Pegasystems (PEGA) 10-Q 8 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 01, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
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		78,645,411

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	[1]	$ 144,291	$ 162,279
Marketable securities	[1]	99,292	61,469
Total cash, cash equivalents, and marketable securities	[1]	243,583	223,748
Accounts receivable	[1]	141,384	222,735
Unbilled receivables	[1]	151,354	158,898
Other current assets	[1]	63,864	41,135
Total current assets	[1]	600,185	646,516
Long-term unbilled receivables	[1]	169,330	160,708
Goodwill	[1]	72,911	72,952
Other long-term assets	[1]	130,614	131,391
Total assets	[1]	973,040	1,011,567
Current liabilities:
Accounts payable	[1]	14,411	17,370
Accrued expenses	[1]	44,882	45,508
Accrued compensation and related expenses	[1]	48,691	66,040
Deferred revenue	[1]	163,525	166,297
Total current liabilities	[1]	271,509	295,215
Deferred income tax liabilities	[1]	38,208	38,463
Other long-term liabilities	[1]	24,151	23,652
Total liabilities	[1]	333,868	357,330
Stockholders' equity:
Preferred stock, 1,000 shares authorized; no shares issued and outstanding	[1]
Common stock, 200,000 shares authorized; 78,748 and 78,081 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	[1]	787	781
Additional paid-in capital	[1]	141,400	152,097
Retained earnings	[1]	506,769	508,051
Accumulated other comprehensive loss	[1]	(9,784)	(6,692)
Total stockholders' equity	[1]	639,172	654,237
Total liabilities and stockholders' equity	[1]	$ 973,040	$ 1,011,567
[1]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares		Jun. 30, 2018	Dec. 31, 2017
Preferred stock, shares authorized	[1]	1,000,000	1,000,000
Preferred stock, shares issued	[1]	0	0
Preferred stock, shares outstanding	[1]	0	0
Common stock, shares authorized	[1]	200,000,000	200,000,000
Common stock, shares issued	[1]	78,748,000	78,081,000
Common stock, shares outstanding	[1]	78,748,000	78,081,000
[1]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue
Total revenue	[1]	$ 196,779	$ 186,596	$ 431,961	$ 442,905
Cost of revenue
Total cost of revenue	[1]	73,817	67,875	149,431	135,965
Gross profit	[1]	122,962	118,721	282,530	306,940
Operating expenses
Selling and marketing	[1]	93,972	75,200	182,355	144,881
Research and development	[1]	41,972	39,762	88,757	80,058
General and administrative	[1]	10,181	12,706	26,645	25,041
Total operating expenses	[1]	146,125	127,668	297,757	249,980
(Loss)/income from operations	[1]	(23,163)	(8,947)	(15,227)	56,960
Foreign currency transaction gain/(loss)	[1]	1,244	(2,242)	159	(1,497)
Interest income, net	[1]	629	202	1,393	407
Other income, net	[1]		566	363	287
(Loss)/income before (benefit) from income taxes	[1]	(21,290)	(10,421)	(13,312)	56,157
(Benefit) from income taxes	[1]	(10,881)	(14,123)	(15,103)	(508)
Net (loss)/income	[1]	$ (10,409)	$ 3,702	$ 1,791	$ 56,665
(Loss)/earnings per share
Basic	[1]	$ (0.13)	$ 0.05	$ 0.02	$ 0.74
Diluted	[1]	$ (0.13)	$ 0.04	$ 0.02	$ 0.69
Weighted-average number of common shares outstanding
Basic	[1]	78,635	77,313	78,436	77,039
Diluted	[1]	78,635	82,945	83,247	82,412
Cash dividends declared per share	[1]	$ 0.03	$ 0.03	$ 0.06	$ 0.06
Software license
Revenue
Total revenue	[1]	$ 44,784	$ 51,150	$ 132,557	$ 178,158
Cost of revenue
Total cost of revenue	[1]	1,262	1,250	2,517	2,550
Maintenance
Revenue
Total revenue	[1]	65,906	59,424	130,431	118,137
Cost of revenue
Total cost of revenue	[1]	5,874	7,011	11,956	14,229
Services
Revenue
Total revenue	[1]	86,089	76,022	168,973	146,610
Cost of revenue
Total cost of revenue	[1]	$ 66,681	$ 59,614	$ 134,958	$ 119,186
[1]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net (loss)/income	[1]	$ (10,409)	$ 3,702	$ 1,791	$ 56,665
Other comprehensive (loss)/income, net of tax
Unrealized gain/(loss) on available-for-sale marketable securities, net of tax	[1]	73	(1)	(115)	126
Foreign currency translation adjustments	[1]	(7,414)	4,043	(2,977)	6,272
Total other comprehensive (loss)/income, net of tax	[1]	(7,341)	4,042	(3,092)	6,398
Comprehensive (loss)/income	[1]	$ (17,750)	$ 7,744	$ (1,301)	$ 63,063
[1]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.

UNAUDITED CONDENSED CONSOLIDAT6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017
Operating activities:
Net income	[1]	$ 1,791	$ 56,665
Adjustments to reconcile net income to cash provided by operating activities:
Change in operating assets and liabilities, net	[1]	30,158	(14,874)
Stock-based compensation expense	[1]	31,165	26,440
Depreciation and amortization of intangible assets	[1]	12,474	12,356
Other non-cash	[1]	(156)	5,182
Cash provided by operating activities	[1]	75,432	85,769
Investing activities:
Purchases of investments	[1]	(51,395)	(16,656)
Proceeds from maturities and called investments	[1]	11,546	20,824
Other	[1]	(6,520)	(5,327)
Cash used in investing activities	[1]	(46,369)	(1,159)
Financing activities:
Dividend payments to shareholders	[1]	(4,702)	(4,613)
Common stock repurchases	[1]	(41,123)	(30,247)
Cash used in financing activities	[1]	(45,825)	(34,860)
Effect of exchange rates on cash and cash equivalents	[1]	(1,226)	1,282
Net (decrease)/increase in cash and cash equivalents	[1]	(17,988)	51,032
Cash and cash equivalents, beginning of period	[1]	162,279	70,594
Cash and cash equivalents, end of period	[1]	$ 144,291	$ 121,626
[1]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2018
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 On January 1, 2018 the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, 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 2018.

