 8,244 $ 4,561 $ 4,620 81% 78%
Net Income $ 6,325 $ 13,247 $ 1,882 $ 8,368 236% 58%
Diluted Earnings per
share $ 0.08 $ 0.17 $ 0.02 $ 0.11 300% 55%
Nine Months Ended September 30,
---------------------------------------
($ in thousands except
per share amounts) 2015 2015 2014 2014 % Increase
--------------
Non-
GAAP Non-GAAP GAAP Non-GAAP GAAP GAAP
----------------------------------------------------------------------------
Total Revenue $ 478,340 $ 478,340 $ 421,080 $ 424,398 14% 13%
License Revenue $ 180,420 $ 180,420 $ 154,918 $ 156,483 16% 15%
Cloud Revenue $ 21,700 $ 21,700 $ 12,146 $ 12,802 79% 70%
Net Income $ 15,364 $ 34,378 $ 13,151 $ 32,063 17% 7%
Diluted Earnings per
share $ 0.19 $ 0.44 $ 0.17 $ 0.41 12% 7%
(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 September 30, 2015 was $224 million, up 6% from 2014 year-end.
Cash generated from operations for the nine months of 2015 was $55 million. Free Cash Flow, which we define as operating cash flow less Cap Ex, was $45 million for the nine months of 2015.
License and Cloud Backlog: The Company computes license and cloud backlog by adding billed deferred license and cloud revenue and off-balance sheet license and cloud commitments, which is business that is contracted, unbilled, and not recorded on the Company's balance sheet.
License and Cloud Backlog (1)
September 30,
($ in thousands) 2015 2014 % Increase
--------------------------------------------------------------------------
Total billed deferred license and cloud
revenue 55,370 68,561 (19%)
Total off-balance sheet license and cloud
commitments (2) 324,340 265,309 22%
TOTAL LICENSE AND CLOUD BACKLOG 379,710 333,870 14%
(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 September 30, 2015.
"Our results to date demonstrate continued strong execution toward our financial goals and evidence of transaction in the market across our product offerings," said Rafe Brown, Pegasystems CFO. "While the mix of deal types in a given quarter will significantly influence our results for that period, our growth in License and Cloud revenue, along with continued strength of our total backlog, indicates that our investments in sales, marketing, and product are paying off. We are thus continuing our investments in these areas and even accelerating some of our 2016 investments as a reflection of our confidence in the long-term prospects for the company."
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 five 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 by clicking the Earnings Calls link in the Investors section.
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 and restructuring 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 October 27, 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 October 27, 2015.
About Pegasystems
Pegasystems (NASDAQ: PEGA) develops strategic applications for marketing, sales, 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 Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
--------------------------------------------
Revenue:
Software license $ 58,948 $ 48,292 $ 180,420 $ 154,918
Maintenance 52,285 47,281 150,366 137,555
Services 51,170 42,058 147,554 128,607
--------------------------------------------
Total revenue 162,403 137,631 478,340 421,080
--------------------------------------------
Cost of revenue:
Software license 1,000 1,076 3,106 3,832
Maintenance 5,644 5,385 16,300 15,093
Services 48,797 39,921 140,875 120,061
--------------------------------------------
Total cost of revenue (1) 55,441 46,382 160,281 138,986
--------------------------------------------
Gross profit 106,962 91,249 318,059 282,094
--------------------------------------------
Operating expenses:
Selling and marketing 53,640 48,623 169,764 150,772
Research and development 33,032 28,558 94,248 80,490
General and administrative 9,579 8,825 26,138 28,377
Acquisition-related - 54 39 417
Restructuring - 192 - 192
--------------------------------------------
Total operating expenses (1) 96,251 86,252 290,189 260,248
--------------------------------------------
Income from operations 10,711 4,997 27,870 21,846
Foreign currency transaction
loss (412) (2,845) (4,342) (2,527)
Interest income, net 278 181 807 468
Other (expense) income, net (331) 19 (328) (507)
--------------------------------------------
Income before provision for
income taxes 10,246 2,352 24,007 19,280
Provision for income taxes 3,921 470 8,643 6,129
--------------------------------------------
