Financial Data and Key Metrics Changes - Total Annual Contract Value (ACV) increased by 21% year-over-year, reaching $738 million, up from $611 million in Q2 2019 [51] - Total revenue for the first half of 2020 was $493 million, an increase of 18% from the same period in 2019, driven by a 55% increase in Pega Cloud revenue [56][57] - Non-GAAP net loss was $0.28 per share, compared to a net loss of $0.30 per share a year ago [61] Business Line Data and Key Metrics Changes - Pega Cloud business grew by over 50% year-over-year, with its ACV increasing by 66% from $135 million to $211 million [9][51] - Subscription revenue for the first half of 2020 increased by 38% year-over-year, from $270 million to $373 million [58] - Professional services revenue declined by about 6%, primarily due to reduced reimbursable expenses for travel [58] Market Data and Key Metrics Changes - Approximately 80% of new license bookings in Q2 came from financial services, insurance, healthcare, and government sectors, which are less exposed to pandemic impacts [46] - The backlog increased by 30% year-over-year, from $628 million to $817 million, with Pega Cloud backlog increasing by 26% [55] Company Strategy and Development Direction - The company is focused on digital transformation, which has become increasingly critical for clients during the pandemic [10][30] - Pega is transitioning to a recurring revenue model, with over 90% of software revenue now recurring, which provides more stability during economic disruptions [44][45] - The company plans to invest in go-to-market resources to capture a larger share of client spending on digital transformation [53] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the urgency for digital transformation among clients, which is expected to drive growth [38][39] - The company has a strong cash position with over $0.5 billion in liquidity, allowing it to weather the current economic challenges [10][48] - Management believes that the current environment presents opportunities for growth, particularly in the federal vertical and among existing clients [96][98] Other Important Information - The company successfully pivoted to a nearly 100% remote workforce and has maintained effective operations during this transition [26] - Pega held a virtual event that attracted over 42,000 registrations, significantly higher than previous in-person events [27][29] Q&A Session Summary Question: Update on hiring plans for new sales reps and sales coverage - Management noted that the increased sales force has provided greater liability and has been effective during the pandemic, with successful onboarding in a remote environment [68][69] Question: Insights on project delays or pipeline growth - Management indicated that many clients are prioritizing critical digital transformation projects, and there is no significant evidence of sacrificing the second half for the first half [70][71] Question: Challenges with remote professional services - It was clarified that while some clients may struggle with remote work, it is rare and not significantly impacting overall operations [72][74] Question: Trends in product use cases and digital transformation - Management observed that organizations are recognizing previously unaddressed problems, leading to more strategic conversations about digital transformation [76][78] Question: Acceleration of backlog growth - The increase in backlog growth was attributed to hiring more account executives and improved client engagement, resulting in a strong Q2 performance [79][81] Question: Current pipeline status and top-of-funnel performance - The pipeline remains strong, with significant opportunities primarily with existing large customers [84] Question: Incumbency as a differentiator in capturing new customers - Incumbency has been beneficial, especially in large organizations, and there is still significant upside potential for growth [86][88] Question: Federal vertical growth and competitive landscape - The federal vertical has shown strong growth, with opportunities for further expansion and partnerships [92][95] Question: Opportunities to accelerate ACB growth - Management highlighted the potential for growth through existing client relationships and the federal vertical, which is still underpenetrated [97][98] Question: Trends in Pega Cloud deal sizes and commitments - The average deal size for Pega Cloud has remained consistent, indicating a balanced approach to new and existing customer commitments [102][103]

Financial Data and Key Metrics Changes - Total Annual Contract Value (ACV) increased by 21% year-over-year, reaching $711 million, up from $588 million in Q1 2019 [40] - Pega Cloud ACV grew by 43%, from $127 million to $182 million [40] - Total revenue for Q1 2020 was $266 million, a 25% increase from $213 million in Q1 2019, driven by a 57% increase in cloud revenue [42] - Non-GAAP net income was $0.05 per share compared to a net loss of $0.12 per share a year ago [43] - Total cash and marketable securities at the end of Q1 2020 was $538 million [44] Business Line Data and Key Metrics Changes - Approximately 95% of new client commitments were either Pega or client cloud, with about 5% being perpetual licenses [42] - Pega Cloud backlog increased by 18% from $351 million to $414 million [41] - Total backlog increased by 19% from $633 million to $754 million [41] Market Data and Key Metrics Changes - Core verticals such as financial services, insurance, healthcare, telecommunications, and government are less exposed to the pandemic's short-term impacts compared to industries like airlines and retail [37] - The company has a strong customer base consisting of large enterprises and federal government clients, which helps mitigate exposure to economic downturns [37] Company Strategy and Development Direction - The company is focused on a shift to a recurring revenue model, which has increased from about 50% to 75% [35] - The introduction of new industry-specific solutions to help clients adapt to COVID-19 while supporting long-term business transformation initiatives [12] - The company is positioning its core architecture for future needs through Project Phoenix, anticipating increased demand for digital transformation solutions [25][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the pandemic's impact but remains confident in the company's resilience and ability to navigate challenges [32][36] - There is an expectation for increased demand for intelligent automation and digital transformation solutions in a post-COVID-19 world [47] - The company is monitoring client spending priorities and is prepared to offer flexibility in payment terms [49] Other Important Information - The company announced the appointment of Hayden Stafford as President of Global Client Engagement, effective June 1, 2020 [21] - The first virtual customer engagement summit had over 4,700 registered participants, indicating strong interest in the company's offerings [23] Q&A Session Summary Question: Thoughts on ACV growth despite potential booking declines - Management indicated that while there may be short-term impacts on professional services, the recurring revenue model provides insulation against immediate revenue declines [60][62] Question: Impact of bookings on ACV growth - Management stated that even with a reduction in bookings, ACV could still grow, but significant reductions would hinder achieving the long-term target of 20% growth [65] Question: Customer requests for extended payment terms - Management noted that while some customers may request delayed payment terms, it is not widespread among their traditional clients [71] Question: Pipeline generation and deal delays - Management reported a significant increase in new pipeline generation year-over-year, despite some deals being delayed [85] Question: Key initiatives for new leadership - The new President is expected to accelerate the company's go-to-market strategy and leverage his experience in growing businesses [88]