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2018
NEW ACCOUNTING PRONOUNCEMENTS	2. NEW ACCOUNTING PRONOUNCEMENTS Financial Instruments In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, available-for-sale Leases In February 2016, the FASB issued ASU No. 2016-02, right-of-use right-of-use ASC 606 and ASC 340-40 On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. The most significant impacts of adopting ASC 606 and ASC 340-40 • Perpetual licenses with extended payment terms and term licenses • Allocation of future credits and significant discounts • Deferred contract costs 340-40 • Taxes For additional information on the Company’s accounting policies as a result of the adoption of ASC 606 and ASC 340-40 The impact of the adoption ASC 606 and ASC 340-40 December 31, 2017 (in thousands) Previously reported Adjustments As adjusted Assets Accounts receivable, unbilled receivables, and contract assets $ 248,331 $ 134,216 $ 382,547 Long-term unbilled receivables — 160,708 160,708 Deferred income taxes 57,127 (42,887) 14,240 Deferred contract costs — 37,924 37,924 Other assets (1) 416,148 — 416,148 Total Assets $ 721,606 $ 289,961 $ 1,011,567 Liabilities and stockholders’ equity Deferred revenue $ 195,073 $ (28,776) $ 166,297 Long-term deferred revenue 6,591 (2,885) 3,706 Deferred income tax liabilities — 38,463 38,463 Other liabilities (2) 148,864 — 148,864 Total liabilities 350,528 6,802 357,330 Foreign currency translation adjustments (3,494) (2,966) (6,460) Retained earnings 221,926 286,125 508,051 Other equity (3) 152,646 — 152,646 Total stockholders’ equity 371,078 283,159 654,237 Total liabilities and stockholders’ equity $ 721,606 $ 289,961 $ 1,011,567 (1) Includes cash, cash equivalents, marketable securities, income taxes receivable, other current assets, property and equipment, intangible assets, goodwill, and other long-term assets (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K (2) Includes accounts payable, accrued expenses, accrued compensation and related expenses, income taxes payable, and other long-term liabilities (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K (3) Includes common stock, additional paid-in available-for-sale 10-K Three months ended June 30, 2017 Six months ended June 30, 2017 (in thousands, except per share amounts) Previously Adjustments As Adjusted Previously Adjustments As Adjusted Revenue: Software license $ 61,037 $ (9,887) $ 51,150 $ 153,427 $ 24,731 $ 178,158 Maintenance 59,590 (166) 59,424 118,555 (418) 118,137 Services 77,353 (1,331) 76,022 149,245 (2,635) 146,610 Total revenue 197,980 (11,384) 186,596 421,227 21,678 442,905 Cost of revenue: Software license 1,250 — 1,250 2,550 — 2,550 Maintenance 7,011 — 7,011 14,229 — 14,229 Services 59,614 — 59,614 119,186 — 119,186 Total cost of revenue 67,875 — 67,875 135,965 — 135,965 Gross profit 130,105 (11,384) 118,721 285,262 21,678 306,940 Operating expenses: Selling and marketing 75,887 (687) 75,200 147,175 (2,294) 144,881 Research and development 39,762 — 39,762 80,058 — 80,058 General and administrative 12,706 — 12,706 25,041 — 25,041 Total operating expenses 128,355 (687) 127,668 252,274 (2,294) 249,980 Income/(loss) from operations 1,750 (10,697) (8,947) 32,988 23,972 56,960 Foreign currency transaction loss (917) (1,325) (2,242) (241) (1,256) (1,497) Interest income, net 161 41 202 326 81 407 Other income, net 566 — 566 287 — 287 Income/(loss) before benefit from income taxes 1,560 (11,981) (10,421) 33,360 22,797 56,157 Benefit from income taxes (9,846) (4,277) (14,123) (5,067) 4,559 (508) Net income $ 11,406 $ (7,704) $ 3,702 $ 38,427 $ 18,238 $ 56,665 Earnings per share: Basic $ 0.15 $ 0.05 $ 0.50 $ 0.74 Diluted $ 0.14 $ 0.04 $ 0.47 $ 0.69 Weighted-average number of common shares outstanding: Basic 77,313 77,313 77,039 77,039 Diluted 82,945 82,945 82,412 82,412 Adoption of ASC 606 and ASC 340-40

MARKETABLE SECURITIES

MARKETABLE SECURITIES	6 Months Ended
	Jun. 30, 2018
MARKETABLE SECURITIES	3. MARKETABLE SECURITIES June 30, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 55,466 $ 20 $ (112) $ 55,374 Corporate bonds 44,258 2 (342) 43,918 $ 99,724 $ 22 $ (454) $ 99,292 December 31, 2017 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 32,996 $ — $ (148) $ 32,848 Corporate bonds 28,757 1 (137) 28,621 $ 61,753 $ 1 $ (285) $ 61,469 As of June 30, 2018, the Company did not hold any investments with unrealized losses that are considered to be other-than-temporary. As of June 30, 2018, remaining maturities of marketable securities ranged from July 2018 to August 2021, with a weighted-average remaining maturity of approximately 1.5 years.

RECEIVABLES, CONTRACT ASSETS, A

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE	6 Months Ended
	Jun. 30, 2018
RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE	4. RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE Receivables (in thousands) June 30, December 31, Accounts receivable $ 141,384 $ 222,735 Unbilled receivables 151,354 158,898 Long-term unbilled receivables 169,330 160,708 $ 462,068 $ 542,341 Unbilled receivables is the amount due from clients where the only condition on the right of payment is the passage of time. The Company regularly assesses receivables for collectability. As of June 30, 2018 and December 31, 2017, the allowance for doubtful accounts was not material. Unbilled receivables are expected to be billed in the future as follows: (in thousands) June 30, 1 Year or Less $ 151,354 1-2 79,654 2-5 89,676 $ 320,684 Contract assets and deferred revenue (in thousands) June 30, December 31, Contract assets (1) $ 2,425 $ 914 Long-term contract assets (2) 1,545 — $ 3,970 $ 914 Deferred revenue $ 163,525 $ 166,297 Long-term deferred revenue (3) 6,210 3,706 $ 169,735 $ 170,003 (1) (2) (3) Contract assets and deferred revenue are presented net at the contract level for each reporting period. Contract assets are amounts under client contracts where revenue recognized exceeds the amount billed to the client and the right to payment is subject to conditions other than the passage of time, such as the completion of a related performance obligation. Deferred revenue consists of billings and payments received in advance of revenue recognition. The change in deferred revenue in the six months ended June 30, 2018, was primarily due to new billings in advance of revenue recognition and $168.2 million of revenue recognized, excluding the impact of the netting of contract assets and deferred revenue, during the period that was included in deferred revenue at December 31, 2017. Major clients No client represented 10% or more of the Company’s total receivables as of June 30, 2018 or December 31, 2017.

