Pegasystems (PEGA) 10-Q24 Jul 242024 Q2 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Jul. 17, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	1-11859
Entity Registrant Name	PEGASYSTEMS INC.
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	04-2787865
Entity Address, Address Line One	One Main Street
Entity Address, City or Town	Cambridge
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02142
City Area Code	617
Local Phone Number	374-9600
Title of 12(b) Security	Common Stock, $.01 par value per share
Trading Symbol	PEGA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		85,409,645
Amendment Flag	false
Entity Central Index Key	0001013857
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 258,257	$ 229,902
Marketable securities	406,819	193,436
Total cash, cash equivalents, and marketable securities	665,076	423,338
Accounts receivable, net	165,723	300,173
Unbilled receivables, net	164,533	237,379
Other current assets	76,323	68,137
Total current assets	1,071,655	1,029,027
Long-term unbilled receivables, net	81,218	85,402
Goodwill	81,410	81,611
Other long-term assets	302,249	314,696
Total assets	1,536,532	1,510,736
Current liabilities:
Accounts payable	16,682	11,290
Accrued expenses	44,875	39,941
Accrued compensation and related expenses	81,110	126,640
Deferred revenue	352,618	377,845
Convertible senior notes, net	500,604
Other current liabilities	20,677	21,343
Total current liabilities	1,016,566	577,059
Long-term convertible senior notes, net	0	499,368
Long-term operating lease liabilities	70,202	66,901
Other long-term liabilities	14,362	13,570
Total liabilities	1,101,130	1,156,898
Commitments and contingencies (Note 15)
Stockholders’ equity:
Preferred stock, 1,000 shares authorized; none issued	0	0
Common stock, 200,000 shares authorized; 85,369 and 83,840 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	854	838
Additional paid-in capital	473,030	379,584
(Accumulated deficit)	(14,216)	(8,705)
Accumulated other comprehensive (loss)	(24,266)	(17,879)
Total stockholders’ equity	435,402	353,838
Total liabilities and stockholders’ equity	$ 1,536,532	$ 1,510,736

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares shares in Thousands	Jun. 30, 2024	Dec. 31, 2023
Stockholders’ equity:
Preferred stock, shares authorized (in shares)	1,000	1,000
Preferred stock, shares issued (in shares)	0	0
Common stock, shares authorized (in shares)	200,000	200,000
Common stock, shares issued (in shares)	85,369	83,840
Common stock, shares outstanding (in shares)	85,369	83,840

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue
Total revenue	$ 351,153	$ 298,268	$ 681,300	$ 623,740
Cost of revenue
Total cost of revenue	96,946	96,140	191,604	194,074
Gross profit	254,207	202,128	489,696	429,666
Operating expenses
Selling and marketing	139,761	143,858	267,456	293,655
Research and development	75,425	73,931	147,538	149,307
General and administrative	25,420	23,462	48,947	46,572
Litigation settlement, net of recoveries	0	0	32,403	0
Restructuring	635	2,167	798	3,628
Total operating expenses	241,241	243,418	497,142	493,162
Income (loss) from operations	12,966	(41,290)	(7,446)	(63,496)
Foreign currency transaction gain (loss)	437	(3,290)	(2,825)	(5,965)
Interest income	6,785	1,814	12,066	3,299
Interest expense	(1,656)	(1,778)	(3,408)	(3,696)
(Loss) income on capped call transactions	(3,277)	(1,361)	22	1,845
Other income, net	0	5,702	1,684	12,285
Income (loss) before provision for income taxes	15,255	(40,203)	93	(55,728)
Provision for income taxes	8,642	6,601	5,604	11,850
Net income (loss)	$ 6,613	$ (46,804)	$ (5,511)	$ (67,578)
Earnings (loss) per share
Basic (in dollars per share)	$ 0.08	$ (0.56)	$ (0.07)	$ (0.82)
Diluted (in dollars per share)	$ 0.07	$ (0.56)	$ (0.07)	$ (0.82)
Weighted-average number of common shares outstanding
Basic (in shares)	85,157	83,039	84,712	82,823
Diluted (in shares)	88,500	83,039	84,712	82,823
Subscription services
Revenue
Total revenue	$ 214,430	$ 197,105	$ 426,333	$ 384,614
Cost of revenue
Total cost of revenue	36,238	36,783	72,062	73,647
Subscription license
Revenue
Total revenue	84,647	41,197	147,985	125,724
Cost of revenue
Total cost of revenue	477	623	1,120	1,342
Consulting
Revenue
Total revenue	52,040	58,387	106,087	111,420
Cost of revenue
Total cost of revenue	60,231	58,710	118,413	119,058
Perpetual license
Revenue
Total revenue	36	1,579	895	1,982
Cost of revenue
Total cost of revenue	$ 0	$ 24	$ 9	$ 27

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 6,613	$ (46,804)	$ (5,511)	$ (67,578)
Other comprehensive (loss) income, net of tax
Unrealized (loss) on available-for-sale securities	(72)	(195)	(818)	(241)
Foreign currency translation adjustments	(2,142)	361	(5,569)	1,950
Total other comprehensive (loss) income, net of tax	(2,214)	166	(6,387)	1,709
Comprehensive income (loss)	$ 4,399	$ (46,638)	$ (11,898)	$ (65,869)

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional paid-in capital	(Accumulated deficit)	Accumulated other comprehensive (loss)
Balance, beginning of period (in shares) at Dec. 31, 2022		82,436
Balance, beginning of period at Dec. 31, 2022	$ 130,843	$ 824	$ 229,602	$ (76,513)	$ (23,070)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for stock compensation plans (in shares)		452
Issuance of common stock for stock compensation plans	672	$ 4	668
Issuance of common stock under the employee stock purchase plan (in shares)		52
Issuance of common stock under the employee stock purchase plan	2,143	$ 1	2,142
Stock-based compensation	42,557		42,557
Cash dividends declared	(2,488)		(2,488)
Other comprehensive income (loss)	1,543				1,543
Net income (loss)	(20,774)			(20,774)
Balance, end of period (in shares) at Mar. 31, 2023		82,940
Balance, end of period at Mar. 31, 2023	154,496	$ 829	272,481	(97,287)	(21,527)
Balance, beginning of period (in shares) at Dec. 31, 2022		82,436
Balance, beginning of period at Dec. 31, 2022	130,843	$ 824	229,602	(76,513)	(23,070)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	1,709
Net income (loss)	(67,578)
Balance, end of period (in shares) at Jun. 30, 2023		83,212
Balance, end of period at Jun. 30, 2023	145,396	$ 832	310,016	(144,091)	(21,361)
Balance, beginning of period (in shares) at Mar. 31, 2023		82,940
Balance, beginning of period at Mar. 31, 2023	154,496	$ 829	272,481	(97,287)	(21,527)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for stock compensation plans (in shares)		225
Issuance of common stock for stock compensation plans	1,826	$ 2	1,824
Issuance of common stock under the employee stock purchase plan (in shares)		47
Issuance of common stock under the employee stock purchase plan	1,981	$ 1	1,980
Stock-based compensation	36,227		36,227
Cash dividends declared	(2,496)		(2,496)
Other comprehensive income (loss)	166				166
Net income (loss)	(46,804)			(46,804)
Balance, end of period (in shares) at Jun. 30, 2023		83,212
Balance, end of period at Jun. 30, 2023	$ 145,396	$ 832	310,016	(144,091)	(21,361)
Balance, beginning of period (in shares) at Dec. 31, 2023	83,840	83,840
Balance, beginning of period at Dec. 31, 2023	$ 353,838	$ 838	379,584	(8,705)	(17,879)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for stock compensation plans (in shares)		1,139
Issuance of common stock for stock compensation plans	18,656	$ 12	18,644
Issuance of common stock under the employee stock purchase plan (in shares)		32
Issuance of common stock under the employee stock purchase plan	1,758		1,758
Stock-based compensation	34,781		34,781
Cash dividends declared	(2,550)		(2,550)
Other comprehensive income (loss)	(4,173)				(4,173)
Net income (loss)	(12,124)			(12,124)
Balance, end of period (in shares) at Mar. 31, 2024		85,011
Balance, end of period at Mar. 31, 2024	$ 390,186	$ 850	432,217	(20,829)	(22,052)
Balance, beginning of period (in shares) at Dec. 31, 2023	83,840	83,840
Balance, beginning of period at Dec. 31, 2023	$ 353,838	$ 838	379,584	(8,705)	(17,879)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	(6,387)
Net income (loss)	$ (5,511)
Balance, end of period (in shares) at Jun. 30, 2024	85,369	85,369
Balance, end of period at Jun. 30, 2024	$ 435,402	$ 854	473,030	(14,216)	(24,266)
Balance, beginning of period (in shares) at Mar. 31, 2024		85,011
Balance, beginning of period at Mar. 31, 2024	390,186	$ 850	432,217	(20,829)	(22,052)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for stock compensation plans (in shares)		326
Issuance of common stock for stock compensation plans	5,485	$ 4	5,481
Issuance of common stock under the employee stock purchase plan (in shares)		32
Issuance of common stock under the employee stock purchase plan	1,669		1,669
Stock-based compensation	36,224		36,224
Cash dividends declared	(2,561)		(2,561)
Other comprehensive income (loss)	(2,214)		0		(2,214)
Net income (loss)	$ 6,613			6,613
Balance, end of period (in shares) at Jun. 30, 2024	85,369	85,369
Balance, end of period at Jun. 30, 2024	$ 435,402	$ 854	$ 473,030	$ (14,216)	$ (24,266)

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividend declared (in dollars per share)	$ 0.03	$ 0.03	$ 0.03	$ 0.03

UNAUDITED CONDENSED CONSOLIDA_7

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Operating activities
Net (loss)	$ 6,613	$ (46,804)	$ (5,511)	$ (67,578)
Adjustments to reconcile net (loss) to cash provided by operating activities
Stock-based compensation	36,224	36,227	71,005	78,784
Amortization of deferred commissions	14,994	14,750	32,276	29,027
Amortization of intangible assets and depreciation			8,812	9,553
Lease expense			7,844	8,186
Foreign currency transaction loss	(437)	3,290	2,825	5,965
(Gain) on capped call transactions	3,277	1,361	(22)	(1,845)
Deferred income taxes			232	(136)
(Gain) on investments			(1,628)	(4,430)
(Gain) on repurchases of convertible senior notes			0	(7,855)
Other non-cash			(5,056)	2,122
Change in operating assets and liabilities, net			109,466	61,959
Cash provided by operating activities			220,243	113,752
Investing activities
Purchases of investments			(291,810)	(69,662)
Proceeds from maturities and called investments			83,967	88,849
Sales of investments			0	10,725
Investment in property and equipment			(1,857)	(13,933)
Cash (used in) provided by investing activities			(209,700)	15,979
Financing activities
Repurchases of convertible senior notes			0	(88,989)
Dividend payments to stockholders			(5,065)	(4,962)
Proceeds from employee stock plans			29,928	8,044
Common stock repurchases for tax withholdings for net settlement of equity awards			(2,360)	(1,422)
Other			0	341
Cash provided by (used in) financing activities			22,503	(86,988)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash			(2,842)	1,010
Net increase in cash, cash equivalents, and restricted cash			30,204	43,753
Cash, cash equivalents, and restricted cash, beginning of period			232,827	145,054
Cash, cash equivalents, and restricted cash, end of period	263,031	188,807	263,031	188,807
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	258,257	186,874	258,257	186,874
Restricted cash included in other current assets	768		768
Restricted cash included in other long-term assets	4,006	1,933	4,006	1,933
Total cash, cash equivalents, and restricted cash	$ 263,031	$ 188,807	$ 263,031	$ 188,807

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Jun. 30, 2024
Accounting Policies [Abstract]
BASIS OF PRESENTATION	NOTE 1. BASIS OF PRESENTATION Pegasystems Inc. (together with its subsidiaries, “the Company”) has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all the information required by accounting principles generally accepted in the United States of America (“U.S.”) for complete financial statements and should be read in conjunction with the Company’s audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited financial statements, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. All intercompany transactions and balances were eliminated in consolidation. The operating results for the interim periods presented do not necessarily indicate the expected results for 2024.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	6 Months Ended
MARKETABLE SECURITIES	Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	NOTE 2. MARKETABLE SECURITIES June 30, 2024 December 31, 2023 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Government debt $ 12,942 $ — $ (17) $ 12,925 $ 11,471 $ 33 $ (1) $ 11,503 Corporate debt 394,521 1 (628) 393,894 181,960 200 (227) 181,933 $ 407,463 $ 1 $ (645) $ 406,819 $ 193,431 $ 233 $ (228) $ 193,436 As of June 30, 2024, marketable securities’ maturities ranged from July 2024 to January 2026, with a weighted-average remaining maturity of 0.4 years.

