Pegasystems (NASDAQ: PEGA) reported Q2 EPS of $0.00, $0.19 worse than the analyst estimate of $0.19. Revenue for the quarter came in at $196.78 million versus the consensus estimate of $217.24 million.

"Our unique combination of customer engagement and digital process automation software continues to provide us a competitive advantage," said Alan Trefler, founder and CEO, Pegasystems. "We're pleased to see the acceleration in our clients' move to the cloud and more recurring arrangements, which is a positive long-term trend for our business."

"As we focused on driving much higher levels of recurring contract value and further penetration into the cloud, we set aggressive goals," said Ken Stillwell, CFO and Chief Administrative Officer. "I am very pleased to see our movement into recurring and cloud happen even faster than we anticipated. In the first half of 2018, more than 50% of our new client arrangements were cloud arrangements. A natural consequence of increasing ratable cloud arrangements is a reduction in reported revenue growth for the period. At the same time, our 31% year over year growth in term and cloud ACV highlights our underlying business momentum while in this transition."

For earnings history and earnings-related data on Pegasystems (PEGA) click here.