DEFERRED CONTRACT COSTS

DEFERRED CONTRACT COSTS	6 Months Ended
	Jun. 30, 2018
DEFERRED CONTRACT COSTS	5. DEFERRED CONTRACT COSTS Sales incentives paid by the Company are considered incremental and recoverable costs of obtaining a contract with a client. These costs are deferred, as a long-term asset, and then amortized using the straight-line method over the period of benefit which is on average five years. The Company determined the period of benefit by taking into consideration client contracts, the Company’s technology, and other factors. The Company utilizes a practical expedient available under ASC 606 to expense costs to obtain a contract as incurred when the original amortization period is one year or less. (in thousands) June 30, 2018 December 31, 2017 Deferred contract costs (1) $ 42,246 $ 37,924 (1) Amortization of deferred contract costs was as follows: Three Months Ended Six Months Ended (in thousands) 2018 2017 2018 2017 Amortization of deferred contract costs (1) $ 3,809 $ 2,902 $ 7,598 $ 5,496 (1) During the six months ended June 30, 2018 and 2017, impairment of deferred contract costs was not material.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS	6. GOODWILL AND OTHER INTANGIBLE ASSETS The change in the carrying amount of goodwill was as follows: (in thousands) Six Months Ended June 30, 2018 Balance as of January 1, $ 72,952 Currency translation adjustments (41) Balance as of June 30, $ 72,911 Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful lives as follows: June 30, 2018 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 9-10 $ 63,143 $ (48,033) $ 15,110 Technology 7-10 58,942 (47,835) 11,107 Other intangibles — 5,361 (5,361) — $ 127,446 $ (101,229) $ 26,217 (1) December 31, 2017 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 9-10 years $ 63,164 $ (44,835) $ 18,329 Technology 7-10 58,942 (45,372) 13,570 Other intangibles — 5,361 (5,361) — $ 127,467 $ (95,568) $ 31,899 (1) Amortization of intangible assets is reflected in the Company’s unaudited condensed consolidated statements of operations as follows: (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cost of revenue $ 1,231 $ 1,305 $ 2,463 $ 2,639 Selling and marketing 1,605 1,869 3,210 3,735 $ 2,836 $ 3,174 $ 5,673 $ 6,374

ACCRUED EXPENSES

ACCRUED EXPENSES	6 Months Ended
	Jun. 30, 2018
ACCRUED EXPENSES	7. ACCRUED EXPENSES (in thousands) June 30, 2018 December 31, 2017 Outside professional services $ 10,143 $ 14,468 Income and other taxes 4,837 7,420 Marketing and sales program expenses 9,282 6,444 Dividends payable 2,365 2,344 Employee-related expenses 5,737 4,065 Other 12,518 10,767 $ 44,882 $ 45,508

