REVENUE

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

REVENUE

NOTE 11. REVENUE

Geographic revenue

	Three Months Ended September 30,								Nine Months Ended September 30,
(Dollars in thousands)	2023				2022				2023				2022
U.S.	$	154,741	47	%	$	148,200	55	%	$	489,645	51	%	$	513,197	56	%
Other Americas	23,497		7	%	18,546		7	%	58,013		6	%	80,558		9	%
United Kingdom (“U.K.”)	41,622		12	%	24,074		9	%	112,751		12	%	83,837		9	%
Europe (excluding U.K.), Middle East, and Africa	67,880		20	%	46,212		17	%	173,551		18	%	140,586		15	%
Asia-Pacific	46,903		14	%	33,699		12	%	124,423		13	%	103,197		11	%
	$	334,643	100	%	$	270,731	100	%	$	958,383	100	%	$	921,375	100	%

Revenue streams

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Perpetual license	$	2,747	$	9,223	$	4,729	$	18,929
Subscription license	74,342		31,112		200,066		210,245
Revenue recognized at a point in time	77,089		40,335		204,795		229,174
Maintenance	83,538		77,526		245,210		235,568
Pega Cloud	118,040		97,359		340,982		281,182
Consulting	55,976		55,511		167,396		175,451
Revenue recognized over time	257,554		230,396		753,588		692,201
Total revenue	$	334,643	$	270,731	$	958,383	$	921,375

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Pega Cloud	$	118,040	$	97,359	$	340,982	$	281,182
Maintenance	83,538		77,526		245,210		235,568
Subscription services	201,578		174,885		586,192		516,750
Subscription license	74,342		31,112		200,066		210,245
Subscription	275,920		205,997		786,258		726,995
Consulting	55,976		55,511		167,396		175,451
Perpetual license	2,747		9,223		4,729		18,929
	$	334,643	$	270,731	$	958,383	$	921,375

Remaining performance obligations ("Backlog")

Expected future revenue from existing non-cancellable contracts:

As of September 30, 2023:

(Dollars in thousands)	Subscription services				Subscription license		Perpetual license		Consulting		Total
	Maintenance		Pega Cloud
1 year or less	$	202,610	$	391,324	$	48,427	$	4,567	$	39,335	$	686,263	54	%
1-2 years	58,610		239,787		4,356		2,696		3,662		309,111		24	%
2-3 years	28,585		121,778		8,518		—		1,100		159,981		13	%
Greater than 3 years	17,478		89,870		2,664		—		—		110,012		9	%
	$	307,283	$	842,759	$	63,965	$	7,263	$	44,097	$	1,265,367	100	%

As of September 30, 2022:

(Dollars in thousands)	Subscription services				Subscription license		Perpetual license		Consulting		Total
	Maintenance		Pega Cloud
1 year or less	$	191,045	$	328,111	$	69,753	$	814	$	27,968	$	617,691	53	%
1-2 years	55,141		213,304		4,113		4,505		6,699		283,762		25	%
2-3 years	24,496		115,416		1,420		2,252		1,648		145,232		13	%
Greater than 3 years	16,198		82,807		1,734		—		508		101,247		9	%
	$	286,880	$	739,638	$	77,020	$	7,571	$	36,823	$	1,147,932	100	%