Pegasystems (PEGA) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates

Pegasystems (PEGA) reported $330.15 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 1.4%. EPS of $0.48 for the same period compares to $0.23 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $339.7 million, representing a surprise of -2.81%. The company delivered an EPS surprise of -2.04%, with the consensus EPS estimate being $0.49.

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.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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- Pega Cloud: $130.90 million versus the three-analyst average estimate of $126.95 million. The reported number represents a year-over-year change of +21.3%.

• Revenue- Subscription license: $63.34 million versus the three-analyst average estimate of $76.88 million. The reported number represents a year-over-year change of -25.1%.

• Revenue- Consulting: $54.05 million versus the two-analyst average estimate of $54.37 million. The reported number represents a year-over-year change of +1.9%.

• Revenue- Maintenance: $81 million versus $81.61 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +1.7% change.

• Revenue- Perpetual license: $0.86 million versus the two-analyst average estimate of $0.38 million. The reported number represents a year-over-year change of +113.2%.

• Revenue- Subscription: $275.24 million versus $288.70 million estimated by two analysts on average.

View all Key Company Metrics for Pegasystems here>>>

Shares of Pegasystems have returned -9.6% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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