Pegasystems (PEGA) 10-Q 7 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 01, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	PEGA
Entity Registrant Name	PEGASYSTEMS INC.
Entity Central Index Key	0001013857
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		78,908,093
Entity Emerging Growth Company	false
Entity Small Business	false

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 110,367	$ 114,422
Marketable securities	91,804	93,001
Total cash, cash equivalents, and marketable securities	202,171	207,423
Accounts receivable	135,352	180,872
Unbilled receivables	161,480	172,656
Other current assets	63,731	49,684
Total current assets	562,734	610,635
Long-term unbilled receivables	130,494	151,237
Goodwill	72,898	72,858
Other long-term assets	190,433	147,823
Total assets	956,559	982,553
Current liabilities:
Accounts payable	11,559	16,487
Accrued expenses	40,947	45,506
Accrued compensation and related expenses	56,349	84,671
Deferred revenue	180,845	185,145
Other current liabilities	12,447	0
Total current liabilities	302,147	331,809
Operating lease liabilities	45,325	0
Deferred income tax liabilities	8,319	6,939
Other long-term liabilities	12,339	22,274
Total liabilities	368,130	361,022
Stockholders’ equity:
Preferred stock, 1,000 shares authorized; none issued	0	0
Common stock, 200,000 shares authorized; 78,896 and 78,526 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively	789	785
Additional paid-in capital	119,182	123,205
Retained earnings	479,779	510,863
Accumulated other comprehensive loss	(11,321)	(13,322)
Total stockholders’ equity	588,429	621,531
Total liabilities and stockholders’ equity	$ 956,559	$ 982,553

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	78,896,000	78,526,000
Common stock, shares outstanding (in shares)	78,896,000	78,526,000

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue
Total revenue	$ 212,546	$ 235,182
Cost of revenue
Total cost of revenue	74,437	75,614
Gross profit	138,109	159,568
Operating expenses
Selling and marketing	108,865	88,383
Research and development	50,596	46,785
General and administrative	12,676	16,464
Total operating expenses	172,137	151,632
(Loss) income from operations	(34,028)	7,936
Foreign currency transaction loss	(3,712)	(1,085)
Interest income, net	723	764
Other income, net	0	363
(Loss) income before benefit from income taxes	(37,017)	7,978
Benefit from income taxes	(8,300)	(4,222)
Net (loss) income	$ (28,717)	$ 12,200
(Loss) earnings per share
Basic (in dollars per share)	$ (0.37)	$ 0.16
Diluted (in dollars per share)	$ (0.37)	$ 0.15
Weighted-average number of common shares outstanding
Basic (in shares)	78,584	78,236
Diluted (in shares)	78,584	83,102
Software license
Revenue
Total revenue	$ 63,264	$ 87,773
Cost of revenue
Total cost of revenue	1,378	1,255
Maintenance
Revenue
Total revenue	67,706	64,525
Cost of revenue
Total cost of revenue	6,335	6,082
Services
Revenue
Total revenue	81,576	82,884
Cost of revenue
Total cost of revenue	$ 66,724	$ 68,277

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (28,717)	$ 12,200
Other comprehensive income, net of tax
Unrealized gain (loss) on available-for-sale marketable securities, net of tax	374	(188)
Foreign currency translation adjustments	1,627	4,450
Total other comprehensive income, net of tax	2,001	4,262
Comprehensive (loss) income	$ (26,716)	$ 16,462

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income
Balance, beginning of period (in shares) at Dec. 31, 2017		78,081
Balance, beginning of period at Dec. 31, 2017	$ 655,870	$ 781	$ 152,097	$ 509,697	$ (6,705)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock (in shares)		(101)
Repurchase of common stock	(5,689)	$ (1)	(5,688)
Issuance of common stock for share-based compensation plans (in shares)		566
Issuance of common stock for share-based compensation plans	(15,551)	$ 5	(15,556)
Stock-based compensation	15,109		15,109
Cash dividends declared ($0.12 per share)	(2,355)			(2,355)
Other comprehensive income	4,262				4,262
Net (loss) income	12,200			12,200
Balance, end of period (in shares) at Mar. 31, 2018		78,546
Balance, end of period at Mar. 31, 2018	$ 663,846	$ 785	145,962	519,542	(2,443)
Balance, beginning of period (in shares) at Dec. 31, 2018	78,526	78,526
Balance, beginning of period at Dec. 31, 2018	$ 621,531	$ 785	123,205	510,863	(13,322)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock (in shares)		(144)
Repurchase of common stock	(7,587)	$ (1)	(7,586)
Issuance of common stock for share-based compensation plans (in shares)		514
Issuance of common stock for share-based compensation plans	(14,838)	$ 5	(14,843)
Stock-based compensation	18,406		18,406
Cash dividends declared ($0.12 per share)	(2,367)			(2,367)
Other comprehensive income	2,001				2,001
Net (loss) income	$ (28,717)			(28,717)
Balance, end of period (in shares) at Mar. 31, 2019	78,896	78,896
Balance, end of period at Mar. 31, 2019	$ 588,429	$ 789	$ 119,182	$ 479,779	$ (11,321)

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]
Dividend declared (in dollars per share)	$ 0.12	$ 0.12

UNAUDITED CONDENSED CONSOLIDA_7

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities:
Net (loss) income	$ (28,717)	$ 12,200
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Stock-based compensation	18,350	15,109
Amortization and depreciation	18,774	10,322
Foreign currency transaction loss	3,712	1,085
Other non-cash	1,471	1,137
Change in operating assets and liabilities, net	9,113	15,802
Cash provided by operating activities	22,703	55,655
Investing activities:
Purchases of investments	(7,224)	(35,204)
Proceeds from maturities and called investments	8,548	5,995
Other	(2,790)	(2,069)
Cash used in investing activities	(1,466)	(31,278)
Financing activities:
Dividend payments to shareholders	(2,363)	(2,344)
Common stock repurchases	(23,224)	(20,708)
Cash used in financing activities	(25,587)	(23,052)
Effect of exchange rate changes on cash and cash equivalents	295	2,186
Net (decrease) increase in cash and cash equivalents	(4,055)	3,511
Cash and cash equivalents, beginning of period	114,422	162,279
Cash and cash equivalents, end of period	$ 110,367	$ 165,790

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
BASIS OF PRESENTATION	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 and footnotes 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, 2018 . 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. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2019 .

