Pegasystems (PEGA) 10-K 12 Feb 25 2024 FY Annual report Financial data

Cover

Cover - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2024	Jan. 31, 2025	Jun. 30, 2024
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2024
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	1-11859
Entity Registrant Name	PEGASYSTEMS INC.
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	04-2787865
Entity Address, Address Line One	225 Wyman Street
Entity Address, City or Town	Waltham
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02451
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
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 2.7
Entity Common Stock, Shares Outstanding		85,898,878
Documents Incorporated by Reference	Portions of the Registrant’s definitive proxy statement related to its 2025 annual meeting of stockholders to be filed subsequently are incorporated by reference into Part III of this report.
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Entity Central Index Key	0001013857

AUDIT INFORMATION

AUDIT INFORMATION	12 Months Ended
	Dec. 31, 2024
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, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 337,103	$ 229,902
Marketable securities	402,870	193,436
Total cash, cash equivalents, and marketable securities	739,973	423,338
Accounts receivable, net	305,468	300,173
Unbilled receivables, net	173,085	237,379
Other current assets	115,178	68,137
Total current assets	1,333,704	1,029,027
Long-term unbilled receivables, net	61,407	85,402
Goodwill	81,113	81,611
Other long-term assets	292,049	314,696
Total assets	1,768,273	1,510,736
Current liabilities:
Accounts payable	6,226	11,290
Accrued expenses	31,544	39,941
Accrued compensation and related expenses	138,042	126,640
Deferred revenue	423,910	377,845
Convertible senior notes, net	467,470	0
Other current liabilities	18,866	21,343
Total current liabilities	1,086,058	577,059
Long-term convertible senior notes, net	0	499,368
Long-term operating lease liabilities	67,647	66,901
Other long-term liabilities	29,088	13,570
Total liabilities	1,182,793	1,156,898
Commitments and contingencies (Note 20)
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; 86,112 and 83,840 shares issued and outstanding as of December 31, 2024 and 2023, respectively	861	838
Additional paid-in capital	526,963	379,584
Retained earnings (accumulated deficit)	87,901	(8,705)
Accumulated other comprehensive (loss)
Net unrealized gain on available-for-sale securities, net of tax	230	669
Foreign currency translation adjustments	(30,475)	(18,548)
Total stockholders’ equity	585,480	353,838
Total liabilities and stockholders’ equity	$ 1,768,273	$ 1,510,736

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2024	Dec. 31, 2023
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)	86,112,000	83,840,000
Common stock, shares outstanding (in shares)	86,112,000	83,840,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenue
Total revenue	$ 1,497,180	$ 1,432,616	$ 1,317,845
Cost of revenue
Total cost of revenue	390,665	378,483	368,635
Gross profit	1,106,515	1,054,133	949,210
Operating expenses
Selling and marketing	534,780	559,177	624,789
Research and development	298,074	295,512	294,349
General and administrative	112,848	96,743	117,734
Litigation settlement, net of recoveries	32,403	0	0
Restructuring	4,528	21,747	21,743
Total operating expenses	982,633	973,179	1,058,615
Income (loss) from operations	123,882	80,954	(109,405)
Foreign currency transaction (loss) gain	(912)	(5,242)	4,560
Interest income	25,779	9,259	1,643
Interest expense	(6,835)	(6,876)	(7,792)
(Loss) on capped call transactions	(663)	(1,348)	(57,382)
Other income, net	1,385	18,693	6,579
Income (loss) before provision for income taxes	142,636	95,440	(161,797)
Provision for income taxes	43,447	27,632	183,785
Net income (loss)	$ 99,189	$ 67,808	$ (345,582)
Earnings (loss) per share
Basic (in dollars per share)	$ 1.16	$ 0.82	$ (4.22)
Diluted (in dollars per share)	$ 1.11	$ 0.73	$ (4.22)
Weighted-average number of common shares outstanding
Basic (in shares)	85,265	83,162	81,947
Diluted (in shares)	89,634	84,914	81,947
Subscription services
Revenue
Total revenue	$ 882,038	$ 793,184	$ 701,835
Cost of revenue
Total cost of revenue	149,918	144,250	138,736
Subscription license
Revenue
Total revenue	398,102	407,625	366,063
Cost of revenue
Total cost of revenue	1,888	2,606	2,642
Consulting
Revenue
Total revenue	213,273	221,706	230,654
Cost of revenue
Total cost of revenue	238,842	231,560	227,082
Perpetual license
Revenue
Total revenue	3,767	10,101	19,293
Cost of revenue
Total cost of revenue	$ 17	$ 67	$ 175

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 99,189	$ 67,808	$ (345,582)
Other comprehensive (loss) income, net of tax
Unrealized (loss) gain on available-for-sale securities	(439)	152	(169)
Foreign currency translation adjustments	(11,927)	5,039	(15,913)
Total other comprehensive (loss) income, net of tax	(12,366)	5,191	(16,082)
Comprehensive income (loss)	$ 86,823	$ 72,999	$ (361,664)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional paid-in capital	Retained earnings (accumulated deficit)	Accumulated other comprehensive (loss)
Balance, beginning of period (in shares) at Dec. 31, 2021		81,712
Balance, beginning of period at Dec. 31, 2021	$ 416,088	$ 817	$ 145,810	$ 276,449	$ (6,988)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock (in shares)		(280)
Repurchase of common stock	(24,508)	$ (2)	(24,506)
Issuance of common stock for stock compensation plans (in shares)		754
Issuance of common stock for stock compensation plans	(20,620)	$ 7	(20,627)
Issuance of common stock under the employee stock purchase plan (in shares)		250
Issuance of common stock under the employee stock purchase plan	9,172	$ 2	9,170
Stock-based compensation	122,229		122,229
Cash dividends declared	(9,854)		(2,474)	(7,380)
Other Comprehensive income (loss)	(16,082)				(16,082)
Net income (loss)	(345,582)			(345,582)
Balance, end of period (in shares) at Dec. 31, 2022		82,436
Balance, end of period at Dec. 31, 2022	130,843	$ 824	229,602	(76,513)	(23,070)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for stock compensation plans (in shares)		1,212
Issuance of common stock for stock compensation plans	8,905	$ 12	8,893
Issuance of common stock under the employee stock purchase plan (in shares)		192
Issuance of common stock under the employee stock purchase plan	7,744	$ 2	7,742
Stock-based compensation	143,352		143,352
Adjustments to Additional Paid in Capital, Dividends in Excess of Retained Earnings	(10,005)		(10,005)
Other Comprehensive income (loss)	5,191				5,191
Net income (loss)	$ 67,808			67,808
Balance, end of period (in shares) at Dec. 31, 2023	83,840	83,840
Balance, end of period at Dec. 31, 2023	$ 353,838	$ 838	379,584	(8,705)	(17,879)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock (in shares)		(825)
Repurchase of common stock	(69,557)	$ (8)	(69,549)
Issuance of common stock for stock compensation plans (in shares)		2,985
Issuance of common stock for stock compensation plans	75,216	$ 30	75,186
Issuance of common stock under the employee stock purchase plan (in shares)		112
Issuance of common stock under the employee stock purchase plan	6,709	$ 1	6,708
Stock-based compensation	142,718		142,718
Cash dividends declared	(10,267)		(7,684)	(2,583)
Other Comprehensive income (loss)	(12,366)				(12,366)
Net income (loss)	$ 99,189			99,189
Balance, end of period (in shares) at Dec. 31, 2024	86,112	86,112
Balance, end of period at Dec. 31, 2024	$ 585,480	$ 861	$ 526,963	$ 87,901	$ (30,245)

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividend 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, 2024	Dec. 31, 2023	Dec. 31, 2022
Operating activities
Net income (loss)	$ 99,189	$ 67,808	$ (345,582)
Adjustments to reconcile net income (loss) to cash provided by operating activities
Stock-based compensation	142,718	143,352	122,210
Amortization of deferred commissions	62,269	59,461	53,471
Amortization of intangible assets and depreciation	17,585	18,746	18,780
Amortization of right-of-use lease assets	17,842	15,912	15,940
Foreign currency transaction loss (gain)	912	5,242	(4,560)
Loss on capped call transactions	663	1,348	57,382
Deferred income taxes	(1,544)	363	168,890
(Accretion) amortization of investments	(15,263)	(3,302)	1,972
(Gain) on investments	(869)	(10,841)	(6,578)
(Gain) on repurchases of convertible senior notes	(459)	(7,855)	0
Other non-cash	3,728	5,557	4,763
Change in operating assets and liabilities:
Accounts receivable, unbilled receivables, and contract assets	79,034	(57,602)	(51,157)
Other current assets	(50,005)	11,360	(9,133)
Other current liabilities	(7,115)	(8,777)	529
Deferred revenue	48,360	45,123	62,578
Deferred commissions	(57,628)	(44,529)	(53,857)
Other long-term assets and liabilities	6,509	(23,581)	(13,312)
Cash provided by operating activities	345,926	217,785	22,336
Investing activities
Purchases of investments	(559,365)	(287,287)	(41,015)
Proceeds from maturities and called investments	364,501	242,593	66,583
Sales of investments	0	10,725	23,808
Payments for acquisitions, net of cash acquired	0	0	(922)
Investment in property and equipment	(7,712)	(16,781)	(35,379)
Cash (used in) provided by investing activities	(202,576)	(50,750)	13,075
Financing activities
Repurchases of convertible senior notes	(33,890)	(88,989)	0
Dividend payments to stockholders	(10,199)	(9,964)	(9,834)
Proceeds from employee stock purchase plan	6,709	7,744	9,172
Proceeds from stock option exercises	80,651	10,821	0
Common stock repurchases for tax withholdings for net settlement of equity awards	(5,435)	(1,916)	(20,620)
Common stock repurchases under stock repurchase program	(68,057)	0	(25,707)
Other	7	341	0
Cash (used in) financing activities	(30,214)	(81,963)	(46,989)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(4,434)	2,701	(3,333)
Net increase (decrease) in cash, cash equivalents and restricted cash	108,702	87,773	(14,911)
Cash, cash equivalents, and restricted cash, beginning of period	232,827	145,054	159,965
Cash, cash equivalents, and restricted cash, end of period	341,529	232,827	145,054
Cash and cash equivalents	337,103	229,902	145,054
Restricted cash included in other current assets	98	0	0
Restricted cash included in other long-term assets	4,328	2,925	0
Total cash, cash equivalents and restricted cash	341,529	232,827	145,054
Supplemental disclosures
Interest paid on convertible notes	3,810	4,134	4,500
Income taxes paid	82,317	11,664	7,645
Non-cash investing and financing activity:
Investment in property and equipment included in accounts payable and accrued liabilities	1,723	66	9,914
Dividends payable	$ 2,583	$ 2,515	$ 2,474

BASIS OF PRESENTATION

BASIS OF PRESENTATION	12 Months Ended
	Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION Business The Company develops, markets, licenses, hosts, and supports enterprise software that helps organizations optimize decisions and processes in real-time. The Company’s platform for enterprise artificial intelligence (“AI”) decisioning and workflow automation enables clients to personalize customer experiences, automate customer service, and streamline operations, business processes, and workflows. 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, 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, income (loss) from operations, or net income (loss).

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	2. SIGNIFICANT ACCOUNTING POLICIES Revenue The Company’s revenue is primarily derived from: • Subscription services, 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, 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, composed of revenue from 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, 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 stand-alone selling price is typically determined When performance obligation is typically satisfied When payment is typically due Income statement line item 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 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 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 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 the 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 represents 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, the Company’s 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 gives rise to variable fees. 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 significant future 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 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 when the performance obligation was satisfied and the amount of consideration 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 2024, 2023, and 2022, 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. If a contract modification does not meet both criteria, it is accounted for either: • on a prospective basis as a termination of the existing contract and the creation of a new contract; or • on 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. Commissions earned upon the execution of initial contracts 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 lifecycle, and the competitive marketplace’s influence on the products and services sold. Deferred costs allocated to maintenance and deferred costs for Pega Cloud arrangements are amortized over an average expected benefit period of 4.5 years. Deferred costs allocated to software licenses, and any expected renewals of term software licenses within the 4.5 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. Commissions earned on contract amendments and renewals are allocated to each performance obligation within the contract and amortized over the contractual term. 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 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 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 on the specific investment. For additional information see "Note 4. Receivables, Contract Assets, And Deferred Revenue", "Note 11. Debt", and "Note 13. Fair Value Measurements". Property and equipment Property and equipment are recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful life of each asset, 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 of 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 lease term. Variable lease costs include payments required under leases for common area maintenance, real estate taxes, utilities, service charges, and other variable costs that are not reflected in the measurement of right of use assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. The Company combines lease and non-lease components when determining 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 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 to determine the probability and the range of the outcomes, and the estimates are based only on the information available to the Company 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 from 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 internal-use software on a straight-line basis over its estimated useful life, which is 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 qualitative assessments as of November 30, 2024, 2023, and 2022, respectively, 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 and other investments with original maturities of three months or less. Restricted cash The Company records restricted cash amounts as a current asset on the consolidated balance sheets if the restriction expires in less than 12 months, or as a non-current asset if the restriction is greater than 12 months. If there is no minimum time frame during which the cash must remain restricted, the nature of the transactions related to the restriction determine the classification. Restricted cash primarily relates to amounts deposited to secure customer guarantees and various letters of credit. 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 reevaluates these estimates and assumptions quarterly as new information arises 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 2024, 2023, or 2022. 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 expense is adjusted each period for anticipated forfeitures. For service-based awards, stock-based compensation is recognized over the requisite service period, which is generally the vesting period. For performance-based awards, stock-based compensation expense is recognized over the longer of (a) the implicit service period for performance-metric achievement or (b) the requisite service period. During each reporting period, stock-based compensation expense is recorded based on expected achievement of performance targets. Changes in estimates of the expected achievement of performance targets that result in a change in the number of shares that are expected to vest are recognized on a cumulative catch-up basis during the reporting period in which the estimate changed. See "Note 16. Stock-Based Compensation" for a discussion of the Company’s key assumptions when 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, 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 realized, as a reduction of the provision for income taxes. The Company assesses its income tax positions and records tax benefits based on 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. For additional information, see "Note 18. Income Taxes". Advertising expense Advertising costs are expensed as incurred. Advertising expenses were $4.7 million, $3.5 million, and $6.6 million during 2024, 2023, and 2022, respectively. Newly adopted accounting pronouncements Segment reporting In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (“ASU 2023-07”). The amendments in ASU 2023-07 are effective for all public entities for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 did not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. Under ASU 2023-07, public entities with a single reportable segment must apply all of the ASU’s disclosure requirements and the existing segment disclosure and reconciliation requirements in ASC 280 - Segment Reporting on an annual and interim basis. The Company implemented this ASU in 2024 and its impact was immaterial. Accounting pronouncements not yet effective Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 includes expanded income tax rate reconciliation disclosures, a disaggregation of income taxes paid, and other expanded disclosures. The ASU will be effective for the Company for the year ending December 31, 2025. The Company expects the adoption to result in disclosure changes only. Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03 , Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU “2024-03”). Among other items, the requirements include expanded disclosures around employee compensation and selling expenses. ASU 2024-03 will be effective for the Company for the year ending December 31, 2027. The Company is still evaluating the impact of this new guidance on its consolidated financial statements but expect the adoption to result in disclosure changes only.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	12 Months Ended
	Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	3. MARKETABLE SECURITIES December 31, 2024 December 31, 2023 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Government debt $ 11,851 $ 1 $ (19) $ 11,833 $ 11,471 $ 33 $ (1) $ 11,503 Corporate debt 391,097 63 (123) 391,037 181,960 200 (227) 181,933 $ 402,948 $ 64 $ (142) $ 402,870 $ 193,431 $ 233 $ (228) $ 193,436 As of December 31, 2024, marketable securities’ maturities ranged from January 2025 to December 2027, with a weighted-average remaining maturity of 0.3 years.

RECEIVABLES, CONTRACT ASSETS, A

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE	12 Months Ended
	Dec. 31, 2024
Receivables [Abstract]
RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE	4. RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE Receivables (in thousands) December 31, 2024 December 31, 2023 Accounts receivable, net $ 305,468 $ 300,173 Unbilled receivables, net 173,085 237,379 Long-term unbilled receivables, net 61,407 85,402 $ 539,960 $ 622,954 Unbilled receivables Unbilled receivables are client-committed amounts for which revenue recognition precedes billing. Billing is solely subject to the passage of time. Unbilled receivables by expected collection date: (Dollars in thousands) December 31, 2024 1 year or less $ 173,085 74 % 1-2 years 43,341 18 % 2-5 years 18,066 8 % $ 234,492 100 % Unbilled receivables by contract effective date: (Dollars in thousands) December 31, 2024 2024 $ 137,027 58 % 2023 79,650 35 % 2022 10,357 4 % 2021 5,836 2 % 2020 and prior 1,622 1 % $ 234,492 100 % Major clients Clients that represented 10% or more of the Company’s total accounts receivable and unbilled receivables: December 31, 2024 December 31, 2023 Client A Accounts receivable 20 % * Unbilled receivables — % * Total receivables 11 % * * Client accounted for less than 10% of 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 the completion of a related performance obligation. (in thousands) December 31, 2024 December 31, 2023 Contract assets (1) $ 13,498 $ 16,238 Long-term contract assets (2) 18,321 20,635 $ 31,819 $ 36,873 (1) Included in other current assets. (2) Included in other long-term assets. Deferred revenue Deferred revenue consists of billings made and payments received in advance of revenue recognition. (in thousands) December 31, 2024 December 31, 2023 Deferred revenue $ 423,910 $ 377,845 Long-term deferred revenue (1) 2,121 2,478 $ 426,031 $ 380,323 (1) Included in other long-term liabilities. The change in deferred revenue in 2024 was primarily due to new billings in advance of revenue recognition and $374.1 million of revenue recognized during the period included in deferred revenue as of December 31, 2023.

