Pegasystems (PEGA) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	PEGA
Entity Registrant Name	PEGASYSTEMS INC.
Entity Central Index Key	1,013,857
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		77,142,095

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 83,838	$ 70,594
Marketable securities	63,948	63,167
Total cash, cash equivalents, and marketable securities	147,786	133,761
Trade accounts receivable, net of allowance of $4,780 and $4,126	263,310	265,028
Income taxes receivable	10,827	14,155
Other current assets	19,652	12,188
Total current assets	441,575	425,132
Property and equipment, net	39,947	38,281
Deferred income taxes	69,846	69,898
Long-term other assets	4,445	3,990
Intangible assets, net	40,998	44,191
Goodwill	72,828	73,164
Total assets	669,639	654,656
Current liabilities:
Accounts payable	14,237	14,414
Accrued expenses	38,545	36,751
Accrued compensation and related expenses	39,958	60,660
Deferred revenue	186,824	175,647
Total current liabilities	279,564	287,472
Income taxes payable	4,307	4,263
Long-term deferred revenue	9,958	10,989
Other long-term liabilities	15,733	16,043
Total liabilities	309,562	318,767
Stockholders' equity:
Preferred stock, 1,000 shares authorized; no shares issued and outstanding
Common stock, 200,000 shares authorized; 77,129 shares and 76,591 shares issued and outstanding	771	766
Additional paid-in capital	142,472	143,903
Retained earnings	223,021	198,315
Accumulated other comprehensive loss	(6,187)	(7,095)
Total stockholders' equity	360,077	335,889
Total liabilities and stockholders' equity	$ 669,639	$ 654,656

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Allowance for sales credit memos	$ 4,780	$ 4,126
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	77,129,000	76,591,000
Common stock, shares outstanding	77,129,000	76,591,000

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Software license	$ 92,390	$ 68,345
Maintenance	58,965	52,975
Services	71,892	57,538
Total revenue	223,247	178,858
Cost of revenue:
Software license	1,300	1,021
Maintenance	7,218	5,915
Services	59,572	49,574
Total cost of revenue	68,090	56,510
Gross profit	155,157	122,348
Operating expenses:
Selling and marketing	71,288	61,078
Research and development	40,296	34,920
General and administrative	12,335	11,048
Acquisition-related		919
Restructuring		258
Total operating expenses	123,919	108,223
Income from operations	31,238	14,125
Foreign currency transaction gain	676	1,376
Interest income, net	165	290
Other expense, net	(279)	(2,298)
Income before provision for income taxes	31,800	13,493
Provision for income taxes	4,779	3,093
Net income	$ 27,021	$ 10,400
Earnings per share:
Basic	$ 0.35	$ 0.14
Diluted	$ 0.33	$ 0.13
Weighted-average number of common shares outstanding:
Basic	76,761	76,375
Diluted	81,875	79,235
Cash dividends declared per share	$ 0.03	$ 0.03

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net income	$ 27,021	$ 10,400
Other comprehensive income, net:
Unrealized gain on available-for-sale marketable securities, net of tax	127	286
Foreign currency translation adjustments	781	(7)
Total other comprehensive income, net	908	279
Comprehensive income	$ 27,929	$ 10,679

UNAUDITED CONDENSED CONSOLIDAT6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities:
Net income	$ 27,021	$ 10,400
Adjustments to reconcile net income to cash provided by operating activities:
Deferred income taxes	727	650
Depreciation and amortization	6,088	5,466
Stock-based compensation expense	12,508	8,935
Foreign currency transaction gain	(676)	(1,376)
Other non-cash	(379)	2,712
Change in operating assets and liabilities:
Trade accounts receivable	3,383	6,697
Income taxes receivable and other current assets	(4,382)	(201)
Accounts payable and accrued expenses	(21,193)	(24,822)
Deferred revenue	9,412	1,129
Other long-term assets and liabilities	(65)	450
Cash provided by operating activities	32,444	10,040
Investing activities:
Purchases of marketable securities	(3,322)	(8,193)
Proceeds from maturities and called marketable securities	2,300	15,890
Sales of marketable securities		6,179
Payments for acquisitions, net of cash acquired	(290)	(255)
Investment in property and equipment	(2,415)	(4,251)
Cash (used in) provided by investing activities	(3,727)	9,370
Financing activities:
Issuance of common stock for share-based compensation plans	68	44
Dividend payments to shareholders	(2,298)	(2,297)
Common stock repurchases for tax withholdings for net settlement of equity awards and under share repurchase programs	(13,764)	(17,569)
Cash used in financing activities	(15,994)	(19,822)
Effect of exchange rates on cash and cash equivalents	521	(434)
Net increase (decrease) in cash and cash equivalents	13,244	(846)
Cash and cash equivalents, beginning of period	70,594	93,026
Cash and cash equivalents, end of period	$ 83,838	$ 92,180

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2017
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION Pegasystems Inc. (together with its subsidiaries, “the Company”) has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S.”) for complete financial statements and should be read in conjunction with the Company’s audited financial statements included in the Annual Report on Form 10-K In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited financial statements, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2017.

