Pegasystems (PEGA) reported $475.63 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 44.1%. EPS of $1.53 for the same period compares to $0.48 a year ago.
The reported revenue represents a surprise of +33.61% over the Zacks Consensus Estimate of $356 million. With the consensus EPS estimate being $0.46, the EPS surprise was +232.61%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Pegasystems performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Revenue- Subscription services: $227.49 million versus the three-analyst average estimate of $238.52 million. The reported number represents a year-over-year change of +7.4%.
- Revenue- Subscription license: $186.56 million compared to the $62.49 million average estimate based on three analysts. The reported number represents a change of +194.5% year over year.
- Revenue- Subscription: $414.05 million versus $301.01 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +50.4% change.
- Revenue- Perpetual license: $1.17 million versus $0.79 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +35.7% change.
- Revenue- Maintenance: $76.37 million compared to the $79.89 million average estimate based on three analysts.
- Revenue- Consulting: $60.42 million versus the three-analyst average estimate of $54.84 million. The reported number represents a year-over-year change of +11.8%.
- Revenue- Pega Cloud: $151.12 million compared to the $158.62 million average estimate based on three analysts.
- Gross Profit- Subscription services: $189.36 million compared to the $196.25 million average estimate based on two analysts.
- Gross Profit- Subscription: $375.53 million versus $259.15 million estimated by two analysts on average.
- Gross Profit- Subscription license: $186.17 million versus the two-analyst average estimate of $62.90 million.
Shares of Pegasystems have returned -12.2% over the past month versus the Zacks S&P 500 composite's -8.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