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS	NEW ACCOUNTING PRONOUNCEMENTS Financial instruments In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires measurement and recognition of expected credit losses for financial assets measured at amortized cost, including accounts receivable, upon initial recognition of that financial asset using a forward-looking expected loss model, rather than an incurred loss model. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses when the fair value is below the amortized cost of the asset, removing the concept of “other-than-temporary” impairments. The effective date for the Company will be January 1, 2020, with early adoption permitted. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements and related disclosures. Leases On January 1, 2019, the Company adopted Accounting Standards Codifications 842 “Leases” (“ASC 842”) using the modified retrospective method, reflecting any cumulative effect as an adjustment to equity. Results for reporting periods beginning on or after January 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 840 “Leases”. The Company elected the permitted practical expedients to not reassess the following related to leases that commenced before the effective date of ASC 842: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. Upon adoption, the Company recorded right of use assets of $41.8 million and lease liabilities of $54.2 million . The difference between the value of the right of use assets and lease liabilities is due to the reclassification of existing deferred rent, prepaid rent, and unamortized lease incentives as of January 1, 2019. See Note 9. “Leases” for additional information.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	3 Months Ended
	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	MARKETABLE SECURITIES March 31, 2019 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 42,693 $ 86 $ (20 ) $ 42,759 Corporate bonds 48,966 142 (63 ) 49,045 $ 91,659 $ 228 $ (83 ) $ 91,804 December 31, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 44,802 $ 13 $ (110 ) $ 44,705 Corporate bonds 48,499 23 (226 ) 48,296 $ 93,301 $ 36 $ (336 ) $ 93,001 As of March 31, 2019 , the Company did not hold any investments with unrealized losses that are considered to be other-than-temporary. As of March 31, 2019 , maturities of marketable securities ranged from April 2019 to August 2022 , with a weighted-average remaining maturity of approximately 1.4 years .

RECEIVABLES, CONTRACT ASSETS, A

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE	RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE Receivables (in thousands) March 31, 2019 December 31, 2018 Accounts receivable $ 135,352 $ 180,872 Unbilled receivables 161,480 172,656 Long-term unbilled receivables 130,494 151,237 $ 427,326 $ 504,765 Unbilled receivables are client committed amounts for which revenue recognition precedes billing, and billing is solely subject to the passage of time. As of March 31, 2019 and December 31, 2018 , the allowance for doubtful accounts was not material. Unbilled receivables are expected to be billed in the future as follows : (Dollars in thousands) March 31, 2019 1 year or less $ 161,480 55 % 1-2 years 86,496 30 % 2-5 years 43,998 15 % $ 291,974 100 % Contract assets and deferred revenue (in thousands) March 31, 2019 December 31, 2018 Contract assets (1) $ 3,380 $ 3,711 Long-term contract assets (2) 1,818 2,543 $ 5,198 $ 6,254 Deferred revenue $ 180,845 $ 185,145 Long-term deferred revenue (3) 5,866 5,344 $ 186,711 $ 190,489 (1) Included in other current assets. (2) Included in other long-term assets. (3) Included in other long-term liabilities. Contract assets are amounts under client contracts where revenue recognized exceeds the amount billed to the client and the right to payment is subject to conditions other than the passage of time, such as the completion of a related performance obligation. Deferred revenue consists of billings and payments received in advance of revenue recognition. Contract assets and deferred revenue are netted at the contract level for each reporting period. The change in deferred revenue in the three months ended March 31, 2019 was primarily due to $89.4 million of revenue recognized, excluding the impact of netting contract assets and deferred revenue at the contract level, during the period that was included in deferred revenue at December 31, 2018 , partially offset by new billings in advance of revenue recognition.

DEFERRED CONTRACT COSTS

DEFERRED CONTRACT COSTS	3 Months Ended
	Mar. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
DEFERRED CONTRACT COSTS	DEFERRED CONTRACT COSTS The Company recognizes an asset for the incremental costs of obtaining a client contract, which primarily relate to sales commissions, if the Company expects to benefit from those costs for more than one year. Deferred costs are amortized on a straight-line basis over the benefit period, which is on average 5 years . (in thousands) March 31, 2019 December 31, 2018 Deferred contract costs (1) $ 64,869 $ 64,367 (1) Included in other long-term assets. Three Months Ended (in thousands) 2019 2018 Amortization of deferred contract costs (1) $ 8,301 $ 3,789 (1) Included in selling and marketing expenses .

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The change in the carrying amount of goodwill was: (in thousands) Three Months Ended 2019 Balance as of January 1, $ 72,858 Currency translation adjustments 40 Balance as of March 31, $ 72,898 Intangibles Intangible assets are recorded at cost and amortized using the straight-line method over their estimated useful lives as follows: March 31, 2019 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 4-10 years $ 63,136 $ (52,839 ) $ 10,297 Technology 2-10 years 59,742 (51,730 ) 8,012 Other 1 - 5 years 5,361 (5,361 ) — $ 128,239 $ (109,930 ) $ 18,309 (1) Included in other long-term assets. December 31, 2018 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value (1) Client-related intangibles 4-10 years $ 63,115 $ (51,224 ) $ 11,891 Technology 2-10 years 59,742 (50,398 ) 9,344 Other 1 - 5 years 5,361 (5,361 ) — $ 128,218 $ (106,983 ) $ 21,235 (1) Included in other long-term assets. Amortization of intangible assets was: (in thousands) Three Months Ended 2019 2018 Cost of revenue $ 1,332 $ 1,232 Selling and marketing 1,603 1,605 $ 2,935 $ 2,837