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2018
FAIR VALUE MEASUREMENTS	8. FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company records its cash equivalents, marketable securities, and investments in privately-held companies at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants based on assumptions that market participants would use in pricing an asset or liability. As a basis for classifying the fair value measurements, a three-tier fair value hierarchy, which classifies the fair value measurements based on the inputs used in measuring fair value, was established as follows: • Level 1 - observable inputs such as quoted prices in active markets for identical assets or liabilities; • Level 2 - significant other inputs that are observable either directly or indirectly; and • Level 3 - significant unobservable inputs on which there is little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company’s cash equivalents are composed of money market funds and time deposits which are classified as Level 1 and Level 2, respectively, in the fair value hierarchy. The Company’s marketable securities, which are classified within Level 2 of the fair value hierarchy are valued based on a market approach using quoted prices, when available, or matrix pricing compiled by third party pricing vendors, using observable market inputs such as interest rates, yield curves, and credit risk. The Company’s investments in privately-held companies are classified within Level 3 of the fair value hierarchy and are valued using model-based techniques, including option pricing models and discounted cash flow models. If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. There were no transfers between levels during the six months ended June 30, 2018. The Company’s assets and liabilities measured at fair value on a recurring basis were as follows: June 30, 2018 Level 1 Level 2 Level 3 Total Cash equivalents $ 28 $ 32,009 $ — $ 32,037 Marketable securities: Municipal bonds — 55,374 — 55,374 Corporate bonds — 43,918 — 43,918 Total marketable securities — 99,292 — 99,292 Investments in privately-held companies (1) — — 2,060 2,060 (1) December 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 2,720 $ 40,051 $ — $ 42,771 Marketable securities: Municipal bonds — 32,848 — 32,848 Corporate bonds — 28,621 — 28,621 Total marketable securities — 61,469 — 61,469 Investments in privately-held companies (1) — — 1,030 1,030 (1) 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, including property and equipment and intangible assets, are recognized at fair value when they are impaired. During the six months ended June 30, 2018 and 2017, the Company did not recognize any impairments of its assets recorded at fair value on a nonrecurring basis.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2018
REVENUE	9. REVENUE Revenue policy The Company’s revenue is primarily derived from: • Software license revenue is primarily derived from sales of the Company’s software applications and Pega Platform. • Maintenance revenue includes revenue from client support including software upgrades, on a when and-if • Services revenue is primarily derived from cloud revenue, which is sales of the Company’s hosted Pega Platform and software application environments and consulting revenue which is primarily related to new license implementations. Contracts with multiple performance obligations The Company’s license and cloud arrangements often contain multiple performance obligations, including maintenance, consulting, and training. For contracts with multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative stand-alone selling price basis. If the transaction price contains discounts or the Company expects to provide a future price concession, these elements are considered when determining the transaction price prior to allocation. Variable fees within the transaction price are estimated and recognized in revenue as the Company satisfies each performance obligation to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable fee is resolved. If the contract grants the client the option to acquire additional products or services, the Company assesses whether or not any discount on the included products and services is in excess of levels normally available to similar clients and, if so, accounts for that discount as an additional performance obligation. Software licenses The Company has concluded that its software licenses are distinct performance obligations as the client can benefit from the software on its own. Software license revenue is typically recognized at a point in time when control is transferred to the client, which is defined as the point in time when the client can use and benefit from the license. The software license is delivered before related services are provided and is functional without services, updates, and technical support. Stand-alone selling price for software licenses is determined using the residual approach. The Company utilizes the residual approach as license performance obligations are sold for a broad range of amounts (the selling price is highly variable) and a stand-alone selling price is not discernible from past transactions or other observable evidence. Periodically, the Company evaluates whether the residual approach is appropriate for its license and cloud performance obligations when sold with other performance obligations. As a result, if the standalone selling price analysis illustrates that the license and cloud performance obligations are no longer highly variable, the Company will utilize the relative allocation method for such arrangements. Term license fees are usually payable in advance on a monthly, quarterly, or annual basis over the term of the license agreement, which is typically three to five years and may be renewed for additional terms at the client’s option. Perpetual license fees are usually payable when the contract is executed. Maintenance Software maintenance contracts entitle clients to receive technical support and software updates, on a when and if available basis, during the term of the maintenance contract. Technical support and software updates are considered distinct services but accounted for as a single performance obligation as they each constitute a series of distinct services that are substantially the same and have the same pattern of transfer to the client. Software maintenance revenue is recognized over time on a straight-line basis over the contract period. Maintenance fees are usually payable in advance on a monthly, quarterly, or annual basis over the term of the agreement. Each of the performance obligations included in maintenance are priced as a percentage of the selling price of the related software license, which is highly variable. The Company determined the standalone selling price of each performance obligation included in maintenance based on this pricing relationship, which has remained constant within a narrow range, and observable data from standalone sales of maintenance, along with all other observable data. Services The Company’s services revenue is comprised of consulting and training, including software license implementations, training, reimbursable expenses, and cloud which is derived from sales of the Company’s hosted Pega Platform and software application environments. The Company has concluded that most services are distinct performance obligations. Consulting may be provided on a stand-alone basis or bundled with license and software maintenance services. The stand-alone selling price for consulting in time and materials contracts is determined by observable prices in similar transactions without multiple performance obligations and recognized as revenue as the services are performed. Fees for time and materials consulting contracts are usually payable shortly after the service is provided. The Company estimates the stand-alone selling price for fixed price services based on the estimated hours versus actual hours in similar geographies and for similar contract sizes. Revenue for fixed price services is recognized over time as the services are provided. Fees for fixed price services consulting contracts are usually payable as contract milestones are achieved. The stand-alone selling price of cloud sales of production environments is determined based on the residual approach when sold with services and is recognized over the term of the service. The Company utilizes the residual approach as cloud performance obligations are sold for a broad range of amounts (the selling price is highly variable) and a stand-alone selling price is not discernible from past transactions or other observable evidence. The stand-alone selling price for cloud sales of development and testing environments is developed using observable prices in similar transactions without multiple performance obligations and is recognized over time over the term of the service. Cloud fees are usually payable in advance on a monthly, quarterly, or annual basis over the term of the service. Contract modifications The Company sometimes enters into amendments to previously executed contracts which constitute contract modifications. The Company assesses each of these contract modifications to determine: 1. If the additional products and services are distinct from the products and services in the original arrangement, and 2. If the amount of consideration expected for the added products and services reflects the stand-alone selling price of those products and services. A contract modification meeting both criteria is accounted for as a separate contract. A contract modification not meeting both criteria is considered a change to the original contract and is accounted for on either: 1. a prospective basis as a termination of the existing contract and the creation of a new contract; or 2. a cumulative catch-up Geographic revenue Three Months Ended Six Months Ended (in thousands) 2018 2017 2018 2017 U.S. $ 110,349 55% $ 102,098 55% $ 224,334 52% $ 271,760 62% Other Americas 9,627 5% 13,177 7% 27,342 6% 23,583 5% United Kingdom (“U.K.”) 23,079 12% 22,524 12% 49,173 11% 48,866 11% Europe (excluding U.K.), Middle East, and Africa 27,070 14% 26,237 14% 58,896 14% 50,448 11% Asia-Pacific 26,654 14% 22,560 12% 72,216 17% 48,248 11% Total revenue $ 196,779 100% $ 186,596 100% $ 431,961 100% $ 442,905 100% Major products and services Three Months Ended Six Months Ended (in thousands) 2018 2017 2018 2017 Perpetual license $ 13,475 $ 31,297 $ 36,553 $ 69,196 Term license 31,309 19,853 96,004 108,962 Revenue recognized at a point in time 44,784 51,150 132,557 178,158 Maintenance 65,906 59,424 130,431 118,137 Cloud 20,201 12,525 35,783 22,927 Consulting and training 65,888 63,497 133,190 123,683 Revenue recognized over time 151,995 135,446 299,404 264,747 Total revenue $ 196,779 $ 186,596 $ 431,961 $ 442,905 During the six months ended June 30, 2018 and 2017, there were no material changes in the Company’s estimate of variable fees. Committed not yet recognized revenue Committed not recognized revenue represents contracted revenue that has not yet been recognized in revenue. Committed not recognized revenue is expected to be recognized in the future as follows: (in thousands) June 30, Remainder of 2018 $ 213,244 2019 140,209 2020 63,603 2021 and thereafter 59,604 $ 476,660 For reporting periods prior to January 1, 2018, the date of initial adoption of ASC 606, the Company has elected the practical expedient and not compiled and disclosed the amount of the transaction price allocated to the remaining performance obligations. Major clients Clients accounting for 10% or more of the Company’s total revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Total revenue $ 196,779 $ 186,596 $ 431,961 $ 442,905 Client A * 11% * * *Client accounted for less than 10% of total revenue.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2018
STOCK-BASED COMPENSATION	10. STOCK-BASED COMPENSATION Expense Three Months Ended Six Months Ended (in thousands) 2018 2017 2018 2017 Cost of revenues $ 4,257 $ 3,677 $ 7,958 $ 7,299 Selling and marketing 6,038 4,101 10,696 7,506 Research and development 3,802 3,575 7,439 6,887 General and administrative 1,959 2,579 5,072 4,748 $ 16,056 $ 13,932 $ 31,165 $ 26,440 Income tax benefit $ (3,341) $ (4,287) $ (6,482) $ (8,102) The Company recognizes stock-based compensation using the accelerated recognition method, treating each vesting tranche as if it were an individual grant. As of June 30, 2018, the Company had, net of estimated forfeitures, $79.7 million of unrecognized stock-based compensation expense, related to all unvested restricted stock units (“RSUs”) and stock options, which was expected to be recognized over a weighted-average period of 2.2 years. Grants The Company granted the following stock-based compensation awards: Six Months Ended June 30, (in thousands) Shares Total Fair Value RSUs (1) 931 $ 54,100 Non-qualified 1,446 $ 26,000 (1) Includes approximately 0.1 million RSUs which were granted in connection with the election by certain employees to receive 50% of their 2018 target incentive compensation under the Company’s Corporate Incentive Compensation Plan in the form of RSUs instead of cash. Stock-based compensation of approximately $8.2 million associated with this RSU grant is expected to be recognized over a one-year RSU vestings and stock option exercises During the six months ended June 30, 2018, 0.9 million shares of common stock were issued due to stock option exercises and RSU vestings under the Company’s stock-based compensation plans.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2018
INCOME TAXES	11. INCOME TAXES Effective income tax rate The Company computes its benefit from income taxes by applying the estimated annual effective income tax rate to year to date (loss)/income before benefit from income taxes and adjusts for discrete tax items recorded in the period. Six Months Ended (Dollars in thousands) 2018 2017 (Benefit) from income taxes $ (15,103) $ (508) Effective income tax rate 113% (1)% During the six months ended June 30, 2018, the Company’s effective tax rate changed primarily due to the following factors: • excess tax benefits from stock-based compensation were disproportionately greater relative to the (loss)/income before benefit from income taxes; • a decrease in the estimated annual effective income tax rate primarily due to the reduction of the U.S. statutory federal tax rate from 35% to 21% pursuant to the Tax Reform Act; • an increase in U.S. research and development tax credits; and • a decrease in uncertain tax benefits as a result of the settlement of a foreign tax audit for 2012, 2013, 2014, and 2015. Tax reform act On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Tax Reform Act”) was enacted into law, which significantly changed U.S. tax law and included many provisions, such as a reduction of the U.S. federal statutory tax rate, imposed a one-time low-taxed Under the SEC Staff Accounting Bulletin No. 118 (“SAB 118”), the Company recognized the provisional tax impacts in the three months ended December 31, 2017 that included $20.4 million of income tax expense to re-measure The final amounts may differ from those provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Reform Act. The Tax Reform Act also provided for a one-time one-time The Tax Reform Act provides the following new anti-abuse provisions beginning in 2018: • The GILTI provisions require the Company to include in its U.S. income tax base foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The Company expects that it will be subject to incremental U.S. tax resulting from GILTI inclusions beginning in 2018. As of June 30, 2018, the Company has included an estimate of the effect of its GILTI provisions in its estimated annual effective tax rate. The Company continues to monitor IRS guidance and will update its estimates as guidance is issued. • The BEAT provisions in the Tax Reform Act impose an alternative minimum tax on taxpayers with substantial base-erosion payments. The Company’s preliminary assessment is that the Company will not be subject to the BEAT in 2018. The Company continues to monitor IRS guidance and will update its estimates as guidance is issued.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2018
EARNINGS PER SHARE	12. EARNINGS PER SHARE Basic earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period, plus the dilutive effect of outstanding stock options and RSUs, using the treasury stock method. In periods of loss, all stock options and RSUs are excluded, as their inclusion would be anti-dilutive. The calculation of the basic and diluted earnings per share is as follows: Three Months Ended Six Months Ended (in thousands, except per share amounts) 2018 2017 2018 2017 Basic Net (loss)/income $ (10,409) $ 3,702 $ 1,791 $ 56,665 Weighted-average common shares outstanding 78,635 77,313 78,436 77,039 (Loss)/earnings per share, basic $ (0.13) $ 0.05 $ 0.02 $ 0.74 Diluted Net (loss)/income $ (10,409) $ 3,702 $ 1,791 $ 56,665 Weighted-average effect of dilutive securities: Stock options — 3,694 3,132 3,439 RSUs — 1,938 1,679 1,934 Effect of dilutive securities — 5,632 4,811 5,373 Weighted-average common shares outstanding, assuming dilution 78,635 82,945 83,247 82,412 (Loss)/earnings per share, diluted $ (0.13) $ 0.04 $ 0.02 $ 0.69 Outstanding anti-dilutive stock options and RSUs (1) 6,500 237 242 276 (1) Certain outstanding stock options and RSUs were excluded from the computation of diluted earnings per share because they were anti-dilutive in the period presented. These awards may be dilutive in the future.