Pegasystems Inc. (NASDAQ:PEGA) Q4 2019 Earnings Conference Call February 12, 2020 5:00 PM ET Company Participants Kenneth Stillwell - SVP, CFO & Chief Administrative Officer Alan Trefler - Founder & CEO Conference Call Participants Rishi Jaluria - D.A. Davidson Steve Koenig - Wedbush Securities Yun Kim - Rosenblatt Securities Mark Schappel - Benchmark Steve Enders - KeyBanc Operator Good day, everyone and welcome to the Pegasystems' Fourth Quarter 2019 Earnings Results Conference Call. Today's call is being ...

Financial Data and Key Metrics Changes - Total Annual Contract Value (ACV) reached $634 million, an increase of $106 million or 20% year-over-year [27] - Pega Cloud ACV grew by 51% during the same period [27] - Revenue for the first three quarters of 2019 totaled $635 million, effectively flat compared to the same period in 2018 [32] - Pega Cloud revenue increased by 63% to $95 million, while maintenance revenue grew by 6% to $207 million [34] Business Line Data and Key Metrics Changes - Consulting revenue decreased by approximately 15% to $167 million, attributed to a strategic shift towards partners for implementation efforts [35] - Pega Cloud backlog increased by $100 million to $363 million, a 38% increase year-over-year [29] - Total Remaining Performance Obligation (RPO) rose by $86 million to $609 million, a 17% increase compared to the previous year [29] Market Data and Key Metrics Changes - The government sector is experiencing significant growth, with Pega winning new business in various government departments [15][18] - There is a notable increase in demand for digital transformation solutions, particularly in the public sector [39] Company Strategy and Development Direction - The company is focused on transitioning to a recurring revenue model, with 57% of bookings coming from Pega Cloud [28] - The strategy includes increasing sales capacity to better penetrate target accounts, with early returns showing healthy pipeline growth [25] - The company aims to establish a repeatable approach to address focused micro journeys for clients [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market opportunity and the company's capabilities to help clients succeed [23] - The company is navigating disruptions such as Brexit and trade tariffs, with clients seeking adaptable solutions [6] - Management anticipates that the fourth quarter will be the largest quarter, consistent with historical trends [39] Other Important Information - The company returned approximately $62 million to shareholders, including $7 million in dividends and $55 million in share buybacks [38] - Employee count increased by approximately 13% year-over-year, with more than half of the growth in the go-to-market organization [38] Q&A Session Summary Question: Spending growth and targets - Management indicated that go-to-market investment is on pace with initial targets, with increased investment in Pega Cloud due to higher-than-expected growth [43] Question: Project Phoenix update - Management expressed enthusiasm about Project Phoenix, highlighting positive feedback from clients and the integration of multi-tenancy capabilities [49][50] Question: Changes in customer buying behavior - Management noted a resurgence in interest in the MIA region and emphasized ongoing recruitment efforts to enhance sales coverage [58][60] Question: Sales strategy in the public sector - Management highlighted the importance of partnerships in the public sector and noted an acceleration in growth within this sector [65]

ACV Growth - Total ACV grew by $105 million in constant currency[18], reaching $613 million as of June 30, 2019, a 21% increase[19] compared to $508 million on June 30, 2018[19] - License and Cloud ACV grew by 35%[19], while Maintenance ACV grew by 7%[19] - Pega Cloud Remaining Performance Obligation (RPO)/Backlog increased by 69%[29], or $148 million, from $214 million on June 30, 2018 to $362 million on June 30, 2019[29] Cloud Adoption - Pega Cloud ACV grew by 66%[26], reaching $136 million as of June 30, 2019[26] - Client Cloud ACV grew by 12%[26], reaching $477 million as of June 30, 2019[26] Financial Performance - Total revenue was $2056 million in Q2 2019[40] - Free cash flow was $(171) million in Q2 2019[38]

Pegasystems Inc. (NASDAQ:PEGA) Q2 2019 Earnings Conference Call August 7, 2019 5:00 PM ET Company Participants Alan Trefler - Founder and Chief Executive Officer Ken Stillwell - Chief Financial Officer, Chief Administrative Officer and Senior Vice President Conference Call Participants Rishi Jaluria - D.A. Davidson Austin Williams - Wedbush Securities Operator Good day and welcome to the Pegasystems Second Quarter 2019 Earnings Conference Call. Today's conference is being recorded. At this time, I would lik ...

EXHIBIT 99.1 Pega Cloud Soars in First Quarter 2019 • Pega Cloud ACV of $129 million, up 76% • Pega and Client Cloud ACV of $591 million, up 20% powered by Pega Cloud Choice™ • Pega Cloud revenue up 78% CAMBRIDGE, Mass. — May 7, 2019 — Pegasystems Inc. (NASDAQ: PEGA), the software company empowering digital transformation at the world's leading enterprises, released its financial results for the first quarter of 2019. "We're off to a solid start for 2019," said Alan Trefler, founder and CEO, Pegasystems. "W ...