ACCRUED EXPENSES

ACCRUED EXPENSES	3 Months Ended
	Mar. 31, 2019
Payables and Accruals [Abstract]
ACCRUED EXPENSES	ACCRUED EXPENSES (in thousands) March 31, 2019 December 31, 2018 Outside professional services expenses $ 8,815 $ 10,367 Income and other taxes 7,954 10,387 Marketing and sales program expenses 8,318 5,860 Dividends payable 2,367 2,363 Employee-related expenses 5,432 3,536 Other 8,061 12,993 $ 40,947 $ 45,506

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis The Company records its cash equivalents, marketable securities, and investments in privately-held companies 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 on which there is 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 to minimize the use of unobservable inputs when determining fair value. The Company’s cash equivalents are composed of money market funds and time deposits, which are classified within Level 1 and Level 2, respectively, in the fair value hierarchy. The Company’s marketable securities, which are classified within Level 2 of the fair value hierarchy are valued based on a market approach using quoted prices, when available, or matrix pricing compiled by third party pricing vendors, using observable market inputs such as interest rates, yield curves, and credit risk. The Company’s investments in privately-held companies are classified within Level 3 of the fair value hierarchy. If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. There were no transfers between levels during the three months ended March 31, 2019 . The Company’s assets and liabilities measured at fair value on a recurring basis were: March 31, 2019 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents $ 12,401 $ 10,062 $ — $ 22,463 Marketable securities: Municipal bonds $ — $ 42,759 $ — $ 42,759 Corporate bonds — 49,045 — 49,045 Total marketable securities $ — $ 91,804 $ — $ 91,804 Investments in privately-held companies (1) $ — $ — $ 3,390 $ 3,390 (1) Included in other long-term assets. December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents $ 10,155 $ 10,000 $ — $ 20,155 Marketable securities: Municipal bonds $ — $ 44,705 $ — $ 44,705 Corporate bonds — 48,296 — 48,296 Total marketable securities $ — $ 93,001 $ — $ 93,001 Investments in privately-held companies (1) $ — $ — $ 3,390 $ 3,390 (1) Included in other long-term assets. For certain other financial instruments, including accounts receivable and accounts payable, the carrying value approximates fair value due to the relatively short maturity of these items.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
LEASES	LEASES The Company’s leases are primarily for office space used in the ordinary course of business. Accounting policy All the Company’s leases are operating leases. The Company accounts for a contract as a lease when it has the right to control the asset for a period of time while obtaining substantially all of the asset’s economic benefits. The Company determines the initial classification and measurement of its operating right of use assets and lease liabilities at the lease commencement date and thereafter if modified. Fixed lease costs are recognized on a straight-line basis over the term of the lease. Variable lease costs are recognized in the period in which the obligation for those payments is incurred. The Company combines lease and non-lease components in the determination of lease costs for its office space leases. The lease liability includes lease payments related to options to extend or renew the lease term, if the Company is reasonably certain it will exercise those options. The Company’s leases do not contain any material residual value guarantees or restrictive covenants. Expense Three Months Ended (in thousands) 2019 Operating lease costs $ 4,300 Variable lease costs (1) 1,321 $ 5,621 (1) Lease costs that are not fixed at lease commencement. Right of use assets and lease liabilities (in thousands) March 31, 2019 Right of use assets (1) $ 46,464 Lease liabilities (2) $ 12,447 Long-term lease liabilities $ 45,325 (1) An asset that represents the Company’s right to use the leased asset during the lease term. Included in other long-term assets. (2) Included in other current liabilities. The weighted-average remaining lease term and discount rate for the Company’s leases were: March 31, 2019 Weighted-average remaining lease term 4.3 years Weighted-average discount rate (1) 5.7 % (1) The rate implicit in the lease is not readily determinable in most of the Company’s leases, and 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 at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease. Maturities of lease liabilities were: (in thousands) March 31, 2019 Remainder of 2019 $ 11,324 2020 15,784 2021 13,764 2022 12,761 2023 11,604 Total lease payments 65,237 Less: imputed interest (1) (7,465 ) $ 57,772 (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 as a result of a lease reassessment event. As of December 31, 2018 , the Company’s future minimum rental payments required under operating leases with noncancellable terms in excess of one year as determined prior to the adoption of ASC 842 were: (in thousands) Operating Leases (1) 2019 $ 15,993 2020 14,807 2021 13,262 2022 12,279 2023 11,084 $ 67,425 (1) Operating leases include future minimum rent payments, net of estimated sublease income for facilities that the Company has vacated pursuant to its restructuring activities. Cash flow information Three Months Ended (in thousands) 2019 Cash paid for leases 5,197 Right of use assets recognized for new leases (non-cash) 8,034

