false000101385700010138572024-10-232024-10-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
_________________________________
 FORM 8-K
_________________________________
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 23, 2024
____________________
PEGASYSTEMS INC.
(Exact name of Registrant as specified in its charter)
_________________________________
Massachusetts
1-11859
04-2787865
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
One Main Street, Cambridge, MA 02142
(Address of principal executive offices, including zip code)

(617) 374-9600
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, $.01 par value per sharePEGANASDAQ Global Select Market
Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).                         
                                                Emerging growth company ☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


ITEM 2.02    RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On October 23, 2024, Pegasystems Inc. issued a press release announcing its financial results for the third quarter of 2024. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in its entirety.
The information in this Item 2.02 and the Exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
ITEM 9.01    FINANCIAL STATEMENTS AND EXHIBITS
Exhibit No.Description
99.1
104
Cover Page Interactive Data File (formatted as Inline XBRL)



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Pegasystems Inc.
Dated:October 23, 2024By:/s/ KENNETH STILLWELL
Kenneth Stillwell
Chief Operating Officer and Chief Financial Officer
(Principal Financial Officer)


EXHIBIT 99.1
q42019pegalogo.jpg
Pega Cloud Growth Highlights Strong Q3 2024
•Annual Contract Value (ACV) grows 16% year over year (14% in constant currency)
•Pega Cloud ACV grows 30% year over year (26% in constant currency)
•Cash flow from operations reaches $251 million and free cash flow hits $246 million in the first nine months of 2024
CAMBRIDGE, Mass. — October 23, 2024 — Pegasystems Inc. (NASDAQ: PEGA), the leading enterprise AI decisioning and workflow automation platform provider, released its financial results for the third quarter of 2024.
“Pega GenAI Blueprint is creating enormous excitement and fundamentally changing how we engage with our clients,“ said Alan Trefler, founder and CEO. "Pega's distinctive AI approach is showing clients how they can accelerate their digital transformation to become true autonomous enterprises."
"It's awesome to see accelerating ACV growth and continued strong free cash flow,” said Ken Stillwell, COO and CFO. “The steep acceleration in Pega Cloud growth demonstrates our clients’ commitment to digitally transform.”
Financial and performance metrics (1)
chart-0ed28cb910164477bd8.jpg
Reconciliation of ACV and Constant Currency ACV
(in millions, except percentages)September 30, 2023September 30, 2024
1-Year Change
ACV$1,169 $1,360 16 %
Impact of changes in foreign exchange rates— (28)
Constant currency ACV
$1,169 $1,332 14 %
Note: Constant currency ACV is calculated by applying the September 30, 2023 foreign exchange rates to all periods shown.
1 Refer to the schedules at the end of this release for additional information, including a reconciliation of GAAP and non-GAAP measures.
1
EXHIBIT 99.1
(continued)
Cash Flow Growth
chart-bee9c7fa5f36482f930.jpgchart-7ea35a12f6534af38f3.jpg
(Dollars in thousands,
except per share amounts)
Three Months Ended
September 30,		Nine Months Ended
September 30,
20242023Change20242023Change
Total revenue$325,050 $334,643 (3)%$1,006,350 $958,383 5 %
Net (loss) - GAAP$(14,390)$(7,279)(98)%$(19,901)$(74,857)73 %
Net income - non-GAAP$34,594 $37,595 (8)%$122,589 $58,018 111 %
Diluted (loss) per share - GAAP$(0.17)$(0.09)(89)%$(0.23)$(0.90)74 %
Diluted earnings per share - non-GAAP$0.39 $0.44 (11)%$1.38 $0.69 100 %
(Dollars in thousands)Three Months Ended
September 30,		ChangeNine Months Ended
September 30,		Change
2024202320242023
Pega Cloud$144,108 44 %$118,040 35 %$26,068 22 %$409,096 41 %$340,982 36 %$68,114 20 %
Maintenance80,702 25 %83,538 25 %(2,836)(3)%242,047 24 %245,210 25 %(3,163)(1)%
Subscription services224,810 69 %201,578 60 %23,232 12 %651,143 65 %586,192 61 %64,951 11 %
Subscription license45,420 14 %74,342 22 %(28,922)(39)%193,405 19 %200,066 21 %(6,661)(3)%
Subscription270,230 83 %275,920 82 %(5,690)(2)%844,548 84 %786,258 82 %58,290 7 %
Consulting54,364 17 %55,976 17 %(1,612)(3)%160,451 16 %167,396 18 %(6,945)(4)%
Perpetual license456 — %2,747 1 %(2,291)(83)%1,351 — %4,729 — %(3,378)(71)%
$325,050 100 %$334,643 100 %$(9,593)(3)%$1,006,350 100 %$958,383 100 %$47,967 5 %
Quarterly conference call
A conference call and audio-only webcast will be conducted at 8:00 a.m. EDT on Thursday, October 24, 2024.
Members of the public and investors are invited to join the call and participate in the question and answer session by dialing 1 (800) 715-9871 (domestic) or 1 (646) 307-1963 (international) and using Conference ID 2282955, or via https://events.q4inc.com/attendee/813806779 by logging onto www.pega.com at least five minutes prior to the event's broadcast and clicking on the webcast icon in the Investors section.
2

