Pega Cloud ACV Grows 65% in the First Half of 2019

- Total ACV of $613 million, powered by Pega Cloud Choice(TM)

Published

CAMBRIDGE, Mass., Aug. 7, 2019 /PRNewswire/ -- Pegasystems Inc. (NASDAQ: PEGA), the software company empowering digital transformation at the world's leading enterprises, released its financial results for the second quarter of 2019.

"At mid-year, I'm excited with the strong progress we're making in our business and in our transition to cloud," said Alan Trefler, founder and CEO, Pegasystems. "I'm pleased with how our strategy is working, and we continue to gain traction in seizing the huge opportunity in front of us."

"Pega Cloud ACV increased 65% year over year, reaching $136 million," said Ken Stillwell, CFO, Pegasystems. "This strong ACV growth reflects solid demand worldwide for digital transformation solutions."

Financial metrics (1)

(Dollars in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30,
2019 2018 Change 2019 2018 Change
Total revenue $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) %
Subscription revenue (2) $ 125,982 $ 117,416 7 % $ 269,760 $ 262,218 3 %
Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 *
Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 *
Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 *
Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 *

(Dollars in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30,
2019 2018 Change 2019 2018 Change * not meaningful
Total revenue $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) %
Subscription revenue (2) $ 125,982 $ 117,416 7 % $ 269,760 $ 262,218 3 % (1) A reconciliation of the GAAP measures to our Non-GAAP measures is contained in the financial schedules at the end of this release.
Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 *
Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * (2) Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal.
Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 *
Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 *

 

(Dollars in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30, (Dollars in thousands) Three Months EndedJune 30, Six Months EndedJune 30,
2019 2018 Change 2019 2018 Change * not meaningful 2019 2018 Change 2019 2018 Change
Total revenue $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Cloud $ 31,699 15 % $ 20,201 10 % $ 11,498 57 % $ 59,457 14 % $ 35,783 8 % $ 23,674 66 %
Subscription revenue (2) $ 125,982 $ 117,416 7 % $ 269,760 $ 262,218 3 % (1) A reconciliation of the GAAP measures to our Non-GAAP measures is contained in the financial schedules at the end of this release. Term license 24,954 12 % 31,309 16 % (6,355) (20) % 73,268 18 % 96,004 22 % (22,736) (24) %
Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Maintenance 69,329 34 % 65,906 34 % 3,423 5 % 137,035 33 % 130,431 31 % 6,604 5 %
Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * (2) Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal. Subscription 125,982 61 % 117,416 60 % 8,566 7 % 269,760 65 % 262,218 61 % 7,542 3 %
Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 * Perpetual license 19,320 9 % 13,475 7 % 5,845 43 % 34,270 8 % 36,553 8 % (2,283) (6) %
Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 * Consulting 60,290 30 % 65,888 33 % (5,598) (8) % 114,108 27 % 133,190 31 % (19,082) (14) %
Total revenue $ 205,592 100 % $ 196,779 100 % $ 8,813 4 % $ 418,138 100 % $ 431,961 100 % $ (13,823) (3) %

 

Annual contract value ("ACV") (1) (2)

The change in ACV measures the growth and predictability of future cash flows from Pega Cloud and Client Cloud committed arrangements as of the end of the particular reporting period.

 

(Dollars in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30, (Dollars in thousands) Three Months EndedJune 30, Six Months EndedJune 30, June 30, Change Constant CurrencyChange
2019 2018 Change 2019 2018 Change * not meaningful 2019 2018 Change 2019 2018 Change (Dollars in thousands) 2019 2018
Total revenue $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Cloud $ 31,699 15 % $ 20,201 10 % $ 11,498 57 % $ 59,457 14 % $ 35,783 8 % $ 23,674 66 % Maintenance ACV $ 277,316 $ 263,624 $ 13,692 5 % 7 %
Subscription revenue (2) $ 125,982 $ 117,416 7 % $ 269,760 $ 262,218 3 % (1) A reconciliation of the GAAP measures to our Non-GAAP measures is contained in the financial schedules at the end of this release. Term license 24,954 12 % 31,309 16 % (6,355) (20) % 73,268 18 % 96,004 22 % (22,736) (24) % Term ACV 199,299 168,528 30,771 18 % 19 %
Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Maintenance 69,329 34 % 65,906 34 % 3,423 5 % 137,035 33 % 130,431 31 % 6,604 5 % Client Cloud ACV 476,615 432,152 44,463 10 % 12 %
Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * (2) Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal. Subscription 125,982 61 % 117,416 60 % 8,566 7 % 269,760 65 % 262,218 61 % 7,542 3 % Pega Cloud ACV 136,074 82,376 53,698 65 % 67 %
Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 * Perpetual license 19,320 9 % 13,475 7 % 5,845 43 % 34,270 8 % 36,553 8 % (2,283) (6) % Total ACV $ 612,689 $ 514,528 $ 98,161 19 % 21 %
Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 * Consulting 60,290 30 % 65,888 33 % (5,598) (8) % 114,108 27 % 133,190 31 % (19,082) (14) %
Total revenue $ 205,592 100 % $ 196,779 100 % $ 8,813 4 % $ 418,138 100 % $ 431,961 100 % $ (13,823) (3) %

(Dollars in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30, (Dollars in thousands) Three Months EndedJune 30, Six Months EndedJune 30, June 30, Change Constant CurrencyChange
2019 2018 Change 2019 2018 Change * not meaningful 2019 2018 Change 2019 2018 Change (Dollars in thousands) 2019 2018 (1) Total ACV, as of a given date, is the sum of the following two components:
Total revenue $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Cloud $ 31,699 15 % $ 20,201 10 % $ 11,498 57 % $ 59,457 14 % $ 35,783 8 % $ 23,674 66 % Maintenance ACV $ 277,316 $ 263,624 $ 13,692 5 % 7 %
Subscription revenue (2) $ 125,982 $ 117,416 7 % $ 269,760 $ 262,218 3 % (1) A reconciliation of the GAAP measures to our Non-GAAP measures is contained in the financial schedules at the end of this release. Term license 24,954 12 % 31,309 16 % (6,355) (20) % 73,268 18 % 96,004 22 % (22,736) (24) % Term ACV 199,299 168,528 30,771 18 % 19 % Client Cloud: the sum of (1) the annual value of each term license contract in effect on such date, which is equal to its total license value divided by the total number of years and (2) maintenance revenue reported for the quarter ended on such date, multiplied by four. We do not provide hosting for Client Cloud arrangements.
Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Maintenance 69,329 34 % 65,906 34 % 3,423 5 % 137,035 33 % 130,431 31 % 6,604 5 % Client Cloud ACV 476,615 432,152 44,463 10 % 12 % Pega Cloud: the total of the annual value of each cloud contract in effect on such date, which is equal to its total value divided by the total number of years.
Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * (2) Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal. Subscription 125,982 61 % 117,416 60 % 8,566 7 % 269,760 65 % 262,218 61 % 7,542 3 % Pega Cloud ACV 136,074 82,376 53,698 65 % 67 %
Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 * Perpetual license 19,320 9 % 13,475 7 % 5,845 43 % 34,270 8 % 36,553 8 % (2,283) (6) % Total ACV $ 612,689 $ 514,528 $ 98,161 19 % 21 % (2) As foreign currency exchange rates are an important factor in understanding period to period comparisons, we believe the presentation of ACV growth rates on a constant currency basis enhances the understanding of our results and evaluation of our performance in comparison to prior periods. The percent change in constant currency is calculated by applying the applicable current period exchange rates to prior period ACV.
Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 * Consulting 60,290 30 % 65,888 33 % (5,598) (8) % 114,108 27 % 133,190 31 % (19,082) (14) %
Total revenue $ 205,592 100 % $ 196,779 100 % $ 8,813 4 % $ 418,138 100 % $ 431,961 100 % $ (13,823) (3) %

