Pegasystems Announces Financial Results for Third Quarter and Nine Months of 2016
CAMBRIDGE, MA -- (Marketwired) -- 11/02/16 -- Pegasystems Inc. (NASDAQ: PEGA), the software company empowering customer engagement for the world's leading enterprises, today announced results for its third quarter and nine months ended September 30, 2016.
"We're pleased with our Q3 and year-to-date results," said Alan Trefler, founder and CEO, Pegasystems. "We continue to focus on delivering the industry's leading BPM and CRM applications to provide clients with dramatic business agility and positive business outcomes. We are delighted to see a growing number of leading organizations choosing our software to improve customer engagement and drive operational excellence."
SELECTED GAAP & NON-GAAP RESULTS (1)
Three Months Ended September 30,
-----------------------------------
($ in thousands except % Increase
per share amounts) (Decrease)
-------------
2016 2016 2015 2015 Non-
GAAP Non-GAAP GAAP Non-GAAP GAAP GAAP
--------------------------------------------------------------------------
Total Revenue $182,802 $183,460 $162,403 $162,403 13% 13%
License Revenue $ 68,833 $ 68,848 $ 58,948 $ 58,948 17% 17%
Cloud Revenue $ 10,873 $ 10,902 $ 8,244 $ 8,244 32% 32%
Net Income $ 2,418 $ 13,056 $ 6,325 $ 13,247 (62%) (1%)
Diluted Earnings per
share $ 0.03 $ 0.17 $ 0.08 $ 0.17 (63%) 0%
Nine Months Ended September 30,
-----------------------------------
($ in thousands except % Increase
per share amounts) (Decrease)
-------------
2016 2016 2015 2015 Non-
GAAP Non-GAAP GAAP Non-GAAP GAAP GAAP
--------------------------------------------------------------------------
Total Revenue $550,656 $552,164 $478,340 $478,340 15% 15%
License Revenue $207,849 $207,878 $180,420 $180,420 15% 15%
Cloud Revenue $ 30,640 $ 30,764 $ 21,700 $ 21,700 41% 42%
Net Income $ 15,070 $ 45,504 $ 15,364 $ 34,378 (2%) 32%
Diluted Earnings per
share $ 0.19 $ 0.58 $ 0.19 $ 0.44 0% 32%
(1) See a reconciliation of our GAAP to Non-GAAP measures contained in the
financial schedules at the end of this release.
"We are pleased with our year-to-date results through the third quarter of 2016," said Ken Stillwell, CFO, Pegasystems. "Our ability to grow GAAP and non-GAAP revenue by 15% in the face of currency headwinds and a significant shift to term license arrangements is a great indicator of our business momentum."
Cash: Total cash, cash equivalents, and marketable securities at September 30, 2016 was $129.7 million, down 40.8% from 2015 year-end, primarily due to the cash payment of $48.8 million to acquire OpenSpan, Inc. ("OpenSpan"), net of cash acquired.
Cash generated from operations for the nine months of 2016 was $17.4 million.
License and Cloud Backlog: The Company computes license and cloud backlog by adding deferred license and cloud revenue as recorded on the Company's balance sheet and license and cloud commitments, which are not yet billed and not recorded on its balance sheet.
License and Cloud Backlog (1)
September 30,
----------------------
($ in thousands) 2016 2015 % Change
--------------------------------------------------------------------------
Total deferred license and cloud revenue 47,280 55,370 (15%)
Total license and cloud commitments not
on the balance sheet (2) 372,532 324,340 15%
TOTAL LICENSE AND CLOUD BACKLOG 419,812 379,710 11%
(1) See historical quarterly license and cloud backlog amounts 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 quarter
ended September 30, 2016.
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: 1-877-705-6003 (domestic) or 1-201-493-6725 (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 certain other adjustments. 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", or variations of such words 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, including the OpenSpan acquisition, and any future acquisitions; the potential legal and financial liabilities and reputation damage due to cyber-attacks and security breaches; 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, 2015 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 November 2, 2016. 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 November 2, 2016.