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Deferred Contract Cost	Sales incentives paid by the Company are considered incremental and recoverable costs of obtaining a contract with a client. These costs are deferred, as a long-term asset, and then amortized using the straight-line method over the period of benefit which is on average five years. The Company determined the period of benefit by taking into consideration client contracts, the Company’s technology, and other factors. The Company utilizes a practical expedient available under ASC 606 to expense costs to obtain a contract as incurred when the original amortization period is one year or less.
Revenue	Revenue policy The Company’s revenue is primarily derived from: • Software license revenue is primarily derived from sales of the Company’s software applications and Pega Platform. • Maintenance revenue includes revenue from client support including software upgrades, on a when and-if • Services revenue is primarily derived from cloud revenue, which is sales of the Company’s hosted Pega Platform and software application environments and consulting revenue which is primarily related to new license implementations. Contracts with multiple performance obligations The Company’s license and cloud arrangements often contain multiple performance obligations, including maintenance, consulting, and training. For contracts with multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative stand-alone selling price basis. If the transaction price contains discounts or the Company expects to provide a future price concession, these elements are considered when determining the transaction price prior to allocation. Variable fees within the transaction price are estimated and recognized in revenue as the Company satisfies each performance obligation to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable fee is resolved. If the contract grants the client the option to acquire additional products or services, the Company assesses whether or not any discount on the included products and services is in excess of levels normally available to similar clients and, if so, accounts for that discount as an additional performance obligation. Software licenses The Company has concluded that its software licenses are distinct performance obligations as the client can benefit from the software on its own. Software license revenue is typically recognized at a point in time when control is transferred to the client, which is defined as the point in time when the client can use and benefit from the license. The software license is delivered before related services are provided and is functional without services, updates, and technical support. Stand-alone selling price for software licenses is determined using the residual approach. The Company utilizes the residual approach as license performance obligations are sold for a broad range of amounts (the selling price is highly variable) and a stand-alone selling price is not discernible from past transactions or other observable evidence. Periodically, the Company evaluates whether the residual approach is appropriate for its license and cloud performance obligations when sold with other performance obligations. As a result, if the standalone selling price analysis illustrates that the license and cloud performance obligations are no longer highly variable, the Company will utilize the relative allocation method for such arrangements. Term license fees are usually payable in advance on a monthly, quarterly, or annual basis over the term of the license agreement, which is typically three to five years and may be renewed for additional terms at the client’s option. Perpetual license fees are usually payable when the contract is executed. Maintenance Software maintenance contracts entitle clients to receive technical support and software updates, on a when and if available basis, during the term of the maintenance contract. Technical support and software updates are considered distinct services but accounted for as a single performance obligation as they each constitute a series of distinct services that are substantially the same and have the same pattern of transfer to the client. Software maintenance revenue is recognized over time on a straight-line basis over the contract period. Maintenance fees are usually payable in advance on a monthly, quarterly, or annual basis over the term of the agreement. Each of the performance obligations included in maintenance are priced as a percentage of the selling price of the related software license, which is highly variable. The Company determined the standalone selling price of each performance obligation included in maintenance based on this pricing relationship, which has remained constant within a narrow range, and observable data from standalone sales of maintenance, along with all other observable data. Services The Company’s services revenue is comprised of consulting and training, including software license implementations, training, reimbursable expenses, and cloud which is derived from sales of the Company’s hosted Pega Platform and software application environments. The Company has concluded that most services are distinct performance obligations. Consulting may be provided on a stand-alone basis or bundled with license and software maintenance services. The stand-alone selling price for consulting in time and materials contracts is determined by observable prices in similar transactions without multiple performance obligations and recognized as revenue as the services are performed. Fees for time and materials consulting contracts are usually payable shortly after the service is provided. The Company estimates the stand-alone selling price for fixed price services based on the estimated hours versus actual hours in similar geographies and for similar contract sizes. Revenue for fixed price services is recognized over time as the services are provided. Fees for fixed price services consulting contracts are usually payable as contract milestones are achieved. The stand-alone selling price of cloud sales of production environments is determined based on the residual approach when sold with services and is recognized over the term of the service. The Company utilizes the residual approach as cloud performance obligations are sold for a broad range of amounts (the selling price is highly variable) and a stand-alone selling price is not discernible from past transactions or other observable evidence. The stand-alone selling price for cloud sales of development and testing environments is developed using observable prices in similar transactions without multiple performance obligations and is recognized over time over the term of the service. Cloud fees are usually payable in advance on a monthly, quarterly, or annual basis over the term of the service. Contract modifications The Company sometimes enters into amendments to previously executed contracts which constitute contract modifications. The Company assesses each of these contract modifications to determine: 1. If the additional products and services are distinct from the products and services in the original arrangement, and 2. If the amount of consideration expected for the added products and services reflects the stand-alone selling price of those products and services. A contract modification meeting both criteria is accounted for as a separate contract. A contract modification not meeting both criteria is considered a change to the original contract and is accounted for on either: 1. a prospective basis as a termination of the existing contract and the creation of a new contract; or 2. a cumulative catch-up