DEFERRED COMMISSIONS

DEFERRED COMMISSIONS	12 Months Ended
	Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
DEFERRED COMMISSIONS	5. DEFERRED COMMISSIONS December 31, (in thousands) 2024 2023 Deferred commissions (1) $ 105,405 $ 114,119 (1) Included in other long-term assets. (in thousands) 2024 2023 2022 Amortization of deferred commissions (1) $ 62,269 $ 59,461 $ 53,471 (1) Included in selling and marketing expenses.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	6. PROPERTY AND EQUIPMENT (1) (in thousands) December 31, 2024 2023 Leasehold improvements $ 51,932 $ 62,787 Computer equipment 29,817 31,144 Furniture and fixtures 4,603 6,665 Computer software purchased 9,918 10,060 Computer software developed for internal use 19,776 19,470 Fixed assets in progress 5,038 223 121,084 130,349 Less: accumulated depreciation (79,278) (83,070) $ 41,806 $ 47,279 (1) Included in other long-term assets. During 2024, $17.8 million of depreciated assets were disposed of, which primarily related to office closures. (in thousands) 2024 2023 2022 Depreciation expense $ 14,432 $ 14,806 $ 14,687

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	7. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill (in thousands) 2024 2023 January 1, $ 81,611 $ 81,399 Currency translation adjustments (498) 212 December 31, $ 81,113 $ 81,611 Intangibles Intangible assets are recorded at cost and amortized using the straight-line method over their estimated useful lives: December 31, 2024 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value (1) Client-related 4-10 years $ 63,107 $ (61,395) $ 1,712 Technology 2-10 years 68,115 (65,995) 2,120 Other 1-5 years 5,361 (5,361) — $ 136,583 $ (132,751) $ 3,832 (1) Included in other long-term assets. December 31, 2023 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value (1) Client-related 4-10 years $ 63,117 $ (60,035) $ 3,082 Technology 2-10 years 68,138 (64,218) 3,920 Other 1-5 years 5,361 (5,361) — $ 136,616 $ (129,614) $ 7,002 (1) Included in other long-term assets. Future estimated intangible assets amortization: (in thousands) December 31, 2024 2025 $ 2,630 2026 874 2027 328 $ 3,832 Amortization of intangible assets: (in thousands) 2024 2023 2022 Cost of revenue $ 1,783 $ 2,570 $ 2,723 Selling and marketing 1,370 1,370 1,370 $ 3,153 $ 3,940 $ 4,093

OTHER ASSETS AND LIABILITIES

OTHER ASSETS AND LIABILITIES	12 Months Ended
	Dec. 31, 2024
Other Assets and Liabilities [Abstract]
OTHER ASSETS AND LIABILITIES	8. OTHER ASSETS AND LIABILITIES Other current assets (in thousands) December 31, 2024 December 31, 2023 Prepaid expenses $ 38,155 $ 33,647 Income tax receivables 58,359 4,804 Contract assets 13,498 16,238 Insurance receivable — 1,954 Indirect tax receivable 2,488 1,924 Capped call transactions 223 — Restricted cash 98 — Other 2,357 9,570 $ 115,178 $ 68,137 Other long-term assets (in thousands) December 31, 2024 December 31, 2023 Deferred commissions $ 105,405 $ 114,119 Right of use assets 62,429 64,198 Property and equipment 41,806 47,279 Venture investments 21,234 19,450 Contract assets 18,321 20,635 Income tax receivables 13,299 20,633 Intangible assets 3,832 7,002 Capped call transactions — 893 Deferred income taxes 4,268 3,678 Restricted cash 4,328 2,925 Other 17,127 13,884 $ 292,049 $ 314,696 Accrued expenses (in thousands) December 31, 2024 December 31, 2023 Cloud hosting $ 1,802 $ 1,358 Outside professional services 10,639 10,419 Marketing and sales program 2,150 2,557 Income and other taxes 5,055 15,428 Employee related 4,833 4,486 Repurchases of common stock unsettled 1,500 — Other 5,565 5,693 $ 31,544 $ 39,941 Other current liabilities (in thousands) December 31, 2024 December 31, 2023 Operating lease liabilities $ 14,551 $ 15,000 Dividends payable 2,583 2,515 Other 1,732 3,828 $ 18,866 $ 21,343 Other long-term liabilities (in thousands) December 31, 2024 December 31, 2023 Deferred revenue $ 2,121 $ 2,478 Income taxes payable 15,956 859 Other 11,011 10,233 $ 29,088 $ 13,570

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2024
Segment Reporting [Abstract]
SEGMENT INFORMATION	9. 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 assess 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 reportable segment. The accounting policies of the Company’s operating segment are the same as those described in "Note 2. Significant Accounting Policies". The CODM uses consolidated net income (loss) to set financial performance targets, assess performance, and make expense allocation decisions. (in thousands) 2024 2023 2022 Total revenue $ 1,497,180 $ 1,432,616 $ 1,317,845 Total cost of revenue 390,665 378,483 368,635 Selling 450,527 474,405 519,192 Marketing 84,253 84,772 105,597 Research and development 298,074 295,512 294,349 General and administrative 112,848 96,743 117,734 Other segment items, net (1) 18,177 7,261 74,135 Provision for income taxes 43,447 27,632 183,785 Net income (loss) $ 99,189 $ 67,808 $ (345,582) (1) Includes Litigation settlement, net of recoveries, Restructuring, Foreign currency transaction (loss) gain, Interest income, Interest expense, (Loss) on capped call transactions, and Other income, net. Long-lived assets related to the Company’s U.S. and international operations consist of property and equipment, which are included in Other long-term assets in the Company’s consolidated balance sheet: (in thousands) December 31, 2024 December 31, 2023 U.S. $ 37,405 89 % $ 44,414 94 % International 4,401 11 % 2,865 6 % $ 41,806 100 % $ 47,279 100 %

LEASES

LEASES	12 Months Ended
	Dec. 31, 2024
Leases [Abstract]
LEASES	10. LEASES The Company leased office space beginning in March 2021 at One Main Street, Cambridge, Massachusetts to serve as its corporate headquarters (the “Cambridge office”). The 4.5 year lease includes a base rent of $2 million per year. In December 2024, the Company closed the Cambridge office and relocated its corporate headquarters to office space already leased in Waltham, Massachusetts (the “Waltham office”), effective January 1, 2025. The Company recorded a restructuring expense of $3.7 million as a result of closing the Cambridge office. The Waltham office is 131 thousand square feet of leased office space located at 225 Wyman Street, Waltham, Massachusetts. The lease term of 11 years began on August 1, 2021, with no rent due until August 1, 2022. The annual rent equals the base rent of approximately $6 million, with 3% annual increases, plus a portion of building operating costs and real estate taxes. In addition, the Company received an improvement allowance from the landlord of $11.8 million. Expense (in thousands) 2024 2023 2022 Fixed lease costs $ 21,422 $ 19,718 $ 20,186 Short-term lease costs 1,746 2,884 3,356 Variable lease costs 6,901 8,148 3,894 $ 30,069 $ 30,750 $ 27,436 Right of use assets and lease liabilities (in thousands) December 31, 2024 December 31, 2023 Right of use assets (1) $ 62,429 $ 64,198 Operating lease liabilities (2) $ 14,551 $ 15,000 Long-term operating lease liabilities $ 67,647 $ 66,901 (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, 2024 December 31, 2023 Weighted-average remaining lease term 6.2 years 6.8 years Weighted-average discount rate (1) 4.8 % 4.0 % (1) The rates implicit in the Company’s leases are not readily determinable. Therefore, the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur to borrow an amount equal to the lease payments on a collateralized basis over the lease term in a similar economic environment. Maturities of lease liabilities: (in thousands) December 31, 2024 2025 $ 18,106 2026 15,404 2027 13,972 2028 13,367 2029 10,742 Thereafter 23,535 Total lease payments 95,126 Less: imputed interest (1) (12,928) $ 82,198 (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 (in thousands) 2024 2023 Cash paid for operating leases, net of tenant improvement allowances $ 18,444 $ 20,045 Right of use assets recognized for new leases and amendments (non-cash) $ 16,682 $ 1,460

DEBT

DEBT	12 Months Ended
	Dec. 31, 2024
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 September 1, 2020. In 2024 and 2023, the Company recognized gains of $0.5 million and $7.9 million in other income, net from repurchases of Notes representing $34.4 million and $97.7 million in aggregate principal amount, respectively. Conversion rights The conversion rate is 7.4045 shares of common stock per $1,000 principal amount of the Notes, representing an initial conversion price of $135.05 per share of common stock. The conversion rate will be adjusted upon certain events, including spin-offs, tender offers, exchange offers, and certain stockholder distributions. The Company will settle conversions by paying or delivering cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company’s election, based on the applicable conversion rate. Beginning on September 1, 2024, noteholders may convert their Notes at any time at their election. Before September 1, 2024, noteholders could 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). Repurchase rights On or after March 1, 2023 and on or before the 40th scheduled trading day immediately before the maturity date, the Company may redeem for cash all or part of the Notes at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest, if the last reported sale price of the Company’s common stock exceeded 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides a redemption notice. If certain corporate events that constitute a “Fundamental Change” occur, each noteholder will have the right to require the Company to repurchase for cash all of such noteholder’s Notes, or any portion of the principal thereof that is equal to $1,000 or a multiple of $1,000, at a repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. A Fundamental Change relates to mergers, changes in control of the Company, liquidation/dissolution of the Company, or the delisting of the Company’s common stock. Carrying value of the Notes: (in thousands) December 31, 2024 December 31, 2023 Principal $ 467,864 $ 502,270 Unamortized issuance costs (394) (2,902) Convertible senior notes, net $ 467,470 $ 499,368 Interest expense related to the Notes: (in thousands) 2024 2023 Contractual interest expense (0.75% coupon) $ 3,725 $ 3,891 Amortization of issuance costs 2,451 2,603 $ 6,176 $ 6,494 The average interest rate on the Notes in 2024 and 2023 was 1.2%. Future payments of principal and contractual interest: December 31, 2024 (in thousands) Principal Interest Total 2025 $ 467,864 $ 1,754 $ 469,618 $ 467,864 $ 1,754 $ 469,618 Capped call transactions In February 2020, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain financial institutions. The Capped Call Transactions initially covered approximately 4.4 million shares (representing the number of shares for which the Notes were initially convertible) of the Company’s common stock. In 2024, Capped Call Transactions covering approximately 0.3 million shares were settled for proceeds of $0.01 million. As of December 31, 2024, Capped Call Transactions covering approximately 3.5 million shares were outstanding. The Capped Call Transactions are expected to reduce common stock dilution and/or offset any potential cash payments the Company must make, other than for principal and interest, upon conversion of the Notes, with such reduction and/or offset subject to a cap of $196.44. The cap price of the Capped Call Transactions is subject to adjustment upon specified extraordinary events affecting the Company, including mergers and tender offers. The Capped Call Transactions are accounted for as derivative instruments and do not qualify for the Company’s own equity scope exception in ASC 815 since, in some cases of early settlement, the settlement value calculated following the governing documents may not represent a fair value measurement. The Capped Call Transactions are remeasured to fair value each reporting period, resulting in a non-operating gain or loss. Change in capped call transactions: (in thousands) 2024 2023 January 1, $ 893 $ 2,582 Settlements (7) (341) Fair value adjustment (663) (1,348) December 31, $ 223 $ 893 Credit facility In November 2019, and as since amended, the Company entered into a five-year $100 million senior secured revolving credit agreement (the “Credit Facility”) with PNC Bank, National Association. The Company may use borrowings for general corporate purposes and to finance working capital needs. Subject to specific conditions and the agreement of the financial institutions lending the additional amount, the aggregate commitment may be increased to $200 million. The Credit Facility, as amended, contains customary covenants, including, but not limited to, those relating to additional indebtedness, liens, asset divestitures, and affiliate transactions. Beginning with the fiscal quarter ended March 31, 2024, the Company must maintain a maximum net consolidated leverage ratio of 3.5 to 1.0 (with a step-up for certain acquisitions) and a minimum consolidated interest coverage ratio of 3.5 to 1.0. Effective as of February 4, 2025, the Credit Facility was amended to extend the expiration date to February 4, 2027. As of December 31, 2024 and December 31, 2023, the Company had $27.3 million in outstanding letters of credit under the Credit Facility, reducing available borrowing capacity, but no outstanding cash borrowings.

RESTRUCTURING

RESTRUCTURING	12 Months Ended
	Dec. 31, 2024
Restructuring and Related Activities [Abstract]
RESTRUCTURING	12. RESTRUCTURING The Company has undertaken the following restructuring activities as it optimizes its go-to-market strategy and reassesses its office space needs: (in thousands) 2024 2023 2022 Employee severance and related benefits $ (614) $ 18,721 $ 18,549 Office space reductions (1) 5,142 3,026 3,194 $ 4,528 $ 21,747 $ 21,743 (1) These primarily relate to non-cash operating lease adjustments. Restructuring activity: Accrued employee severance and related benefits: (in thousands) 2024 January 1, $ 8,095 Costs incurred (614) Cash disbursements (5,252) Currency translation adjustments (229) December 31, (1) $ 2,000 (1) Included in accrued compensation and related expenses.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2024
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 with little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data when available and minimize unobservable inputs when determining fair value. The fair value of the Capped Call Transactions at the end of each reporting period is determined using a Black-Scholes option-pricing model. The valuation model uses various market-based inputs, including stock price, remaining contractual term, expected volatility, risk-free interest rate, and expected dividend yield. The Company applies judgment when determining expected volatility. The Company considers the underlying equity security’s historical and implied volatility levels. The Company’s venture investments are recorded at fair value based on multiple valuation methods, including observable public companies and transaction prices and unobservable inputs, including the volatility, rights, and obligations of the securities the Company holds. Assets and liabilities measured at fair value on a recurring basis: December 31, 2024 December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents $ 5,318 $ 148,926 $ — $ 154,244 $ 54,357 $ — $ — $ 54,357 Marketable securities $ — $ 402,870 $ — $ 402,870 $ — $ 193,436 $ — $ 193,436 Capped Call Transactions $ — $ 223 $ — $ 223 $ — $ 893 $ — $ 893 Venture investments $ — $ — $ 21,234 $ 21,234 $ — $ — $ 19,450 $ 19,450 Changes in venture investments: (in thousands) 2024 2023 January 1, $ 19,450 $ 13,069 New investments 550 400 Sales of investments — (2,773) Changes in foreign exchange rates (32) 129 Changes in fair value: included in other income, net 1,628 10,886 included in other comprehensive income (362) (2,261) December 31, $ 21,234 $ 19,450 The carrying value of certain financial instruments, including receivables and accounts payable, approximates fair value due to their short maturities. Fair value of the Notes The fair value of the Notes outstanding (including the embedded conversion feature) was $463.9 million as of December 31, 2024 and $466.5 million as of December 31, 2023. The fair value was determined based on the Notes’ quoted price in an over-the-counter market on the last trading day of the reporting period and classified within Level 2 in the fair value hierarchy. 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.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2024
Equity [Abstract]
STOCKHOLDERS' EQUITY	14. 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, 2024. 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. Common stock The Company has 200 million authorized shares of common stock, $0.01 par value per share, of which 86.1 million were issued and outstanding as of December 31, 2024. Dividends declared 2024 2023 2022 Dividends declared (per share) $ 0.12 $ 0.12 $ 0.12 Dividend payments to stockholders (in thousands) $ 10,199 $ 9,964 $ 9,834 The Company paid a quarterly cash dividend of $0.03 per share in 2024, 2023, and 2022. In the future, the Board of Directors may terminate or modify the dividend program without prior notice. Stock repurchase program On April 23, 2024, the Company’s Board of Directors extended the expiration date of the share repurchase program from June 30, 2024 to June 30, 2025. On October 22, 2024, the Company’s Board of Directors further extended the expiration date of the share repurchase program from June 30, 2025 to December 31, 2025 and increased the authorized repurchases by $250 million to $310 million as of that date. Stock repurchase authorization activity: (in thousands) 2024 2023 2022 Shares Amount Shares Amount Shares Amount January 1, $ 60,000 $ 58,075 $ 22,583 Authorizations (1) 250,000 1,925 60,000 Repurchases paid (2) (809) (68,057) — — (280) (24,508) Repurchases unpaid at period end (2) (16) (1,500) — — — — December 31, $ 240,443 $ 60,000 $ 58,075 (1) This represents increases in the repurchase authority made by th e Board of Directors.