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Geographic revenue Three Months Ended (Dollars in thousands) 2019 2018 U.S. $ 103,991 48 % $ 113,985 48 % Other Americas 28,829 14 % 17,715 8 % United Kingdom (“U.K.”) 24,549 12 % 26,094 11 % Europe (excluding U.K.), Middle East, and Africa 34,186 16 % 31,826 14 % Asia-Pacific 20,991 10 % 45,562 19 % $ 212,546 100 % $ 235,182 100 % Revenue streams Three Months Ended (in thousands) 2019 2018 Perpetual license $ 14,950 $ 23,078 Term license 48,314 64,695 Revenue recognized at a point in time 63,264 87,773 Maintenance 67,706 64,525 Cloud 27,758 15,582 Consulting 53,818 67,302 Revenue recognized over time 149,282 147,409 $ 212,546 $ 235,182 (in thousands) Three Months Ended 2019 2018 Term license $ 48,314 $ 64,695 Cloud 27,758 15,582 Maintenance 67,706 64,525 Subscription (1) 143,778 144,802 Perpetual license 14,950 23,078 Consulting 53,818 67,302 $ 212,546 $ 235,182 (1) Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal. Remaining performance obligations Revenue recognition timing on existing contracts: March 31, 2019 (Dollars in thousands) Perpetual license Term License Maintenance Cloud Consulting Total 1 year or less $ 10,263 $ 44,404 $ 187,324 $ 115,548 $ 13,251 $ 370,790 58 % 1-2 years 998 4,274 9,350 91,539 1,363 107,524 17 % 2-3 years 2,180 756 4,438 71,509 473 79,356 13 % Greater than 3 years — 135 2,008 72,742 27 74,912 12 % $ 13,441 $ 49,569 $ 203,120 $ 351,338 $ 15,114 $ 632,582 100 % March 31, 2018 (Dollars in thousands) Perpetual license Term License Maintenance Cloud Consulting Total 1 year or less $ 33,859 $ 21,087 $ 156,702 $ 47,764 $ 9,403 $ 268,815 59 % 1-2 years 14,106 7,877 21,381 52,849 1,098 97,311 21 % 2-3 years 1,204 5,634 4,924 37,844 — 49,606 11 % Greater than 3 years 382 853 1,825 40,478 — 43,538 9 % $ 49,551 $ 35,451 $ 184,832 $ 178,935 $ 10,501 $ 459,270 100 % The above amounts include contracts that have an original expected duration of one year or less.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Expense Three Months Ended (in thousands) 2019 2018 Cost of revenues $ 4,519 $ 3,701 Selling and marketing 7,374 4,658 Research and development 4,560 3,637 General and administrative 1,897 3,113 $ 18,350 $ 15,109 Income tax benefit $ (3,740 ) $ (3,141 ) The Company recognizes stock-based compensation using the accelerated recognition method, treating each vesting tranche as if it were an individual grant. As of March 31, 2019 , the Company had $114.1 million of unrecognized stock-based compensation expense, net of estimated forfeitures, related to all unvested restricted stock units (“RSUs”) and stock options. These amounts are expected to be recognized over a weighted-average period of 2.3 years. Grants The Company granted the following stock-based compensation awards: Three Months Ended 2019 (in thousands) Shares Total Fair Value RSUs 839 $ 53,184 Non-qualified stock options 1,770 $ 33,344 RSU vestings and stock option exercises During the three months ended March 31, 2019 , 0.5 million shares of common stock were issued due to stock option exercises and RSU vestings under the Company’s stock-based compensation plans.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Effective income tax rate Three Months Ended (Dollars in thousands) 2019 2018 Benefit from income taxes $ (8,300 ) $ (4,222 ) Effective income tax rate 22 % (53 )% During the three months ended March 31, 2019 , the Company’s effective income tax rate changed primarily due to the Global Intangible Low-Taxed Income (“GILTI”) and Base Erosion and Anti-Abuse Tax (“BEAT”) provisions of the Tax Reform Act. The Company’s effective income tax rate was also affected by excess tax benefits from stock-based compensation, an increase in U.S. research and development tax credits, and a decrease in uncertain tax positions as a result of the lapse of the statute of limitations on certain foreign reserves.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period, plus the dilutive effect of outstanding stock options and RSUs, using the treasury stock method. In periods of loss, all stock options and RSUs are excluded, as their inclusion would be anti-dilutive. The calculation of the basic and diluted earnings per share was: Three Months Ended (in thousands, except per share amounts) 2019 2018 Basic Net (loss) income $ (28,717 ) $ 12,200 Weighted-average common shares outstanding 78,584 78,236 (Loss) earnings per share, basic $ (0.37 ) $ 0.16 Diluted Net (loss) income $ (28,717 ) $ 12,200 Weighted-average effect of dilutive securities: Stock options — 3,119 RSUs — 1,747 Effect of dilutive securities — 4,866 Weighted-average common shares outstanding, assuming dilution 78,584 83,102 (Loss) earnings per share, diluted $ (0.37 ) $ 0.15 Outstanding anti-dilutive stock options and RSUs (1) 5,563 397 (1) Certain outstanding stock options and RSUs were excluded from the computation of diluted earnings per share because they were anti-dilutive in the period presented. These awards may be dilutive in the future.

NEW ACCOUNTING PRONOUNCEMENTS (

NEW ACCOUNTING PRONOUNCEMENTS (Policies)	3 Months Ended
	Mar. 31, 2019
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 and footnotes 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, 2018 . 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.
New Accounting Pronouncements	In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires measurement and recognition of expected credit losses for financial assets measured at amortized cost, including accounts receivable, upon initial recognition of that financial asset using a forward-looking expected loss model, rather than an incurred loss model. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses when the fair value is below the amortized cost of the asset, removing the concept of “other-than-temporary” impairments. The effective date for the Company will be January 1, 2020, with early adoption permitted. The Company is currently evaluating the effect this ASU will have on its consolidated financial statements and related disclosures. Leases On January 1, 2019, the Company adopted Accounting Standards Codifications 842 “Leases” (“ASC 842”) using the modified retrospective method, reflecting any cumulative effect as an adjustment to equity. Results for reporting periods beginning on or after January 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 840 “Leases”. The Company elected the permitted practical expedients to not reassess the following related to leases that commenced before the effective date of ASC 842: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. Upon adoption, the Company recorded right of use assets of $41.8 million and lease liabilities of $54.2 million . The difference between the value of the right of use assets and lease liabilities is due to the reclassification of existing deferred rent, prepaid rent, and unamortized lease incentives as of January 1, 2019. See Note 9. “Leases” for additional information.
Deferred Contract Cost	Deferred costs are amortized on a straight-line basis over the benefit period, which is on average 5 years .
Leases	All the Company’s leases are operating leases. The Company accounts for a contract as a lease when it has the right to control the asset for a period of time while obtaining substantially all of the asset’s economic benefits. The Company determines the initial classification and measurement of its operating right of use assets and lease liabilities at the lease commencement date and thereafter if modified. Fixed lease costs are recognized on a straight-line basis over the term of the lease. Variable lease costs are recognized in the period in which the obligation for those payments is incurred. The Company combines lease and non-lease components in the determination of lease costs for its office space leases. The lease liability includes lease payments related to options to extend or renew the lease term, if the Company is reasonably certain it will exercise those options. The Company’s leases do not contain any material residual value guarantees or restrictive covenants.

