XML 65 R40.htm IDEA: XBRL DOCUMENT
v3.20.4

REVENUE (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2020
Revenue from Contract with Customer [Abstract] |
Revenue by Geographic Area | Geographic revenue
(Dollars in thousands) | 2020 |  | 2019 |  | 2018
U.S. | $ | 613,844 |  | 61 | % |  | $ | 525,191 |  | 57 | % |  | $ | 469,987 |  | 52 | %
Other Americas | 49,441 |  | 5 | % |  | 60,536 |  | 7 | % |  | 53,239 |  | 6 | %
United Kingdom (“U.K.”) | 91,517 |  | 9 | % |  | 87,382 |  | 10 | % |  | 95,628 |  | 11 | %
Europe (excluding U.K.), Middle East, and Africa | 156,056 |  | 15 | % |  | 137,946 |  | 15 | % |  | 147,248 |  | 17 | %
Asia-Pacific | 106,659 |  | 10 | % |  | 100,328 |  | 11 | % |  | 125,479 |  | 14 | %
| $ | 1,017,517 |  | 100 | % |  | $ | 911,383 |  | 100 | % |  | $ | 891,581 |  | 100 | %
Disaggregation of Revenue |
(in thousands) | 2020 |  | 2019 |  | 2018
Perpetual license | $ | 28,558 |  |  | $ | 80,015 |  |  | $ | 109,863 |
Term license | 266,352 |  |  | 199,433 |  |  | 178,256 |
Revenue recognized at a point in time | 294,910 |  |  | 279,448 |  |  | 288,119 |
Maintenance | 296,709 |  |  | 280,580 |  |  | 263,875 |
Pega Cloud | 208,268 |  |  | 133,746 |  |  | 82,627 |
Consulting | 217,630 |  |  | 217,609 |  |  | 256,960 |
Revenue recognized over time | 722,607 |  |  | 631,935 |  |  | 603,462 |
| $ | 1,017,517 |  |  | $ | 911,383 |  |  | $ | 891,581 |
(in thousands) | 2020 |  | 2019 |  | 2018
Pega Cloud | 208,268 |  |  | 133,746 |  |  | 82,627 |
Maintenance | 296,709 |  |  | 280,580 |  |  | 263,875 |
Term license | $ | 266,352 |  |  | $ | 199,433 |  |  | $ | 178,256 |
Subscription (1) | 771,329 |  |  | 613,759 |  |  | 524,758 |
Perpetual license | 28,558 |  |  | 80,015 |  |  | 109,863 |
Consulting | 217,630 |  |  | 217,609 |  |  | 256,960 |
Total revenue | $ | 1,017,517 |  |  | $ | 911,383 |  |  | $ | 891,581 |
(1) Reflects client arrangements subject to renewal (Pega Cloud, maintenance, and term license).
Remaining Performance Obligations on Existing Contracts | The Company’s typical performance obligations are:
Performance Obligation |  | How Standalone Selling Price is Typically Determined |  | When Performance Obligation is Typically Satisfied |  | When Payment is Typically Due
Perpetual license |  | Residual approach |  | Upon transfer of control to the client, defined when the client can use and benefit from the license (point in time) |  | Effective date of the license
Term license |  | Residual approach |  | Upon transfer of control to the client, defined when the client can use and benefit from the license (point in time) |  | Annually, or more frequently, over the term of the license
Maintenance |  | Consistent pricing relationship as a percentage of the related license and observable in stand-alone renewal transactions (1) |  | Ratably over the term of the maintenance (over time) |  | Annually, or more frequently, over the term of the maintenance
Pega Cloud |  | Residual approach |  | Ratably over the term of the service (over time) |  | Annually, or more frequently, over the term of the service
Consulting - time and materials |  | Observable hourly rate for time and materials-based services in similar geographies for similar contract sizes |  | Based on hours incurred to date |  | Monthly
Consulting - fixed price |  | Observable hourly rate for time and materials-based services in similar geographies for similar contract sizes multiplied by estimated hours for the project |  | Based on hours incurred as a percentage of total estimated hours |  | As contract milestones are achieved
(1) Technical support and software updates are considered distinct services but accounted for as a single performance obligation, as they have the same pattern of transfer to the client. Expected future revenue on existing contracts:
| December 31, 2020
(Dollars in thousands) | Perpetual license |  | Term license |  | Maintenance |  | Pega Cloud |  | Consulting |  | Total
1 year or less | $ | 11,514 |  |  | $ | 105,920 |  |  | $ | 227,803 |  |  | $ | 248,223 |  |  | $ | 19,226 |  |  | $ | 612,686 |  | 57 | %
1-2 years | 395 |  |  | 7,962 |  |  | 54,509 |  |  | 193,064 |  |  | 346 |  |  | 256,276 |  | 24 | %
2-3 years | — |  |  | 4,928 |  |  | 28,320 |  |  | 104,542 |  |  | 851 |  |  | 138,641 |  | 13 | %
Greater than 3 years | — |  |  | 4 |  |  | 19,283 |  |  | 44,308 |  |  | 1,189 |  |  | 64,784 |  | 6 | %
| $ | 11,909 |  |  | $ | 118,814 |  |  | $ | 329,915 |  |  | $ | 590,137 |  |  | $ | 21,612 |  |  | $ | 1,072,387 |  | 100 | %
| December 31, 2019
(Dollars in thousands) | Perpetual license |  | Term license |  | Maintenance |  | Pega Cloud |  | Consulting |  | Total
1 year or less | $ | 2,305 |  |  | $ | 97,826 |  |  | $ | 206,882 |  |  | $ | 165,571 |  |  | $ | 20,798 |  |  | $ | 493,382 |  | 58 | %
1-2 years | 2,179 |  |  | 12,014 |  |  | 30,291 |  |  | 128,109 |  |  | 1,439 |  |  | 174,032 |  | 21 | %
2-3 years | — |  |  | 3,132 |  |  | 17,844 |  |  | 84,788 |  |  | 132 |  |  | 105,896 |  | 13 | %
Greater than 3 years | — |  |  | 3,861 |  |  | 13,277 |  |  | 43,702 |  |  | 1,993 |  |  | 62,833 |  | 8 | %
| $ | 4,484 |  |  | $ | 116,833 |  |  | $ | 268,294 |  |  | $ | 422,170 |  |  | $ | 24,362 |  |  | $ | 836,143 |  | 100 | %

X
- Definition Tabular disclosure of disaggregation of revenue into categories depicting how nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factor. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045 + Details
Name: | us-gaap_DisaggregationOfRevenueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of revenue from external customers by geographic areas attributed to the entity's country of domicile and to foreign countries from which the entity derives revenue. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -Subparagraph a -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 + Details
Name: | us-gaap_RevenueFromExternalCustomersByGeographicAreasTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of expected timing for satisfying remaining performance obligation. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(1) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 + Details
Name: | us-gaap_RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration