Pegasystems (Nasdaq: PEGA) reported earnings on Feb. 20. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded.

Margins grew across the board.

Revenue details
Pegasystems booked revenue of $143.8 million. The seven analysts polled by S&P Capital IQ expected net sales of $123.1 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $115.3 million.

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

EPS details
EPS came in at $0.65. The six earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. Non-GAAP EPS of $0.65 for Q4 were 306% higher than the prior-year quarter's $0.16 per share. GAAP EPS were $0.53 for Q4 versus -$0.05 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 73.4%, 1,030 basis points better than the prior-year quarter. Operating margin was 19.3%, 1,610 basis points better than the prior-year quarter. Net margin was 14.2%, 1,580 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $115.3 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $482.2 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 155 members out of 174 rating the stock outperform, and 19 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Pegasystems a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pegasystems is hold, with an average price target of $25.33.

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