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Schedule of Marketable Securities	March 31, 2019 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 42,693 $ 86 $ (20 ) $ 42,759 Corporate bonds 48,966 142 (63 ) 49,045 $ 91,659 $ 228 $ (83 ) $ 91,804 December 31, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 44,802 $ 13 $ (110 ) $ 44,705 Corporate bonds 48,499 23 (226 ) 48,296 $ 93,301 $ 36 $ (336 ) $ 93,001

RECEIVABLES, CONTRACT ASSETS,_2

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE (Tables)	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Summary of Receivable	Receivables (in thousands) March 31, 2019 December 31, 2018 Accounts receivable $ 135,352 $ 180,872 Unbilled receivables 161,480 172,656 Long-term unbilled receivables 130,494 151,237 $ 427,326 $ 504,765
Summary of Unbilled Receivables	Unbilled receivables are expected to be billed in the future as follows : (Dollars in thousands) March 31, 2019 1 year or less $ 161,480 55 % 1-2 years 86,496 30 % 2-5 years 43,998 15 % $ 291,974 100 %
Summary of Contract Assets and Deferred Revenue	Contract assets and deferred revenue (in thousands) March 31, 2019 December 31, 2018 Contract assets (1) $ 3,380 $ 3,711 Long-term contract assets (2) 1,818 2,543 $ 5,198 $ 6,254 Deferred revenue $ 180,845 $ 185,145 Long-term deferred revenue (3) 5,866 5,344 $ 186,711 $ 190,489 (1) Included in other current assets. (2) Included in other long-term assets. (3) Included in other long-term liabilities.

DEFERRED CONTRACT COSTS (Tables

DEFERRED CONTRACT COSTS (Tables)	3 Months Ended
	Mar. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Impairment of Deferred Contract Costs	(in thousands) March 31, 2019 December 31, 2018 Deferred contract costs (1) $ 64,869 $ 64,367 (1) Included in other long-term assets.
Schedule of amortization of deferred contract costs	Three Months Ended (in thousands) 2019 2018 Amortization of deferred contract costs (1) $ 8,301 $ 3,789 (1) Included in selling and marketing expenses .

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Change in Carrying Amount of Goodwill	The change in the carrying amount of goodwill was: (in thousands) Three Months Ended 2019 Balance as of January 1, $ 72,858 Currency translation adjustments 40 Balance as of March 31, $ 72,898
Schedule of Amortizable Intangible Assets	Intangible assets are recorded at cost and amortized using the straight-line method over their estimated useful lives as follows: March 31, 2019 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 4-10 years $ 63,136 $ (52,839 ) $ 10,297 Technology 2-10 years 59,742 (51,730 ) 8,012 Other 1 - 5 years 5,361 (5,361 ) — $ 128,239 $ (109,930 ) $ 18,309 (1) Included in other long-term assets. December 31, 2018 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value (1) Client-related intangibles 4-10 years $ 63,115 $ (51,224 ) $ 11,891 Technology 2-10 years 59,742 (50,398 ) 9,344 Other 1 - 5 years 5,361 (5,361 ) — $ 128,218 $ (106,983 ) $ 21,235 (1) Included in other long-term assets.
Amortization of Intangible Assets	Amortization of intangible assets was: (in thousands) Three Months Ended 2019 2018 Cost of revenue $ 1,332 $ 1,232 Selling and marketing 1,603 1,605 $ 2,935 $ 2,837

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2019
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	(in thousands) March 31, 2019 December 31, 2018 Outside professional services expenses $ 8,815 $ 10,367 Income and other taxes 7,954 10,387 Marketing and sales program expenses 8,318 5,860 Dividends payable 2,367 2,363 Employee-related expenses 5,432 3,536 Other 8,061 12,993 $ 40,947 $ 45,506

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value	The Company’s assets and liabilities measured at fair value on a recurring basis were: March 31, 2019 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents $ 12,401 $ 10,062 $ — $ 22,463 Marketable securities: Municipal bonds $ — $ 42,759 $ — $ 42,759 Corporate bonds — 49,045 — 49,045 Total marketable securities $ — $ 91,804 $ — $ 91,804 Investments in privately-held companies (1) $ — $ — $ 3,390 $ 3,390 (1) Included in other long-term assets. December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents $ 10,155 $ 10,000 $ — $ 20,155 Marketable securities: Municipal bonds $ — $ 44,705 $ — $ 44,705 Corporate bonds — 48,296 — 48,296 Total marketable securities $ — $ 93,001 $ — $ 93,001 Investments in privately-held companies (1) $ — $ — $ 3,390 $ 3,390 (1) Included in other long-term assets.

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Schedule of Lease Expense	The weighted-average remaining lease term and discount rate for the Company’s leases were: March 31, 2019 Weighted-average remaining lease term 4.3 years Weighted-average discount rate (1) 5.7 % (1) The rate implicit in the lease is not readily determinable in most of the Company’s leases, and 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 at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease. Expense Three Months Ended (in thousands) 2019 Operating lease costs $ 4,300 Variable lease costs (1) 1,321 $ 5,621 (1) Lease costs that are not fixed at lease commencement.
Schedule of Right of Use Asset and Lease Liabilities	Right of use assets and lease liabilities (in thousands) March 31, 2019 Right of use assets (1) $ 46,464 Lease liabilities (2) $ 12,447 Long-term lease liabilities $ 45,325 (1) An asset that represents the Company’s right to use the leased asset during the lease term. Included in other long-term assets. (2) Included in other current liabilities.
Schedule of Lease Maturities after Adoption of 842	Maturities of lease liabilities were: (in thousands) March 31, 2019 Remainder of 2019 $ 11,324 2020 15,784 2021 13,764 2022 12,761 2023 11,604 Total lease payments 65,237 Less: imputed interest (1) (7,465 ) $ 57,772 (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 as a result of a lease reassessment event.
Schedule of Lease Maturities before Adoption of 842	As of December 31, 2018 , the Company’s future minimum rental payments required under operating leases with noncancellable terms in excess of one year as determined prior to the adoption of ASC 842 were: (in thousands) Operating Leases (1) 2019 $ 15,993 2020 14,807 2021 13,262 2022 12,279 2023 11,084 $ 67,425 (1) Operating leases include future minimum rent payments, net of estimated sublease income for facilities that the Company has vacated pursuant to its restructuring activities.
Schedule of Supplemental Cash Flow Lease Information	Cash flow information Three Months Ended (in thousands) 2019 Cash paid for leases 5,197 Right of use assets recognized for new leases (non-cash) 8,034