REVENUE

REVENUE	12 Months Ended
	Dec. 31, 2024
Revenue from Contract with Customer [Abstract]
REVENUE	15. REVENUE Geographic revenue Revenues by geography are determined based on client location: (Dollars in thousands) 2024 2023 2022 U.S. $ 828,332 55 % $ 785,029 55 % $ 763,558 57 % Other Americas 95,698 6 % 85,149 6 % 102,980 8 % United Kingdom (“U.K.”) 157,830 11 % 158,014 11 % 115,793 9 % Europe (excluding U.K.), Middle East, and Africa 249,325 17 % 242,303 17 % 194,563 15 % Asia-Pacific 165,995 11 % 162,121 11 % 140,951 11 % $ 1,497,180 100 % $ 1,432,616 100 % $ 1,317,845 100 % Revenue streams (in thousands) 2024 2023 2022 Pega Cloud $ 558,734 $ 461,328 $ 384,271 Maintenance 323,304 331,856 317,564 Consulting 213,273 221,706 230,654 Revenue recognized over time 1,095,311 1,014,890 932,489 Subscription license 398,102 407,625 366,063 Perpetual license 3,767 10,101 19,293 Revenue recognized at a point in time 401,869 417,726 385,356 $ 1,497,180 $ 1,432,616 $ 1,317,845 (in thousands) 2024 2023 2022 Pega Cloud $ 558,734 $ 461,328 $ 384,271 Maintenance 323,304 331,856 317,564 Subscription services 882,038 793,184 701,835 Subscription license 398,102 407,625 366,063 Subscription 1,280,140 1,200,809 1,067,898 Consulting 213,273 221,706 230,654 Perpetual license 3,767 10,101 19,293 $ 1,497,180 $ 1,432,616 $ 1,317,845 Remaining performance obligations ("Backlog") Expected future revenue from existing non-cancellable contracts: As of December 31, 2024: (Dollars in thousands) Subscription services Subscription license Perpetual license Consulting Total Pega Cloud Maintenance 1 year or less $ 525,133 $ 230,866 $ 88,880 $ 317 $ 50,519 $ 895,715 56 % 1-2 years 328,234 65,461 10,874 — 3,297 407,866 25 % 2-3 years 159,536 24,598 733 — 125 184,992 11 % Greater than 3 years 114,256 19,935 678 — 50 134,919 8 % $ 1,127,159 $ 340,860 $ 101,165 $ 317 $ 53,991 $ 1,623,492 100 % As of December 31, 2023: (Dollars in thousands) Subscription services Subscription license Perpetual license Consulting Total Pega Cloud Maintenance 1 year or less $ 446,160 $ 245,271 $ 62,070 $ 2,284 $ 39,810 $ 795,595 54 % 1-2 years 279,474 67,720 9,138 443 2,020 358,795 25 % 2-3 years 144,453 37,142 9,789 — 2,896 194,280 13 % Greater than 3 years 90,177 24,421 100 — — 114,698 8 % $ 960,264 $ 374,554 $ 81,097 $ 2,727 $ 44,726 $ 1,463,368 100 %

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	16. STOCK-BASED COMPENSATION (in thousands) 2024 2023 2022 Cost of revenue $ 27,353 $ 28,994 $ 26,400 Selling and marketing 55,084 57,675 46,769 Research and development 29,838 31,039 29,266 General and administrative 30,443 25,644 19,775 $ 142,718 $ 143,352 $ 122,210 Income tax benefit $ (1,799) $ (2,187) $ (1,881) The Company periodically grants employees stock options and restricted stock units (“RSUs”) and non-employee Directors common stock and stock options. In 2022, most of the Company’s stock based compensation arrangements vest over five years, with 20% vesting after one year and the remaining 80% vesting quarterly over the remaining four years. Beginning in 2023, most of the Company’s stock based compensation arrangements vest over four years, with 25% vesting after one year and the remaining 75% vesting quarterly over the remaining three years. The Company’s stock options have a term of ten years. In 2024, the Company also granted 0.6 million performance stock options with a total grant date fair value of $13.9 million, which vest over 2 years based on the Company’s achievement of certain financial performance targets. The Company recognizes stock-based compensation using the accelerated attribution method, treating each vesting tranche as 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 grant date 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 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. Historically, the Company has granted 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 Company withholds shares to cover the exercise price (for stock options) and the minimum statutory tax withholding obligations (for stock options and RSUs) from the shares that would otherwise be issued upon exercise or settlement. In 2023, the Company moved to cashless settlement for most of its awards. Under cashless settlement, shares are automatically sold in the market at exercise (for stock options) or vest (for RSUs) to cover the exercise price (for stock options) and the minimum statutory tax withholding obligations (for stock options and RSUs). 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 and non-qualified stock options. Subsequent amendments to the plan increased the number of shares authorized for issuance under the plan to 42 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, 2024, 17.0 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 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. In 2023, the number of shares authorized for purchase under the 2006 ESPP was increased to 2 million. For 2024, 2023, and 2022, 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) 2024 2023 2022 Compensation expense from 2006 ESPP $ 1,184 $ 1,367 $ 1,614 As of December 31, 2024, 1.1 million shares had been issued under the plan. Shares issued and available for issuance In 2024, the Company issued 3.0 million shares to its employees and directors under the Company’s stock-based compensation plans. As of December 31, 2024, there were 3.9 million shares available for issuance for future equity grants under the Company’s stock plans, consisting of 3.0 million shares under the 2004 Plan and 0.9 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 equal to the shares’ fair market value at the grant date. The following table summarizes the Company’s fair value assumptions for stock options: 2024 2023 2022 Weighted-average grant-date fair value $ 25.82 $ 20.55 $ 17.49 Assumptions used in the Black-Scholes option-pricing model: Expected annual volatility (1) 49 % 48 % 42 % Expected term in years (2) 3.9 3.5 3.9 Risk-free interest rate (3) 4.2 % 4.2 % 3.4 % Expected annual dividend yield (4) 0.2 % 0.1 % 0.1 % (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 time-based vesting stock option activity under the Company’s stock option plans for 2024: Shares Weighted-average Exercise Price Weighted-average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Options outstanding as of January 1, 2024 13,853 $ 59.32 Granted 1,857 62.90 Exercised (1,937) 43.94 Forfeited (515) 54.91 Expired (284) 90.16 Options outstanding as of December 31, 2024 12,974 $ 61.63 Vested and expected to vest as of December 31, 2024 11,477 $ 62.04 6.7 $ 391,228 Exercisable as of December 31, 2024 7,351 $ 65.37 5.8 $ 232,270 (1) The aggregate intrinsic value of stock options as of December 31, 2024 is based on the difference between the closing price of the Company’s stock of $93.20 and the exercise price of the applicable stock options. 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 2024, 2023, and 2022 was $58.7 million, $6.2 million, and $15.6 million, respectively. As of December 31, 2024, the Company had unrecognized stock-based compensation expense related to the unvested portion of stock options of $35.2 million that is expected to be recognized as expense over a weighted-average period of 1.6 years. Performance stock options In 2023, the Company began awarding performance stock options. These performance stock options allow the holder to purchase a specified number of common stock shares at an exercise price equal to the shares' fair market value at the grant date. For the performance stock options granted in 2024, 25% can vest on the first anniversary of the grant date, and 75% can vest on the second anniversary of the grant date, based on the achievement of specific performance conditions for 2024 and 2025, respectively, including year over year growth in Annual Contract Value and Free Cash Flow Margin. The options expire ten years from the grant date. The following table summarizes the Company’s performance stock option activity for 2024: Shares Weighted-average Exercise Price Weighted-average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Performance options outstanding as of January 1, 2024 886 $ 47.27 Granted 566 62.10 Exercised (39) 47.27 Forfeited (23) 53.86 Performance options outstanding as of December 31, 2024 1,390 $ 53.20 Vested and expected to vest as of December 31, 2024 1,173 $ 53.12 8.6 $ 47,001 Exercisable as of December 31, 2024 181 $ 47.27 8.2 $ 8,304 (1) The aggregate intrinsic value of stock options as of December 31, 2024 is based on the difference between the closing price of the Company’s stock of $93.20 and the exercise price of the applicable stock options. The aggregate intrinsic value of performance stock options exercised in 2024 and 2023 was $1.5 million and none, respectively. As of December 31, 2024, the Company had unrecognized stock-based compensation expense related to the unvested portion of performance stock options of $11.0 million that is expected to be recognized as expense over a weighted-average period of 1 year. RSUs RSUs provide 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. RSU grants include units issued when employees elect to receive 50% of the employee’s target incentive compensation under the Company’s Corporate Incentive Compensation Plan (the “CICP”) in the form of RSUs instead of cash. The weighted-average grant-date fair value for RSUs granted in 2024, 2023, and 2022 was $62.57, $46.57, and $74.50, respectively. The following table summarizes the combined RSU activity for all grants, including the CICP, under the 2004 Plan for 2024: Shares Weighted- Average Grant-Date Aggregate Intrinsic Value Nonvested as of January 1, 2024 2,616 $ 64.85 Granted 1,366 62.57 Vested (1,160) 67.39 Forfeited (209) 63.78 Nonvested as of December 31, 2024 2,613 $ 64.21 $ 243,516 Expected to vest as of December 31, 2024 1,962 $ 63.39 $ 182,854 The fair value of RSUs vested in 2024, 2023, and 2022 was $78.2 million, $42.8 million, and $50.3 million, respectively. The aggregate intrinsic value of RSUs outstanding and expected to vest as of December 31, 2024 is based on the closing price of the Company’s stock of $93.20 as of December 31, 2024. As of December 31, 2024, the Company had $48.7 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 1.6 years. Common stock In 2024, the Company granted 0.01 million shares of common stock to Directors with a weighted-average grant-date fair value of $69.19 per share.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2024
Postemployment Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	17. 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) 2024 2023 2022 U.S. 401(k) Plan $ 7,937 $ 8,169 $ 8,994 International plans 20,303 21,256 21,141 $ 28,240 $ 29,425 $ 30,135

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	18. INCOME TAXES The components of income (loss) before provision for income taxes are: (in thousands) 2024 2023 2022 Domestic $ 51,966 $ 14,016 $ (185,820) Foreign 90,670 81,424 24,023 $ 142,636 $ 95,440 $ (161,797) The components of provision for income taxes are: (in thousands) 2024 2023 2022 Current: Federal $ 22,941 $ 7,827 $ 3,920 State 7,503 4,480 775 Foreign 14,547 14,962 10,200 Total current provision 44,991 27,269 14,895 Deferred: Federal — — 149,028 State — — 20,704 Foreign (1,544) 363 (842) Total deferred (benefit) provision (1,544) 363 168,890 $ 43,447 $ 27,632 $ 183,785 A reconciliation of the U.S federal statutory tax rate and the Company’s effective tax rate: (in thousands) 2024 2023 2022 U.S. federal income taxes at statutory rates $ 29,954 $ 20,042 $ (33,977) Valuation allowance (1,504) (19,272) 188,258 State income taxes, net of federal benefit and tax credits 1,297 4,117 (2,433) Permanent differences 786 435 11,561 Federal research and experimentation credits (4,888) (3,709) (5,012) Tax effects of foreign activities (7,817) 658 3,770 GILTI, FDII, and BEAT 13,945 14,022 16,390 Provision to return adjustments 121 (3,728) (6,317) Non-deductible compensation 10,933 6,818 4,769 Tax Reserves 5,917 1,850 5,673 Excess tax (benefits) / detriments related to share-based compensation (5,645) 4,666 1,563 Impact of change in tax law — 1,726 (793) Other 348 7 333 $ 43,447 $ 27,632 $ 183,785 The effective income tax rate in 2024 was primarily driven by the valuation allowance on our deferred tax assets and tax expense in the U.S. and U.K., partially offset by available tax attributes. Deferred income taxes Significant components of net deferred tax assets and liabilities are: December 31, (in thousands) 2024 2023 Deferred tax assets: Net operating loss carryforwards $ 72,089 $ 84,656 Accruals and reserves 57,312 41,323 Software revenue 454 3,186 Convertible senior notes 355 2,645 Tax credit carryforwards 10,441 28,456 Research and development capitalization 75,289 58,866 Total deferred tax assets 215,940 219,132 Valuation allowances (195,252) (196,901) Total net deferred tax assets 20,688 22,231 Deferred tax liabilities: Capped call transactions (57) (223) Depreciation (3,663) (4,428) Intangibles (9,116) (11,979) Other, net (3,554) (2,782) Total deferred tax liabilities (16,390) (19,412) $ 4,298 $ 2,819 The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. Future realization of deferred tax assets ultimately depends on sufficient taxable income within the available carryback or carryforward periods. The Company’s deferred tax valuation allowance requires significant judgment and has uncertainties, including assumptions about future taxable income based on historical and projected information . In assessing the Company’s ability to realize its net deferred tax assets, the Company considered various factors including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial results to determine whether it is more likely than not that some portion or all of its net deferred tax assets will not be realized. Based upon these factors, the Company has determined that the uncertainty regarding the realization of these assets is sufficient to warrant the need for a full valuation allowance against its net U.S. and U.K. deferred tax assets as of December 31, 2024. Accordingly, the Company maintained a valuation allowance of $195.3 million at December 31, 2024, a decrease of $1.6 million as a result of the operations of its entities throughout the year. Given the Company’s recent earnings, the Company believes that there is a reasonable possibility that in a future period sufficient positive evidence may become available to allow the Company to reach a conclusion that a substantial portion of the valuation allowance will no longer be needed. However, the exact timing and amount of the valuation allowance release are subject to significant judgement. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. The Company had approximately $5.4 million and $8.8 million of post apportionment state net operating loss carryforwards, as of December 31, 2024 and 2023, respectively. The U.S. state losses expire at various times through 2044. Additionally, as of December 31, 2024, the Company had $10.4 million of state tax credit carryforwards. The Company’s federal net operating loss carryforwards were approximately $14.2 million and $20.6 million at December 31, 2024 and 2023, respectively. These federal carryforward losses and state credits expire between 2025 and 2039, except for $1.2 million of federal net operating losses and $1 million of state credits, which have an unlimited carryforward period. The Company’s UK net operating loss carryforwards were approximately $147.9 million and $183.1 million at December 31, 2024 and 2023, respectively, which have indefinite carryforward periods. Uncertain tax benefits A rollforward of the Company’s gross unrecognized tax benefits is: (in thousands) 2024 2023 2022 Balance as of January 1, $ 30,655 $ 19,746 $ 17,584 Additions for tax positions related to the current year 7,316 4,859 1,706 Additions for tax positions of prior years 2,941 7,921 728 Reductions for tax positions of prior years (3,026) (1,871) (272) Balance as of December 31, $ 37,886 $ 30,655 $ 19,746 The total amount of accrued liabilities related to uncertain tax positions that would affect the Company's effective tax rate, if recognized, is $12.9 million as of December 31, 2024. Tax examinations The Company files federal and state income tax returns in the U.S. and 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, 2024, the Company’s U.S. federal tax returns for the years 2014 through 2019 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 2018 through 2022. 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 all tax years since 2018.

