PEGA(US:PEGA)2025-12-11 20:02Summary of Pegasystems FY Conference Call (December 11, 2025) Company Overview - Company: Pegasystems (NasdaqGS: PEGA) - Industry: Software and Technology, focusing on AI and business process automation Key Points and Arguments Technological Landscape - The current era of Generative AI (Gen AI) is compared to previous technological disruptions, highlighting excitement and confusion in the marketplace [3][4] - Enterprises are seeking clarity on how Gen AI impacts profitability and customer connections [3] Competitive Landscape - The emergence of new competitors is acknowledged, but the focus is on the unique capabilities of Pegasystems, particularly in deterministic workflows [4][6] - Pegasystems integrates large language models into its platform, reducing barriers to entry and accelerating sales conversations [6] Blueprint Offering - The Blueprint offering was developed to streamline the sales process by allowing clients to visualize their future technology state quickly [9][39] - Continuous updates to Blueprint enhance its capabilities, including the ability to design business rules and integrate agentic capabilities for app modernization [10][28] Application Modernization - There is a growing urgency for enterprises to modernize applications, especially those built on legacy systems like COBOL [27][30] - Pegasystems collaborates with AWS to utilize tools like AWS Transform for documenting legacy code, facilitating modernization [28][30] Customer Service Transformation - Customer service is viewed as a collection of workflows, and Blueprint is used to create these workflows efficiently [50] - There is a trend towards self-service channels, with Blueprint enabling rapid deployment of self-service workflows [51][52] Business Value and Efficiency - The focus is on delivering business value through technology, emphasizing the importance of deterministic processes alongside agentic capabilities [13][14] - Pegasystems aims to improve the efficiency of business processes while ensuring compliance with regulatory obligations [14][17] Market Position and Future Outlook - Pegasystems is positioned as a partner in business transformation, not just IT modernization, unlocking value for clients and consulting opportunities for partners [32] - The company is experiencing increased momentum and enthusiasm internally, attributed to the success of Blueprint and its impact on client engagements [57] Additional Important Insights - The integration of agents into workflows is seen as a way to enhance efficiency and customer experience [12][56] - The company is adapting its go-to-market strategy to focus on business outcomes rather than technical complexities [39][43] - Pegasystems supports both Pega Cloud and client cloud environments, ensuring flexibility for clients [47] This summary encapsulates the key discussions and insights from the Pegasystems FY Conference Call, highlighting the company's strategic direction, technological advancements, and market positioning.