Pegasystems Announces Financial Results for Fourth Quarter and Full Year 2015
GAAP License and Cloud Revenue up 23% While Achieving Record Backlog
/EINPresswire.com/ -- CAMBRIDGE, MA--(Marketwired - February 25, 2016) - Pegasystems Inc. (NASDAQ: PEGA), the software company empowering the world's leading enterprises with strategic business applications, today announced results for its fourth quarter and full year ended December 31, 2015.
"Q4 was a very strong quarter capping off a record year for Pega that included record revenue, backlog, and bookings," said Alan Trefler, Founder and CEO, Pegasystems. "For the full year, total GAAP revenue was $683 million, an increase of 16% over 2014. We grew GAAP license and cloud revenue 23% over the full year 2014 while increasing backlog 15% over the prior year-end."
"We continue to be very positive about how our value proposition is being received and about our long-term growth opportunities," continued Mr. Trefler. "We are extremely well positioned in the market as the pace of change for organizations continues to increase. We believe the need for strategic applications to help them manage and leverage that change for competitive advantage -- while gaining efficiencies and connecting their businesses from back office to front office -- will continue to be in demand."
SELECTED GAAP & NON-GAAP RESULTS (1)
Three Months Ended December 31,
------------------------------------
($ in thousands except
per share amounts) 2015 2015 2014 2014 % Increase
---------------
Non-
GAAP Non-GAAP GAAP Non-GAAP GAAP GAAP
----------------------------------------------------------------------------
Total Revenue $204,355 $204,355 $168,924 $169,050 21% 21%
License Revenue $ 95,168 $ 95,168 $ 77,418 $ 77,418 23% 23%
Cloud Revenue $ 8,926 $ 8,926 $ 4,468 $ 4,531 100% 97%
Net Income $ 20,958 $ 29,582 $ 20,104 $ 26,104 4% 13%
Diluted Earnings per
share $ 0.26 $ 0.37 $ 0.26 $ 0.33 0% 12%
Year Ended December 31,
------------------------------------
($ in thousands except
per share amounts) 2015 2015 2014 2014 % Increase
---------------
Non-
GAAP Non-GAAP GAAP Non-GAAP GAAP GAAP
----------------------------------------------------------------------------
Total Revenue $682,695 $682,695 $590,004 $593,448 16% 15%
License Revenue $275,588 $275,588 $232,336 $233,901 19% 18%
Cloud Revenue $ 30,626 $ 30,626 $ 16,614 $ 17,332 84% 77%
Net Income $ 36,322 $ 63,960 $ 33,255 $ 58,167 9% 10%
Diluted Earnings per
share (2) $ 0.46 $ 0.81 $ 0.42 $ 0.74 10% 9%
(1) See a reconciliation of our GAAP to Non-GAAP measures contained in the
financial schedules at the end of this release.
(2) The number of common shares and per share amounts have been
retroactively restated for all prior periods to reflect the Company's two-
for-one common stock split effected in the form of a common stock dividend
distributed on April 1, 2014.
Cash: Total cash, cash equivalents, and marketable securities at December 31, 2015 was $219.1 million, up 4% from December 31, 2014.
Cash generated from operations for the full year 2015 was $62.5 million. Free Cash Flow, which we define as operating cash flow less Cap Ex, was $51.5 million for 2015.
License and Cloud Backlog: The Company computes license and cloud backlog by adding billed deferred license and cloud revenue and off-balance sheet license and cloud commitments, which is business that is contracted, unbilled, and not recorded on the Company's balance sheet.
License and Cloud Backlog (1)
December 31,
($ in thousands) 2015 2014 % Change
----------------------------------------------------------------------------
Total billed deferred license and cloud revenue 63,412 63,048 1%
Total off-balance sheet license and cloud
commitments (2) 356,388 301,409 18%
TOTAL LICENSE AND CLOUD BACKLOG 419,800 364,457 15%
(1) See historical quarterly license backlog amounts including cloud in a
separate schedule at the end of this release.
