Pegasystems Announces Financial Results for Second Quarter and First Six Months of 2016
Total Revenue Growth Exceeds 16% for First Half 2016
CAMBRIDGE, MA--(Marketwired - August 03, 2016) - Pegasystems Inc. (NASDAQ: PEGA), the software company empowering the world's leading enterprises with strategic applications for customer engagement, today announced results for its second quarter and six months ended June 30, 2016.
"We are pleased with our results for the first half of 2016," said Alan Trefler, Founder and CEO of Pegasystems. "An increasing number of organizations are choosing Pega
SELECTED GAAP & NON-GAAP RESULTS (1) Three Months Ended June 30, ------------------------------------------- 2016 2016 2015 2015 % Increase ------------------ ($ in thousands except per Non- share amounts) GAAP Non-GAAP GAAP Non-GAAP GAAP GAAP ---------------------------------------------------------------------------- Total Revenue $ 188,996 $ 189,846 $ 162,019 $ 162,019 17% 17% License Revenue $ 70,671 $ 70,685 $ 63,497 $ 63,497 11% 11% Cloud Revenue $ 11,269 $ 11,364 $ 7,279 $ 7,279 55% 56% Net Income $ 3,647 $ 14,644 $ 3,104 $ 10,945 17% 34% Diluted Earnings per share $ 0.05 $ 0.19 $ 0.04 $ 0.14 25% 36%
Six Months Ended June 30, ---------------------------------------- 2016 2016 2015 2015 % Increase -------------------- ($ in thousands except per share amounts) GAAP Non-GAAP GAAP Non-GAAP GAAP Non-GAAP ---------------------------------------------------------------------------- Total Revenue $ 367,854 $ 368,704 $ 315,937 $ 315,937 16% 17% License Revenue $ 139,016 $ 139,030 $ 121,472 $ 121,472 14% 14% Cloud Revenue $ 19,767 $ 19,862 $ 13,456 $ 13,456 47% 48% Net Income $ 12,652 $ 32,447 $ 9,039 $ 21,131 40% 54% Diluted Earnings per share $ 0.16 $ 0.41 $ 0.11 $ 0.27 45% 52%
/EINPresswire.com/ -- (1) See a reconciliation of our GAAP to Non-GAAP measures contained in the financial schedules at the end of this release.
"It was good to see strength in the first half of 2016 despite global volatility and adverse currency shifts," said Ken Stillwell, Pegasystems CFO. "We continue to drive long-term, strategic value for our new and existing clients who select us as their key strategic partner. While our openness to licensing to clients through term, cloud, or perpetual can lead to quarterly variations, we are excited by our long-term growth trend as a true value measure."
Cash: Total cash, cash equivalents, and marketable securities at June 30, 2016 was $137.6 million, down 37% from 2015 year-end, primarily due to the cash payment of $48.8 million to acquire OpenSpan Inc. ("OpenSpan"), net of cash acquired.
Cash generated from operations for the first six months of 2016 was $9.3 million.
License and Cloud Backlog: The Company computes license and cloud backlog by adding deferred license and cloud revenue as recorded on the Company's balance sheet and license and cloud commitments, which are not billed and not recorded on its balance sheet.
License and Cloud Backlog (1) June 30, ($ in thousands) 2016 2015 % Change ---------------------------------------------------------------------------- Total deferred license and cloud revenue 51,855 61,339 (15%) Total license and cloud commitments not on the balance sheet (2) 340,777 330,043 3% TOTAL LICENSE AND CLOUD BACKLOG $ 392,632 $ 391,382 0%
(1) See historical quarterly license and cloud backlog amounts in a separate schedule at the end of this release.
(2) See the "Future Cash Receipts from License and Cloud Arrangements" table on page 24 of the Quarterly Report on Form 10-Q for the quarter ended June 30, 2016.
Quarterly Conference Call
Pegasystems will host a conference call and audio-only Webcast associated with this announcement at 5:00 p.m. EDT 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: 1-877-705-6003 (domestic) or 1-201-493-6725 (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. 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, including the OpenSpan acquisition, 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 August 3, 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 August 3, 2016.
