Pegasystems (Nasdaq: PEGA) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Pegasystems met expectations on revenues and beat expectations on earnings per share.

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

Gross margins grew, operating margins contracted, and net margins contracted.

Revenue details
Pegasystems recorded revenue of $111.2 million. The six analysts polled by S&P Capital IQ predicted revenue of $112.3 million on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $102.4 million.

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

EPS details
EPS came in at $0.23. The five earnings estimates compiled by S&P Capital IQ forecast $0.15 per share. GAAP EPS of $0.10 for Q1 were 17% lower than the prior-year quarter's $0.12 per share.

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 62.6%, 170 basis points better than the prior-year quarter. Operating margin was 5.3%, 60 basis points worse than the prior-year quarter. Net margin was 3.6%, 100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $114.2 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $498.5 million. The average EPS estimate is $0.91.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 163 members out of 185 rating the stock outperform, and 22 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Pegasystems a green thumbs-up, and eight 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 $37.40.

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