Pegasystems Inc (PEGA)

Gross profit margin

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Gross profit (ttm)	US$ in thousands	1,243,867	1,106,173	1,100,943	1,113,479	1,061,742	1,053,791	974,743	911,544	888,638	949,210	876,034	870,399	932,348	875,290	865,974	842,080	751,593	706,604	683,834	671,487
Revenue (ttm)	US$ in thousands	1,642,666	1,497,180	1,480,583	1,490,176	1,437,291	1,432,616	1,354,853	1,290,941	1,267,010	1,317,845	1,237,559	1,223,096	1,274,461	1,211,653	1,194,069	1,163,752	1,065,425	1,017,517	995,459	986,211
Gross profit margin		75.72%	73.88%	74.36%	74.72%	73.87%	73.56%	71.94%	70.61%	70.14%	72.03%	70.79%	71.16%	73.16%	72.24%	72.52%	72.36%	70.54%	69.44%	68.70%	68.09%

March 31, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,243,867K ÷ $1,642,666K
= 75.72%

The gross profit margin of Pegasystems Inc. demonstrates a generally positive trend over the analyzed period, indicating consistent improvement in the company's ability to generate profit from its revenues after accounting for cost of goods sold. Starting at 68.09% as of June 30, 2020, the margin exhibits a gradual upward trajectory with some fluctuations. Notably, it increases steadily over the subsequent periods, reaching 73.87% by March 31, 2024. This signifies enhanced profitability at the gross level, potentially reflecting better cost management, favorable product mix, or pricing strategies.

From the second quarter of 2020 to the first quarter of 2024, the margin increases by approximately 5.78 percentage points, illustrating a sustained improvement over four years. After a slight decline to 73.88% at the end of 2024, the gross profit margin resumes its upward movement, reaching 75.72% by March 31, 2025, which could suggest ongoing efforts to optimize gross margins or improving efficiency in operations.

Overall, the analyzed data indicates a pattern of consistent growth in gross profit margin, implying strengthening profitability at the gross level for Pegasystems Inc. within this period. The firm appears to have successfully enhanced its ability to retain a larger portion of revenue as gross profit, which may contribute positively to overall financial health and operational efficiency.