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Geographic revenue Three Months Ended (Dollars in thousands) 2019 2018 U.S. $ 103,991 48 % $ 113,985 48 % Other Americas 28,829 14 % 17,715 8 % United Kingdom (“U.K.”) 24,549 12 % 26,094 11 % Europe (excluding U.K.), Middle East, and Africa 34,186 16 % 31,826 14 % Asia-Pacific 20,991 10 % 45,562 19 % $ 212,546 100 % $ 235,182 100 % Revenue streams Three Months Ended (in thousands) 2019 2018 Perpetual license $ 14,950 $ 23,078 Term license 48,314 64,695 Revenue recognized at a point in time 63,264 87,773 Maintenance 67,706 64,525 Cloud 27,758 15,582 Consulting 53,818 67,302 Revenue recognized over time 149,282 147,409 $ 212,546 $ 235,182 (in thousands) Three Months Ended 2019 2018 Term license $ 48,314 $ 64,695 Cloud 27,758 15,582 Maintenance 67,706 64,525 Subscription (1) 143,778 144,802 Perpetual license 14,950 23,078 Consulting 53,818 67,302 $ 212,546 $ 235,182 (1) Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal.
Revenue for Remaining Performance Obligations Expected to be Recognized	Remaining performance obligations Revenue recognition timing on existing contracts: March 31, 2019 (Dollars in thousands) Perpetual license Term License Maintenance Cloud Consulting Total 1 year or less $ 10,263 $ 44,404 $ 187,324 $ 115,548 $ 13,251 $ 370,790 58 % 1-2 years 998 4,274 9,350 91,539 1,363 107,524 17 % 2-3 years 2,180 756 4,438 71,509 473 79,356 13 % Greater than 3 years — 135 2,008 72,742 27 74,912 12 % $ 13,441 $ 49,569 $ 203,120 $ 351,338 $ 15,114 $ 632,582 100 % March 31, 2018 (Dollars in thousands) Perpetual license Term License Maintenance Cloud Consulting Total 1 year or less $ 33,859 $ 21,087 $ 156,702 $ 47,764 $ 9,403 $ 268,815 59 % 1-2 years 14,106 7,877 21,381 52,849 1,098 97,311 21 % 2-3 years 1,204 5,634 4,924 37,844 — 49,606 11 % Greater than 3 years 382 853 1,825 40,478 — 43,538 9 % $ 49,551 $ 35,451 $ 184,832 $ 178,935 $ 10,501 $ 459,270 100 %

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Based Compensation Expense	Expense Three Months Ended (in thousands) 2019 2018 Cost of revenues $ 4,519 $ 3,701 Selling and marketing 7,374 4,658 Research and development 4,560 3,637 General and administrative 1,897 3,113 $ 18,350 $ 15,109 Income tax benefit $ (3,740 ) $ (3,141 )
Summary of stock based compensation award granted	Grants The Company granted the following stock-based compensation awards: Three Months Ended 2019 (in thousands) Shares Total Fair Value RSUs 839 $ 53,184 Non-qualified stock options 1,770 $ 33,344

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Summary of Benefit from Income Taxes and Discrete Tax Items	Effective income tax rate Three Months Ended (Dollars in thousands) 2019 2018 Benefit from income taxes $ (8,300 ) $ (4,222 ) Effective income tax rate 22 % (53 )%

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Summary of Basic and Diluted Earnings Per Share	The calculation of the basic and diluted earnings per share was: Three Months Ended (in thousands, except per share amounts) 2019 2018 Basic Net (loss) income $ (28,717 ) $ 12,200 Weighted-average common shares outstanding 78,584 78,236 (Loss) earnings per share, basic $ (0.37 ) $ 0.16 Diluted Net (loss) income $ (28,717 ) $ 12,200 Weighted-average effect of dilutive securities: Stock options — 3,119 RSUs — 1,747 Effect of dilutive securities — 4,866 Weighted-average common shares outstanding, assuming dilution 78,584 83,102 (Loss) earnings per share, diluted $ (0.37 ) $ 0.15 Outstanding anti-dilutive stock options and RSUs (1) 5,563 397 (1) Certain outstanding stock options and RSUs were excluded from the computation of diluted earnings per share because they were anti-dilutive in the period presented. These awards may be dilutive in the future.

NEW ACCOUNTING PRONOUNCEMENTS_2

NEW ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Accounting Policies [Abstract]
Right-of-use assets	$ 46,464	$ 41,800
Lease liabilities	$ 57,772	$ 54,200

MARKETABLE SECURITIES (Detail)

MARKETABLE SECURITIES (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 91,659	$ 93,301
Unrealized Gains	228	36
Unrealized Losses	(83)	(336)
Fair Value	$ 91,804	93,001
Weighted average remaining maturity of marketable securities	1 year 4 months 24 days
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 42,693	44,802
Unrealized Gains	86	13
Unrealized Losses	(20)	(110)
Fair Value	42,759	44,705
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	48,966	48,499
Unrealized Gains	142	23
Unrealized Losses	(63)	(226)
Fair Value	$ 49,045	$ 48,296

RECEIVABLES, CONTRACT ASSETS,_3

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Summary of Receivable (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Accounts receivable	$ 135,352	$ 180,872
Unbilled receivables	161,480	172,656
Long-term unbilled receivables	130,494	151,237
Total receivables	$ 427,326	$ 504,765