About Pegasystems
Pegasystems Inc. (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 3000 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 software 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,
2016 2015 2016 2015
--------- --------- --------- ---------
Revenue:
Software license $ 68,833 $ 58,948 $ 207,849 $ 180,420
Maintenance 55,038 52,285 163,174 150,366
Services 58,931 51,170 179,633 147,554
--------- --------- --------- ---------
Total revenue 182,802 162,403 550,656 478,340
--------- --------- --------- ---------
Cost of revenue:
Software license 1,313 1,000 3,646 3,106
Maintenance 6,659 5,644 18,889 16,300
Services 52,465 48,797 154,512 140,875
--------- --------- --------- ---------
Total cost of revenue (1) 60,437 55,441 177,047 160,281
--------- --------- --------- ---------
Gross profit 122,365 106,962 373,609 318,059
--------- --------- --------- ---------
Operating expenses:
Selling and marketing 67,032 53,640 202,126 169,764
Research and development 38,036 33,032 108,530 94,248
General and administrative 11,725 9,579 34,067 26,138
Acquisition-related 74 - 2,616 39
Restructuring - - 287 -
--------- --------- --------- ---------
Total operating expenses (1) 116,867 96,251 347,626 290,189
--------- --------- --------- ---------
Income from operations 5,498 10,711 25,983 27,870
Foreign currency transaction
gain (loss) 1,082 (412) 2,764 (4,342)
Interest income, net 172 278 650 807
Other expense, net (1,237) (331) (4,891) (328)
--------- --------- --------- ---------
Income before provision for
income taxes 5,515 10,246 24,506 24,007
Provision for income taxes 3,097 3,921 9,436 8,643
--------- --------- --------- ---------
Net income $ 2,418 $ 6,325 $ 15,070 $ 15,364
========= ========= ========= =========
Earnings per share :
Basic $ 0.03 $ 0.08 $ 0.20 $ 0.20
========= ========= ========= =========
Diluted $ 0.03 $ 0.08 $ 0.19 $ 0.19
========= ========= ========= =========
Weighted-average number of
common shares outstanding:
Basic 76,278 76,534 76,323 76,521
Diluted 79,082 79,174 78,976 78,906
Dividends declared per share $ 0.03 $ 0.03 $ 0.09 $ 0.09
========= ========= ========= =========
(1) Includes stock-based
compensation as follows:
Cost of revenue $ 3,117 $ 2,285 $ 8,711 $ 6,519
Operating expenses $ 7,701 $ 5,806 $ 21,923 $ 16,486
PEGASYSTEMS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($in thousands, except per share amounts)
Three Months Ended September 30,
----------------------------------------------------------
2016 2015
2016 GAAP Adj. Non-GAAP 2015 GAAP Adj. Non-GAAP
----------------------------------------------------------------------------
TOTAL REVENUE $182,802 $ 658 $183,460 $162,403 $ - $162,403
Software license 68,833 15 68,848 58,948 - 58,948
Maintenance 55,038 614 55,652 52,285 - 52,285
Services 58,931 29 58,960 51,170 - 51,170
TOTAL COST OF
REVENUE $ 60,437 $(4,759) $ 55,678 $ 55,441 $(3,636) $ 51,805
Amortization of
intangible
assets (2) 1,642 (1,642) - 1,351 (1,351) -
Stock-based
compensation 3,117 (3,117) - 2,285 (2,285) -
GROSS MARGIN % 67% 70% 66% 68%
TOTAL OPERATING
EXPENSES (3) 116,867 (9,742) 107,125 96,251 (7,434) 88,817
Amortization of
intangible
assets (2) 1,957 (1,957) - 1,628 (1,628) -
Stock-based
compensation 7,701 (7,701) - 5,806 (5,806) -
Acquisition-
related 84 (84) - - - -
