Pegasystems (PEGA) 10-K 16 Feb 22 2021 FY Annual report Financial data

COVER PAGE

COVER PAGE - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2021	Feb. 04, 2022	Jun. 30, 2021
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2021
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	1-11859
Entity Registrant Name	PEGASYSTEMS INC.
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Entity Central Index Key	0001013857
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 5.7
Entity Common Stock, Shares Outstanding		81,631,845
Documents Incorporated by Reference	Portions of the Registrant’s definitive proxy statement related to its 2022 annual meeting of stockholders to be filed subsequently are incorporated by reference into Part III of this report.

AUDIT INFORMATION

AUDIT INFORMATION	12 Months Ended
	Dec. 31, 2021
Audit Information [Abstract]
Auditor name	Deloitte & Touche LLP
Auditor location	Boston, Massachusetts
Auditor firm ID	34

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 159,965	$ 171,899
Marketable securities	202,814	293,269
Total cash, cash equivalents, and marketable securities	362,779	465,168
Accounts receivable	182,717	215,827
Unbilled receivables	226,714	207,155
Other current assets	68,008	88,760
Total current assets	840,218	976,910
Long-term unbilled receivables	129,789	113,278
Goodwill	81,923	79,231
Other long-term assets	541,601	434,843
Total assets	1,593,531	1,604,262
Current liabilities:
Accounts payable	15,281	24,028
Accrued expenses	63,890	59,261
Accrued compensation and related expenses	120,946	123,012
Deferred revenue	275,844	232,865
Other current liabilities	9,443	20,969
Total current liabilities	485,404	460,135
Convertible senior notes, net	590,722	518,203
Operating lease liabilities	87,818	59,053
Other long-term liabilities	13,499	24,699
Total liabilities	1,177,443	1,062,090
Commitments and Contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 1,000 shares authorized; none issued	0	0
Common stock, $0.01 par value, 200,000 shares authorized; 81,712 and 80,890 shares issued and outstanding as of December 31, 2021 and 2020, respectively	817	809
Additional paid-in capital	145,810	204,432
Retained earnings	276,449	339,879
Accumulated other comprehensive (loss)
Net unrealized gain on available-for-sale securities, net of tax	686	46
Foreign currency translation adjustments	(7,674)	(2,994)
Total stockholders’ equity	416,088	542,172
Total liabilities and stockholders’ equity	$ 1,593,531	$ 1,604,262

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	81,712,000	80,890,000
Common stock, shares outstanding (in shares)	81,712,000	80,890,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue
Total revenue	$ 1,211,653	$ 1,017,517	$ 911,383
Cost of revenue
Total cost of revenue	336,363	310,913	310,022
Gross profit	875,290	706,604	601,361
Operating expenses
Selling and marketing	625,886	545,693	474,459
Research and development	260,630	236,986	205,210
General and administrative	83,506	67,452	56,570
Total operating expenses	970,022	850,131	736,239
(Loss) from operations	(94,732)	(143,527)	(134,878)
Foreign currency transaction (loss) gain	(6,459)	3,704	(2,335)
Interest income	704	1,223	2,020
Interest expense	(7,956)	(19,356)	(212)
(Loss) gain on capped call transactions	(23,633)	31,697	0
Other income, net	89	1,370	559
(Loss) before (benefit from) income taxes	(131,987)	(124,889)	(134,846)
(Benefit from) income taxes	(68,947)	(63,516)	(44,413)
Net (loss)	$ (63,040)	$ (61,373)	$ (90,433)
(Loss) per share
Basic (in dollars per share)	$ (0.77)	$ (0.76)	$ (1.14)
Diluted (in dollars per share)	$ (0.77)	$ (0.76)	$ (1.14)
Weighted-average number of common shares outstanding
Basic (in shares)	81,387	80,336	79,055
Diluted (in shares)	81,387	80,336	79,055
Subscription services
Revenue
Total revenue	$ 621,223	$ 504,977	$ 414,326
Cost of revenue
Total cost of revenue	120,446	98,886	91,484
Subscription license
Revenue
Total revenue	336,248	266,352	199,433
Cost of revenue
Total cost of revenue	2,389	2,644	2,609
Perpetual license
Revenue
Total revenue	32,172	28,558	80,015
Cost of revenue
Total cost of revenue	229	284	1,047
Consulting
Revenue
Total revenue	222,010	217,630	217,609
Cost of revenue
Total cost of revenue	$ 213,299	$ 209,099	$ 214,882

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net (loss)	$ (63,040)	$ (61,373)	$ (90,433)
Other comprehensive (loss) income, net of tax
Unrealized gain on available-for-sale securities	640	46	249
Foreign currency translation adjustments	(4,680)	10,234	(155)
Total other comprehensive (loss) income, net of tax	(4,040)	10,280	94
Comprehensive (loss)	$ (67,080)	$ (51,093)	$ (90,339)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional paid-In capital	Additional paid-In capitalCumulative Effect, Period of Adoption, Adjustment	Retained earnings	Retained earningsCumulative Effect, Period of Adoption, Adjustment	Accumulated other comprehensive (loss)
Balance, beginning of period (in shares) at Dec. 31, 2018			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)			(333)
Repurchase of common stock	(21,136)		$ (3)	(21,133)
Issuance of common stock for stock compensation plans (in shares)			1,375
Issuance of common stock for stock compensation plans	(44,839)		$ 14	(44,853)
Issuance of common stock under Employee Stock Purchase Plan (in shares)			31
Issuance of common stock under the employee stock purchase plan	2,202			2,202
Stock-based compensation	81,102			81,102
Cash dividends declared	(9,511)					(9,511)
Other comprehensive (loss) income	94							94
Net (loss)	(90,433)					(90,433)
Balance, end of period (in shares) at Dec. 31, 2019			79,599
Balance, end of period at Dec. 31, 2019	$ 539,010		$ 796	140,523		410,919		(13,228)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment from adoption of ASU 2020-06	Accounting Standards Update 2020-06 [Member]
Equity component of convertible senior notes, net	$ 61,604			61,604
Repurchase of common stock (in shares)			(278)
Repurchase of common stock	(28,274)		$ (3)	(28,271)
Issuance of common stock for stock compensation plans (in shares)			1,536
Issuance of common stock for stock compensation plans	(75,562)		$ 16	(75,578)
Issuance of common stock under Employee Stock Purchase Plan (in shares)			33
Issuance of common stock under the employee stock purchase plan	3,039			3,039
Stock-based compensation	103,115			103,115
Cash dividends declared	(9,667)					(9,667)
Other comprehensive (loss) income	10,280							10,280
Net (loss)	$ (61,373)					(61,373)
Balance, end of period (in shares) at Dec. 31, 2020	80,890		80,890
Balance, end of period at Dec. 31, 2020	$ 542,172	$ (52,205)	$ 809	204,432	$ (61,604)	339,879	$ 9,399	(2,948)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment from adoption of ASU 2020-06	Accounting Standards Update 2020-06 [Member]
Balance, end of period at Jan. 01, 2021							9,400
Balance, beginning of period (in shares) at Dec. 31, 2020	80,890		80,890
Balance, beginning of period at Dec. 31, 2020	$ 542,172	$ (52,205)	$ 809	204,432	$ (61,604)	339,879	$ 9,399	(2,948)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock (in shares)			(432)
Repurchase of common stock	(53,610)		$ (5)	(53,605)
Issuance of common stock for stock compensation plans (in shares)			1,153
Issuance of common stock for stock compensation plans	(69,925)		$ 12	(69,937)
Issuance of common stock under Employee Stock Purchase Plan (in shares)			101
Issuance of common stock under the employee stock purchase plan	10,554		$ 1	10,553
Stock-based compensation	115,971			115,971
Cash dividends declared	(9,789)					(9,789)
Other comprehensive (loss) income	(4,040)							(4,040)
Net (loss)	$ (63,040)					(63,040)
Balance, end of period (in shares) at Dec. 31, 2021	81,712		81,712
Balance, end of period at Dec. 31, 2021	$ 416,088		$ 817	$ 145,810		$ 276,449		$ (6,988)

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.12	$ 0.12	$ 0.12

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating activities
Net (loss)	$ (63,040)	$ (61,373)	$ (90,433)
Adjustments to reconcile net (loss) to cash provided by (used in) operating activities
Stock-based compensation	115,947	103,068	80,909
Deferred income taxes	(75,336)	(59,777)	(49,317)
Loss (gain) on capped call transactions	23,633	(31,697)	0
Amortization of deferred commissions	41,387	33,302	29,152
Lease expense	13,277	16,248	14,497
Amortization of debt discount and issuance costs	2,977	14,813	0
Amortization of intangible assets and depreciation	28,593	21,348	21,396
Amortization of investments	3,721	1,073	800
Foreign currency transaction loss (gain)	6,459	(3,704)	2,335
Other	1,032	(879)	(521)
Change in operating assets and liabilities:
Accounts receivable, unbilled receivables, and contract assets	(11,957)	(32,321)	1,088
Other current assets	17,209	(12,959)	(6,344)
Other current liabilities	(18,726)	37,945	25,670
Deferred revenue	41,279	43,661	1,937
Deferred commissions	(71,451)	(55,175)	(49,746)
Other long-term assets and liabilities	(15,886)	(14,136)	(23,588)
Cash provided by (used in) operating activities	39,118	(563)	(42,165)
Investing activities
Purchases of investments	(79,121)	(326,549)	(11,424)
Proceeds from maturities and called investments	105,977	28,811	13,634
Sales of investments	61,096	1,424	89,406
Payments for acquisitions, net of cash acquired	(4,993)	0	(10,934)
Investment in property and equipment	(10,456)	(25,369)	(10,608)
Cash provided by (used in) investing activities	72,503	(321,683)	70,074
Financing activities
Proceeds from issuance of convertible senior notes	0	600,000	0
Purchase of capped calls related to convertible senior notes	0	(51,900)	0
Payment of debt issuance costs	0	(14,527)	0
Proceeds from employee stock purchase plan	10,554	3,039	2,202
Dividend payments to stockholders	(9,761)	(9,628)	(9,486)
Proceeds from revolving credit facility	0	0	45,000
Payments on revolving credit facility	0	0	(45,000)
Common stock repurchases for tax withholdings for net settlement of equity awards	(69,925)	(75,562)	(44,839)
Common stock repurchases under stock repurchase program	(52,711)	(27,974)	(22,135)
Cash (used in) provided by financing activities	(121,843)	423,448	(74,258)
Effect of exchange rate changes on cash and cash equivalents	(1,712)	2,334	290
Net (decrease) increase in cash and cash equivalents	(11,934)	103,536	(46,059)
Cash and cash equivalents, beginning of period	171,899	68,363	114,422
Cash and cash equivalents, end of period	159,965	171,899	68,363
Supplemental disclosures
Interest paid on convertible notes	4,500	2,338	0
Income taxes (refunded) paid	(4,552)	3,377	4,745
Non-cash investing and financing activity:
Dividends payable	$ 2,454	$ 2,428	$ 2,388

