Pegasystems Earnings: Here’s Why Investors are Not Excited Now
Pegasystems Inc. (NASDAQ:PEGA) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.53%.
Pegasystems Inc. Earnings Cheat Sheet
Results: Net income for the second quarter of 2013 was $4.7 million, or $0.12 per share, compared to net loss of $2.3 million, or $(0.06) per share, for the second quarter of 2012. Earnings missed estimates by $0.05 per share.
Revenue: Rose 12% compared to the second quarter of 2012.
Actual vs. Wall St. Expectations: Pegasystems Inc. reported adjusted EPS income of $0.12 per share. By that measure, the company missed the mean analyst estimates. It beat the average revenue estimate of $115.58 million.
Quoting Management: “Our software license revenue growth, up 25 percent year to date, is a sign that more global enterprises see Pega as a better way to achieve their strategic business goals,” said Alan Trefler, Founder and CEO of Pegasystems. “This trend was also evident at PegaWORLD 2013 in Orlando in June, where we hosted a record number of clients, partners and prospects, with keynotes from global brands such as Cisco, AIG, and Accenture. Their success stories show that Pega is being used to drive rapid transformational change that boosts operational efficiency, better engages customers, and improves sales and marketing effectiveness. We also previewed our Pega 7 platform, which will change the game by making it faster and easier to create highly scalable BPM, Case Management and CRM solutions. Clients clearly continue to see an agility advantage in our unified platform, and Pega 7 takes this advantage to a whole new level.”