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2017
NEW ACCOUNTING PRONOUNCEMENTS	2. NEW ACCOUNTING PRONOUNCEMENTS Financial Instruments: No. 2016-13, available-for-sale Leases: No. 2016-02, right-of-use right-of-use Revenue: No. 2014-09, The Company has elected the full retrospective adoption model, effective January 1, 2018. The Company’s quarterly results beginning with the quarter ending March 31, 2018 and comparative prior periods will be compliant with ASC 606. The Company’s Annual Report on Form 10-K The Company is still in the process of quantifying the implications of the adoption of ASC 606. However the Company currently expects the following impacts: • Currently, the Company recognizes revenue from term licenses and perpetual licenses with extended payment terms over the term of the agreement as payments become due or earlier if prepaid, provided all other criteria for revenue recognition have been met, and any corresponding maintenance over the maintenance term. The adoption of ASC 606 will result in revenue for performance obligations being recognized as they are satisfied. Therefore, revenue from the term license and perpetual performance obligation with extended payment terms is expected to be recognized when control is transferred to the customer and revenue from the maintenance performance obligation is expected to be recognized on a straight-line basis over the contractual maintenance term. This will result in revenue from term licenses and perpetual licenses with extended payment terms being recognized prior to amounts being billed to the customer, and in these cases the Company expects to recognize a net contract asset on the balance sheet. • Currently, the Company allocates revenue to licenses under the residual method when it has VSOE for the remaining undelivered elements which allocates any future credits or significant discounts entirely to the license. The adoption of ASC 606 will result in the future credits, significant discounts, and material rights under ASC 606, being allocated to all performance obligations based upon their relative selling price. Under ASC 606, additional license revenue from the reallocation of such arrangement considerations will be recognized when control is transferred to the customer. • Currently, the Company does not have VSOE for fixed price services, time and materials services in certain geographical areas, and unspecified future products, which results in revenue being deferred in such instances until such time as VSOE exists for all undelivered elements or recognized ratably over the longest performance period. The adoption of ASC 606 eliminates the requirement for VSOE and replaces it with the concept of a stand-alone selling price. Once the transaction price is allocated to each of the performance obligations the Company can recognize revenue as the performance obligations are delivered, either at a point in time or over time. Under ASC 606, license revenue will be recognized when control is transferred to the customer. • Sales commissions and other third party acquisition costs resulting directly from securing contracts with customers are currently expensed when incurred. ASC 606 will require these costs to be recognized as an asset when incurred and to be expensed over the associated contract term. As a practical expedient, if the term of the contract is one year or less, the Company will expense the costs resulting directly from securing the contracts with customers. The Company expects this to impact its multi-year cloud offerings and licenses with additional rights of use that extend beyond one year. • ASC 606 provides additional accounting guidance for contract modifications whereby changes must be accounted for either as a retrospective change (creating either a catch up or deferral of past revenues), prospectively with a reallocation of revenues amongst identified performance obligations, or prospectively as separate contracts which will not require any reallocation. This may result in a difference in the timing of the recognition of revenue as compared to how current contract modifications are recognized. • There will be a corresponding effect on tax liabilities in relation to all of the above impacts.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	3 Months Ended
	Mar. 31, 2017
MARKETABLE SECURITIES	3. MARKETABLE SECURITIES March 31, 2017 (in thousands) Amortized Unrealized Unrealized Fair Value Municipal bonds $ 36,944 $ 15 $ (38 ) $ 36,921 Corporate bonds 27,057 2 (32 ) 27,027 $ 64,001 $ 17 $ (70 ) $ 63,948 December 31, 2016 (in thousands) Amortized Unrealized Unrealized Fair Value Municipal bonds $ 36,746 $ — $ (139 ) $ 36,607 Corporate bonds 26,610 1 (51 ) 26,560 $ 63,356 $ 1 $ (190 ) $ 63,167 The Company considers debt securities with maturities of three months or less from the purchase date to be cash equivalents. Interest is recorded when earned. All of the Company’s investments are classified as available-for-sale As of March 31, 2017, remaining maturities of marketable debt securities ranged from April 2017 to August 2019, with a weighted-average remaining maturity of approximately 12 months.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Mar. 31, 2017
DERIVATIVE INSTRUMENTS	4. DERIVATIVE INSTRUMENTS The Company uses foreign currency forward contracts (“forward contracts”) to hedge its exposure to fluctuations in foreign currency exchange rates associated with its foreign currency denominated cash, accounts receivable, and intercompany receivables and payables held by its U.S. parent company and United Kingdom (“U.K.”) subsidiary. The Company is primarily exposed to foreign currency exchange rate fluctuations in the U.S. dollar, the Euro and the Australian dollar relative to the British pound and the Euro and the Indian rupee relative to the U.S. dollar. At the end of June 2016, the U.K. held a referendum in which U.K. voters approved an exit from the European Union (the “E.U.”), commonly referred to as “Brexit”. Uncertainty continues to remain around the future effects of Brexit, resulting in continued volatility in the British pound relative to other currencies. This prolonged weakening of the British pound may continue to result in foreign currency transaction gains from the remeasurement of foreign currency denominated cash and accounts receivable held by the Company’s U.K. subsidiary with corresponding losses on the Company’s forward contracts included in other expense, net. The forward contracts are not designated as hedging instruments. As a result, the Company records the fair value of these contracts at the end of each reporting period in the accompanying unaudited condensed consolidated balance sheets as other current assets for unrealized gains and accrued expenses for unrealized losses, with any fluctuations in the value of these contracts recognized in other expense, net, in the accompanying unaudited condensed consolidated statements of operations. The cash flows related to these forward contracts are classified as operating activities in the accompanying unaudited condensed consolidated statements of cash flows. The Company does not enter into any forward contracts for trading or speculative purposes. As of March 31, 2017 and December 31, 2016, the total notional value of the Company’s outstanding forward contracts were $36.8 million and $128.4 million, respectively. The fair value of the Company’s outstanding forward contracts was as follows: (in thousands) March 31, 2017 December 31, 2016 Recorded In: Fair Value Recorded In: Fair Value Asset Derivatives Foreign currency forward contracts Other current assets $ 90 Other current assets $ 628 Liability Derivatives Foreign currency forward contracts Accrued expenses $ 17 Accrued expenses $ 883 The Company had forward contracts outstanding with total notional values as follows: As of March 31, 2017 Currency (in thousands) 2017 2016 Euro € 12,305 € 15,590 British pound £ 855 £ 2,605 Australian dollar A$ 10,160 A$ 16,025 Indian rupee Rs — Rs 303,500 United States dollar $ 14,705 $ 21,080 Three Months Ended (in thousands) 2017 2016 Loss from the change in the fair value of forward contracts included in other expense, net $ (279 ) $ (2,297 ) Foreign currency transaction gain from the remeasurement of foreign currency assets and liabilities $ 676 $ 1,376 Net gain (loss) $ 397 $ (921 )