 

Remaining performance obligations ("RPO")

Expected future revenue on existing contracts:

(Dollars in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30, (Dollars in thousands) Three Months EndedJune 30, Six Months EndedJune 30, June 30, Change Constant CurrencyChange June 30, 2019
2019 2018 Change 2019 2018 Change * not meaningful 2019 2018 Change 2019 2018 Change (Dollars in thousands) 2019 2018 (1) Total ACV, as of a given date, is the sum of the following two components: (Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total
Total revenue $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Cloud $ 31,699 15 % $ 20,201 10 % $ 11,498 57 % $ 59,457 14 % $ 35,783 8 % $ 23,674 66 % Maintenance ACV $ 277,316 $ 263,624 $ 13,692 5 % 7 % 1 year or less $ 8,429 $ 38,080 $ 173,421 $ 124,134 $ 16,259 $ 360,323 57 %
Subscription revenue (2) $ 125,982 $ 117,416 7 % $ 269,760 $ 262,218 3 % (1) A reconciliation of the GAAP measures to our Non-GAAP measures is contained in the financial schedules at the end of this release. Term license 24,954 12 % 31,309 16 % (6,355) (20) % 73,268 18 % 96,004 22 % (22,736) (24) % Term ACV 199,299 168,528 30,771 18 % 19 % Client Cloud: the sum of (1) the annual value of each term license contract in effect on such date, which is equal to its total license value divided by the total number of years and (2) maintenance revenue reported for the quarter ended on such date, multiplied by four. We do not provide hosting for Client Cloud arrangements. 1-2 years 915 4,678 12,530 98,842 942 117,907 19 %
Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Maintenance 69,329 34 % 65,906 34 % 3,423 5 % 137,035 33 % 130,431 31 % 6,604 5 % Client Cloud ACV 476,615 432,152 44,463 10 % 12 % Pega Cloud: the total of the annual value of each cloud contract in effect on such date, which is equal to its total value divided by the total number of years. 2-3 years 1,306 641 5,801 75,828 227 83,803 13 %
Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * (2) Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal. Subscription 125,982 61 % 117,416 60 % 8,566 7 % 269,760 65 % 262,218 61 % 7,542 3 % Pega Cloud ACV 136,074 82,376 53,698 65 % 67 % Greater than 3 years 185 2,812 63,259 66,256 11 %
Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 * Perpetual license 19,320 9 % 13,475 7 % 5,845 43 % 34,270 8 % 36,553 8 % (2,283) (6) % Total ACV $ 612,689 $ 514,528 $ 98,161 19 % 21 % (2) As foreign currency exchange rates are an important factor in understanding period to period comparisons, we believe the presentation of ACV growth rates on a constant currency basis enhances the understanding of our results and evaluation of our performance in comparison to prior periods. The percent change in constant currency is calculated by applying the applicable current period exchange rates to prior period ACV. $ 10,650 $ 43,584 $ 194,564 $ 362,063 $ 17,428 $ 628,289 100 %
Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 * Consulting 60,290 30 % 65,888 33 % (5,598) (8) % 114,108 27 % 133,190 31 % (19,082) (14) % Change in RPO Since June 30, 2018
Total revenue $ 205,592 100 % $ 196,779 100 % $ 8,813 4 % $ 418,138 100 % $ 431,961 100 % $ (13,823) (3) % $ (36,623) $ 6,640 $ 32,273 $ 148,253 $ 1,086 $ 151,629
(77) % 18 % 20 % 69 % 7 % 32 %
June 30, 2018
(Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total
1 year or less $ 28,626 $ 20,457 $ 111,086 $ 41,036 $ 12,039 $ 213,244 45 %
1-2 years 15,862 9,878 43,837 66,529 4,103 140,209 29 %
2-3 years 2,423 5,665 5,265 50,250 63,603 13 %
Greater than 3 years 362 944 2,103 55,995 200 59,604 13 %
$ 47,273 $ 36,944 $ 162,291 $ 213,810 $ 16,342 $ 476,660 100 %

 

Quarterly conference call

A conference call and audio-only webcast will be conducted at 5:00 p.m. EDT on August 7, 2019.

Members of the public and investors are invited to join the call and participate in the question and answer session by dialing 1-800-289-0438 (domestic), 1-323-794-2423 (international), or via webcast by logging onto http://www.pega.com/ at least five minutes prior to the event's broadcast and clicking on the webcast icon in the Investors section.

A replay of the call will also be available on http://www.pega.com/about/investors by clicking the earnings calls link in the investors section.

Discussion of non-GAAP financial measures

To supplement the 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 on both a GAAP and non-GAAP basis, and both are approved by our board of directors. In addition, because 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 stock-based compensation expense, amortization of intangible assets, and foreign currency transaction gains and losses. The Company believes 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 measures to Non-GAAP measures is included in the financial schedules at the end of this release.

Forward-looking statements

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.

These forward-looking statements are based on current expectations, estimates, forecasts, and projections about the industry and markets in which we operate, and management's beliefs and assumptions. In addition, other written or oral statements that constitute forward-looking statements may be made by us or on our behalf. Words such as "expect," "anticipate," "intend," "plan," "believe," "could," "estimate," "may," "target," "strategy," "is intended to," "project," "guidance," "likely," "usually," or variations of such words and similar expressions are intended to identify such forward-looking statements.

Important factors that could cause actual future activities and results to differ materially from those expressed in such forward-looking statements include, among others, variation in demand for our products and services, reliance on third party relationships, reliance on key personnel, the inherent risks associated with international operations and the continued uncertainties in the global economy, our continued effort to market and sell both domestically and internationally, foreign currency exchange rates, the potential legal and financial liabilities and reputation damage due to cyber-attacks and security breaches, and management of our growth. These risks and other factors that could cause actual results to differ materially from those expressed in such forward-looking statements are described more completely in Part I of our Annual Report on Form 10-K for the year ended December 31, 2018, and other filings we make with the U.S. Securities and Exchange Commission ("SEC"). These documents are available on the Company's website at www.pega.com/about/investors.

Investors are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the results contained in such statements will be achieved. Although new information, future events, or risks may cause actual results to differ materially from future results expressed or implied by such forward-looking statements, except as required by applicable law, we do not undertake and specifically disclaim any obligation to publicly update or revise these forward-looking statements whether as the result of new information, future events, or otherwise.

The forward-looking statements contained in this press release represent the Company's views as of August 7, 2019.

About Pegasystems

Pegasystems Inc. is the leader in software for customer engagement and operational excellence. Pega's adaptive, cloud-architected software - built on its unified Pega Platform™ - empowers people to rapidly deploy, and easily extend and change applications to meet strategic business needs. Over its 35-year history, Pega has delivered award-winning capabilities in CRM and digital process automation (DPA), powered by advanced artificial intelligence and robotic automation, to help the world's leading brands achieve breakthrough business results.

For more information on Pegasystems (NASDAQ: PEGA) visit www.pega.com.

Press contact: Lisa Pintchman Pegasystems Inc. lisa.pintchman@pega.com (617) 866-6022  Twitter: @pega

Investor contact:  Garo Toomajanian ICR for Pegasystems Inc. pegainvestorrelations@pega.com (617) 866-6077

All trademarks are the property of their respective owners.