INCOME FROM
OPERATIONS $ 5,498 $15,159 $ 20,657 $ 10,711 $11,070 21,781
OPERATING MARGIN % 3% 11% 7% 13%
INCOME TAX EFFECTS
(4) $ 3,097 $ 4,521 $ 7,618 $ 3,921 $ 4,148 $ 8,069
NET INCOME $ 2,418 $10,638 $ 13,056 $ 6,325 $ 6,922 $ 13,247
DILUTED EARNINGS
PER SHARE $ 0.03 $ 0.14 $ 0.17 $ 0.08 $ 0.09 $ 0.17
DILUTED WEIGHTED-
AVERAGE COMMON
SHARES
OUTSTANDING 79,082 - 79,082 79,174 - 79,174
% Increase (Decrease)
---------------------
GAAP Non-GAAP
---------------------------------------
TOTAL REVENUE 13% 13%
Software license 17% 17%
Maintenance 5% 6%
Services 15% 15%
TOTAL COST OF
REVENUE 9% 7%
Amortization of
intangible
assets (2)
Stock-based
compensation
GROSS MARGIN % 108 bp 155 bp
TOTAL OPERATING
EXPENSES (3) 21% 21%
Amortization of
intangible
assets (2)
Stock-based
compensation
Acquisition-
related
INCOME FROM
OPERATIONS (49%) (5%)
OPERATING MARGIN % (359) bp (215) bp
INCOME TAX EFFECTS
(4) (21%) (6%)
NET INCOME (62%) (1%)
DILUTED EARNINGS
PER SHARE (63%) 0%
DILUTED WEIGHTED-
AVERAGE COMMON
SHARES
OUTSTANDING 0% 0%
PEGASYSTEMS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($in thousands, except per share amounts)
Nine Months Ended September 30,
------------------------------------------------------------
2016 2016 2015 2015
GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
----------------------------------------------------------------------------
TOTAL REVENUE $550,656 $ 1,508 $552,164 $478,340 $ - $478,340
Software
license 207,849 29 207,878 180,420 - 180,420
Maintenance 163,174 1,343 164,517 150,366 - 150,366
Services 179,633 136 179,769 147,554 - 147,554
TOTAL COST OF
REVENUE $177,047 $(13,337) $163,710 $160,281 $(10,485) $149,796
Amortization
of intangible
assets (2) 4,626 (4,626) - 4,041 (4,041) -
Stock-based
compensation 8,711 (8,711) - 6,519 (6,519) -
Other
adjustments - - - (75) 75 -
GROSS MARGIN % 68% 70% 66% 69%
TOTAL OPERATING
EXPENSES (3) $347,626 $(29,806) $317,820 $290,189 $(17,865) $272,324
Amortization
of intangible
assets (2) 5,542 (5,542) - 5,195 (5,195) -
Stock-based
compensation 21,923 (21,923) - 16,486 (16,486) -
Other
adjustments (220) 220 - (3,855) 3,855 -
Acquisition-
related 2,274 (2,274) - 39 (39) -
Restructuring 287 (287) - - - -
INCOME FROM
OPERATIONS $ 25,983 $ 44,651 $ 70,634 $ 27,870 $ 28,350 $ 56,220
OPERATING MARGIN
% 5% 13% 6% 12%
INCOME TAX
EFFECTS (4) $ 9,436 $ 14,218 $ 23,654 $ 8,643 $ 9,336 $ 17,979
NET INCOME $ 15,070 $ 30,434 $ 45,504 $ 15,364 $ 19,014 $ 34,378
DILUTED EARNINGS
PER SHARE $ 0.19 $ 0.39 $ 0.58 $ 0.19 $ 0.25 $ 0.44
DILUTED
WEIGHTED-
AVERAGE COMMON
SHARES
OUTSTANDING 78,976 - 78,976 78,906 - 78,906
% Increase (Decrease)
---------------------
GAAP Non-GAAP
-------------------------------------
TOTAL REVENUE 15% 15%
Software
license 15% 15%
Maintenance 9% 9%
Services 22% 22%
TOTAL COST OF
REVENUE 10% 9%
Amortization
of intangible
assets (2)
Stock-based
compensation
Other
adjustments
GROSS MARGIN % 136 bp 167 bp
TOTAL OPERATING
EXPENSES (3) 20% 17%
Amortization
of intangible
assets (2)
Stock-based
compensation
Other
adjustments
Acquisition-
related
Restructuring
INCOME FROM
OPERATIONS (7%) 26%
OPERATING MARGIN
% (111) bp 104 bp
INCOME TAX
EFFECTS (4) 9% 32%
NET INCOME (2%) 32%
DILUTED EARNINGS
PER SHARE 0% 32%
DILUTED
WEIGHTED-
AVERAGE COMMON
SHARES
OUTSTANDING 0% 0%
PEGASYSTEMS INC.