Net income $ 6,325 $ 1,882 $ 15,364 $ 13,151
============================================
Earnings per share:
Basic $ 0.08 $ 0.02 $ 0.20 $ 0.17
============================================
Diluted $ 0.08 $ 0.02 $ 0.19 $ 0.17
============================================
Weighted-average number of
common shares outstanding:
Basic 76,543 76,351 76,521 76,312
Diluted 79,174 78,653 78,906 78,531
Dividends declared per share $ 0.03 $ 0.03 $ 0.09 $ 0.075
============================================
(1) Includes stock-based
compensation as follows:
Cost of revenue $ 2,285 $ 1,418 $ 6,519 $ 3,816
Operating expenses $ 5,806 $ 3,850 $ 16,486 $ 9,905
PEGASYSTEMS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in thousands, except per share amounts)
Three Months Ended September 30,
----------------------------------------------------
2015 2015 2014
GAAP Adj. Non-GAAP GAAP
----------------------------------------------------------------------------
TOTAL REVENUE $ 162,403 $ - $ 162,403 $ 137,631
Software license 58,948 - 58,948 48,292
Maintenance 52,285 - 52,285 47,281
Services 51,170 - 51,170 42,058
TOTAL COST OF REVENUE $ 55,441 $ (3,636) $ 51,805 $ 46,382
Amortization of
intangible assets (2) 1,351 (1,351) - 1,382
Stock-based
compensation 2,285 (2,285) - 1,418
GROSS MARGIN % 66% 68% 66%
TOTAL OPERATING EXPENSES
(3) $ 96,251 $ (7,434) $ 88,817 $ 86,252
Amortization of
intangible assets (2) 1,628 (1,628) - 2,075
Stock-based
compensation 5,806 (5,806) - 3,850
Acquisition-related - - - 54
Restructuring - - - 192
INCOME FROM OPERATIONS $ 10,711 $ 11,070 $ 21,781 $ 4,997
OPERATING MARGIN % 7% 13% 4%
INCOME TAX EFFECTS (4) $ 3,921 $ 4,148 $ 8,069 $ 470
NET INCOME $ 6,325 $ 6,922 $ 13,247 $ 1,882
DILUTED EARNINGS PER
SHARE $ 0.08 $ 0.09 $ 0.17 $ 0.02
DILUTED WEIGHTED-AVERAGE
COMMON SHARES
OUTSTANDING 79,174 - 79,174 78,653
PEGASYSTEMS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in thousands, except per share amounts)
% Increase
Three Months Ended (Decrease)
September 30,
------------------------- --------------------------
2014
Adj. Non-GAAP GAAP Non-GAAP
----------------------------------------------------------------------------
TOTAL REVENUE $ 676 $ 138,307 18% 17%
Software license 522 48,814 22% 21%
Maintenance 95 47,376 11% 10%
Services 59 42,117 22% 21%
TOTAL COST OF REVENUE $ (2,800) $ 43,582 20% 19%
Amortization of
intangible assets (2) (1,382) -
Stock-based
compensation (1,418) -
GROSS MARGIN % 68% (44) bp (39) bp
TOTAL OPERATING EXPENSES
(3) $ (6,171) $ 80,081 12% 11%
Amortization of
intangible assets (2) (2,075) -
Stock-based
compensation (3,850) -
Acquisition-related (54) -
Restructuring (192) -
INCOME FROM OPERATIONS $ 9,647 $ 14,644 114% 49%
OPERATING MARGIN % 11% 296 bp 282 bp
INCOME TAX EFFECTS (4) $ 3,161 $ 3,631 734% 122%
NET INCOME $ 6,486 $ 8,368 236% 58%
DILUTED EARNINGS PER
SHARE $ 0.09 $ 0.11 300% 55%
DILUTED WEIGHTED-AVERAGE
COMMON SHARES
OUTSTANDING - 78,653 1% 1%
PEGASYSTEMS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in thousands, except per share amounts)
Nine Months Ended September 30,
-------------------------------------------------
2015 2015 2014
GAAP Adj. Non-GAAP GAAP
-------------------------------------- -------------------------------------
TOTAL REVENUE $ 478,340 $ - $ 478,340 $ 421,080
Software license 180,420 - 180,420 154,918
Maintenance 150,366 - 150,366 137,555
Services 147,554 - 147,554 128,607
TOTAL COST OF REVENUE $ 160,281 $ (10,485)$ 149,796 $ 138,986
Amortization of
intangible assets (2) 4,041 (4,041) - 4,666
Stock-based compensation 6,519 (6,519) - 3,816
Indemnification claim and
indirect tax settlements (75) 75 - -
GROSS MARGIN % 66% 69% 67%
TOTAL OPERATING EXPENSES
(3) $ 290,189 $ (17,865)$ 272,324 $ 260,248
Amortization of
intangible assets (2) 5,195 (5,195) - 5,971
Stock-based compensation 16,486 (16,486) - 9,905
Indemnification claim and
indirect tax settlements (3,855) 3,855 - -
Acquisition-related 39 (39) - 417
Restructuring - - - 192
INCOME FROM OPERATIONS $ 27,870 $ 28,350 $ 56,220 $ 21,846
OPERATING MARGIN % 6% 12% 5%
INCOME TAX EFFECTS (4) $ 8,643 $ 9,336 $ 17,979 $ 6,129
NET INCOME $ 15,364 $ 19,014 $ 34,378 $ 13,151
DILUTED EARNINGS PER SHARE $ 0.19 $ 0.25 $ 0.44 $ 0.17
DILUTED WEIGHTED-AVERAGE
COMMON SHARES OUTSTANDING 78,906 - 78,906 78,531
PEGASYSTEMS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in thousands, except per share amounts)
% Increase
Nine Months Ended
September 30, (Decrease)
-------------------------------------------------