 

(Dollars in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30, (Dollars in thousands) Three Months EndedJune 30, Six Months EndedJune 30, June 30, Change Constant CurrencyChange June 30, 2019 PEGASYSTEMS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts)
2019 2018 Change 2019 2018 Change * not meaningful 2019 2018 Change 2019 2018 Change (Dollars in thousands) 2019 2018 (1) Total ACV, as of a given date, is the sum of the following two components: (Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total
Total revenue $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Cloud $ 31,699 15 % $ 20,201 10 % $ 11,498 57 % $ 59,457 14 % $ 35,783 8 % $ 23,674 66 % Maintenance ACV $ 277,316 $ 263,624 $ 13,692 5 % 7 % 1 year or less $ 8,429 $ 38,080 $ 173,421 $ 124,134 $ 16,259 $ 360,323 57 %
Subscription revenue (2) $ 125,982 $ 117,416 7 % $ 269,760 $ 262,218 3 % (1) A reconciliation of the GAAP measures to our Non-GAAP measures is contained in the financial schedules at the end of this release. Term license 24,954 12 % 31,309 16 % (6,355) (20) % 73,268 18 % 96,004 22 % (22,736) (24) % Term ACV 199,299 168,528 30,771 18 % 19 % Client Cloud: the sum of (1) the annual value of each term license contract in effect on such date, which is equal to its total license value divided by the total number of years and (2) maintenance revenue reported for the quarter ended on such date, multiplied by four. We do not provide hosting for Client Cloud arrangements. 1-2 years 915 4,678 12,530 98,842 942 117,907 19 % Three Months EndedJune 30, Six Months EndedJune 30,
Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Maintenance 69,329 34 % 65,906 34 % 3,423 5 % 137,035 33 % 130,431 31 % 6,604 5 % Client Cloud ACV 476,615 432,152 44,463 10 % 12 % Pega Cloud: the total of the annual value of each cloud contract in effect on such date, which is equal to its total value divided by the total number of years. 2-3 years 1,306 641 5,801 75,828 227 83,803 13 % 2019 2018 2019 2018
Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * (2) Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal. Subscription 125,982 61 % 117,416 60 % 8,566 7 % 269,760 65 % 262,218 61 % 7,542 3 % Pega Cloud ACV 136,074 82,376 53,698 65 % 67 % Greater than 3 years 185 2,812 63,259 66,256 11 % Revenue
Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 * Perpetual license 19,320 9 % 13,475 7 % 5,845 43 % 34,270 8 % 36,553 8 % (2,283) (6) % Total ACV $ 612,689 $ 514,528 $ 98,161 19 % 21 % (2) As foreign currency exchange rates are an important factor in understanding period to period comparisons, we believe the presentation of ACV growth rates on a constant currency basis enhances the understanding of our results and evaluation of our performance in comparison to prior periods. The percent change in constant currency is calculated by applying the applicable current period exchange rates to prior period ACV. $ 10,650 $ 43,584 $ 194,564 $ 362,063 $ 17,428 $ 628,289 100 % Software license $ 44,274 $ 44,784 $ 107,538 $ 132,557
Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 * Consulting 60,290 30 % 65,888 33 % (5,598) (8) % 114,108 27 % 133,190 31 % (19,082) (14) % Change in RPO Since June 30, 2018 Maintenance 69,329 65,906 137,035 130,431
Total revenue $ 205,592 100 % $ 196,779 100 % $ 8,813 4 % $ 418,138 100 % $ 431,961 100 % $ (13,823) (3) % $ (36,623) $ 6,640 $ 32,273 $ 148,253 $ 1,086 $ 151,629 Services 91,989 86,089 173,565 168,973
(77) % 18 % 20 % 69 % 7 % 32 % Total revenue 205,592 196,779 418,138 431,961
Cost of revenue
June 30, 2018 Software license 928 1,262 2,306 2,517
(Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total Maintenance 6,292 5,874 12,627 11,956
1 year or less $ 28,626 $ 20,457 $ 111,086 $ 41,036 $ 12,039 $ 213,244 45 % Services 69,860 66,681 136,584 134,958
1-2 years 15,862 9,878 43,837 66,529 4,103 140,209 29 % Total cost of revenue 77,080 73,817 151,517 149,431
2-3 years 2,423 5,665 5,265 50,250 63,603 13 % Gross profit 128,512 122,962 266,621 282,530
Greater than 3 years 362 944 2,103 55,995 200 59,604 13 % Operating expenses
$ 47,273 $ 36,944 $ 162,291 $ 213,810 $ 16,342 $ 476,660 100 % Selling and marketing 116,962 93,972 225,827 182,355
Research and development 49,714 41,972 100,310 88,757
General and administrative 14,174 10,181 26,850 26,645
Total operating expenses 180,850 146,125 352,987 297,757
(Loss) from operations (52,338) (23,163) (86,366) (15,227)
Foreign currency transaction gain (loss) 2,105 1,244 (1,607) 159
Interest income, net 544 629 1,267 1,393
Other income, net 55 55 363
(Loss) before (benefit from) income taxes (49,634) (21,290) (86,651) (13,312)
(Benefit from) income taxes (17,338) (10,881) (25,638) (15,103)
Net (loss) income $ (32,296) $ (10,409) $ (61,013) $ 1,791
(Loss) earnings per share
Basic $ (0.41) $ (0.13) $ (0.77) $ 0.02
Diluted $ (0.41) $ (0.13) $ (0.77) $ 0.02
Weighted-average number of common shares outstanding
Basic 78,987 78,635 78,787 78,436
Diluted 78,987 78,635 78,787 83,247

 

 

