Cambridge, Massachusetts based cloud customer engagement solutions provider Pegasystems saw its cloud revenue growth increase by 55% to $147 million in September 2020, as compared to $95 million it reported in the same period last year.
The company said that over 90% of their new client commitments in the financial year were either Pega Cloud or Client Cloud, with the remaining being perpetual license arrangements.
Losses for the third quarter stood at $19.3 million as compared to $30.3 million that Pegasystems reported for the same period last year. Revenue was at $225.95 million compared to $216.70 million year-on-year.
“Our subscription revenue grew 27% year over year in the first nine months of 2020, reflecting the impact of passing the midpoint of our cloud transition,” Ken Stillwell, CFO, Pegasystems said in a statement.
Stillwell added that Pegasystems has over $450 million of cash and investments on the balance sheet, plus the addition of strong enterprise clients would put them in a position to capture a bigger share of the $50 billion market for digital transformation solutions today.
The company also reported that annual contract value (ACV) for Pegasystems cloud solutions had increased by 57% to $232 million in Q3 2020, as compared to $148 million in Q3 2019. Its total ACV also jumped from $643 million the year before to $777 million in the current quarter, a jump of 21%.
“Our new business this quarter was particularly strong in our traditional areas of financial services, government, healthcare, insurance and via the industries that Pega really grew up on,” Alan Trefler -- founder, chief executive officer and chairman, Pegasystems, during the Q3 earnings call.
The company currently has 5700 employees globally.