RECEIVABLES, CONTRACT ASSETS,_4

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Summary of Unbilled Receivables (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
1 year or less	$ 161,480	$ 172,656
1-2 years	86,496
2-5 years	43,998
Total	$ 291,974
Percentage of unbilled receivables, 1 Year or Less	55.00%
Percentage of unbilled receivables, 1-2 Years	30.00%
Percentage of unbilled receivables, 2-5 Years	15.00%
Total percentage of unbilled receivables	100.00%

RECEIVABLES, CONTRACT ASSETS,_5

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Summary of Contract Assets and Deferred Revenue (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Contract assets	$ 3,380	$ 3,711
Long-term contract assets	1,818	2,543
Total contract assets	5,198	6,254
Deferred revenue	180,845	185,145
Long-term deferred revenue	5,866	5,344
Total deferred revenue	$ 186,711	$ 190,489

RECEIVABLES, CONTRACT ASSETS,_6

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)
Receivables [Abstract]
Contract with customer, liability, revenue recognized	$ 89.4

Deferred Contract Costs - Addit

Deferred Contract Costs - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Amortized period	5 years

DEFERRED CONTRACT COSTS - Sched

DEFERRED CONTRACT COSTS - Schedule of Impairment of Deferred Contract Costs (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deferred contract costs	$ 64,869	$ 64,367

DEFERRED CONTRACT COSTS - Sch_2

DEFERRED CONTRACT COSTS - Schedule of Amortization of Deferred Contract Costs (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Amortization of deferred contract costs	$ 8,301	$ 3,789

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Change in Carrying Amount of Goodwill (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Goodwill [Roll Forward]
Balance as of January 1,	$ 72,858
Currency translation adjustments	40
Balance as of March 31,	$ 72,898

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Goodwill and Other Intangible Assets [Line Items]
Cost	$ 128,239	$ 128,218
Accumulated Amortization	(109,930)	(106,983)
Net Book Value	18,309	21,235
Client-related intangibles
Goodwill and Other Intangible Assets [Line Items]
Cost	63,136	63,115
Accumulated Amortization	(52,839)	(51,224)
Net Book Value	$ 10,297	$ 11,891
Client-related intangibles | Minimum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	4 years	4 years
Client-related intangibles | Maximum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	10 years	10 years
Technology
Goodwill and Other Intangible Assets [Line Items]
Cost	$ 59,742	$ 59,742
Accumulated Amortization	(51,730)	(50,398)
Net Book Value	$ 8,012	$ 9,344
Technology | Minimum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	2 years	2 years
Technology | Maximum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	10 years	10 years
Other
Goodwill and Other Intangible Assets [Line Items]
Cost	$ 5,361	$ 5,361
Accumulated Amortization	$ (5,361)	$ (5,361)
Other | Minimum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	1 year	1 year
Other | Maximum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	5 years	5 years

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 2,935	$ 2,837
Cost of revenue
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	1,332	1,232
Selling and marketing
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 1,603	$ 1,605

ACCRUED EXPENSES - Schedule of

ACCRUED EXPENSES - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Outside professional services expenses	$ 8,815	$ 10,367
Income and other taxes	7,954	10,387
Marketing and sales program expenses	8,318	5,860
Dividends payable	2,367	2,363
Employee-related expenses	5,432	3,536
Other	8,061	12,993
Total accrued expenses	$ 40,947	$ 45,506

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value Assets
Total marketable securities	$ 91,804	$ 93,001
Level 1
Fair Value Assets
Total marketable securities	0	0
Level 2
Fair Value Assets
Total marketable securities	91,804	93,001
Level 3
Fair Value Assets
Total marketable securities	0	0
Cash equivalents
Fair Value Assets
Cash equivalents	22,463	20,155
Cash equivalents | Level 1
Fair Value Assets
Cash equivalents	12,401	10,155
Cash equivalents | Level 2
Fair Value Assets
Cash equivalents	10,062	10,000
Cash equivalents | Level 3
Fair Value Assets
Cash equivalents	0	0
Municipal bonds
Fair Value Assets
Total marketable securities	42,759	44,705
Municipal bonds | Level 1
Fair Value Assets
Total marketable securities	0	0
Municipal bonds | Level 2
Fair Value Assets
Total marketable securities	42,759	44,705
Municipal bonds | Level 3
Fair Value Assets
Total marketable securities	0	0
Corporate bonds
Fair Value Assets
Total marketable securities	49,045	48,296
Corporate bonds | Level 1
Fair Value Assets
Total marketable securities	0	0
Corporate bonds | Level 2
Fair Value Assets
Total marketable securities	49,045	48,296
Corporate bonds | Level 3
Fair Value Assets
Total marketable securities	0	0
Investments in privately-held companies
Fair Value Assets
Investments in privately-held companies	3,390	3,390
Investments in privately-held companies | Level 1
Fair Value Assets
Investments in privately-held companies	0	0
Investments in privately-held companies | Level 2
Fair Value Assets
Investments in privately-held companies	0	0
Investments in privately-held companies | Level 3
Fair Value Assets
Investments in privately-held companies	$ 3,390	$ 3,390

LEASES - Operating Lease Expens

LEASES - Operating Lease Expenses (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating lease costs	$ 4,300
Variable lease costs	1,321
Operating lease expenses	$ 5,621

LEASES - Right of Use Assets (D

LEASES - Right of Use Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases [Abstract]
Right of use assets	$ 46,464	$ 41,800
Lease liabilities	12,447
Long-term lease liabilities	$ 45,325		$ 0

LEASES - Remaining Lease Term (

LEASES - Remaining Lease Term (Details)	Mar. 31, 2019
Leases [Abstract]
Weighted-average remaining lease term	4 years 3 months 11 days
Weighted-average discount rate	5.70%