(Dollars in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30, (Dollars in thousands) Three Months EndedJune 30, Six Months EndedJune 30, June 30, Change Constant CurrencyChange June 30, 2019 PEGASYSTEMS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) PEGASYSTEMS INC. UNAUDITED RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) (in thousands, except percentages and per share amounts)
2019 2018 Change 2019 2018 Change * not meaningful 2019 2018 Change 2019 2018 Change (Dollars in thousands) 2019 2018 (1) Total ACV, as of a given date, is the sum of the following two components: (Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total
Total revenue $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Cloud $ 31,699 15 % $ 20,201 10 % $ 11,498 57 % $ 59,457 14 % $ 35,783 8 % $ 23,674 66 % Maintenance ACV $ 277,316 $ 263,624 $ 13,692 5 % 7 % 1 year or less $ 8,429 $ 38,080 $ 173,421 $ 124,134 $ 16,259 $ 360,323 57 %
Subscription revenue (2) $ 125,982 $ 117,416 7 % $ 269,760 $ 262,218 3 % (1) A reconciliation of the GAAP measures to our Non-GAAP measures is contained in the financial schedules at the end of this release. Term license 24,954 12 % 31,309 16 % (6,355) (20) % 73,268 18 % 96,004 22 % (22,736) (24) % Term ACV 199,299 168,528 30,771 18 % 19 % Client Cloud: the sum of (1) the annual value of each term license contract in effect on such date, which is equal to its total license value divided by the total number of years and (2) maintenance revenue reported for the quarter ended on such date, multiplied by four. We do not provide hosting for Client Cloud arrangements. 1-2 years 915 4,678 12,530 98,842 942 117,907 19 % Three Months EndedJune 30, Six Months EndedJune 30, Three Months EndedJune 30, Six Months EndedJune 30,
Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Maintenance 69,329 34 % 65,906 34 % 3,423 5 % 137,035 33 % 130,431 31 % 6,604 5 % Client Cloud ACV 476,615 432,152 44,463 10 % 12 % Pega Cloud: the total of the annual value of each cloud contract in effect on such date, which is equal to its total value divided by the total number of years. 2-3 years 1,306 641 5,801 75,828 227 83,803 13 % 2019 2018 2019 2018 2019 2018 Change 2019 2018 Change
Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * (2) Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal. Subscription 125,982 61 % 117,416 60 % 8,566 7 % 269,760 65 % 262,218 61 % 7,542 3 % Pega Cloud ACV 136,074 82,376 53,698 65 % 67 % Greater than 3 years 185 2,812 63,259 66,256 11 % Revenue Total revenue - GAAP and Non-GAAP $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) %
Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 * Perpetual license 19,320 9 % 13,475 7 % 5,845 43 % 34,270 8 % 36,553 8 % (2,283) (6) % Total ACV $ 612,689 $ 514,528 $ 98,161 19 % 21 % (2) As foreign currency exchange rates are an important factor in understanding period to period comparisons, we believe the presentation of ACV growth rates on a constant currency basis enhances the understanding of our results and evaluation of our performance in comparison to prior periods. The percent change in constant currency is calculated by applying the applicable current period exchange rates to prior period ACV. $ 10,650 $ 43,584 $ 194,564 $ 362,063 $ 17,428 $ 628,289 100 % Software license $ 44,274 $ 44,784 $ 107,538 $ 132,557
Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 * Consulting 60,290 30 % 65,888 33 % (5,598) (8) % 114,108 27 % 133,190 31 % (19,082) (14) % Change in RPO Since June 30, 2018 Maintenance 69,329 65,906 137,035 130,431 Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 *
Total revenue $ 205,592 100 % $ 196,779 100 % $ 8,813 4 % $ 418,138 100 % $ 431,961 100 % $ (13,823) (3) % $ (36,623) $ 6,640 $ 32,273 $ 148,253 $ 1,086 $ 151,629 Services 91,989 86,089 173,565 168,973 Amortization of intangible assets 1,656 2,836 4,592 5,673
(77) % 18 % 20 % 69 % 7 % 32 % Total revenue 205,592 196,779 418,138 431,961 Stock-based compensation (2) 20,047 16,056 38,397 31,165
Cost of revenue Foreign currency transaction gain (loss) (2,105) (1,244) 1,607 (159)
June 30, 2018 Software license 928 1,262 2,306 2,517 Income tax effects (3) (10,729) (9,971) (16,386) (20,945)
(Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total Maintenance 6,292 5,874 12,627 11,956 Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 *
1 year or less $ 28,626 $ 20,457 $ 111,086 $ 41,036 $ 12,039 $ 213,244 45 % Services 69,860 66,681 136,584 134,958
1-2 years 15,862 9,878 43,837 66,529 4,103 140,209 29 % Total cost of revenue 77,080 73,817 151,517 149,431 Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 *
2-3 years 2,423 5,665 5,265 50,250 63,603 13 % Gross profit 128,512 122,962 266,621 282,530 Non-GAAP adjustments 0.11 0.10 0.35 0.19
Greater than 3 years 362 944 2,103 55,995 200 59,604 13 % Operating expenses Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 *
$ 47,273 $ 36,944 $ 162,291 $ 213,810 $ 16,342 $ 476,660 100 % Selling and marketing 116,962 93,972 225,827 182,355
Research and development 49,714 41,972 100,310 88,757 Diluted weighted-average number of common shares outstanding - GAAP 78,987 78,635 % 78,787 83,247 (5) %
General and administrative 14,174 10,181 26,850 26,645 Diluted weighted-average number of common shares outstanding - Non-GAAP 78,987 78,635 % 78,787 83,247 (5) %
Total operating expenses 180,850 146,125 352,987 297,757
(Loss) from operations (52,338) (23,163) (86,366) (15,227)
Foreign currency transaction gain (loss) 2,105 1,244 (1,607) 159
Interest income, net 544 629 1,267 1,393
Other income, net 55 55 363
(Loss) before (benefit from) income taxes (49,634) (21,290) (86,651) (13,312)
(Benefit from) income taxes (17,338) (10,881) (25,638) (15,103)
Net (loss) income $ (32,296) $ (10,409) $ (61,013) $ 1,791
(Loss) earnings per share
Basic $ (0.41) $ (0.13) $ (0.77) $ 0.02
Diluted $ (0.41) $ (0.13) $ (0.77) $ 0.02
Weighted-average number of common shares outstanding
Basic 78,987 78,635 78,787 78,436
Diluted 78,987 78,635 78,787 83,247

(Dollars in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30, (Dollars in thousands) Three Months EndedJune 30, Six Months EndedJune 30, June 30, Change Constant CurrencyChange June 30, 2019 PEGASYSTEMS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) PEGASYSTEMS INC. UNAUDITED RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) (in thousands, except percentages and per share amounts)
2019 2018 Change 2019 2018 Change * not meaningful 2019 2018 Change 2019 2018 Change (Dollars in thousands) 2019 2018 (1) Total ACV, as of a given date, is the sum of the following two components: (Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total * not meaningful
Total revenue $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Cloud $ 31,699 15 % $ 20,201 10 % $ 11,498 57 % $ 59,457 14 % $ 35,783 8 % $ 23,674 66 % Maintenance ACV $ 277,316 $ 263,624 $ 13,692 5 % 7 % 1 year or less $ 8,429 $ 38,080 $ 173,421 $ 124,134 $ 16,259 $ 360,323 57 %