RECEIVABLES, CONTRACT ASSETS, A

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE	6 Months Ended
RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE	Jun. 30, 2024
Receivables [Abstract]
RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE	NOTE 3. RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE Receivables (in thousands) June 30, 2024 December 31, 2023 Accounts receivable, net $ 165,723 $ 300,173 Unbilled receivables, net 164,533 237,379 Long-term unbilled receivables, net 81,218 85,402 $ 411,474 $ 622,954 Unbilled receivables Unbilled receivables are client-committed amounts for which revenue recognition precedes billing. Billing is solely subject to the passage of time. Unbilled receivables by expected collection date: (Dollars in thousands) June 30, 2024 1 year or less $ 164,533 67 % 1-2 years 58,353 24 % 2-5 years 22,865 9 % $ 245,751 100 % Unbilled receivables by contract effective date: (Dollars in thousands) June 30, 2024 2024 $ 58,562 24 % 2023 130,140 53 % 2022 29,241 12 % 2021 22,830 9 % 2020 and prior 4,978 2 % $ 245,751 100 % Contract assets Contract assets are client-committed amounts for which revenue recognized exceeds the amount billed to the client, and billing is subject to conditions other than the passage of time, such as the completion of a related performance obligation. (in thousands) June 30, 2024 December 31, 2023 Contract assets $ 15,374 $ 16,238 Long-term contract assets 19,997 20,635 $ 35,371 $ 36,873 Deferred revenue Deferred revenue consists of billings made and payments received in advance of revenue recognition. (in thousands) June 30, 2024 December 31, 2023 Deferred revenue $ 352,618 $ 377,845 Long-term deferred revenue 2,443 2,478 $ 355,061 $ 380,323 The decrease in deferred revenue in the six months ended June 30, 2024, was primarily due to $272.7 million of revenue recognized that was in deferred revenue as of December 31, 2023.

DEFERRED COMMISSIONS

DEFERRED COMMISSIONS	6 Months Ended
DEFERRED COMMISSIONS	Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
DEFERRED COMMISSIONS	NOTE 4. DEFERRED COMMISSIONS (in thousands) June 30, 2024 December 31, 2023 Deferred commissions $ 100,490 $ 114,119 Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Amortization of deferred commissions (1) $ 14,994 $ 14,750 $ 32,276 $ 29,027 (1) Included in selling and marketing.

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	6 Months Ended
GOODWILL AND OTHER INTANGIBLES	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLES	NOTE 5. GOODWILL AND OTHER INTANGIBLES Goodwill Six Months Ended (in thousands) 2024 2023 January 1, $ 81,611 $ 81,399 Currency translation adjustments (201) 194 June 30, $ 81,410 $ 81,593 Intangibles Intangible assets are recorded at cost and amortized using the straight-line method over their estimated useful lives. June 30, 2024 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value Client-related 4-10 years $ 63,112 $ (60,714) $ 2,398 Technology 2-10 years 68,005 (65,198) 2,807 Other 1-5 years 5,361 (5,361) — $ 136,478 $ (131,273) $ 5,205 December 31, 2023 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value Client-related 4-10 years $ 63,117 $ (60,035) $ 3,082 Technology 2-10 years 68,138 (64,218) 3,920 Other 1-5 years 5,361 (5,361) — $ 136,616 $ (129,614) $ 7,002 Future estimated amortization of intangible assets: (in thousands) June 30, 2024 Remainder of 2024 $ 1,399 2025 2,605 2026 874 2027 327 $ 5,205 Amortization of intangible assets: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Cost of revenue $ 447 $ 621 $ 1,068 $ 1,327 Selling and marketing 342 342 685 685 $ 789 $ 963 $ 1,753 $ 2,012

OTHER ASSETS AND LIABILITIES

OTHER ASSETS AND LIABILITIES	6 Months Ended
OTHER ASSETS AND LIABILITIES	Jun. 30, 2024
Other Assets and Liabilities [Abstract]
OTHER ASSETS AND LIABILITIES	NOTE 6. OTHER ASSETS AND LIABILITIES Other current assets (in thousands) June 30, 2024 December 31, 2023 Income tax receivables $ 16,060 $ 4,804 Contract assets 15,374 16,238 Insurance receivable — 1,954 Indirect tax receivable 2,702 1,924 Capped call transactions 915 — Restricted cash 768 — Other 40,504 43,217 $ 76,323 $ 68,137 Other long-term assets (in thousands) June 30, 2024 December 31, 2023 Deferred commissions $ 100,490 $ 114,119 Right of use assets 68,293 64,198 Property and equipment 42,190 47,279 Venture investments 21,047 19,450 Contract assets 19,997 20,635 Intangible assets 5,205 7,002 Capped call transactions — 893 Deferred income taxes 3,666 3,678 Restricted cash 4,006 2,925 Other 37,355 34,517 $ 302,249 $ 314,696 Accrued expenses (in thousands) June 30, 2024 December 31, 2023 Cloud hosting $ 15,152 $ 1,358 Outside professional services 9,539 10,419 Marketing and sales program 7,081 2,557 Income and other taxes 3,422 15,428 Employee related 4,966 4,486 Other 4,715 5,693 $ 44,875 $ 39,941 Other current liabilities (in thousands) June 30, 2024 December 31, 2023 Operating lease liabilities $ 15,254 $ 15,000 Dividends payable 2,561 2,515 Other 2,862 3,828 $ 20,677 $ 21,343 Other long-term liabilities (in thousands) June 30, 2024 December 31, 2023 Deferred revenue $ 2,443 $ 2,478 Income taxes payable 858 859 Other 11,061 10,233 $ 14,362 $ 13,570

LEASES

LEASES	6 Months Ended
LEASES	Jun. 30, 2024
Leases [Abstract]
LEASES	NOTE 7. LEASES Expense Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Fixed lease costs $ 5,271 $ 4,495 $ 9,533 $ 10,261 Short-term lease costs 410 696 953 1,477 Variable lease costs 1,763 2,186 3,372 4,160 $ 7,444 $ 7,377 $ 13,858 $ 15,898 Right of use assets and lease liabilities (in thousands) June 30, 2024 December 31, 2023 Right of use assets $ 68,293 $ 64,198 Operating lease liabilities $ 15,254 $ 15,000 Long-term operating lease liabilities $ 70,202 $ 66,901 Weighted-average remaining lease term and discount rate for the Company’s leases were: June 30, 2024 December 31, 2023 Weighted-average remaining lease term 6.4 years 6.8 years Weighted-average discount rate (1) 4.6 % 4.0 % (1) The rates implicit in the Company’s leases are not readily determinable. Therefore, the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur to borrow an amount equal to the lease payments on a collateralized basis over the lease term in a similar economic environment. Maturities of lease liabilities: (in thousands) June 30, 2024 Remainder of 2024 $ 7,954 2025 18,784 2026 14,384 2027 13,387 2028 12,813 2029 10,099 Thereafter 21,650 Total lease payments 99,071 Less: imputed interest (1) (13,615) $ 85,456 (1) Lease liabilities are measured at the present value of the remaining lease payments using a discount rate determined at lease commencement unless the discount rate is updated due to a lease reassessment event. Cash flow information Six Months Ended (in thousands) 2024 2023 Cash paid for operating leases, net of tenant improvement allowances $ 9,493 $ 10,540 Right of use assets recognized for new leases and amendments (non-cash) $ 12,290 $ 1,465

DEBT

DEBT	6 Months Ended
DEBT	Jun. 30, 2024
Debt Disclosure [Abstract]
DEBT	NOTE 8. DEBT Convertible senior notes and capped calls Convertible senior notes In February 2020, the Company issued Convertible Senior Notes (the "Notes") with an aggregate principal of $600 million, due March 1, 2025, in a private placement. No principal payments are due before maturity. The Notes accrue interest at an annual rate of 0.75%, payable semi-annually in arrears on March 1 and September 1, beginning September 1, 2020. In the three and six months ended June 30, 2023, the Company recognized gains of $5.1 million and $7.9 million, respectively, in other income, net from repurchases of Notes representing $64.7 million and $97.7 million, respectively, in aggregate principal amount. Conversion rights The conversion rate is 7.4045 shares of common stock per $1,000 principal amount of the Notes, representing an initial conversion price of $135.05 per share of common stock. The conversion rate will be adjusted upon certain events, including spin-offs, tender offers, exchange offers, and certain stockholder distributions. The Company will settle conversions by paying or delivering cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company’s election, based on the applicable conversion rate. Beginning on September 1, 2024, noteholders may convert their Notes at any time at their election. Before September 1, 2024, noteholders may convert their Notes in the following circumstances: • During any calendar quarter beginning after June 30, 2020 (and only during such calendar quarter), if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter. • During the five consecutive business days immediately after any five consecutive trading day period (the “Measurement Period”), if the trading price per $1,000 principal amount of Notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price per share of common stock on such trading day and the conversion rate on such trading day. • Upon certain corporate events or distributions or if the Company calls any Notes for redemption, noteholders may convert before the close of business on the business day immediately before the related redemption date (or, if the Company fails to pay the redemption price in full on the redemption date until the Company pays the redemption price). As of June 30, 2024, the Notes were not eligible for conversion. Repurchase rights On or after March 1, 2023 and on or before the 40th scheduled trading day immediately before the maturity date, the Company may redeem for cash all or part of the Notes at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest, if the last reported sale price of the Company’s common stock exceeded 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides a redemption notice. If certain corporate events that constitute a “Fundamental Change” occur, each noteholder will have the right to require the Company to repurchase for cash all of such noteholder’s Notes, or any portion of the principal thereof that is equal to $1,000 or a multiple of $1,000, at a repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. A Fundamental Change relates to mergers, changes in control of the Company, liquidation/dissolution of the Company, or the delisting of the Company’s common stock. Carrying value of the Notes: (in thousands) June 30, 2024 December 31, 2023 Principal $ 502,270 $ 502,270 Unamortized issuance costs (1,666) (2,902) Convertible senior notes, net $ 500,604 $ 499,368 Interest expense related to the Notes: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Contractual interest expense (0.75% coupon) $ 942 $ 997 $ 1,884 $ 2,122 Amortization of issuance costs 619 647 1,236 1,375 $ 1,561 $ 1,644 $ 3,120 $ 3,497 The average interest rate on the Notes in the six months ended June 30, 2024 and 2023 was 1.2%. Future payments: June 30, 2024 (in thousands) Principal Interest Total Remainder of 2024 $ — $ 1,883 $ 1,883 2025 502,270 1,884 504,154 $ 502,270 $ 3,767 $ 506,037 Capped call transactions In February 2020, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain financial institutions. The Capped Call Transactions initially covered approximately 4.4 million shares (representing the number of shares for which the Notes were initially convertible) of the Company’s common stock. In the three and six months ended June 30, 2023, Capped Call Transactions covering approximately 0.5 million and 0.7 million shares, respectively, were settled for proceeds of $0.1 million and $0.3 million, respectively. As of June 30, 2024, Capped Call Transactions covering approximately 3.7 million shares were outstanding. The Capped Call Transactions are expected to reduce common stock dilution and/or offset any potential cash payments the Company must make, other than for principal and interest, upon conversion of the Notes, with such reduction and/or offset subject to a cap of $196.44. The cap price of the Capped Call Transactions is subject to adjustment upon specified extraordinary events affecting the Company, including mergers and tender offers. The Capped Call Transactions are accounted for as derivative instruments and do not qualify for the Company’s own equity scope exception in ASC 815 since, in some cases of early settlement, the settlement value calculated following the governing documents may not represent a fair value measurement. The Capped Call Transactions are remeasured to fair value each reporting period, resulting in a non-operating gain or loss. Change in capped call transactions: Six Months Ended (in thousands) 2024 2023 January 1, $ 893 $ 2,582 Settlements — (341) Fair value adjustment 22 1,845 June 30, $ 915 $ 4,086 Credit facility In November 2019, and as since amended, the Company entered into a five-year $100 million senior secured revolving credit agreement (the “Credit Facility”) with PNC Bank, National Association. The Company may use borrowings for general corporate purposes and to finance working capital needs. Subject to specific conditions and the agreement of the financial institutions lending the additional amount, the aggregate commitment may be increased to $200 million. The commitments expire on November 4, 2024, and any outstanding loans will be payable on such date. On April 23, 2024, the Credit Facility was amended to extend the expiration date to February 4, 2025. The Credit Facility, as amended, contains customary covenants, including, but not limited to, those relating to additional indebtedness, liens, asset divestitures, and affiliate transactions. Beginning with the fiscal quarter ended March 31, 2024, the Company must maintain a maximum net consolidated leverage ratio of 3.5 to 1.0 (with a step-up for certain acquisitions) and a minimum consolidated interest coverage ratio of 3.5 to 1.