Discussion of non-GAAP financial measures
Our non-GAAP financial measures should only be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. We believe that these measures help investors understand our core operating results and prospects, which is consistent with how management measures and forecasts our performance without the effect of often one-time charges and other items outside our normal operations. Management uses these measures to assess the performance of the company's operations and establish operational goals and incentives. They are not a substitute for financial measures prepared under U.S. GAAP. Refer to the schedules at the end of this release for additional information, including a reconciliation of GAAP and non-GAAP measures.
Forward-looking statements
Certain statements in this press release may be "forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995.
Words such as expects, anticipates, intends, plans, believes, will, could, should, estimates, may, targets, strategies, intends to, projects, forecasts, guidance, likely, and usually or variations of such words and other similar expressions identify forward-looking statements. These statements represent our views only as of the date the statement was made and are based on current expectations and assumptions.
Forward-looking statements deal with future events and are subject to risks and uncertainties that are difficult to predict, including, but not limited to:
•our future financial performance and business plans;
•the adequacy of our liquidity and capital resources;
•the continued payment of our quarterly dividends;
•the timing of revenue recognition;
•variation in demand for our products and services, including among clients in the public sector;
•reliance on key personnel;
•reliance on third-party service providers, including hosting providers;
•compliance with our debt obligations and covenants;
•the potential impact of our convertible senior notes and Capped Call Transactions;
•foreign currency exchange rates;
•potential legal and financial liabilities, as well as damage to our reputation, due to cyber-attacks;
•security breaches and security flaws;
•our ability to protect our intellectual property rights, costs associated with defending such rights, intellectual property rights claims, and other related claims by third parties against us, including related costs, damages, and other relief that may be granted against us;
•our ongoing litigation with Appian Corp.;
•our client retention rate; and
•management of our growth.
These risks and others that may cause actual results to differ materially from those expressed in such forward-looking statements are described further in Part I of our Annual Report on Form 10-K for the year ended December 31, 2023, and other filings we make with the U.S. Securities and Exchange Commission (“SEC”).
Investors are cautioned not to place undue reliance on such forward-looking statements, and there are no assurances that the results included in such statements will be achieved. Although subsequent events may cause our view to change, except as required by applicable law, we do not undertake and expressly disclaim any obligation to publicly update or revise these forward-looking statements, whether as the result of new information, future events, or otherwise.
Any forward-looking statements in this press release represent our views as of October 23, 2024.
3