Subscription revenue (2) $ 125,982 $ 117,416 7 % $ 269,760 $ 262,218 3 % (1) A reconciliation of the GAAP measures to our Non-GAAP measures is contained in the financial schedules at the end of this release. Term license 24,954 12 % 31,309 16 % (6,355) (20) % 73,268 18 % 96,004 22 % (22,736) (24) % Term ACV 199,299 168,528 30,771 18 % 19 % Client Cloud: the sum of (1) the annual value of each term license contract in effect on such date, which is equal to its total license value divided by the total number of years and (2) maintenance revenue reported for the quarter ended on such date, multiplied by four. We do not provide hosting for Client Cloud arrangements. 1-2 years 915 4,678 12,530 98,842 942 117,907 19 % Three Months EndedJune 30, Six Months EndedJune 30, Three Months EndedJune 30, Six Months EndedJune 30, (1) Our 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 our consolidated financial statements prepared in accordance with GAAP.
Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Maintenance 69,329 34 % 65,906 34 % 3,423 5 % 137,035 33 % 130,431 31 % 6,604 5 % Client Cloud ACV 476,615 432,152 44,463 10 % 12 % Pega Cloud: the total of the annual value of each cloud contract in effect on such date, which is equal to its total value divided by the total number of years. 2-3 years 1,306 641 5,801 75,828 227 83,803 13 % 2019 2018 2019 2018 2019 2018 Change 2019 2018 Change
Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * (2) Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal. Subscription 125,982 61 % 117,416 60 % 8,566 7 % 269,760 65 % 262,218 61 % 7,542 3 % Pega Cloud ACV 136,074 82,376 53,698 65 % 67 % Greater than 3 years 185 2,812 63,259 66,256 11 % Revenue Total revenue - GAAP and Non-GAAP $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Our non-GAAP financial measures reflect adjustments based on the following items:
Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 * Perpetual license 19,320 9 % 13,475 7 % 5,845 43 % 34,270 8 % 36,553 8 % (2,283) (6) % Total ACV $ 612,689 $ 514,528 $ 98,161 19 % 21 % (2) As foreign currency exchange rates are an important factor in understanding period to period comparisons, we believe the presentation of ACV growth rates on a constant currency basis enhances the understanding of our results and evaluation of our performance in comparison to prior periods. The percent change in constant currency is calculated by applying the applicable current period exchange rates to prior period ACV. $ 10,650 $ 43,584 $ 194,564 $ 362,063 $ 17,428 $ 628,289 100 % Software license $ 44,274 $ 44,784 $ 107,538 $ 132,557
Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 * Consulting 60,290 30 % 65,888 33 % (5,598) (8) % 114,108 27 % 133,190 31 % (19,082) (14) % Change in RPO Since June 30, 2018 Maintenance 69,329 65,906 137,035 130,431 Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Amortization of intangible assets: We have excluded amortization of intangible assets from our non-GAAP operating expenses and profitability measures. Amortization of intangible assets fluctuates 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 recognized during the periods presented and is expected to contribute to our future period revenues as well. Amortization of intangible assets is likely to recur in future periods.
Total revenue $ 205,592 100 % $ 196,779 100 % $ 8,813 4 % $ 418,138 100 % $ 431,961 100 % $ (13,823) (3) % $ (36,623) $ 6,640 $ 32,273 $ 148,253 $ 1,086 $ 151,629 Services 91,989 86,089 173,565 168,973 Amortization of intangible assets 1,656 2,836 4,592 5,673 Stock-based compensation: We have excluded stock-based compensation from our non-GAAP operating expenses and profitability measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to our revenues recognized during the periods presented and is expected to contribute to our future period revenues, we continue to evaluate our business performance excluding stock-based compensation.
(77) % 18 % 20 % 69 % 7 % 32 % Total revenue 205,592 196,779 418,138 431,961 Stock-based compensation (2) 20,047 16,056 38,397 31,165 Foreign currency transaction gain (loss): We have excluded foreign currency transaction gains and losses from our non-GAAP profitability measures. Foreign currency transaction gains and losses fluctuate in amount and frequency and are significantly affected by changes in foreign exchange market rates. Foreign currency transaction gains and losses will recur in future periods.
Cost of revenue Foreign currency transaction gain (loss) (2,105) (1,244) 1,607 (159)
June 30, 2018 Software license 928 1,262 2,306 2,517 Income tax effects (3) (10,729) (9,971) (16,386) (20,945) For additional information about our use of Non-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 "Discussion of non-GAAP financial measures" included earlier in this release and below.
(Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total Maintenance 6,292 5,874 12,627 11,956 Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 *
1 year or less $ 28,626 $ 20,457 $ 111,086 $ 41,036 $ 12,039 $ 213,244 45 % Services 69,860 66,681 136,584 134,958 (2) Stock-based compensation was as follows:
1-2 years 15,862 9,878 43,837 66,529 4,103 140,209 29 % Total cost of revenue 77,080 73,817 151,517 149,431 Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 *
2-3 years 2,423 5,665 5,265 50,250 63,603 13 % Gross profit 128,512 122,962 266,621 282,530 Non-GAAP adjustments 0.11 0.10 0.35 0.19
Greater than 3 years 362 944 2,103 55,995 200 59,604 13 % Operating expenses Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 *
$ 47,273 $ 36,944 $ 162,291 $ 213,810 $ 16,342 $ 476,660 100 % Selling and marketing 116,962 93,972 225,827 182,355
Research and development 49,714 41,972 100,310 88,757 Diluted weighted-average number of common shares outstanding - GAAP 78,987 78,635 % 78,787 83,247 (5) %
General and administrative 14,174 10,181 26,850 26,645 Diluted weighted-average number of common shares outstanding - Non-GAAP 78,987 78,635 % 78,787 83,247 (5) %
Total operating expenses 180,850 146,125 352,987 297,757
(Loss) from operations (52,338) (23,163) (86,366) (15,227)
Foreign currency transaction gain (loss) 2,105 1,244 (1,607) 159
Interest income, net 544 629 1,267 1,393
Other income, net 55 55 363
(Loss) before (benefit from) income taxes (49,634) (21,290) (86,651) (13,312)
(Benefit from) income taxes (17,338) (10,881) (25,638) (15,103)
Net (loss) income $ (32,296) $ (10,409) $ (61,013) $ 1,791
(Loss) earnings per share
Basic $ (0.41) $ (0.13) $ (0.77) $ 0.02
Diluted $ (0.41) $ (0.13) $ (0.77) $ 0.02
Weighted-average number of common shares outstanding
Basic 78,987 78,635 78,787 78,436
Diluted 78,987 78,635 78,787 83,247