BASIS OF PRESENTATION

BASIS OF PRESENTATION	12 Months Ended
	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION Business The Company develops, markets, licenses, and supports customer engagement and digital process automation software applications in addition to the Pega Platform™ for clients that wish to build and extend their own applications. The Company provides consulting, training, support, and hosting services to facilitate the use of its software. Management estimates and reporting The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S.”) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ from those estimates. Accounts with reported amounts based on significant estimates and judgments include, but are not limited to, revenue, unbilled receivables, deferred revenue, deferred income taxes, deferred commissions, income taxes payable, convertible senior notes, capped call transactions, intangible assets, and goodwill. Principles of consolidation The Company’s consolidated financial statements reflect Pegasystems Inc. and subsidiaries in which the Company holds a controlling financial interest. All intercompany accounts and transactions were eliminated in consolidation. Reclassifications Certain prior period amounts reported in our consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, operating income, or net income.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	2. SIGNIFICANT ACCOUNTING POLICIES Revenue The Company’s revenue is primarily derived from: • Subscription services, which is composed of revenue from Pega Cloud and maintenance. Pega Cloud is the Company’s hosted Pega Platform and software applications. Maintenance revenue is earned from providing client support, software upgrades, and bug fixes or patches. • Subscription license, which is composed of revenue from term license arrangements for the Company’s Pega Platform and software applications. Term licenses represent functional intellectual property and are delivered separately from maintenance and services. • Perpetual license, which is composed of revenue under perpetual license arrangements for the Company’s Pega Platform and software applications. Perpetual licenses represent functional intellectual property and are delivered separately from maintenance and services. • Consulting, which is primarily related to new software license implementations, training, and reimbursable costs. Performance obligations The Company’s software license and Pega Cloud arrangements often contain multiple performance obligations. If a contract contains multiple performance obligations, the Company accounts for each distinct performance obligation separately. The transaction price is allocated to the separate performance obligations on a relative stand-alone selling price basis. Any discounts or expected potential future price concessions are considered when determining the total transaction price. The Company’s policy is to exclude sales and similar taxes collected from clients from the determination of transaction price. The Company’s typical performance obligations are: Performance obligation How standalone selling price is typically determined When performance obligation is typically satisfied When payment is typically Due Income statement line item Perpetual license Residual approach Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time) Effective date of the license Perpetual License Term license Residual approach Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time) Annually, or more frequently, over the term of the license Subscription license Maintenance Consistent pricing relationship as a percentage of the related license and observable in stand-alone renewal transactions (1) Ratably over the term of the maintenance (over time) Annually, or more frequently, over the term of the maintenance Subscription services Pega Cloud Residual approach Ratably over the term of the service (over time) Annually, or more frequently, over the term of the service Subscription services Consulting Observable hourly rate for time and materials-based services in similar geographies Based on hours incurred to date (over time) Monthly Consulting Consulting Observable hourly rate for time and materials-based services in similar geographies multiplied by estimated hours for the project Based on hours incurred as a percentage of total estimated hours (over time) As contract milestones are achieved Consulting (1) Technical support and software updates are considered distinct services but accounted for as a single performance obligation, as they have the same pattern of transfer to the client. The Company utilizes the residual approach for software license and Pega Cloud performance obligations since the selling price is highly variable and stand-alone selling price is not discernible from past transactions or other observable evidence. Periodically, the Company reevaluates whether the residual approach remains appropriate. As required, the Company evaluates its residual approach estimate compared to all available observable data before concluding the estimate is representative of its stand-alone selling price. If the contract grants the client the option to acquire additional products or services, the Company assesses whether the option represents a material right to the client that the client would not receive without entering into that contract. Discounts on options to purchase additional products and services greater than discounts available to similar clients are accounted for as an additional performance obligation. During most of each client contract term, the amount invoiced is generally less than the amount of revenue recognized to date, primarily because we transfer control of the performance obligation related to the software license at the inception of the contract term. A significant portion of the total contract consideration is typically allocated to the license performance obligation. Therefore, our contracts often result in the recording of unbilled receivables and contract assets throughout most of the contract term. The Company records an unbilled receivable or contract asset when revenue recognized on a contract exceeds the billings. The Company recognizes an impairment on receivables and contract assets if, after contract inception, it becomes probable that payment is not collectible. The Company reviews receivables and contract assets on an individual basis for impairment. Variable consideration The Company’s arrangements can include variable fees, such as the option to purchase additional usage of a previously delivered software license. The Company may also provide pricing concessions to clients, a business practice that also gives rise to variable fees in contracts. For variable fees arising from the client’s acquisition of additional usage of a previously delivered software license, the Company applies the sales and usage-based royalties guidance related to a license of intellectual property and recognizes the revenue in the period the underlying sale or usage occurs. The Company includes variable fees in the determination of total transaction price if it is not probable that a future significant reversal of revenue will occur. The Company uses the expected value or most likely value amount, whichever is more appropriate for specific circumstances, to estimate variable consideration, and the estimates are based on the level of historical price concessions offered to clients. The variable consideration related to pricing concessions and other forms of variable consideration, including usage-based fees, have not been material to the Company’s consolidated financial statements. Significant financing components The Company generally does not intend to provide financing to its clients, as financing arrangements are not contemplated as part of the negotiated terms of contracts between the Company and its clients. Although there may be instances with an intervening period between the delivery of the license and the payment, typically in term license arrangements, the purpose of that timing difference is to align the client’s payment with the timing of the use of the software license or service. In certain circumstances, however, there are instances where revenue recognition timing differs from the timing of payment due to extended payment terms or fees that are non-proportional to the associated usage of software licenses. In these instances, the Company evaluates whether a significant financing component exists. This evaluation includes determining the difference between the consideration the client would have paid at the time the performance obligation was satisfied and the amount of consideration actually paid. Contracts that include a significant financing component are adjusted for the time value of money at the rate inherent in the contract, the client’s borrowing rate, or the Company’s incremental borrowing rate, depending upon the recipient of the financing. During 2021, 2020, and 2019, significant financing components were not material. Contract modifications The Company assesses contract modifications to determine: • if the additional products and services are distinct from the products and services in the original arrangement; and • if the amount of consideration expected for the added products and services reflects the stand-alone selling price of those products and services. A contract modification meeting both criteria is accounted for as a separate contract. A contract modification not meeting both criteria is considered a change to the original contract and is accounted for on either: • a prospective basis as a termination of the existing contract and the creation of a new contract; or • a cumulative catch-up basis. Deferred commissions The Company recognizes an asset for the incremental costs of obtaining a client contract, primarily related to sales commissions. The Company expects to benefit from those costs for more than one year, as the Company primarily pays sales commissions on the initial contract. As a result, there are no commensurate commissions paid on contract renewals. Deferred commissions are allocated to each performance obligation within the contract and amortized according to the transfer of underlying goods and services within those contracts and expected renewals. The expected benefit period is determined based on the length of the client contracts, client attrition rates, the underlying technology life-cycle, and the competitive marketplace’s influence in which the products and services are sold. Deferred costs allocated to maintenance and deferred costs for Pega Cloud arrangements are amortized over an average expected benefit period of five years. Deferred costs allocated to software licenses, and any expected renewals of term software licenses within the five years expected benefit period, are amortized at the point in time control of the software license is transferred. Deferred costs allocated to consulting are amortized over a period consistent with the pattern of transfer of control for the related services. Financial instruments The principal financial instruments held by the Company consist of cash equivalents, marketable securities, receivables, capped call transactions, and accounts payable. The Company considers debt securities that are readily convertible to known amounts of cash with maturities of three months or less from the purchase date to be cash equivalents. Interest is recorded when earned. The Company’s investments are classified as available-for-sale and are carried at fair value. Unrealized gains and losses considered temporary in nature are recorded as a component of accumulated other comprehensive (loss), net of related income taxes. The Company reviews all investments for reductions in fair value that are other-than-temporary. When such reductions occur, the investment cost is adjusted to fair value by recording a loss on investments in the consolidated statements of operations. Gains and losses on investments are calculated based upon the specific investment. See "Note 4. Receivables, Contract Assets, And Deferred Revenue", "Note 11. Debt", and "Note 13. Fair Value Measurements" for additional information. Property and equipment Property and equipment are recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are three years for computer equipment and five years for furniture and fixtures. Leasehold improvements are amortized over the lesser of the lease’s term or the useful life of the asset. Repairs and maintenance costs are expensed as incurred. Leases All the Company’s leases are operating leases, primarily composed of office space 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. Loss contingencies and legal costs The Company accrues loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgments are required for the determination of probability and the range of the outcomes, and the estimates are based only on the information available at the time. Due to the inherent uncertainties involved in claims, legal proceedings, and in estimating the losses that may arise, actual outcomes may differ from the Company’s estimates. Contingencies deemed not probable or for which losses were not estimable in one period may become probable, or losses may become estimable in later periods which may have a material impact on the Company’s results of operations and financial position. As additional information becomes available, the Company reassesses the potential liability related to its pending claims and litigation and may revise its estimates. 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. Legal costs are expensed as incurred. Internal-use software The Company capitalizes and amortizes certain direct costs associated with computer software developed or purchased for internal use incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. The Company amortizes capitalized software costs generally over three Goodwill Goodwill represents the residual purchase price paid in a business combination after the fair value of all identified assets and liabilities have been recorded. Goodwill is not amortized. The Company has a single reporting unit. The Company performed a qualitative assessment as of November 30, 2021, 2020, and 2019, and concluded that there was no impairment since it was not more-likely-than-not that the fair value of its reporting unit was less than its carrying value. Intangible and long-lived assets The Company’s intangible assets are amortized using the straight-line method over their estimated useful life. The Company evaluates its long-lived tangible and intangible assets for impairment whenever events or changes in circumstances indicate that such assets’ carrying amount may not be recoverable. Impairment is assessed by comparing the undiscounted cash flows expected to be generated by the long-lived tangible or intangible assets to their carrying value. If impairment exists, the Company calculates the impairment by comparing the carrying value to its fair value as determined by discounted expected cash flows. Cash equivalents Cash equivalents include money market funds, time deposits, and other investments with original maturities of three months or less. Business combinations The Company uses its estimates and assumptions to assign a fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. Research and development and software development costs Research and development costs are expensed as incurred. Capitalization of computer software developed for resale begins upon the establishment of technological feasibility, generally demonstrated by a working model or an operative version of the computer software product. Such costs have not been material to date, as technological feasibility is established within a short time frame from the software’s general availability. As a result, no costs were capitalized in 2021, 2020, or 2019. Stock-based compensation The Company recognizes stock-based compensation expense associated with equity awards based on the award’s fair value at the grant date. Stock-based compensation is recognized over the requisite service period, which is generally the vesting period of the equity award and is adjusted each period for anticipated forfeitures. See "Note 15. Stock-Based Compensation" for discussion of the Company’s key assumptions included in determining the fair value of its equity awards at the grant date. Foreign currency translation and remeasurement The translation of assets and liabilities for the Company’s subsidiaries with functional currencies other than the U.S. dollar are made at period-end exchange rates. Revenue and expense accounts are translated at the average exchange rates during the period transactions occur. The resulting translation adjustments are reflected in accumulated other comprehensive (loss). Realized and unrealized exchange gains or losses from transactions and remeasurement adjustments are reflected in foreign currency transaction gain (loss) in the accompanying consolidated statements of operations. Accounting for income taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company regularly assesses the need for a valuation allowance against its deferred tax assets. Future realization of the Company’s deferred tax assets ultimately depends on sufficient taxable income within the available carryback or carryforward periods. Taxable income sources include taxable income in prior carryback years, future reversals of existing taxable temporary differences, the Company’s firm contractual backlog, tax planning strategies, and projected future taxable income. The Company records a valuation allowance to reduce its deferred tax assets to an amount it believes is more-likely-than-not to be realized. Changes in the valuation allowance impact income tax expense in the period of adjustment. The Company recognizes excess tax benefits when they are realized, as a reduction of the provision for income taxes. The Company assesses its income tax positions and records tax benefits based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit is recognized in the financial statements. The Company classifies liabilities for uncertain tax positions as non-current liabilities unless the uncertainty is expected to be resolved within one year. The Company classifies interest and penalties on uncertain tax positions as income tax expense. As a global company, significant judgment must be used to calculate and provide for income taxes in each of the tax jurisdictions in which it operates. In the ordinary course of the Company’s business, there are transactions and calculations undertaken whose ultimate tax outcome cannot be certain. Some of these uncertainties arise because of transfer pricing for transactions with the Company’s subsidiaries and nexus and tax credit estimates. In addition, the calculation of acquired tax attributes and the associated limitations are complex. See "Note 17. Income Taxes" for additional information. Advertising expense Advertising costs are expensed as incurred. Advertising expenses were $11.8 million, $8.7 million, and $6.7 million during 2021, 2020, and 2019, respectively.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	12 Months Ended
	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	3. MARKETABLE SECURITIES December 31, 2021 December 31, 2020 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Government debt $ 2,000 $ — $ (10) $ 1,990 $ 39,996 $ — $ (8) $ 39,988 Corporate debt 201,659 2 (837) 200,824 253,345 88 (152) 253,281 $ 203,659 $ 2 $ (847) $ 202,814 $ 293,341 $ 88 $ (160) $ 293,269 As of December 31, 2021, marketable securities’ maturities ranged from January 2022 to September 2024, with a weighted-average remaining maturity of 1.2 years.

RECEIVABLES, CONTRACT ASSETS, A

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE	4. RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE Receivables (in thousands) December 31, 2021 December 31, 2020 Accounts receivable $ 182,717 $ 215,827 Unbilled receivables 226,714 207,155 Long-term unbilled receivables 129,789 113,278 $ 539,220 $ 536,260 Unbilled receivables Unbilled receivables are client-committed amounts for which revenue recognition precedes billing, and billing is solely subject to the passage of time. Unbilled receivables by expected billing date: (Dollars in thousands) December 31, 2021 1 year or less $ 226,714 64 % 1-2 years 83,988 23 % 2-5 years 45,801 13 % $ 356,503 100 % Unbilled receivables by contract effective date: (Dollars in thousands) December 31, 2021 2021 $ 182,427 51 % 2020 104,416 29 % 2019 34,544 10 % 2018 16,296 5 % 2017 and prior 18,820 5 % $ 356,503 100 % Major clients Clients that represented 10% or more of the Company’s total accounts receivable and unbilled receivables: December 31, 2021 December 31, 2020 Client A 10 % * * Client accounted for less than 10% of total accounts receivable and unbilled receivables. 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 completing a related performance obligation. (in thousands) December 31, 2021 December 31, 2020 Contract assets (1) $ 12,530 $ 15,296 Long-term contract assets (2) 10,643 7,777 $ 23,173 $ 23,073 (1) Included in other current assets. (2) Included in other long-term assets. Deferred revenue Deferred revenue consists of billings and payments received in advance of revenue recognition. (in thousands) December 31, 2021 December 31, 2020 Deferred revenue $ 275,844 $ 232,865 Long-term deferred revenue (1) 5,655 8,991 $ 281,499 $ 241,856 (1) Included in other long-term liabilities. The change in deferred revenue in 2021 was primarily due to new billings in advance of revenue recognition and $234.4 million of revenue recognized during the period included in deferred revenue as of December 31, 2020.

DEFERRED COMMISSIONS

DEFERRED COMMISSIONS	12 Months Ended
	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
DEFERRED COMMISSIONS	5. DEFERRED COMMISSIONS December 31, (in thousands) 2021 2020 Deferred commissions (1) $ 135,911 $ 108,624 (1) Included in other long-term assets. (in thousands) 2021 2020 2019 Amortization of deferred commissions (1) $ 41,387 $ 33,302 $ 29,152 (1) Included in selling and marketing expenses.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	6. PROPERTY AND EQUIPMENT (1) (in thousands) December 31, 2021 2020 Leasehold improvements $ 31,203 $ 52,335 Computer equipment 26,115 30,211 Furniture and fixtures 5,565 10,572 Computer software purchased 8,566 8,415 Computer software developed for internal use 19,463 18,542 Fixed assets in progress 4,262 2,077 95,174 122,152 Less: accumulated depreciation (68,337) (81,754) $ 26,837 $ 40,398 (1) Included in other long-term assets. (in thousands) 2021 2020 2019 Depreciation expense $ 24,606 $ 17,378 $ 14,771

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	7. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill (in thousands) 2021 2020 January 1, $ 79,231 $ 79,039 Acquisition 2,701 — Currency translation adjustments (9) 192 December 31, $ 81,923 $ 79,231 Intangibles Intangible assets are recorded at cost and amortized using the straight-line method over their estimated useful lives: December 31, 2021 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value (1) Client-related 4-10 years $ 63,165 $ (57,342) $ 5,823 Technology 2-10 years 67,142 (58,902) 8,240 Other 1-5 years 5,361 (5,361) — $ 135,668 $ (121,605) $ 14,063 (1) Included in other long-term assets. December 31, 2020 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value (1) Client-related 4-10 years $ 63,168 $ (55,877) $ 7,291 Technology 2-10 years 64,843 (56,386) 8,457 Other 1-5 years 5,361 (5,361) — $ 133,372 $ (117,624) $ 15,748 (1) Included in other long-term assets. Amortization of intangible assets was: (in thousands) 2021 2020 2019 Cost of revenue $ 2,516 $ 2,487 $ 3,500 Selling and marketing 1,471 1,483 3,125 $ 3,987 $ 3,970 $ 6,625 Future estimated intangible assets amortization: (in thousands) December 31, 2021 2022 $ 3,886 2023 3,618 2024 2,849 2025 2,509 2026 and thereafter 1,201 $ 14,063

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2021
Segment Reporting [Abstract]
SEGMENT INFORMATION	8. SEGMENT INFORMATION Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company derives substantially all of its revenue from the sale and support of one group of similar products and services – software that provides case management, business process management, and real-time decisioning solutions to improve customer engagement and operational excellence in the enterprise applications market. To assess performance, the Company’s CODM, the Chief Executive Officer, reviews financial information on a consolidated basis. Therefore, the Company determined it has one operating segment and one reporting unit. Long-lived assets related to the Company’s U.S. and international operations were: (Dollars in thousands) December 31, 2021 December 31, 2020 U.S. $ 20,548 77 % $ 31,339 78 % International 6,289 23 % 9,059 22 % $ 26,837 100 % $ 40,398 100 %

OTHER ASSETS AND LIABILITIES

OTHER ASSETS AND LIABILITIES	12 Months Ended
	Dec. 31, 2021
Other Assets and Liabilities [Abstract]
OTHER ASSETS AND LIABILITIES	9. OTHER ASSETS AND LIABILITIES Other current assets (in thousands) December 31, 2021 December 31, 2020 Income tax receivables $ 25,691 $ 44,148 Contract assets 12,530 15,296 Other 29,787 29,316 $ 68,008 $ 88,760 Other long-term assets (in thousands) December 31, 2021 December 31, 2020 Deferred income taxes $ 180,656 $ 88,068 Deferred commissions 135,911 108,624 Right of use assets 87,521 67,651 Capped call transactions 59,964 83,597 Property and equipment 26,837 40,398 Intangible assets 14,063 15,748 Contract assets 10,643 7,777 Other 26,006 22,980 $ 541,601 434,843 Other current liabilities (in thousands) December 31, 2021 December 31, 2020 Operating lease liabilities $ 6,989 $ 18,541 Dividends payable 2,454 2,428 $ 9,443 $ 20,969 Other long-term liabilities (in thousands) December 31, 2021 December 31, 2020 Deferred revenue $ 5,655 $ 8,991 Other 7,844 15,708 $ 13,499 $ 24,699

LEASES

LEASES	12 Months Ended
	Dec. 31, 2021
Leases [Abstract]
LEASES	10. LEASES Corporate headquarters In February 2021, the Company agreed to accelerate its exit from its previous corporate headquarters to October 1, 2021, in exchange for a one-time payment from its landlord of $18 million, which was amortized over the remaining lease term. The exit accelerated depreciation on the related leasehold improvements and reduced the Company’s future lease liabilities by $21.1 million and right of use assets by $20.3 million. On March 31, 2021 the Company leased office space at One Main Street, Cambridge, Massachusetts, to serve as its corporate headquarters. The 4.5 year lease includes a base rent of $2 million per year. New Waltham Office On July 6, 2021, the Company entered into an office space lease for 131 thousand square feet in Waltham, Massachusetts. The lease term of 11 years began on August 1, 2021. The annual rent equals the base rent plus a portion of building operating costs and real estate taxes. Rent first becomes payable on August 1, 2022. Base rent for the first year is approximately $6 million and will increase by 3% annually. In addition, the Company will receive an improvement allowance from the landlord of up to $11.8 million. This lease increased the Company’s lease liabilities and lease-related right of use assets by $42.1 million on August 1, 2021. Expense (in thousands) 2021 2020 2019 Fixed lease costs $ (1,694) $ 20,235 $ 18,250 Short-term lease costs 2,244 1,669 1,291 Variable lease costs 4,480 4,470 5,554 $ 5,030 $ 26,374 $ 25,095 Right of use assets and lease liabilities (in thousands) December 31, 2021 December 31, 2020 Right of use assets (1) $ 87,521 $ 67,651 Operating lease liabilities (2) $ 6,989 $ 18,541 Long-term operating lease liabilities $ 87,818 $ 59,053 (1) 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: December 31, 2021 December 31, 2020 Weighted-average remaining lease term 7.7 years 4.7 years Weighted-average discount rate (1) 4.4 % 5.4 % (1) The rates implicit in most of 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) December 31, 2021 2022 $ 8,942 2023 17,705 2024 16,411 2025 13,553 2026 9,840 Thereafter 48,458 Total lease payments 114,909 Less: imputed interest (1) (20,102) $ 94,807 (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 (1) (in thousands) 2021 2020 Cash paid for leases $ 18,428 $ 20,548 Right of use assets recognized for new leases and amendments (non-cash) $ 55,068 $ 24,276 (1) In 2021, the Company received $18 million as a one-time payment for our accelerated exit from our then corporate headquarters in Cambridge, Massachusetts. This payment has been excluded from the above table.