About Pegasystems
Pega provides a powerful platform that empowers the world's leading organizations to unlock business-transforming outcomes with real-time optimization. Clients use our enterprise AI decisioning and workflow automation to solve their most pressing business challenges - from personalizing engagement to automating service to streamlining operations. Since 1983, we've built our scalable and flexible architecture to help enterprises meet today's customer demands while continuously transforming for tomorrow. For more information on how Pega (NASDAQ: PEGA) empowers its clients to Build for Change®, visit www.pega.com.
Press contact:
Lisa Pintchman
VP, Corporate Communications
lisapintchman.rogers@pega.com
617-866-6022
Twitter: @pega
Investor contact:
Peter Welburn
VP, Corporate Development & Investor Relations
PegaInvestorRelations@pega.com
617-498-8968
All trademarks are the property of their respective owners.
4


PEGASYSTEMS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Revenue
Subscription services$224,810 $201,578 $651,143 $586,192 
Subscription license45,420 74,342 193,405 200,066 
Consulting54,364 55,976 160,451 167,396 
Perpetual license456 2,747 1,351 4,729 
Total revenue325,050 334,643 1,006,350 958,383 
Cost of revenue
Subscription services36,868 35,906 108,930 109,553 
Subscription license384 629 1,504 1,971 
Consulting59,451 57,204 177,864 176,262 
Perpetual license3 24 12 51 
Total cost of revenue96,706 93,763 288,310 287,837 
Gross profit228,344 240,880 718,040 670,546 
Operating expenses
Selling and marketing127,669 131,598 395,125 425,253 
Research and development74,157 74,955 221,695 224,262 
General and administrative35,694 27,321 84,641 73,893 
Litigation settlement, net of recoveries— — 32,403 — 
Restructuring2,485 17,822 3,283 21,450 
Total operating expenses240,005 251,696 737,147 744,858 
(Loss) from operations(11,661)(10,816)(19,107)(74,312)
Foreign currency transaction (loss) gain(4,405)1,994 (7,230)(3,971)
Interest income6,769 2,532 18,835 5,831 
Interest expense(1,639)(1,533)(5,047)(5,229)
(Loss) on capped call transactions(689)(2,294)(667)(449)
Other income, net— 6,383 1,684 18,668 
(Loss) before provision for income taxes(11,625)(3,734)(11,532)(59,462)
Provision for income taxes2,765 3,545 8,369 15,395 
Net (loss)$(14,390)$(7,279)$(19,901)$(74,857)
(Loss) per share
Basic$(0.17)$(0.09)$(0.23)$(0.90)
Diluted$(0.17)$(0.09)$(0.23)$(0.90)
Weighted-average number of common shares outstanding
Basic85,625 83,336 85,018 82,996 
Diluted85,625 83,336 85,018 82,996 
5

PEGASYSTEMS INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, 2024December 31, 2023
Assets
Current assets:
Cash and cash equivalents$287,649 $229,902 
Marketable securities415,341 193,436 
Total cash, cash equivalents, and marketable securities702,990 423,338 
Accounts receivable, net173,623 300,173 
Unbilled receivables, net157,281 237,379 
Other current assets85,186 68,137 
Total current assets1,119,080 1,029,027 
Long-term unbilled receivables, net77,576 85,402 
Goodwill81,568 81,611 
Other long-term assets301,008 314,696 
Total assets$1,579,232 $1,510,736 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$20,103 $11,290 
Accrued expenses41,236 39,941 
Accrued compensation and related expenses98,033 126,640 
Deferred revenue345,574 377,845 
Convertible senior notes, net501,225 — 
Other current liabilities18,372 21,343 
Total current liabilities1,024,543 577,059 
Long-term convertible senior notes, net— 499,368 
Long-term operating lease liabilities66,750 66,901 
Other long-term liabilities14,916 13,570 
Total liabilities1,106,209 1,156,898 
Total stockholders’ equity473,023 353,838 
Total liabilities and stockholders’ equity$1,579,232 $1,510,736 