(Dollars in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30, (Dollars in thousands) Three Months EndedJune 30, Six Months EndedJune 30, June 30, Change Constant CurrencyChange June 30, 2019 PEGASYSTEMS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) PEGASYSTEMS INC. UNAUDITED RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) (in thousands, except percentages and per share amounts)
2019 2018 Change 2019 2018 Change * not meaningful 2019 2018 Change 2019 2018 Change (Dollars in thousands) 2019 2018 (1) Total ACV, as of a given date, is the sum of the following two components: (Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total * not meaningful Three Months EndedJune 30, Six Months EndedJune 30,
Total revenue $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Cloud $ 31,699 15 % $ 20,201 10 % $ 11,498 57 % $ 59,457 14 % $ 35,783 8 % $ 23,674 66 % Maintenance ACV $ 277,316 $ 263,624 $ 13,692 5 % 7 % 1 year or less $ 8,429 $ 38,080 $ 173,421 $ 124,134 $ 16,259 $ 360,323 57 % (in thousands) 2019 2018 2019 2018
Subscription revenue (2) $ 125,982 $ 117,416 7 % $ 269,760 $ 262,218 3 % (1) A reconciliation of the GAAP measures to our Non-GAAP measures is contained in the financial schedules at the end of this release. Term license 24,954 12 % 31,309 16 % (6,355) (20) % 73,268 18 % 96,004 22 % (22,736) (24) % Term ACV 199,299 168,528 30,771 18 % 19 % Client Cloud: the sum of (1) the annual value of each term license contract in effect on such date, which is equal to its total license value divided by the total number of years and (2) maintenance revenue reported for the quarter ended on such date, multiplied by four. We do not provide hosting for Client Cloud arrangements. 1-2 years 915 4,678 12,530 98,842 942 117,907 19 % Three Months EndedJune 30, Six Months EndedJune 30, Three Months EndedJune 30, Six Months EndedJune 30, (1) Our 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 our consolidated financial statements prepared in accordance with GAAP. Cost of revenues $ 4,911 $ 4,257 $ 9,430 $ 7,958
Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Maintenance 69,329 34 % 65,906 34 % 3,423 5 % 137,035 33 % 130,431 31 % 6,604 5 % Client Cloud ACV 476,615 432,152 44,463 10 % 12 % Pega Cloud: the total of the annual value of each cloud contract in effect on such date, which is equal to its total value divided by the total number of years. 2-3 years 1,306 641 5,801 75,828 227 83,803 13 % 2019 2018 2019 2018 2019 2018 Change 2019 2018 Change Selling and marketing 8,364 6,038 15,738 10,696
Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * (2) Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal. Subscription 125,982 61 % 117,416 60 % 8,566 7 % 269,760 65 % 262,218 61 % 7,542 3 % Pega Cloud ACV 136,074 82,376 53,698 65 % 67 % Greater than 3 years 185 2,812 63,259 66,256 11 % Revenue Total revenue - GAAP and Non-GAAP $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Our non-GAAP financial measures reflect adjustments based on the following items: Research and development 4,572 3,802 9,132 7,439
Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 * Perpetual license 19,320 9 % 13,475 7 % 5,845 43 % 34,270 8 % 36,553 8 % (2,283) (6) % Total ACV $ 612,689 $ 514,528 $ 98,161 19 % 21 % (2) As foreign currency exchange rates are an important factor in understanding period to period comparisons, we believe the presentation of ACV growth rates on a constant currency basis enhances the understanding of our results and evaluation of our performance in comparison to prior periods. The percent change in constant currency is calculated by applying the applicable current period exchange rates to prior period ACV. $ 10,650 $ 43,584 $ 194,564 $ 362,063 $ 17,428 $ 628,289 100 % Software license $ 44,274 $ 44,784 $ 107,538 $ 132,557 General and administrative 2,200 1,959 4,097 5,072
Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 * Consulting 60,290 30 % 65,888 33 % (5,598) (8) % 114,108 27 % 133,190 31 % (19,082) (14) % Change in RPO Since June 30, 2018 Maintenance 69,329 65,906 137,035 130,431 Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Amortization of intangible assets: We have excluded amortization of intangible assets from our non-GAAP operating expenses and profitability measures. Amortization of intangible assets fluctuates 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 recognized during the periods presented and is expected to contribute to our future period revenues as well. Amortization of intangible assets is likely to recur in future periods. $ 20,047 $ 16,056 $ 38,397 $ 31,165
Total revenue $ 205,592 100 % $ 196,779 100 % $ 8,813 4 % $ 418,138 100 % $ 431,961 100 % $ (13,823) (3) % $ (36,623) $ 6,640 $ 32,273 $ 148,253 $ 1,086 $ 151,629 Services 91,989 86,089 173,565 168,973 Amortization of intangible assets 1,656 2,836 4,592 5,673 Stock-based compensation: We have excluded stock-based compensation from our non-GAAP operating expenses and profitability measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to our revenues recognized during the periods presented and is expected to contribute to our future period revenues, we continue to evaluate our business performance excluding stock-based compensation. Income tax benefit $ (4,056) $ (3,341) $ (7,796) $ (6,482)
(77) % 18 % 20 % 69 % 7 % 32 % Total revenue 205,592 196,779 418,138 431,961 Stock-based compensation (2) 20,047 16,056 38,397 31,165 Foreign currency transaction gain (loss): We have excluded foreign currency transaction gains and losses from our non-GAAP profitability measures. Foreign currency transaction gains and losses fluctuate in amount and frequency and are significantly affected by changes in foreign exchange market rates. Foreign currency transaction gains and losses will recur in future periods.
Cost of revenue Foreign currency transaction gain (loss) (2,105) (1,244) 1,607 (159) (3)     Effective income tax rates were as follows:
June 30, 2018 Software license 928 1,262 2,306 2,517 Income tax effects (3) (10,729) (9,971) (16,386) (20,945) For additional information about our use of Non-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 "Discussion of non-GAAP financial measures" included earlier in this release and below.
(Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total Maintenance 6,292 5,874 12,627 11,956 Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * Six Months EndedJune 30,
1 year or less $ 28,626 $ 20,457 $ 111,086 $ 41,036 $ 12,039 $ 213,244 45 % Services 69,860 66,681 136,584 134,958 (2) Stock-based compensation was as follows: 2019 2018
1-2 years 15,862 9,878 43,837 66,529 4,103 140,209 29 % Total cost of revenue 77,080 73,817 151,517 149,431 Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 * GAAP 30 % 113 %
2-3 years 2,423 5,665 5,265 50,250 63,603 13 % Gross profit 128,512 122,962 266,621 282,530 Non-GAAP adjustments 0.11 0.10 0.35 0.19 Non-GAAP 22 % 25 %
Greater than 3 years 362 944 2,103 55,995 200 59,604 13 % Operating expenses Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 *
$ 47,273 $ 36,944 $ 162,291 $ 213,810 $ 16,342 $ 476,660 100 % Selling and marketing 116,962 93,972 225,827 182,355
Research and development 49,714 41,972 100,310 88,757 Diluted weighted-average number of common shares outstanding - GAAP 78,987 78,635 % 78,787 83,247 (5) %
General and administrative 14,174 10,181 26,850 26,645 Diluted weighted-average number of common shares outstanding - Non-GAAP 78,987 78,635 % 78,787 83,247 (5) %
Total operating expenses 180,850 146,125 352,987 297,757
(Loss) from operations (52,338) (23,163) (86,366) (15,227)
Foreign currency transaction gain (loss) 2,105 1,244 (1,607) 159
Interest income, net 544 629 1,267 1,393
Other income, net 55 55 363
(Loss) before (benefit from) income taxes (49,634) (21,290) (86,651) (13,312)
(Benefit from) income taxes (17,338) (10,881) (25,638) (15,103)
Net (loss) income $ (32,296) $ (10,409) $ (61,013) $ 1,791
(Loss) earnings per share
Basic $ (0.41) $ (0.13) $ (0.77) $ 0.02
Diluted $ (0.41) $ (0.13) $ (0.77) $ 0.02
Weighted-average number of common shares outstanding
Basic 78,987 78,635 78,787 78,436
Diluted 78,987 78,635 78,787 83,247

