Page 1

EX - 99.1 2 q12021_ex991.htm EX - 99.1 ● Digital Transformation Demand Increases Pega Cloud Revenue 56 percent in Q1 2021 ● Total ACV grows 20 percent , powered by Pega Cloud Choice Pega Cloud ACV jumps 55 percent to $ 282 million Total Backlog increases 30 percent year over year CAMBRIDGE , Mass . — April 28 , 2021 Pegasystems Inc. ( NASDAQ : PEGA ) , the software company that crushes business complexity , released its financial results for the first quarter of 2021 . ( Dollars in thousands , except per share amounts ) Total revenue Net ( loss ) - GAAP Net income - Non - GAAP " The pandemic clearly reaffirmed that organizations need to accelerate their digital transformation initiatives with low - code solutions . Our clients see this as improving time - to - market , time - to - value , and overall agility , " said Alan Trefler , founder and CEO , Pegasystems . " We expect clients will remain on their accelerated path , and we are well positioned to support those efforts . We're excited to showcase many of our clients ' most recent digital transformation successes next week at PegaWorld . " — " We've reached a point in our cloud transition where subscription revenue growth aligns with total ACV growth , " said Ken Stillwell , COO and CFO , Pegasystems . " Total revenue grew 18 percent year over year and subscription revenue grew by 23 percent . This is a strong indication that our business strategy is working , and our cloud transition is progressing as planned . " Financial and performance metrics ( ¹ ) Diluted ( loss ) per share - GAAP Diluted earnings per share - Non - GAAP ( 1 ) A reconciliation of our Non - GAAP and GAAP measures is at the end of this release . ( Dollars in thousands ) Pega Cloud Maintenance Term license Subscription ( 2 ) Perpetual license Consulting 1 $ $ LA LA LA LA LA 2021 67,858 75,561 $ $ $ $ 2021 313,499 $ ( 6,617 ) $ 22,113 $ ( 0.08 ) $ 0.26 $ Three Months Ended March 31 , Total revenue ( 2 ) Reflects client arrangements subject to renewal ( Pega Cloud , maintenance , and term license ) . EXHIBIT 99.1 Three Months Ended March 31 , 2020 265,591 ( 25,372 ) 4,032 ( 0.32 ) 0.05 22 % $ 43,466 23 % 36 % 81 % 111,509 254,928 5,452 2 % 53,119 17 % $ 313,499 100 % $ 265,591 PEGA 2020 16 % $ 73,695 28 % 90,257 34 % 207,418 78 % 3,659 1 % 54,514 21 % 100 % $ Change Change 24,392 1,866 21,252 18 % 74 % 448 % 75 % 420 % 47,510 1,793 ( 1,395 ) 47,908 56 % 3 % 24 % 23 % 49 % ( 3 ) % 18 %