RESTRUCTURING

RESTRUCTURING	6 Months Ended
RESTRUCTURING	Jun. 30, 2024
Restructuring and Related Activities [Abstract]
RESTRUCTURING	NOTE 9. RESTRUCTURING The Company has undertaken the following restructuring activities as it optimizes its go-to-market strategy and reassesses its office space needs: (in thousands) Three months ended Expense Office space reduction March 31, 2023 $ 1,241 Employee severance and related benefits June 30, 2023 $ 1,581 Employee severance and related benefits and office space reduction September 30, 2023 $ 17,236 Office space reduction December 31, 2023 $ 1,497 Office space reduction June 30, 2024 $ 1,257 Accrued employee severance and related benefits: Change for all restructuring actions: Six Months Ended (in thousands) 2024 2023 January 1, $ 8,095 $ 18,573 Costs incurred (238) 2,387 Cash disbursements (3,852) (17,521) Currency translation adjustments (169) 185 June 30, $ 3,836 $ 3,624 Note: Accrued employee severance and related benefits is included in accrued compensation and related expenses.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
FAIR VALUE MEASUREMENTS	Jun. 30, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 10. FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis The Company records its cash equivalents, marketable securities, Capped Call Transactions, and venture investments at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants based on assumptions that market participants would use in pricing an asset or liability. As a basis for classifying the fair value measurements, a three-tier fair value hierarchy, which classifies the fair value measurements based on the inputs used in measuring fair value, was established as follows: • Level 1 - observable inputs, such as quoted prices in active markets for identical assets or liabilities; • Level 2 - significant other inputs that are observable either directly or indirectly; and • Level 3 - significant unobservable inputs with little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data when available and minimize unobservable inputs when determining fair value. The fair value of the Capped Call Transactions at the end of each reporting period is determined using a Black-Scholes option-pricing model. The valuation model uses various market-based inputs, including stock price, remaining contractual term, expected volatility, risk-free interest rate, and expected dividend yield. The Company applies judgment when determining expected volatility. The Company considers the underlying equity security’s historical and implied volatility levels. The Company’s venture investments are recorded at fair value based on multiple valuation methods, including observable public companies and transaction prices and unobservable inputs, including the volatility, rights, and obligations of the securities the Company holds. Assets and liabilities measured at fair value on a recurring basis: June 30, 2024 December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents $ 18,345 $ — $ — $ 18,345 $ 54,357 $ — $ — $ 54,357 Marketable securities $ — $ 406,819 $ — $ 406,819 $ — $ 193,436 $ — $ 193,436 Capped Call Transactions $ — $ 915 $ — $ 915 $ — $ 893 $ — $ 893 Venture investments (1) $ — $ — $ 21,047 $ 21,047 $ — $ — $ 19,450 $ 19,450 (1) Investments in privately-held companies Changes in venture investments: Six Months Ended (in thousands) 2024 2023 January 1, $ 19,450 $ 13,069 New investments 350 400 Sales of investments — (2,773) Changes in foreign exchange rates (19) 119 Changes in fair value: included in other income, net 1,628 4,475 included in other comprehensive income (loss) (362) (1,908) June 30, $ 21,047 $ 13,382 The carrying value of certain financial instruments, including receivables and accounts payable, approximates fair value due to their short maturities. Fair value of the Convertible Senior Notes The fair value of the Notes outstanding (including the embedded conversion feature) was $485.3 million as of June 30, 2024, and $466.5 million as of December 31, 2023. The fair value was determined based on the Notes’ quoted price in an over-the-counter market on the last trading day of the reporting period and classified within Level 2 in the fair value hierarchy.

REVENUE

REVENUE	6 Months Ended
REVENUE	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
REVENUE	NOTE 11. REVENUE Geographic revenue Three Months Ended Six Months Ended (Dollars in thousands) 2024 2023 2024 2023 U.S. $ 189,214 54 % $ 150,385 50 % $ 370,197 55 % $ 334,904 54 % Other Americas 21,314 6 % 19,505 7 % 43,100 6 % 34,516 6 % United Kingdom (“U.K.”) 38,628 11 % 28,892 10 % 70,745 10 % 71,129 11 % Europe (excluding U.K.), Middle East, and Africa 53,360 15 % 54,353 18 % 115,207 17 % 105,671 17 % Asia-Pacific 48,637 14 % 45,133 15 % 82,051 12 % 77,520 12 % $ 351,153 100 % $ 298,268 100 % $ 681,300 100 % $ 623,740 100 % Revenue streams Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Subscription license $ 84,647 $ 41,197 $ 147,985 $ 125,724 Perpetual license 36 1,579 895 1,982 Revenue recognized at a point in time 84,683 42,776 148,880 127,706 Maintenance 80,344 82,042 161,345 161,672 Pega Cloud 134,086 115,063 264,988 222,942 Consulting 52,040 58,387 106,087 111,420 Revenue recognized over time 266,470 255,492 532,420 496,034 Total revenue $ 351,153 $ 298,268 $ 681,300 $ 623,740 Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Pega Cloud $ 134,086 $ 115,063 $ 264,988 $ 222,942 Maintenance 80,344 82,042 161,345 161,672 Subscription services 214,430 197,105 426,333 384,614 Subscription license 84,647 41,197 147,985 125,724 Subscription 299,077 238,302 574,318 510,338 Consulting 52,040 58,387 106,087 111,420 Perpetual license 36 1,579 895 1,982 $ 351,153 $ 298,268 $ 681,300 $ 623,740 Remaining performance obligations ("Backlog") Expected future revenue from existing non-cancellable contracts: As of June 30, 2024: (Dollars in thousands) Subscription services Subscription license Perpetual license Consulting Total Pega Cloud Maintenance 1 year or less $ 470,379 $ 209,655 $ 23,931 $ 2,696 $ 25,953 $ 732,614 52 % 1-2 years 301,070 63,266 10,078 — 2,469 376,883 27 % 2-3 years 152,839 30,032 2,884 — 2,473 188,228 13 % Greater than 3 years 90,474 17,953 97 — — 108,524 8 % $ 1,014,762 $ 320,906 $ 36,990 $ 2,696 $ 30,895 $ 1,406,249 100 % As of June 30, 2023: (Dollars in thousands) Subscription services Subscription license Perpetual license Consulting Total Pega Cloud Maintenance 1 year or less $ 397,183 $ 214,579 $ 35,616 $ 4,979 $ 37,355 $ 689,712 55 % 1-2 years 238,691 58,551 3,026 2,252 6,772 309,292 24 % 2-3 years 124,616 25,103 6,764 — 1,523 158,006 12 % Greater than 3 years 101,494 7,592 — — — 109,086 9 % $ 861,984 $ 305,825 $ 45,406 $ 7,231 $ 45,650 $ 1,266,096 100 %

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
STOCK-BASED COMPENSATION	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	NOTE 12. STOCK-BASED COMPENSATION Expense Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Cost of revenue $ 7,092 $ 7,174 $ 13,664 $ 16,087 Selling and marketing 13,564 15,349 27,452 33,009 Research and development 7,825 7,851 15,471 16,911 General and administrative 7,743 5,853 14,418 12,777 $ 36,224 $ 36,227 $ 71,005 $ 78,784 Income tax benefit $ (554) $ (581) $ (865) $ (1,253) As of June 30, 2024, the Company had $149.7 million of unrecognized stock-based compensation expense, net of estimated forfeitures, which is expected to be recognized over a weighted-average period of 1.7 years. Grants Six Months Ended (in thousands) Quantity Total Fair Value Restricted stock units (1) 1,266 $ 78,071 Non-qualified stock options 1,738 $ 44,874 Performance stock options (2) 566 $ 13,921 (1) Includes units issued when employees elect to receive 50% of the employee’s target incentive compensation under the Company’s Corporate Incentive Compensation Plan (the “CICP”) in the form of RSUs instead of cash. (2) Performance stock options allow the holder to purchase a specified number of common stock shares at an exercise price equal to or greater than the shares' fair market value at the grant date. For the performance stock options granted in the six months ended June 30, 2024, 25% can vest on the first anniversary of the grant date, and 75% can vest on the second anniversary of the grant date, based on the achievement of specific performance conditions. The options expire ten years from the grant date.

INCOME TAXES

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 13. INCOME TAXES Effective income tax rate Six Months Ended (Dollars in thousands) 2024 2023 Provision for income taxes $ 5,604 $ 11,850 Effective income tax rate * (21) % * not meaningful The Company’s effective income tax rate for the six months ended June 30, 2024, is impacted by the jurisdictional mix and timing of the actual compared to projected earnings (losses). It is also impacted by the valuation allowance on its deferred tax assets in the U.S. and U.K. and a near break-even pretax income resulting in a not meaningful high effective income tax rate. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. A deferred tax valuation allowance requires significant judgment and uncertainties, including assumptions about future taxable income. Quarterly, the Company reassesses the need for a valuation allowance on its net deferred tax assets by weighting all available and objectively verifiable negative and positive evidence, including projected future reversals of existing taxable temporary differences, committed contractual backlog (“Backlog”), projected future taxable income, including the impact of enacted legislation, tax-planning strategies, and recent operating results. The Company intends to maintain a valuation allowance on its U.S. and U.K. net deferred tax assets until sufficient evidence exists to support their realization.

