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REVENUE (Tables)
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue by Geographic Area Geographic revenue
(Dollars in thousands)202220212020
U.S.$763,558 57 %$690,133 57 %$613,844 61 %
Other Americas102,980 8 %61,339 5 %49,441 5 %
United Kingdom (“U.K.”)115,793 9 %117,580 10 %91,517 9 %
Europe (excluding U.K.), Middle East, and Africa 194,563 15 %198,080 16 %156,056 15 %
Asia-Pacific140,951 11 %144,521 12 %106,659 10 %
$1,317,845 100 %$1,211,653 100 %$1,017,517 100 %
Schedule of Disaggregation of Revenue
Revenue streams
(in thousands)202220212020
Perpetual license$19,293 $32,172 $28,558 
Subscription license366,063 336,248 266,352 
Revenue recognized at a point in time385,356 368,420 294,910 
Maintenance317,564 320,257 296,709 
Pega Cloud384,271 300,966 208,268 
Consulting230,654 222,010 217,630 
Revenue recognized over time932,489 843,233 722,607 
$1,317,845 $1,211,653 $1,017,517 
(in thousands)202220212020
Pega Cloud$384,271 $300,966 $208,268 
Maintenance317,564 320,257 296,709 
Subscription services701,835 621,223 504,977 
Subscription license366,063 336,248 266,352 
Subscription1,067,898 957,471 771,329 
Perpetual license19,293 32,172 28,558 
Consulting230,654 222,010 217,630 
$1,317,845 $1,211,653 $1,017,517 
Schedule of Remaining Performance Obligations on Existing Contracts
The Company’s typical performance obligations are:
Performance obligation
How stand-alone selling price is typically determined
When performance obligation is typically satisfied
When payment is typically due
Income statement line item
Perpetual licenseResidual approach
Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time)
Effective date of the license
Perpetual license
Term licenseResidual approach
Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time)
Annually, or more frequently, over the term of the license
Subscription 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
Subscription services
Pega CloudResidual approachRatably over the term of the service (over time)Annually, or more frequently, over the term of the service
Subscription services
Consulting
- time and materials
Observable hourly rate for time and materials-based services in similar geographies
Based on hours incurred to date (over time)
Monthly
Consulting
Consulting
- fixed price
Observable hourly rate for time and materials-based services in similar geographies multiplied by estimated hours for the project
Based on hours incurred as a percentage of total estimated hours (over time)
As contract milestones are achieved
Consulting
(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 from existing non-cancellable contracts:
As of December 31, 2022:
(Dollars in thousands)Subscription servicesSubscription licensePerpetual licenseConsultingTotal
MaintenancePega Cloud
1 year or less
$242,073 $379,648 $60,668 $5,310 $32,374 $720,073 53 %
1-2 years
66,207 246,195 3,803 2,253 6,371 324,829 24 %
2-3 years
26,746 143,901 1,707 — 1,647 174,001 13 %
Greater than 3 years
15,602 115,944 5,283 — — 136,829 10 %
$350,628 $885,688 $71,461 $7,563 $40,392 $1,355,732 100 %
As of December 31, 2021:
(Dollars in thousands)Subscription servicesSubscription licensePerpetual licenseConsultingTotal
MaintenancePega Cloud
1 year or less
$234,917 $330,426 $153,467 $10,952 $41,411 $771,173 58 %
1-2 years
65,502 220,231 14,968 4,505 8,917 314,123 23 %
2-3 years
38,432 124,969 1,955 2,252 5,512 173,120 13 %
Greater than 3 years
28,157 55,937 1,765 — 619 86,478 6 %
$367,008 $731,563 $172,155 $17,709 $56,459 $1,344,894 100 %