Pegasystems Inc. (NASDAQ:PEGA) Q4 2019 Earnings Conference Call - Final Transcript
Feb 12, 2020 • 05:00 pm ET
Good day, everyone and welcome to the Pegasystems' Fourth Quarter 2019 Earnings Results Conference Call. Today's call is being recorded. At this time, I would like to turn the conference over to Ken Stillwell, CFO. Please go ahead.
Thank you. Good evening, ladies and gentlemen, and welcome to Pegasystems' Q4 2019 earnings call. Before we begin, I'd like to read our safe harbor statement. Certain statements contained in this presentation may be construed forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. The words expect, anticipate, intend, plan, believe, will, could, should, estimate, may, target, strategy, intends to, projects, forecasts, guidance, likely, and usually, or variations of such words and other similar expressions, identify forward-looking statements, which speak only as of the date that this statement was made, and are based on current expectations and assumptions. Because such statements deal with future events, they are subject to various risks and uncertainties.
Actual results for fiscal year 2019 and beyond could differ materially from the company's current expectations. Factors that could cause the company's results to differ materially from those expressed in forward-looking statements are contained in the company's press release announcing its Q4 2019 earnings, and in the company's filing with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2019, and other recent filings with the SEC. Investors are cautioned not to place undue reliance on such forward-looking statements, and there are no assurances that the matters contained in such statements will be achieved. Although some events may cause our view to change, except as required by applicable law, we do not undertake and specifically disclaim any obligation to publicly update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise.
And with that, I will turn the call over to Alan Trefler, Founder and CEO of Pegasystems.
Thank you, Ken. As seen in the earnings release, we delivered a very strong Q4, which ramped up strong results throughout 2019. In 2019, we made significant progress on our key goals, accelerating growth and moving to a recurring model, beginning to see a pay-off on our go-to-market investments, and creating broader and deeper client engagement and positive business results. I am pleased with how we're executing on our strategy to help clients achieve their digital transformation goals. And our optimism is validated by clients and prospects, and it's also reflected in our ACV and backlog growth. This is driven by increasing Pega adoption, with both new and long-standing clients. We're very happy to see that ACV growth in total accelerated in Q4 to 22% year over year. As we said, we believe ACT is the leading measure and most closely reflects our underlying business momentum.
I want to congratulate the entire Pega team for solid execution in 2019, and I am very confident in our ability to execute. We also know there's so much more we can do to capitalize on the