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2017
FAIR VALUE MEASUREMENTS	5. FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company records its marketable securities and forward contracts at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants based on assumptions that market participants would use in pricing an asset or liability. As a basis for classifying the fair value measurements, a three-tier fair value hierarchy, which classifies the fair value measurements based on the inputs used in measuring fair value, was established as follows: (Level 1) observable inputs such as quoted prices in active markets for identical assets or liabilities; (Level 2) significant other inputs that are observable either directly or indirectly; and (Level 3) significant unobservable inputs on which there is little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company’s money market funds are classified within Level 1 of the fair value hierarchy. The Company’s marketable securities classified within Level 2 of the fair value hierarchy are valued based on a market approach using quoted prices, when available, or matrix pricing compiled by third party pricing vendors, using observable market inputs such as interest rates, yield curves, and credit risk. The Company’s foreign currency forward contracts, which are all classified within Level 2 of the fair value hierarchy, are valued based on the notional amounts and rates under the contracts and observable market inputs such as currency exchange rates and credit risk. If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2017. The Company’s assets and liabilities measured at fair value on a recurring basis consisted of the following: Fair Value Measurements at (in thousands) March 31, Level 1 Level 2 Fair Value Assets: Money market funds $ 85 $ 85 $ — Marketable securities: Municipal bonds $ 36,921 $ — $ 36,921 Corporate bonds 27,027 — 27,027 Total marketable securities $ 63,948 $ — $ 63,948 Foreign currency forward contracts $ 90 $ — $ 90 Fair Value Liabilities: Foreign currency forward contracts $ 17 $ — $ 17 Fair Value Measurements at (in thousands) December 31, Level 1 Level 2 Fair Value Assets: Money market funds $ 458 $ 458 $ — Marketable securities: Municipal bonds $ 36,607 $ — $ 36,607 Corporate bonds 26,560 — 26,560 Total marketable securities $ 63,167 $ — $ 63,167 Foreign currency forward contracts $ 628 $ — $ 628 Fair Value Liabilities: Foreign currency forward contracts $ 883 $ — $ 883 For certain other financial instruments, including accounts receivable and accounts payable, the carrying value approximates their fair value due to the relatively short maturity of these items. Assets Measured at Fair Value on a Nonrecurring Basis Assets recorded at fair value on a nonrecurring basis, such as property and equipment, and intangible assets, are recognized at fair value if they become impaired. During the first three months of 2017 and 2016, the Company did not recognize any impairments of its assets recorded at fair value on a nonrecurring basis.

TRADE ACCOUNTS RECEIVABLE, NET

TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE	3 Months Ended
	Mar. 31, 2017
TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE	6. TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE Unbilled trade accounts receivable primarily relate to services earned under time and materials arrangements and to license, maintenance, and cloud arrangements that have commenced or been delivered in excess of scheduled invoicing. (in thousands) March 31, December 31, Trade accounts receivable $ 230,213 $ 234,473 Unbilled trade accounts receivable 37,877 34,681 Total accounts receivable 268,090 269,154 Allowance for sales credit memos (4,780 ) (4,126 ) $ 263,310 $ 265,028

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2017
GOODWILL AND OTHER INTANGIBLE ASSETS	7. GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents the changes in the carrying amount of goodwill: (in thousands) 2017 Balance as of January 1, $ 73,164 Purchase price adjustments to goodwill (354 ) Currency translation adjustments 18 Balance as of March 31, $ 72,828 Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful lives. (in thousands) Range of Cost Accumulated Net Book As of March 31, 2017 Customer related intangibles 4-10 $ 63,100 $ (39,441 ) $ 23,659 Technology 3-10 58,942 (41,603 ) 17,339 Other intangibles 3 years 5,361 (5,361 ) — Total $ 127,403 $ (86,405 ) $ 40,998 As of December 31, 2016 Customer related intangibles 4-10 $ 63,091 $ (37,573 ) $ 25,518 Technology 3-10 58,942 (40,269 ) 18,673 Other intangibles 3 years 5,361 (5,361 ) — Total $ 127,394 $ (83,203 ) $ 44,191 Amortization expense of acquired intangibles is reflected in the Company’s unaudited condensed consolidated statements of operations as follows: Three Months Ended (in thousands) 2017 2016 Cost of revenue $ 1,334 $ 1,346 Selling and marketing 1,866 1,530 General and administrative — 89 Total amortization expense $ 3,200 $ 2,965 Amortization of intangibles is estimated to be recorded over their remaining useful lives as follows: (in thousands) as of March 31, 2017 Future estimated Remainder of 2017 $ 9,129 2018 11,337 2019 5,545 2020 2,649 2021 2,626 2022 and thereafter 9,712 $ 40,998