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	12 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	19. EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is calculated using the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated using the weighted-average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options, RSUs, and convertible senior notes. Calculation of earnings (loss) per share: (in thousands, except per share amounts) 2024 2023 2022 Net income (loss) $ 99,189 $ 67,808 $ (345,582) Weighted-average common shares outstanding 85,265 83,162 81,947 Earnings (loss) per share, basic $ 1.16 $ 0.82 $ (4.22) Net income (loss) $ 99,189 $ 67,808 $ (345,582) Convertible senior notes - interest expense and settlement gains, net of tax (76) (5,528) — Numerator for diluted EPS $ 99,113 $ 62,280 $ (345,582) Weighted-average effect of dilutive securities: Convertible senior notes 214 235 — Stock options 2,710 794 — RSUs 1,445 723 — Effect of dilutive securities 4,369 1,752 — Weighted-average common shares outstanding, assuming dilution (1) (2) (3) 89,634 84,914 81,947 Earnings per share, diluted $ 1.11 $ 0.73 $ (4.22) Outstanding anti-dilutive stock options and RSUs (4) 148 250 3,367 (1) All dilutive securities are excluded when their inclusion would be anti-dilutive. (2) The shares underlying the conversion options in the Company’s Notes are included using the if-converted method, if dilutive in the period. If the outstanding conversion options were fully exercised, the Company would issue approximately 3.5 million shares as of December 31, 2024. (3) The Company’s Capped Call Transactions represent the equivalent of approximately 3.5 million shares of the Company’s common stock (representing the number of shares for which the Notes are convertible) as of December 31, 2024. The Capped Call Transactions are expected to reduce common stock dilution and/or offset any potential cash payments the Company must make, other than for principal and interest, upon conversion of the Notes, with such reduction and/or offset subject to a cap of $196.44. The Capped Call Transactions are excluded from weighted-average common shares outstanding, assuming dilution, in all periods as their effect would be anti-dilutive. (4) Outstanding stock options and RSUs that were anti-dilutive under the treasury stock method in the period were excluded from the computation of diluted earnings per share. These awards may be dilutive in the future.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	20. COMMITMENTS AND CONTINGENCIES Commitments For additional information, see "Note 10. Leases". Legal proceedings In addition to the matters below, the Company is or may become involved in a variety of claims, demands, suits, investigations, and proceedings that arise from time to time relating to matters incidental to the ordinary course of the Company’s business, including actions concerning contracts, intellectual property, employment, benefits, and securities matters. Regardless of the outcome, legal disputes can have a material effect on the Company because of defense and settlement costs, diversion of management resources, and other factors. In addition, as the Company is a party to ongoing litigation, it is at least reasonably possible that the Company’s estimates will change in the near term, and the effect may be material. The Company had no accrued losses for litigation for the below matters as of December 31, 2024 and December 31, 2023. Appian Corp. v. Pegasystems Inc. & Youyong Zou The Company is a defendant in litigation brought by Appian in the Circuit Court of Fairfax County, Virginia (the “Court”) titled Appian Corp. v. Pegasystems Inc. & Youyong Zou, No. 2020-07216 (Fairfax Cty. Ct.). On May 9, 2022, the jury rendered its verdict finding that the Company had misappropriated one or more of Appian’s trade secrets, that the Company had violated the Virginia Computer Crimes Act, and that the trade secret misappropriation was willful and malicious. The jury awarded damages of $2,036,860,045 for trade secret misappropriation and $1.00 for violating the Virginia Computer Crimes Act. On September 15, 2022, the circuit court of Fairfax County entered judgment of $2,060,479,287, consisting of the damages previously awarded by the jury plus attorneys’ fees and costs, and stating that the judgment is subject to post-judgment interest at a rate of 6.0% per annum, from the date of the jury verdict (May 9, 2022) as to the amount of the jury verdict and from September 15, 2022 as to the amount of the award of attorneys’ fees and costs. On September 15, 2022, the Company filed a notice of appeal from the judgment. On September 29, 2022, the circuit court of Fairfax County approved a $25,000,000 letter of credit obtained by the Company to secure the judgment and entered an order suspending the judgment during the pendency of the Company’s appeal. A panel of the Court of Appeals of Virginia heard oral arguments on November 15, 2023, and issued a written opinion on July 30, 2024. The Court of Appeals reversed the judgment on Appian’s Virginia Uniform Trade Secrets Act claim and ordered a new trial on that claim. Appian filed a petition for appeal with the Supreme Court of Virginia on August 29, 2024, and the Company filed a response to the petition on October 21, 2024. Under the Court’s rules, Appian is entitled to a 10-minute oral argument in support of its petition. The Supreme Court of Virginia has scheduled that argument for February 11, 2025. Although it is not possible to predict timing, the entirety of the appeals process could potentially take years to complete. The Company continues to believe that it did not misappropriate any alleged trade secrets and that its sales of the Company’s products at issue were not caused by, or the result of, any alleged misappropriation of trade secrets. The Company is unable to reasonably estimate possible damages because of, among other things, uncertainty as to the outcome of appellate proceedings and/or any potential new trial resulting from the appellate proceedings. PS Lit Recovery, LLC v. Pegasystems Inc., Alan Trefler, and Kenneth Stillwell and Eminence Fund Long Master, Ltd., Eminence Fund Master, Ltd., Eminence Fund II Master, LP, Eminence Partners Long II, LP, Eminence Fund Leveraged Master, Ltd., Eminence Partners, L.P., Eminence Partners II, L.P. v. Pegasystems Inc., Alan Trefler, and Kenneth Stillwell On December 4, 2024, the shareholders representing approximately 3% of the settlement class that opted out of the court approved settlement in the class action matter captioned City of Fort Lauderdale Police and Firefighters’ Retirement System, Individually and on Behalf of All Others Similarly Situated v. Pegasystems Inc., Alan Trefler, and Kenneth Stillwell (Case 1:22-cv-00578-LMB-IDD) (the “Class Action”) filed two lawsuits against the Company, the Company’s chief executive officer, and the Company’s chief operating and financial officer in the United States District Court for the District of Massachusetts. The first is captioned Eminence Fund Long Master, Ltd., Eminence Fund Master, Ltd., Eminence Fund II Master, LP, Eminence Partners Long II, LP, Eminence Fund Leveraged Master, Ltd., Eminence Partners, L.P., and Eminence Partners II, L.P. v. Pegasystems Inc., Alan Trefler, and Kenneth Stillwell (Case 1:24-cv-12999-WGY); the second is captioned PS Lit Recovery, LLC v. Pegasystems Inc., Alan Trefler, and Kenneth Stillwell (Case 1:24-cv-11220-WGY). The complaints, which are substantially similar, generally allege, among other things, that the defendants violated Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, and that the individual defendants violated Section 20(a) of the Exchange Act, in each case by allegedly making materially false and/or misleading statements, as well as allegedly failing to disclose material adverse facts about the Company’s business, operations, and prospects, which caused the Company’s securities to trade at artificially inflated prices. The complaints also assert claims for common law fraud and negligent misrepresentation, and seek unspecified damages. The defendants’ motion to dismiss is due ten business days following the court’s entry of the parties’ stipulation coordinating the cases, which the parties filed in the court on February 4, 2025. The Company is unable to reasonably estimate possible damages or a range of possible damages in these matters given the stage of the lawsuits and there being no specified quantum of damages sought in the complaints. In re Pegasystems Inc., Derivative Litigation On November 21, 2022, a lawsuit was filed against the members of the Company’s board of directors, the Company’s chief operating and financial officer and the Company in the United States District Court for the District of Massachusetts, captioned Mary Larkin, derivatively on behalf of nominal defendant Pegasystems Inc. v. Peter Gyenes, Richard Jones, Christopher Lafond, Dianne Ledingham, Sharon Rowlands, Alan Trefler, Larry Weber, and Kenneth Stillwell, defendants, and Pegasystems Inc., nominal defendant (Case 1:22-cv-11985). The complaint generally alleges the defendants sold shares of the Company while in possession of material nonpublic information relating to (i) the litigation brought by Appian in the Circuit Court of Fairfax County, Virginia, described above, and (ii) alleged misconduct by Company employees alleged in that litigation. On April 28, 2023, a lawsuit was filed in the United States District Court for the District of Massachusetts by Dag Sagfors, derivatively on behalf of nominal defendant Pegasystems Inc., asserting breach of fiduciary duty and related claims relating to the Virginia Appian litigation against the same defendants as the Larkin lawsuit. On May 17, 2023, the Larkin and Sagfors cases were consolidated and a joint motion to stay the consolidated case is pending before the Court (“Consolidated Action”). The Company also has received confidential demand letters raising substantially the same allegations set forth in the foregoing derivative complaints. On April 12, 2023, the Company’s board of directors (other than Mr. Trefler, who recused himself), formed a committee consisting solely of independent directors, to review, analyze, and investigate the matters raised in the demands and to determine in good faith what actions (if any) are reasonably believed to be appropriate under similar circumstances and reasonably believed to be in the best interests of the Company in response to the demand letters On December 4, 2024, the defendants moved to dismiss the complaint in the Consolidated Action. On December 17, 2024, the plaintiffs moved to voluntarily dismiss the Consolidated Action, and the Court granted the motion on December 18, 2024. On February 7, 2025, the plaintiffs in the Consolidated Action filed a new complaint against the members of the Company’s board of directors, certain employees of the Company, and the Company in the United States District Court for the District of Massachusetts, captioned Mary Larkin and Dag Sagfors, derivatively on behalf of nominal defendant Pegasystems Inc. v. Alan Trefler, Peter Gyenes, Richard Jones, Christopher Lafond, Dianne Ledingham, Sharon Rowlands, Leon Trefler, Larry Weber, Kenneth Stillwell, Don Schuerman, Kerim Akgonul, and Benjamin Baril, defendants, and Pegasystems Inc., nominal defendant (Case 1:25-cv-10303). The complaint asserts against Defendants claims for breach of fiduciary duty, unjust enrichment, and violations of the Exchange Act relating to (i) the litigation brought by Appian in the Circuit Court of Fairfax County, Virginia, described above; (ii) alleged misconduct by Company employees alleged in that litigation; and the Class Action, described above. On June 28, 2024, a lawsuit was filed against members of the Company’s board of directors, certain employees of the Company and the Company in the Business Litigation Section of the Superior Court in Suffolk County, Massachusetts, captioned John Dwyer and Ray Gerber, Plaintiffs, v. Alan Trefler, Peter Gyenes, Richard Jones, Christopher Lafond, Dianne Ledingham, Sharon Rowlands, Larry Weber, Leon Trefler, Don Schuerman, Kerim Akgonul, and Benjamin Baril, Defendants, and Pegasystems Inc., Nominal Defendant (Case 2484CV01734) (“Dwyer Action”). The complaint generally alleges the defendants breached their fiduciary duties in connection with alleged misconduct by Company employees alleged in the litigation brought by Appian in the Circuit Court of Fairfax County, Virginia, described above, and alleges damages from the approximately $2 billion verdict in the litigation brought by Appian in the Circuit Court of Fairfax County, Virginia, described above, the settlement of the Class Action, and litigation costs from various proceedings. On October 18, 2024 the defendants served a motion to dismiss the complaint, which the defendants then withdrew on November 26, 2024 pending resolution of whether this complaint and the other derivative actions would be consolidated in Superior Court in Suffolk County, Massachusetts. On November 22, 2024, a lawsuit was filed against members of the Company’s board of directors, certain employees of the Company and the Company in the Business Litigation Section of the Superior Court in Suffolk County, Massachusetts, captioned Jayne Birch and Robert Garfield, Plaintiffs, v. Alan Trefler, Peter Gyenes, Richard Jones, Christopher Lafond, Dianne Ledingham, Sharon Rowlands, Larry Weber, Leon Trefler, Kerim Akgonul, Don Schuerman, Leon Trefler, Douglas Kim, John Petronio, Benjamin Baril, and Kenneth Stillwell, Defendants, and Pegasystems Inc., Nominal Defendant (Case 2484CV03076-BLS-1) (“Birch Action”). The complaint generally alleges the defendants breached their fiduciary duties in connection with alleged misconduct by Company employees alleged in the litigation brought by Appian in the Circuit Court of Fairfax County, Virginia, described above, and alleges damages from the approximately $2 billion verdict in the litigation brought by Appian in the Circuit Court of Fairfax County, Virginia, described above, the settlement of the Class Action, and litigation costs from various proceedings. The parties agreed on November 26, 2024 to suspend indefinitely the deadlines for any response to the complaint pending resolution of whether this complaint and the other derivative actions would be consolidated in the Superior Court in Suffolk County, Massachusetts. On February 4, 2025, the parties to the Dwyer and Birch Actions filed a stipulation and proposed order in the Business Litigation Section of the Superior Court in Suffolk County, Massachusetts consolidating the two actions and setting a schedule for the filing of a consolidated complaint and any motion to dismiss. Pursuant to the stipulation, a consolidated complaint must be filed by March 18, 2025, and any motion to dismiss must be served by May 15, 2025. The court held a hearing on February 11, 2025, at which it indicated it would issue an order consolidating the Dwyer and Birch Actions and approving the schedule for the filing of a consolidated complaint and a motion to dismiss. The court scheduled a hearing on the motion to dismiss for September 4, 2025. The Company is unable to reasonably estimate possible damages or a range of possible damages in these matters given the stage of the lawsuits and there being no specified quantum of damages sought in the complaints.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 99,189	$ 67,808	$ (345,582)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	12 Months Ended
	Dec. 31, 2024 shares	Dec. 31, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Alan Trefler [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On November 6, 2024, Alan Trefler, our Chief Executive Officer, entered into a trading plan that provides for the sale of 630,000 shares of our common stock. The plan will terminate on January 22, 2026, subject to early termination for certain specified events set forth in the plan.
Name	Alan Trefler
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	November 6, 2024
Expiration Date	January 22, 2026
Arrangement Duration	442 days
Aggregate Available	630,000	630,000
Rifat Kerim Akgonul [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On November 25, 2024, Rifat Kerim Akgonul, our Chief Product Officer, entered into a trading plan that provides for the sale of 18,000 shares of our common stock. The plan will terminate on March 31, 2026, subject to early termination for certain specified events set forth in the plan.
Name	Rifat Kerim Akgonul
Title	Chief Product Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	November 25, 2024
Expiration Date	March 31, 2026
Arrangement Duration	491 days
Aggregate Available	18,000	18,000
Leon Trefler [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On November 26, 2024, Leon Trefler, our Chief of Clients and Markets, entered into a trading plan that provides for the sale of 8,198 shares of our common stock. The plan will terminate on December 31, 2025, subject to early termination for certain specified events set forth in the plan.
Name	Leon Trefler
Title	Chief of Clients and Markets,
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	November 26, 2024
Expiration Date	December 31, 2025
Arrangement Duration	400 days
Aggregate Available	8,198	8,198

Insider Trading Policies and Pr

Insider Trading Policies and Procedures	12 Months Ended
	Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

Cybersecurity Risk Management a

Cybersecurity Risk Management and Strategy Disclosure	12 Months Ended
	Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]	We recognize the critical importance of maintaining the safety and security of our systems and data and have a comprehensive approach to overseeing and managing cybersecurity and related risks. Our Board of Directors (the “Board”), the Audit Committee of the Board (the “Audit Committee”), and our management are actively involved in the oversight of our risk management program, of which cybersecurity represents an important component. We have established policies, standards, processes, and practices for assessing, identifying, and managing material risks from cybersecurity threats. A key component of this is our standing Security Steering Group (“SSG”), whose members include, among others, our Chief Information Security Officer (“CISO”), Chief Product Officer, and Vice President of Cloud Technology. We have devoted significant financial and personnel resources to implement and maintain security measures to meet regulatory requirements and customer expectations, and we intend to continue to make significant investments to maintain the security of our data and cybersecurity infrastructure. There can be no guarantee that our policies, standards, processes, and practices will be properly followed in every instance or that they will be effective. Although we are not aware of having experienced any prior material data breaches, regulatory non-compliance incidents, or cyber security incidents, we may in the future be impacted by such an event, exposing our clients and us to the risk of someone obtaining access to our information, to the information of our clients or their customers, or to our intellectual property, disabling or degrading service, or sabotaging systems or information. Any such security incident could result in a loss of confidence in the security of our services, damage our reputation, disrupt our business, require us to incur significant costs of investigation, remediation, and/or payment of a ransom, lead to legal liability, negatively impact our future sales, and result in a substantial financial loss. For additional information, see "Item 1A. Risk Factors" of this Annual Report. Risk Management and Strategy Our policies, standards, processes, and practices for assessing, identifying, and managing material risks from cybersecurity threats are integrated into our overall risk management program and are based on frameworks established by the National Institute of Standards and Technology, the International Organization for Standardization, and certain other applicable industry standards. Our cybersecurity program focuses on the following key areas: Collaboration We have implemented a governance structure and processes to aggregate reported cybersecurity risks on behalf of Pega Cloud, Pega’s software products, and the corporate environment. Our SSG is responsible for providing strategic direction for implementing and maintaining our cyber risk management program. Risk Assessment Our cyber risk management program is designed to follow the ISO 31000 and the NIST Special Publication 800-37 frameworks and is within the scope of our ISO 27001 certifications. At least annually, we conduct cybersecurity risk assessments that consider information from internal stakeholders, known information security vulnerabilities, and information from external sources, such as reported security incidents that have impacted other companies, industry trends, and evaluations by third parties and consultants. The results of the assessments are provided to our SSG and are used to drive alignment on, and prioritization of, initiatives to enhance our security controls, make recommendations to improve processes, and inform our broader enterprise-level risk assessment. Key findings of these assessments are periodically presented to the Board and the Audit Committee. Technical Safeguards We regularly assess and deploy technical safeguards designed to protect our information systems from cybersecurity threats. Such safeguards are regularly evaluated and improved based on vulnerability assessments, cybersecurity threat intelligence, and incident response experience. Incident Response and Recovery Planning We have implemented Cyber Incident Response Programs, which are within the scope of our ISO 27001 certifications. We have also implemented Business Continuity Programs, which are within the scope of our ISO 22301 certification. We have established comprehensive incident response and recovery plans and test and evaluate the effectiveness of those plans regularly. Third-Party Risk Management We have implemented a Vendor Cybersecurity Risk Management Program (“VCRMP”), which is within the scope of our ISO 27001 certifications. The VCRMP controls are designed to identify and mitigate cybersecurity threats associated with our use of third-party service providers. These providers are subject to security risk assessments at the time of onboarding, contract renewal, and upon detection of an increase in risk profile. We use a variety of inputs in making these risk assessments, including information supplied by providers and third parties. In addition, we require our providers to meet appropriate security requirements, controls and responsibilities, and investigate security incidents that have impacted our third-party providers, as appropriate. Education and Awareness We require all employees to participate in security awareness training, including frequent phishing tests. Currently, our mandatory employee training courses include Security Awareness, Physical Security Awareness, Mobile Device Security, Business Continuity and Phishing, Work From Home, and AI Chatbot. In addition, all of our employee software developers are required to take additional security awareness training, currently including Secure Development. We periodically adjust the list of mandatory and optional courses. Corporate Security Posture We periodically conduct independent security assessments to assess our corporate environment’s security posture and inform where cyber security investments should be made. For systems in our corporate environment where our cloud certifications have an operational dependency, we also maintain ISO/IEC 27001 certifications relating to overall IT processes and controls and ISO 22301 certification relating to business continuity. Product Security Posture To facilitate identification of security vulnerabilities in our products, we periodically conduct third party penetration tests and participate in the independent Verified By Veracode program, as detailed on its website (https://www.veracode.com/verified/directory/pegasystemsInc) which is included as an inactive reference and the content of which is not incorporated by reference into this Annual Report . We also generate a monthly software bill of materials that identifies open source included in certain of our product offerings and periodically have an independent security assessment firm evaluate the security risks linked to suppliers we use, including source code repositories, the infrastructure employed for software development, and the mechanisms used for software delivery, such as Amazon Web Services (“AWS”), Google Cloud, and Microsoft Azure. Our Chief Product Officer reviews these findings and provides updates to our SSG. We regularly release new versions of our products to address identified security vulnerabilities, enabling clients to stay updated with the latest product releases. However, even after we make these updates available, it is possible that clients do not implement these updates or use products on extended support that do not include security updates. Pega Cloud Security Posture Pega Cloud undergoes several security assessments a year. Redacted versions of these reports are made available to our clients. Pega Cloud also maintains several security certifications, which are listed at https://pega.com/trust, which is included as an inactive reference and the content of which is not incorporated by reference into this Annual Report. Pega Cloud for Government is rated FedRAMP Moderate and undergoes several security assessments a year as part of the FedRAMP certification process. Our Vice President of Cloud Technology reviews these assessments and provides updates to our SSG.
Cybersecurity Risk Management Processes Integrated [Flag]	true
Cybersecurity Risk Management Processes Integrated [Text Block]	Our policies, standards, processes, and practices for assessing, identifying, and managing material risks from cybersecurity threats are integrated into our overall risk management program and are based on frameworks established by the National Institute of Standards and Technology, the International Organization for Standardization, and certain other applicable industry standards.
Cybersecurity Risk Management Third Party Engaged [Flag]	true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag]	true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]	false
Cybersecurity Risk Board of Directors Oversight [Text Block]	As part of our corporate governance process, the Board, along with the Audit Committee, oversee our risk management process, which includes cybersecurity and related risks. Our CISO periodically meets with the Board and Audit Committee to inform and update them on our cybersecurity program.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]	As part of our corporate governance process, the Board, along with the Audit Committee, oversee our risk management process, which includes cybersecurity and related risks. Our CISO periodically meets with the Board and Audit Committee to inform and update them on our cybersecurity program.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]	As part of our corporate governance process, the Board, along with the Audit Committee, oversee our risk management process, which includes cybersecurity and related risks. Our CISO periodically meets with the Board and Audit Committee to inform and update them on our cybersecurity program.
Cybersecurity Risk Role of Management [Text Block]	As part of our corporate governance process, the Board, along with the Audit Committee, oversee our risk management process, which includes cybersecurity and related risks. Our CISO periodically meets with the Board and Audit Committee to inform and update them on our cybersecurity program. SSG and Key Personnel We have a standing SSG whose members include, among others, our CISO, Chief Product Officer, and Vice President of Cloud Technology. The SSG is charged with providing strategic direction for the implementation and ongoing operation of our cyber security program. The SSG meets at least quarterly. Our CISO chairs the SSG and decisions and recommendations are based on a consensus of the members. Our CISO has over twenty years of professional experience, with twelve years in information security roles. He has been with Pega for five years and has a Master of Science degree from Northwestern University. Our Chief Product Officer has been with Pega for thirty-two years, has extensive experience in software development, and has a Bachelor of Science from the Indiana University of Pennsylvania. Our Vice President of Cloud Technology has been with Pega for seven years and has twenty-five years of networking and security management experience, with seventeen years of leadership roles in cloud services and related information security issues.
Cybersecurity Risk Management Positions or Committees Responsible [Flag]	true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]	We have a standing SSG whose members include, among others, our CISO, Chief Product Officer, and Vice President of Cloud Technology. The SSG is charged with providing strategic direction for the implementation and ongoing operation of our cyber security program. The SSG meets at least quarterly. Our CISO chairs the SSG and decisions and recommendations are based on a consensus of the members.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]	Our CISO has over twenty years of professional experience, with twelve years in information security roles. He has been with Pega for five years and has a Master of Science degree from Northwestern University. Our Chief Product Officer has been with Pega for thirty-two years, has extensive experience in software development, and has a Bachelor of Science from the Indiana University of Pennsylvania. Our Vice President of Cloud Technology has been with Pega for seven years and has twenty-five years of networking and security management experience, with seventeen years of leadership roles in cloud services and related information security issues.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]	We have a standing SSG whose members include, among others, our CISO, Chief Product Officer, and Vice President of Cloud Technology. The SSG is charged with providing strategic direction for the implementation and ongoing operation of our cyber security program. The SSG meets at least quarterly. Our CISO chairs the SSG and decisions and recommendations are based on a consensus of the members.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag]	true

