Pegasystems Inc (PEGA)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	99,189	67,808	-345,582	-63,040	-61,373
Revenue	US$ in thousands	1,497,180	1,432,620	1,317,840	1,211,650	1,017,520
Net profit margin		6.63%	4.73%	-26.22%	-5.20%	-6.03%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $99,189K ÷ $1,497,180K
= 6.63%

The net profit margin of Pegasystems Inc. has exhibited notable fluctuations over the specified period from December 31, 2020, to December 31, 2024. In 2020, the company's net profit margin was unfavorable at -6.03%, indicating that it incurred net losses relative to its revenues. This negative margin slightly improved in 2021, reaching -5.20%, suggesting a marginal reduction in the scale of losses; however, profitability still remained elusive.

During 2022, the net profit margin experienced a significant decline, plunging to -26.22%. This deterioration signifies that the company faced substantially increased losses relative to its revenue, potentially attributable to operational challenges, increased costs, or other financial headwinds encountered during that year. The negative trend during this period underscores a period of profitability hardship.

However, starting in 2023, a notable turnaround is observed. The net profit margin shifted into positive territory at 4.73%, reflecting that Pegasystems achieved profitability during this fiscal year. This suggests that the company was able to substantially improve its operational efficiency or revenue generation capabilities, mitigating previous losses. The positive margin continued into 2024, increasing further to 6.63%, indicating ongoing profitability and a potential stabilization or growth in profit levels.

Overall, the trend demonstrates a period of initial losses, a significant deterioration in 2022, followed by a recovery and consistent profit generation in the subsequent years. The improvement from negative to positive margins highlights a pivotal shift in the company's financial health, with the latest data pointing toward sustainable profitability.