(2) See the "Future Cash Receipts from License and Cloud Arrangements" table
on page 34 of the Annual Report on Form 10-K for the period ending December
31, 2015.
Business Outlook: As of February 25, 2016, Pegasystems is initiating revenue and EPS guidance for the full year 2016 as follows:
Full Year 2016 Revenue: GAAP and non-GAAP revenue for the full year 2016 is projected to be approximately $780 million.
Full Year 2016 Earnings Per Share: GAAP diluted earnings per share for the full year 2016 is expected to be approximately $0.50. Non-GAAP diluted earnings per share for the full year 2016 is expected to be approximately $0.95.
See the reconciliation of our GAAP diluted EPS guidance to non-GAAP diluted EPS guidance for the full year of 2016 at the end of this release.
Quarterly Conference Call
Pegasystems will host a conference call and audio-only Webcast associated with this announcement at 5:00 p.m. EST today. A live audio webcast of the conference call, together with detailed financial information, can be accessed through the Company's Website at www.pega.com/about/investors. Dial-in information is as follows: 1-877-407-3982 (domestic) or 1-201-493-6780 (international). To listen to the Webcast, log onto www.pega.com at least five minutes prior to the event's broadcast and click on the Webcast icon in the Investors section. A replay of the call will also be available on www.pega.com by clicking the Earnings Calls link in the Investors section.
Discussion of Non-GAAP Financial Measures:
To supplement 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 both on a GAAP and non-GAAP basis, and both are approved by our board of directors. In addition and as a consequence 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 certain business combination accounting entries, stock-based compensation expense, amortization of acquired intangibles, acquisition-related and restructuring expenses, and certain other adjustments. The Company believes that 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 to non-GAAP measures is included in the financial schedules at the end of this release.
Forward-Looking Statements
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: 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, including our guidance regarding 2016 GAAP and non-GAAP revenue and diluted earnings per share. The words "expect," "anticipate," "intend," "plan," "believe," "could," "estimate," "may," "target," "strategy," "is intended to," "project," "guidance", or variations of such words and similar expressions, among others, identify forward-looking statements, which speak only as of the date the statement was made. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause the Company's actual results to differ from those expressed in such forward-looking statements. These risks and uncertainties include, among others, variation in demand for our products and services and the difficulty in predicting the completion of product acceptance and other factors affecting the timing of our license revenue recognition; the ongoing consolidation in the financial services, insurance, healthcare, and communications markets; reliance on third party relationships; the potential loss of vendor specific objective evidence for our time and materials professional services arrangements; the inherent risks associated with international operations and the continued weakness in international economies; foreign currency exchange rates; the financial impact of the Company's past acquisitions and any future acquisitions; the potential legal and financial liabilities and reputation damage due to cyber-attacks and security breaches, and management of the Company's growth. Further information regarding these and other factors which could cause the Company's actual results to differ materially from any forward-looking statements contained in this press release is contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and other recent filings with the Securities and Exchange Commission. These documents are available on the Company's website at http://www.pega.com/about/investors. The forward-looking statements contained in this press release represent the Company's views as of February 25, 2016. Investors are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved. Although subsequent events may cause the Company's view to change, except as required by applicable law, the Company does not undertake and specifically disclaims any obligation to publicly update or revise these forward-looking statements whether as the result of new information, future events or otherwise. The statements should therefore not be relied upon as representing the Company's view as of any date subsequent to February 25, 2016.
About Pegasystems
Pegasystems (NASDAQ: PEGA) develops strategic applications for marketing, sales, service, and operations. Pega's applications streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements. Pega's Global 3000 customers include many of the world's most sophisticated and successful enterprises. Pega's applications, available in the cloud or on-premises, are built on its unified Pega 7 platform, which uses visual tools to easily extend and change applications to meet clients' strategic business needs. Pega's clients report that Pega gives them the fastest time to value, extremely rapid deployment, efficient re-use and global scale. For more information, please visit us at www.pega.com.