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2024
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, and goodwill.
Principles of consolidation	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	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, income (loss) from operations, or net income (loss).
Revenue and deferred commissions	Revenue The Company’s revenue is primarily derived from: • Subscription services, 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, 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, composed of revenue from 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, 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 stand-alone selling price is typically determined When performance obligation is typically satisfied When payment is typically due Income statement line item 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 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 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 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 the 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 represents 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, the Company’s 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 gives rise to variable fees. 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 significant future 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 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 when the performance obligation was satisfied and the amount of consideration 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 2024, 2023, and 2022, 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. If a contract modification does not meet both criteria, it is accounted for either: • on a prospective basis as a termination of the existing contract and the creation of a new contract; or • on 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. Commissions earned upon the execution of initial contracts 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 lifecycle, and the competitive marketplace’s influence on the products and services sold. Deferred costs allocated to maintenance and deferred costs for Pega Cloud arrangements are amortized over an average expected benefit period of 4.5 years. Deferred costs allocated to software licenses, and any expected renewals of term software licenses within the 4.5 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. Commissions earned on contract amendments and renewals are allocated to each performance obligation within the contract and amortized over the contractual term.
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 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 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 on the specific investment.
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 life of each asset, 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 of 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 lease term. Variable lease costs include payments required under leases for common area maintenance, real estate taxes, utilities, service charges, and other variable costs that are not reflected in the measurement of right of use assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. The Company combines lease and non-lease components when determining 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 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 three
Goodwill	Goodwill
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 and other investments with original maturities of three months or less.
Restricted cash	Restricted cash The Company records restricted cash amounts as a current asset on the consolidated balance sheets if the restriction expires in less than 12 months, or as a non-current asset if the restriction is greater than 12 months. If there is no minimum time frame during which the cash must remain restricted, the nature of the transactions related to the restriction determine the classification. Restricted cash primarily relates to amounts deposited to secure customer guarantees and various letters of credit.
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 reevaluates these estimates and assumptions quarterly as new information arises 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
Stock-based compensation	Stock-based compensation
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, 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 realized, as a reduction of the provision for income taxes. The Company assesses its income tax positions and records tax benefits based on 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.
Advertising expense	Advertising expense
Newly adopted accounting pronouncements and Accounting pronouncements not yet effective	Newly adopted accounting pronouncements Segment reporting In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (“ASU 2023-07”). The amendments in ASU 2023-07 are effective for all public entities for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 did not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. Under ASU 2023-07, public entities with a single reportable segment must apply all of the ASU’s disclosure requirements and the existing segment disclosure and reconciliation requirements in ASC 280 - Segment Reporting on an annual and interim basis. The Company implemented this ASU in 2024 and its impact was immaterial. Accounting pronouncements not yet effective Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 includes expanded income tax rate reconciliation disclosures, a disaggregation of income taxes paid, and other expanded disclosures. The ASU will be effective for the Company for the year ending December 31, 2025. The Company expects the adoption to result in disclosure changes only. Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03 , Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU “2024-03”). Among other items, the requirements include expanded disclosures around employee compensation and selling expenses. ASU 2024-03 will be effective for the Company for the year ending December 31, 2027. The Company is still evaluating the impact of this new guidance on its consolidated financial statements but expect the adoption to result in disclosure changes only.
Assets and Liabilities measured at fair value on a recurring basis	Assets and liabilities measured at fair value on a recurring basis The Company records its cash equivalents, marketable securities, capped call transactions, and venture investments at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants based on assumptions that market participants would use in pricing an asset or liability. As a basis for classifying the fair value measurements, a three-tier fair value hierarchy, which classifies the fair value measurements based on the inputs used in measuring fair value, was established as follows: • Level 1 - observable inputs, such as quoted prices in active markets for identical assets or liabilities; • Level 2 - significant other inputs that are observable either directly or indirectly; and • Level 3 - significant unobservable inputs with little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data when available and minimize unobservable inputs when determining fair value. The fair value of the Capped Call Transactions at the end of each reporting period is determined using a Black-Scholes option-pricing model. The valuation model uses various market-based inputs, including stock price, remaining contractual term, expected volatility, risk-free interest rate, and expected dividend yield. The Company applies judgment when determining expected volatility. The Company considers the underlying equity security’s historical and implied volatility levels. The Company’s venture investments are recorded at fair value based on multiple valuation methods, including observable public companies and transaction prices and unobservable inputs, including the volatility, rights, and obligations of the securities the Company holds.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Schedule of Performance Obligations	The Company’s typical performance obligations are: Performance obligation How stand-alone selling price is typically determined When performance obligation is typically satisfied When payment is typically due Income statement line item 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 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 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 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, 2024: (Dollars in thousands) Subscription services Subscription license Perpetual license Consulting Total Pega Cloud Maintenance 1 year or less $ 525,133 $ 230,866 $ 88,880 $ 317 $ 50,519 $ 895,715 56 % 1-2 years 328,234 65,461 10,874 — 3,297 407,866 25 % 2-3 years 159,536 24,598 733 — 125 184,992 11 % Greater than 3 years 114,256 19,935 678 — 50 134,919 8 % $ 1,127,159 $ 340,860 $ 101,165 $ 317 $ 53,991 $ 1,623,492 100 % As of December 31, 2023: (Dollars in thousands) Subscription services Subscription license Perpetual license Consulting Total Pega Cloud Maintenance 1 year or less $ 446,160 $ 245,271 $ 62,070 $ 2,284 $ 39,810 $ 795,595 54 % 1-2 years 279,474 67,720 9,138 443 2,020 358,795 25 % 2-3 years 144,453 37,142 9,789 — 2,896 194,280 13 % Greater than 3 years 90,177 24,421 100 — — 114,698 8 % $ 960,264 $ 374,554 $ 81,097 $ 2,727 $ 44,726 $ 1,463,368 100 %

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Marketable Securities	December 31, 2024 December 31, 2023 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Government debt $ 11,851 $ 1 $ (19) $ 11,833 $ 11,471 $ 33 $ (1) $ 11,503 Corporate debt 391,097 63 (123) 391,037 181,960 200 (227) 181,933 $ 402,948 $ 64 $ (142) $ 402,870 $ 193,431 $ 233 $ (228) $ 193,436

RECEIVABLES, CONTRACT ASSETS,_2

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE (Tables)	12 Months Ended
	Dec. 31, 2024
Receivables [Abstract]
Schedule of Receivables	Receivables (in thousands) December 31, 2024 December 31, 2023 Accounts receivable, net $ 305,468 $ 300,173 Unbilled receivables, net 173,085 237,379 Long-term unbilled receivables, net 61,407 85,402 $ 539,960 $ 622,954
Schedule of Unbilled Receivables	Unbilled receivables Unbilled receivables are client-committed amounts for which revenue recognition precedes billing. Billing is solely subject to the passage of time. Unbilled receivables by expected collection date: (Dollars in thousands) December 31, 2024 1 year or less $ 173,085 74 % 1-2 years 43,341 18 % 2-5 years 18,066 8 % $ 234,492 100 %
Schedule of Unbilled Receivables by Contract Effective Date	Unbilled receivables by contract effective date: (Dollars in thousands) December 31, 2024 2024 $ 137,027 58 % 2023 79,650 35 % 2022 10,357 4 % 2021 5,836 2 % 2020 and prior 1,622 1 % $ 234,492 100 %
Schedule of Major Clients	Major clients Clients that represented 10% or more of the Company’s total accounts receivable and unbilled receivables: December 31, 2024 December 31, 2023 Client A Accounts receivable 20 % * Unbilled receivables — % * Total receivables 11 % * * Client accounted for less than 10% of receivables.
Schedule of Contract Assets and Deferred Revenue	Contract assets Contract assets are client-committed amounts for which revenue recognized exceeds the amount billed to the client, and billing is subject to conditions other than the passage of time, such as the completion of a related performance obligation. (in thousands) December 31, 2024 December 31, 2023 Contract assets (1) $ 13,498 $ 16,238 Long-term contract assets (2) 18,321 20,635 $ 31,819 $ 36,873 (1) Included in other current assets. (2) Included in other long-term assets. Deferred revenue Deferred revenue consists of billings made and payments received in advance of revenue recognition. (in thousands) December 31, 2024 December 31, 2023 Deferred revenue $ 423,910 $ 377,845 Long-term deferred revenue (1) 2,121 2,478 $ 426,031 $ 380,323 (1) Included in other long-term liabilities.

DEFERRED COMMISSIONS (Tables)

DEFERRED COMMISSIONS (Tables)	12 Months Ended
	Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Impairment of Deferred Contract Costs	December 31, (in thousands) 2024 2023 Deferred commissions (1) $ 105,405 $ 114,119 (1) Included in other long-term assets.
Schedule of Amortization of Deferred Contract Costs	(in thousands) 2024 2023 2022 Amortization of deferred commissions (1) $ 62,269 $ 59,461 $ 53,471 (1) Included in selling and marketing expenses.

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	(in thousands) December 31, 2024 2023 Leasehold improvements $ 51,932 $ 62,787 Computer equipment 29,817 31,144 Furniture and fixtures 4,603 6,665 Computer software purchased 9,918 10,060 Computer software developed for internal use 19,776 19,470 Fixed assets in progress 5,038 223 121,084 130,349 Less: accumulated depreciation (79,278) (83,070) $ 41,806 $ 47,279 (1) Included in other long-term assets. During 2024, $17.8 million of depreciated assets were disposed of, which primarily related to office closures. (in thousands) 2024 2023 2022 Depreciation expense $ 14,432 $ 14,806 $ 14,687
Schedule of Depreciation Expense	(1) Included in other long-term assets. During 2024, $17.8 million of depreciated assets were disposed of, which primarily related to office closures. (in thousands) 2024 2023 2022 Depreciation expense $ 14,432 $ 14,806 $ 14,687

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	(in thousands) 2024 2023 January 1, $ 81,611 $ 81,399 Currency translation adjustments (498) 212 December 31, $ 81,113 $ 81,611
Schedule of Intangibles	Intangible assets are recorded at cost and amortized using the straight-line method over their estimated useful lives: December 31, 2024 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value (1) Client-related 4-10 years $ 63,107 $ (61,395) $ 1,712 Technology 2-10 years 68,115 (65,995) 2,120 Other 1-5 years 5,361 (5,361) — $ 136,583 $ (132,751) $ 3,832 (1) Included in other long-term assets. December 31, 2023 (in thousands) Useful Lives Cost Accumulated Amortization Net Book Value (1) Client-related 4-10 years $ 63,117 $ (60,035) $ 3,082 Technology 2-10 years 68,138 (64,218) 3,920 Other 1-5 years 5,361 (5,361) — $ 136,616 $ (129,614) $ 7,002 (1) Included in other long-term assets.
Schedule of Future Estimated Intangibles Assets Amortization	Future estimated intangible assets amortization: (in thousands) December 31, 2024 2025 $ 2,630 2026 874 2027 328 $ 3,832
Schedule of Amortization of Intangible Assets	Amortization of intangible assets: (in thousands) 2024 2023 2022 Cost of revenue $ 1,783 $ 2,570 $ 2,723 Selling and marketing 1,370 1,370 1,370 $ 3,153 $ 3,940 $ 4,093

OTHER ASSETS AND LIABILITIES (T

OTHER ASSETS AND LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2024
Other Assets and Liabilities [Abstract]
Schedule of Other Assets and Other Liabilities	Other current assets (in thousands) December 31, 2024 December 31, 2023 Prepaid expenses $ 38,155 $ 33,647 Income tax receivables 58,359 4,804 Contract assets 13,498 16,238 Insurance receivable — 1,954 Indirect tax receivable 2,488 1,924 Capped call transactions 223 — Restricted cash 98 — Other 2,357 9,570 $ 115,178 $ 68,137 Other long-term assets (in thousands) December 31, 2024 December 31, 2023 Deferred commissions $ 105,405 $ 114,119 Right of use assets 62,429 64,198 Property and equipment 41,806 47,279 Venture investments 21,234 19,450 Contract assets 18,321 20,635 Income tax receivables 13,299 20,633 Intangible assets 3,832 7,002 Capped call transactions — 893 Deferred income taxes 4,268 3,678 Restricted cash 4,328 2,925 Other 17,127 13,884 $ 292,049 $ 314,696 Accrued expenses (in thousands) December 31, 2024 December 31, 2023 Cloud hosting $ 1,802 $ 1,358 Outside professional services 10,639 10,419 Marketing and sales program 2,150 2,557 Income and other taxes 5,055 15,428 Employee related 4,833 4,486 Repurchases of common stock unsettled 1,500 — Other 5,565 5,693 $ 31,544 $ 39,941 Other current liabilities (in thousands) December 31, 2024 December 31, 2023 Operating lease liabilities $ 14,551 $ 15,000 Dividends payable 2,583 2,515 Other 1,732 3,828 $ 18,866 $ 21,343 Other long-term liabilities (in thousands) December 31, 2024 December 31, 2023 Deferred revenue $ 2,121 $ 2,478 Income taxes payable 15,956 859 Other 11,011 10,233 $ 29,088 $ 13,570

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2024
Segment Reporting [Abstract]
Schedule of Information of Operation Income (Expense)	(in thousands) 2024 2023 2022 Total revenue $ 1,497,180 $ 1,432,616 $ 1,317,845 Total cost of revenue 390,665 378,483 368,635 Selling 450,527 474,405 519,192 Marketing 84,253 84,772 105,597 Research and development 298,074 295,512 294,349 General and administrative 112,848 96,743 117,734 Other segment items, net (1) 18,177 7,261 74,135 Provision for income taxes 43,447 27,632 183,785 Net income (loss) $ 99,189 $ 67,808 $ (345,582) (1) Includes Litigation settlement, net of recoveries, Restructuring, Foreign currency transaction (loss) gain, Interest income, Interest expense, (Loss) on capped call transactions, and Other income, net.
Schedule of Long-Lived Assets by Geographic Area	Long-lived assets related to the Company’s U.S. and international operations consist of property and equipment, which are included in Other long-term assets in the Company’s consolidated balance sheet: (in thousands) December 31, 2024 December 31, 2023 U.S. $ 37,405 89 % $ 44,414 94 % International 4,401 11 % 2,865 6 % $ 41,806 100 % $ 47,279 100 %

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2024
Leases [Abstract]
Schedule of Expense	Expense (in thousands) 2024 2023 2022 Fixed lease costs $ 21,422 $ 19,718 $ 20,186 Short-term lease costs 1,746 2,884 3,356 Variable lease costs 6,901 8,148 3,894 $ 30,069 $ 30,750 $ 27,436
Schedule of Right of Use Asset and Lease Liabilities	Right of use assets and lease liabilities (in thousands) December 31, 2024 December 31, 2023 Right of use assets (1) $ 62,429 $ 64,198 Operating lease liabilities (2) $ 14,551 $ 15,000 Long-term operating lease liabilities $ 67,647 $ 66,901 (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, 2024 December 31, 2023 Weighted-average remaining lease term 6.2 years 6.8 years Weighted-average discount rate (1) 4.8 % 4.0 % (1) The rates implicit in the Company’s leases are not readily determinable. Therefore, the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur to borrow an amount equal to the lease payments on a collateralized basis over the lease term in a similar economic environment.
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities: (in thousands) December 31, 2024 2025 $ 18,106 2026 15,404 2027 13,972 2028 13,367 2029 10,742 Thereafter 23,535 Total lease payments 95,126 Less: imputed interest (1) (12,928) $ 82,198 (1) Lease liabilities are measured at the present value of the remaining lease payments using a discount rate determined at lease commencement unless the discount rate is updated due to a lease reassessment event.
Schedule of Cash Flow Lease Information	Cash flow information (in thousands) 2024 2023 Cash paid for operating leases, net of tenant improvement allowances $ 18,444 $ 20,045 Right of use assets recognized for new leases and amendments (non-cash) $ 16,682 $ 1,460

