
<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated balance sheet of Pegasystems Inc. as of September 30, 1996 and the
related consolidated statement of income for the nine month period ended
September 30, 1996 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               SEP-30-1996
<CASH>                                          25,419
<SECURITIES>                                         0
<RECEIVABLES>                                   30,733
<ALLOWANCES>                                       839
<INVENTORY>                                          0
<CURRENT-ASSETS>                                39,122
<PP&E>                                           2,451
<DEPRECIATION>                                     788
<TOTAL-ASSETS>                                  59,728
<CURRENT-LIABILITIES>                            4,601
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           264
<OTHER-SE>                                      47,872
<TOTAL-LIABILITY-AND-EQUITY>                    59,728
<SALES>                                         20,956
<TOTAL-REVENUES>                                20,956
<CGS>                                            5,360
<TOTAL-COSTS>                                   16,442
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                  85
<INCOME-PRETAX>                                  5,852
<INCOME-TAX>                                     2,285
<INCOME-CONTINUING>                              3,567
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     3,567
<EPS-PRIMARY>                                      .14
<EPS-DILUTED>                                      .14
        

</TABLE>