ACCRUED EXPENSES

ACCRUED EXPENSES	3 Months Ended
	Mar. 31, 2017
ACCRUED EXPENSES	8. ACCRUED EXPENSES (in thousands) March 31, December 31, Partner commissions $ 1,829 $ 2,199 Other taxes 7,418 9,031 Employee reimbursable expenses 2,280 1,624 Dividends payable 2,315 2,298 Professional services contractor fees 6,581 6,550 Self-insurance health and dental claims 2,324 2,182 Professional fees 3,783 3,654 Short-term deferred rent 1,839 1,770 Income taxes payable 1,168 1,391 Acquisition-related expenses and merger consideration — 290 Restructuring 101 105 Marketing and sales program expenses 2,865 1,508 Foreign currency forward contracts 17 883 Fixed assets in progress 2,811 855 Other 3,214 2,411 $ 38,545 $ 36,751

DEFERRED REVENUE

DEFERRED REVENUE	3 Months Ended
	Mar. 31, 2017
DEFERRED REVENUE	9. DEFERRED REVENUE (in thousands) March 31, December 31, Term license $ 10,056 $ 15,843 Perpetual license 25,240 23,189 Maintenance 122,628 112,397 Cloud 17,928 13,604 Services 10,972 10,614 Current deferred revenue 186,824 175,647 Perpetual license 6,901 7,909 Maintenance 1,744 1,802 Cloud 1,313 1,278 Long-term deferred revenue 9,958 10,989 $ 196,782 $ 186,636

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2017
STOCK-BASED COMPENSATION	10. STOCK-BASED COMPENSATION The following table presents the stock-based compensation expense included in the Company’s unaudited condensed consolidated statements of operations: Three Months Ended (in thousands) 2017 2016 Cost of revenues $ 3,622 $ 2,680 Operating expenses 8,886 6,255 Total stock-based compensation before tax $ 12,508 $ 8,935 Income tax benefit $ (3,815 ) $ (2,605 ) During the first three months of 2017, the Company issued approximately 564,000 shares of common stock to its employees and 9,000 shares of common stock to its non-employee During the first three months of 2017, the Company granted approximately 919,000 restricted stock units (“RSUs”) and 1,414,000 non-qualified one-year The Company recognizes stock based compensation on the accelerated recognition method, treating each vesting tranche as if it were an individual grant. As of March 31, 2017, the Company had approximately $76.2 million of unrecognized stock-based compensation expense, net of estimated forfeitures, related to all unvested RSUs and unvested stock options that is expected to be recognized over a weighted-average period of 2.2 years.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2017
EARNINGS PER SHARE	11. EARNINGS PER SHARE Basic earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period, plus the dilutive effect of outstanding options and RSUs, using the treasury stock method. Certain shares related to some of the Company’s outstanding stock options and RSUs were excluded from the computation of diluted earnings per share because they were anti-dilutive in the periods presented, but could be dilutive in the future. Three Months Ended March 31, (in thousands, except per share amounts) 2017 2016 Basic Net income $ 27,021 $ 10,400 Weighted-average common shares outstanding 76,761 76,375 Earnings per share, basic $ 0.35 $ 0.14 Diluted Net income $ 27,021 $ 10,400 Weighted-average common shares outstanding, basic 76,761 76,375 Weighted-average effect of dilutive securities: Stock options 3,184 1,692 RSUs 1,930 1,168 Effect of assumed exercise of stock options and RSUs 5,114 2,860 Weighted-average common shares outstanding, assuming dilution 81,875 79,235 Earnings per share, diluted $ 0.33 $ 0.13 Outstanding options and RSUs excluded as impact would be anti-dilutive 314 492

GEOGRAPHIC INFORMATION AND MAJO

GEOGRAPHIC INFORMATION AND MAJOR CLIENTS	3 Months Ended
	Mar. 31, 2017
GEOGRAPHIC INFORMATION AND MAJOR CLIENTS	12. GEOGRAPHIC INFORMATION AND MAJOR CLIENTS Geographic Information Operating segments are defined as components of an enterprise, about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company develops and licenses software applications for customer engagement and its Pega ® The Company’s international revenue is from clients based outside of the U.S. The Company derived its revenue from the following geographic areas: Three Months Ended March 31, (Dollars in thousands) 2017 2016 U.S. $ 137,609 61 % $ 93,228 52 % Other Americas 9,491 4 % 25,559 14 % U.K. 30,190 14 % 24,355 14 % Other EMEA (1) 21,846 10 % 21,267 12 % Asia Pacific 24,111 11 % 14,449 8 % $ 223,247 100 % $ 178,858 100 % (1) Includes Europe, the Middle East and Africa, but excludes the United Kingdom. Major Clients Clients accounting for 10% or more of the Company’s total revenue were as follows: Three Months Ended March 31, (Dollars in thousands) 2017 2016 Total revenue 223,247 178,858 Client A — % 10 % No client accounted for 10% or more of the Company’s total outstanding trade receivables as of March 31, 2017 or December 31, 2016.