All trademarks are the property of their respective owners.
Pegasystems Inc.
Condensed Consolidated Statements of Operations
($ in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2015 2014 2015 2014
---------- ---------- ---------- ----------
Revenue:
Software license $ 95,168 $ 77,418 $ 275,588 $ 232,336
Maintenance 52,436 48,684 202,802 186,239
Services 56,751 42,822 204,305 171,429
---------- ---------- ---------- ----------
Total revenue 204,355 168,924 682,695 590,004
---------- ---------- ---------- ----------
Cost of revenue:
Software license 1,019 1,127 4,125 4,959
Maintenance 5,603 4,921 21,903 20,014
Services 46,543 40,060 187,418 160,121
---------- ---------- ---------- ----------
Total cost of revenue (1) 53,165 46,108 213,446 185,094
---------- ---------- ---------- ----------
Gross profit 151,190 122,816 469,249 404,910
---------- ---------- ---------- ----------
Operating expenses:
Selling and marketing 71,623 55,886 241,387 206,658
Research and development 32,126 28,101 126,374 108,591
General and administrative 10,600 9,065 36,738 37,442
Acquisition-related 50 71 89 488
Restructuring - - - 192
---------- ---------- ---------- ----------
Total operating expenses
(1) 114,399 93,123 404,588 353,371
---------- ---------- ---------- ----------
Income from operations 36,791 29,693 64,661 51,539
Foreign currency transaction
gain (loss) 174 (1,242) (4,168) (3,769)
Interest income, net 249 215 1,056 683
Other (expense) income, net (716) 48 (1,044) (459)
---------- ---------- ---------- ----------
Income before provision for
income taxes 36,498 28,714 60,505 47,994
Provision for income taxes 15,540 8,610 24,183 14,739
---------- ---------- ---------- ----------
Net income $ 20,958 $ 20,104 $ 36,322 $ 33,255
========== ========== ========== ==========
Earnings per share :
Basic $ 0.27 $ 0.27 $ 0.47 $ 0.44
========== ========== ========== ==========
Diluted $ 0.26 $ 0.26 $ 0.46 $ 0.42
========== ========== ========== ==========
Weighted-average number of
common shares outstanding:
Basic 76,466 76,369 76,507 76,327
Diluted 79,456 78,531 79,043 78,531
Dividends declared per share $ 0.03 $ 0.03 $ 0.12 $ 0.105
========== ========== ========== ==========
(1) Includes stock-based
compensation as follows:
Cost of revenue $ 2,253 $ 1,519 $ 8,772 $ 5,335
Operating expenses $ 4,796 $ 3,965 $ 21,282 $ 13,870
PEGASYSTEMS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($in thousands, except per share amounts)
Three Months Ended December 31,
---------------------------------------------------------
2015 2014
2015 GAAP Adj. Non-GAAP 2014 GAAP Adj. Non-GAAP
---------------------------------------------------------------------------
TOTAL REVENUE $204,355 $ - $204,355 $168,924 $ 126 $169,050
Software license 95,168 - 95,168 77,418 - 77,418
Maintenance 52,436 - 52,436 48,684 63 48,747
Services 56,751 - 56,751 42,822 63 42,885
TOTAL COST OF
REVENUE $ 53,165 $(3,604) $ 49,561 $ 46,108 $(2,870) $ 43,238
Amortization of
intangible
assets (2) 1,351 (1,351) - 1,351 (1,351) -
Stock-based
compensation 2,253 (2,253) - 1,519 (1,519) -
GROSS MARGIN % 74% 76% 73% 74%
TOTAL OPERATING
EXPENSES (3) $114,399 $(6,132) $108,267 $ 93,123 $(5,857) $ 87,266
Amortization of
intangible
assets (2) 1,615 (1,615) - 1,821 (1,821) -
Stock-based
compensation 4,796 (4,796) - 3,965 (3,965) -
Other
adjustments (329) 329 - - - -