NEW ACCOUNTING PRONOUNCEMENTS (

NEW ACCOUNTING PRONOUNCEMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Standards Update 2014-09
Summary of Impact of Adoption of ASU 606	The impact of the adoption ASC 606 and ASC 340-40 December 31, 2017 (in thousands) Previously reported Adjustments As adjusted Assets Accounts receivable, unbilled receivables, and contract assets $ 248,331 $ 134,216 $ 382,547 Long-term unbilled receivables — 160,708 160,708 Deferred income taxes 57,127 (42,887) 14,240 Deferred contract costs — 37,924 37,924 Other assets (1) 416,148 — 416,148 Total Assets $ 721,606 $ 289,961 $ 1,011,567 Liabilities and stockholders’ equity Deferred revenue $ 195,073 $ (28,776) $ 166,297 Long-term deferred revenue 6,591 (2,885) 3,706 Deferred income tax liabilities — 38,463 38,463 Other liabilities (2) 148,864 — 148,864 Total liabilities 350,528 6,802 357,330 Foreign currency translation adjustments (3,494) (2,966) (6,460) Retained earnings 221,926 286,125 508,051 Other equity (3) 152,646 — 152,646 Total stockholders’ equity 371,078 283,159 654,237 Total liabilities and stockholders’ equity $ 721,606 $ 289,961 $ 1,011,567 (1) Includes cash, cash equivalents, marketable securities, income taxes receivable, other current assets, property and equipment, intangible assets, goodwill, and other long-term assets (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K (2) Includes accounts payable, accrued expenses, accrued compensation and related expenses, income taxes payable, and other long-term liabilities (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K (3) Includes common stock, additional paid-in available-for-sale 10-K Three months ended June 30, 2017 Six months ended June 30, 2017 (in thousands, except per share amounts) Previously Adjustments As Adjusted Previously Adjustments As Adjusted Revenue: Software license $ 61,037 $ (9,887) $ 51,150 $ 153,427 $ 24,731 $ 178,158 Maintenance 59,590 (166) 59,424 118,555 (418) 118,137 Services 77,353 (1,331) 76,022 149,245 (2,635) 146,610 Total revenue 197,980 (11,384) 186,596 421,227 21,678 442,905 Cost of revenue: Software license 1,250 — 1,250 2,550 — 2,550 Maintenance 7,011 — 7,011 14,229 — 14,229 Services 59,614 — 59,614 119,186 — 119,186 Total cost of revenue 67,875 — 67,875 135,965 — 135,965 Gross profit 130,105 (11,384) 118,721 285,262 21,678 306,940 Operating expenses: Selling and marketing 75,887 (687) 75,200 147,175 (2,294) 144,881 Research and development 39,762 — 39,762 80,058 — 80,058 General and administrative 12,706 — 12,706 25,041 — 25,041 Total operating expenses 128,355 (687) 127,668 252,274 (2,294) 249,980 Income/(loss) from operations 1,750 (10,697) (8,947) 32,988 23,972 56,960 Foreign currency transaction loss (917) (1,325) (2,242) (241) (1,256) (1,497) Interest income, net 161 41 202 326 81 407 Other income, net 566 — 566 287 — 287 Income/(loss) before benefit from income taxes 1,560 (11,981) (10,421) 33,360 22,797 56,157 Benefit from income taxes (9,846) (4,277) (14,123) (5,067) 4,559 (508) Net income $ 11,406 $ (7,704) $ 3,702 $ 38,427 $ 18,238 $ 56,665 Earnings per share: Basic $ 0.15 $ 0.05 $ 0.50 $ 0.74 Diluted $ 0.14 $ 0.04 $ 0.47 $ 0.69 Weighted-average number of common shares outstanding: Basic 77,313 77,313 77,039 77,039 Diluted 82,945 82,945 82,412 82,412

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule of Marketable Securities	June 30, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 55,466 $ 20 $ (112) $ 55,374 Corporate bonds 44,258 2 (342) 43,918 $ 99,724 $ 22 $ (454) $ 99,292 December 31, 2017 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 32,996 $ — $ (148) $ 32,848 Corporate bonds 28,757 1 (137) 28,621 $ 61,753 $ 1 $ (285) $ 61,469

RECEIVABLES, CONTRACT ASSETS,22

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE (Tables)	6 Months Ended
	Jun. 30, 2018
Summary of Receivable	Receivables (in thousands) June 30, December 31, Accounts receivable $ 141,384 $ 222,735 Unbilled receivables 151,354 158,898 Long-term unbilled receivables 169,330 160,708 $ 462,068 $ 542,341
Summary of Unbilled Receivables	Unbilled receivables are expected to be billed in the future as follows: (in thousands) June 30, 1 Year or Less $ 151,354 1-2 79,654 2-5 89,676 $ 320,684
Summary of Contract Assets and Deferred Revenue	Contract assets and deferred revenue (in thousands) June 30, December 31, Contract assets (1) $ 2,425 $ 914 Long-term contract assets (2) 1,545 — $ 3,970 $ 914 Deferred revenue $ 163,525 $ 166,297 Long-term deferred revenue (3) 6,210 3,706 $ 169,735 $ 170,003 (1) (2) (3)

DEFERRED CONTRACT COSTS (Tables

DEFERRED CONTRACT COSTS (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule of Impairment of Deferred Contract Costs	During the six months ended June 30, 2018 and 2017, impairment of deferred contract costs was not material. (in thousands) June 30, December 31, Deferred contract costs (1) $ 42,246 $ 37,924 (1) Included in other long-term assets in the unaudited condensed consolidated balance sheets.
Schedule of amortization of deferred contract costs	Amortization of deferred contract costs was as follows: Three Months Ended Six Months Ended (in thousands) 2018 2017 2018 2017 Amortization of deferred contract costs (1) $ 3,809 $ 2,902 $ 7,598 $ 5,496 (1)

GOODWILL AND OTHER INTANGIBLE24

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2018
Change in Carrying Amount of Goodwill	The change in the carrying amount of goodwill was as follows: (in thousands) Six Months Ended June 30, 2018 Balance as of January 1, $ 72,952 Currency translation adjustments (41) Balance as of June 30, $ 72,911
Schedule of Amortizable Intangible Assets	Intangible assets are recorded at cost and are amortized using the straight-line method over their estimated useful lives as follows: June 30, 2018 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 9-10 $ 63,143 $ (48,033) $ 15,110 Technology 7-10 58,942 (47,835) 11,107 Other intangibles — 5,361 (5,361) — $ 127,446 $ (101,229) $ 26,217 (1) December 31, 2017 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 9-10 years $ 63,164 $ (44,835) $ 18,329 Technology 7-10 58,942 (45,372) 13,570 Other intangibles — 5,361 (5,361) — $ 127,467 $ (95,568) $ 31,899 (1)
Amortization of Intangible Assets	Amortization of intangible assets is reflected in the Company’s unaudited condensed consolidated statements of operations as follows: (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cost of revenue $ 1,231 $ 1,305 $ 2,463 $ 2,639 Selling and marketing 1,605 1,869 3,210 3,735 $ 2,836 $ 3,174 $ 5,673 $ 6,374