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	6 Months Ended
EARNINGS (LOSS) PER SHARE	Jun. 30, 2024
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	NOTE 14. EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is calculated using the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated using the weighted-average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options, RSUs, and convertible senior notes. Calculation of earnings (loss) per share: Three Months Ended Six Months Ended (in thousands, except per share amounts) 2024 2023 2024 2023 Net income (loss) $ 6,613 $ (46,804) $ (5,511) $ (67,578) Weighted-average common shares outstanding 85,157 83,039 84,712 82,823 Earnings (loss) per share, basic $ 0.08 $ (0.56) $ (0.07) $ (0.82) Net income (loss) $ 6,613 $ (46,804) $ (5,511) $ (67,578) Numerator for diluted EPS $ 6,613 $ (46,804) $ (5,511) $ (67,578) Weighted-average effect of dilutive securities: Stock options 2,164 — — — RSUs 1,179 — — — Effect of dilutive securities 3,343 — — — Weighted-average common shares outstanding, assuming dilution (1) (2) (3) 88,500 83,039 84,712 82,823 Earnings (loss) per share, diluted $ 0.07 $ (0.56) $ (0.07) $ (0.82) Outstanding anti-dilutive stock options and RSUs (4) 5 1,354 3,259 1,351 (1) All dilutive securities are excluded when their inclusion would be anti-dilutive. (2) The shares underlying the conversion options in the Company’s Notes are included using the if-converted method, if dilutive in the period. If the outstanding conversion options were fully exercised, the Company would issue approximately 3.7 million shares as of June 30, 2024. (3) The Company’s Capped Call Transactions represent the equivalent of approximately 3.7 million shares of the Company’s common stock (representing the number of shares for which the Notes are convertible) as of June 30, 2024. The Capped Call Transactions are expected to reduce common stock dilution and/or offset any potential cash payments the Company must make, other than for principal and interest, upon conversion of the Notes, with such reduction and/or offset subject to a cap of $196.44. The Capped Call Transactions are excluded from weighted-average common shares outstanding, assuming dilution, in all periods as their effect would be anti-dilutive. (4) Outstanding stock options and RSUs that were anti-dilutive under the treasury stock method in the period were excluded from the computation of diluted earnings (loss) per share. These awards may be dilutive in the future.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 15. COMMITMENTS AND CONTINGENCIES Commitments See "Note 7. Leases" for additional information. Legal proceedings In addition to the matters below, the Company is or may become involved in a variety of claims, demands, suits, investigations, and proceedings that arise from time to time relating to matters incidental to the ordinary course of the Company’s business, including actions concerning contracts, intellectual property, employment, benefits, and securities matters. Regardless of the outcome, legal disputes can have a material effect on the Company because of defense and settlement costs, diversion of management resources, and other factors. In addition, as the Company is a party to ongoing litigation, it is at least reasonably possible that the Company’s estimates will change in the near term, and the effect may be material. The Company had no accrued losses for litigation for the below matters as of June 30, 2024 and December 31, 2023. Appian Corp. v. Pegasystems Inc. & Youyong Zou The Company is a defendant in litigation brought by Appian in the Circuit Court of Fairfax County, Virginia (the “Court”) titled Appian Corp. v. Pegasystems Inc. & Youyong Zou, No. 2020-07216 (Fairfax Cty. Ct.). On May 9, 2022, the jury rendered its verdict finding that the Company had misappropriated one or more of Appian’s trade secrets, that the Company had violated the Virginia Computer Crimes Act, and that the trade secret misappropriation was willful and malicious. The jury awarded damages of $2,036,860,045 for trade secret misappropriation and $1.00 for violating the Virginia Computer Crimes Act. On September 15, 2022, the circuit court of Fairfax County entered judgment of $2,060,479,287, consisting of the damages previously awarded by the jury plus attorneys’ fees and costs, and stating that the judgment is subject to post-judgment interest at a rate of 6.0% per annum, from the date of the jury verdict (May 9, 2022) as to the amount of the jury verdict and from September 15, 2022 as to the amount of the award of attorneys’ fees and costs. On September 15, 2022, the Company filed a notice of appeal from the judgment. On September 29, 2022, the circuit court of Fairfax County approved a $25,000,000 letter of credit obtained by the Company to secure the judgment and entered an order suspending the judgment during the pendency of the Company’s appeal. A panel of the Court of Appeals of Virginia heard oral arguments on November 15, 2023, and will issue a written opinion in the future. Although it is not possible to predict timing, the entirety of the appeals process could potentially take years to complete. The Company continues to believe that it did not misappropriate any alleged trade secrets and that its sales of the Company’s products at issue were not caused by, or the result of, any alleged misappropriation of trade secrets. The Company is unable to reasonably estimate possible damages because of, among other things, uncertainty as to the outcome of appellate proceedings and/or any potential new trial resulting from the appellate proceedings. City of Fort Lauderdale Police and Firefighters’ Retirement System, Individually and on Behalf of All Others Similarly Situated v. Pegasystems Inc., Alan Trefler, and Kenneth Stillwell On May 19, 2022, a lawsuit was filed against the Company, the Company’s chief executive officer, and the Company’s chief operating and financial officer in the United States District Court for the Eastern District of Virginia Alexandria Division, captioned City of Fort Lauderdale Police and Firefighters’ Retirement System, Individually and on Behalf of All Others Similarly Situated v. Pegasystems Inc., Alan Trefler, and Kenneth Stillwell (Case 1:22-cv-00578-LMB-IDD). The complaint generally alleges, among other things, that the defendants violated Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Rule 10b-5 promulgated thereunder and that the individual defendants violated Section 20(a) of the Exchange Act, in each case by allegedly making materially false and/or misleading statements, as well as allegedly failing to disclose material adverse facts about the Company’s business, operations, and prospects, which caused the Company’s securities to trade at artificially inflated prices. The complaint seeks unspecified damages on behalf of a class of purchasers of the Company’s securities between May 29, 2020 and May 9, 2022. The litigation has since been transferred to the United States District Court for the District of Massachusetts (Case 1:22-cv-11220-WGY), and lead plaintiff class representatives - Central Pennsylvania Teamsters Pension Fund - Defined Benefit Plan, Central Pennsylvania Teamsters Pension Fund - Retirement Income Plan 1987, and Construction Industry Laborers Pension Fund - have been appointed. On October 18, 2022, a consolidated amended complaint was filed that does not add any new parties or legal claims, is based upon the same general factual allegations as the original complaint, and now seeks unspecified damages on behalf of a class of purchasers of the Company’s securities between June 16, 2020 and May 9, 2022. The Company moved to dismiss the consolidated amended complaint on December 19, 2022. The hearing on the Company’s motion to dismiss took place on May 17, 2023. After hearing argument from both sides, the Court denied the Company’s motion from the bench and stated that a written opinion would follow. On June 30, 2023, the Company filed its Answer to the complaint. On July 24, 2023, the Court issued its written opinion denying the motion to dismiss as to the Company and Defendant Trefler but granting the motion without prejudice as to Mr. Stillwell. On March 4, 2024, the parties agreed in principle to a proposed settlement of the litigation for an aggregate sum of $35 million. On April 23, 2024, the parties executed a stipulation of settlement. On April 23, 2024, the plaintiffs filed a motion seeking preliminary approval of the settlement. On May 15, 2024, the Court granted plaintiffs’ motion for preliminary approval of the settlement and scheduled a settlement hearing for September 19, 2024. The deadline for the proposed class of shareholders to object to the proposed settlement is August 29, 2024. In May 2024, the Company paid $32.4 million and the Company’s insurance carriers paid $2.6 million pending final approval of the settlement. It is possible that actual future losses related to the litigation could exceed the settlement amount if and to the extent that the court does not approve the proposed settlement. In re Pegasystems Inc., Derivative Litigation On November 21, 2022, a lawsuit was filed against the members of the Company’s board of directors, the Company’s chief operating and financial officer and the Company in the United States District Court for the District of Massachusetts, captioned Mary Larkin, derivatively on behalf of nominal defendant Pegasystems Inc. v. Peter Gyenes, Richard Jones, Christopher Lafond, Dianne Ledingham, Sharon Rowlands, Alan Trefler, Larry Weber, and Kenneth Stillwell, defendants, and Pegasystems Inc., nominal defendant (Case 1:22-cv-11985). The complaint generally alleges the defendants sold shares of the Company while in possession of material nonpublic information relating to (i) the litigation brought by Appian in the Circuit Court of Fairfax County, Virginia, described above, and (ii) alleged misconduct by Company employees alleged in that litigation. On April 28, 2023, a lawsuit was filed in the United States District Court for the District of Massachusetts by Dag Sagfors, derivatively on behalf of nominal defendant Pegasystems Inc., asserting breach of fiduciary duty and related claims relating to the Virginia Appian litigation against the same defendants as the Larkin lawsuit. On May 17, 2023, the Larkin and Sagfors cases were consolidated and a joint motion to stay the consolidated case is pending before the Court. The Company also has received confidential demand letters raising substantially the same allegations set forth in the foregoing derivative complaints. On April 12, 2023, the Company’s board of directors (other than Mr. Trefler, who recused himself), formed a committee consisting solely of independent directors, to review, analyze, and investigate the matters raised in the demands and to determine in good faith what actions (if any) are reasonably believed to be appropriate under similar circumstances and reasonably believed to be in the best interests of the Company in response to the demand letters. On June 28, 2024, a lawsuit was filed against members of the Company’s board of directors, certain employees of the Company and the Company in the Business Litigation Section of the Superior Court in Suffolk County, Massachusetts, captioned John Dwyer and Ray Gerber, Plaintiffs, v. Alan Trefler, Peter Gyenes, Richard Jones, Christopher Lafond, Dianne Ledingham, Sharon Rowlands, Larry Weber, Leon Trefler, Don Schuerman, Kerim Akgonul, and Benjamin Baril, Defendants, Pegasystems Inc., Nominal Defendant (Case 2484CV01734). The complaint generally alleges the defendants breached their fiduciary duties in connection with alleged misconduct by Company employees alleged in the litigation brought by Appian in the Circuit Court of Fairfax County, Virginia, described above, and alleges damages from the approximately $2 billion verdict in the litigation brought by Appian in the Circuit Court of Fairfax County, Virginia, described above, the recent class action settlement, and litigation costs from various proceedings. On July 17, 2024, the parties filed a stipulation with the court in which they agreed to extend defendants’ time to respond to the operative complaint to 45 days following a decision from the Virginia Court of Appeals. The Company is unable to reasonably estimate possible damages or a range of possible damages in these matters given the stage of the lawsuits and there being no specified quantum of damages sought in the complaints. SEC Inquiry Beginning in March 2023, the U.S. Securities and Exchange Commission (“SEC”) has requested certain information relating to, among other things, the accounting treatment of the Company’s above-described litigation with Appian Corporation. The Company is fully cooperating with the SEC’s requests.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income (loss)	$ 6,613	$ (12,124)	$ (46,804)	$ (20,774)	$ (5,511)	$ (67,578)