Acquisition-
related 50 (50) - 71 (71) -
INCOME FROM
OPERATIONS $ 36,791 $ 9,736 $ 46,527 $ 29,693 $ 8,853 $ 38,546
OPERATING MARGIN % 18% 23% 18% 23%
INCOME TAX EFFECTS
(4) $ 15,540 $ 1,112 $ 16,652 $ 8,610 $ 2,853 $ 11,463
NET INCOME $ 20,958 $ 8,624 $ 29,582 $ 20,104 $ 6,000 $ 26,104
DILUTED EARNINGS
PER SHARE $ 0.26 $ 0.11 $ 0.37 $ 0.26 $ 0.07 $ 0.33
DILUTED WEIGHTED-
AVERAGE COMMON
SHARES
OUTSTANDING 79,456 - 79,456 78,531 - 78,531
% Increase (Decrease)
-----------------------
GAAP Non-GAAP
-----------------------------------------
TOTAL REVENUE 21% 21%
Software license 23% 23%
Maintenance 8% 8%
Services 33% 32%
TOTAL COST OF
REVENUE 15% 15%
Amortization of
intangible
assets (2)
Stock-based
compensation
GROSS MARGIN % 128 bp 132 bp
TOTAL OPERATING
EXPENSES (3) 23% 24%
Amortization of
intangible
assets (2)
Stock-based
compensation
Other
adjustments
Acquisition-
related
INCOME FROM
OPERATIONS 24% 21%
OPERATING MARGIN % 43 bp (3)bp
INCOME TAX EFFECTS
(4) 80% 45%
NET INCOME 4% 13%
DILUTED EARNINGS
PER SHARE 0% 12%
DILUTED WEIGHTED-
AVERAGE COMMON
SHARES
OUTSTANDING 1% 1%
PEGASYSTEMS INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($in thousands, except per share amounts)
Year Ended December 31,
-----------------------------------------------------------
2015 2014
2015 GAAP Adj. Non-GAAP 2014 GAAP Adj. Non-GAAP
---------------------------------------------------------------------------
TOTAL REVENUE $682,695 $ - $682,695 $590,004 $ 3,444 $593,448
Software
license 275,588 - 275,588 232,336 1,565 233,901
Maintenance 202,802 - 202,802 186,239 533 186,772
Services 204,305 - 204,305 171,429 1,346 172,775
TOTAL COST OF
REVENUE $213,446 $(14,089) $199,357 $185,094 $(11,352) $173,742
Amortization
of intangible
assets (2) 5,392 (5,392) - 6,017 (6,017) -
Stock-based
compensation 8,772 (8,772) - 5,335 (5,335) -
Other
adjustments (75) 75 - - - -
GROSS MARGIN % 69% 71% 69% 71%
TOTAL OPERATING
EXPENSES (3) $404,588 $(23,997) $380,591 $353,371 $(22,342) $331,029
Amortization
of intangible
assets (2) 6,810 (6,810) - 7,792 (7,792) -
Stock-based
compensation 21,282 (21,282) - 13,870 (13,870) -
Other
adjustments (4,184) 4,184 - - - -
Acquisition-
related 89 (89) - 488 (488) -
Restructuring - - - 192 (192) -
INCOME FROM
OPERATIONS $ 64,661 $ 38,086 $102,747 $ 51,539 $ 37,138 $ 88,677
OPERATING MARGIN
% 9% 15% 9% 15%
INCOME TAX
EFFECTS (4) $ 24,183 $ 10,448 $ 34,631 $ 14,739 $ 12,226 $ 26,965
NET INCOME $ 36,322 $ 27,638 $ 63,960 $ 33,255 $ 24,912 $ 58,167
DILUTED EARNINGS
PER SHARE $ 0.46 $ 0.35 $ 0.81 $ 0.42 $ 0.32 $ 0.74
DILUTED
WEIGHTED-
AVERAGE COMMON
SHARES
OUTSTANDING 79,043 - 79,043 78,531 - 78,531
% Increase
-----------------------
GAAP Non-GAAP
---------------------------------------
TOTAL REVENUE 16% 15%
Software
license 19% 18%
Maintenance 9% 9%
Services 19% 18%
TOTAL COST OF
REVENUE 15% 15%
Amortization
of intangible
assets (2)
Stock-based
compensation
Other
adjustments
GROSS MARGIN % 11 bp 8 bp
TOTAL OPERATING
EXPENSES (3) 14% 15%
Amortization
of intangible
assets (2)
Stock-based
compensation
Other
adjustments
Acquisition-
related
Restructuring
INCOME FROM
OPERATIONS 25% 16%
OPERATING MARGIN
% 74 bp 11 bp
INCOME TAX
EFFECTS (4) 64% 28%
NET INCOME 9% 10%
DILUTED EARNINGS
PER SHARE 10% 9%
DILUTED
WEIGHTED-
AVERAGE COMMON
SHARES
OUTSTANDING 1% 1%
PEGASYSTEMS INC.
