XML 64 R46.htm IDEA: XBRL DOCUMENT v3.24.0.1
REVENUE (Tables)
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Geographic Revenue
Geographic revenue
(Dollars in thousands)
202320222021
U.S.$785,029 55 %$763,558 57 %$690,133 57 %
Other Americas85,149 6 %102,980 8 %61,339 5 %
United Kingdom (“U.K.”)158,014 11 %115,793 9 %117,580 10 %
Europe (excluding U.K.), Middle East, and Africa 242,303 17 %194,563 15 %198,080 16 %
Asia-Pacific162,121 11 %140,951 11 %144,521 12 %
$1,432,616 100 %$1,317,845 100 %$1,211,653 100 %
Schedule of Revenue Streams
Revenue streams
(in thousands)
202320222021
Subscription license$407,625 $366,063 $336,248 
Perpetual license10,101 19,293 32,172 
Revenue recognized at a point in time417,726 385,356 368,420 
Pega Cloud461,328 384,271 300,966 
Maintenance331,856 317,564 320,257 
Consulting221,706 230,654 222,010 
Revenue recognized over time1,014,890 932,489 843,233 
$1,432,616 $1,317,845 $1,211,653 
(in thousands)202320222021
Pega Cloud$461,328 $384,271 $300,966 
Maintenance331,856 317,564 320,257 
Subscription services793,184 701,835 621,223 
Subscription license407,625 366,063 336,248 
Subscription1,200,809 1,067,898 957,471 
Consulting221,706 230,654 222,010 
Perpetual license10,101 19,293 32,172 
$1,432,616 $1,317,845 $1,211,653 
Schedule of Remaining 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 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, 2023:
(Dollars in thousands)Subscription servicesSubscription licensePerpetual licenseConsultingTotal
MaintenancePega 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 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 %