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule of Accrued Expenses	(in thousands) June 30, 2018 December 31, 2017 Outside professional services $ 10,143 $ 14,468 Income and other taxes 4,837 7,420 Marketing and sales program expenses 9,282 6,444 Dividends payable 2,365 2,344 Employee-related expenses 5,737 4,065 Other 12,518 10,767 $ 44,882 $ 45,508

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Assets and Liabilities Measured at Fair Value	The Company’s assets and liabilities measured at fair value on a recurring basis were as follows: June 30, 2018 Level 1 Level 2 Level 3 Total Cash equivalents $ 28 $ 32,009 $ — $ 32,037 Marketable securities: Municipal bonds — 55,374 — 55,374 Corporate bonds — 43,918 — 43,918 Total marketable securities — 99,292 — 99,292 Investments in privately-held companies (1) — — 2,060 2,060 (1) December 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 2,720 $ 40,051 $ — $ 42,771 Marketable securities: Municipal bonds — 32,848 — 32,848 Corporate bonds — 28,621 — 28,621 Total marketable securities — 61,469 — 61,469 Investments in privately-held companies (1) — — 1,030 1,030 (1)

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2018
Disaggregation of Revenue	Geographic revenue Three Months Ended Six Months Ended (in thousands) 2018 2017 2018 2017 U.S. $ 110,349 55% $ 102,098 55% $ 224,334 52% $ 271,760 62% Other Americas 9,627 5% 13,177 7% 27,342 6% 23,583 5% United Kingdom (“U.K.”) 23,079 12% 22,524 12% 49,173 11% 48,866 11% Europe (excluding U.K.), Middle East, and Africa 27,070 14% 26,237 14% 58,896 14% 50,448 11% Asia-Pacific 26,654 14% 22,560 12% 72,216 17% 48,248 11% Total revenue $ 196,779 100% $ 186,596 100% $ 431,961 100% $ 442,905 100% Major products and services Three Months Ended Six Months Ended (in thousands) 2018 2017 2018 2017 Perpetual license $ 13,475 $ 31,297 $ 36,553 $ 69,196 Term license 31,309 19,853 96,004 108,962 Revenue recognized at a point in time 44,784 51,150 132,557 178,158 Maintenance 65,906 59,424 130,431 118,137 Cloud 20,201 12,525 35,783 22,927 Consulting and training 65,888 63,497 133,190 123,683 Revenue recognized over time 151,995 135,446 299,404 264,747 Total revenue $ 196,779 $ 186,596 $ 431,961 $ 442,905
Committed Not Recognized Revenue Expected to be Recognized	Committed not recognized revenue is expected to be recognized in the future as follows: (in thousands) June 30, Remainder of 2018 $ 213,244 2019 140,209 2020 63,603 2021 and thereafter 59,604 $ 476,660
Total Revenue of Major Clients	Clients accounting for 10% or more of the Company’s total revenue were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2018 2017 2018 2017 Total revenue $ 196,779 $ 186,596 $ 431,961 $ 442,905 Client A * 11% * * *Client accounted for less than 10% of total revenue.

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2018
Summary of Stock Based Compensation Expense	Expense Three Months Ended Six Months Ended (in thousands) 2018 2017 2018 2017 Cost of revenues $ 4,257 $ 3,677 $ 7,958 $ 7,299 Selling and marketing 6,038 4,101 10,696 7,506 Research and development 3,802 3,575 7,439 6,887 General and administrative 1,959 2,579 5,072 4,748 $ 16,056 $ 13,932 $ 31,165 $ 26,440 Income tax benefit $ (3,341) $ (4,287) $ (6,482) $ (8,102)
Summary of stock based compensation award granted	Grants The Company granted the following stock-based compensation awards: Six Months Ended June 30, (in thousands) Shares Total Fair Value RSUs (1) 931 $ 54,100 Non-qualified 1,446 $ 26,000 (1) Includes approximately 0.1 million RSUs which were granted in connection with the election by certain employees to receive 50% of their 2018 target incentive compensation under the Company’s Corporate Incentive Compensation Plan in the form of RSUs instead of cash. Stock-based compensation of approximately $8.2 million associated with this RSU grant is expected to be recognized over a one-year

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2018
Summary of Benefit from Income Taxes and Discrete Tax Items	The Company computes its benefit from income taxes by applying the estimated annual effective income tax rate to year to date (loss)/income before benefit from income taxes and adjusts for discrete tax items recorded in the period. Six Months Ended (Dollars in thousands) 2018 2017 (Benefit) from income taxes $ (15,103) $ (508) Effective income tax rate 113% (1)%

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
Summary of Basic and Diluted Earnings Per Share	The calculation of the basic and diluted earnings per share is as follows: Three Months Ended Six Months Ended (in thousands, except per share amounts) 2018 2017 2018 2017 Basic Net (loss)/income $ (10,409) $ 3,702 $ 1,791 $ 56,665 Weighted-average common shares outstanding 78,635 77,313 78,436 77,039 (Loss)/earnings per share, basic $ (0.13) $ 0.05 $ 0.02 $ 0.74 Diluted Net (loss)/income $ (10,409) $ 3,702 $ 1,791 $ 56,665 Weighted-average effect of dilutive securities: Stock options — 3,694 3,132 3,439 RSUs — 1,938 1,679 1,934 Effect of dilutive securities — 5,632 4,811 5,373 Weighted-average common shares outstanding, assuming dilution 78,635 82,945 83,247 82,412 (Loss)/earnings per share, diluted $ (0.13) $ 0.04 $ 0.02 $ 0.69 Outstanding anti-dilutive stock options and RSUs (1) 6,500 237 242 276 (1) Certain outstanding stock options and RSUs were excluded from the computation of diluted earnings per share because they were anti-dilutive in the period presented. These awards may be dilutive in the future.