2014
Adj. Non-GAAP GAAP Non-GAAP
--------------------------- ----------- ------------------------------------
TOTAL REVENUE $ 3,318 $ 424,398 14% 13%
Software license 1,565 156,483 16% 15%
Maintenance 470 138,025 9% 9%
Services 1,283 129,890 15% 14%
TOTAL COST OF REVENUE $ (8,482) $ 130,504 15% 15%
Amortization of
intangible assets (2) (4,666) -
Stock-based compensation (3,816) -
Indemnification claim and
indirect tax settlements - -
GROSS MARGIN % 69% (50)bp (57)bp
TOTAL OPERATING EXPENSES
(3) $ (16,485) $ 243,763 12% 12%
Amortization of
intangible assets (2) (5,971) -
Stock-based compensation (9,905) -
Indemnification claim and
indirect tax settlements - -
Acquisition-related (417) -
Restructuring (192) -
INCOME FROM OPERATIONS $ 28,285 $ 50,131 28% 12%
OPERATING MARGIN % 12% 64 bp (6)bp
INCOME TAX EFFECTS (4) $ 9,373 $ 15,502 41% 16%
NET INCOME $ 18,912 $ 32,063 17% 7%
DILUTED EARNINGS PER SHARE $ 0.24 $ 0.41 12% 7%
DILUTED WEIGHTED-AVERAGE
COMMON SHARES OUTSTANDING - 78,531 0% 0%
PEGASYSTEMS INC.
FOOTNOTES FOR RECONCILIATON OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
- 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 nine 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 and restructuring expenses:We have excluded the effect of acquisition-related and restructuring 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 have also incurred restructuring expenses related to the integration of the Antenna acquisition, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Restructuring expenses consist primarily of lease exit costs. 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.
- Estimated future annual amortization expense related to intangible assets as of September 30, 2015 is as follows:
(in thousands)
Remainder of 2015 $ 2,972
2016 11,520
2017 9,822
2018 8,822
2019 and thereafter 3,276
------------
Total intangible assets subject to 36,412
amortization $
============
- Below is a reconciliation of non-GAAP operating expenses:
Three Months Ended September 30,
------------------------------------------------------------
2015 2015 2014 2014
(in thousands) GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
-------------------------- --------- --------- --------- --------- ---------
Selling and
marketing $ 53,640 $ (3,942) $ 49,698 $ 48,623 $ (2,927) $ 45,696
Amortization
of intangible
assets 1,537 (1,537) - 1,501 (1,501) -
Stock-based
compensation 2,405 (2,405) - 1,426 (1,426) -
Research and
development $ 33,032 $ (2,047) $ 30,985 $ 28,558 $ (1,452) $ 27,106
Stock-based
compensation 2,047 (2,047) - 1,452 (1,452) -
General and
administrative $ 9,579 $ (1,445) $ 8,134 $ 8,825 $ (1,546) $ 7,279
Amortization
of intangible
assets 91 (91) - 574 (574) -
Stock-based
compensation 1,354 (1,354) - 972 (972) -
Acquisition-
related $ - $ - $ - $ 54 $ (54) $ -
Restructuring $ - $ - $ - $ 192 $ (192) $ -
TOTAL OPERATING
EXPENSES $ 96,251 $ (7,434) $ 88,817 $ 86,252 $ (6,171) $ 80,081
Nine Months Ended September 30,
------------------------------------------------------------
2015 2015 2014 2014
(in thousands) GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
-------------------------- --------- --------- --------- --------- ---------
Selling and
marketing $ 169,764 $(10,878) $ 158,886 $ 150,772 $ (8,358) $ 142,414
Amortization
of intangible
assets 4,602 (4,602) - 4,496 (4,496) -
Stock-based
compensation 6,283 (6,283) - 3,862 (3,862) -
Indemnificatio
n claim and
indirect tax
settlements (7) 7 - - - -
Research and
development $ 94,248 $ (5,738) $ 88,510 $ 80,490 $ (3,201) $ 77,289
Stock-based
compensation 6,178 (6,178) - 3,201 (3,201) -
Indemnificatio
n claim and
indirect tax
settlements (440) 440 - - - -
General and
administrative $ 26,138 $ (1,210) $ 24,928 $ 28,377 $ (4,317) $ 24,060
Amortization
of intangible
assets 593 (593) - 1,475 (1,475) -
Stock-based
compensation 4,025 (4,025) - 2,842 (2,842) -
Indemnificatio
n claim and
indirect tax
settlements (3,408) 3,408 - - - -
Acquisition-
related $ 39 $ (39) $ - $ 417 $ (417) $ -
Restructuring $ - $ - $ - $ 192 $ (192) $ -
TOTAL OPERATING
EXPENSES $ 290,189 $(17,865) $ 272,324 $ 260,248 $(16,485) $ 243,763
- The GAAP income tax effects were calculated using an effective tax rate of 38.3% and 20.0% for the third quarter of 2015 and 2014, respectively. The non-GAAP income tax effects were calculated using an effective non-GAAP tax rate of 37.9% and 30.3% for the third quarter of 2015 and 2014, respectively.