DEBT

DEBT	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
DEBT	11. 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 on September 1, 2020. 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 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. The conversion rate will be adjusted upon certain events, including spin-offs, tender offers, exchange offers, and certain stockholder distributions. 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 December 31, 2021, 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. Impact of the Notes The Company adopted ASU 2020-06 using the modified retrospective approach on January 1, 2021. The standard eliminates the liability and equity separation model for convertible instruments with a cash conversion feature. Before January 1, 2021, the Notes were separated into liability and equity components. • The initial carrying amount of the liability component was calculated by measuring a similar debt instrument’s fair value that does not have an associated conversion feature. The excess of the Notes’ principal amount over the initial carrying amount of the liability component, the debt discount, was amortized as interest expense over the Notes’ contractual term. • The equity component was recorded as an increase to additional paid-in capital and not remeasured. Upon adoption of ASU 2020-06 Carrying value of the Notes: (in thousands) December 31, 2021 December 31, 2020 Principal $ 600,000 $ 600,000 Unamortized debt discount — (71,222) Unamortized issuance costs (9,278) (10,575) Convertible senior notes, net $ 590,722 $ 518,203 Conversion options $ — $ 84,120 Issuance costs — (2,037) Deferred taxes — (20,479) Additional paid-in capital $ — $ 61,604 Interest expense related to the Notes: (in thousands) 2021 2020 Contractual interest expense (0.75% coupon) $ 4,500 $ 3,825 Amortization of debt discount — 12,898 Amortization of issuance costs 2,977 1,915 $ 7,477 $ 18,638 The effective interest rate for the Notes: 2021 2020 Weighted-average effective interest rate 1.3 % 4.3 % Future payments of principal and contractual interest: December 31, 2021 (in thousands) Principal Interest Total 2022 $ — $ 4,500 $ 4,500 2023 — 4,500 4,500 2024 — 4,500 4,500 2025 600,000 2,250 602,250 $ 600,000 $ 15,750 $ 615,750 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 cover 4.4 million shares (representing the number of shares for which the Notes are initially convertible) of the Company’s common stock. 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 the occurrence of 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 of the Capped Call Transactions, calculated following the governing documents, may not represent a fair value measurement. The Capped Call Transactions are classified as other long-term assets and remeasured to fair value at the end of each reporting period, resulting in a non-operating gain or loss. Change in capped call transactions: (in thousands) 2021 2020 January 1, $ 83,597 $ — Issuance — 51,900 Fair value adjustment (23,633) 31,697 December 31, $ 59,964 $ 83,597 Credit facility In November 2019, and as amended as of February 2020, July 2020, and September 2020, the Company entered into a five The Company is also required to comply with financial covenants, including: • Beginning with the fiscal quarter ended September 30, 2020 and ending with the fiscal quarter ended December 31, 2021, at least $200 million in cash and investments held by Pegasystems Inc. • Beginning with the quarter ended March 31, 2022, a maximum net consolidated leverage ratio of 3.5 to 1.0 (with a step-up in the event of certain acquisitions) and a minimum consolidated interest coverage ratio of 3.5 to 1.0. As of December 31, 2021 and December 31, 2020, the Company had no outstanding borrowings under the Credit Facility.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2021
Equity [Abstract]
STOCKHOLDERS' EQUITY	12. STOCKHOLDERS’ EQUITY Preferred stock The Company has 1 million authorized shares of preferred stock, $0.01 par value per share, of which none were issued and outstanding as of December 31, 2021. The Board of Directors has the authority to issue the shares of preferred stock in one or more series, to establish the number of shares to be included in each series, and to determine the designation, powers, preferences, and rights of the shares of each series and the qualifications, limitations, or restrictions thereof, without any further vote or action by the stockholders. The issuance of preferred stock could decrease the earnings and assets available for distribution to holders of common stock and may have the effect of delaying, deferring, or defeating a change in control of the Company. The Company had not issued any shares of preferred stock through December 31, 2021. Common stock The Company has 200 million authorized shares of common stock, $0.01 par value per share, of which 81.7 million shares were issued and outstanding as of December 31, 2021. Dividends declared 2021 2020 2019 Dividends declared (per share) $ 0.12 $ 0.12 $ 0.12 Dividend payments to stockholders (in thousands) $ 9,761 $ 9,628 $ 9,486 The Company paid a quarterly cash dividend of $0.03 per share in 2021, 2020, and 2019, however, the Board of Directors may terminate or modify the dividend program at any time without prior notice. Stock repurchases (in thousands) 2021 2020 2019 Shares Amount Shares Amount Shares Amount January 1, $ 37,726 $ 45,484 $ 6,620 Authorizations (1) 38,467 20,516 60,000 Repurchases (2) (432) (53,610) (278) (28,274) (333) (21,136) December 31, $ 22,583 $ 37,726 $ 45,484 (1) On June 8, 2021, the Company announced that the Board of Directors extended the current stock repurchase program’s expiration date to June 30, 2022 and increased the remaining stock repurchase authority to $60 million. (2) Purchases under this program have been made on the open market.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	13. 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 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 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 models use 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 both historical and implied volatility levels of the underlying equity security. The Company’s venture investments are recorded at fair value based on valuation methods using the observable transaction price and other unobservable inputs, including the volatility, rights, and obligations of the securities the Company holds. The Company’s assets and liabilities measured at fair value on a recurring basis: December 31, 2021 December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents $ 3,216 $ — $ — $ 3,216 $ 42,339 $ 14,000 $ — $ 56,339 Marketable securities $ — $ 202,814 $ — $ 202,814 $ — $ 293,269 $ — $ 293,269 Capped Call Transactions (1) (2) $ — $ 59,964 $ — $ 59,964 $ — $ 83,597 $ — $ 83,597 Venture investments (1) (3) $ — $ — $ 7,648 $ 7,648 $ — $ — $ 8,345 $ 8,345 (1) Included in other long-term assets. (2) See "Note 11. Debt" for additional information. (3) Investments in privately-held companies. Change in venture investments: (in thousands) 2021 2020 January 1, $ 8,345 $ 4,871 New investments 500 3,306 Sales of investments (2,449) (1,424) Changes in foreign exchange rates (68) 118 Changes in fair value: included in other income 100 1,374 included in other comprehensive income 1,220 100 December 31, $ 7,648 $ 8,345 The carrying value of certain other financial instruments, including receivables and accounts payable, approximates fair value due to these items’ relatively short maturity. Fair value of the Notes The Notes’ fair value (inclusive of the conversion feature embedded in the Notes) was $642.0 million as of December 31, 2021 and $706.5 million as of December 31, 2020. 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. See "Note 11. Debt" for additional information. Credit risk In addition to receivables, the Company is potentially subject to concentrations of credit risk from the Company’s cash, cash equivalents, and marketable securities. The Company’s cash and cash equivalents are generally held with large, diverse financial institutions worldwide to reduce the Company’s credit risk exposure. Investment policies have been implemented that limit purchases of marketable debt securities to investment-grade securities.

REVENUE

REVENUE	12 Months Ended
	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
REVENUE	14. REVENUE Geographic revenue (Dollars in thousands) 2021 2020 2019 U.S. $ 690,133 57 % $ 613,844 61 % $ 525,191 57 % Other Americas 61,339 5 % 49,441 5 % 60,536 7 % United Kingdom (“U.K.”) 117,580 10 % 91,517 9 % 87,382 10 % Europe (excluding U.K.), Middle East, and Africa 198,080 16 % 156,056 15 % 137,946 15 % Asia-Pacific 144,521 12 % 106,659 10 % 100,328 11 % $ 1,211,653 100 % $ 1,017,517 100 % $ 911,383 100 % Revenue streams (in thousands) 2021 2020 2019 Perpetual license $ 32,172 $ 28,558 $ 80,015 Subscription license 336,248 266,352 199,433 Revenue recognized at a point in time 368,420 294,910 279,448 Maintenance 320,257 296,709 280,580 Pega Cloud 300,966 208,268 133,746 Consulting 222,010 217,630 217,609 Revenue recognized over time 843,233 722,607 631,935 $ 1,211,653 $ 1,017,517 $ 911,383 (in thousands) 2021 2020 2019 Pega Cloud $ 300,966 $ 208,268 $ 133,746 Maintenance 320,257 296,709 280,580 Subscription services 621,223 504,977 414,326 Subscription license 336,248 266,352 199,433 Subscription 957,471 771,329 613,759 Perpetual license 32,172 28,558 80,015 Consulting 222,010 217,630 217,609 1,211,653 1,017,517 911,383 Remaining performance obligations ("Backlog") Expected future revenue from existing non-cancellable contracts: As of December 31, 2021: (Dollars in thousands) Subscription services Subscription Perpetual Consulting Total Maintenance Pega Cloud 1 year or less $ 234,917 $ 330,426 $ 153,467 $ 10,952 $ 41,411 $ 771,173 58 % 1-2 years 65,502 220,231 14,968 4,505 8,917 314,123 23 % 2-3 years 38,432 124,969 1,955 2,252 5,512 173,120 13 % Greater than 3 years 28,157 55,937 1,765 — 619 86,478 6 % $ 367,008 $ 731,563 $ 172,155 $ 17,709 $ 56,459 $ 1,344,894 100 % As of December 31, 2020: (Dollars in thousands) Subscription services Subscription Perpetual Consulting Total Maintenance Pega Cloud 1 year or less $ 227,803 $ 248,223 $ 105,920 $ 11,514 $ 19,226 $ 612,686 57 % 1-2 years 54,509 193,064 7,962 395 346 256,276 24 % 2-3 years 28,320 104,542 4,928 — 851 138,641 13 % Greater than 3 years 19,283 44,308 4 — 1,189 64,784 6 % $ 329,915 $ 590,137 $ 118,814 $ 11,909 $ 21,612 $ 1,072,387 100 %

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	15. STOCK-BASED COMPENSATION (in thousands) 2021 2020 2019 Cost of revenue $ 21,822 $ 20,796 $ 18,822 Selling and marketing 54,182 46,283 32,665 Research and development 25,413 22,885 18,938 General and administrative 14,530 13,104 10,484 $ 115,947 $ 103,068 $ 80,909 Income tax benefit $ (23,410) $ (20,464) $ (16,392) The Company periodically grants employees stock options and restricted stock units (“RSUs”) and non-employee Directors common stock and stock options. Most of the Company’s stock-based compensation arrangements vest over five years, with 20% vesting after one year and the remaining 80% vesting in equal quarterly installments over the remaining four years. The Company’s stock options have a term of ten years. The Company recognizes stock-based compensation using the accelerated attribution method, treating each vesting tranche as if it were an individual grant. The stock-based compensation expense recognized during a period is based on the value of the awards that are expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Ultimately, the Company recognizes the actual expense over the vesting period only for the shares that vest. Employees may 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. If elected by an employee, the equity amount is equal in value on the date of grant to 50% of the employee’s target incentive opportunity, based on the employee’s base salary. The number of RSUs granted is determined by dividing 50% of the employee’s target incentive opportunity by 85% of the closing price of the Company’s common stock on the grant date, less the present value of expected dividends during the vesting period. If elected, the award vests 100% on the following year’s CICP payout date. Vesting is conditioned upon the performance conditions of the CICP and on continued employment; if threshold funding does not occur, the RSUs will not vest. The Company considers vesting to be probable on the grant date and recognizes the associated stock-based compensation expense over the requisite service period beginning on the grant date and ending on the vesting date. The Company grants awards that allow for the settlement of vested stock options and RSUs on a net share basis (“net settled awards”). With net settled awards, the employee does not surrender any cash or shares upon exercise. Instead, the Company withholds the number of shares to cover the exercise price (in the case of stock options) and the minimum statutory tax withholding obligations (in the case of stock options and RSUs) from the shares that would otherwise be issued upon exercise or settlement. The exercise of stock options and settlement of RSUs on a net share basis results in fewer shares being issued by the Company. Stock-based compensation plans 2004 Long-Term Incentive Plan (as amended and restated) In 2004, the Company adopted the 2004 Long-Term Incentive Plan (as amended and restated, the “2004 Plan”) to provide employees, non-employee Directors, and consultants with opportunities to purchase stock through incentive stock options and non-qualified stock options. Subsequent amendments to the plan increased the number of shares authorized for issuance under the plan to 36 million, extended the term of the plan to 2030, and limited annual compensation to any non-employee Director to $0.5 million. As of December 31, 2021, 9.2 million shares were subject to outstanding options and stock-based awards under the 2004 Plan. 2006 Employee Stock Purchase Plan In 2006, the Company adopted the 2006 Employee Stock Purchase Plan (the “2006 ESPP”) under which employees may purchase up to an aggregate of one million shares of common stock, at a price equal to at least 85% of the fair market value of the Company’s common stock on the lesser of the commencement date or completion date for offerings under the plan, or such higher price as the Company’s Board of Directors may establish from time to time. In October 2012, the Company’s Board of Directors amended the 2006 ESPP to continue until no shares remain. Before January 1, 2021, the 2006 ESPP was non-compensatory as the Company’s Board of Directors set the purchase price at 95% of the fair market value on the completion date of the offering period. Commencing on January 1, 2021, the Company’s Board of Directors set the purchase price at 85% of the fair market value on the completion date of the offering period. (in thousands) 2021 Compensation expense from 2006 ESPP $ 1,860 As of December 31, 2021, 0.6 million shares had been issued under the plan. Shares issued and available for issuance During 2021, the Company issued 1.3 million shares to its employees and directors under the Company’s stock-based compensation plans. As of December 31, 2021, there were 10.4 million shares available for issuance for future equity grants under the Company’s stock plans, consisting of 10.0 million shares under the 2004 Plan and 0.4 million shares under the 2006 ESPP. Grant activity Stock options The Company estimates the fair value of stock options using a Black-Scholes option-pricing model. Key inputs used to estimate the fair value of stock options include the exercise price of the award, expected term of the option, expected volatility of the Company’s common stock over the option’s expected term, risk-free interest rate over the option’s expected term, and the Company’s expected annual dividend yield. The exercise price for stock options is greater than or equal to the shares’ fair market value at the grant date. The following table summarizes the Company’s fair value assumptions for stock options: 2021 2020 2019 Weighted-average grant-date fair value $ 37.74 $ 24.16 $ 19.10 Assumptions used in the Black-Scholes option-pricing model: Expected annual volatility (1) 35 % 31 % 32 % Expected term in years (2) 4.4 4.5 4.5 Risk-free interest rate (3) 0.6 % 0.7 % 2.4 % Expected annual dividend yield (4) 0.2 % 0.2 % 0.3 % (1) The expected annual volatility for each grant is determined based on the average of historic daily price changes of the Company’s common stock over a period, which approximates the expected option term. (2) The expected option term for each grant is determined based on the historical exercise behavior of employees and post-vesting employment termination behavior. (3) The risk-free interest rate is based on the yield of U.S. Treasury securities with a commensurate maturity with the expected option term at the time of grant. (4) The expected annual dividend yield is based on the weighted-average dividend yield assumptions used for options granted during the applicable period. The following table summarizes the combined stock option activity under the Company’s stock option plans for 2021: Shares Weighted-average Exercise Price Weighted-average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding as of January 1, 2021 7,391 $ 59.88 Granted 1,574 129.71 Exercised (1,170) 47.93 Forfeited (606) 85.69 Options outstanding as of December 31, 2021 7,189 $ 74.94 Vested and expected to vest as of December 31, 2021 6,176 $ 71.97 6.7 $ 267,722 Exercisable as of December 31, 2021 3,398 $ 50.06 5.4 $ 210,796 The aggregate intrinsic value of stock options exercised (i.e., the difference between the market price at exercise and the price paid by the employee at exercise) in 2021, 2020, and 2019 was $94.3 million, $126.8 million, and $63.3 million, respectively. The aggregate intrinsic value of stock options outstanding and exercisable as of December 31, 2021 is based on the difference between the closing price of the Company’s stock of $111.82 and the exercise price of the applicable stock options. As of December 31, 2021, the Company had unrecognized stock-based compensation expense related to the unvested portion of stock options of $39.8 million that is expected to be recognized as expense over a weighted-average period of 2.2 years. RSUs RSUs deliver to the recipient a right to receive a specified number of shares of the Company’s common stock upon vesting. The Company values its RSUs at the fair value of its common stock on the grant date, which is the closing price of its common stock on the grant date less the present value of expected dividends during the vesting period, as the recipient is not entitled to dividends during the requisite service period. The weighted-average grant-date fair value for RSUs granted in 2021, 2020, and 2019 was $129.03, $93.68, and $66.21, respectively. The following table summarizes the combined RSU activity for all grants, including the CICP, under the 2004 Plan for 2021: Shares Weighted- Average Grant-Date Aggregate Intrinsic Value Nonvested as of January 1, 2021 2,462 $ 74.78 Granted 945 129.03 Vested (972) 70.19 Forfeited (381) 88.01 Nonvested as of December 31, 2021 2,054 $ 99.36 $ 229,643 Expected to vest as of December 31, 2021 1,523 $ 101.32 $ 170,357 The fair value of RSUs vested in 2021, 2020, and 2019 was $122.5 million, $108.4 million, and $77.0 million, respectively. The aggregate intrinsic value of RSUs outstanding and expected to vest as of December 31, 2021 is based on the closing price of the Company’s stock of $111.82 as of December 31, 2021. As of December 31, 2021, the Company had $73.1 million of unrecognized stock-based compensation expense related to all unvested RSUs that is expected to be recognized as expense over a weighted-average period of 2.1 years. Common stock In 2021, the Company granted 0.01 million shares of common stock to Directors with a weighted-average grant-date fair value of $127.50 per share.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2021
Postemployment Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	16. EMPLOYEE BENEFIT PLANS The Company sponsors defined contribution plans for qualifying employees, including a 401(k) plan in the United States to which the Company makes discretionary matching contributions. Employee benefit plan expenses: (in thousands) 2021 2020 2019 U.S. 401(k) Plan $ 8,879 $ 8,109 $ 6,676 International plans 20,780 16,132 13,021 $ 29,659 $ 24,241 $ 19,697