PEGASYSTEMS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Nine Months Ended
September 30,
20242023
Net (loss)$(19,901)$(74,857)
Adjustments to reconcile net (loss) to cash provided by operating activities
Non-cash items180,036 168,001 
Change in operating assets and liabilities, net90,562 44,776 
Cash provided by operating activities250,697 137,920 
Cash (used in) investing activities(215,999)(24,176)
Cash provided by (used in) financing activities26,949 (85,031)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash4,591 (1,621)
Net increase in cash, cash equivalents, and restricted cash66,238 27,092 
Cash, cash equivalents, and restricted cash, beginning of period232,827 145,054 
Cash, cash equivalents, and restricted cash, end of period$299,065 $172,146 
6

PEGASYSTEMS INC.
RECONCILIATION OF SELECTED GAAP AND NON-GAAP MEASURES
(in thousands, except percentages and per share amounts)
Three Months Ended
September 30,		Nine Months Ended
September 30,
20242023Change20242023Change
Net (loss) - GAAP$(14,390)$(7,279)(98)%$(19,901)$(74,857)73 %
Stock-based compensation (1)
37,213 31,299 108,218 110,083 
Restructuring2,485 17,822 3,283 21,450 
Legal fees9,863 6,748 14,214 11,066 
Litigation settlement, net of recoveries— — 32,403 — 
Amortization of intangible assets700 965 2,453 2,977 
Interest on convertible senior notes621 613 1,857 1,988 
Capped call transactions689 2,294 667 449 
Repurchases of convertible senior notes— — — (7,855)
Foreign currency transaction loss (gain)4,405 (1,994)7,230 3,971 
Other
— (5,814)(1,628)(10,285)
Income taxes (2)
(6,992)(7,059)(26,207)(969)
Net income - non-GAAP$34,594 $37,595 (8)%$122,589 $58,018 111 %
Diluted (loss) per share - GAAP$(0.17)$(0.09)(89)%$(0.23)$(0.90)74 %
non-GAAP adjustments0.56 0.53 1.61 1.59 
Diluted earnings per share - non-GAAP$0.39 $0.44 (11)%$1.38 $0.69 100 %
Diluted weighted-average number of common shares outstanding - GAAP85,625 83,336 3 %85,018 82,996 2 %
Stock-based compensation4,097 1,945 3,512 1,332 
Diluted weighted-average number of common shares outstanding - non-GAAP89,722 85,281 5 %88,530 84,328 5 %
Our non-GAAP financial measures reflect the following adjustments:
•Stock-based compensation: We have excluded stock-based compensation from our non-GAAP operating expenses and profitability measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to our revenues recognized during the periods presented and is expected to contribute to our future revenues, we continue to evaluate our business performance, excluding stock-based compensation.
•Restructuring: We have excluded restructuring from our non-GAAP financial measures. Restructuring fluctuates in amount and frequency and is significantly affected by the timing and size of our restructuring activities. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as these amounts are not representative of our core business operations and ongoing operational performance.
•Legal fees: Legal and related fees arising from proceedings outside the ordinary course of business. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.
•Litigation settlement, net of recoveries: Cost to settle litigation, net of insurance recoveries, arising from proceedings outside the ordinary course of business. See Note 15. Commitments and Contingencies in our Quarterly Report for the three months ended September 30, 2024 for additional information. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.
•Amortization of intangible assets: We have excluded the amortization of intangible assets from our non-GAAP operating expenses and profitability measures. Amortization of intangible assets fluctuates in amount and frequency and is significantly affected by the timing and size of acquisitions. Investors should note that intangible assets contributed to our revenues recognized during the periods presented and are expected to contribute to future revenues. Amortization of intangible assets is likely to recur in future periods. We believe excluding these amounts provides a useful comparison of our operational performance in different periods.
7