Insider Trading Arrangements

Insider Trading Arrangements shares in Thousands	3 Months Ended	6 Months Ended
Insider Trading Arrangements shares in Thousands	Jun. 30, 2024 shares	Jun. 30, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Richard H. Jones [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On April 30, 2024, Richard H. Jones, one of our directors, entered into a trading plan that provides for the sale of an aggregate of 50,000 shares of our common stock. The plan will terminate on April 30, 2025, subject to early termination for certain specified events set forth in the plan.
Name	Richard H. Jones
Title	directors
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	April 30, 2024
Arrangement Duration	365 days
Richard H. Jones Rule Trading Arrangement, Common Stock [Member] \| Richard H. Jones [Member]
Trading Arrangements, by Individual
Aggregate Available	50	50

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
BASIS OF PRESENTATION (Policies)	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of presentation	Pegasystems Inc. (together with its subsidiaries, “the Company”) has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all the information required by accounting principles generally accepted in the United States of America (“U.S.”) for complete financial statements and should be read in conjunction with the Company’s audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited financial statements, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. All intercompany transactions and balances were eliminated in consolidation. The operating results for the interim periods presented do not necessarily indicate the expected results for 2024.
Assets and liabilities measured at fair value on a recurring basis	Assets and liabilities measured at fair value on a recurring basis The Company records its cash equivalents, marketable securities, Capped Call Transactions, and venture investments at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants based on assumptions that market participants would use in pricing an asset or liability. As a basis for classifying the fair value measurements, a three-tier fair value hierarchy, which classifies the fair value measurements based on the inputs used in measuring fair value, was established as follows: • Level 1 - observable inputs, such as quoted prices in active markets for identical assets or liabilities; • Level 2 - significant other inputs that are observable either directly or indirectly; and • Level 3 - significant unobservable inputs with little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data when available and minimize unobservable inputs when determining fair value. The fair value of the Capped Call Transactions at the end of each reporting period is determined using a Black-Scholes option-pricing model. The valuation model uses various market-based inputs, including stock price, remaining contractual term, expected volatility, risk-free interest rate, and expected dividend yield. The Company applies judgment when determining expected volatility. The Company considers the underlying equity security’s historical and implied volatility levels. The Company’s venture investments are recorded at fair value based on multiple valuation methods, including observable public companies and transaction prices and unobservable inputs, including the volatility, rights, and obligations of the securities the Company holds.

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	6 Months Ended
MARKETABLE SECURITIES (Tables)	Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Marketable Securities	June 30, 2024 December 31, 2023 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Government debt $ 12,942 $ — $ (17) $ 12,925 $ 11,471 $ 33 $ (1) $ 11,503 Corporate debt 394,521 1 (628) 393,894 181,960 200 (227) 181,933 $ 407,463 $ 1 $ (645) $ 406,819 $ 193,431 $ 233 $ (228) $ 193,436

RECEIVABLES, CONTRACT ASSETS,_2

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE (Tables)	6 Months Ended
RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE (Tables)	Jun. 30, 2024
Receivables [Abstract]
Schedule of Receivables	Receivables (in thousands) June 30, 2024 December 31, 2023 Accounts receivable, net $ 165,723 $ 300,173 Unbilled receivables, net 164,533 237,379 Long-term unbilled receivables, net 81,218 85,402 $ 411,474 $ 622,954
Schedule of Unbilled Receivables	Unbilled receivables by expected collection date: (Dollars in thousands) June 30, 2024 1 year or less $ 164,533 67 % 1-2 years 58,353 24 % 2-5 years 22,865 9 % $ 245,751 100 %
Schedule of Unbilled Receivables by Contract Effective Date	Unbilled receivables by contract effective date: (Dollars in thousands) June 30, 2024 2024 $ 58,562 24 % 2023 130,140 53 % 2022 29,241 12 % 2021 22,830 9 % 2020 and prior 4,978 2 % $ 245,751 100 %
Schedule of Contract Assets and Deferred Revenue	Contract assets Contract assets are client-committed amounts for which revenue recognized exceeds the amount billed to the client, and billing is subject to conditions other than the passage of time, such as the completion of a related performance obligation. (in thousands) June 30, 2024 December 31, 2023 Contract assets $ 15,374 $ 16,238 Long-term contract assets 19,997 20,635 $ 35,371 $ 36,873 Deferred revenue Deferred revenue consists of billings made and payments received in advance of revenue recognition. (in thousands) June 30, 2024 December 31, 2023 Deferred revenue $ 352,618 $ 377,845 Long-term deferred revenue 2,443 2,478 $ 355,061 $ 380,323

DEFERRED COMMISSIONS (Tables)

DEFERRED COMMISSIONS (Tables)	6 Months Ended
DEFERRED COMMISSIONS (Tables)	Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Impairment of Deferred Contract Costs	(in thousands) June 30, 2024 December 31, 2023 Deferred commissions $ 100,490 $ 114,119
Schedule of Amortization of Deferred Contract Costs	Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Amortization of deferred commissions (1) $ 14,994 $ 14,750 $ 32,276 $ 29,027 (1) Included in selling and marketing.

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	6 Months Ended
GOODWILL AND OTHER INTANGIBLES (Tables)	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Six Months Ended (in thousands) 2024 2023 January 1, $ 81,611 $ 81,399 Currency translation adjustments (201) 194 June 30, $ 81,410 $ 81,593
Schedule of Intangibles	Intangible assets are recorded at cost and amortized using the straight-line method over their estimated useful lives. June 30, 2024 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value Client-related 4-10 years $ 63,112 $ (60,714) $ 2,398 Technology 2-10 years 68,005 (65,198) 2,807 Other 1-5 years 5,361 (5,361) — $ 136,478 $ (131,273) $ 5,205 December 31, 2023 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value Client-related 4-10 years $ 63,117 $ (60,035) $ 3,082 Technology 2-10 years 68,138 (64,218) 3,920 Other 1-5 years 5,361 (5,361) — $ 136,616 $ (129,614) $ 7,002
Schedule of Future Estimated Intangibles Assets Amortization	Future estimated amortization of intangible assets: (in thousands) June 30, 2024 Remainder of 2024 $ 1,399 2025 2,605 2026 874 2027 327 $ 5,205
Schedule of Amortization of Intangible Assets	Amortization of intangible assets: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Cost of revenue $ 447 $ 621 $ 1,068 $ 1,327 Selling and marketing 342 342 685 685 $ 789 $ 963 $ 1,753 $ 2,012

OTHER ASSETS AND LIABILITIES (T

OTHER ASSETS AND LIABILITIES (Tables)	6 Months Ended
OTHER ASSETS AND LIABILITIES (Tables)	Jun. 30, 2024
Other Assets and Liabilities [Abstract]
Schedule of Other Assets and Other Liabilities	Other current assets (in thousands) June 30, 2024 December 31, 2023 Income tax receivables $ 16,060 $ 4,804 Contract assets 15,374 16,238 Insurance receivable — 1,954 Indirect tax receivable 2,702 1,924 Capped call transactions 915 — Restricted cash 768 — Other 40,504 43,217 $ 76,323 $ 68,137 Other long-term assets (in thousands) June 30, 2024 December 31, 2023 Deferred commissions $ 100,490 $ 114,119 Right of use assets 68,293 64,198 Property and equipment 42,190 47,279 Venture investments 21,047 19,450 Contract assets 19,997 20,635 Intangible assets 5,205 7,002 Capped call transactions — 893 Deferred income taxes 3,666 3,678 Restricted cash 4,006 2,925 Other 37,355 34,517 $ 302,249 $ 314,696 Other current liabilities (in thousands) June 30, 2024 December 31, 2023 Operating lease liabilities $ 15,254 $ 15,000 Dividends payable 2,561 2,515 Other 2,862 3,828 $ 20,677 $ 21,343 Other long-term liabilities (in thousands) June 30, 2024 December 31, 2023 Deferred revenue $ 2,443 $ 2,478 Income taxes payable 858 859 Other 11,061 10,233 $ 14,362 $ 13,570
Schedule of Accrued expenses	Accrued expenses (in thousands) June 30, 2024 December 31, 2023 Cloud hosting $ 15,152 $ 1,358 Outside professional services 9,539 10,419 Marketing and sales program 7,081 2,557 Income and other taxes 3,422 15,428 Employee related 4,966 4,486 Other 4,715 5,693 $ 44,875 $ 39,941

LEASES (Tables)

LEASES (Tables)	6 Months Ended
LEASES (Tables)	Jun. 30, 2024
Leases [Abstract]
Schedule of Expense	Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Fixed lease costs $ 5,271 $ 4,495 $ 9,533 $ 10,261 Short-term lease costs 410 696 953 1,477 Variable lease costs 1,763 2,186 3,372 4,160 $ 7,444 $ 7,377 $ 13,858 $ 15,898
Schedule of Right of Use Asset and Lease Liabilities	(in thousands) June 30, 2024 December 31, 2023 Right of use assets $ 68,293 $ 64,198 Operating lease liabilities $ 15,254 $ 15,000 Long-term operating lease liabilities $ 70,202 $ 66,901
Schedule of Weighted Average and Discount Rate	Weighted-average remaining lease term and discount rate for the Company’s leases were: June 30, 2024 December 31, 2023 Weighted-average remaining lease term 6.4 years 6.8 years Weighted-average discount rate (1) 4.6 % 4.0 % (1) The rates implicit in the Company’s leases are not readily determinable. Therefore, the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur to borrow an amount equal to the lease payments on a collateralized basis over the lease term in a similar economic environment.
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities: (in thousands) June 30, 2024 Remainder of 2024 $ 7,954 2025 18,784 2026 14,384 2027 13,387 2028 12,813 2029 10,099 Thereafter 21,650 Total lease payments 99,071 Less: imputed interest (1) (13,615) $ 85,456 (1) Lease liabilities are measured at the present value of the remaining lease payments using a discount rate determined at lease commencement unless the discount rate is updated due to a lease reassessment event.
Schedule of Cash Flow Lease Information	Six Months Ended (in thousands) 2024 2023 Cash paid for operating leases, net of tenant improvement allowances $ 9,493 $ 10,540 Right of use assets recognized for new leases and amendments (non-cash) $ 12,290 $ 1,465

DEBT (Tables)

DEBT (Tables)	6 Months Ended
DEBT (Tables)	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Carrying Value and Interest Expense Related to the Notes	Carrying value of the Notes: (in thousands) June 30, 2024 December 31, 2023 Principal $ 502,270 $ 502,270 Unamortized issuance costs (1,666) (2,902) Convertible senior notes, net $ 500,604 $ 499,368 Interest expense related to the Notes: Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Contractual interest expense (0.75% coupon) $ 942 $ 997 $ 1,884 $ 2,122 Amortization of issuance costs 619 647 1,236 1,375 $ 1,561 $ 1,644 $ 3,120 $ 3,497
Schedule of Future Payments	Future payments: June 30, 2024 (in thousands) Principal Interest Total Remainder of 2024 $ — $ 1,883 $ 1,883 2025 502,270 1,884 504,154 $ 502,270 $ 3,767 $ 506,037
Schedule of Change in Capped Call Transactions	Change in capped call transactions: Six Months Ended (in thousands) 2024 2023 January 1, $ 893 $ 2,582 Settlements — (341) Fair value adjustment 22 1,845 June 30, $ 915 $ 4,086

RESTRUCTURING (Tables)