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	17. INCOME TAXES The components of (loss) before (benefit from) income taxes are: (in thousands) 2021 2020 2019 Domestic $ (125,947) $ (59,281) $ (51,396) Foreign (6,040) (65,608) (83,450) $ (131,987) $ (124,889) $ (134,846) The components of (benefit from) income taxes are: (in thousands) 2021 2020 2019 Current: Federal $ 1,921 $ (11,251) $ 1,050 State 363 399 405 Foreign 4,105 7,113 3,449 Total current provision for (benefit from) 6,389 (3,739) 4,904 Deferred: Federal (42,214) (34,573) (25,356) State (9,413) (8,119) (5,143) Foreign (23,709) (17,085) (18,818) Total deferred (benefit) (75,336) (59,777) (49,317) $ (68,947) $ (63,516) $ (44,413) A reconciliation of the U.S federal statutory tax rate and the Company’s effective tax rate: (in thousands) 2021 2020 2019 U.S. federal income taxes at statutory rates $ (27,717) $ (26,227) $ (28,318) Valuation allowance (469) (5,881) 727 State income taxes, net of federal benefit and tax credits (7,217) (6,994) (4,450) Permanent differences 541 1,773 2,606 Federal research and experimentation credits (6,380) (5,716) (4,295) Tax effects of foreign activities 3,599 3,050 3,056 Tax-exempt income — — (91) Provision to return adjustments (2,016) 3,416 (5,460) Non-deductible compensation 5,464 1,806 1,716 Expiration of statutes and changes in estimates (2,250) 55 2,420 Excess tax benefits related to stock-based compensation (20,697) (25,797) (14,291) Cares Act — (10,576) — Impact of change in tax law (11,811) 7,489 1,908 Other 6 86 59 $ (68,947) $ (63,516) $ (44,413) Deferred income taxes Significant components of net deferred tax assets and liabilities are: December 31, (in thousands) 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 133,164 $ 88,129 Accruals and reserves 38,526 26,309 Interest expense carryforward 7,759 3,464 Software revenue 336 — Convertible senior notes 8,362 — Depreciation 3,764 4,795 Tax credit carryforwards 40,590 31,556 Other 1,015 370 Total deferred tax assets 233,516 154,623 Valuation allowances (25,855) (23,409) Total net deferred tax assets 207,661 131,214 Deferred tax liabilities: Capped call transactions (14,961) (20,858) Convertible senior notes — (6,473) Software revenue — (11,477) Intangibles (12,044) (4,338) Total deferred tax liabilities (27,005) (43,146) $ 180,656 $ 88,068 The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, the Company considers both positive and negative evidence related to the likelihood of realizing the deferred tax assets to determine, based on the weight of available evidence, whether it is more-likely-than-not that some or all of the deferred tax assets will not be realized. This determination requires significant judgment, including assumptions about future taxable income based on historical and projected information. There were no material changes in the valuation allowance in 2021. In 2020, the change was $6 million due to expiring acquisition net operating losses with a valuation allowance. As of December 31, 2021, the Company’s net operating losses and credit carryforwards are: (in thousands) Federal State Net operating losses (1) $ 203,835 $ 13,810 Net operating losses due to acquisitions (1) $ 64,847 $ 2,008 Credit carryforwards (2) $ 30,115 $ 1,516 Credit carryforwards due to acquisitions $ 640 $ 60 (1) Excludes federal and state net operating losses of $26.7 million and $0.8 million, respectively, from prior acquisitions that the Company expects will expire unutilized. (2) Excludes federal and state tax credits of $0.1 million and $9.1 million, respectively, that the Company expects will expire unutilized. Carryforward losses and credits expire between 2022 and 2039, except for the 2020 and 2021 federal net operating loss of $139.0 million and $1.0 million of state credits, which both have unlimited carryforward periods. The Company’s India subsidiary is primarily located in Special Economic Zones (“SEZs”) and is entitled to a tax holiday in India. The tax holiday reduces or eliminates income tax in India. The tax holiday in the Hyderabad SEZ is scheduled to expire in 2024. The tax holiday in the Bengaluru SEZ is scheduled to expire in 2022. Uncertain tax benefits A rollforward of the Company’s gross unrecognized tax benefits is: (in thousands) 2021 2020 2019 Balance as of January 1, $ 23,801 $ 23,271 $ 18,157 Additions for tax positions related to the current year 653 653 510 Additions for tax positions of prior years — 962 4,917 Reductions for tax positions of prior years (6,870) (1,085) (313) Balance as of December 31, $ 17,584 $ 23,801 $ 23,271 As of December 31, 2021, the Company had $17.6 million of total unrecognized tax benefits, which would decrease the Company’s effective tax rate if recognized. Tax examinations The Company files federal and state income tax returns in the U.S. and in various foreign jurisdictions. In the ordinary course of business, the Company and its subsidiaries are examined by various tax authorities, including the Internal Revenue Service in the U.S. As of December 31, 2021, the Company’s U.S. federal tax returns for the years 2014 through 2017 were under examination by the Internal Revenue Service. In addition, certain foreign jurisdictions are auditing the Company’s income tax returns for periods ranging from 2013 through 2019. The Company does not expect the results of these audits to have a material effect on the Company’s financial condition, results of operations, or cash flows. With few exceptions, the statute of limitations remains open in all jurisdictions for the tax years 2016 to the present.

(LOSS) PER SHARE

(LOSS) PER SHARE	12 Months Ended
	Dec. 31, 2021
Earnings Per Share [Abstract]
(LOSS) PER SHARE	18. (LOSS) PER SHARE Basic (loss) per share is calculated using the weighted-average number of common shares outstanding during the period. Diluted (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 (loss) per share: (in thousands, except per share amounts) 2021 2020 2019 Net (loss) $ (63,040) $ (61,373) $ (90,433) Weighted-average common shares outstanding 81,387 80,336 79,055 (Loss) per share, basic $ (0.77) $ (0.76) $ (1.14) Net (loss) $ (63,040) $ (61,373) $ (90,433) Stock options — — — RSUs — — — Effect of dilutive securities — — — Weighted-average common shares outstanding, assuming dilution (1) (2) (3) 81,387 80,336 79,055 (Loss) per share, diluted $ (0.77) $ (0.76) $ (1.14) Outstanding anti-dilutive stock options and RSUs (4) 5,862 6,278 5,911 (1) 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 an additional 4.4 million shares. (2) In periods of loss, all dilutive securities are excluded as their inclusion would be anti-dilutive. (3) The Company’s Capped Call Transactions convert to 4.4 million shares of the Company’s common stock (representing the number of shares for which the Notes are initially convertible). 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 (loss) per share. These awards may be dilutive in the future.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	19. COMMITMENTS AND CONTINGENCIES Commitments See "Note 10. 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 with respect to 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 our estimates will change in the near term and the effect may be material. As of December 31, 2021, the Company has not accrued a loss with respect to any litigation matter. Pegasystems Inc. v. Appian Corp. & Business Process Management Inc. On July 3, 2019, the Company filed suit in Massachusetts federal court against Appian Corp. (“Appian”) and Business Process Management, Inc. (“BPM”) relating to a BPM “Market Report” that Appian had used to promote itself against the Company. Pegasystems Inc. v. Appian Corp. & Business Process Management Inc. , No. 1:19-cv-11461 (D. Mass). The Company’s complaint alleges that the report and Appian’s marketing of it include false and misleading statements about the Company. The Company asked the court to order Appian to stop using the report, and Appian subsequently agreed to stop using the report. The Company also asked the court to award damages for false advertising, deceptive business practices, and commercial disparagement. On December 17, 2019, Appian asserted counterclaims against the Company seeking unspecified monetary damages and alleging certain of the Company’s past marketing materials included false and misleading statements, one of the marketing reports failed to disclose that the report’s author was paid by the Company, and that the Company defamed Appian in a LinkedIn post. On May 22, 2020, the court allowed in part the Company’s motion to dismiss the counterclaims brought by Appian, but denied the motion as to the third party report and the defamation count. As described below, on May 29, 2020, Appian then sued the Company in Virginia. On June 17, 2021, Appian asserted additional counterclaims against the Company seeking unspecified monetary damages and alleging that certain additional marketing materials used by the Company contained false or misleading statements. The Company believes the counterclaims brought by Appian against the Company are without merit, and the Company intends to vigorously pursue its claims against Appian and defend against the counterclaims brought against the Company in this matter. The Company is unable to reasonably estimate possible damages or a range of possible damages in this matter given the Company’s belief that the damages claimed by Appian fail to satisfy the required legal standard, the status of the proceeding, and due to the uncertainty as to how a jury may rule if this ultimately proceeds to trial. Appian Corp. v. Pegasystems Inc. & Youyong Zou On May 29, 2020, Appian sued the Company and an individual, Youyong Zou, in the Circuit Court of Fairfax County, Virginia in a matter titled Appian Corp. v. Pegasystems Inc. & Youyong Zou , No. 2020-07216 (Fairfax Cty. Ct.). Appian’s complaint alleges a relationship between the Company and a consultant in approximately 2013 and sets forth claims for misappropriation of trade secrets under the Virginia Uniform Trade Secrets Act, violation of the Virginia Computer Crimes Act, tortious interference with contract and business expectancy, and statutory and common law conspiracy. The court allowed Appian to file an amended complaint on November 4, 2021, alleging that, in the 2019 time frame, employees of the Company accessed free Appian product trials under false pretenses. The amended complaint withdrew the claim for tortious interference with contract. After Appian filed the amended complaint, the Company successfully moved to dismiss Appian’s conspiracy claims, which are no longer a part of the case. A jury trial with respect to the merits of the dispute is scheduled to begin on March 21, 2022. The Company believes the claims brought by Appian against the Company are without merit, that the Company has strong defenses to these claims and that, among other things, even were the jury to find that the Company misappropriated Appian’s alleged trade secrets, any alleged damages claimed by Appian are not supported by the necessary legal standard of proximate cause. The Company is unable to reasonably estimate possible damages or a range of possible damages given the Company’s belief that the damages claimed by Appian fail to satisfy the required legal standard and due to the uncertainty as to how a jury may rule.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Management estimates and reporting	Management estimates and reporting The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S.”) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ from those estimates. Accounts with reported amounts based on significant estimates and judgments include, but are not limited to, revenue, unbilled receivables, deferred revenue, deferred income taxes, deferred commissions, income taxes payable, convertible senior notes, capped call transactions, intangible assets, and goodwill.
Principles of consolidation	Principles of consolidationThe Company’s consolidated financial statements reflect Pegasystems Inc. and subsidiaries in which the Company holds a controlling financial interest.
Revenue and deferred commissions	Revenue The Company’s revenue is primarily derived from: • Subscription services, which is composed of revenue from Pega Cloud and maintenance. Pega Cloud is the Company’s hosted Pega Platform and software applications. Maintenance revenue is earned from providing client support, software upgrades, and bug fixes or patches. • Subscription license, which is composed of revenue from term license arrangements for the Company’s Pega Platform and software applications. Term licenses represent functional intellectual property and are delivered separately from maintenance and services. • Perpetual license, which is composed of revenue under perpetual license arrangements for the Company’s Pega Platform and software applications. Perpetual licenses represent functional intellectual property and are delivered separately from maintenance and services. • Consulting, which is primarily related to new software license implementations, training, and reimbursable costs. Performance obligations The Company’s software license and Pega Cloud arrangements often contain multiple performance obligations. If a contract contains multiple performance obligations, the Company accounts for each distinct performance obligation separately. The transaction price is allocated to the separate performance obligations on a relative stand-alone selling price basis. Any discounts or expected potential future price concessions are considered when determining the total transaction price. The Company’s policy is to exclude sales and similar taxes collected from clients from the determination of transaction price. The Company’s typical performance obligations are: Performance obligation How standalone selling price is typically determined When performance obligation is typically satisfied When payment is typically Due Income statement line item Perpetual license Residual approach Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time) Effective date of the license Perpetual License Term license Residual approach Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time) Annually, or more frequently, over the term of the license Subscription license Maintenance Consistent pricing relationship as a percentage of the related license and observable in stand-alone renewal transactions (1) Ratably over the term of the maintenance (over time) Annually, or more frequently, over the term of the maintenance Subscription services Pega Cloud Residual approach Ratably over the term of the service (over time) Annually, or more frequently, over the term of the service Subscription services Consulting Observable hourly rate for time and materials-based services in similar geographies Based on hours incurred to date (over time) Monthly Consulting Consulting Observable hourly rate for time and materials-based services in similar geographies multiplied by estimated hours for the project Based on hours incurred as a percentage of total estimated hours (over time) As contract milestones are achieved Consulting (1) Technical support and software updates are considered distinct services but accounted for as a single performance obligation, as they have the same pattern of transfer to the client. The Company utilizes the residual approach for software license and Pega Cloud performance obligations since the selling price is highly variable and stand-alone selling price is not discernible from past transactions or other observable evidence. Periodically, the Company reevaluates whether the residual approach remains appropriate. As required, the Company evaluates its residual approach estimate compared to all available observable data before concluding the estimate is representative of its stand-alone selling price. If the contract grants the client the option to acquire additional products or services, the Company assesses whether the option represents a material right to the client that the client would not receive without entering into that contract. Discounts on options to purchase additional products and services greater than discounts available to similar clients are accounted for as an additional performance obligation. During most of each client contract term, the amount invoiced is generally less than the amount of revenue recognized to date, primarily because we transfer control of the performance obligation related to the software license at the inception of the contract term. A significant portion of the total contract consideration is typically allocated to the license performance obligation. Therefore, our contracts often result in the recording of unbilled receivables and contract assets throughout most of the contract term. The Company records an unbilled receivable or contract asset when revenue recognized on a contract exceeds the billings. The Company recognizes an impairment on receivables and contract assets if, after contract inception, it becomes probable that payment is not collectible. The Company reviews receivables and contract assets on an individual basis for impairment. Variable consideration The Company’s arrangements can include variable fees, such as the option to purchase additional usage of a previously delivered software license. The Company may also provide pricing concessions to clients, a business practice that also gives rise to variable fees in contracts. For variable fees arising from the client’s acquisition of additional usage of a previously delivered software license, the Company applies the sales and usage-based royalties guidance related to a license of intellectual property and recognizes the revenue in the period the underlying sale or usage occurs. The Company includes variable fees in the determination of total transaction price if it is not probable that a future significant reversal of revenue will occur. The Company uses the expected value or most likely value amount, whichever is more appropriate for specific circumstances, to estimate variable consideration, and the estimates are based on the level of historical price concessions offered to clients. The variable consideration related to pricing concessions and other forms of variable consideration, including usage-based fees, have not been material to the Company’s consolidated financial statements. Significant financing components The Company generally does not intend to provide financing to its clients, as financing arrangements are not contemplated as part of the negotiated terms of contracts between the Company and its clients. Although there may be instances with an intervening period between the delivery of the license and the payment, typically in term license arrangements, the purpose of that timing difference is to align the client’s payment with the timing of the use of the software license or service. In certain circumstances, however, there are instances where revenue recognition timing differs from the timing of payment due to extended payment terms or fees that are non-proportional to the associated usage of software licenses. In these instances, the Company evaluates whether a significant financing component exists. This evaluation includes determining the difference between the consideration the client would have paid at the time the performance obligation was satisfied and the amount of consideration actually paid. Contracts that include a significant financing component are adjusted for the time value of money at the rate inherent in the contract, the client’s borrowing rate, or the Company’s incremental borrowing rate, depending upon the recipient of the financing. During 2021, 2020, and 2019, significant financing components were not material. Contract modifications The Company assesses contract modifications to determine: • if the additional products and services are distinct from the products and services in the original arrangement; and • if the amount of consideration expected for the added products and services reflects the stand-alone selling price of those products and services. A contract modification meeting both criteria is accounted for as a separate contract. A contract modification not meeting both criteria is considered a change to the original contract and is accounted for on either: • a prospective basis as a termination of the existing contract and the creation of a new contract; or • a cumulative catch-up basis. Deferred commissions The Company recognizes an asset for the incremental costs of obtaining a client contract, primarily related to sales commissions. The Company expects to benefit from those costs for more than one year, as the Company primarily pays sales commissions on the initial contract. As a result, there are no commensurate commissions paid on contract renewals. Deferred commissions are allocated to each performance obligation within the contract and amortized according to the transfer of underlying goods and services within those contracts and expected renewals. The expected benefit period is determined based on the length of the client contracts, client attrition rates, the underlying technology life-cycle, and the competitive marketplace’s influence in which the products and services are sold. Deferred costs allocated to maintenance and deferred costs for Pega Cloud arrangements are amortized over an average expected benefit period of five years. Deferred costs allocated to software licenses, and any expected renewals of term software licenses within the five years expected benefit period, are amortized at the point in time control of the software license is transferred. Deferred costs allocated to consulting are amortized over a period consistent with the pattern of transfer of control for the related services.
Financial instruments	Financial instruments The principal financial instruments held by the Company consist of cash equivalents, marketable securities, receivables, capped call transactions, and accounts payable. The Company considers debt securities that are readily convertible to known amounts of cash with maturities of three months or less from the purchase date to be cash equivalents. Interest is recorded when earned. The Company’s investments are classified as available-for-sale and are carried at fair value. Unrealized gains and losses considered temporary in nature are recorded as a component of accumulated other comprehensive (loss), net of related income taxes. The Company reviews all investments for reductions in fair value that are other-than-temporary. When such reductions occur, the investment cost is adjusted to fair value by recording a loss on investments in the consolidated statements of operations. Gains and losses on investments are calculated based upon the specific investment. See "Note 4. Receivables, Contract Assets, And Deferred Revenue", "Note 11. Debt", and "Note 13. Fair Value Measurements" for additional information.
Property and equipment	Property and equipment Property and equipment are recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are three years for computer equipment and five years for furniture and fixtures. Leasehold improvements are amortized over the lesser of the lease’s term or the useful life of the asset. Repairs and maintenance costs are expensed as incurred.
Leases	Leases All the Company’s leases are operating leases, primarily composed of office space 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.
Loss contingencies and legal costs	Loss contingencies and legal costs The Company accrues loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.
Internal-use software	Internal-use software The Company capitalizes and amortizes certain direct costs associated with computer software developed or purchased for internal use incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. The Company amortizes capitalized software costs generally over three
Goodwill	GoodwillGoodwill represents the residual purchase price paid in a business combination after the fair value of all identified assets and liabilities have been recorded. Goodwill is not amortized. The Company has a single reporting unit. The Company performed a qualitative assessment as of November 30, 2021, 2020, and 2019, and concluded that there was no impairment since it was not more-likely-than-not that the fair value of its reporting unit was less than its carrying value.
Intangible and long-lived assets	Intangible and long-lived assets The Company’s intangible assets are amortized using the straight-line method over their estimated useful life. The Company evaluates its long-lived tangible and intangible assets for impairment whenever events or changes in circumstances indicate that such assets’ carrying amount may not be recoverable. Impairment is assessed by comparing the undiscounted cash flows expected to be generated by the long-lived tangible or intangible assets to their carrying value. If impairment exists, the Company calculates the impairment by comparing the carrying value to its fair value as determined by discounted expected cash flows.
Cash equivalents	Cash equivalents Cash equivalents include money market funds, time deposits, and other investments with original maturities of three months or less.
Business combinations	Business combinations The Company uses its estimates and assumptions to assign a fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially established in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations.
Research and development and software development costs	Research and development and software development costs Research and development costs are expensed as incurred. Capitalization of computer software developed for resale begins upon the establishment of technological feasibility, generally demonstrated by a working model or an operative version of the computer software product. Such costs have not been material to date, as technological feasibility is established within a short time frame from the software’s general availability. As a result, no costs were capitalized in 2021, 2020, or 2019.
Stock-based compensation	Stock-based compensationThe Company recognizes stock-based compensation expense associated with equity awards based on the award’s fair value at the grant date. Stock-based compensation is recognized over the requisite service period, which is generally the vesting period of the equity award and is adjusted each period for anticipated forfeitures. See "Note 15. Stock-Based Compensation" for discussion of the Company’s key assumptions included in determining the fair value of its equity awards at the grant date.
Foreign currency translation and remeasurement	Foreign currency translation and remeasurement The translation of assets and liabilities for the Company’s subsidiaries with functional currencies other than the U.S. dollar are made at period-end exchange rates. Revenue and expense accounts are translated at the average exchange rates during the period transactions occur. The resulting translation adjustments are reflected in accumulated other comprehensive (loss). Realized and unrealized exchange gains or losses from transactions and remeasurement adjustments are reflected in foreign currency transaction gain (loss) in the accompanying consolidated statements of operations.
Accounting for income taxes	Accounting for income taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company regularly assesses the need for a valuation allowance against its deferred tax assets. Future realization of the Company’s deferred tax assets ultimately depends on sufficient taxable income within the available carryback or carryforward periods. Taxable income sources include taxable income in prior carryback years, future reversals of existing taxable temporary differences, the Company’s firm contractual backlog, tax planning strategies, and projected future taxable income. The Company records a valuation allowance to reduce its deferred tax assets to an amount it believes is more-likely-than-not to be realized. Changes in the valuation allowance impact income tax expense in the period of adjustment. The Company recognizes excess tax benefits when they are realized, as a reduction of the provision for income taxes. The Company assesses its income tax positions and records tax benefits based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more-likely-than-not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. For those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained, no tax benefit is recognized in the financial statements. The Company classifies liabilities for uncertain tax positions as non-current liabilities unless the uncertainty is expected to be resolved within one year. The Company classifies interest and penalties on uncertain tax positions as income tax expense.
Advertising expense	Advertising expenseAdvertising costs are expensed as incurred.
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 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 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 models use 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 both historical and implied volatility levels of the underlying equity security. The Company’s venture investments are recorded at fair value based on valuation methods using the observable transaction price and other unobservable inputs, including the volatility, rights, and obligations of the securities the Company holds.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Schedule of Performance Obligations	The Company’s typical performance obligations are: Performance obligation How standalone selling price is typically determined When performance obligation is typically satisfied When payment is typically Due Income statement line item Perpetual license Residual approach Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time) Effective date of the license Perpetual License Term license Residual approach Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time) Annually, or more frequently, over the term of the license Subscription license Maintenance Consistent pricing relationship as a percentage of the related license and observable in stand-alone renewal transactions (1) Ratably over the term of the maintenance (over time) Annually, or more frequently, over the term of the maintenance Subscription services Pega Cloud Residual approach Ratably over the term of the service (over time) Annually, or more frequently, over the term of the service Subscription services Consulting Observable hourly rate for time and materials-based services in similar geographies Based on hours incurred to date (over time) Monthly Consulting Consulting Observable hourly rate for time and materials-based services in similar geographies multiplied by estimated hours for the project Based on hours incurred as a percentage of total estimated hours (over time) As contract milestones are achieved Consulting (1) Technical support and software updates are considered distinct services but accounted for as a single performance obligation, as they have the same pattern of transfer to the client. Expected future revenue from existing non-cancellable contracts: As of December 31, 2021: (Dollars in thousands) Subscription services Subscription Perpetual Consulting Total Maintenance Pega Cloud 1 year or less $ 234,917 $ 330,426 $ 153,467 $ 10,952 $ 41,411 $ 771,173 58 % 1-2 years 65,502 220,231 14,968 4,505 8,917 314,123 23 % 2-3 years 38,432 124,969 1,955 2,252 5,512 173,120 13 % Greater than 3 years 28,157 55,937 1,765 — 619 86,478 6 % $ 367,008 $ 731,563 $ 172,155 $ 17,709 $ 56,459 $ 1,344,894 100 % As of December 31, 2020: (Dollars in thousands) Subscription services Subscription Perpetual Consulting Total Maintenance Pega Cloud 1 year or less $ 227,803 $ 248,223 $ 105,920 $ 11,514 $ 19,226 $ 612,686 57 % 1-2 years 54,509 193,064 7,962 395 346 256,276 24 % 2-3 years 28,320 104,542 4,928 — 851 138,641 13 % Greater than 3 years 19,283 44,308 4 — 1,189 64,784 6 % $ 329,915 $ 590,137 $ 118,814 $ 11,909 $ 21,612 $ 1,072,387 100 %