FOOTNOTES FOR RECONCILIATON 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 from our acquisition of OpenSpan in April 2016. 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 OpenSpan 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 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 primarily with the OpenSpan acquisition. These acquisition-related expenses were primarily professional fees to affect the acquisition. We have also incurred restructuring expenses for one-time employee termination benefits related to the closure of one of our domestic offices, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. We believe it is useful for investors to understand the effects of these items on our total operating expenses.
Other adjustments: We reached an agreement with the former shareholders of Antenna Software, Inc., which we acquired in October 2013 ("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. In the second quarter of 2016, we reduced our estimate of the additional cash consideration payable to the selling shareholders of one of the three companies acquired in 2014 based on the achievement of certain milestones. We believe the benefits associated with these items are 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 September 30, 2016 is as follows:
(in thousands)
Remainder of 2016 $ 3,267
2017 12,335
2018 11,335
2019 5,543
2020 2,647
2021 and thereafter 12,335
--------
Total intangible assets subject to amortization $ 47,462
--------
(3) Below is a reconciliation of non-GAAP operating expenses:
Three Months Ended September 30,
----------------------------------------------------------
2016 2016 2015 2015
(in thousands) GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
----------------------------------------------------------------------------
Selling and
marketing $ 67,032 $ (5,335) $ 61,697 $ 53,640 $ (3,942) $ 49,698
Amortization of
intangible
assets 1,867 (1,867) - 1,537 (1,537) -
Stock-based
compensation 3,468 (3,468) - 2,405 (2,405) -
Research and
development $ 38,036 $ (2,260) $ 35,776 $ 33,032 $ (2,047) $ 30,985
Stock-based
compensation 2,260 (2,260) - 2,047 (2,047) -
General and
administrative $ 11,725 $ (2,073) $ 9,652 $ 9,579 $ (1,445) $ 8,134
Amortization of
intangible
assets 90 (90) - 91 (91) -
Stock-based
compensation 1,983 (1,983) - 1,354 (1,354) -
Acquisition-
related $ 74 $ (74) $ - $ - $ - $ -
Stock-based
compensation (10) 10 - - - -
Acquisition-
related 84 (84) - - - -
TOTAL OPERATING
EXPENSES $116,867 $ (9,742) $ 107,125 $ 96,251 $ (7,434) $ 88,817
Nine Months Ended September 30,
----------------------------------------------------------
2016 2016 2015 2015
(in thousands) GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
----------------------------------------------------------------------------
Selling and
marketing $202,126 $(14,449) $ 187,677 $169,764 $(10,878) $158,886
Amortization of
intangible
assets 5,274 (5,274) - 4,602 (4,602) -
Stock-based
compensation 9,395 (9,395) - 6,283 (6,283) -
Other
adjustments (220) 220 - (7) 7 -
Research and
development $108,530 $ (7,480) $ 101,050 $ 94,248 $ (5,738) $ 88,510
Stock-based
compensation 7,480 (7,480) - 6,178 (6,178) -
Other
adjustments - - - (440) 440 -
General and
administrative $ 34,067 $ (4,974) $ 29,093 $ 26,138 $ (1,210) $ 24,928
Amortization of
intangible
assets 268 (268) - 593 (593) -
Stock-based
compensation 4,706 (4,706) - 4,025 (4,025) -
Other
adjustments - - - (3,408) 3,408 -
Acquisition-
related $ 2,616 $ (2,616) $ - $ 39 $ (39) $ -
Stock-based
compensation 342 (342) - - - -
Acquisition-
related 2,274 (2,274) - 39 (39) -
Restructuring $ 287 $ (287) $ - $ - $ - $ -
TOTAL OPERATING
EXPENSES $347,626 $(29,806) $ 317,820 $290,189 $(17,865) $272,324
(4) The GAAP income tax effects were calculated using an effective GAAP tax rate of 56.2% and 38.3% for the third quarter of 2016 and 2015, respectively. The non-GAAP income tax effects were calculated using an effective non-GAAP tax rate of 36.9% and 37.9% for the third quarter of 2016 and 2015, respectively.