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2024
Debt Disclosure [Abstract]
Schedule of Carrying Value and Interest Expense Related to the Notes	Carrying value of the Notes: (in thousands) December 31, 2024 December 31, 2023 Principal $ 467,864 $ 502,270 Unamortized issuance costs (394) (2,902) Convertible senior notes, net $ 467,470 $ 499,368 Interest expense related to the Notes: (in thousands) 2024 2023 Contractual interest expense (0.75% coupon) $ 3,725 $ 3,891 Amortization of issuance costs 2,451 2,603 $ 6,176 $ 6,494
Schedule of Future Payments	Future payments of principal and contractual interest: December 31, 2024 (in thousands) Principal Interest Total 2025 $ 467,864 $ 1,754 $ 469,618 $ 467,864 $ 1,754 $ 469,618
Schedule of Change in Capped Call Transactions	Change in capped call transactions: (in thousands) 2024 2023 January 1, $ 893 $ 2,582 Settlements (7) (341) Fair value adjustment (663) (1,348) December 31, $ 223 $ 893

RESTRUCTURING (Tables)

RESTRUCTURING (Tables)	12 Months Ended
	Dec. 31, 2024
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Activities	The Company has undertaken the following restructuring activities as it optimizes its go-to-market strategy and reassesses its office space needs: (in thousands) 2024 2023 2022 Employee severance and related benefits $ (614) $ 18,721 $ 18,549 Office space reductions (1) 5,142 3,026 3,194 $ 4,528 $ 21,747 $ 21,743 (1) These primarily relate to non-cash operating lease adjustments. Restructuring activity: Accrued employee severance and related benefits: (in thousands) 2024 January 1, $ 8,095 Costs incurred (614) Cash disbursements (5,252) Currency translation adjustments (229) December 31, (1) $ 2,000 (1) Included in accrued compensation and related expenses.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value	Assets and liabilities measured at fair value on a recurring basis: December 31, 2024 December 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents $ 5,318 $ 148,926 $ — $ 154,244 $ 54,357 $ — $ — $ 54,357 Marketable securities $ — $ 402,870 $ — $ 402,870 $ — $ 193,436 $ — $ 193,436 Capped Call Transactions $ — $ 223 $ — $ 223 $ — $ 893 $ — $ 893 Venture investments $ — $ — $ 21,234 $ 21,234 $ — $ — $ 19,450 $ 19,450
Schedule of Changes in Venture Investments	Changes in venture investments: (in thousands) 2024 2023 January 1, $ 19,450 $ 13,069 New investments 550 400 Sales of investments — (2,773) Changes in foreign exchange rates (32) 129 Changes in fair value: included in other income, net 1,628 10,886 included in other comprehensive income (362) (2,261) December 31, $ 21,234 $ 19,450

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2024
Equity [Abstract]
Schedule of Dividends Declared	Dividends declared 2024 2023 2022 Dividends declared (per share) $ 0.12 $ 0.12 $ 0.12 Dividend payments to stockholders (in thousands) $ 10,199 $ 9,964 $ 9,834
Schedule of Stock Repurchases	Stock repurchase authorization activity: (in thousands) 2024 2023 2022 Shares Amount Shares Amount Shares Amount January 1, $ 60,000 $ 58,075 $ 22,583 Authorizations (1) 250,000 1,925 60,000 Repurchases paid (2) (809) (68,057) — — (280) (24,508) Repurchases unpaid at period end (2) (16) (1,500) — — — — December 31, $ 240,443 $ 60,000 $ 58,075 (1) This represents increases in the repurchase authority made by th e Board of Directors.

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
	Dec. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Geographic Revenue	Geographic revenue Revenues by geography are determined based on client location: (Dollars in thousands) 2024 2023 2022 U.S. $ 828,332 55 % $ 785,029 55 % $ 763,558 57 % Other Americas 95,698 6 % 85,149 6 % 102,980 8 % United Kingdom (“U.K.”) 157,830 11 % 158,014 11 % 115,793 9 % Europe (excluding U.K.), Middle East, and Africa 249,325 17 % 242,303 17 % 194,563 15 % Asia-Pacific 165,995 11 % 162,121 11 % 140,951 11 % $ 1,497,180 100 % $ 1,432,616 100 % $ 1,317,845 100 %
Schedule of Revenue Streams	Revenue streams (in thousands) 2024 2023 2022 Pega Cloud $ 558,734 $ 461,328 $ 384,271 Maintenance 323,304 331,856 317,564 Consulting 213,273 221,706 230,654 Revenue recognized over time 1,095,311 1,014,890 932,489 Subscription license 398,102 407,625 366,063 Perpetual license 3,767 10,101 19,293 Revenue recognized at a point in time 401,869 417,726 385,356 $ 1,497,180 $ 1,432,616 $ 1,317,845 (in thousands) 2024 2023 2022 Pega Cloud $ 558,734 $ 461,328 $ 384,271 Maintenance 323,304 331,856 317,564 Subscription services 882,038 793,184 701,835 Subscription license 398,102 407,625 366,063 Subscription 1,280,140 1,200,809 1,067,898 Consulting 213,273 221,706 230,654 Perpetual license 3,767 10,101 19,293 $ 1,497,180 $ 1,432,616 $ 1,317,845
Schedule of Remaining Performance Obligations	The Company’s typical performance obligations are: Performance obligation How stand-alone selling price is typically determined When performance obligation is typically satisfied When payment is typically due Income statement line item 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 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 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 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, 2024: (Dollars in thousands) Subscription services Subscription license Perpetual license Consulting Total Pega Cloud Maintenance 1 year or less $ 525,133 $ 230,866 $ 88,880 $ 317 $ 50,519 $ 895,715 56 % 1-2 years 328,234 65,461 10,874 — 3,297 407,866 25 % 2-3 years 159,536 24,598 733 — 125 184,992 11 % Greater than 3 years 114,256 19,935 678 — 50 134,919 8 % $ 1,127,159 $ 340,860 $ 101,165 $ 317 $ 53,991 $ 1,623,492 100 % As of December 31, 2023: (Dollars in thousands) Subscription services Subscription license Perpetual license Consulting Total Pega Cloud Maintenance 1 year or less $ 446,160 $ 245,271 $ 62,070 $ 2,284 $ 39,810 $ 795,595 54 % 1-2 years 279,474 67,720 9,138 443 2,020 358,795 25 % 2-3 years 144,453 37,142 9,789 — 2,896 194,280 13 % Greater than 3 years 90,177 24,421 100 — — 114,698 8 % $ 960,264 $ 374,554 $ 81,097 $ 2,727 $ 44,726 $ 1,463,368 100 %

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Based Compensation Expense	(in thousands) 2024 2023 2022 Cost of revenue $ 27,353 $ 28,994 $ 26,400 Selling and marketing 55,084 57,675 46,769 Research and development 29,838 31,039 29,266 General and administrative 30,443 25,644 19,775 $ 142,718 $ 143,352 $ 122,210 Income tax benefit $ (1,799) $ (2,187) $ (1,881)
Schedule of Compensating Balances	(in thousands) 2024 2023 2022 Compensation expense from 2006 ESPP $ 1,184 $ 1,367 $ 1,614
Schedule of Weighted-Average Assumptions Used in Black-Scholes Option Valuation Model	The following table summarizes the Company’s fair value assumptions for stock options: 2024 2023 2022 Weighted-average grant-date fair value $ 25.82 $ 20.55 $ 17.49 Assumptions used in the Black-Scholes option-pricing model: Expected annual volatility (1) 49 % 48 % 42 % Expected term in years (2) 3.9 3.5 3.9 Risk-free interest rate (3) 4.2 % 4.2 % 3.4 % Expected annual dividend yield (4) 0.2 % 0.1 % 0.1 % (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.
Schedule of Time-Based Vesting Stock Option Performance Stock Option Activity	The following table summarizes the time-based vesting stock option activity under the Company’s stock option plans for 2024: Shares Weighted-average Exercise Price Weighted-average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Options outstanding as of January 1, 2024 13,853 $ 59.32 Granted 1,857 62.90 Exercised (1,937) 43.94 Forfeited (515) 54.91 Expired (284) 90.16 Options outstanding as of December 31, 2024 12,974 $ 61.63 Vested and expected to vest as of December 31, 2024 11,477 $ 62.04 6.7 $ 391,228 Exercisable as of December 31, 2024 7,351 $ 65.37 5.8 $ 232,270 (1) The aggregate intrinsic value of stock options as of December 31, 2024 is based on the difference between the closing price of the Company’s stock of $93.20 and the exercise price of the applicable stock options. The following table summarizes the Company’s performance stock option activity for 2024: Shares Weighted-average Exercise Price Weighted-average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Performance options outstanding as of January 1, 2024 886 $ 47.27 Granted 566 62.10 Exercised (39) 47.27 Forfeited (23) 53.86 Performance options outstanding as of December 31, 2024 1,390 $ 53.20 Vested and expected to vest as of December 31, 2024 1,173 $ 53.12 8.6 $ 47,001 Exercisable as of December 31, 2024 181 $ 47.27 8.2 $ 8,304 (1) The aggregate intrinsic value of stock options as of December 31, 2024 is based on the difference between the closing price of the Company’s stock of $93.20 and the exercise price of the applicable stock options.
Schedule of Combined Restricted Stock Units Activity	The following table summarizes the combined RSU activity for all grants, including the CICP, under the 2004 Plan for 2024: Shares Weighted- Average Grant-Date Aggregate Intrinsic Value Nonvested as of January 1, 2024 2,616 $ 64.85 Granted 1,366 62.57 Vested (1,160) 67.39 Forfeited (209) 63.78 Nonvested as of December 31, 2024 2,613 $ 64.21 $ 243,516 Expected to vest as of December 31, 2024 1,962 $ 63.39 $ 182,854

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2024
Postemployment Benefits [Abstract]
Schedule of Defined Contribution Plans Expenses	Employee benefit plan expenses: (in thousands) 2024 2023 2022 U.S. 401(k) Plan $ 7,937 $ 8,169 $ 8,994 International plans 20,303 21,256 21,141 $ 28,240 $ 29,425 $ 30,135

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
Schedule of Components of Income (Loss) Before (Benefit From) Provision for Income Taxes	The components of income (loss) before provision for income taxes are: (in thousands) 2024 2023 2022 Domestic $ 51,966 $ 14,016 $ (185,820) Foreign 90,670 81,424 24,023 $ 142,636 $ 95,440 $ (161,797)
Schedule of Components of Provision for Income Taxes	The components of provision for income taxes are: (in thousands) 2024 2023 2022 Current: Federal $ 22,941 $ 7,827 $ 3,920 State 7,503 4,480 775 Foreign 14,547 14,962 10,200 Total current provision 44,991 27,269 14,895 Deferred: Federal — — 149,028 State — — 20,704 Foreign (1,544) 363 (842) Total deferred (benefit) provision (1,544) 363 168,890 $ 43,447 $ 27,632 $ 183,785
Schedule of 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) 2024 2023 2022 U.S. federal income taxes at statutory rates $ 29,954 $ 20,042 $ (33,977) Valuation allowance (1,504) (19,272) 188,258 State income taxes, net of federal benefit and tax credits 1,297 4,117 (2,433) Permanent differences 786 435 11,561 Federal research and experimentation credits (4,888) (3,709) (5,012) Tax effects of foreign activities (7,817) 658 3,770 GILTI, FDII, and BEAT 13,945 14,022 16,390 Provision to return adjustments 121 (3,728) (6,317) Non-deductible compensation 10,933 6,818 4,769 Tax Reserves 5,917 1,850 5,673 Excess tax (benefits) / detriments related to share-based compensation (5,645) 4,666 1,563 Impact of change in tax law — 1,726 (793) Other 348 7 333 $ 43,447 $ 27,632 $ 183,785
Schedule of Components of Net Deferred Tax Assets and Liabilities	Significant components of net deferred tax assets and liabilities are: December 31, (in thousands) 2024 2023 Deferred tax assets: Net operating loss carryforwards $ 72,089 $ 84,656 Accruals and reserves 57,312 41,323 Software revenue 454 3,186 Convertible senior notes 355 2,645 Tax credit carryforwards 10,441 28,456 Research and development capitalization 75,289 58,866 Total deferred tax assets 215,940 219,132 Valuation allowances (195,252) (196,901) Total net deferred tax assets 20,688 22,231 Deferred tax liabilities: Capped call transactions (57) (223) Depreciation (3,663) (4,428) Intangibles (9,116) (11,979) Other, net (3,554) (2,782) Total deferred tax liabilities (16,390) (19,412) $ 4,298 $ 2,819
Schedule of Reconciliation of Beginning and Ending Balances of Gross Unrecognized Tax Benefits	A rollforward of the Company’s gross unrecognized tax benefits is: (in thousands) 2024 2023 2022 Balance as of January 1, $ 30,655 $ 19,746 $ 17,584 Additions for tax positions related to the current year 7,316 4,859 1,706 Additions for tax positions of prior years 2,941 7,921 728 Reductions for tax positions of prior years (3,026) (1,871) (272) Balance as of December 31, $ 37,886 $ 30,655 $ 19,746

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
Schedule of Calculation of Earnings (Loss) Per Share	Calculation of earnings (loss) per share: (in thousands, except per share amounts) 2024 2023 2022 Net income (loss) $ 99,189 $ 67,808 $ (345,582) Weighted-average common shares outstanding 85,265 83,162 81,947 Earnings (loss) per share, basic $ 1.16 $ 0.82 $ (4.22) Net income (loss) $ 99,189 $ 67,808 $ (345,582) Convertible senior notes - interest expense and settlement gains, net of tax (76) (5,528) — Numerator for diluted EPS $ 99,113 $ 62,280 $ (345,582) Weighted-average effect of dilutive securities: Convertible senior notes 214 235 — Stock options 2,710 794 — RSUs 1,445 723 — Effect of dilutive securities 4,369 1,752 — Weighted-average common shares outstanding, assuming dilution (1) (2) (3) 89,634 84,914 81,947 Earnings per share, diluted $ 1.11 $ 0.73 $ (4.22) Outstanding anti-dilutive stock options and RSUs (4) 148 250 3,367 (1) All dilutive securities are excluded when their inclusion would be anti-dilutive. (2) The shares underlying the conversion options in the Company’s Notes are included using the if-converted method, if dilutive in the period. If the outstanding conversion options were fully exercised, the Company would issue approximately 3.5 million shares as of December 31, 2024. (3) The Company’s Capped Call Transactions represent the equivalent of approximately 3.5 million shares of the Company’s common stock (representing the number of shares for which the Notes are convertible) as of December 31, 2024. The Capped Call Transactions are expected to reduce common stock dilution and/or offset any potential cash payments the Company must make, other than for principal and interest, upon conversion of the Notes, with such reduction and/or offset subject to a cap of $196.44. The Capped Call Transactions are excluded from weighted-average common shares outstanding, assuming dilution, in all periods as their effect would be anti-dilutive. (4) Outstanding stock options and RSUs that were anti-dilutive under the treasury stock method in the period were excluded from the computation of diluted earnings per share. These awards may be dilutive in the future.