•Interest on convertible senior notes: In February 2020, we issued convertible senior notes, due March 1, 2025, in a private placement. We believe that excluding the amortization of issuance costs provides a useful comparison of our operational performance in different periods.
•Capped call transactions: We have excluded gains and losses related to our capped call transactions held at fair value under U.S. GAAP. The capped call transactions are expected to reduce common stock dilution and/or offset any potential cash payments we must make, other than for principal and interest, upon conversion of the convertible senior notes. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.
•Repurchases of convertible senior notes: We have excluded gains from the repurchases of Convertible Senior Notes. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.
•Foreign currency transaction loss (gain): We have excluded foreign currency transaction gains and losses from our non-GAAP profitability measures. Foreign currency transaction gains and losses fluctuate in amount and frequency and are significantly affected by foreign exchange market rates. Foreign currency transaction gains and losses are likely to recur in future periods. We believe excluding these amounts provides a useful comparison of our operational performance in different periods.
•Other: We have excluded gains and losses from our venture investments and expenses incurred due to the cancellation of in-person sales and marketing events. We believe excluding these amounts from our non-GAAP financial measures is useful to investors as the types of events giving rise to them are not representative of our core business operations and ongoing operational performance.
•Diluted weighted-average number of common shares outstanding:
•Stock-based compensation: In periods of non-GAAP income, we have included the dilutive impact of stock-based compensation in our non-GAAP weighted-average shares. In periods of GAAP loss, these shares would have been excluded from our GAAP results as they would be anti-dilutive for GAAP. We believe including the dilutive effect of stock-based compensation in our non-GAAP financial measures in periods of income is helpful to investors as this provides a useful comparison of our operational performance in different periods.
(1) Stock-based compensation:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Cost of revenue$6,894 $6,410 $20,558 $22,497 
Selling and marketing14,169 10,401 41,621 43,410 
Research and development7,308 7,375 22,779 24,286 
General and administrative8,842 7,113 23,260 19,890 
$37,213 $31,299 $108,218 $110,083 
Income tax benefit$(512)$(316)$(1,377)$(1,569)
(2) Effective income tax rates:
Nine Months Ended
September 30,
20242023
GAAP(73)%(26)%
non-GAAP22 %22 %
Our GAAP effective income tax rate is subject to significant fluctuations due to several factors, including our stock-based compensation plans, research and development tax credits, gains and losses on our capped call transactions, and the valuation allowance on our deferred tax assets in the U.S. and U.K. We determine our non-GAAP income tax rate using applicable rates in taxing jurisdictions and assessing certain factors, including historical and forecasted earnings by jurisdiction, discrete items, and ability to realize tax assets. We believe it is beneficial for our management to review our non-GAAP results consistent with our annual plan's effective income tax rate as established at the beginning of each year, given tax rate volatility. See Note 13. Income Taxes in our Quarterly Report for the three months ended September 30, 2024 for additional information.
8

PEGASYSTEMS INC.
RECONCILIATION OF FREE CASH FLOW (1) AND OTHER METRICS
(in thousands, except percentages)

Nine Months Ended
September 30,
Change
20242023
Cash provided by operating activities$250,697 $137,920 82 %
Investment in property and equipment(4,921)(14,271)
Free cash flow (1)
$245,776 $123,649 99 %
Supplemental information (2)
Litigation settlement, net of recoveries$32,403 $— 
Legal fees
9,232 5,867 
Restructuring4,214 21,576 
Interest on convertible senior notes3,767 4,134 
Income taxes
32,246 7,913 
$81,862 $39,490 
(1) Our non-GAAP free cash flow is defined as cash provided by operating activities less investment in property and equipment. Investment in property and equipment fluctuates in amount and frequency and is significantly affected by the timing and size of investments in our facilities. We provide information on free cash flow to enable investors to assess our ability to generate cash without incurring additional external financings. This information is not a substitute for financial measures prepared under U.S. GAAP.
(2) The supplemental information discloses items that affect our cash flows and are considered by management not to be representative of our core business operations and ongoing operational performance.
•Litigation settlement, net of recoveries: Cost to settle litigation, net of insurance recoveries, arising from proceedings outside the ordinary course of business. See Note 15. Commitments and Contingencies in our Quarterly Report for the three months ended September 30, 2024 for additional information.
•Legal fees: Legal and related fees arising from proceedings outside the ordinary course of business.
•Restructuring: Restructuring fluctuates in amount and frequency and is significantly affected by the timing and size of our restructuring activities.
•Interest on convertible senior notes: In February 2020, we issued convertible senior notes, due March 1, 2025, in a private placement. The convertible senior notes accrue interest at an annual rate of 0.75%, payable semi-annually in arrears on March 1 and September 1.
•Income taxes: Direct income taxes paid net of refunds received.
PEGASYSTEMS INC.
ANNUAL CONTRACT VALUE
(in thousands, except percentages)