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2017
Schedule of Available for Sale Securities Reconciliation	March 31, 2017 (in thousands) Amortized Unrealized Unrealized Fair Value Municipal bonds $ 36,944 $ 15 $ (38 ) $ 36,921 Corporate bonds 27,057 2 (32 ) 27,027 $ 64,001 $ 17 $ (70 ) $ 63,948 December 31, 2016 (in thousands) Amortized Unrealized Unrealized Fair Value Municipal bonds $ 36,746 $ — $ (139 ) $ 36,607 Corporate bonds 26,610 1 (51 ) 26,560 $ 63,356 $ 1 $ (190 ) $ 63,167

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value of Company Outstanding Forward Contracts	The fair value of the Company’s outstanding forward contracts was as follows: (in thousands) March 31, 2017 December 31, 2016 Recorded In: Fair Value Recorded In: Fair Value Asset Derivatives Foreign currency forward contracts Other current assets $ 90 Other current assets $ 628 Liability Derivatives Foreign currency forward contracts Accrued expenses $ 17 Accrued expenses $ 883
Forward Contracts Outstanding with Total Notional Values	The Company had forward contracts outstanding with total notional values as follows: As of March 31, 2017 Currency (in thousands) 2017 2016 Euro € 12,305 € 15,590 British pound £ 855 £ 2,605 Australian dollar A$ 10,160 A$ 16,025 Indian rupee Rs — Rs 303,500 United States dollar $ 14,705 $ 21,080
Change in Fair Value of Forward Contracts	As of March 31, 2017 Currency (in thousands) 2017 2016 Euro € 12,305 € 15,590 British pound £ 855 £ 2,605 Australian dollar A$ 10,160 A$ 16,025 Indian rupee Rs — Rs 303,500 United States dollar $ 14,705 $ 21,080 Three Months Ended (in thousands) 2017 2016 Loss from the change in the fair value of forward contracts included in other expense, net $ (279 ) $ (2,297 ) Foreign currency transaction gain from the remeasurement of foreign currency assets and liabilities $ 676 $ 1,376 Net gain (loss) $ 397 $ (921 )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Assets and Liabilities Measured at Fair Value	The Company’s assets and liabilities measured at fair value on a recurring basis consisted of the following: Fair Value Measurements at (in thousands) March 31, Level 1 Level 2 Fair Value Assets: Money market funds $ 85 $ 85 $ — Marketable securities: Municipal bonds $ 36,921 $ — $ 36,921 Corporate bonds 27,027 — 27,027 Total marketable securities $ 63,948 $ — $ 63,948 Foreign currency forward contracts $ 90 $ — $ 90 Fair Value Liabilities: Foreign currency forward contracts $ 17 $ — $ 17 Fair Value Measurements at (in thousands) December 31, Level 1 Level 2 Fair Value Assets: Money market funds $ 458 $ 458 $ — Marketable securities: Municipal bonds $ 36,607 $ — $ 36,607 Corporate bonds 26,560 — 26,560 Total marketable securities $ 63,167 $ — $ 63,167 Foreign currency forward contracts $ 628 $ — $ 628 Fair Value Liabilities: Foreign currency forward contracts $ 883 $ — $ 883

TRADE ACCOUNTS RECEIVABLE, NE22

TRADE ACCOUNTS RECEIVABLE, NET OF ALLOWANCE (Tables)	3 Months Ended
	Mar. 31, 2017
Schedule of Trade Accounts Receivable	Unbilled trade accounts receivable primarily relate to services earned under time and materials arrangements and to license, maintenance, and cloud arrangements that have commenced or been delivered in excess of scheduled invoicing. (in thousands) March 31, December 31, Trade accounts receivable $ 230,213 $ 234,473 Unbilled trade accounts receivable 37,877 34,681 Total accounts receivable 268,090 269,154 Allowance for sales credit memos (4,780 ) (4,126 ) $ 263,310 $ 265,028

GOODWILL AND OTHER INTANGIBLE23

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2017
Changes in Carrying Amount of Goodwill	The following table presents the changes in the carrying amount of goodwill: (in thousands) 2017 Balance as of January 1, $ 73,164 Purchase price adjustments to goodwill (354 ) Currency translation adjustments 18 Balance as of March 31, $ 72,828
Schedule of Amortizable Intangible Assets	Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful lives. (in thousands) Range of Cost Accumulated Net Book As of March 31, 2017 Customer related intangibles 4-10 $ 63,100 $ (39,441 ) $ 23,659 Technology 3-10 58,942 (41,603 ) 17,339 Other intangibles 3 years 5,361 (5,361 ) — Total $ 127,403 $ (86,405 ) $ 40,998 As of December 31, 2016 Customer related intangibles 4-10 $ 63,091 $ (37,573 ) $ 25,518 Technology 3-10 58,942 (40,269 ) 18,673 Other intangibles 3 years 5,361 (5,361 ) — Total $ 127,394 $ (83,203 ) $ 44,191
Amortization Expense of Acquired Intangibles	Amortization expense of acquired intangibles is reflected in the Company’s unaudited condensed consolidated statements of operations as follows: Three Months Ended (in thousands) 2017 2016 Cost of revenue $ 1,334 $ 1,346 Selling and marketing 1,866 1,530 General and administrative — 89 Total amortization expense $ 3,200 $ 2,965
Estimated Future Amortization Expense	Amortization of intangibles is estimated to be recorded over their remaining useful lives as follows: (in thousands) as of March 31, 2017 Future estimated Remainder of 2017 $ 9,129 2018 11,337 2019 5,545 2020 2,649 2021 2,626 2022 and thereafter 9,712 $ 40,998