RESTRUCTURING (Tables)	6 Months Ended
RESTRUCTURING (Tables)	Jun. 30, 2024
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Activities and Accrued Employee Severance and Related Benefit	The Company has undertaken the following restructuring activities as it optimizes its go-to-market strategy and reassesses its office space needs: (in thousands) Three months ended Expense Office space reduction March 31, 2023 $ 1,241 Employee severance and related benefits June 30, 2023 $ 1,581 Employee severance and related benefits and office space reduction September 30, 2023 $ 17,236 Office space reduction December 31, 2023 $ 1,497 Office space reduction June 30, 2024 $ 1,257 Accrued employee severance and related benefits: Change for all restructuring actions: Six Months Ended (in thousands) 2024 2023 January 1, $ 8,095 $ 18,573 Costs incurred (238) 2,387 Cash disbursements (3,852) (17,521) Currency translation adjustments (169) 185 June 30, $ 3,836 $ 3,624 Note: Accrued employee severance and related benefits is included in accrued compensation and related expenses.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value	Assets and liabilities measured at fair value on a recurring basis: June 30, 2024 December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents $ 18,345 $ — $ — $ 18,345 $ 54,357 $ — $ — $ 54,357 Marketable securities $ — $ 406,819 $ — $ 406,819 $ — $ 193,436 $ — $ 193,436 Capped Call Transactions $ — $ 915 $ — $ 915 $ — $ 893 $ — $ 893 Venture investments (1) $ — $ — $ 21,047 $ 21,047 $ — $ — $ 19,450 $ 19,450 (1) Investments in privately-held companies
Schedule of Changes in Venture Investments	Changes in venture investments: Six Months Ended (in thousands) 2024 2023 January 1, $ 19,450 $ 13,069 New investments 350 400 Sales of investments — (2,773) Changes in foreign exchange rates (19) 119 Changes in fair value: included in other income, net 1,628 4,475 included in other comprehensive income (loss) (362) (1,908) June 30, $ 21,047 $ 13,382

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
REVENUE (Tables)	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Geographic Revenue	Geographic revenue Three Months Ended Six Months Ended (Dollars in thousands) 2024 2023 2024 2023 U.S. $ 189,214 54 % $ 150,385 50 % $ 370,197 55 % $ 334,904 54 % Other Americas 21,314 6 % 19,505 7 % 43,100 6 % 34,516 6 % United Kingdom (“U.K.”) 38,628 11 % 28,892 10 % 70,745 10 % 71,129 11 % Europe (excluding U.K.), Middle East, and Africa 53,360 15 % 54,353 18 % 115,207 17 % 105,671 17 % Asia-Pacific 48,637 14 % 45,133 15 % 82,051 12 % 77,520 12 % $ 351,153 100 % $ 298,268 100 % $ 681,300 100 % $ 623,740 100 %
Schedule of Revenue Streams	Revenue streams Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Subscription license $ 84,647 $ 41,197 $ 147,985 $ 125,724 Perpetual license 36 1,579 895 1,982 Revenue recognized at a point in time 84,683 42,776 148,880 127,706 Maintenance 80,344 82,042 161,345 161,672 Pega Cloud 134,086 115,063 264,988 222,942 Consulting 52,040 58,387 106,087 111,420 Revenue recognized over time 266,470 255,492 532,420 496,034 Total revenue $ 351,153 $ 298,268 $ 681,300 $ 623,740 Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Pega Cloud $ 134,086 $ 115,063 $ 264,988 $ 222,942 Maintenance 80,344 82,042 161,345 161,672 Subscription services 214,430 197,105 426,333 384,614 Subscription license 84,647 41,197 147,985 125,724 Subscription 299,077 238,302 574,318 510,338 Consulting 52,040 58,387 106,087 111,420 Perpetual license 36 1,579 895 1,982 $ 351,153 $ 298,268 $ 681,300 $ 623,740
Schedule of Remaining Performance Obligations	Expected future revenue from existing non-cancellable contracts: As of June 30, 2024: (Dollars in thousands) Subscription services Subscription license Perpetual license Consulting Total Pega Cloud Maintenance 1 year or less $ 470,379 $ 209,655 $ 23,931 $ 2,696 $ 25,953 $ 732,614 52 % 1-2 years 301,070 63,266 10,078 — 2,469 376,883 27 % 2-3 years 152,839 30,032 2,884 — 2,473 188,228 13 % Greater than 3 years 90,474 17,953 97 — — 108,524 8 % $ 1,014,762 $ 320,906 $ 36,990 $ 2,696 $ 30,895 $ 1,406,249 100 % As of June 30, 2023: (Dollars in thousands) Subscription services Subscription license Perpetual license Consulting Total Pega Cloud Maintenance 1 year or less $ 397,183 $ 214,579 $ 35,616 $ 4,979 $ 37,355 $ 689,712 55 % 1-2 years 238,691 58,551 3,026 2,252 6,772 309,292 24 % 2-3 years 124,616 25,103 6,764 — 1,523 158,006 12 % Greater than 3 years 101,494 7,592 — — — 109,086 9 % $ 861,984 $ 305,825 $ 45,406 $ 7,231 $ 45,650 $ 1,266,096 100 %

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
STOCK-BASED COMPENSATION (Tables)	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Based Compensation Expense	Expense Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Cost of revenue $ 7,092 $ 7,174 $ 13,664 $ 16,087 Selling and marketing 13,564 15,349 27,452 33,009 Research and development 7,825 7,851 15,471 16,911 General and administrative 7,743 5,853 14,418 12,777 $ 36,224 $ 36,227 $ 71,005 $ 78,784 Income tax benefit $ (554) $ (581) $ (865) $ (1,253)
Schedule of Stock Based Compensation Award Granted	Grants Six Months Ended (in thousands) Quantity Total Fair Value Restricted stock units (1) 1,266 $ 78,071 Non-qualified stock options 1,738 $ 44,874 Performance stock options (2) 566 $ 13,921 (1) Includes units issued when employees elect to receive 50% of the employee’s target incentive compensation under the Company’s Corporate Incentive Compensation Plan (the “CICP”) in the form of RSUs instead of cash. (2) Performance stock options allow the holder to purchase a specified number of common stock shares at an exercise price equal to or greater than the shares' fair market value at the grant date. For the performance stock options granted in the six months ended June 30, 2024, 25% can vest on the first anniversary of the grant date, and 75% can vest on the second anniversary of the grant date, based on the achievement of specific performance conditions. The options expire ten years from the grant date.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
INCOME TAXES (Tables)	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate	Effective income tax rate Six Months Ended (Dollars in thousands) 2024 2023 Provision for income taxes $ 5,604 $ 11,850 Effective income tax rate * (21) %

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	6 Months Ended
EARNINGS (LOSS) PER SHARE (Tables)	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of Calculation of Earnings (Loss) Per Share	Calculation of earnings (loss) per share: Three Months Ended Six Months Ended (in thousands, except per share amounts) 2024 2023 2024 2023 Net income (loss) $ 6,613 $ (46,804) $ (5,511) $ (67,578) Weighted-average common shares outstanding 85,157 83,039 84,712 82,823 Earnings (loss) per share, basic $ 0.08 $ (0.56) $ (0.07) $ (0.82) Net income (loss) $ 6,613 $ (46,804) $ (5,511) $ (67,578) Numerator for diluted EPS $ 6,613 $ (46,804) $ (5,511) $ (67,578) Weighted-average effect of dilutive securities: Stock options 2,164 — — — RSUs 1,179 — — — Effect of dilutive securities 3,343 — — — Weighted-average common shares outstanding, assuming dilution (1) (2) (3) 88,500 83,039 84,712 82,823 Earnings (loss) per share, diluted $ 0.07 $ (0.56) $ (0.07) $ (0.82) Outstanding anti-dilutive stock options and RSUs (4) 5 1,354 3,259 1,351 (1) All dilutive securities are excluded when their inclusion would be anti-dilutive. (2) The shares underlying the conversion options in the Company’s Notes are included using the if-converted method, if dilutive in the period. If the outstanding conversion options were fully exercised, the Company would issue approximately 3.7 million shares as of June 30, 2024. (3) The Company’s Capped Call Transactions represent the equivalent of approximately 3.7 million shares of the Company’s common stock (representing the number of shares for which the Notes are convertible) as of June 30, 2024. The Capped Call Transactions are expected to reduce common stock dilution and/or offset any potential cash payments the Company must make, other than for principal and interest, upon conversion of the Notes, with such reduction and/or offset subject to a cap of $196.44. The Capped Call Transactions are excluded from weighted-average common shares outstanding, assuming dilution, in all periods as their effect would be anti-dilutive. (4) Outstanding stock options and RSUs that were anti-dilutive under the treasury stock method in the period were excluded from the computation of diluted earnings (loss) per share. These awards may be dilutive in the future.

MARKETABLE SECURITIES - Schedul

MARKETABLE SECURITIES - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Marketable Securities [Line Items]
Amortized Cost	$ 407,463	$ 193,431
Unrealized Gains	1	233
Unrealized Losses	(645)	(228)
Fair Value	406,819	193,436
US Government Agencies Debt Securities
Marketable Securities [Line Items]
Amortized Cost	12,942	11,471
Unrealized Gains	0	33
Unrealized Losses	(17)	(1)
Fair Value	12,925	11,503
Corporate Debt Securities
Marketable Securities [Line Items]
Amortized Cost	394,521	181,960
Unrealized Gains	1	200
Unrealized Losses	(628)	(227)
Fair Value	$ 393,894	$ 181,933

MARKETABLE SECURITIES - Narrati

MARKETABLE SECURITIES - Narrative (Details)	Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Marketable debt security weighted-average remaining maturity	4 months 24 days

RECEIVABLES, CONTRACT ASSETS,_3

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Schedule of Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Accounts receivable, net	$ 165,723	$ 300,173
Unbilled receivables, net	164,533	237,379
Long-term unbilled receivables, net	81,218	85,402
Total receivables	$ 411,474	$ 622,954

RECEIVABLES, CONTRACT ASSETS,_4

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Schedule of Unbilled Receivables (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Receivables [Abstract]
1 year or less	$ 164,533
1-2 years	58,353
2-5 years	22,865
Total	$ 245,751
Percentage of unbilled receivables, 1 year or less	67%
Percentage of unbilled receivables, 1-2 years	24%
Percentage of unbilled receivables, 2-5 years	9%
Total percentage of unbilled receivables	100%

RECEIVABLES, CONTRACT ASSETS,_5

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE- Schedule of Unbilled Receivables by Contract Effective Date (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Receivables [Abstract]
2024	$ 58,562
2023	130,140
2022	29,241
2021	22,830
2020 and prior	4,978
Unbilled revenue total	$ 245,751
2024	24%
2023	53%
2022	12%
2021	9%
2020 and prior	2%
Total percentage of unbilled revenue	100%

RECEIVABLES, CONTRACT ASSETS,_6

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Schedule of Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Contract assets	$ 15,374	$ 16,238
Long-term contract assets	19,997	20,635
Total contract assets	35,371	36,873
Deferred revenue	352,618	377,845
Long-term deferred revenue	2,443	2,478
Total deferred revenue	355,061	$ 380,323
Revenue recognized during the period that was included in deferred revenue	$ 272,700

DEFERRED COMMISSIONS - Schedule

DEFERRED COMMISSIONS - Schedule of Impairment of Deferred Commissions (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deferred commissions	$ 100,490	$ 114,119

DEFERRED COMMISSIONS - Schedu_2

DEFERRED COMMISSIONS - Schedule of Amortization of Deferred Commissions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Amortization of deferred commissions	$ 14,994	$ 14,750	$ 32,276	$ 29,027