 

Our effective income tax rate under GAAP is subject to significant fluctuations due to a variety of factors, including excess tax benefits generated by our stock-based compensation plans, tax credits for stock-based compensation awards to research and development employees, and unfavorable foreign stock-based compensation adjustments. We determine our non-GAAP income tax rate by using applicable rates in taxing jurisdictions and assessing certain factors including our historical and forecast earnings by jurisdiction, discrete items, and our ability to realize tax assets. We believe it is beneficial for our management to review our non-GAAP effective income tax rate on a basis consistent with the effective income tax rate in our annual plan as established at the beginning of each year given this tax rate volatility.

(Dollars in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30, (Dollars in thousands) Three Months EndedJune 30, Six Months EndedJune 30, June 30, Change Constant CurrencyChange June 30, 2019 PEGASYSTEMS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) PEGASYSTEMS INC. UNAUDITED RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) (in thousands, except percentages and per share amounts) PEGASYSTEMS INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
2019 2018 Change 2019 2018 Change * not meaningful 2019 2018 Change 2019 2018 Change (Dollars in thousands) 2019 2018 (1) Total ACV, as of a given date, is the sum of the following two components: (Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total * not meaningful Three Months EndedJune 30, Six Months EndedJune 30,
Total revenue $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Cloud $ 31,699 15 % $ 20,201 10 % $ 11,498 57 % $ 59,457 14 % $ 35,783 8 % $ 23,674 66 % Maintenance ACV $ 277,316 $ 263,624 $ 13,692 5 % 7 % 1 year or less $ 8,429 $ 38,080 $ 173,421 $ 124,134 $ 16,259 $ 360,323 57 % (in thousands) 2019 2018 2019 2018
Subscription revenue (2) $ 125,982 $ 117,416 7 % $ 269,760 $ 262,218 3 % (1) A reconciliation of the GAAP measures to our Non-GAAP measures is contained in the financial schedules at the end of this release. Term license 24,954 12 % 31,309 16 % (6,355) (20) % 73,268 18 % 96,004 22 % (22,736) (24) % Term ACV 199,299 168,528 30,771 18 % 19 % Client Cloud: the sum of (1) the annual value of each term license contract in effect on such date, which is equal to its total license value divided by the total number of years and (2) maintenance revenue reported for the quarter ended on such date, multiplied by four. We do not provide hosting for Client Cloud arrangements. 1-2 years 915 4,678 12,530 98,842 942 117,907 19 % Three Months EndedJune 30, Six Months EndedJune 30, Three Months EndedJune 30, Six Months EndedJune 30, (1) Our 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 our consolidated financial statements prepared in accordance with GAAP. Cost of revenues $ 4,911 $ 4,257 $ 9,430 $ 7,958 June 30, 2019 December 31, 2018
Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Maintenance 69,329 34 % 65,906 34 % 3,423 5 % 137,035 33 % 130,431 31 % 6,604 5 % Client Cloud ACV 476,615 432,152 44,463 10 % 12 % Pega Cloud: the total of the annual value of each cloud contract in effect on such date, which is equal to its total value divided by the total number of years. 2-3 years 1,306 641 5,801 75,828 227 83,803 13 % 2019 2018 2019 2018 2019 2018 Change 2019 2018 Change Selling and marketing 8,364 6,038 15,738 10,696 Assets
Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * (2) Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal. Subscription 125,982 61 % 117,416 60 % 8,566 7 % 269,760 65 % 262,218 61 % 7,542 3 % Pega Cloud ACV 136,074 82,376 53,698 65 % 67 % Greater than 3 years 185 2,812 63,259 66,256 11 % Revenue Total revenue - GAAP and Non-GAAP $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Our non-GAAP financial measures reflect adjustments based on the following items: Research and development 4,572 3,802 9,132 7,439 Total cash, cash equivalents, and marketable securities $ 155,049 $ 207,423
Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 * Perpetual license 19,320 9 % 13,475 7 % 5,845 43 % 34,270 8 % 36,553 8 % (2,283) (6) % Total ACV $ 612,689 $ 514,528 $ 98,161 19 % 21 % (2) As foreign currency exchange rates are an important factor in understanding period to period comparisons, we believe the presentation of ACV growth rates on a constant currency basis enhances the understanding of our results and evaluation of our performance in comparison to prior periods. The percent change in constant currency is calculated by applying the applicable current period exchange rates to prior period ACV. $ 10,650 $ 43,584 $ 194,564 $ 362,063 $ 17,428 $ 628,289 100 % Software license $ 44,274 $ 44,784 $ 107,538 $ 132,557 General and administrative 2,200 1,959 4,097 5,072 Total receivables (billed and unbilled) 422,408 504,765
Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 * Consulting 60,290 30 % 65,888 33 % (5,598) (8) % 114,108 27 % 133,190 31 % (19,082) (14) % Change in RPO Since June 30, 2018 Maintenance 69,329 65,906 137,035 130,431 Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Amortization of intangible assets: We have excluded amortization of intangible assets from our non-GAAP operating expenses and profitability measures. Amortization of intangible assets fluctuates 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 recognized during the periods presented and is expected to contribute to our future period revenues as well. Amortization of intangible assets is likely to recur in future periods. $ 20,047 $ 16,056 $ 38,397 $ 31,165 Goodwill 79,037 72,858
Total revenue $ 205,592 100 % $ 196,779 100 % $ 8,813 4 % $ 418,138 100 % $ 431,961 100 % $ (13,823) (3) % $ (36,623) $ 6,640 $ 32,273 $ 148,253 $ 1,086 $ 151,629 Services 91,989 86,089 173,565 168,973 Amortization of intangible assets 1,656 2,836 4,592 5,673 Stock-based compensation: We have excluded stock-based compensation from our non-GAAP operating expenses and profitability measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to our revenues recognized during the periods presented and is expected to contribute to our future period revenues, we continue to evaluate our business performance excluding stock-based compensation. Income tax benefit $ (4,056) $ (3,341) $ (7,796) $ (6,482) Other assets 284,123 197,507
(77) % 18 % 20 % 69 % 7 % 32 % Total revenue 205,592 196,779 418,138 431,961 Stock-based compensation (2) 20,047 16,056 38,397 31,165 Foreign currency transaction gain (loss): We have excluded foreign currency transaction gains and losses from our non-GAAP profitability measures. Foreign currency transaction gains and losses fluctuate in amount and frequency and are significantly affected by changes in foreign exchange market rates. Foreign currency transaction gains and losses will recur in future periods. Total assets $ 940,617 $ 982,553
Cost of revenue Foreign currency transaction gain (loss) (2,105) (1,244) 1,607 (159) (3)     Effective income tax rates were as follows:
June 30, 2018 Software license 928 1,262 2,306 2,517 Income tax effects (3) (10,729) (9,971) (16,386) (20,945) For additional information about our use of Non-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 "Discussion of non-GAAP financial measures" included earlier in this release and below. Liabilities and stockholders' equity
(Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total Maintenance 6,292 5,874 12,627 11,956 Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * Six Months EndedJune 30, Accrued expenses, including compensation and related expenses $ 113,252 $ 130,177
1 year or less $ 28,626 $ 20,457 $ 111,086 $ 41,036 $ 12,039 $ 213,244 45 % Services 69,860 66,681 136,584 134,958 (2) Stock-based compensation was as follows: 2019 2018 Deferred revenue, current 169,009 185,145
1-2 years 15,862 9,878 43,837 66,529 4,103 140,209 29 % Total cost of revenue 77,080 73,817 151,517 149,431 Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 * GAAP 30 % 113 % Deferred income tax liabilities 6,918 6,939
2-3 years 2,423 5,665 5,265 50,250 63,603 13 % Gross profit 128,512 122,962 266,621 282,530 Non-GAAP adjustments 0.11 0.10 0.35 0.19 Non-GAAP 22 % 25 % Other liabilities 94,151 38,761
Greater than 3 years 362 944 2,103 55,995 200 59,604 13 % Operating expenses Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 * Stockholders' equity 557,287 621,531
$ 47,273 $ 36,944 $ 162,291 $ 213,810 $ 16,342 $ 476,660 100 % Selling and marketing 116,962 93,972 225,827 182,355 Total liabilities and stockholders' equity $ 940,617 $ 982,553
Research and development 49,714 41,972 100,310 88,757 Diluted weighted-average number of common shares outstanding - GAAP 78,987 78,635 % 78,787 83,247 (5) %
General and administrative 14,174 10,181 26,850 26,645 Diluted weighted-average number of common shares outstanding - Non-GAAP 78,987 78,635 % 78,787 83,247 (5) %
Total operating expenses 180,850 146,125 352,987 297,757
(Loss) from operations (52,338) (23,163) (86,366) (15,227)
Foreign currency transaction gain (loss) 2,105 1,244 (1,607) 159
Interest income, net 544 629 1,267 1,393
Other income, net 55 55 363
(Loss) before (benefit from) income taxes (49,634) (21,290) (86,651) (13,312)
(Benefit from) income taxes (17,338) (10,881) (25,638) (15,103)
Net (loss) income $ (32,296) $ (10,409) $ (61,013) $ 1,791
(Loss) earnings per share
Basic $ (0.41) $ (0.13) $ (0.77) $ 0.02
Diluted $ (0.41) $ (0.13) $ (0.77) $ 0.02
Weighted-average number of common shares outstanding
Basic 78,987 78,635 78,787 78,436
Diluted 78,987 78,635 78,787 83,247

 

 

