Enterprise workflow software provider Pegasystems (NASDAQ:PEGA) will be reporting earnings tomorrow after market close. Here’s what investors should know.

Pegasystems missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $325.1 million, down 2.9% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and a slight miss of analysts’ billings estimates.

Is Pegasystems a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Pegasystems’s revenue to be flat year on year at $469.9 million, slowing from the 19.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.47 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Pegasystems has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Pegasystems’s peers in the productivity software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Microsoft delivered year-on-year revenue growth of 12.3%, beating analysts’ expectations by 1.1%, and ServiceNow reported revenues up 21.3%, in line with consensus estimates. Microsoft traded down 6.1% following the results while ServiceNow was also down 11.4%.

Read our full analysis of Microsoft’s results here and ServiceNow’s results here.

There has been positive sentiment among investors in the productivity software segment, with share prices up 11.4% on average over the last month. Pegasystems is up 12.6% during the same time and is heading into earnings with an average analyst price target of $101.48 (compared to the current share price of $104.51).

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