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Pegasystems Inc. (PEGA) Presents at UBS Global Technology and AI Conference 2025 Transcript
Pegasystems (PEGA) reported earnings 30 days ago. What's next for the stock?
Pegasystems Inc. ( PEGA ) Global Technology, Internet, Media & Telecommunications Conference 2025 November 18, 2025 1:20 PM EST Company Participants Kenneth Stillwell - COO & CFO Conference Call Participants Rishi Jaluria - RBC Capital Markets, Research Division Presentation Rishi Jaluria RBC Capital Markets, Research Division [Audio Gap] I cover software here at RBC. I'm delighted to have with me Ken Stillwell, who is the CFO and COO of Pega.
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Pegasystems delivered a strong Q3, driven by robust growth in its Pega Cloud subscription business and successful model transition. PEGA's revenue grew 17% year-over-year, with Pega Cloud revenue up 28% and impressive gains in annual contract value and backlog. Profitability is improving, with free cash flow growth outpacing revenue, and the company is now well-positioned after its multi-year transition.
Investors need to pay close attention to Pegasystems stock based on the movements in the options market lately.
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On a day that saw a handful of highly impressive earnings reports, tech stock Pegasystems NASDAQ: PEGA more than held its own. Shares blasted up by 15% on Oct. 22 as the market digested the company's latest financials.
Pegasystems soared over 10% after reporting strong Q3 results, which featured a sharp acceleration in revenue to 17% y/y growth. The stock continues to trade at a substantially lower forward revenue multiple than other mid/high teens growth software companies, especially as expectations are pitched to rise. AI deals and agentic AI features are helping the company to build up its long-term backlog, which is growing faster than revenue.
Pegasystems founder and CEO Alan Trefler joins 'Closing Bell Overtime' to discuss the company's Q3 earnings and more.