SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2023

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
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
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
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
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, 2023:

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

As of December 31, 2022:

(Dollars in thousands)	Subscription services				Subscription license		Perpetual license		Consulting		Total
	Maintenance		Pega 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	%