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLES - Schedule of Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Goodwill [Roll Forward]
Beginning balance	$ 81,611	$ 81,399
Currency translation adjustments	(201)	194
Ending balance	$ 81,410	$ 81,593

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLES - Schedule of Intangibles (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Goodwill and Other Intangible Assets [Line Items]
Cost	$ 136,478	$ 136,616
Accumulated Amortization	(131,273)	(129,614)
Net Book Value	5,205	7,002
Client-related
Goodwill and Other Intangible Assets [Line Items]
Cost	63,112	63,117
Accumulated Amortization	(60,714)	(60,035)
Net Book Value	2,398	3,082
Technology
Goodwill and Other Intangible Assets [Line Items]
Cost	68,005	68,138
Accumulated Amortization	(65,198)	(64,218)
Net Book Value	2,807	3,920
Other
Goodwill and Other Intangible Assets [Line Items]
Cost	5,361	5,361
Accumulated Amortization	(5,361)	(5,361)
Net Book Value	$ 0	$ 0
Minimum \| Client-related
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	4 years	4 years
Minimum \| Technology
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	2 years	2 years
Minimum \| Other
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	1 year	1 year
Maximum \| Client-related
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	10 years	10 years
Maximum \| Technology
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	10 years	10 years
Maximum \| Other
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	5 years	5 years

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLES - Schedule of Future Estimated Intangibles Assets Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 1,399
2025	2,605
2026	874
2027	327
Net Book Value	$ 5,205	$ 7,002

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLES - Schedule of Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 789	$ 963	$ 1,753	$ 2,012
Cost of revenue
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	447	621	1,068	1,327
Selling and marketing
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 342	$ 342	$ 685	$ 685

OTHER ASSETS AND LIABILITIES -

OTHER ASSETS AND LIABILITIES - Schedule of Other Assets and Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Other current assets
Income tax receivables	$ 16,060	$ 4,804
Contract assets	15,374	16,238
Insurance receivable	0	1,954
Indirect Tax Receivable	2,702	1,924
Capped call transactions	915	0
Restricted cash	768	0
Other	40,504	43,217
Other current assets	76,323	68,137
Other long-term assets
Deferred commissions	100,490	114,119
Right of use assets	68,293	64,198
Property and equipment	42,190	47,279
Venture investments	21,047	19,450
Contract assets	19,997	20,635
Intangible assets	5,205	7,002
Capped call transactions	0	893
Deferred income taxes	3,666	3,678
Restricted cash	4,006	2,925	$ 1,933
Other	37,355	34,517
Other long-term assets	302,249	314,696
Other current liabilities
Operating lease liabilities	15,254	15,000
Dividends payable	2,561	2,515
Other	2,862	3,828
Other current liabilities	20,677	21,343
Other long-term liabilities
Deferred revenue	2,443	2,478
Income taxes payable	858	859
Other	11,061	10,233
Other long-term liabilities	$ 14,362	$ 13,570

OTHER ASSETS AND LIABILITIES _2

OTHER ASSETS AND LIABILITIES - Schedule of Accrued expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Other Assets and Liabilities [Abstract]
Cloud hosting	$ 15,152	$ 1,358
Outside professional services	9,539	10,419
Marketing and sales program	7,081	2,557
Income and other taxes	3,422	15,428
Employee related	4,966	4,486
Other	4,715	5,693
Accrued expenses	$ 44,875	$ 39,941

LEASES - Schedule of Expense (D

LEASES - Schedule of Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Fixed lease costs	$ 5,271	$ 4,495	$ 9,533	$ 10,261
Short-term lease costs	410	696	953	1,477
Variable lease costs	1,763	2,186	3,372	4,160
Lease, cost	$ 7,444	$ 7,377	$ 13,858	$ 15,898

LEASES - Schedule of Right of U

LEASES - Schedule of Right of Use Asset and Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other long-term assets	Other long-term assets
Right of use assets	$ 68,293	$ 64,198
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Operating lease liabilities	$ 15,254	$ 15,000
Long-term operating lease liabilities	$ 70,202	$ 66,901

LEASES - Schedule of Weighted A

LEASES - Schedule of Weighted Average and Discount Rate (Details)	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Weighted-average remaining lease term	6 years 4 months 24 days	6 years 9 months 18 days
Weighted-average discount rate	4.60%	4%

LEASES - Schedule of Maturities

LEASES - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Leases [Abstract]
Remainder of 2024	$ 7,954
2025	18,784
2026	14,384
2027	13,387
2028	12,813
2029	10,099
Thereafter	21,650
Total lease payments	99,071
Less: imputed interest	(13,615)
Total lease liability	$ 85,456

LEASES - Schedule of Cash Flow

LEASES - Schedule of Cash Flow Lease Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Cash paid for operating leases, net of tenant improvement allowances	$ 9,493	$ 10,540
Right of use assets recognized for new leases and amendments (non-cash)	$ 12,290	$ 1,465

DEBT - Convertible senior notes

DEBT - Convertible senior notes and capped calls (Details)	1 Months Ended	3 Months Ended	6 Months Ended		16 Months Ended
DEBT - Convertible senior notes and capped calls (Details)	Feb. 29, 2020 USD ($) day $ / shares	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 day
Debt Instrument [Line Items]
Gain (loss) on repurchase of convertible debt \| $			$ 0	$ 7,855,000
Redemption percentage			100%
On or After March 1, 2023
Debt Instrument [Line Items]
Redemption threshold trading days					40
Redemption percentage					100%
Convertible senior notes
Debt Instrument [Line Items]
Face amount \| $	$ 600,000,000
Interest rate	0.75%		0.75%	0.75%
Gain (loss) on repurchase of convertible debt \| $		$ 5,100,000		$ 7,900,000
Principal amount repurchased \| $		$ 64,700,000		$ 97,700,000
Initial conversion rate	0.0074045
Initial conversion price (in dollars per share) \| $ / shares	$ 135.05
Average interest rate			1.20%	1.20%
Convertible senior notes \| After the Calendar Quarter Ending on June 30, 2020
Debt Instrument [Line Items]
Threshold percentage of stock price trigger	130%
Threshold trading days	20
Threshold consecutive trading days	30
Convertible senior notes \| Measurement Period
Debt Instrument [Line Items]
Threshold percentage of stock price trigger	98%
Threshold consecutive trading days	5
Threshold consecutive business days	5
Convertible senior notes \| On or After March 1, 2023
Debt Instrument [Line Items]
Threshold percentage of stock price trigger					130%
Threshold trading days					20
Threshold consecutive trading days					30

DEBT - Schedule of Carrying val

DEBT - Schedule of Carrying value of the Notes (Details) - Convertible senior notes - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Principal	$ 502,270	$ 502,270
Unamortized issuance costs	(1,666)	(2,902)
Convertible senior notes, net	$ 500,604	$ 499,368

DEBT - Schedule of Interest Exp

DEBT - Schedule of Interest Expense Related to the Notes (Details) - Convertible senior notes - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Debt Instrument [Line Items]
Interest rate	0.75%			0.75%	0.75%
Contractual interest expense (0.75% coupon)		$ 942	$ 997	$ 1,884	$ 2,122
Amortization of issuance costs		619	647	1,236	1,375
Interest expense		$ 1,561	$ 1,644	$ 3,120	$ 3,497

DEBT - Schedule of Future Payme

DEBT - Schedule of Future Payments (Details) - Convertible senior notes - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Principal
Remainder of 2024	$ 0
2025	502,270
Principal, total due	502,270	$ 502,270
Interest
Remainder of 2024	1,883
2025	1,884
Interest expense, total due	3,767
Total
Remainder of 2024	1,883
2025	504,154
Principal and interest, total due	$ 506,037

DEBT - Capped Call Transactions

DEBT - Capped Call Transactions (Details) shares in Millions, $ in Millions	1 Months Ended	3 Months Ended	6 Months Ended
	Feb. 29, 2020 $ / derivative shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2024 $ / derivative shares
Debt Disclosure [Abstract]
Number of shares issuable upon conversion (in shares)	(4.4)	(0.5)	(0.7)
Proceeds from settlement of capped calls transactions \| $		$ 0.1	$ 0.3
Number of shares issuable upon conversion (in shares)				3.7
Cap price (in dollars per share) \| $ / derivative	196.44			196.44

DEBT - Schedule of Change in Ca

DEBT - Schedule of Change in Capped Call Transactions (Details) - Capped Call Transactions - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 893	$ 2,582
Settlements	0	(341)
Fair value adjustment	22	1,845
Ending balance	$ 915	$ 4,086

DEBT - Credit Facility (Details

DEBT - Credit Facility (Details)	Nov. 30, 2019 USD ($)	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Outstanding letters of credit		$ 27,300,000	$ 27,300,000
Remaining borrowing capacity		$ 0	$ 0
Credit Agreement \| PNC Bank, National Association
Debt Instrument [Line Items]
Maximum consolidated net leverage ratio		3.5
Minimum consolidated coverage ratio		3.5
Line of Credit \| PNC Bank, National Association \| Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit agreement term	5 years
Senior notes	$ 100,000,000
Increase in aggregate commitment amount	$ 200,000,000

RESTRUCTURING - Schedule of Res

RESTRUCTURING - Schedule of Restructuring Activities (Details) - USD ($) $ in Thousands	3 Months Ended					6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring	$ 635			$ 2,167		$ 798	$ 3,628
Office space reduction
Restructuring Cost and Reserve [Line Items]
Restructuring	$ 1,257	$ 1,497			$ 1,241
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring			$ 17,236	$ 1,581		$ (238)	$ 2,387

RESTRUCTURING - Schedule of Acc

RESTRUCTURING - Schedule of Accrued Employee Severance and Related Benefit (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Restructuring Reserve [Roll Forward]
Costs incurred	$ 635		$ 2,167	$ 798	$ 3,628
Employee Severance
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning Balance		$ 3,624		8,095	18,573
Costs incurred		$ 17,236	1,581	(238)	2,387
Cash disbursements				(3,852)	(17,521)
Currency translation adjustments				(169)	185
Restructuring Reserve, Ending Balance	$ 3,836		$ 3,624	$ 3,836	$ 3,624

FAIR VALUE MEASUREMENTS - Sched

FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value Assets
Marketable securities	$ 406,819	$ 193,436
Capped call transactions	915	893
Cash equivalents
Fair Value Assets
Cash equivalents	18,345	54,357
Venture investments
Fair Value Assets
Venture investments	21,047	19,450
Level 1
Fair Value Assets
Marketable securities	0	0
Capped call transactions	0	0
Level 1 \| Cash equivalents
Fair Value Assets
Cash equivalents	18,345	54,357
Level 1 \| Venture investments
Fair Value Assets
Venture investments	0	0
Level 2
Fair Value Assets
Marketable securities	406,819	193,436
Capped call transactions	915	893
Level 2 \| Cash equivalents
Fair Value Assets
Cash equivalents	0	0
Level 2 \| Venture investments
Fair Value Assets
Venture investments	0	0
Level 3
Fair Value Assets
Marketable securities	0	0
Capped call transactions	0	0
Level 3 \| Cash equivalents
Fair Value Assets
Cash equivalents	0	0
Level 3 \| Venture investments
Fair Value Assets
Venture investments	$ 21,047	$ 19,450

FAIR VALUE MEASUREMENTS - Sch_2

FAIR VALUE MEASUREMENTS - Schedule of Changes in Venture Investments (Details) - Privately Held Investment - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 19,450	$ 13,069
New investments	350	400
Sales of investments	0	(2,773)
Changes in foreign exchange rates	(19)	119
Changes in fair value:
included in other income, net	1,628	4,475
included in other comprehensive income (loss)	(362)	(1,908)
Ending balance	$ 21,047	$ 13,382

