Pegasystems (Nasdaq: PEGA) reported earnings on Feb. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Pegasystems beat expectations on revenue and met expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share dropped.

Margins improved across the board.

Revenue details
Pegasystems logged revenue of $115.3 million. The seven analysts polled by S&P Capital IQ wanted to see net sales of $104.7 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $89.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at -$0.03. The two earnings estimates compiled by S&P Capital IQ anticipated -$0.03 per share on the same basis. GAAP EPS were -$0.04 for Q4 compared to -$0.13 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 63.1%, 350 basis points better than the prior-year quarter. Operating margin was 3.2%, 480 basis points better than the prior-year quarter. Net margin was -1.6%, 370 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $112.0 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $500.0 million. The average EPS estimate is $0.91.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 166 members out of 183 rating the stock outperform, and 17 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Pegasystems a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pegasystems is outperform, with an average price target of $36.33.

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