- The GAAP income tax effects were calculated using an effective tax rate of 36.0% and 31.8% for the nine months of 2015 and 2014, respectively. The non-GAAP income tax effects were calculated using an effective non-GAAP tax rate of 34.3% and 32.6% for the nine months of 2015 and 2014, respectively.
- The differences between our GAAP and non-GAAP effective tax rates in the third quarter and nine months of 2015 primarily relate to the favorable impact of stock-based compensation expense adjustments on non-GAAP effective tax rates.
Pegasystems Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
As of September As of December
30, 2015 31, 2014
--------------- ---------------
Current Assets
Cash and cash equivalents $ 97,278 $ 114,585
Marketable securities 126,738 96,631
--------------- ---------------
Total cash, cash equivalents, and
marketable securities 224,016 211,216
Trade accounts receivable, net 129,252 154,844
Deferred income taxes 12,903 12,974
Income taxes receivable 14,688 4,502
Other current assets 12,310 9,544
--------------- ---------------
Total current assets 393,169 393,080
Property and equipment, net 31,830 30,156
Long-term deferred income taxes 71,998 69,258
Long-term other assets 3,715 2,783
Intangible assets, net 36,412 45,664
Goodwill 46,816 46,860
--------------- ---------------
Total assets $ 583,940 $ 587,801
=============== ===============
Current liabilities:
Accounts payable $ 7,617 $ 4,752
Accrued expenses 39,049 42,958
Accrued compensation and related expenses 43,386 47,250
Deferred revenue 134,075 134,672
--------------- ---------------
Total current liabilities 224,127 229,632
Income taxes payable 24,562 24,896
Long-term deferred revenue 13,857 20,859
Other long-term liabilities 16,348 17,709
--------------- ---------------
Total liabilities 278,894 293,096
Stockholders' equity: 305,046 294,705
--------------- ---------------
Total liabilities and stockholders'
equity $ 583,940 $ 587,801
=============== ===============
Pegasystems Inc.
Unaudited Condensed Consolidated Statements of Cash Flow
(in thousands)
Nine Months Ended September 30,
2015 2014
--------------- -------------
Operating activities:
Net income $ 15,364 $ 13,151
Adjustments to reconcile net income to cash
provided by operating activities:
Excess tax benefits from equity awards
and deferred income taxes (7,550) (5,599)
Depreciation, amortization, foreign
currency transaction loss, and other
non-cash items 23,041 20,633
Stock-based compensation expense 23,005 13,721
Change in operating assets and
liabilities, net 1,068 56,361
--------------- -------------
Cash provided by operating activities 54,928 98,267
--------------- -------------
Cash used in investing activities (42,736) (22,485)
--------------- -------------
Cash used in financing activities (25,662) (17,403)
--------------- -------------
Effect of exchange rates on cash and cash
equivalents (3,837) (2,065)
--------------- -------------
Net (decrease) increase in cash and cash
equivalents (17,307) 56,314
Cash and cash equivalents, beginning of
period 114,585 80,231
--------------- -------------
Cash and cash equivalents, end of period $ 97,278 136,545
=============== =============
Pegasystems Inc.
Historical License and Cloud Backlog
(in thousands)
----------------------------------------------------------------------------
2015 2015 2015 2014 2014
Q3 Q2 Q1 Q4 Q3
----------------------------------------------------------------------------
Total billed deferred
license and cloud
revenue 55,370 61,339 79,639 63,048 68,561
--------------------------------------------------
Total off-balance sheet
license and cloud
commitments 324,340 330,043 294,412 301,409 265,309
--------------------------------------------------
TOTAL LICENSE AND CLOUD
BACKLOG $ 379,710 $ 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
--------------------------------------------
Press Contact:Lisa PintchmanPegasystems [email protected](617) 866-6022Twitter: https://twitter.com/pegaInvestor Contact:Sheila EnnisICR for [email protected]
Source: Pegasystems