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Convertible debt fair value	$ 485.3	$ 466.5

REVENUE - Schedule of Geographi

REVENUE - Schedule of Geographic Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 351,153	$ 298,268	$ 681,300	$ 623,740
Percent of total revenue			100%	100%
U.S.
Disaggregation of Revenue [Line Items]
Revenue	189,214	150,385	$ 370,197	$ 334,904
Other Americas
Disaggregation of Revenue [Line Items]
Revenue	21,314	19,505	43,100	34,516
United Kingdom (“U.K.”)
Disaggregation of Revenue [Line Items]
Revenue	38,628	28,892	70,745	71,129
Europe (excluding U.K.), Middle East, and Africa
Disaggregation of Revenue [Line Items]
Revenue	53,360	54,353	115,207	105,671
Asia-Pacific
Disaggregation of Revenue [Line Items]
Revenue	$ 48,637	$ 45,133	$ 82,051	$ 77,520
Total Revenue \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Percent of total revenue	100%	100%
Total Revenue \| U.S. \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Percent of total revenue	54%	50%	55%	54%
Total Revenue \| Other Americas \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Percent of total revenue	6%	7%	6%	6%
Total Revenue \| United Kingdom (“U.K.”) \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Percent of total revenue	11%	10%	10%	11%
Total Revenue \| Europe (excluding U.K.), Middle East, and Africa \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Percent of total revenue	15%	18%	17%	17%
Total Revenue \| Asia-Pacific \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Percent of total revenue	14%	15%	12%	12%

REVENUE - Schedule of Revenue S

REVENUE - Schedule of Revenue Streams (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 351,153	$ 298,268	$ 681,300	$ 623,740
Subscription license
Disaggregation of Revenue [Line Items]
Revenue	84,647	41,197	147,985	125,724
Perpetual license
Disaggregation of Revenue [Line Items]
Revenue	36	1,579	895	1,982
Maintenance
Disaggregation of Revenue [Line Items]
Revenue	80,344	82,042
Pega Cloud
Disaggregation of Revenue [Line Items]
Revenue	134,086	115,063
Consulting
Disaggregation of Revenue [Line Items]
Revenue	52,040	58,387	106,087	111,420
Subscription services
Disaggregation of Revenue [Line Items]
Revenue	214,430	197,105	426,333	384,614
Subscription
Disaggregation of Revenue [Line Items]
Revenue	299,077	238,302	574,318	510,338
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Revenue	84,683	42,776	148,880	127,706
Revenue recognized at a point in time \| Subscription license
Disaggregation of Revenue [Line Items]
Revenue	84,647	41,197	147,985	125,724
Revenue recognized at a point in time \| Perpetual license
Disaggregation of Revenue [Line Items]
Revenue	36	1,579	895	1,982
Revenue recognized at a point in time \| Consulting
Disaggregation of Revenue [Line Items]
Revenue			106,087	111,420
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Revenue	266,470	255,492	532,420	496,034
Revenue recognized over time \| Perpetual license
Disaggregation of Revenue [Line Items]
Revenue			895	1,982
Revenue recognized over time \| Maintenance
Disaggregation of Revenue [Line Items]
Revenue	80,344	82,042	161,345	161,672
Revenue recognized over time \| Pega Cloud
Disaggregation of Revenue [Line Items]
Revenue	134,086	115,063	264,988	222,942
Revenue recognized over time \| Consulting
Disaggregation of Revenue [Line Items]
Revenue	$ 52,040	$ 58,387	$ 106,087	$ 111,420

REVENUE - Schedule of Remaining

REVENUE - Schedule of Remaining Performance Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 1,406,249	$ 1,266,096
Revenue remaining performance obligation (in percent)	100%	100%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation		$ 689,712
Revenue remaining performance obligation (in percent)		55%
Expected timing of satisfaction		1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 732,614	$ 309,292
Revenue remaining performance obligation (in percent)	52%	24%
Expected timing of satisfaction	1 year	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 376,883	$ 158,006
Revenue remaining performance obligation (in percent)	27%	12%
Expected timing of satisfaction	1 year	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 188,228	$ 109,086
Revenue remaining performance obligation (in percent)	13%	9%
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 108,524
Revenue remaining performance obligation (in percent)	8%
Expected timing of satisfaction
Pega Cloud
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 1,014,762	$ 861,984
Pega Cloud \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation		$ 397,183
Expected timing of satisfaction		1 year
Pega Cloud \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 470,379	$ 238,691
Expected timing of satisfaction	1 year	1 year
Pega Cloud \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 301,070	$ 124,616
Expected timing of satisfaction	1 year	1 year
Pega Cloud \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 152,839	$ 101,494
Expected timing of satisfaction	1 year
Pega Cloud \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 90,474
Expected timing of satisfaction
Maintenance
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 320,906	$ 305,825
Maintenance \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation		$ 214,579
Expected timing of satisfaction		1 year
Maintenance \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 209,655	$ 58,551
Expected timing of satisfaction	1 year	1 year
Maintenance \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 63,266	$ 25,103
Expected timing of satisfaction	1 year	1 year
Maintenance \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 30,032	$ 7,592
Expected timing of satisfaction	1 year
Maintenance \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 17,953
Expected timing of satisfaction
Subscription license
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 36,990	$ 45,406
Subscription license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation		$ 35,616
Expected timing of satisfaction		1 year
Subscription license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 23,931	$ 3,026
Expected timing of satisfaction	1 year	1 year
Subscription license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 10,078	$ 6,764
Expected timing of satisfaction	1 year	1 year
Subscription license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 2,884	$ 0
Expected timing of satisfaction	1 year
Subscription license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 97
Expected timing of satisfaction
Perpetual license
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 2,696	$ 7,231
Perpetual license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation		$ 4,979
Expected timing of satisfaction		1 year
Perpetual license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 2,696	$ 2,252
Expected timing of satisfaction	1 year	1 year
Perpetual license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 0	$ 0
Expected timing of satisfaction	1 year	1 year
Perpetual license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 0	$ 0
Expected timing of satisfaction	1 year
Perpetual license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 0
Expected timing of satisfaction
Consulting
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 30,895	$ 45,650
Consulting \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation		$ 37,355
Expected timing of satisfaction		1 year
Consulting \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 25,953	$ 6,772
Expected timing of satisfaction	1 year	1 year
Consulting \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 2,469	$ 1,523
Expected timing of satisfaction	1 year	1 year
Consulting \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 2,473	$ 0
Expected timing of satisfaction	1 year
Consulting \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 0
Expected timing of satisfaction

STOCK-BASED COMPENSATION - Sche

STOCK-BASED COMPENSATION - Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 36,224	$ 36,227	$ 71,005	$ 78,784
Income tax benefit	(554)	(581)	(865)	(1,253)
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	7,092	7,174	13,664	16,087
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	13,564	15,349	27,452	33,009
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	7,825	7,851	15,471	16,911
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 7,743	$ 5,853	$ 14,418	$ 12,777

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($)
Share-Based Payment Arrangement [Abstract]
Unrecognized stock-based compensation expense	$ 149.7
Weighted-average period of recognition of unrecognized stock-based compensation expense	1 year 8 months 12 days

STOCK-BASED COMPENSATION - Sc_2

STOCK-BASED COMPENSATION - Schedule of Stock Based Compensation Award Granted (Details) shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) shares
Restricted stock units
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Restricted stock units (in shares) \| shares	1,266
Total Fair Value \| $	$ 78,071
Restricted stock units \| Corporate Incentive Compensation Plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee’s target incentive compensation percentage	50%
Non-qualified stock options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Non-qualified stock options (in shares) \| shares	1,738
Total Fair Value \| $	$ 44,874
Performance stock options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Restricted stock units (in shares) \| shares	566
Total Fair Value \| $	$ 13,921
Expiration period	10 years
Performance stock options \| First anniversary
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Maximum vesting percentage	25%
Performance stock options \| Second anniversary
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Maximum vesting percentage	75%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 8,642	$ 6,601	$ 5,604	$ 11,850
Effective income tax rate				(21.00%)

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares $ / derivative shares	Mar. 31, 2024 USD ($)	Jun. 30, 2023 USD ($) $ / shares shares	Mar. 31, 2023 USD ($)	Jun. 30, 2024 USD ($) $ / shares $ / derivative shares	Jun. 30, 2023 USD ($) $ / shares shares	Feb. 29, 2020 $ / derivative
Basic
Net income (loss) \| $	$ 6,613	$ (12,124)	$ (46,804)	$ (20,774)	$ (5,511)	$ (67,578)
Weighted-average common shares outstanding	85,157		83,039		84,712	82,823
Earnings (loss) per share, basic (in dollars per share) \| $ / shares	$ 0.08		$ (0.56)		$ (0.07)	$ (0.82)
Diluted
Net income (loss) \| $	$ 6,613	$ (12,124)	$ (46,804)	$ (20,774)	$ (5,511)	$ (67,578)
Numerator for diluted EPS \| $	$ 6,613		$ (46,804)		$ (5,511)	$ (67,578)
Effect of dilutive securities (in shares)	3,343		0		0	0
Weighted-average common shares outstanding, assuming dilution (in shares)	88,500		83,039		84,712	82,823
Earnings (loss) per share, diluted (in dollars per share) \| $ / shares	$ 0.07		$ (0.56)		$ (0.07)	$ (0.82)
Outstanding anti-dilutive stock options and RSUs (in shares)	5		1,354		3,259	1,351
Number of shares issuable upon conversion (in shares)	3,700				3,700
Number of shares issuable upon conversion (in shares)	3,700				3,700
Cap price (in dollars per share) \| $ / derivative	196.44				196.44		196.44
Stock options
Diluted
Share-based payment arrangements (in shares)	2,164		0		0	0
Restricted stock units
Diluted
Share-based payment arrangements (in shares)	1,179		0		0	0

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)				1 Months Ended	3 Months Ended		6 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Mar. 04, 2024	Sep. 15, 2022	May 09, 2022	May 31, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Sep. 29, 2022
Loss Contingencies [Line Items]
Litigation liability									$ 0
Outstanding letters of credit					$ 27,300,000		$ 27,300,000		$ 27,300,000
Litigation aggregate	$ 35,000,000
Litigation settlement, net of recoveries				$ 32,400,000	$ 0	$ 0	$ 32,403,000	$ 0
Expected insurance coverage recovery				$ 2,600,000
Appian Corp. v. Pegasystems Inc. & Youyong Zou
Loss Contingencies [Line Items]
Outstanding letters of credit										$ 25,000,000
Appian Corp. v. Pegasystems Inc. & Youyong Zou \| Judicial Ruling
Loss Contingencies [Line Items]
Loss contingency, damages awarded, value		$ 2,060,479,287
Trade Secret Misappropriation \| Appian Corp. v. Pegasystems Inc. & Youyong Zou
Loss Contingencies [Line Items]
Legal fees, post-judgement interest rate, percentage		6%
Trade Secret Misappropriation \| Appian Corp. v. Pegasystems Inc. & Youyong Zou \| Judicial Ruling
Loss Contingencies [Line Items]
Loss contingency, damages awarded, value			$ 2,036,860,045
Violation of the Virginia Computer Crimes Act \| Appian Corp. v. Pegasystems Inc. & Youyong Zou \| Judicial Ruling
Loss Contingencies [Line Items]
Loss contingency, damages awarded, value			$ 1