FOOTNOTES FOR RECONCILIATON OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(1) This presentation includes non-GAAP measures. Our non-GAAP 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. For a detailed explanation of the adjustments made to comparable 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 disclosure under Discussion of Non-GAAP Financial Measures included earlier in this release and below. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:
Revenue: Business combination accounting rules require that we determine the fair value of the deferred revenue liability for contractual obligations assumed primarily from our acquisition of Antenna Software, Inc. and its subsidiaries ("Antenna") in October 2013. In post-acquisition reporting periods, we recognize revenue for the fair value of these contracts, when all the revenue recognition criteria are satisfied, instead of the revenue that would have been recognized by Antenna as an independent company. We add back the effect of the deferred revenue fair value adjustment in non-GAAP revenue to reflect the full amount of these revenues to provide a more complete comparison of the revenue guidance to peer companies. No adjustments were made to revenue for 2015.
Amortization of intangible assets: We have excluded the amortization expense of intangible assets from our non-GAAP operating expenses and net earnings measures. Amortization of intangible assets is inconsistent 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 earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.
Stock-based compensation expenses: We have excluded stock-based compensation expense from our non-GAAP operating expenses and net earnings measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expense.
Acquisition-related and restructuring expenses: We have excluded the effect of acquisition-related and restructuring expenses from our non-GAAP operating expenses and net earnings measures. We incurred direct and incremental expenses associated primarily with the Antenna and 2014 acquisitions. These acquisition-related expenses were primarily professional fees to affect the acquisitions. We have also incurred restructuring expenses related to the integration of the Antenna acquisition, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Restructuring expenses consist primarily of lease exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses.
Other adjustments: We reached an agreement with the former shareholders of Antenna to release a portion of the funds held in escrow as security for their indemnification obligations to us in settlement of the outstanding indemnification claims. The settlement resulted in a benefit to cost of revenue and operating expenses in the first quarter of 2015. In addition, we favorably settled indirect tax liabilities related to the Antenna acquisition, which resulted in a benefit to operating expenses in the first quarter of 2015. In the fourth quarter of 2015, we reduced our estimate of the additional cash consideration payable to selling shareholders of one of the three companies acquired in 2014 based on the achievement of certain performance milestones. We believe the benefits associated with these items are not representative of our ongoing business, and we have excluded the effects of these items from our non-GAAP operating results and net earnings measures.