About Pegasystems
Pegasystems Inc. (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
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Pegasystems Inc. Unaudited Condensed Consolidated Statements of Operations ($ in thousands, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 ---------- ---------- ---------- ---------- Revenue: Software license $ 70,671 $ 63,497 $ 139,016 $ 121,472 Maintenance 55,161 49,329 108,136 98,081 Services 63,164 49,193 120,702 96,384 ---------- ---------- ---------- ---------- Total revenue 188,996 162,019 367,854 315,937 ---------- ---------- ---------- ---------- Cost of revenue: Software license 1,312 1,030 2,333 2,106 Maintenance 6,315 5,476 12,230 10,656 Services 52,473 48,275 102,047 92,078 Total cost of revenue (1) 60,100 54,781 116,610 104,840 ---------- ---------- ---------- ---------- Gross profit 128,896 107,238 251,244 211,097 ---------- ---------- ---------- ---------- Operating expenses: Selling and marketing 74,016 60,389 135,094 116,124 Research and development 35,574 31,372 70,494 61,216 General and administrative 11,294 10,214 22,342 16,559 Acquisition-related 1,623 13 2,542 39 Restructuring 29 - 287 - ---------- ---------- ---------- ---------- Total operating expenses (1) 122,536 101,988 230,759 193,938 ---------- ---------- ---------- ---------- Income from operations 6,360 5,250 20,485 17,159 Foreign currency transaction gain (loss) 306 (968) 1,682 (3,930) Interest income, net 188 216 478 529 Other (expense) income, net (1,356) 3 (3,654) 3 ---------- ---------- ---------- ---------- Income before provision for income taxes 5,498 4,501 18,991 13,761 Provision for income taxes 1,851 1,397 6,339 4,722 ---------- ---------- ---------- ---------- Net income $ 3,647 $ 3,104 $ 12,652 $ 9,039 ========== ========== ========== ========== Earnings per share : Basic $ 0.05 $ 0.04 $ 0.17 $ 0.12 ========== ========== ========== ========== Diluted $ 0.05 $ 0.04 $ 0.16 $ 0.11 ========== ========== ========== ========== Weighted-average number of common shares outstanding: Basic 76,318 76,626 76,347 76,514 Diluted 78,969 78,950 78,924 78,771 Dividends declared per share $ 0.03 $ 0.03 $ 0.06 $ 0.06 ========== ========== ========== ========== (1) Includes stock-based compensation as follows: Cost of revenue $ 2,914 $ 2,281 $ 5,594 $ 4,234 10,680 Operating expenses $ 7,967 $ 6,364 $ 14,222 $
PEGASYSTEMS INC. RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) ($in thousands, except per share amounts)
Three Months Ended June 30, --------------------------------------------------------- 2016 2016 2015 2015 GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP ---------------------------------------------------------------------------- TOTAL REVENUE $188,996 $ 850 $189,846 $162,019 $ - $162,019 Software license 70,671 14 70,685 63,497 - 63,497 Maintenance 55,161 729 55,890 49,329 - 49,329 Services 63,164 107 63,271 49,193 - 49,193 TOTAL COST OF REVENUE $ 60,100 $ (4,552) $ 55,548 $ 54,781 $(3,628) $ 51,153 Amortization of intangible assets (2) 1,638 (1,638) - 1,347 (1,347) - Stock-based compensation 2,914 (2,914) - 2,281 (2,281) - GROSS MARGIN % 68% 71% 66% 68% TOTAL OPERATING EXPENSES (3) 122,536 (11,013) 111,523 101,988 (8,149) 93,839 Amortization of intangible assets (2) 1,966 (1,966) - 1,772 (1,772) - Stock-based compensation 7,967 (7,967) - 6,364 (6,364) - Other adjustments (220) 220 - - - - Acquisition- related 1,271 (1,271) - 13 (13) - Restructuring 29 (29) - - - - INCOME FROM OPERATIONS $ 6,360 $ 16,415 $ 22,775 $ 5,250 $11,777 17,027 OPERATING MARGIN % 3% 12% 3% 11% INCOME TAX EFFECTS (4) $ 1,851 $ 5,418 $ 7,269 $ 1,397 $ 3,936 $ 5,333 NET INCOME $ 3,647 $ 10,997 $ 14,644 $ 3,104 $ 7,841 $ 10,945 DILUTED EARNINGS PER SHARE $ 0.05 $ 0.14 $ 0.19 $ 0.04 $ 0.10 $ 0.14 DILUTED WEIGHTED- AVERAGE COMMON SHARES OUTSTANDING 78,969 - 78,969 78,950 - 78,950 % Increase -------------------- Non- GAAP GAAP -------------------------------------- TOTAL REVENUE 17% 17% Software license 11% 11% Maintenance 12% 13% Services 28% 29% TOTAL COST OF REVENUE 10% 9% Amortization of intangible assets (2) Stock-based compensation GROSS MARGIN % 201 bp 231 bp TOTAL OPERATING EXPENSES (3) 20% 19% Amortization of intangible assets (2) Stock-based compensation Other adjustments Acquisition- related Restructuring INCOME FROM OPERATIONS 21% 34% OPERATING MARGIN % 12 bp 149 bp INCOME TAX EFFECTS (4) 32% 36% NET INCOME 17% 34% DILUTED EARNINGS PER SHARE 25% 36% DILUTED WEIGHTED- AVERAGE COMMON SHARES OUTSTANDING 0% 0%
PEGASYSTEMS INC. RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) ($in thousands, except per share amounts)
Six Months Ended June 30, ------------------------------------------------------------ 2016 2016 2015 2015 GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP ---------------------------------------------------------------------------- TOTAL REVENUE $367,854 $ 850 $ 368,704 $315,937 $ - $ 315,937 Software license 139,016 14 139,030 121,472 - 121,472 Maintenance 108,136 729 108,865 98,081 - 98,081 Services 120,702 107 120,809 96,384 - 96,384 TOTAL COST OF REVENUE $116,610 $ (8,578) $ 108,032 $104,840 $ (6,849) $ 97,991 Amortization of intangible assets (2) 2,984 (2,984) - 2,690 (2,690) - Stock-based compensation 5,594 (5,594) - 4,234 (4,234) - Other adjustments - - - (75) 75 - GROSS MARGIN % 68% 71% 67% 69% TOTAL OPERATING EXPENSES (3) $230,759 $(20,064) $ 210,695 $193,938 $(10,431) $ 183,507 Amortization of intangible assets (2) 3,585 (3,585) - 3,567 (3,567) - Stock-based compensation 14,222 (14,222) - 10,680 (10,680) - Other adjustments (220) 220 - (3,855) 3,855 - Acquisition- related 2,190 (2,190) - 39 (39) - Restructuring 287 (287) - - - - INCOME FROM OPERATIONS $ 20,485 $ 29,492 $ 49,977 $ 17,159 $ 17,280 $ 34,439 OPERATING MARGIN % 6% 14% 5% 11% INCOME TAX EFFECTS (4) $ 6,339 $ 9,697 $ 16,036 $ 4,722 $ 5,188 $ 9,910 NET INCOME $ 12,652 $ 19,795 $ 32,447 $ 9,039 $ 12,092 $ 21,131 DILUTED EARNINGS PER SHARE $ 0.16 $ 0.25 $ 0.41 $ 0.11 $ 0.16 $ 0.27 DILUTED WEIGHTED- AVERAGE COMMON SHARES OUTSTANDING 78,924 - 78,924 78,771 - 78,771 % Increase ------------------------- GAAP Non-GAAP ---------------------------------------- TOTAL REVENUE 16% 17% Software license 14% 14% Maintenance 10% 11% Services 25% 25% TOTAL COST OF REVENUE 11% 10% Amortization of intangible assets (2) Stock-based compensation Other adjustments GROSS MARGIN % 148 bp 172 bp TOTAL OPERATING EXPENSES (3) 19% 15% Amortization of intangible assets (2) Stock-based compensation Other adjustments Acquisition- related Restructuring INCOME FROM OPERATIONS 19% 45% OPERATING MARGIN % 14 bp 265 bp INCOME TAX EFFECTS (4) 34% 62% NET INCOME 40% 54% DILUTED EARNINGS PER SHARE 45% 52% DILUTED WEIGHTED- AVERAGE COMMON SHARES OUTSTANDING 0% 0%
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 OpenSpan in April 2016. 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 OpenSpan 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 expense: 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 OpenSpan acquisition. These acquisition-related expenses were primarily professional fees to affect the acquisition. We have also incurred restructuring expenses for one-time employee termination benefits related to the closure of one of our domestic offices, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. 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 Software, Inc., which we acquired in October 2013 ("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 second quarter of 2016, we reduced our estimate of the additional cash consideration payable to the selling shareholders of one of the three companies acquired in 2014 based on the achievement of certain 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 June 30, 2016 is as follows:
(in thousands) Remainder of 2016 $ 6,679 2017 12,359 2018 11,359 2019 5,567 2020 2,672 2021 and thereafter 12,444 ------------- Total intangible assets subject to amortization $ 51,080 =============
(3) Below is a reconciliation of non-GAAP operating expenses:
Three Months Ended June 30, ---------------------------------------------------------- 2016 2016 2015 2015 (in thousands) GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP ----------------- -------- -------- --------- -------- -------- -------- Selling and marketing $ 74,016 $ (4,698) $ 69,318 $ 60,389 $ (3,866) $ 56,523 Amortization of intangible assets 1,877 (1,877) - 1,534 (1,534) - Stock-based compensation 3,041 (3,041) - 2,332 (2,332) - Other adjustments (220) 220 - - - - Research and development $ 35,574 $ (2,828) $ 32,746 $ 31,372 $ (2,265) $ 29,107 Stock-based compensation 2,828 (2,828) - 2,265 (2,265) - General and administrative $ 11,294 $ (1,835) $ 9,459 $ 10,214 $ (2,005) $ 8,209 Amortization of intangible assets 89 (89) - 238 (238) - Stock-based compensation 1,746 (1,746) - 1,767 (1,767) - Acquisition- related $ 1,623 $ (1,623) $ - $ 13 $ (13) $ - Stock-based compensation 352 (352) - - - - Acquisition- related 1,271 (1,271) - - - - Restructuring $ 29 $ (29) $ - $ - $ - $ - TOTAL OPERATING EXPENSES $122,536 $(11,013) $ 111,523 $101,988 $ (8,149) $ 93,839 Six Months Ended June 30, ---------------------------------------------------------- 2016 2016 2015 2015 (in thousands) GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP ----------------- -------- -------- --------- -------- -------- -------- Selling and marketing $135,094 $ (9,114) $ 125,980 $116,124 $ (6,936) $109,188 Amortization of intangible assets 3,407 (3,407) - 3,065 (3,065) - Stock-based compensation 5,927 (5,927) - 3,878 (3,878) - Other adjustments (220) 220 - (7) 7 - Research and development $ 70,494 $ (5,220) $ 65,274 $ 61,216 $ (3,691) $ 57,525 Stock-based compensation 5,220 (5,220) - 4,131 (4,131) - Other adjustments - - - (440) 440 - General and administrative $ 22,342 $ (2,901) $ 19,441 $ 16,559 $ 235 $ 16,794 Amortization of intangible assets 178 (178) - 502 (502) - Stock-based compensation 2,723 (2,723) - 2,671 (2,671) - Other adjustments - - - (3,408) 3,408 - Acquisition- related $ 2,542 $ (2,542) $ - $ 39 $ (39) $ - Stock-based compensation 352 (352) - - - - Acquisition- related 2,190 (2,190) - - - - Restructuring $ 287 $ (287) $ - $ - $ - $ - TOTAL OPERATING EXPENSES $230,759 $(20,064) $ 210,695 $193,938 $(10,431) $183,507
(4) The GAAP income tax effects were calculated using an effective GAAP tax rate of 33.7% and 31% for the second quarter of 2016 and 2015, respectively. The non-GAAP income tax effects were calculated using an effective non-GAAP tax rate of 33.2% and 32.8% for the second quarter of 2016 and 2015, respectively. The GAAP income tax effects were calculated using an effective GAAP tax rate of 33.4% and 34.3% for the first six months of 2016 and 2015, respectively. The non-GAAP income tax effects were calculated using an effective non-GAAP tax rate of 33.1% and 31.9% for the first six months of 2016 and 2015, respectively. The difference between our GAAP and non-GAAP effective tax rates in second quarter of 2016 primarily relates to the impact of unfavorable foreign stock compensation adjustments on our GAAP effective tax rate, partially offset by higher non-GAAP income subjected to tax in higher tax jurisdictions. The difference between our GAAP and non-GAAP effective tax rates in the second quarter of 2015 primarily relates to the impact of non-GAAP income subjected to tax in higher tax rate jurisdictions during the period. The difference between our GAAP and non-GAAP effective tax rates in the first six months of 2016 and 2015 primarily relates to the impact of higher non-GAAP income subjected to tax in lower tax rate jurisdictions.