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2017
Schedule of Accrued Expenses	(in thousands) March 31, December 31, Partner commissions $ 1,829 $ 2,199 Other taxes 7,418 9,031 Employee reimbursable expenses 2,280 1,624 Dividends payable 2,315 2,298 Professional services contractor fees 6,581 6,550 Self-insurance health and dental claims 2,324 2,182 Professional fees 3,783 3,654 Short-term deferred rent 1,839 1,770 Income taxes payable 1,168 1,391 Acquisition-related expenses and merger consideration — 290 Restructuring 101 105 Marketing and sales program expenses 2,865 1,508 Foreign currency forward contracts 17 883 Fixed assets in progress 2,811 855 Other 3,214 2,411 $ 38,545 $ 36,751

DEFERRED REVENUE (Tables)

DEFERRED REVENUE (Tables)	3 Months Ended
	Mar. 31, 2017
Schedule of Deferred Revenue	(in thousands) March 31, December 31, Term license $ 10,056 $ 15,843 Perpetual license 25,240 23,189 Maintenance 122,628 112,397 Cloud 17,928 13,604 Services 10,972 10,614 Current deferred revenue 186,824 175,647 Perpetual license 6,901 7,909 Maintenance 1,744 1,802 Cloud 1,313 1,278 Long-term deferred revenue 9,958 10,989 $ 196,782 $ 186,636

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2017
Stock-Based Compensation Expense Included in Consolidated Statements of Operations	The following table presents the stock-based compensation expense included in the Company’s unaudited condensed consolidated statements of operations: Three Months Ended (in thousands) 2017 2016 Cost of revenues $ 3,622 $ 2,680 Operating expenses 8,886 6,255 Total stock-based compensation before tax $ 12,508 $ 8,935 Income tax benefit $ (3,815 ) $ (2,605 )

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
Summary of Basic and Diluted Earnings (Loss) Per Share	Three Months Ended March 31, (in thousands, except per share amounts) 2017 2016 Basic Net income $ 27,021 $ 10,400 Weighted-average common shares outstanding 76,761 76,375 Earnings per share, basic $ 0.35 $ 0.14 Diluted Net income $ 27,021 $ 10,400 Weighted-average common shares outstanding, basic 76,761 76,375 Weighted-average effect of dilutive securities: Stock options 3,184 1,692 RSUs 1,930 1,168 Effect of assumed exercise of stock options and RSUs 5,114 2,860 Weighted-average common shares outstanding, assuming dilution 81,875 79,235 Earnings per share, diluted $ 0.33 $ 0.13 Outstanding options and RSUs excluded as impact would be anti-dilutive 314 492

GEOGRAPHIC INFORMATION AND MA28

GEOGRAPHIC INFORMATION AND MAJOR CLIENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Revenue by Geographic Area	The Company’s international revenue is from clients based outside of the U.S. The Company derived its revenue from the following geographic areas: Three Months Ended March 31, (Dollars in thousands) 2017 2016 U.S. $ 137,609 61 % $ 93,228 52 % Other Americas 9,491 4 % 25,559 14 % U.K. 30,190 14 % 24,355 14 % Other EMEA (1) 21,846 10 % 21,267 12 % Asia Pacific 24,111 11 % 14,449 8 % $ 223,247 100 % $ 178,858 100 % (1) Includes Europe, the Middle East and Africa, but excludes the United Kingdom.
Total Revenue of Major Clients	Clients accounting for 10% or more of the Company’s total revenue were as follows: Three Months Ended March 31, (Dollars in thousands) 2017 2016 Total revenue 223,247 178,858 Client A — % 10 %

Schedule of Marketable Securiti

Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 64,001	$ 63,356
Unrealized Gains	17	1
Unrealized Losses	(70)	(190)
Fair Value	63,948	63,167
Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	36,944	36,746
Unrealized Gains	15
Unrealized Losses	(38)	(139)
Fair Value	36,921	36,607
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	27,057	26,610
Unrealized Gains	2	1
Unrealized Losses	(32)	(51)
Fair Value	$ 27,027	$ 26,560

Marketable Securities - Additio

Marketable Securities - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Weighted-average remaining maturity period of marketable debt securities, months	12 months
Minimum
Schedule of Available-for-sale Securities [Line Items]
Remaining maturities of marketable debt securities	2017-04
Maximum
Schedule of Available-for-sale Securities [Line Items]
Remaining maturities of marketable debt securities	2019-08

Derivative Instruments - Additi

Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Foreign Exchange Forward
Derivative [Line Items]
Notional value	$ 36.8	$ 128.4

Fair Value of Company Outstandi

Fair Value of Company Outstanding Forward Contracts (Detail) - Foreign Exchange Forward - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accrued expenses
Derivative [Line Items]
Liability Derivatives	$ 17	$ 883
Other current assets
Derivative [Line Items]
Asset Derivatives	$ 90	$ 628