(2) Estimated future annual amortization expense related to intangible assets as of December 31, 2015 is as follows:
(in thousands)
2016 $ 11,517
2017 9,818
2018 8,819
2019 3,027
2020 and thereafter 237
----------
Total intangible assets subject to amortization $ 33,418
==========
(3) Below is a reconciliation of non-GAAP operating expenses:
Three Months Ended December 31,
---------------------------------------------------------
2015 2015 2014 2014
(in thousands) GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
----------------------------------------------------------------------------
Selling and
marketing $ 71,623 $ (3,824) $ 67,799 $ 55,886 $ (3,045) $ 52,841
Amortization of
intangible
assets 1,525 (1,525) - 1,526 (1,526) -
Stock-based
compensation 2,628 (2,628) - 1,519 (1,519) -
Other
Adjustments (329) 329 - - - -
Research and
development $ 32,126 $ (1,938) $ 30,188 $ 28,101 $ (1,640) $ 26,461
Stock-based
compensation 1,938 (1,938) - 1,640 (1,640) -
General and
administrative $ 10,600 $ (320) $ 10,280 $ 9,065 $ (1,101) $ 7,964
Amortization of
intangible
assets 90 (90) - 295 (295) -
Stock-based
compensation 230 (230) - 806 (806) -
Acquisition-
related $ 50 $ (50) $ - $ 71 $ (71) $ -
TOTAL OPERATING
EXPENSES $114,399 $ (6,132) $ 108,267 $ 93,123 $ (5,857) $ 87,266
Year Ended December 31,
---------------------------------------------------------
2015 2015 2014 2014
(in thousands) GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
----------------------------------------------------------------------------
Selling and
marketing $241,387 $(14,702) $ 226,685 $206,658 $(11,403) $195,255
Amortization of
intangible
assets 6,127 (6,127) - 6,022 (6,022) -
Stock-based
compensation 8,911 (8,911) - 5,381 (5,381) -
Other
adjustments (336) 336 - - - -
Research and
development $126,374 $ (7,676) $ 118,698 $108,591 $ (4,841) $103,750
Stock-based
compensation 8,116 (8,116) - 4,841 (4,841) -
Other
adjustments (440) 440 - - -
General and
administrative $ 36,738 $ (1,530) $ 35,208 $ 37,442 $ (5,418) $ 32,024
Amortization of
intangible
assets 683 (683) - 1,770 (1,770) -
Stock-based
compensation 4,255 (4,255) - 3,648 (3,648) -
Other
adjustments (3,408) 3,408 - - - -
Acquisition-
related $ 89 $ (89) $ - $ 488 $ (488) $ -
Restructuring $ - $ - $ - $ 192 $ (192) $ -
TOTAL OPERATING
EXPENSES $404,588 $(23,997) $ 380,591 $353,371 $(22,342) $331,029
(4) The GAAP income tax effects were calculated using an effective tax rate of 42.6% and 30% for the fourth quarter of 2015 and 2014, respectively. The non-GAAP income tax effects were calculated using an effective non-GAAP tax rate of 36% and 30.5% for the fourth quarter of 2015 and 2014, respectively.
The GAAP income tax effects were calculated using an effective tax rate of 40% and 30.7% for the full year 2015 and 2014, respectively. The non-GAAP income tax effects were calculated using an effective non-GAAP tax rate of 35.1% and 31.7% for the full year 2015 and 2014, respectively.
The differences between our GAAP and non-GAAP effective tax rates for 2015 primarily relate to the favorable impact of stock-based compensation expense adjustments on non-GAAP effective tax rates. The differences between our GAAP and non-GAAP effective tax rates for 2014 primarily relate to the impact of higher non-GAAP income subjected to tax in higher tax rate jurisdictions.
Pegasystems Inc.