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Amortization period for deferred contract costs	4 years 6 months
Capitalized computer software cost	$ 0	$ 0	$ 0
Advertising costs	$ 4,700,000	$ 3,500,000	$ 6,600,000
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 - Schedul

MARKETABLE SECURITIES - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 402,948	$ 193,431
Unrealized Gains	64	233
Unrealized Losses	(142)	(228)
Fair Value	402,870	193,436
Government debt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	11,851	11,471
Unrealized Gains	1	33
Unrealized Losses	(19)	(1)
Fair Value	11,833	11,503
Corporate debt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	391,097	181,960
Unrealized Gains	63	200
Unrealized Losses	(123)	(227)
Fair Value	$ 391,037	$ 181,933

MARKETABLE SECURITIES - Narrati

MARKETABLE SECURITIES - Narrative (Details)	Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Marketable debt security weighted-average remaining maturity	3 months 18 days

RECEIVABLES, CONTRACT ASSETS,_3

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Schedule of Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Receivables [Abstract]
Accounts receivable, net	$ 305,468	$ 300,173
Unbilled receivables, net	173,085	237,379
Long-term unbilled receivables, net	61,407	85,402
Total receivables	$ 539,960	$ 622,954

RECEIVABLES, CONTRACT ASSETS,_4

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Schedule of Unbilled Receivables (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Receivables [Abstract]
1 year or less	$ 173,085
1-2 years	43,341
2-5 years	18,066
Total	$ 234,492
1 year or less	74%
1-2 years	18%
2-5 years	8%
Total percentage of unbilled receivables	100%

RECEIVABLES, CONTRACT ASSETS,_5

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE- Schedule of Unbilled Receivables by Contract Effective Date (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Receivables [Abstract]
2024	$ 137,027
2023	79,650
2022	10,357
2021	5,836
2019 and prior	1,622
Unbilled revenue total	$ 234,492
2024	58%
2023	35%
2022	4%
2021	2%
2019 and prior	1%
Total percentage of unbilled revenue	100%

RECEIVABLES, CONTRACT ASSETS,_6

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Schedule of Major Clients (Details) - Client A - Credit concentration risk	12 Months Ended
	Dec. 31, 2024
Accounts receivable
Concentration Risk [Line Items]
Total receivables	20%
Unbilled receivables
Concentration Risk [Line Items]
Total receivables	0%
Total receivables
Concentration Risk [Line Items]
Total receivables	11%

RECEIVABLES, CONTRACT ASSETS,_7

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Schedule of Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Receivables [Abstract]
Contract assets	$ 13,498	$ 16,238
Long-term contract assets	18,321	20,635
Total contract assets	31,819	36,873
Deferred revenue	423,910	377,845
Long-term deferred revenue	2,121	2,478
Total deferred revenue	426,031	$ 380,323
Revenue recognized during the period that was included in deferred revenue	$ 374,100

DEFERRED COMMISSIONS - Schedule

DEFERRED COMMISSIONS - Schedule of Impairment of Deferred Commissions (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deferred commissions	$ 105,405	$ 114,119

DEFERRED COMMISSIONS - Schedu_2

DEFERRED COMMISSIONS - Schedule of Amortization of Deferred Commissions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Amortization of deferred commissions	$ 62,269	$ 59,461	$ 53,471

PROPERTY AND EQUIPMENT - Schedu

PROPERTY AND EQUIPMENT - Schedule of Property and Equipment, net (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 121,084	$ 130,349
Less: accumulated depreciation	(79,278)	(83,070)
Property and equipment, net	41,806	47,279
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	51,932	62,787
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	29,817	31,144
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,603	6,665
Computer software purchased
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,918	10,060
Computer software developed for internal use
Property, Plant and Equipment [Line Items]
Property and equipment, gross	19,776	19,470
Fixed assets in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 5,038	$ 223

PROPERTY AND EQUIPMENT - Sche_2

PROPERTY AND EQUIPMENT - Schedule of Depreciation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Disposal of depreciated assets	$ 17,800
Depreciation expense	$ 14,432	$ 14,806	$ 14,687

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Goodwill [Roll Forward]
Beginning balance	$ 81,611	$ 81,399
Currency translation adjustments	(498)	212
Ending balance	$ 81,113	$ 81,611

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Intangibles (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Goodwill and Other Intangible Assets [Line Items]
Cost	$ 136,583	$ 136,616
Accumulated Amortization	(132,751)	(129,614)
Net book value	3,832	7,002
Client-related
Goodwill and Other Intangible Assets [Line Items]
Cost	63,107	63,117
Accumulated Amortization	(61,395)	(60,035)
Net book value	1,712	3,082
Technology
Goodwill and Other Intangible Assets [Line Items]
Cost	68,115	68,138
Accumulated Amortization	(65,995)	(64,218)
Net book value	2,120	3,920
Other
Goodwill and Other Intangible Assets [Line Items]
Cost	5,361	5,361
Accumulated Amortization	(5,361)	(5,361)
Net book value	$ 0	$ 0
Minimum | Client-related
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	4 years	4 years
Minimum | Technology
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	2 years	2 years
Minimum | Other
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	1 year	1 year
Maximum | Client-related
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	10 years	10 years
Maximum | Technology
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	10 years	10 years
Maximum | Other
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	5 years	5 years

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Future Estimated Intangibles Assets Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2025	$ 2,630
2026	874
2027	328
Net book value	$ 3,832	$ 7,002

GOODWILL AND OTHER INTANGIBLE_6

GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 3,153	$ 3,940	$ 4,093
Cost of revenue
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	1,783	2,570	2,723
Selling and marketing
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 1,370	$ 1,370	$ 1,370

OTHER ASSETS AND LIABILITIES -

OTHER ASSETS AND LIABILITIES - Schedule of Other Assets and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Other current assets
Prepaid expenses	$ 38,155	$ 33,647
Income tax receivables	58,359	4,804
Contract assets	13,498	16,238
Insurance receivable	0	1,954
Indirect tax receivable	2,488	1,924
Capped call transactions	223	0
Restricted cash	98	0	$ 0
Other	2,357	9,570
Other current assets	115,178	68,137
Other long-term assets
Deferred commissions	105,405	114,119
Right of use assets	62,429	64,198
Property and equipment	41,806	47,279
Venture investments	21,234	19,450
Contract assets	18,321	20,635
Income tax receivables	13,299	20,633
Intangible assets	3,832	7,002
Capped call transactions	0	893
Deferred income taxes	4,268	3,678
Restricted cash	4,328	2,925	0
Other	17,127	13,884
Other long-term assets	292,049	314,696
Accrued expenses
Cloud hosting	1,802	1,358
Outside professional services	10,639	10,419
Marketing and sales program	2,150	2,557
Income and other taxes	5,055	15,428
Employee related	4,833	4,486
Repurchases of common stock unsettled	1,500	0
Other	5,565	5,693
Accrued expenses	31,544	39,941
Other current liabilities
Operating lease liabilities	14,551	15,000
Dividends payable	2,583	2,515	$ 2,474
Other	1,732	3,828
Other current liabilities	18,866	21,343
Other long-term liabilities
Deferred revenue	2,121	2,478
Income taxes payable	15,956	859
Other	11,011	10,233
Other long-term liabilities	$ 29,088	$ 13,570

SEGMENT INFORMATION - Narrative

SEGMENT INFORMATION - Narrative (Details)	12 Months Ended
	Dec. 31, 2024 segment
Segment Reporting [Abstract]
Number of operating segments	1
Number of reportable segments	1

SEGMENT INFORMATION - Schedule

SEGMENT INFORMATION - Schedule of Information of Operation Income (Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Segment Reporting [Abstract]
Total revenue	$ 1,497,180	$ 1,432,616	$ 1,317,845
Total cost of revenue	390,665	378,483	368,635
Selling	450,527	474,405	519,192
Marketing	84,253	84,772	105,597
Research and development	298,074	295,512	294,349
General and administrative	112,848	96,743	117,734
Other segment items, net	18,177	7,261	74,135
Provision for income taxes	43,447	27,632	183,785
Net income (loss)	$ 99,189	$ 67,808	$ (345,582)

SEGMENT INFORMATION - Schedul_2

SEGMENT INFORMATION - Schedule of Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Geographic Areas, Long-Lived Assets [Abstract]
Property and equipment	$ 41,806	$ 47,279
Long-lived assets percentage	100%	100%
U.S.
Geographic Areas, Long-Lived Assets [Abstract]
Property and equipment	$ 37,405	$ 44,414
Long-lived assets percentage	89%	94%
International
Geographic Areas, Long-Lived Assets [Abstract]
Property and equipment	$ 4,401	$ 2,865
Long-lived assets percentage	11%	6%

LEASES - Narrative (Details)

LEASES - Narrative (Details) ft² in Thousands, $ in Thousands			1 Months Ended	12 Months Ended
	Jul. 06, 2021 USD ($) ft²	Mar. 31, 2021 USD ($)	Dec. 31, 2024 USD ($)	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Term of contract		4 years 6 months
Based rent to paid (annually per year)		$ 2,000
Restructuring expense			$ 3,700	$ 4,528	$ 21,747	$ 21,743
Base rent to paid, year one			$ 18,106	$ 18,106
Tenant improvement allowance	$ 11,800
Building
Lessee, Lease, Description [Line Items]
Term of contract	11 years
Area of office space lease (in square feet) | ft²	131
Base rent to paid, year one	$ 6,000
Base rent increase percentage	0.03

LEASES - Schedule of Expense (D

LEASES - Schedule of Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Fixed lease costs	$ 21,422	$ 19,718	$ 20,186
Short-term lease costs	1,746	2,884	3,356
Variable lease costs	6,901	8,148	3,894
Lease, cost	$ 30,069	$ 30,750	$ 27,436

LEASES - Schedule of Right of U

LEASES - Schedule of Right of Use Asset and Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other long-term assets	Other long-term assets
Right of use assets	$ 62,429	$ 64,198
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Operating lease liabilities	$ 14,551	$ 15,000
Long-term operating lease liabilities	$ 67,647	$ 66,901

LEASES - Schedule of Weighted A

LEASES - Schedule of Weighted Average and Discount Rate (Details)	Dec. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Weighted-average remaining lease term	6 years 2 months 12 days	6 years 9 months 18 days
Weighted-average discount rate	4.80%	4%

LEASES - Schedule of Maturities

LEASES - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Leases [Abstract]
2025	$ 18,106
2026	15,404
2027	13,972
2028	13,367
2029	10,742
Thereafter	23,535
Total lease payments	95,126
Less: imputed interest	(12,928)
Total lease liability	$ 82,198

LEASES - Schedule of Cash Flow

LEASES - Schedule of Cash Flow Lease Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Cash paid for operating leases, net of tenant improvement allowances	$ 18,444	$ 20,045
Right of use assets recognized for new leases and amendments (non-cash)	$ 16,682	$ 1,460

DEBT - Convertible senior notes

DEBT - Convertible senior notes and capped calls (Details)	1 Months Ended	12 Months Ended			22 Months Ended
	Feb. 29, 2020 USD ($) day $ / shares	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2024 consecutiveTradingDay tradingDay
Debt Instrument [Line Items]
Gain (loss) on repurchase of convertible debt | $		$ 459,000	$ 7,855,000	$ 0
Redemption percentage		100%
On or after March 1, 2023
Debt Instrument [Line Items]
Redemption threshold trading days | tradingDay					40
Redemption percentage					100%
Convertible debt
Debt Instrument [Line Items]
Face amount | $	$ 600,000,000
Interest rate	0.75%	0.75%	0.75%
Gain (loss) on repurchase of convertible debt | $		$ 500,000	$ 7,900,000
Principal amount repurchased | $		$ 34,400,000	$ 97,700,000
Initial conversion rate		0.0074045
Initial conversion price (in dollars per share) | $ / shares	$ 135.05
Average interest rate		1.20%	1.20%
Convertible debt | After the calendar quarter ending on June 30, 2020
Debt Instrument [Line Items]
Threshold percentage of stock price trigger	130%
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%
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%
Threshold trading days | tradingDay					20
Threshold consecutive trading days | consecutiveTradingDay					30

DEBT - Schedule of Carrying val

DEBT - Schedule of Carrying value of the Notes (Details) - Convertible debt - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Principal	$ 467,864	$ 502,270
Unamortized issuance costs	(394)	(2,902)
Convertible senior notes, net	$ 467,470	$ 499,368

DEBT - Schedule of Interest Exp

DEBT - Schedule of Interest Expense Related to the Notes (Details) - Convertible debt - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 29, 2020	Dec. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Interest rate	0.75%	0.75%	0.75%
Contractual interest expense (0.75% coupon)		$ 3,725	$ 3,891
Amortization of issuance costs		2,451	2,603
Interest expense		$ 6,176	$ 6,494

DEBT - Schedule of Future Payme

DEBT - Schedule of Future Payments (Details) - Convertible debt - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Principal
2025	$ 467,864
Principal, total due	467,864	$ 502,270
Interest
2025	1,754
Interest expense, total due	1,754
Total
2025	469,618
Principal and interest, total due	$ 469,618

DEBT - Capped call transactions

DEBT - Capped call transactions (Details) $ in Thousands, shares in Millions	1 Months Ended	12 Months Ended
	Feb. 29, 2020 $ / derivative shares	Dec. 31, 2024 USD ($) $ / derivative shares
Debt Instrument [Line Items]
Cap price (in dollars per share) | $ / derivative		196.44
Capped Call Transactions
Debt Instrument [Line Items]
Number of shares issuable upon conversion (in shares) | shares	4.4	0.3
Proceeds from settlement of capped calls transactions | $		$ 10
Number of shares outstanding upon conversion (in shares) | shares		3.5
Cap price (in dollars per share) | $ / derivative	196.44

DEBT - Schedule of Change in Ca

DEBT - Schedule of Change in Capped Call Transactions (Details) - Capped Call Transactions - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 893	$ 2,582
Settlements	(7)	(341)
Fair value adjustment	(663)	(1,348)
Ending balance	$ 223	$ 893

DEBT - Credit Facility (Details

DEBT - Credit Facility (Details)	1 Months Ended
	Nov. 30, 2019 USD ($)	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Outstanding letters of credit		$ 27,300,000	$ 27,300,000
Remaining borrowing capacity		$ 0	$ 0
PNC Bank, National Association
Debt Instrument [Line Items]
Minimum consolidated coverage ratio		3.5
Credit Agreement | PNC Bank, National Association
Debt Instrument [Line Items]
Maximum consolidated net leverage ratio		3.5
Line of credit | PNC Bank, National Association | Revolving credit facility
Debt Instrument [Line Items]
Revolving credit agreement term	5 years
Senior notes	$ 100,000,000
Increase in aggregate commitment amount	$ 200,000,000

RESTRUCTURING - Schedule of Res

RESTRUCTURING - Schedule of Restructuring Activities (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring expense	$ 3,700	$ 4,528	$ 21,747	$ 21,743
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring expense		(614)	18,721	18,549
Office space reductions
Restructuring Cost and Reserve [Line Items]
Restructuring expense		$ 5,142	$ 3,026	$ 3,194

RESTRUCTURING - Schedule of Acc

RESTRUCTURING - Schedule of Accrued Employee Severance and Related Benefit (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Restructuring Reserve [Roll Forward]
Costs incurred	$ 3,700	$ 4,528	$ 21,747	$ 21,743
Employee Severance
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning Balance		8,095
Costs incurred		(614)	18,721	$ 18,549
Cash disbursements		(5,252)
Currency translation adjustments		(229)
Restructuring Reserve, Ending Balance	$ 2,000	$ 2,000	$ 8,095

FAIR VALUE MEASUREMENTS - Sched

FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured At Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Fair Value Assets:
Marketable securities	$ 402,870	$ 193,436
Capped Call Transactions	223	893
Cash equivalents
Fair Value Assets:
Cash equivalents	154,244	54,357
Venture investments
Fair Value Assets:
Venture investments	21,234	19,450
Level 1
Fair Value Assets:
Marketable securities	0	0
Capped Call Transactions	0	0
Level 1 | Cash equivalents
Fair Value Assets:
Cash equivalents	5,318	54,357
Level 1 | Venture investments
Fair Value Assets:
Venture investments	0	0
Level 2
Fair Value Assets:
Marketable securities	402,870	193,436
Capped Call Transactions	223	893
Level 2 | Cash equivalents
Fair Value Assets:
Cash equivalents	148,926	0
Level 2 | Venture investments
Fair Value Assets:
Venture investments	0	0
Level 3
Fair Value Assets:
Marketable securities	0	0
Capped Call Transactions	0	0
Level 3 | Cash equivalents
Fair Value Assets:
Cash equivalents	0	0
Level 3 | Venture investments
Fair Value Assets:
Venture investments	$ 21,234	$ 19,450

FAIR VALUE MEASUREMENTS - Sch_2

FAIR VALUE MEASUREMENTS - Schedule of Changes in Venture Investments (Details) - Privately held investment - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 19,450	$ 13,069
New investments	550	400
Sales of investments	0	(2,773)
Changes in foreign exchange rates	(32)	129
Changes in fair value:
included in other income, net	1,628	10,886
included in other comprehensive income	(362)	(2,261)
Ending balance	$ 21,234	$ 19,450

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Convertible debt fair value	$ 463.9	$ 466.5

STOCKHOLDERS' EQUITY - Narrativ

STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Oct. 22, 2024
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 (in 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)	86,112,000	83,840,000
Common stock, shares outstanding (in shares)	86,112,000	83,840,000
Quarterly cash dividend intended to pay (in dollars per share)	$ 0.03	$ 0.03	$ 0.03
Repurchase authorized amount	$ 250,000	$ 1,925	$ 60,000
Stock repurchase program, authorized amount				$ 310,000

STOCKHOLDERS' EQUITY - Schedule

STOCKHOLDERS' EQUITY - Schedule of Dividends Declared and Paid (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.12	$ 0.12	$ 0.12
Dividend payments to stockholders	$ 10,199	$ 9,964	$ 9,834

STOCKHOLDERS' EQUITY - Schedu_2

STOCKHOLDERS' EQUITY - Schedule of Stock Repurchases (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Equity [Abstract]
Repurchases paid (in shares)	(809)	0	(280)
Repurchases unpaid (in shares)	(16)	0	0
Stock Repurchase Program, Remaining Authorized Repurchase Amount [Roll Forward]
Authorization remaining, beginning of period	$ 60,000	$ 58,075	$ 22,583
Authorizations	250,000	1,925	60,000
Repurchases paid	(68,057)	0	(24,508)
Repurchases unpaid	(1,500)	0	0
Authorization remaining, end of period	$ 240,443	$ 60,000	$ 58,075

REVENUE - Schedule of Geographi

REVENUE - Schedule of Geographic Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 1,497,180	$ 1,432,616	$ 1,317,845
U.S.
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	828,332	785,029	763,558
Other Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	95,698	85,149	102,980
United Kingdom (“U.K.”)
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	157,830	158,014	115,793
Europe (excluding U.K.), Middle East, and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	249,325	242,303	194,563
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 165,995	$ 162,121	$ 140,951
Total Revenue | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Percent of total revenue	100%	100%	100%
Total Revenue | U.S. | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Percent of total revenue	55%	55%	57%
Total Revenue | Other Americas | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Percent of total revenue	6%	6%	8%
Total Revenue | United Kingdom (“U.K.”) | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Percent of total revenue	11%	11%	9%
Total Revenue | Europe (excluding U.K.), Middle East, and Africa | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Percent of total revenue	17%	17%	15%
Total Revenue | Asia-Pacific | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Percent of total revenue	11%	11%	11%

