SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2024

Accounting Policies [Abstract]

Schedule of Performance Obligations

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

Pega Cloud

Residual approach

Ratably over the term of the service (over time)

Annually, or more frequently, over the term of the service

Subscription services

Term license

Residual 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

Perpetual license

Residual 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

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, 2024:


(Dollars in thousands)	Subscription services				Subscription license		Perpetual license		Consulting		Total
	Pega Cloud		Maintenance
1 year or less	$	525,133	$	230,866	$	88,880	$	317	$	50,519	$	895,715	56	%
1-2 years	328,234		65,461		10,874		—		3,297		407,866		25	%
2-3 years	159,536		24,598		733		—		125		184,992		11	%
Greater than 3 years	114,256		19,935		678		—		50		134,919		8	%
	$	1,127,159	$	340,860	$	101,165	$	317	$	53,991	$	1,623,492	100	%

As of December 31, 2023:


(Dollars in thousands)	Subscription services				Subscription license		Perpetual license		Consulting		Total
	Pega Cloud		Maintenance
1 year or less	$	446,160	$	245,271	$	62,070	$	2,284	$	39,810	$	795,595	54	%
1-2 years	279,474		67,720		9,138		443		2,020		358,795		25	%
2-3 years	144,453		37,142		9,789		—		2,896		194,280		13	%
Greater than 3 years	90,177		24,421		100		—		—		114,698		8	%
	$	960,264	$	374,554	$	81,097	$	2,727	$	44,726	$	1,463,368	100	%