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Schedule of Marketable Securities	December 31, 2021 December 31, 2020 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Government debt $ 2,000 $ — $ (10) $ 1,990 $ 39,996 $ — $ (8) $ 39,988 Corporate debt 201,659 2 (837) 200,824 253,345 88 (152) 253,281 $ 203,659 $ 2 $ (847) $ 202,814 $ 293,341 $ 88 $ (160) $ 293,269

RECEIVABLES, CONTRACT ASSETS,_2

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE (Tables)	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
Summary of Accounts Receivable and Unbilled Receivable	Receivables (in thousands) December 31, 2021 December 31, 2020 Accounts receivable $ 182,717 $ 215,827 Unbilled receivables 226,714 207,155 Long-term unbilled receivables 129,789 113,278 $ 539,220 $ 536,260
Summary of Unbilled Receivables	Unbilled receivables Unbilled receivables are client-committed amounts for which revenue recognition precedes billing, and billing is solely subject to the passage of time. Unbilled receivables by expected billing date: (Dollars in thousands) December 31, 2021 1 year or less $ 226,714 64 % 1-2 years 83,988 23 % 2-5 years 45,801 13 % $ 356,503 100 %
Summary of Unbilled Receivables Based Upon Contract Effective Date	Unbilled receivables by contract effective date: (Dollars in thousands) December 31, 2021 2021 $ 182,427 51 % 2020 104,416 29 % 2019 34,544 10 % 2018 16,296 5 % 2017 and prior 18,820 5 % $ 356,503 100 %
Summary 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 completing a related performance obligation. (in thousands) December 31, 2021 December 31, 2020 Contract assets (1) $ 12,530 $ 15,296 Long-term contract assets (2) 10,643 7,777 $ 23,173 $ 23,073 (1) Included in other current assets. (2) Included in other long-term assets. Deferred revenue Deferred revenue consists of billings and payments received in advance of revenue recognition. (in thousands) December 31, 2021 December 31, 2020 Deferred revenue $ 275,844 $ 232,865 Long-term deferred revenue (1) 5,655 8,991 $ 281,499 $ 241,856 (1) Included in other long-term liabilities.
Summary of Major Clients	Major clients Clients that represented 10% or more of the Company’s total accounts receivable and unbilled receivables: December 31, 2021 December 31, 2020 Client A 10 % * * Client accounted for less than 10% of total accounts receivable and unbilled receivables.

DEFERRED COMMISSIONS (Tables)

DEFERRED COMMISSIONS (Tables)	12 Months Ended
	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Impairment of Deferred Contract Costs	December 31, (in thousands) 2021 2020 Deferred commissions (1) $ 135,911 $ 108,624
Schedule of Amortization of Deferred Contract Costs	(in thousands) 2021 2020 2019 Amortization of deferred commissions (1) $ 41,387 $ 33,302 $ 29,152 (1) Included in selling and marketing expenses.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment	(in thousands) December 31, 2021 2020 Leasehold improvements $ 31,203 $ 52,335 Computer equipment 26,115 30,211 Furniture and fixtures 5,565 10,572 Computer software purchased 8,566 8,415 Computer software developed for internal use 19,463 18,542 Fixed assets in progress 4,262 2,077 95,174 122,152 Less: accumulated depreciation (68,337) (81,754) $ 26,837 $ 40,398
Depreciation Expense	(in thousands) 2021 2020 2019 Depreciation expense $ 24,606 $ 17,378 $ 14,771

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in Carrying Amount of Goodwill	(in thousands) 2021 2020 January 1, $ 79,231 $ 79,039 Acquisition 2,701 — Currency translation adjustments (9) 192 December 31, $ 81,923 $ 79,231
Schedule of Amortizable Intangible Assets	Intangible assets are recorded at cost and amortized using the straight-line method over their estimated useful lives: December 31, 2021 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value (1) Client-related 4-10 years $ 63,165 $ (57,342) $ 5,823 Technology 2-10 years 67,142 (58,902) 8,240 Other 1-5 years 5,361 (5,361) — $ 135,668 $ (121,605) $ 14,063 (1) Included in other long-term assets. December 31, 2020 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value (1) Client-related 4-10 years $ 63,168 $ (55,877) $ 7,291 Technology 2-10 years 64,843 (56,386) 8,457 Other 1-5 years 5,361 (5,361) — $ 133,372 $ (117,624) $ 15,748 (1) Included in other long-term assets.
Amortization Expense of Acquired Intangibles	Amortization of intangible assets was: (in thousands) 2021 2020 2019 Cost of revenue $ 2,516 $ 2,487 $ 3,500 Selling and marketing 1,471 1,483 3,125 $ 3,987 $ 3,970 $ 6,625
Estimated Future Amortization Expense Related to Intangible Assets	Future estimated intangible assets amortization: (in thousands) December 31, 2021 2022 $ 3,886 2023 3,618 2024 2,849 2025 2,509 2026 and thereafter 1,201 $ 14,063

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2021
Segment Reporting [Abstract]
Long-Lived Assets by Geographic Area	Long-lived assets related to the Company’s U.S. and international operations were: (Dollars in thousands) December 31, 2021 December 31, 2020 U.S. $ 20,548 77 % $ 31,339 78 % International 6,289 23 % 9,059 22 % $ 26,837 100 % $ 40,398 100 %

OTHER ASSETS AND LIABILITIES (T

OTHER ASSETS AND LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2021
Other Assets and Liabilities [Abstract]
Schedule of Other Assets and Other Liabilities	Other current assets (in thousands) December 31, 2021 December 31, 2020 Income tax receivables $ 25,691 $ 44,148 Contract assets 12,530 15,296 Other 29,787 29,316 $ 68,008 $ 88,760 Other long-term assets (in thousands) December 31, 2021 December 31, 2020 Deferred income taxes $ 180,656 $ 88,068 Deferred commissions 135,911 108,624 Right of use assets 87,521 67,651 Capped call transactions 59,964 83,597 Property and equipment 26,837 40,398 Intangible assets 14,063 15,748 Contract assets 10,643 7,777 Other 26,006 22,980 $ 541,601 434,843 Other current liabilities (in thousands) December 31, 2021 December 31, 2020 Operating lease liabilities $ 6,989 $ 18,541 Dividends payable 2,454 2,428 $ 9,443 $ 20,969 Other long-term liabilities (in thousands) December 31, 2021 December 31, 2020 Deferred revenue $ 5,655 $ 8,991 Other 7,844 15,708 $ 13,499 $ 24,699

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2021
Leases [Abstract]
Schedule of Lease Expense	Expense (in thousands) 2021 2020 2019 Fixed lease costs $ (1,694) $ 20,235 $ 18,250 Short-term lease costs 2,244 1,669 1,291 Variable lease costs 4,480 4,470 5,554 $ 5,030 $ 26,374 $ 25,095
Schedule of Right of Use Asset and Lease Liabilities	Right of use assets and lease liabilities (in thousands) December 31, 2021 December 31, 2020 Right of use assets (1) $ 87,521 $ 67,651 Operating lease liabilities (2) $ 6,989 $ 18,541 Long-term operating lease liabilities $ 87,818 $ 59,053 (1) 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 Weighted Average and Discount Rate	The weighted-average remaining lease term and discount rate for the Company’s leases were: December 31, 2021 December 31, 2020 Weighted-average remaining lease term 7.7 years 4.7 years Weighted-average discount rate (1) 4.4 % 5.4 % (1) The rates implicit in most of 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 Lease Maturities after Adoption of 842	Maturities of lease liabilities: (in thousands) December 31, 2021 2022 $ 8,942 2023 17,705 2024 16,411 2025 13,553 2026 9,840 Thereafter 48,458 Total lease payments 114,909 Less: imputed interest (1) (20,102) $ 94,807 (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 Supplemental Cash Flow Lease Information	Cash flow information (1) (in thousands) 2021 2020 Cash paid for leases $ 18,428 $ 20,548 Right of use assets recognized for new leases and amendments (non-cash) $ 55,068 $ 24,276 (1) In 2021, the Company received $18 million as a one-time payment for our accelerated exit from our then corporate headquarters in Cambridge, Massachusetts. This payment has been excluded from the above table.

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Contractual Obligation, Fiscal Year Maturity Schedule	Carrying value of the Notes: (in thousands) December 31, 2021 December 31, 2020 Principal $ 600,000 $ 600,000 Unamortized debt discount — (71,222) Unamortized issuance costs (9,278) (10,575) Convertible senior notes, net $ 590,722 $ 518,203 Conversion options $ — $ 84,120 Issuance costs — (2,037) Deferred taxes — (20,479) Additional paid-in capital $ — $ 61,604 Interest expense related to the Notes: (in thousands) 2021 2020 Contractual interest expense (0.75% coupon) $ 4,500 $ 3,825 Amortization of debt discount — 12,898 Amortization of issuance costs 2,977 1,915 $ 7,477 $ 18,638 The effective interest rate for the Notes: 2021 2020 Weighted-average effective interest rate 1.3 % 4.3 % Future payments of principal and contractual interest: December 31, 2021 (in thousands) Principal Interest Total 2022 $ — $ 4,500 $ 4,500 2023 — 4,500 4,500 2024 — 4,500 4,500 2025 600,000 2,250 602,250 $ 600,000 $ 15,750 $ 615,750
Schedule of Derivative Instruments	Change in capped call transactions: (in thousands) 2021 2020 January 1, $ 83,597 $ — Issuance — 51,900 Fair value adjustment (23,633) 31,697 December 31, $ 59,964 $ 83,597

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2021
Equity [Abstract]
Summary of Dividends Declared and Dividend Payments	Dividends declared 2021 2020 2019 Dividends declared (per share) $ 0.12 $ 0.12 $ 0.12 Dividend payments to stockholders (in thousands) $ 9,761 $ 9,628 $ 9,486
Schedule of Treasury Stock	Stock repurchases (in thousands) 2021 2020 2019 Shares Amount Shares Amount Shares Amount January 1, $ 37,726 $ 45,484 $ 6,620 Authorizations (1) 38,467 20,516 60,000 Repurchases (2) (432) (53,610) (278) (28,274) (333) (21,136) December 31, $ 22,583 $ 37,726 $ 45,484 (1) On June 8, 2021, the Company announced that the Board of Directors extended the current stock repurchase program’s expiration date to June 30, 2022 and increased the remaining stock repurchase authority to $60 million. (2) Purchases under this program have been made on the open market.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value	The Company’s assets and liabilities measured at fair value on a recurring basis: December 31, 2021 December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents $ 3,216 $ — $ — $ 3,216 $ 42,339 $ 14,000 $ — $ 56,339 Marketable securities $ — $ 202,814 $ — $ 202,814 $ — $ 293,269 $ — $ 293,269 Capped Call Transactions (1) (2) $ — $ 59,964 $ — $ 59,964 $ — $ 83,597 $ — $ 83,597 Venture investments (1) (3) $ — $ — $ 7,648 $ 7,648 $ — $ — $ 8,345 $ 8,345 (1) Included in other long-term assets. (2) See "Note 11. Debt" for additional information. (3) Investments in privately-held companies.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation	Change in venture investments: (in thousands) 2021 2020 January 1, $ 8,345 $ 4,871 New investments 500 3,306 Sales of investments (2,449) (1,424) Changes in foreign exchange rates (68) 118 Changes in fair value: included in other income 100 1,374 included in other comprehensive income 1,220 100 December 31, $ 7,648 $ 8,345

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Revenue by Geographic Area	Geographic revenue (Dollars in thousands) 2021 2020 2019 U.S. $ 690,133 57 % $ 613,844 61 % $ 525,191 57 % Other Americas 61,339 5 % 49,441 5 % 60,536 7 % United Kingdom (“U.K.”) 117,580 10 % 91,517 9 % 87,382 10 % Europe (excluding U.K.), Middle East, and Africa 198,080 16 % 156,056 15 % 137,946 15 % Asia-Pacific 144,521 12 % 106,659 10 % 100,328 11 % $ 1,211,653 100 % $ 1,017,517 100 % $ 911,383 100 %
Disaggregation of Revenue	Revenue streams (in thousands) 2021 2020 2019 Perpetual license $ 32,172 $ 28,558 $ 80,015 Subscription license 336,248 266,352 199,433 Revenue recognized at a point in time 368,420 294,910 279,448 Maintenance 320,257 296,709 280,580 Pega Cloud 300,966 208,268 133,746 Consulting 222,010 217,630 217,609 Revenue recognized over time 843,233 722,607 631,935 $ 1,211,653 $ 1,017,517 $ 911,383 (in thousands) 2021 2020 2019 Pega Cloud $ 300,966 $ 208,268 $ 133,746 Maintenance 320,257 296,709 280,580 Subscription services 621,223 504,977 414,326 Subscription license 336,248 266,352 199,433 Subscription 957,471 771,329 613,759 Perpetual license 32,172 28,558 80,015 Consulting 222,010 217,630 217,609 1,211,653 1,017,517 911,383
Remaining Performance Obligations on Existing Contracts	The Company’s typical performance obligations are: Performance obligation How standalone selling price is typically determined When performance obligation is typically satisfied When payment is typically Due Income statement line item Perpetual license Residual approach Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time) Effective date of the license Perpetual License Term license Residual approach Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time) Annually, or more frequently, over the term of the license Subscription license Maintenance Consistent pricing relationship as a percentage of the related license and observable in stand-alone renewal transactions (1) Ratably over the term of the maintenance (over time) Annually, or more frequently, over the term of the maintenance Subscription services Pega Cloud Residual approach Ratably over the term of the service (over time) Annually, or more frequently, over the term of the service Subscription services Consulting Observable hourly rate for time and materials-based services in similar geographies Based on hours incurred to date (over time) Monthly Consulting Consulting Observable hourly rate for time and materials-based services in similar geographies multiplied by estimated hours for the project Based on hours incurred as a percentage of total estimated hours (over time) As contract milestones are achieved Consulting (1) Technical support and software updates are considered distinct services but accounted for as a single performance obligation, as they have the same pattern of transfer to the client. Expected future revenue from existing non-cancellable contracts: As of December 31, 2021: (Dollars in thousands) Subscription services Subscription Perpetual Consulting Total Maintenance Pega Cloud 1 year or less $ 234,917 $ 330,426 $ 153,467 $ 10,952 $ 41,411 $ 771,173 58 % 1-2 years 65,502 220,231 14,968 4,505 8,917 314,123 23 % 2-3 years 38,432 124,969 1,955 2,252 5,512 173,120 13 % Greater than 3 years 28,157 55,937 1,765 — 619 86,478 6 % $ 367,008 $ 731,563 $ 172,155 $ 17,709 $ 56,459 $ 1,344,894 100 % As of December 31, 2020: (Dollars in thousands) Subscription services Subscription Perpetual Consulting Total Maintenance Pega Cloud 1 year or less $ 227,803 $ 248,223 $ 105,920 $ 11,514 $ 19,226 $ 612,686 57 % 1-2 years 54,509 193,064 7,962 395 346 256,276 24 % 2-3 years 28,320 104,542 4,928 — 851 138,641 13 % Greater than 3 years 19,283 44,308 4 — 1,189 64,784 6 % $ 329,915 $ 590,137 $ 118,814 $ 11,909 $ 21,612 $ 1,072,387 100 %

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation Expense Included in Consolidated Statements of Operations	(in thousands) 2021 2020 2019 Cost of revenue $ 21,822 $ 20,796 $ 18,822 Selling and marketing 54,182 46,283 32,665 Research and development 25,413 22,885 18,938 General and administrative 14,530 13,104 10,484 $ 115,947 $ 103,068 $ 80,909 Income tax benefit $ (23,410) $ (20,464) $ (16,392)
Schedule of Compensating Balances	(in thousands) 2021 Compensation expense from 2006 ESPP $ 1,860
Weighted-Average Assumptions Used in Black-Scholes Option Valuation Model	The following table summarizes the Company’s fair value assumptions for stock options: 2021 2020 2019 Weighted-average grant-date fair value $ 37.74 $ 24.16 $ 19.10 Assumptions used in the Black-Scholes option-pricing model: Expected annual volatility (1) 35 % 31 % 32 % Expected term in years (2) 4.4 4.5 4.5 Risk-free interest rate (3) 0.6 % 0.7 % 2.4 % Expected annual dividend yield (4) 0.2 % 0.2 % 0.3 % (1) The expected annual volatility for each grant is determined based on the average of historic daily price changes of the Company’s common stock over a period, which approximates the expected option term. (2) The expected option term for each grant is determined based on the historical exercise behavior of employees and post-vesting employment termination behavior. (3) The risk-free interest rate is based on the yield of U.S. Treasury securities with a commensurate maturity with the expected option term at the time of grant. (4) The expected annual dividend yield is based on the weighted-average dividend yield assumptions used for options granted during the applicable period.
Combined Stock Option Activity	The following table summarizes the combined stock option activity under the Company’s stock option plans for 2021: Shares Weighted-average Exercise Price Weighted-average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding as of January 1, 2021 7,391 $ 59.88 Granted 1,574 129.71 Exercised (1,170) 47.93 Forfeited (606) 85.69 Options outstanding as of December 31, 2021 7,189 $ 74.94 Vested and expected to vest as of December 31, 2021 6,176 $ 71.97 6.7 $ 267,722 Exercisable as of December 31, 2021 3,398 $ 50.06 5.4 $ 210,796
Combined Restricted Stock Units Activity	The following table summarizes the combined RSU activity for all grants, including the CICP, under the 2004 Plan for 2021: Shares Weighted- Average Grant-Date Aggregate Intrinsic Value Nonvested as of January 1, 2021 2,462 $ 74.78 Granted 945 129.03 Vested (972) 70.19 Forfeited (381) 88.01 Nonvested as of December 31, 2021 2,054 $ 99.36 $ 229,643 Expected to vest as of December 31, 2021 1,523 $ 101.32 $ 170,357

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2021
Postemployment Benefits [Abstract]
Summary of Defined Contribution Plans Expenses	Employee benefit plan expenses: (in thousands) 2021 2020 2019 U.S. 401(k) Plan $ 8,879 $ 8,109 $ 6,676 International plans 20,780 16,132 13,021 $ 29,659 $ 24,241 $ 19,697

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Components of (Loss) Income before (Benefit) Provision from Income Taxes	The components of (loss) before (benefit from) income taxes are: (in thousands) 2021 2020 2019 Domestic $ (125,947) $ (59,281) $ (51,396) Foreign (6,040) (65,608) (83,450) $ (131,987) $ (124,889) $ (134,846)
Components of Provision for Income Taxes	The components of (benefit from) income taxes are: (in thousands) 2021 2020 2019 Current: Federal $ 1,921 $ (11,251) $ 1,050 State 363 399 405 Foreign 4,105 7,113 3,449 Total current provision for (benefit from) 6,389 (3,739) 4,904 Deferred: Federal (42,214) (34,573) (25,356) State (9,413) (8,119) (5,143) Foreign (23,709) (17,085) (18,818) Total deferred (benefit) (75,336) (59,777) (49,317) $ (68,947) $ (63,516) $ (44,413)
Reconciliation of Effective Income Tax Rate from Statutory Federal Income Tax Rate	A reconciliation of the U.S federal statutory tax rate and the Company’s effective tax rate: (in thousands) 2021 2020 2019 U.S. federal income taxes at statutory rates $ (27,717) $ (26,227) $ (28,318) Valuation allowance (469) (5,881) 727 State income taxes, net of federal benefit and tax credits (7,217) (6,994) (4,450) Permanent differences 541 1,773 2,606 Federal research and experimentation credits (6,380) (5,716) (4,295) Tax effects of foreign activities 3,599 3,050 3,056 Tax-exempt income — — (91) Provision to return adjustments (2,016) 3,416 (5,460) Non-deductible compensation 5,464 1,806 1,716 Expiration of statutes and changes in estimates (2,250) 55 2,420 Excess tax benefits related to stock-based compensation (20,697) (25,797) (14,291) Cares Act — (10,576) — Impact of change in tax law (11,811) 7,489 1,908 Other 6 86 59 $ (68,947) $ (63,516) $ (44,413)
Components of Net Deferred Tax Assets and Liabilities	Significant components of net deferred tax assets and liabilities are: December 31, (in thousands) 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 133,164 $ 88,129 Accruals and reserves 38,526 26,309 Interest expense carryforward 7,759 3,464 Software revenue 336 — Convertible senior notes 8,362 — Depreciation 3,764 4,795 Tax credit carryforwards 40,590 31,556 Other 1,015 370 Total deferred tax assets 233,516 154,623 Valuation allowances (25,855) (23,409) Total net deferred tax assets 207,661 131,214 Deferred tax liabilities: Capped call transactions (14,961) (20,858) Convertible senior notes — (6,473) Software revenue — (11,477) Intangibles (12,044) (4,338) Total deferred tax liabilities (27,005) (43,146) $ 180,656 $ 88,068
Summary of Operating Loss Carryforwards	As of December 31, 2021, the Company’s net operating losses and credit carryforwards are: (in thousands) Federal State Net operating losses (1) $ 203,835 $ 13,810 Net operating losses due to acquisitions (1) $ 64,847 $ 2,008 Credit carryforwards (2) $ 30,115 $ 1,516 Credit carryforwards due to acquisitions $ 640 $ 60 (1) Excludes federal and state net operating losses of $26.7 million and $0.8 million, respectively, from prior acquisitions that the Company expects will expire unutilized.
Summary of Credit Carryforwards	As of December 31, 2021, the Company’s net operating losses and credit carryforwards are: (in thousands) Federal State Net operating losses (1) $ 203,835 $ 13,810 Net operating losses due to acquisitions (1) $ 64,847 $ 2,008 Credit carryforwards (2) $ 30,115 $ 1,516 Credit carryforwards due to acquisitions $ 640 $ 60 (1) Excludes federal and state net operating losses of $26.7 million and $0.8 million, respectively, from prior acquisitions that the Company expects will expire unutilized.
Reconciliation of Beginning and Ending Balances of Gross Unrecognized Tax Benefits	A rollforward of the Company’s gross unrecognized tax benefits is: (in thousands) 2021 2020 2019 Balance as of January 1, $ 23,801 $ 23,271 $ 18,157 Additions for tax positions related to the current year 653 653 510 Additions for tax positions of prior years — 962 4,917 Reductions for tax positions of prior years (6,870) (1,085) (313) Balance as of December 31, $ 17,584 $ 23,801 $ 23,271

(LOSS) PER SHARE (Tables)

(LOSS) PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2021
Earnings Per Share [Abstract]
Summary of Basic and Diluted Earnings Per Share	Calculation of (loss) per share: (in thousands, except per share amounts) 2021 2020 2019 Net (loss) $ (63,040) $ (61,373) $ (90,433) Weighted-average common shares outstanding 81,387 80,336 79,055 (Loss) per share, basic $ (0.77) $ (0.76) $ (1.14) Net (loss) $ (63,040) $ (61,373) $ (90,433) Stock options — — — RSUs — — — Effect of dilutive securities — — — Weighted-average common shares outstanding, assuming dilution (1) (2) (3) 81,387 80,336 79,055 (Loss) per share, diluted $ (0.77) $ (0.76) $ (1.14) Outstanding anti-dilutive stock options and RSUs (4) 5,862 6,278 5,911 (1) 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 an additional 4.4 million shares. (2) In periods of loss, all dilutive securities are excluded as their inclusion would be anti-dilutive. (3) The Company’s Capped Call Transactions convert to 4.4 million shares of the Company’s common stock (representing the number of shares for which the Notes are initially convertible). 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 (loss) per share. These awards may be dilutive in the future.