REVENUE - Schedule of Revenue S

REVENUE - Schedule of Revenue Streams (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 1,497,180	$ 1,432,616	$ 1,317,845
Pega Cloud
Disaggregation of Revenue [Line Items]
Revenue	558,734	461,328	384,271
Maintenance
Disaggregation of Revenue [Line Items]
Revenue	323,304	331,856	317,564
Consulting
Disaggregation of Revenue [Line Items]
Revenue	213,273	221,706	230,654
Subscription services
Disaggregation of Revenue [Line Items]
Revenue	882,038	793,184	701,835
Subscription license
Disaggregation of Revenue [Line Items]
Revenue	398,102	407,625	366,063
Subscription
Disaggregation of Revenue [Line Items]
Revenue	1,280,140	1,200,809	1,067,898
Perpetual license
Disaggregation of Revenue [Line Items]
Revenue	3,767	10,101	19,293
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Revenue	1,095,311	1,014,890	932,489
Revenue recognized over time | Pega Cloud
Disaggregation of Revenue [Line Items]
Revenue	558,734	461,328	384,271
Revenue recognized over time | Maintenance
Disaggregation of Revenue [Line Items]
Revenue	323,304	331,856	317,564
Revenue recognized over time | Consulting
Disaggregation of Revenue [Line Items]
Revenue	213,273	221,706	230,654
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Revenue	401,869	417,726	385,356
Revenue recognized at a point in time | Subscription license
Disaggregation of Revenue [Line Items]
Revenue	398,102	407,625	366,063
Revenue recognized at a point in time | Perpetual license
Disaggregation of Revenue [Line Items]
Revenue	$ 3,767	$ 10,101	$ 19,293

REVENUE - Schedule of Remaining

REVENUE - Schedule of Remaining Performance Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 1,623,492	$ 1,463,368
Revenue remaining performance obligation (in percent)	100%	100%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation		$ 795,595
Revenue remaining performance obligation (in percent)		54%
Expected timing of satisfaction		1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 895,715	$ 358,795
Revenue remaining performance obligation (in percent)	56%	25%
Expected timing of satisfaction	1 year	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 407,866	$ 194,280
Revenue remaining performance obligation (in percent)	25%	13%
Expected timing of satisfaction	1 year	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 184,992	$ 114,698
Revenue remaining performance obligation (in percent)	11%	8%
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 134,919
Revenue remaining performance obligation (in percent)	8%
Expected timing of satisfaction
Pega Cloud
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 1,127,159	$ 960,264
Pega Cloud | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation		446,160
Pega Cloud | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	525,133	279,474
Pega Cloud | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	328,234	144,453
Pega Cloud | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	159,536	90,177
Pega Cloud | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	114,256
Maintenance
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	340,860	374,554
Maintenance | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation		245,271
Maintenance | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	230,866	67,720
Maintenance | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	65,461	37,142
Maintenance | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	24,598	24,421
Maintenance | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	19,935
Subscription license
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	101,165	81,097
Subscription license | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation		62,070
Subscription license | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	88,880	9,138
Subscription license | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	10,874	9,789
Subscription license | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	733	100
Subscription license | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	678
Perpetual license
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	317	2,727
Perpetual license | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation		2,284
Perpetual license | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	317	443
Perpetual license | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	0	0
Perpetual license | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	0	0
Perpetual license | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	0
Consulting
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	53,991	44,726
Consulting | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation		39,810
Consulting | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	50,519	2,020
Consulting | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	3,297	2,896
Consulting | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	125	$ 0
Consulting | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligation	$ 50

STOCK-BASED COMPENSATION - Sche

STOCK-BASED COMPENSATION - Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 142,718	$ 143,352	$ 122,210
Income tax benefit	(1,799)	(2,187)	(1,881)
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	27,353	28,994	26,400
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	55,084	57,675	46,769
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	29,838	31,039	29,266
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 30,443	$ 25,644	$ 19,775

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details) - USD ($)	12 Months Ended				24 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2006	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period					5 years
Shares available for issuance (in shares)	3,900,000
Closing price of Company's stock (in dollars per share)	$ 93.20
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	10,000
Weighted-average grant-date fair value (in dollars per share)	$ 69.19
Corporate Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights percentage	100%
Percentage of closing price of common stock	85%
2004 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	42,000,000
Number of shares subject to outstanding options and awards (in shares)	17,000,000
Shares available for issuance (in shares)	3,000,000
2006 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares)	900,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		10 years
Granted (in shares)	3,000,000
Intrinsic value of stock options exercised	$ 58,700,000	$ 6,200,000	$ 15,600,000
Unrecognized stock-based compensation expense, unvested stock options	$ 35,200,000
Weighted-average period of expense recognition	1 year 7 months 6 days
Weighted-average grant-date fair value (in dollars per share)	$ 25.82	$ 20.55	$ 17.49
Performance Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	2 years
Granted (in shares)	600,000
Grant date fair value	$ 13,900,000
Intrinsic value of stock options exercised	1,500,000	$ 0
Unrecognized stock-based compensation expense, unvested stock options	$ 11,000,000
Weighted-average period of expense recognition	1 year
Expiration term	10 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense, unvested stock options	$ 48,700,000
Weighted-average period of expense recognition	1 year 7 months 6 days
Weighted-average grant date fair value of shares granted (in dollars per share)	$ 62.57	$ 46.57	$ 74.50
Fair value of shares vested	$ 78,200,000	$ 42,800,000	$ 50,300,000
RSUs | Corporate Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee’s target incentive compensation percentage	50%
RSUs | 2004 Long-Term Incentive Plan | Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual limited compensation	$ 500,000
Employee Stock | 2006 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of closing price of common stock	85%	85%	85%	85%
Number of shares authorized (in shares)	2,000,000
Shares issued under the plan (in shares)	1,100,000
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%
Vesting one year from the grant date | Performance Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights percentage	25%
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%
Vesting in quarterly installments over the remaining four years | Performance Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights percentage	75%
Vesting after one year 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		25%
Vesting in quarterly installments over the remaining three years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Vesting rights percentage		75%

STOCK-BASED COMPENSATION - Sc_2

STOCK-BASED COMPENSATION - Schedule of Compensating Balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense from 2006 ESPP	$ 1,184	$ 1,367	$ 1,614

STOCK-BASED COMPENSATION - Sc_3

STOCK-BASED COMPENSATION - Schedule of Weighted Average Assumptions used in Black Scholes Option Pricing Model (Details) - $ / shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected annual volatility	49%	48%	42%
Expected term in years	3 years 10 months 24 days	3 years 6 months	3 years 10 months 24 days
Risk-free interest rate	4.20%	4.20%	3.40%
Expected annual dividend yield	0.20%	0.10%	0.10%
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value (in dollars per share)	$ 25.82	$ 20.55	$ 17.49

STOCK-BASED COMPENSATION - Sc_4

STOCK-BASED COMPENSATION - Schedule of Time-Based Vesting Stock Option Activity (Details) - Time-based vesting stock option $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($) $ / shares shares
Shares
Options outstanding, beginning of period (in shares) | shares	13,853
Granted (in shares) | shares	1,857
Exercised (in shares) | shares	(1,937)
Forfeited (in shares) | shares	(515)
Expired (in shares) | shares	(284)
Options outstanding, end of period (in shares) | shares	12,974
Vested and expected to vest (in shares) | shares	11,477
Exercisable (in shares) | shares	7,351
Weighted-average Exercise Price
Options outstanding, beginning of period (in dollars per share) | $ / shares	$ 59.32
Granted (in dollars per share) | $ / shares	62.90
Exercised (in dollars per share) | $ / shares	43.94
Forfeited (in dollars per share) | $ / shares	54.91
Expired (in dollars per share) | $ / shares	90.16
Options outstanding, end of period (in dollars per share) | $ / shares	61.63
Vested and expected to vest (in dollars per share) | $ / shares	62.04
Exercisable (in dollars per share) | $ / shares	$ 65.37
Weighted-average remaining contractual term
Vested and expected to vest	6 years 8 months 12 days
Exercisable	5 years 9 months 18 days
Aggregate intrinsic value
Vested and expected to vest | $	$ 391,228
Exercisable | $	$ 232,270

STOCK-BASED COMPENSATION - Sc_5

STOCK-BASED COMPENSATION - Schedule of Performance Stock Option Activity (Details) - Performance Stock Options $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($) $ / shares shares
Shares
Options outstanding, beginning of period (in shares) | shares	886
Granted (in shares) | shares	566
Exercised (in shares) | shares	(39)
Forfeited (in shares) | shares	(23)
Options outstanding, end of period (in shares) | shares	1,390
Vested and expected to vest (in shares) | shares	1,173
Exercisable (in shares) | shares	181
Weighted-average Exercise Price
Options outstanding, beginning of period (in dollars per share) | $ / shares	$ 47.27
Granted (in dollars per share) | $ / shares	62.10
Exercised (in dollars per share) | $ / shares	47.27
Forfeited (in dollars per share) | $ / shares	53.86
Options outstanding, end of period (in dollars per share) | $ / shares	53.20
Vested and expected to vest (in dollars per share) | $ / shares	53.12
Exercisable (in dollars per share) | $ / shares	$ 47.27
Weighted-average remaining contractual term
Vested and expected to vest	8 years 7 months 6 days
Exercisable	8 years 2 months 12 days
Aggregate intrinsic value
Vested and expected to vest | $	$ 47,001
Exercisable | $	$ 8,304

STOCK-BASED COMPENSATION - Comb

STOCK-BASED COMPENSATION - Combined Restricted Stock Units Activity (Details) - RSUs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Shares
Nonvested, beginning of period (in shares)	2,616
Granted (in shares)	1,366
Vested (in shares)	(1,160)
Forfeited (in shares)	(209)
Nonvested, end of period (in shares)	2,613	2,616
Expected to vest (in shares)	1,962
Weighted- Average Grant-Date Fair Value
Nonvested, beginning of period (in dollars per share)	$ 64.85
Granted (in dollars per share)	62.57	$ 46.57	$ 74.50
Vested (in dollars per share)	67.39
Forfeited (in dollars per share)	63.78
Nonvested, end of period (in dollars per share)	64.21	$ 64.85
Expected to vest (in dollars per share)	$ 63.39
Aggregate Intrinsic Value
Nonvested	$ 243,516
Expected to vest	$ 182,854

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plan, expense	$ 28,240	$ 29,425	$ 30,135
U.S. 401(k) Plan
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plan, expense	7,937	8,169	8,994
International plans
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plan, expense	$ 20,303	$ 21,256	$ 21,141

INCOME TAXES - Schedule of Comp

INCOME TAXES - Schedule of Components of Income (Loss) Before (Benefit From) Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Domestic	$ 51,966	$ 14,016	$ (185,820)
Foreign	90,670	81,424	24,023
Income (loss) before provision for income taxes	$ 142,636	$ 95,440	$ (161,797)

INCOME TAXES - Schedule of Co_2

INCOME TAXES - Schedule of Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Current:
Federal	$ 22,941	$ 7,827	$ 3,920
State	7,503	4,480	775
Foreign	14,547	14,962	10,200
Total current provision	44,991	27,269	14,895
Deferred:
Federal	0	0	149,028
State	0	0	20,704
Foreign	(1,544)	363	(842)
Total deferred (benefit) provision	(1,544)	363	168,890
Income tax expense (benefit), total	$ 43,447	$ 27,632	$ 183,785

INCOME TAXES - Schedule of Reco

INCOME TAXES - Schedule of Reconciliation of Effective Income Tax Rate From Statutory Federal Income Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
U.S. federal income taxes at statutory rates	$ 29,954	$ 20,042	$ (33,977)
Valuation allowance	(1,504)	(19,272)	188,258
State income taxes, net of federal benefit and tax credits	1,297	4,117	(2,433)
Permanent differences	786	435	11,561
Federal research and experimentation credits	(4,888)	(3,709)	(5,012)
Tax effects of foreign activities	(7,817)	658	3,770
GILTI, FDII, and BEAT	13,945	14,022	16,390
Provision to return adjustments	121	(3,728)	(6,317)
Non-deductible compensation	10,933	6,818	4,769
Tax Reserves	5,917	1,850	5,673
Excess tax (benefits) / detriments related to share-based compensation	(5,645)	4,666	1,563
Impact of change in tax law	0	1,726	(793)
Other	348	7	333
Income tax expense (benefit), total	$ 43,447	$ 27,632	$ 183,785

INCOME TAXES - Schedule of Co_3

INCOME TAXES - Schedule of Components of Net Deferred Tax Asset and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Deferred tax assets:
Net operating loss carryforwards	$ 72,089	$ 84,656
Accruals and reserves	57,312	41,323
Software revenue	454	3,186
Convertible senior notes	355	2,645
Tax credit carryforwards	10,441	28,456
Research and development capitalization	75,289	58,866
Total deferred tax assets	215,940	219,132
Valuation allowances	(195,252)	(196,901)
Total net deferred tax assets	20,688	22,231
Deferred tax liabilities:
Capped call transactions	(57)	(223)
Depreciation	(3,663)	(4,428)
Intangibles	(9,116)	(11,979)
Other, net	(3,554)	(2,782)
Total deferred tax liabilities	(16,390)	(19,412)
Deferred tax assets, net	$ 4,298	$ 2,819

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Income Tax Contingency [Line Items]
Valuation allowance	$ 195,252	$ 196,901
Recognition of valuation allowance on deferred tax assets	(1,600)
Tax credit carryforwards	10,441	28,456
Accrued liabilities related to uncertain tax	12,900
State Tax Jurisdiction
Income Tax Contingency [Line Items]
Net operating loss carryforwards	5,400	8,800
Tax credit carryforwards	10,400
Carryforwards with unlimited carryforward period	1,000
Federal Tax Jurisdiction
Income Tax Contingency [Line Items]
Net operating loss carryforwards	14,200	20,600
Carryforwards with unlimited carryforward period	1,200
Foreign Tax Jurisdiction
Income Tax Contingency [Line Items]
Net operating loss carryforwards	$ 147,900	$ 183,100

INCOME TAXES - Schedule of Re_2

INCOME TAXES - Schedule of Reconciliation of Beginning and Ending Balances of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Unrecognized Tax Benefits [Roll Forward]
Balance at beginning of period	$ 30,655	$ 19,746	$ 17,584
Additions for tax positions related to the current year	7,316	4,859	1,706
Additions for tax positions of prior years	2,941	7,921	728
Reductions for tax positions of prior years	(3,026)	(1,871)	(272)
Balance at end of period	$ 37,886	$ 30,655	$ 19,746

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($) $ / shares $ / derivative shares	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Feb. 29, 2020 $ / derivative
Basic
Net income (loss) | $	$ 99,189	$ 67,808	$ (345,582)
Weighted-average common shares outstanding (in shares)	85,265	83,162	81,947
Earnings (loss) per share, basic (in dollars per share) | $ / shares	$ 1.16	$ 0.82	$ (4.22)
Diluted
Net income (loss) | $	$ 99,189	$ 67,808	$ (345,582)
Convertible senior notes - interest expense and settlement gains, net of tax | $	(76)	(5,528)	0
Numerator for diluted EPS | $	$ 99,113	$ 62,280	$ (345,582)
Weighted-average effect of dilutive securities:
Convertible senior notes (in shares)	214	235	0
Effect of dilutive securities (in shares)	4,369	1,752	0
Weighted-average common shares outstanding, assuming dilution (in shares)	89,634	84,914	81,947
Earnings (loss) per share, diluted (in dollars per share) | $ / shares	$ 1.11	$ 0.73	$ (4.22)
Outstanding anti-dilutive stock options and RSUs (in shares)	148	250	3,367
Cap price (in dollars per share) | $ / derivative	196.44
Capped Call Transactions
Weighted-average effect of dilutive securities:
Number of shares issuable upon conversion (in shares)	3,500
Cap price (in dollars per share) | $ / derivative				196.44
Stock options
Weighted-average effect of dilutive securities:
Share-based compensation (in shares)	2,710	794	0
Number of shares issuable upon conversion (in shares)	3,500
RSUs
Weighted-average effect of dilutive securities:
Share-based compensation (in shares)	1,445	723	0

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	Sep. 15, 2022 USD ($)	May 09, 2022 USD ($)	Dec. 31, 2024 USD ($)	Dec. 04, 2024 lawsuit	Dec. 31, 2023 USD ($)	Sep. 29, 2022 USD ($)
Loss Contingencies [Line Items]
Accrued losses for litigation			$ 0		$ 0
Outstanding letters of credit			$ 27,300,000		$ 27,300,000
Appian Corp. v. Pegasystems Inc. & Youyong Zou
Loss Contingencies [Line Items]
Outstanding letters of credit						$ 25,000,000
Appian Corp. v. Pegasystems Inc. & Youyong Zou | Judicial Ruling
Loss Contingencies [Line Items]
Loss contingency, damages awarded, value	$ 2,060,479,287
Class Action, Case 12999 and Case 11220 | Pending Litigation
Loss Contingencies [Line Items]
Percentage of settlement class that opted out of court approved settlement				3%
Number of pending lawsuits | lawsuit				2
Trade Secret Misappropriation | Appian Corp. v. Pegasystems Inc. & Youyong Zou
Loss Contingencies [Line Items]
Legal fees, post-judgement interest rate, percentage	6%
Trade Secret Misappropriation | Appian Corp. v. Pegasystems Inc. & Youyong Zou | Judicial Ruling
Loss Contingencies [Line Items]
Loss contingency, damages awarded, value		$ 2,036,860,045
Violation of the Virginia Computer Crimes Act | Appian Corp. v. Pegasystems Inc. & Youyong Zou | Judicial Ruling
Loss Contingencies [Line Items]
Loss contingency, damages awarded, value		$ 1