Annual contract value (“ACV”) - ACV represents the annualized value of our active contracts as of the measurement date. The contract's total value is divided by its duration in years to calculate ACV. ACV is a performance measure that we believe provides useful information to our management and investors.
September 30, 2024September 30, 2023Change
Constant Currency Change
Pega Cloud$640,574 $494,571 $146,003 30 %26 %
Maintenance
306,753 319,250 (12,497)(4)%(6)%
Subscription services
947,327 813,821 133,506 16 %14 %
Subscription license
412,678 355,055 57,623 16 %15 %
$1,360,005 $1,168,876 $191,129 16 %14 %
9

PEGASYSTEMS INC.
BACKLOG
(in thousands, except percentages)

Remaining performance obligations (“Backlog”) - Expected future revenue from existing non-cancellable contracts:
As of September 30, 2024:
Subscription servicesSubscription licensePerpetual licenseConsultingTotal
Pega CloudMaintenance
1 year or less
$495,637 $188,905 $38,175 $2,252 $54,203 $779,172 53 %
1-2 years
310,020 63,701 9,686 317 3,062 386,786 26 %
2-3 years
146,877 26,436 3,046 — 2,008 178,367 12 %
Greater than 3 years
112,002 18,854 102 — — 130,958 9 %
$1,064,536 $297,896 $51,009 $2,569 $59,273 $1,475,283 100 %
% of Total73 %20 %3 %— %4 %100 %
Change since September 30, 2023
$221,777 $(9,387)$(12,956)$(4,694)$15,176 $209,916 
26 %(3)%(20)%(65)%34 %17 %
As of September 30, 2023:
Subscription servicesSubscription licensePerpetual licenseConsultingTotal
Pega CloudMaintenance
1 year or less
$391,324 $202,610 $48,427 $4,567 $39,335 $686,263 54 %
1-2 years
239,787 58,610 4,356 2,696 3,662 309,111 24 %
2-3 years
121,778 28,585 8,518 — 1,100 159,981 13 %
Greater than 3 years
89,870 17,478 2,664 — — 110,012 9 %
$842,759 $307,283 $63,965 $7,263 $44,097 $1,265,367 100 %
% of Total67 %24 %5 %1 %3 %100 %

PEGASYSTEMS INC.
RECONCILIATION OF GAAP BACKLOG AND CONSTANT CURRENCY BACKLOG
(in millions, except percentages)
September 30, 2023September 30, 20241 Year Growth Rate
Backlog - GAAP$1,265 $1,475 17 %
Impact of changes in foreign exchange rates— (43)
Constant currency backlog
$1,265 $1,432 13 %
Note: Constant currency Backlog is calculated by applying the September 30, 2023 foreign exchange rates to all periods shown.
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v3.24.3
COVER PAGE
Oct. 23, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 23, 2024
Entity Registrant Name PEGASYSTEMS INC.
Entity Incorporation, State or Country Code MA
Entity File Number 1-11859
Entity Tax Identification Number 04-2787865
Entity Address, Address Line One One Main Street
Entity Address, City or Town Cambridge
Entity Address, State or Province MA
Entity Address, Postal Zip Code 02142
City Area Code 617
Local Phone Number 374-9600
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $.01 par value per share
Trading Symbol PEGA
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001013857
Pegasystems (NASDAQ:PEGA)
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