Forward Contracts Outstanding w

Forward Contracts Outstanding with Total Notional Values (Detail) - Foreign Exchange Forward € in Thousands, ₨ in Thousands, £ in Thousands, AUD in Thousands, $ in Thousands	Mar. 31, 2017USD ($)	Mar. 31, 2017AUD	Mar. 31, 2017GBP (£)	Mar. 31, 2017EUR (€)	Mar. 31, 2016USD ($)	Mar. 31, 2016AUD	Mar. 31, 2016GBP (£)	Mar. 31, 2016INR (₨)	Mar. 31, 2016EUR (€)
Euro Member Countries, Euros
Derivative [Line Items]
Notional amount | €				€ 12,305					€ 15,590
British Pounds
Derivative [Line Items]
Notional amount | £			£ 855				£ 2,605
Australian Dollar
Derivative [Line Items]
Notional amount | AUD		AUD 10,160				AUD 16,025
Indian Rupees
Derivative [Line Items]
Notional amount | ₨								₨ 303,500
United States of America, Dollars
Derivative [Line Items]
Notional amount | $	$ 14,705				$ 21,080

Change in Fair Value of Forward

Change in Fair Value of Forward Contracts (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loss from the change in the fair value of forward contracts included in other expense, net	$ (279)	$ (2,297)
Foreign currency transaction gain from the remeasurement of foreign currency assets and liabilities	676	1,376
Net gain (loss)	$ 397	$ (921)

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount of transfers between Level 1 and Level 2	$ 0		$ 0
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairments recognized on assets	$ 0	$ 0

Assets and Liabilities Measured

Assets and Liabilities Measured at Fair Value (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value Assets
Total marketable securities	$ 63,948	$ 63,167
Foreign currency forward contracts
Fair Value Liabilities
Foreign currency forward contracts	17	883
Fair Value Assets
Foreign currency forward contracts	90	628
Money Market Funds
Fair Value Assets
Money market funds	85	458
Municipal bonds
Fair Value Assets
Total marketable securities	36,921	36,607
Corporate bonds
Fair Value Assets
Total marketable securities	27,027	26,560
Level 1 | Money Market Funds
Fair Value Assets
Money market funds	85	458
Level 2
Fair Value Assets
Total marketable securities	63,948	63,167
Level 2 | Foreign currency forward contracts
Fair Value Liabilities
Foreign currency forward contracts	17	883
Fair Value Assets
Foreign currency forward contracts	90	628
Level 2 | Municipal bonds
Fair Value Assets
Total marketable securities	36,921	36,607
Level 2 | Corporate bonds
Fair Value Assets
Total marketable securities	$ 27,027	$ 26,560

Schedule of Trade Accounts Rece

Schedule of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 268,090	$ 269,154
Allowance for sales credit memos	(4,780)	(4,126)
Total accounts receivable net	263,310	265,028
Trade accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	230,213	234,473
Unbilled trade accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 37,877	$ 34,681

Changes in Carrying Amount of G

Changes in Carrying Amount of Goodwill (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Goodwill [Line Items]
Balance as of January 1,	$ 73,164
Purchase price adjustments to goodwill	(354)
Currency translation adjustments	18
Balance as of March 31,	$ 72,828

Schedule of Amortizable Intangi

Schedule of Amortizable Intangible Asset (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Goodwill and Other Intangible Assets [Line Items]
Cost	$ 127,403	$ 127,394
Accumulated Amortization	(86,405)	(83,203)
Net Book Value	40,998	44,191
Customer related intangibles
Goodwill and Other Intangible Assets [Line Items]
Cost	63,100	63,091
Accumulated Amortization	(39,441)	(37,573)
Net Book Value	23,659	25,518
Technology
Goodwill and Other Intangible Assets [Line Items]
Cost	58,942	58,942
Accumulated Amortization	(41,603)	(40,269)
Net Book Value	$ 17,339	$ 18,673
Other intangibles
Goodwill and Other Intangible Assets [Line Items]
Range of Useful Lives	3 years	3 years
Cost	$ 5,361	$ 5,361
Accumulated Amortization	$ (5,361)	$ (5,361)
Minimum | Customer related intangibles
Goodwill and Other Intangible Assets [Line Items]
Range of Useful Lives	4 years	4 years
Minimum | Technology
Goodwill and Other Intangible Assets [Line Items]
Range of Useful Lives	3 years	3 years
Maximum | Customer related intangibles
Goodwill and Other Intangible Assets [Line Items]
Range of Useful Lives	10 years	10 years
Maximum | Technology
Goodwill and Other Intangible Assets [Line Items]
Range of Useful Lives	10 years	10 years

Amortization Expense of Acquire

Amortization Expense of Acquired Intangibles (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 3,200	$ 2,965
Cost of revenue
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	1,334	1,346
Selling and marketing
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 1,866	1,530
General and administrative
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense		$ 89

Estimated Future Amortization E

Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Goodwill and Other Intangible Assets [Line Items]
Remainder of 2017	$ 9,129
2,018	11,337
2,019	5,545
2,020	2,649
2,021	2,626
2022 and thereafter	9,712
Net Book Value	$ 40,998	$ 44,191