Condensed Consolidated Balance Sheets
(in thousands)
As of As of
December 31, December 31,
2015 2014
-------------- --------------
Current Assets:
Cash and cash equivalents $ 93,026 $ 114,585
Marketable securities 126,052 96,631
-------------- --------------
Total cash, cash equivalents, and
marketable securities 219,078 211,216
Trade accounts receivable, net 211,846 154,844
Deferred income taxes 12,380 12,974
Income taxes receivable 4,770 4,502
Other current assets 10,791 9,544
-------------- --------------
Total current assets 458,865 393,080
Property and equipment, net 31,319 30,156
Long-term deferred income taxes 53,350 69,258
Long-term other assets 4,030 2,783
Intangible assets, net 33,418 45,664
Goodwill 46,776 46,860
-------------- --------------
Total assets $ 627,758 $ 587,801
============== ==============
Current liabilities:
Accounts payable $ 12,675 $ 4,752
Accrued expenses 42,768 42,958
Accrued compensation and related expenses 55,872 47,250
Deferred revenue 155,873 134,672
-------------- --------------
Total current liabilities 267,188 229,632
Income taxes payable 5,618 24,896
Long-term deferred revenue 15,805 20,859
Other long-term liabilities 16,288 17,709
-------------- --------------
Total liabilities 304,899 293,096
Stockholders' equity: 322,859 294,705
-------------- --------------
Total liabilities and stockholders' equity $ 627,758 $ 587,801
============== ==============
Pegasystems Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
Year Ended
December 31,
2015 2014
------------- -------------
Operating activities:
Net income $ 36,322 $ 33,255
Adjustments to reconcile net income to cash
provided by operating activities:
Excess tax benefits from equity awards and
deferred income taxes (7,374) (17,283)
Depreciation, amortization, foreign
currency transaction loss, and other non-
cash items 30,321 28,290
Stock-based compensation expense 30,054 19,205
Change in operating assets and
liabilities, net (26,795) 36,422
------------- -------------
Cash provided by operating activities 62,528 99,889
------------- -------------
Cash used in investing activities (44,452) (37,657)
------------- -------------
Cash used in financing activities (35,384) (24,032)
------------- -------------
Effect of exchange rates on cash and cash
equivalents (4,251) (3,846)
------------- -------------
Net (decrease) increase in cash and cash
equivalents (21,559) 34,354
Cash and cash equivalents, beginning of period 114,585 80,231
------------- -------------
Cash and cash equivalents, end of period $ 93,026 $ 114,585
============= =============
Pegasystems Inc.
Historical License and Cloud Backlog
(in thousands)
----------------------------------------------------------------------------
2015 2015 2015 2015
Q4 Q3 Q2 Q1
----------------------------------------------------------------------------
Total billed deferred license
and cloud revenue 63,412 55,370 61,339 79,639
--------------------------------------------
Total off-balance sheet
license and cloud commitments 356,388 324,340 330,043 294,412
--------------------------------------------
TOTAL LICENSE AND CLOUD BACKLOG $ 419,800 $ 379,710 $ 391,382 $ 374,051
============================================
---------------------------------------------------------------------------
2014 2014 2014 2014
Q4 Q3 Q2 Q1
---------------------------------------------------------------------------
Total billed deferred license
and cloud revenue 63,048 68,561 54,938 62,741
-------------------------------------------
Total off-balance sheet
license and cloud commitments 301,409 265,309 298,658 270,243
-------------------------------------------
TOTAL LICENSE AND CLOUD BACKLOG $ 364,457 $ 333,870 $ 353,596 $ 332,984
===========================================
Pegasystems Inc.
FY 2016 Reconciliation of Forward-Looking Guidance
($in thousands, except per share amounts)
Full Year 2016
---------------------------
Net Income and Diluted EPS - GAAP basis $ 39,893 $ 0.50
Adjustment to exclude amortization of intangible
assets, net of tax 7,688 0.10
Adjustment to exclude stock-based compensation,
net of tax 27,320 0.35
------------- -------------
Net Income and Diluted EPS - Non-GAAP basis $ 74,901 $ 0.95
============= =============
Press Contacts:
Lisa Pintchman
Pegasystems Inc.
lisa.pintchman@pega.com
(617) 866-6022
Twitter: https://twitter.com/pega
Investor Contact:
Sheila Ennis
ICR for Pegasystems
PegaInvestorRelations@pega.com
617-866-6077
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