(Dollars in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30, (Dollars in thousands) Three Months EndedJune 30, Six Months EndedJune 30, June 30, Change Constant CurrencyChange June 30, 2019 PEGASYSTEMS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) PEGASYSTEMS INC. UNAUDITED RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) (in thousands, except percentages and per share amounts) PEGASYSTEMS INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) PEGASYSTEMS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
2019 2018 Change 2019 2018 Change * not meaningful 2019 2018 Change 2019 2018 Change (Dollars in thousands) 2019 2018 (1) Total ACV, as of a given date, is the sum of the following two components: (Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total * not meaningful Three Months EndedJune 30, Six Months EndedJune 30,
Total revenue $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Cloud $ 31,699 15 % $ 20,201 10 % $ 11,498 57 % $ 59,457 14 % $ 35,783 8 % $ 23,674 66 % Maintenance ACV $ 277,316 $ 263,624 $ 13,692 5 % 7 % 1 year or less $ 8,429 $ 38,080 $ 173,421 $ 124,134 $ 16,259 $ 360,323 57 % (in thousands) 2019 2018 2019 2018
Subscription revenue (2) $ 125,982 $ 117,416 7 % $ 269,760 $ 262,218 3 % (1) A reconciliation of the GAAP measures to our Non-GAAP measures is contained in the financial schedules at the end of this release. Term license 24,954 12 % 31,309 16 % (6,355) (20) % 73,268 18 % 96,004 22 % (22,736) (24) % Term ACV 199,299 168,528 30,771 18 % 19 % Client Cloud: the sum of (1) the annual value of each term license contract in effect on such date, which is equal to its total license value divided by the total number of years and (2) maintenance revenue reported for the quarter ended on such date, multiplied by four. We do not provide hosting for Client Cloud arrangements. 1-2 years 915 4,678 12,530 98,842 942 117,907 19 % Three Months EndedJune 30, Six Months EndedJune 30, Three Months EndedJune 30, Six Months EndedJune 30, (1) Our 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 our consolidated financial statements prepared in accordance with GAAP. Cost of revenues $ 4,911 $ 4,257 $ 9,430 $ 7,958 June 30, 2019 December 31, 2018 Six Months EndedJune 30,
Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Maintenance 69,329 34 % 65,906 34 % 3,423 5 % 137,035 33 % 130,431 31 % 6,604 5 % Client Cloud ACV 476,615 432,152 44,463 10 % 12 % Pega Cloud: the total of the annual value of each cloud contract in effect on such date, which is equal to its total value divided by the total number of years. 2-3 years 1,306 641 5,801 75,828 227 83,803 13 % 2019 2018 2019 2018 2019 2018 Change 2019 2018 Change Selling and marketing 8,364 6,038 15,738 10,696 Assets 2019 2018
Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * (2) Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal. Subscription 125,982 61 % 117,416 60 % 8,566 7 % 269,760 65 % 262,218 61 % 7,542 3 % Pega Cloud ACV 136,074 82,376 53,698 65 % 67 % Greater than 3 years 185 2,812 63,259 66,256 11 % Revenue Total revenue - GAAP and Non-GAAP $ 205,592 $ 196,779 4 % $ 418,138 $ 431,961 (3) % Our non-GAAP financial measures reflect adjustments based on the following items: Research and development 4,572 3,802 9,132 7,439 Total cash, cash equivalents, and marketable securities $ 155,049 $ 207,423 Operating activities:
Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 * Perpetual license 19,320 9 % 13,475 7 % 5,845 43 % 34,270 8 % 36,553 8 % (2,283) (6) % Total ACV $ 612,689 $ 514,528 $ 98,161 19 % 21 % (2) As foreign currency exchange rates are an important factor in understanding period to period comparisons, we believe the presentation of ACV growth rates on a constant currency basis enhances the understanding of our results and evaluation of our performance in comparison to prior periods. The percent change in constant currency is calculated by applying the applicable current period exchange rates to prior period ACV. $ 10,650 $ 43,584 $ 194,564 $ 362,063 $ 17,428 $ 628,289 100 % Software license $ 44,274 $ 44,784 $ 107,538 $ 132,557 General and administrative 2,200 1,959 4,097 5,072 Total receivables (billed and unbilled) 422,408 504,765 Net (loss) income $ (61,013) $ 1,791
Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 * Consulting 60,290 30 % 65,888 33 % (5,598) (8) % 114,108 27 % 133,190 31 % (19,082) (14) % Change in RPO Since June 30, 2018 Maintenance 69,329 65,906 137,035 130,431 Net (loss) income - GAAP $ (32,296) $ (10,409) (210) % $ (61,013) $ 1,791 * Amortization of intangible assets: We have excluded amortization of intangible assets from our non-GAAP operating expenses and profitability measures. Amortization of intangible assets fluctuates 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 recognized during the periods presented and is expected to contribute to our future period revenues as well. Amortization of intangible assets is likely to recur in future periods. $ 20,047 $ 16,056 $ 38,397 $ 31,165 Goodwill 79,037 72,858 Adjustments to reconcile net (loss) income to cash provided by operating activities
Total revenue $ 205,592 100 % $ 196,779 100 % $ 8,813 4 % $ 418,138 100 % $ 431,961 100 % $ (13,823) (3) % $ (36,623) $ 6,640 $ 32,273 $ 148,253 $ 1,086 $ 151,629 Services 91,989 86,089 173,565 168,973 Amortization of intangible assets 1,656 2,836 4,592 5,673 Stock-based compensation: We have excluded stock-based compensation from our non-GAAP operating expenses and profitability measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to our revenues recognized during the periods presented and is expected to contribute to our future period revenues, we continue to evaluate our business performance excluding stock-based compensation. Income tax benefit $ (4,056) $ (3,341) $ (7,796) $ (6,482) Other assets 284,123 197,507 Non-cash items 73,562 51,081
(77) % 18 % 20 % 69 % 7 % 32 % Total revenue 205,592 196,779 418,138 431,961 Stock-based compensation (2) 20,047 16,056 38,397 31,165 Foreign currency transaction gain (loss): We have excluded foreign currency transaction gains and losses from our non-GAAP profitability measures. Foreign currency transaction gains and losses fluctuate in amount and frequency and are significantly affected by changes in foreign exchange market rates. Foreign currency transaction gains and losses will recur in future periods. Total assets $ 940,617 $ 982,553 Change in operating assets and liabilities, net (4,829) 22,560
Cost of revenue Foreign currency transaction gain (loss) (2,105) (1,244) 1,607 (159) (3)     Effective income tax rates were as follows: Cash provided by operating activities 7,720 75,432
June 30, 2018 Software license 928 1,262 2,306 2,517 Income tax effects (3) (10,729) (9,971) (16,386) (20,945) For additional information about our use of Non-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 "Discussion of non-GAAP financial measures" included earlier in this release and below. Liabilities and stockholders' equity Cash provided by (used in) investing activities 17,210 (46,369)
(Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total Maintenance 6,292 5,874 12,627 11,956 Net (loss) income - Non-GAAP $ (23,427) $ (2,732) (758) % $ (32,803) $ 17,525 * Six Months EndedJune 30, Accrued expenses, including compensation and related expenses $ 113,252 $ 130,177 Cash (used in) financing activities (44,367) (45,825)
1 year or less $ 28,626 $ 20,457 $ 111,086 $ 41,036 $ 12,039 $ 213,244 45 % Services 69,860 66,681 136,584 134,958 (2) Stock-based compensation was as follows: 2019 2018 Deferred revenue, current 169,009 185,145 Effect of exchange rate changes on cash and cash equivalents 515 (1,226)
1-2 years 15,862 9,878 43,837 66,529 4,103 140,209 29 % Total cost of revenue 77,080 73,817 151,517 149,431 Diluted (loss) earnings per share - GAAP $ (0.41) $ (0.13) (215) % $ (0.77) $ 0.02 * GAAP 30 % 113 % Deferred income tax liabilities 6,918 6,939 Net (decrease) in cash and cash equivalents (18,922) (17,988)
2-3 years 2,423 5,665 5,265 50,250 63,603 13 % Gross profit 128,512 122,962 266,621 282,530 Non-GAAP adjustments 0.11 0.10 0.35 0.19 Non-GAAP 22 % 25 % Other liabilities 94,151 38,761 Cash and cash equivalents, beginning of period 114,422 162,279
Greater than 3 years 362 944 2,103 55,995 200 59,604 13 % Operating expenses Diluted (loss) earnings per share - Non-GAAP $ (0.30) $ (0.03) (900) % $ (0.42) $ 0.21 * Stockholders' equity 557,287 621,531 Cash and cash equivalents, end of period $ 95,500 $ 144,291
$ 47,273 $ 36,944 $ 162,291 $ 213,810 $ 16,342 $ 476,660 100 % Selling and marketing 116,962 93,972 225,827 182,355 Total liabilities and stockholders' equity $ 940,617 $ 982,553
Research and development 49,714 41,972 100,310 88,757 Diluted weighted-average number of common shares outstanding - GAAP 78,987 78,635 % 78,787 83,247 (5) %
General and administrative 14,174 10,181 26,850 26,645 Diluted weighted-average number of common shares outstanding - Non-GAAP 78,987 78,635 % 78,787 83,247 (5) %
Total operating expenses 180,850 146,125 352,987 297,757
(Loss) from operations (52,338) (23,163) (86,366) (15,227)
Foreign currency transaction gain (loss) 2,105 1,244 (1,607) 159
Interest income, net 544 629 1,267 1,393
Other income, net 55 55 363
(Loss) before (benefit from) income taxes (49,634) (21,290) (86,651) (13,312)
(Benefit from) income taxes (17,338) (10,881) (25,638) (15,103)
Net (loss) income $ (32,296) $ (10,409) $ (61,013) $ 1,791
(Loss) earnings per share
Basic $ (0.41) $ (0.13) $ (0.77) $ 0.02
Diluted $ (0.41) $ (0.13) $ (0.77) $ 0.02
Weighted-average number of common shares outstanding
Basic 78,987 78,635 78,787 78,436
Diluted 78,987 78,635 78,787 83,247

 

 

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SOURCE Pegasystems Inc.

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