Schedule of Accrued Expenses (D

Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accrued expenses
Partner commissions	$ 1,829	$ 2,199
Other taxes	7,418	9,031
Employee reimbursable expenses	2,280	1,624
Dividends payable	2,315	2,298
Professional services contractor fees	6,581	6,550
Self-insurance health and dental claims	2,324	2,182
Professional fees	3,783	3,654
Short-term deferred rent	1,839	1,770
Income taxes payable	1,168	1,391
Acquisition-related expenses and merger consideration		290
Restructuring	101	105
Marketing and sales program expenses	2,865	1,508
Foreign currency forward contracts	17	883
Fixed assets in progress	2,811	855
Other	3,214	2,411
Total accrued expenses	$ 38,545	$ 36,751

Schedule of Deferred Revenue (D

Schedule of Deferred Revenue (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Deferred Revenue Arrangement [Line Items]
Current deferred revenue	$ 186,824	$ 175,647
Long-term deferred revenue	9,958	10,989
Total deferred revenue	196,782	186,636
Term license
Deferred Revenue Arrangement [Line Items]
Current deferred revenue	10,056	15,843
Perpetual license
Deferred Revenue Arrangement [Line Items]
Current deferred revenue	25,240	23,189
Long-term deferred revenue	6,901	7,909
Maintenance
Deferred Revenue Arrangement [Line Items]
Current deferred revenue	122,628	112,397
Long-term deferred revenue	1,744	1,802
Cloud
Deferred Revenue Arrangement [Line Items]
Current deferred revenue	17,928	13,604
Long-term deferred revenue	1,313	1,278
Services
Deferred Revenue Arrangement [Line Items]
Current deferred revenue	$ 10,972	$ 10,614

Stock Based Compensation Expens

Stock Based Compensation Expense Included in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 12,508	$ 8,935
Income tax benefit	(3,815)	(2,605)
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	3,622	2,680
Operating Expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 8,886	$ 6,255

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense | $	$ 76.2
Weighted-average period of recognition of unrecognized stock-based compensation expense (in years)	2 years 2 months 12 days
Employees | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	564,000
Non-employee directors | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	9,000
Nonqualified Stock Options | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of shares granted | $	$ 18.9
Number of shares granted, options	1,414,000
RSUs | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted, RSUs	919,000
Fair value of shares granted | $	$ 40.3
RSUs granted in connection with the 2016 CICP	175,000
Percentage of target incentive compensation eligible to be elected and received by employees in the form of RSUs	50.00%
Restricted stock compensation expense | $	$ 7.7
Total stock-based compensation, period of recognition	1 year

Summary of Basic and Diluted Ea

Summary of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earning per share reconciliation
Net income	$ 27,021	$ 10,400
Weighted-average common shares outstanding	76,761	76,375
Earnings per share, basic	$ 0.35	$ 0.14
Net income	$ 27,021	$ 10,400
Weighted-average common shares outstanding	76,761	76,375
Effect of assumed exercise of stock options and RSUs	5,114	2,860
Weighted-average common shares outstanding, assuming dilution	81,875	79,235
Earnings per share, diluted	$ 0.33	$ 0.13
Outstanding options and RSUs excluded as impact would be antidilutive	314	492
Stock Options
Earning per share reconciliation
Weighted-average effect of dilutive securities	3,184	1,692
RSUs
Earning per share reconciliation
Weighted-average effect of dilutive securities	1,930	1,168

Geographic Information and Ma47

Geographic Information and Major Clients - Additional Information (Detail)	3 Months Ended		12 Months Ended
	Mar. 31, 2017CustomerSegmentUnit	Mar. 31, 2016	Dec. 31, 2016Customer
Geographic information and major clients
Number of reportable segment, customer engagement solutions | Segment	1
Number of reporting unit | Unit	1
Clients accounting for 10% or more of outstanding trade receivables	No client accounted for 10% or more of the Company's total outstanding trade receivables as of March 31, 2017 or December 31, 2016.
Number of clients representing 10% or more of Company's total outstanding trade receivables | Customer	0		0
Credit Concentration Risk | Total Revenue | Minimum
Geographic information and major clients
Concentration risk, percentage	10.00%	10.00%
Credit Concentration Risk | Trade Receivables | Minimum
Geographic information and major clients
Concentration risk, percentage	10.00%		10.00%

Revenue from International Clie

Revenue from International Clients by Geographic Areas (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Geographic revenue		$ 223,247	$ 178,858
Geographic revenue percentage		100.00%	100.00%
U.S.
Revenues from External Customers and Long-Lived Assets [Line Items]
Geographic revenue		$ 137,609	$ 93,228
Geographic revenue percentage		61.00%	52.00%
Other Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Geographic revenue		$ 9,491	$ 25,559
Geographic revenue percentage		4.00%	14.00%
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Geographic revenue		$ 30,190	$ 24,355
Geographic revenue percentage		14.00%	14.00%
Other EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Geographic revenue	[1]	$ 21,846	$ 21,267
Geographic revenue percentage	[1]	10.00%	12.00%
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Geographic revenue		$ 24,111	$ 14,449
Geographic revenue percentage		11.00%	8.00%
[1]	Includes Europe, the Middle East and Africa, but excludes the United Kingdom.

Total Revenue of Major Clients

Total Revenue of Major Clients (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue, Major Customer [Line Items]
Total revenue	$ 223,247	$ 178,858
Credit Concentration Risk | Total Revenue | Client A
Revenue, Major Customer [Line Items]
Concentration risk, percentage		10.00%