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Amortization period for deferred contract costs				5 years
Goodwill impairment	$ 0	$ 0	$ 0
Capitalized computer software cost				$ 0	$ 0	$ 0
More-likely-than-not benefit likelihood percentage being realized upon ultimate settlement with taxing authority resulting from sustainability of tax examination				50.00%
Advertising costs				$ 11,800,000	$ 8,700,000	$ 6,700,000
Computer Equipment
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives				3 years
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful lives				5 years
Minimum | Internal Use Software
Property, Plant and Equipment [Line Items]
Useful life of capitalized software				3 years
Maximum | Internal Use Software
Property, Plant and Equipment [Line Items]
Useful life of capitalized software				5 years

MARKETABLE SECURITIES (Details)

MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 203,659	$ 293,341
Unrealized Gains	2	88
Unrealized Losses	(847)	(160)
Fair Value	202,814	293,269
Government debt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,000	39,996
Unrealized Gains	0	0
Unrealized Losses	(10)	(8)
Fair Value	1,990	39,988
Corporate debt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	201,659	253,345
Unrealized Gains	2	88
Unrealized Losses	(837)	(152)
Fair Value	$ 200,824	$ 253,281

MARKETABLE SECURITIES - Additio

MARKETABLE SECURITIES - Additional Information (Details)	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Weighted-average remaining maturity	1 year 2 months 12 days

RECEIVABLES, CONTRACT ASSETS,_3

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Summary of Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Accounts receivable	$ 182,717	$ 215,827
Unbilled receivables	226,714	207,155
Long-term unbilled receivables	129,789	113,278
Total receivables	$ 539,220	$ 536,260

RECEIVABLES, CONTRACT ASSETS,_4

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Summary of Unbilled Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
1 year or less	$ 226,714	$ 207,155
1-2 years	83,988
2-5 years	45,801
Total	$ 356,503
Percentage of unbilled receivables, 1 Year or Less	64.00%
Percentage of unbilled receivables, 1-2 Years	23.00%
Percentage of unbilled receivables, 2-5 Years	13.00%
Total percentage of unbilled receivables	100.00%

RECEIVABLES, CONTRACT ASSETS,_5

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE- Contract Effective (Details) $ in Thousands	Dec. 31, 2021USD ($)
Receivables [Abstract]
2021	$ 182,427
2020	104,416
2019	34,544
2018	16,296
2017 and prior	18,820
Unbilled revenue total	$ 356,503
2021	51.00%
2020	29.00%
2019	10.00%
2018	5.00%
2017 and prior	5.00%
Total percentage of unbilled revenue	100.00%

RECEIVABLES, CONTRACT ASSETS,_6

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Summary of Major Clients (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Concentration Risk [Line Items]
Client A	100.00%	100.00%	100.00%
Client A | Credit concentration risk | Accounts receivable
Concentration Risk [Line Items]
Client A	10.00%

RECEIVABLES, CONTRACT ASSETS,_7

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Summary of Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Contract assets	$ 12,530	$ 15,296
Contract assets	10,643	7,777
Total contract assets	23,173	23,073
Deferred revenue	275,844	232,865
Long-term deferred revenue	5,655	8,991
Total deferred revenue	$ 281,499	$ 241,856

RECEIVABLES, CONTRACT ASSETS,_8

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021USD ($)
Receivables [Abstract]
Revenue recognized during the period that was included in deferred revenue	$ 234.4

DEFERRED COMMISSIONS - Schedule

DEFERRED COMMISSIONS - Schedule of Impairment of Deferred Commissions (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deferred commissions	$ 135,911	$ 108,624

DEFERRED COMMISSIONS - Schedu_2

DEFERRED COMMISSIONS - Schedule of Amortization of Deferred Commissions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Amortization of deferred commissions	$ 41,387	$ 33,302	$ 29,152

PROPERTY AND EQUIPMENT - Compon

PROPERTY AND EQUIPMENT - Components of Property and Equipment, net (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 95,174	$ 122,152
Less: accumulated depreciation	(68,337)	(81,754)
Property and equipment, net	26,837	40,398
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	31,203	52,335
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	26,115	30,211
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,565	10,572
Computer software purchased
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,566	8,415
Computer software developed for internal use
Property, Plant and Equipment [Line Items]
Property and equipment, gross	19,463	18,542
Fixed assets in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,262	$ 2,077

PROPERTY AND EQUIPMENT - Additi

PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 24,606	$ 17,378	$ 14,771

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Roll Forward]
Beginning balance	$ 79,231	$ 79,039
Acquisition	2,701	0
Currency translation adjustments	(9)	192
Ending balance	$ 81,923	$ 79,231

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Amortizable Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Other Intangible Assets [Line Items]
Cost	$ 135,668	$ 133,372
Accumulated Amortization	(121,605)	(117,624)
Net book value	14,063	15,748
Client-related
Goodwill and Other Intangible Assets [Line Items]
Cost	63,165	63,168
Accumulated Amortization	(57,342)	(55,877)
Net book value	5,823	7,291
Technology
Goodwill and Other Intangible Assets [Line Items]
Cost	67,142	64,843
Accumulated Amortization	(58,902)	(56,386)
Net book value	8,240	8,457
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_5

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense of Acquired Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 3,987	$ 3,970	$ 6,625
Cost of revenue
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	2,516	2,487	3,500
Selling and marketing
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 1,471	$ 1,483	$ 3,125

GOODWILL AND OTHER INTANGIBLE_6

GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Future Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Future estimated amortization expense, 2022	$ 3,886
Future estimated amortization expense, 2023	3,618
Future estimated amortization expense, 2024	2,849
Future estimated amortization expense, 2025	2,509
Future estimated amortization expense, 2026 and after	1,201
Net book value	$ 14,063	$ 15,748

SEGMENT INFORMATION - Additiona

SEGMENT INFORMATION - Additional Information (Details)	12 Months Ended
	Dec. 31, 2021unitsegment
Segment Reporting [Abstract]
Number of operating segments | segment	1
Number of reporting units | unit	1

SEGMENT INFORMATION - Long Live

SEGMENT INFORMATION - Long Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Geographic Areas, Long-Lived Assets [Abstract]
Property and equipment	$ 26,837	$ 40,398
Long-lived assets percentage	100.00%	100.00%
U.S.
Geographic Areas, Long-Lived Assets [Abstract]
Property and equipment	$ 20,548	$ 31,339
Long-lived assets percentage	77.00%	78.00%
International
Geographic Areas, Long-Lived Assets [Abstract]
Property and equipment	$ 6,289	$ 9,059
Long-lived assets percentage	23.00%	22.00%

OTHER ASSETS AND LIABILITIES (D

OTHER ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Other Assets and Liabilities [Abstract]
Income tax receivables	$ 25,691	$ 44,148
Contract assets	12,530	15,296
Other	29,787	29,316
Other current assets	68,008	88,760
Deferred income taxes	180,656	88,068
Deferred commissions	135,911	108,624
Right of use assets	87,521	67,651
Capped call transactions	59,964	83,597	$ 0
Property and equipment	26,837	40,398
Intangible assets	14,063	15,748
Contract assets	10,643	7,777
Other	26,006	22,980
Other long-term assets	541,601	434,843
Operating lease liabilities	6,989	18,541
Dividends payable	2,454	2,428	$ 2,388
Other Liabilities, Current, Total	9,443	20,969
Deferred revenue	5,655	8,991
Other	7,844	15,708
Other Liabilities, Noncurrent, Total	$ 13,499	$ 24,699

LEASES - Narrative (Details)

LEASES - Narrative (Details) ft² in Thousands, $ in Thousands	Jul. 06, 2021USD ($)ft²	Mar. 31, 2021USD ($)	Feb. 28, 2021USD ($)	Dec. 31, 2021USD ($)	Aug. 01, 2021USD ($)	Dec. 31, 2020USD ($)
Lessee, Lease, Description [Line Items]
Gain lease termination			$ 18,000	$ 18,000
Decrease in lease liabilities			21,100
Decrease in operating assets			$ 20,300
Base rent to paid, year one				8,942
Lease liability				94,807
Right of use assets				$ 87,521		$ 67,651
Building
Lessee, Lease, Description [Line Items]
Term of contract	11 years	4 years 6 months
Based rent to paid (annually per year)		$ 2,000
Area of office space lease (in square feet) | ft²	131
Base rent to paid, year one	$ 6,000
Base rent increase percentage	0.03
Improvement allowance	$ 11,800
Lease liability					$ 42,100
Right of use assets					$ 42,100

LEASES - Operating Lease Expens

LEASES - Operating Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Fixed lease costs	$ (1,694)	$ 20,235	$ 18,250
Short-term lease costs	2,244	1,669	1,291
Variable lease costs	4,480	4,470	5,554
Operating lease expenses	$ 5,030	$ 26,374	$ 25,095

LEASES Right of Use Assets (Det

LEASES Right of Use Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Right of use assets	$ 87,521	$ 67,651
Operating lease liabilities	6,989	18,541
Long-term operating lease liabilities	$ 87,818	$ 59,053
Operating lease, right-of-use asset, statement of financial position	Other long-term assets	Other long-term assets
Operating lease, liability, current, statement of financial position	Other current liabilities	Other current liabilities

LEASES - Remaining Lease Term (

LEASES - Remaining Lease Term (Details)	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Weighted-average remaining lease term	7 years 8 months 12 days	4 years 8 months 12 days
Weighted-average discount rate	4.40%	5.40%

LEASES - Maturities after adopt

LEASES - Maturities after adoption of 842 (Details) $ in Thousands	Dec. 31, 2021USD ($)
Leases [Abstract]
2022	$ 8,942
2023	17,705
2024	16,411
2025	13,553
2026	9,840
Thereafter	48,458
Total lease payments	114,909
Less: imputed interest	(20,102)
Total lease liability	$ 94,807

LEASES - Cash Flow information

LEASES - Cash Flow information (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2021	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Cash paid for leases		$ 18,428	$ 20,548
Right of use assets recognized for new leases and amendments (non-cash)		55,068	$ 24,276
Gain lease termination	$ 18,000	$ 18,000

DEBT - Convertible Senior Notes

DEBT - Convertible Senior Notes Narrative (Details)	Jan. 01, 2021USD ($)	Feb. 29, 2020USD ($)day$ / shares	Dec. 31, 2021USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Debt Instrument [Line Items]
Redemption percentage		100.00%
Convertible senior notes, net			$ 590,722,000	$ 518,203,000
Impact of ASU adoption			416,088,000	$ 542,172,000	$ 539,010,000	$ 621,531,000
Cumulative-effect adjustment from adoption of ASU 2020-06	Accounting Standards Update 2020-06 [Member]			Accounting Standards Update 2020-06 [Member]
Retained earnings
Debt Instrument [Line Items]
Impact of ASU adoption			$ 276,449,000	$ 339,879,000	$ 410,919,000	$ 510,863,000
Cumulative Effect, Period of Adoption, Adjustment
Debt Instrument [Line Items]
Convertible senior notes, net	$ 69,500,000
Impact of ASU adoption				(52,205,000)
Cumulative Effect, Period of Adoption, Adjustment | Retained earnings
Debt Instrument [Line Items]
Impact of ASU adoption	9,400,000			$ 9,399,000
Cumulative Effect, Period of Adoption, Adjusted Balance
Debt Instrument [Line Items]
Convertible senior notes, net	$ 587,700,000
On or after March 1, 2023
Debt Instrument [Line Items]
Redemption percentage		100.00%
Convertible debt
Debt Instrument [Line Items]
Face amount		$ 600,000,000
Interest rate		0.75%	0.75%	0.75%
Initial conversion rate		7.4045
Debt conversion amount		$ 1,000
Initial conversion price (in dollars per share) | $ / shares		$ 135.05
Convertible debt | After the calendar quarter ending on June 30, 2020
Debt Instrument [Line Items]
Threshold percentage of stock price trigger		130.00%
Threshold trading days | day		20
Threshold consecutive trading days | day		30
Convertible debt | Measurement period
Debt Instrument [Line Items]
Threshold percentage of stock price trigger		98.00%
Threshold consecutive trading days | day		5
Threshold consecutive business days | day		5
Convertible debt | On or after March 1, 2023
Debt Instrument [Line Items]
Threshold percentage of stock price trigger		130.00%
Threshold trading days | day		20
Threshold consecutive trading days | day		30

DEBT - Net Carrying Amount (Det

DEBT - Net Carrying Amount (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Additional paid-in capital	$ 145,810	$ 204,432
Convertible debt
Debt Instrument [Line Items]
Principal	600,000	600,000
Unamortized debt discount	0	(71,222)
Unamortized issuance costs	(9,278)	(10,575)
Convertible senior notes, net	590,722	518,203
Conversion options	0	84,120
Less: issuance costs	0	(2,037)
Deferred taxes	0	(20,479)
Additional paid-in capital	$ 0	$ 61,604

DEBT - Interest Expense (Detail

DEBT - Interest Expense (Details) - Convertible debt - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 29, 2020	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Interest rate	0.75%	0.75%	0.75%
Contractual interest expense (0.75% coupon)		$ 4,500	$ 3,825
Amortization of debt discount		0	12,898
Amortization of issuance costs		2,977	1,915
Interest expense		$ 7,477	$ 18,638
Weighted-average effective interest rate		1.30%	4.30%

DEBT - Future Payments of Princ

DEBT - Future Payments of Principal and Contractual Interest (Details) - Convertible debt - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Principal
2022	$ 0
2023	0
2024	0
2025	600,000
Principal, total due	600,000	$ 600,000
Interest
2022	4,500
2023	4,500
2024	4,500
2025	2,250
Interest expense, total due	15,750
Total
2022	4,500
2023	4,500
2024	4,500
2025	602,250
Principal and interest, total due	$ 615,750

DEBT - Capped Call Transactions

DEBT - Capped Call Transactions (Details) $ in Thousands, shares in Millions	1 Months Ended	12 Months Ended
	Feb. 29, 2020$ / derivativeshares	Dec. 31, 2021USD ($)$ / derivativeshares	Dec. 31, 2020USD ($)$ / derivativeshares	Dec. 31, 2019USD ($)$ / derivativeshares
Debt Disclosure [Abstract]
Number of shares issuable upon conversion | shares	4.4	4.4	4.4	4.4
Cap price (in dollars per share) | $ / derivative	196.44	196.44	196.44	196.44
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance		$ 83,597	$ 0
Issuance		0	51,900
Fair value adjustment		(23,633)	31,697
Ending balance		$ 59,964	$ 83,597	$ 0

DEBT - Credit Facility (Details

DEBT - Credit Facility (Details)	1 Months Ended	15 Months Ended
	Sep. 30, 2020USD ($)	Dec. 31, 2021USD ($)	Mar. 31, 2022	Dec. 31, 2020USD ($)
Debt Instrument [Line Items]
Remaining borrowing capacity		$ 0		$ 0
PNC Bank, National Association | Forecast
Debt Instrument [Line Items]
Interest coverage ratio, minimum			3.5
Credit Agreement | PNC Bank, National Association
Debt Instrument [Line Items]
Minimum required cash and investments held		$ 200,000,000
Credit Agreement | PNC Bank, National Association | Forecast
Debt Instrument [Line Items]
Consolidated leverage ratio, maximum			3.5
Line of credit | PNC Bank, National Association | Revolving credit facility
Debt Instrument [Line Items]
Debt instrument term	5 years
Senior notes	$ 100,000,000
Aggregate commitment	$ 200,000,000

STOCKHOLDERS' EQUITY - Addition

STOCKHOLDERS' EQUITY - Additional Information (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Equity [Abstract]
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (shares)	0
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	81,712,000	80,890,000
Common stock, shares outstanding (in shares)	81,712,000	80,890,000
Quarterly cash dividend intended to pay (in dollars per share)	$ 0.03

STOCKHOLDERS' EQUITY - Summary

STOCKHOLDERS' EQUITY - Summary of Dividends Declared and Paid (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.12	$ 0.12	$ 0.12
Dividend payments to stockholders	$ 9,761	$ 9,628	$ 9,486

STOCKHOLDERS' EQUITY - Stock Re

STOCKHOLDERS' EQUITY - Stock Repurchases (Details) - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jun. 15, 2020
Equity [Abstract]
Repurchases unsettled (in shares)	(432)	(278)	(333)
Stock Repurchase Program, Remaining Authorized Repurchase Amount [Roll Forward]
Authorization remaining, beginning of period	$ 37,726,000	$ 45,484,000	$ 6,620,000
Authorizations	38,467,000	20,516,000	60,000,000
Repurchases	(53,610,000)	(28,274,000)	(21,136,000)
Authorization remaining, end of period	$ 22,583,000	$ 37,726,000	$ 45,484,000
Stock repurchase program, authorized amount				$ 60,000,000

