Pegasystems Inc. (NASDAQ:PEGA) Q1 2023 Earnings Conference Call April 26, 2023 5:00 PM ET

Company Participants

Kenneth Stillwell - CFO

Alan Trefler - CEO

Conference Call Participants

Kevin Kumar - Goldman Sachs

Steve Enders - Citi

Richard Poland - RBC Capital Markets

Pinjalim Bora - JP Morgan

Steve Koenig - SMBC Nikko

Joe Mearus - Truist

Jake Roberge - William Blair

Vinod Srinivasaraghavan - Barclays

Operator

Greetings, and welcome to the Pegasystems First Quarter 2023 Earnings Results. [Operator Instructions] As a reminder this conference is being recorded.

It is now my pleasure to introduce your host Kenneth Stillwell. Please go ahead.

Kenneth Stillwell

Thank you. Good evening, ladies and gentlemen, and welcome to Pegasystems Q1 2023 earnings call.

Before we begin, I'd like to read our safe harbor statement. Certain statements contained in this presentation may be construed as forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The words expects, anticipates, intends, plans, believes, will, could, should, estimates, may, targets, strategies, projects, forecast, guidance, likely and usually or variations of such words or other similar expressions identify forward-looking statements, which speak only as of the date the statement was made and are based on current expectations and assumptions. Because such statements deal with future events, they are subject to various risks and uncertainties.

Actual results for fiscal year 2023 and beyond could differ materially from the company's current expectations. Factors that could cause the company's results to differ materially from those expressed in the forward-looking statements are contained in the company's press release announcing its Q1 2023 and full year earnings and in the company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2022, and other recent filings with the SEC. 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 our view to change, except as required by applicable law, we do not undertake and specifically disclaim any obligation to publicly update or revise these forward-looking statements, whether as the result of new information, future events or otherwise.

And with that, I will turn the call over to Alan Trefler, Founder and CEO of Pegasystems.

Alan Trefler

Thank you, Ken, and thank you to everyone on today's call. We had a terrific start in 2023. Our team executed our strategy well, leveraging our strengths, and remaining resilient in an environment that we expect will remain uncertain for some time. In Q1, we achieved ACV growth of 15% driven primarily by increasing our footprint in our existing clients, and through strength in Pega Cloud. This is exactly what we said we had tremendous opportunity, and where we should focus our sales and marketing efforts.