LEASES - Maturities after Adopt

LEASES - Maturities after Adoption of 842 (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Leases [Abstract]
Remainder of 2019	$ 11,324
2020	15,784
2021	13,764
2022	12,761
2023	11,604
Total lease payments	65,237
Less: imputed interest	(7,465)
Lease liabilities	$ 57,772	$ 54,200

LEASES - Maturities before Adop

LEASES - Maturities before Adoption of 842 (Details) $ in Thousands	Mar. 31, 2019USD ($)
Leases [Abstract]
2019	$ 15,993
2020	14,807
2021	13,262
2022	12,279
2023	11,084
Lease liabilities before adoption of 842	$ 67,425

LEASES - Cash Flow Information

LEASES - Cash Flow Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Cash paid for leases	$ 5,197
Right of use assets recognized for new leases (non-cash)	$ 8,034

Disaggregation of Revenue (Deta

Disaggregation of Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 212,546	$ 235,182
Percentage of sale revenue net	100.00%	100.00%
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	$ 63,264	$ 87,773
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Total revenue	149,282	147,409
Perpetual license | Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	14,950	23,078
Term license | Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	48,314	64,695
Maintenance
Disaggregation of Revenue [Line Items]
Total revenue	67,706	64,525
Cloud | Revenue recognized over time
Disaggregation of Revenue [Line Items]
Total revenue	27,758	15,582
Consulting | Revenue recognized over time
Disaggregation of Revenue [Line Items]
Total revenue	53,818	67,302
Subscription
Disaggregation of Revenue [Line Items]
Total revenue	143,778	144,802
U.S.
Disaggregation of Revenue [Line Items]
Total revenue	103,991	113,985
Other Americas
Disaggregation of Revenue [Line Items]
Total revenue	28,829	17,715
United Kingdom (“U.K.”)
Disaggregation of Revenue [Line Items]
Total revenue	24,549	26,094
Europe (excluding U.K.), Middle East, and Africa
Disaggregation of Revenue [Line Items]
Total revenue	34,186	31,826
Asia-Pacific
Disaggregation of Revenue [Line Items]
Total revenue	$ 20,991	$ 45,562
Total Revenue | U.S.
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net	48.00%	48.00%
Total Revenue | Other Americas
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net	14.00%	8.00%
Total Revenue | United Kingdom (“U.K.”)
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net	12.00%	11.00%
Total Revenue | Europe (excluding U.K.), Middle East, and Africa
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net	16.00%	14.00%
Total Revenue | Asia-Pacific
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net	10.00%	19.00%

Revenue for Remaining Performan

Revenue for Remaining Performance Obligations Expected to be Recognized (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
1 year or less	$ 370,790	$ 268,815
1-2 years	107,524	97,311
2-3 years	79,356	49,606
Greater than 3 years	74,912	43,538
Total	$ 632,582	$ 459,270
Percentage of remaining performance obligations,1 year or less	58.00%	59.00%
Percentage of remaining performance obligations, 1-2 years	17.00%	21.00%
Percentage of remaining performance obligations, 2-3 years	13.00%	11.00%
Percentage of remaining performance obligations, Greater than 3 years	12.00%	9.00%
Total percentage of remaining performance obligations	100.00%	100.00%
Perpetual license
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
1 year or less	$ 10,263	$ 33,859
1-2 years	998	14,106
2-3 years	2,180	1,204
Greater than 3 years	0	382
Total	13,441	49,551
Term license
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
1 year or less	44,404	21,087
1-2 years	4,274	7,877
2-3 years	756	5,634
Greater than 3 years	135	853
Total	49,569	35,451
Maintenance
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
1 year or less	187,324	156,702
1-2 years	9,350	21,381
2-3 years	4,438	4,924
Greater than 3 years	2,008	1,825
Total	203,120	184,832
Cloud
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
1 year or less	115,548	47,764
1-2 years	91,539	52,849
2-3 years	71,509	37,844
Greater than 3 years	72,742	40,478
Total	351,338	178,935
Consulting
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
1 year or less	13,251	9,403
1-2 years	1,363	1,098
2-3 years	473	0
Greater than 3 years	27	0
Total	$ 15,114	$ 10,501

Summary of Stock Based Compensa

Summary of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 18,350	$ 15,109
Income tax benefit	(3,740)	(3,141)
Cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	4,519	3,701
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	7,374	4,658
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	4,560	3,637
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 1,897	$ 3,113

Stock-based compensation - Summ

Stock-based compensation - Summary of stock based compensation award granted (Detail) - Employees $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)shares
RSUs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares granted, RSUs (in shares) | shares	839,000
Fair value of shares granted | $	$ 53,184
Non-qualified stock options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares granted, options (in shares) | shares	1,770,000
Fair value of shares granted | $	$ 33,344

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unrecognized stock-based compensation expense | $	$ 114.1
Weighted-average period of recognition of unrecognized stock-based compensation expense (in years)	2 years 4 months
Shares issued (in shares) | shares	0.5

Summary of Benefit from Income

Summary of Benefit from Income Taxes and Discrete Tax Items (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Benefit from income taxes	$ (8,300)	$ (4,222)
Effective income tax rate	22.00%	(53.00%)

Summary of Basic and Diluted Ea

Summary of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earning per share reconciliation
Net (loss) income	$ (28,717)	$ 12,200
Weighted-average common shares outstanding (in shares)	78,584	78,236
(Loss) earnings per share, basic (in dollars per share)	$ (0.37)	$ 0.16
Net (loss) income	$ (28,717)	$ 12,200
Effect of dilutive securities (in shares)	0	4,866
Weighted-average common shares outstanding, assuming dilution (in shares)	78,584	83,102
(Loss) earnings per share, diluted (in dollars per share)	$ (0.37)	$ 0.15
Outstanding anti-dilutive stock options and RSUs (in shares)	5,563	397
Stock Options
Earning per share reconciliation
Weighted-average effect of dilutive securities (in shares)	0	3,119
RSUs
Earning per share reconciliation
Weighted-average effect of dilutive securities (in shares)	0	1,747