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value Assets:
Marketable securities	$ 202,814	$ 293,269
Capped Call Transactions	59,964	83,597
Level 1
Fair Value Assets:
Marketable securities	0	0
Capped Call Transactions	0	0
Level 2
Fair Value Assets:
Marketable securities	202,814	293,269
Capped Call Transactions	59,964	83,597
Level 3
Fair Value Assets:
Marketable securities	0	0
Capped Call Transactions	0	0
Cash equivalents
Fair Value Assets:
Cash equivalents	3,216	56,339
Cash equivalents | Level 1
Fair Value Assets:
Cash equivalents	3,216	42,339
Cash equivalents | Level 2
Fair Value Assets:
Cash equivalents	0	14,000
Cash equivalents | Level 3
Fair Value Assets:
Cash equivalents	0	0
Venture investments
Fair Value Assets:
Venture investments	7,648	8,345
Venture investments | Level 1
Fair Value Assets:
Venture investments	0	0
Venture investments | Level 2
Fair Value Assets:
Venture investments	0	0
Venture investments | Level 3
Fair Value Assets:
Venture investments	$ 7,648	$ 8,345

FAIR VALUE MEASUREMENTS - Chang

FAIR VALUE MEASUREMENTS - Change in Investment in Privately Held Companies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Convertible debt fair value	$ 642,000	$ 706,500
Privately held investment
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	8,345	4,871
New investments	500	3,306
Sales of investments	(2,449)	(1,424)
Changes in foreign exchange rates	(68)	118
Changes in fair value included in other income	100	1,374
Changes in fair value included in other comprehensive income	1,220	100
Ending balance	$ 7,648	$ 8,345

REVENUE - Revenue by Geographic

REVENUE - Revenue by Geographic Areas (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 1,211,653	$ 1,017,517	$ 911,383
Concentration risk percentage	100.00%	100.00%	100.00%
U.S.
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 690,133	$ 613,844	$ 525,191
Other Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	61,339	49,441	60,536
United Kingdom (“U.K.”)
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	117,580	91,517	87,382
Europe (excluding U.K.), Middle East, and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	198,080	156,056	137,946
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 144,521	$ 106,659	$ 100,328
Sales Revenue, Net | U.S. | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	57.00%	61.00%	57.00%
Sales Revenue, Net | Other Americas | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	5.00%	5.00%	7.00%
Sales Revenue, Net | United Kingdom (“U.K.”) | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	10.00%	9.00%	10.00%
Sales Revenue, Net | Europe (excluding U.K.), Middle East, and Africa | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	16.00%	15.00%	15.00%
Sales Revenue, Net | Asia-Pacific | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	12.00%	10.00%	11.00%

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,211,653	$ 1,017,517	$ 911,383
Perpetual license
Disaggregation of Revenue [Line Items]
Total revenue	32,172	28,558	80,015
Subscription license
Disaggregation of Revenue [Line Items]
Total revenue	336,248	266,352	199,433
Subscription services
Disaggregation of Revenue [Line Items]
Total revenue	621,223	504,977	414,326
Subscription
Disaggregation of Revenue [Line Items]
Total revenue	957,471	771,329	613,759
Consulting
Disaggregation of Revenue [Line Items]
Total revenue	222,010	217,630	217,609
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	368,420	294,910	279,448
Revenue recognized at a point in time | Perpetual license
Disaggregation of Revenue [Line Items]
Total revenue	32,172	28,558	80,015
Revenue recognized at a point in time | Subscription license
Disaggregation of Revenue [Line Items]
Total revenue	336,248	266,352	199,433
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Total revenue	843,233	722,607	631,935
Revenue recognized over time | Maintenance
Disaggregation of Revenue [Line Items]
Total revenue	320,257	296,709	280,580
Revenue recognized over time | Pega Cloud
Disaggregation of Revenue [Line Items]
Total revenue	300,966	208,268	133,746
Revenue recognized over time | Consulting
Disaggregation of Revenue [Line Items]
Total revenue	$ 222,010	$ 217,630	$ 217,609

REVENUE - Revenue for Remaining

REVENUE - Revenue for Remaining Performance Obligations Expected to be Recognized (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
1 year or less	$ 771,173	$ 612,686
1 year or less, percentage	58.00%	57.00%
1-2 years	$ 314,123	$ 256,276
1-2 years, percentage	23.00%	24.00%
2-3 years	$ 173,120	$ 138,641
2-3 years, percentage	13.00%	13.00%
Greater than 3 years	$ 86,478	$ 64,784
Greater than 3 years, percentage	6.00%	6.00%
Total	$ 1,344,894	$ 1,072,387
Total percentage	100.00%	100.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction
Maintenance
Disaggregation of Revenue [Line Items]
1 year or less	$ 234,917	$ 227,803
1-2 years	65,502	54,509
2-3 years	38,432	28,320
Greater than 3 years	28,157	19,283
Total	367,008	329,915
Pega Cloud
Disaggregation of Revenue [Line Items]
1 year or less	330,426	248,223
1-2 years	220,231	193,064
2-3 years	124,969	104,542
Greater than 3 years	55,937	44,308
Total	731,563	590,137
Subscription license
Disaggregation of Revenue [Line Items]
1 year or less	153,467	105,920
1-2 years	14,968	7,962
2-3 years	1,955	4,928
Greater than 3 years	1,765	4
Total	172,155	118,814
Perpetual license
Disaggregation of Revenue [Line Items]
1 year or less	10,952	11,514
1-2 years	4,505	395
2-3 years	2,252	0
Greater than 3 years	0	0
Total	17,709	11,909
Consulting
Disaggregation of Revenue [Line Items]
1 year or less	41,411	19,226
1-2 years	8,917	346
2-3 years	5,512	851
Greater than 3 years	619	1,189
Total	$ 56,459	$ 21,612

STOCK-BASED COMPENSATION - Expe

STOCK-BASED COMPENSATION - Expense Included in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 115,947	$ 103,068	$ 80,909
Income tax benefit	(23,410)	(20,464)	(16,392)
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	21,822	20,796	18,822
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	54,182	46,283	32,665
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	25,413	22,885	18,938
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 14,530	$ 13,104	$ 10,484

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($)	Jan. 01, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2006	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		5 years
Shares available for issuance (in shares)		10,400,000
Closing price of company stock (in dollars per share)		$ 111.82
Shares exercised (in shares)		1,170,000
Vesting one year from the grant date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		1 year
Vesting rights percentage		20.00%
Vesting in quarterly installments over the remaining four years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		4 years
Vesting rights percentage		80.00%
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares exercised (in shares)		10,000
Weighted-average grant-date fair value (in dollars per share)		$ 127.50
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		10 years
Grants issued (in shares)		1,300,000
Intrinsic value of stock options exercised		$ 94,300,000	$ 126,800,000	$ 63,300,000
Unrecognized stock-based compensation expense, unvested stock options		$ 39,800,000
Weighted-average period of expense recognition		2 years 2 months 12 days
Weighted-average grant-date fair value (in dollars per share)		$ 37.74	$ 24.16	$ 19.10
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense, unvested stock options		$ 73,100,000
Weighted-average period of expense recognition		2 years 1 month 6 days
Weighted-average grant date fair value of shares granted (in dollars per share)		$ 129.03	$ 93.68	$ 66.21
Fair value of shares vested		$ 122,500,000	$ 108,400,000	$ 77,000,000
Corporate Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights percentage		100.00%
Percentage of closing price of common stock		85.00%
Corporate Incentive Compensation Plan | RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation percentage of target incentive compensation eligible to be elected and received by employees		50.00%
2004 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)		36,000,000
Number of shares subject to outstanding options and awards (in shares)		9,200,000
Shares available for issuance (in shares)		10,000,000
2004 Long-Term Incentive Plan | RSUs | Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual limited compensation		$ 500,000
2006 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)					1,000,000,000,000
Percentage of fair market value of company stock					85.00%
Purchase price percentage of fair market value	85.00%					95.00%
Shares issued (in shares)		600,000
Shares available for issuance (in shares)		400,000

STOCK-BASED COMPENSATION - Sche

STOCK-BASED COMPENSATION - Schedule of Compensating Balances (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense from 2006 ESPP	$ 1,860

STOCK-BASED COMPENSATION - Weig

STOCK-BASED COMPENSATION - Weighted Average Assumptions used in Black Scholes Option Pricing Model (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected annual volatility	35.00%	31.00%	32.00%
Expected term in years	4 years 4 months 24 days	4 years 6 months	4 years 6 months
Risk-free interest rate	0.60%	0.70%	2.40%
Expected annual dividend yield	0.20%	0.20%	0.30%
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value (in dollars per share)	$ 37.74	$ 24.16	$ 19.10

STOCK-BASED COMPENSATION - Comb

STOCK-BASED COMPENSATION - Combined Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)$ / sharesshares
Shares
Options outstanding, beginning of period (in shares) | shares	7,391
Granted (in shares) | shares	1,574
Exercised (in shares) | shares	(1,170)
Forfeited (in shares) | shares	(606)
Options outstanding, end of period (in shares) | shares	7,189
Vested and expected to vest (in shares) | shares	6,176
Exercisable (in shares) | shares	3,398
Weighted-average Exercise Price
Options outstanding, beginning of period (in dollars per share) | $ / shares	$ 59.88
Granted (in dollars per share) | $ / shares	129.71
Exercised (in dollars per share) | $ / shares	47.93
Forfeited (in dollars per share) | $ / shares	85.69
Options outstanding, end of period (in dollars per share) | $ / shares	74.94
Vested and expected to vest (in dollars per share) | $ / shares	71.97
Exercisable (in dollars per share) | $ / shares	$ 50.06
Weighted-average remaining contractual term
Vested and expected to vest	6 years 8 months 12 days
Exercisable	5 years 4 months 24 days
Aggregate intrinsic value
Vested and expected to vest | $	$ 267,722
Exercisable | $	$ 210,796

STOCK-BASED COMPENSATION - Co_2

STOCK-BASED COMPENSATION - Combined Restricted Stock Units Activity (Details) - RSUs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Shares
Nonvested, beginning of period (in shares)	2,462
Granted (in shares)	945
Vested (in shares)	(972)
Forfeited (in shares)	(381)
Nonvested, end of period (in shares)	2,054	2,462
Expected to vest (shares)	1,523
Weighted- Average Grant-Date Fair Value
Nonvested, beginning of period (in dollars per share)	$ 74.78
Granted (in dollars per share)	129.03	$ 93.68	$ 66.21
Vested (in dollars per share)	70.19
Forfeited (in dollars per share)	88.01
Nonvested, end of period (in dollars per share)	99.36	$ 74.78
Expected to vest (in dollars per share)	$ 101.32
Aggregate Intrinsic Value
Nonvested	$ 229,643
Expected to vest	$ 170,357

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plan, expense	$ 29,659	$ 24,241	$ 19,697
U.S. 401(k) Plan
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plan, expense	8,879	8,109	6,676
International plans
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plan, expense	$ 20,780	$ 16,132	$ 13,021

INCOME TAXES - Components of (L

INCOME TAXES - Components of (Loss) before (Benefit From) Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Domestic	$ (125,947)	$ (59,281)	$ (51,396)
Foreign	(6,040)	(65,608)	(83,450)
(Loss) before (benefit from) income taxes	$ (131,987)	$ (124,889)	$ (134,846)

INCOME TAXES - Components of th

INCOME TAXES - Components of the (Benefit From) Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current:
Federal	$ 1,921	$ (11,251)	$ 1,050
State	363	399	405
Foreign	4,105	7,113	3,449
Total current provision for (benefit from)	6,389	(3,739)	4,904
Deferred:
Federal	(42,214)	(34,573)	(25,356)
State	(9,413)	(8,119)	(5,143)
Foreign	(23,709)	(17,085)	(18,818)
Total deferred (benefit)	(75,336)	(59,777)	(49,317)
Income tax expense (benefit), total	$ (68,947)	$ (63,516)	$ (44,413)

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of Effective Income Tax Rate from Statutory Federal Income Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
U.S. federal income taxes at statutory rates	$ (27,717)	$ (26,227)	$ (28,318)
Valuation allowance	(469)	(5,881)	727
State income taxes, net of federal benefit and tax credits	(7,217)	(6,994)	(4,450)
Permanent differences	541	1,773	2,606
Federal research and experimentation credits	(6,380)	(5,716)	(4,295)
Tax effects of foreign activities	3,599	3,050	3,056
Tax-exempt income	0	0	(91)
Provision to return adjustments	(2,016)	3,416	(5,460)
Non-deductible compensation	5,464	1,806	1,716
Expiration of statutes and changes in estimates	(2,250)	55	2,420
Excess tax benefits related to stock-based compensation	(20,697)	(25,797)	(14,291)
Cares Act	0	(10,576)	0
Impact of change in tax law	(11,811)	7,489	1,908
Other	6	86	59
Income tax expense (benefit), total	$ (68,947)	$ (63,516)	$ (44,413)

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Contingency [Line Items]
Unrecognized tax benefits	$ 17,584	$ 23,801	$ 23,271	$ 18,157
Acquisition Related Net Operating Losses
Income Tax Contingency [Line Items]
Change in valuation allowances	6,000
Federal
Income Tax Contingency [Line Items]
Carryforwards with unlimited carryforward period	139,000
State
Income Tax Contingency [Line Items]
Carryforwards with unlimited carryforward period	$ 1,000

INCOME TAXES - Components of Ne

INCOME TAXES - Components of Net Deferred Tax Asset and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Net operating loss carryforwards	$ 133,164	$ 88,129
Accruals and reserves	38,526	26,309
Interest expense carryforward	7,759	3,464
Software revenue	336	0
Convertible senior notes	8,362	0
Depreciation	3,764	4,795
Tax credit carryforwards	40,590	31,556
Other	1,015	370
Total deferred tax assets	233,516	154,623
Valuation allowances	(25,855)	(23,409)
Total net deferred tax assets	207,661	131,214
Deferred tax liabilities:
Capped call transactions	(14,961)	(20,858)
Convertible senior notes	0	(6,473)
Software revenue	0	(11,477)
Intangibles	(12,044)	(4,338)
Total deferred tax liabilities	(27,005)	(43,146)
Deferred tax assets, net	$ 180,656	$ 88,068

INCOME TAXES - Net Operating Lo

INCOME TAXES - Net Operating Losses and Credit Carryforwards (Details) $ in Thousands	Dec. 31, 2021USD ($)
Federal
Operating Loss Carryforwards [Line Items]
Net operating losses	$ 203,835
Credit carryforwards	30,115
Net operating losses expected to expire unused	26,700
Tax credits expected to expire unused	100
State
Operating Loss Carryforwards [Line Items]
Net operating losses	13,810
Credit carryforwards	1,516
Net operating losses expected to expire unused	800
Tax credits expected to expire unused	9,100
OpenSpan, Inc. | Federal
Operating Loss Carryforwards [Line Items]
Net operating losses	64,847
Credit carryforwards	640
OpenSpan, Inc. | State
Operating Loss Carryforwards [Line Items]
Net operating losses	2,008
Credit carryforwards	$ 60

INCOME TAXES - Reconciliation_2

INCOME TAXES - Reconciliation of Beginning and Ending Balances of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of period	$ 23,801	$ 23,271	$ 18,157
Additions for tax positions related to the current year	653	653	510
Additions for tax positions of prior years	0	962	4,917
Reductions for tax positions of prior years	(6,870)	(1,085)	(313)
Balance at end of period	$ 17,584	$ 23,801	$ 23,271

(LOSS) PER SHARE (Details)

(LOSS) PER SHARE (Details) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 29, 2020$ / derivativeshares	Dec. 31, 2021USD ($)$ / shares$ / derivativeshares	Dec. 31, 2020USD ($)$ / shares$ / derivativeshares	Dec. 31, 2019USD ($)$ / shares$ / derivativeshares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net (loss) | $		$ (63,040)	$ (61,373)	$ (90,433)
Weighted-average common shares outstanding (in shares)		81,387	80,336	79,055
(Loss) per share, basic (in dollars per share) | $ / shares		$ (0.77)	$ (0.76)	$ (1.14)
Effective of dilutive securities (in shares)		0	0	0
Weighted - average common shares outstanding, assuming dilution (in shares)		81,387	80,336	79,055
(Loss) per share, diluted (in dollars per share) | $ / shares		$ (0.77)	$ (0.76)	$ (1.14)
Outstanding anti-dilutive stock options and RSUs (in shares)		5,862	6,278	5,911
Convertible debt (in shares)		4,400	4,400	4,400
Number of shares issuable upon conversion	4,400	4,400	4,400	4,400
Cap price (in dollars per share) | $ / derivative	196.44	196.44	196.44	196.44
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average effect of dilutive securities (in shares)		0	0	0
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average effect of dilutive securities (in shares)		0	0	0