The GAAP income tax effects were calculated using an effective GAAP tax rate of 38.5% and 36.0% for the nine months of 2016 and 2015, respectively. The non-GAAP income tax effects were calculated using an effective non-GAAP tax rate of 34.2% and 34.3% for the nine months of 2016 and 2015, respectively.
The differences between our GAAP and non-GAAP effective tax rates in the third quarter and nine months of 2016 and 2015 primarily relate to the impact of unfavorable foreign stock compensation adjustments on our GAAP effective tax rate.
Pegasystems Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
As of As of
September 30, December 31,
2016 2015
------------- -------------
Assets:
Cash, cash equivalents, and marketable
securities $ 129,730 $ 219,078
Trade accounts receivable, net 208,562 211,846
Property and equipment, net 39,343 31,319
Long-term deferred income taxes 53,905 53,350
Goodwill and Intangible assets, net 121,333 80,194
Other assets 44,122 31,971
------------- -------------
Total assets $ 596,995 $ 627,758
============= =============
Liabilities and Stockholders' Equity:
Accrued expenses, including compensation and
related expenses 88,440 98,640
Deferred revenue 150,686 171,678
Other liabilities 30,449 34,581
Stockholders' equity 327,420 322,859
------------- -------------
Total liabilities and stockholders' equity $ 596,995 $ 627,758
============= =============
Pegasystems Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Nine Months Ended
September 30,
2016 2015
------------ ------------
Operating activities:
Net income $ 15,070 $ 15,364
Adjustments to reconcile net income to cash
provided by operating activities:
Excess tax benefits from equity awards and
deferred income taxes (6,001) (7,550)
Depreciation, amortization, foreign currency
transaction (gain) loss, and other non-cash
items 15,285 23,041
Stock-based compensation expense 30,634 23,005
Change in operating assets and liabilities,
net (37,592) 1,068
------------ ------------
Cash provided by operating activities 17,396 54,928
------------ ------------
Cash used in investing activities (2,859) (42,736)
------------ ------------
Cash used in financing activities (39,871) (25,662)
------------ ------------
Effect of exchange rates on cash and cash
equivalents (1,309) (3,837)
------------ ------------
Net decrease in cash and cash equivalents (26,643) (17,307)
Cash and cash equivalents, beginning of period 93,026 114,585
------------ ------------
Cash and cash equivalents, end of period $ 66,383 $ 97,278
============ ============
Pegasystems Inc.
Historical License and Cloud Backlog
(in thousands)
----------------------------------------------------------------------------
2016 2016 2016 2015
Q3 Q2 Q1 Q4
----------------------------------------------------------------------------
Total deferred license and cloud
revenue 47,280 51,855 57,790 63,412
----------------------------------------
Total license and cloud
commitments not on the balance
sheet 372,532 340,777 331,870 356,388
----------------------------------------
TOTAL LICENSE AND CLOUD BACKLOG $ 419,812 $ 392,632 $ 389,660 $ 419,800
========================================
---------------------------------------------------------------------------
2015 2015 2015 2014
Q3 Q2 Q1 Q4
---------------------------------------------------------------------------
Total deferred license and cloud
revenue 55,370 61,339 79,639 63,048
---------------------------------------
Total license and cloud
commitments not on the balance
sheet 324,340 330,043 294,412 301,409
---------------------------------------
TOTAL LICENSE AND CLOUD BACKLOG $ 379,710 $ 391,382 $ 374,051 $ 364,457
=======================================
Press Contacts:Lisa Pintchman Pegasystems Inc. [email protected] (617) 866-6022 Twitter: @pega Investor Contact: Garo Toomajanian ICR for Pegasystems [email protected] 617-866-6077
Source: Pegasystems