Pegasystems Inc. Unaudited Condensed Consolidated Balance Sheets (in thousands) As of As of June 30, December 2016 31, 2015 ----------- ----------- Assets: Cash, cash equivalents, and marketable securities $ 137,569 $ 219,078 Trade accounts receivable, net 198,893 211,846 Property and equipment, net 37,736 31,319 Long-term deferred income taxes 52,041 53,350 Goodwill and Intangible assets, net 125,465 80,194 Other assets 51,651 31,971 ----------- ----------- Total assets $ 603,355 $ 627,758 =========== =========== Liabilities and Stockholders' Equity: Accrued expenses, including compensation and related expenses 87,322 98,640 Deferred revenue 157,848 171,678 Other liabilities 33,391 34,581 Stockholders' equity 324,794 322,859 ----------- ----------- Total liabilities and stockholders' equity $ 603,355 $ 627,758 =========== ===========
Pegasystems Inc. Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) Six Months Ended June 30, 2016 2015 ----------- ----------- Operating activities: Net income $ 12,652 $ 9,039 Adjustments to reconcile net income to cash provided by operating activities: Excess tax benefits from equity awards and deferred income taxes (3,460) (3,805) Depreciation, amortization, foreign currency transaction (gain) loss, and other non-cash items 14,569 15,738 Stock-based compensation expense 19,816 14,914 Change in operating assets and liabilities, net (34,278) 3,513 ----------- ----------- Cash provided by operating activities 9,299 39,399 ----------- ----------- Cash used in investing activities (7,930) (18,212) Cash used in financing activities (29,396) (13,234) ----------- ----------- Effect of exchange rates on cash and cash equivalents (738) (1,674) ----------- ----------- Net (decrease) increase in cash and cash equivalents (28,765) 6,279 Cash and cash equivalents, beginning of period 93,026 114,585 ----------- ----------- Cash and cash equivalents, end of period $ 64,261 $ 120,864 =========== ===========
Pegasystems Inc. Historical License and Cloud Backlog (in thousands)
--------------------------------------------------------------------------- 2016 2016 2015 2015 Q2 Q1 Q4 Q3 ----------------------------------- Total deferred license and cloud revenue 51,855 57,790 63,412 55,370 ----------------------------------- Total license and cloud commitments not on the balance sheet 340,777 331,870 356,388 324,340 ----------------------------------- TOTAL LICENSE AND CLOUD BACKLOG $392,632 $389,660 $419,800 $379,710 =================================== --------------------------------------------------------------------------- 2015 2015 2014 2014 Q2 Q1 Q4 Q3 ------------------------------------ Total deferred license and cloud revenue 61,339 79,639 63,048 68,561 ------------------------------------ Total license and cloud commitments not on the balance sheet 330,043 294,412 301,409 265,309 ------------------------------------ TOTAL LICENSE AND CLOUD BACKLOG $391,382 $374,051 $364,457 $333,870 ====================================
Press Contacts:
Lisa Pintchman
Pegasystems Inc.
lisa.pintchman@pega.com
(617) 866-6022
Twitter: @pega
Investor Contact:
Sheila Ennis
ICR for Pegasystems
PegaInvestorRelations@pega.com
617-866-6077