Summary of Impact of Adoption o

Summary of Impact of Adoption of ASU 606 (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Assets
Accounts receivable, unbilled receivables, and contract assets						$ 382,547
Long-term unbilled receivables	[1]	$ 169,330		$ 169,330		160,708
Deferred income taxes						14,240
Deferred contract costs						37,924
Other assets	[2]					416,148
Total assets	[1]	973,040		973,040		1,011,567
Liabilities and stockholders' equity
Deferred revenue	[1]	163,525		163,525		166,297
Long-term deferred revenue	[3]	6,210		6,210		3,706
Deferred income tax liabilities	[1]	38,208		38,208		38,463
Other liabilities	[4]					148,864
Total liabilities	[1]	333,868		333,868		357,330
Foreign currency translation adjustments						(6,460)
Retained earnings	[1]	506,769		506,769		508,051
Other equity	[5]					152,646
Total stockholders' equity	[1]	639,172		639,172		654,237
Total liabilities and stockholders' equity	[1]	973,040		973,040		1,011,567
Revenue:
Total revenue	[1]	196,779	$ 186,596	431,961	$ 442,905
Cost of revenue:
Total cost of revenue	[1]	73,817	67,875	149,431	135,965
Gross profit	[1]	122,962	118,721	282,530	306,940
Operating expenses:
Selling and marketing	[1]	93,972	75,200	182,355	144,881
Research and development	[1]	41,972	39,762	88,757	80,058
General and administrative	[1]	10,181	12,706	26,645	25,041
Total operating expenses	[1]	146,125	127,668	297,757	249,980
Income/(loss) from operations	[1]	(23,163)	(8,947)	(15,227)	56,960
Foreign currency transaction loss	[1]	1,244	(2,242)	159	(1,497)
Interest income, net	[1]	629	202	1,393	407
Other income, net	[1]		566	363	287
Income/(loss) before benefit from income taxes	[1]	(21,290)	(10,421)	(13,312)	56,157
Benefit from income taxes	[1]	(10,881)	(14,123)	(15,103)	(508)
Net income	[1]	$ (10,409)	$ 3,702	$ 1,791	$ 56,665
Earnings per share:
Basic	[1]	$ (0.13)	$ 0.05	$ 0.02	$ 0.74
Diluted	[1]	$ (0.13)	$ 0.04	$ 0.02	$ 0.69
Weighted-average number of common shares outstanding:
Basic	[1]	78,635	77,313	78,436	77,039
Diluted	[1]	78,635	82,945	83,247	82,412
Software license
Revenue:
Total revenue	[1]	$ 44,784	$ 51,150	$ 132,557	$ 178,158
Cost of revenue:
Total cost of revenue	[1]	1,262	1,250	2,517	2,550
Maintenance
Revenue:
Total revenue	[1]	65,906	59,424	130,431	118,137
Cost of revenue:
Total cost of revenue	[1]	5,874	7,011	11,956	14,229
Services
Revenue:
Total revenue	[1]	86,089	76,022	168,973	146,610
Cost of revenue:
Total cost of revenue	[1]	$ 66,681	59,614	$ 134,958	119,186
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09
Assets
Accounts receivable, unbilled receivables, and contract assets						248,331
Deferred income taxes						57,127
Other assets	[2]					416,148
Total assets						721,606
Liabilities and stockholders' equity
Deferred revenue						195,073
Long-term deferred revenue						6,591
Other liabilities	[4]					148,864
Total liabilities						350,528
Foreign currency translation adjustments						(3,494)
Retained earnings						221,926
Other equity	[5]					152,646
Total stockholders' equity						371,078
Total liabilities and stockholders' equity						721,606
Revenue:
Total revenue			197,980		421,227
Cost of revenue:
Total cost of revenue			67,875		135,965
Gross profit			130,105		285,262
Operating expenses:
Selling and marketing			75,887		147,175
Research and development			39,762		80,058
General and administrative			12,706		25,041
Total operating expenses			128,355		252,274
Income/(loss) from operations			1,750		32,988
Foreign currency transaction loss			(917)		(241)
Interest income, net			161		326
Other income, net			566		287
Income/(loss) before benefit from income taxes			1,560		33,360
Benefit from income taxes			(9,846)		(5,067)
Net income			$ 11,406		$ 38,427
Earnings per share:
Basic			$ 0.15		$ 0.50
Diluted			$ 0.14		$ 0.47
Weighted-average number of common shares outstanding:
Basic			77,313		77,039
Diluted			82,945		82,412
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 | Software license
Revenue:
Total revenue			$ 61,037		$ 153,427
Cost of revenue:
Total cost of revenue			1,250		2,550
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 | Maintenance
Revenue:
Total revenue			59,590		118,555
Cost of revenue:
Total cost of revenue			7,011		14,229
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 | Services
Revenue:
Total revenue			77,353		149,245
Cost of revenue:
Total cost of revenue			59,614		119,186
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09
Assets
Accounts receivable, unbilled receivables, and contract assets						134,216
Long-term unbilled receivables						160,708
Deferred income taxes						(42,887)
Deferred contract costs						37,924
Total assets						289,961
Liabilities and stockholders' equity
Deferred revenue						(28,776)
Long-term deferred revenue						(2,885)
Deferred income tax liabilities						38,463
Total liabilities						6,802
Foreign currency translation adjustments						(2,966)
Retained earnings						286,125
Total stockholders' equity						283,159
Total liabilities and stockholders' equity						$ 289,961
Revenue:
Total revenue			(11,384)		21,678
Cost of revenue:
Gross profit			(11,384)		21,678
Operating expenses:
Selling and marketing			(687)		(2,294)
Total operating expenses			(687)		(2,294)
Income/(loss) from operations			(10,697)		23,972
Foreign currency transaction loss			(1,325)		(1,256)
Interest income, net			41		81
Income/(loss) before benefit from income taxes			(11,981)		22,797
Benefit from income taxes			(4,277)		4,559
Net income			(7,704)		18,238
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | Software license
Revenue:
Total revenue			(9,887)		24,731
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | Maintenance
Revenue:
Total revenue			(166)		(418)
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | Services
Revenue:
Total revenue			$ (1,331)		$ (2,635)
[1]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.
[2]	Includes cash, cash equivalents, marketable securities, income taxes receivable, other current assets, property and equipment, intangible assets, goodwill, and other long-term assets (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K for the year ended December 31, 2017).
[3]	Included in other long-term liabilities in the unaudited condensed consolidated balance sheets.
[4]	Includes accounts payable, accrued expenses, accrued compensation and related expenses, income taxes payable, and other long-term liabilities (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K for the year ended December 31, 2017).
[5]	Includes common stock, additional paid-in capital, and net unrealized loss on available-for-sale marketable securities (as reflected in the consolidated balance sheets in the Annual Report on Form 10-K for the year ended December 31, 2017).

Schedule of Marketable Securiti

Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		$ 99,724	$ 61,753
Unrealized Gains		22	1
Unrealized Losses		(454)	(285)
Fair Value	[1]	99,292	61,469
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		55,466	32,996
Unrealized Gains		20
Unrealized Losses		(112)	(148)
Fair Value		55,374	32,848
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		44,258	28,757
Unrealized Gains		2	1
Unrealized Losses		(342)	(137)
Fair Value		$ 43,918	$ 28,621
[1]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.

Marketable Securities - Additio

Marketable Securities - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2018
Debt Securities, Available-for-sale [Line Items]
Weighted-average remaining maturity period of marketable debt securities, months	1 year 6 months
Minimum
Debt Securities, Available-for-sale [Line Items]
Remaining maturities of marketable debt securities	2018-07
Maximum
Debt Securities, Available-for-sale [Line Items]
Remaining maturities of marketable debt securities	2021-08

Summary of Receivable (Detail)

Summary of Receivable (Detail) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Accounts Receivable and Unbilled Receivable [Line Items]
Accounts receivable	[1]	$ 141,384	$ 222,735
Unbilled receivables	[1]	151,354	158,898
Long-term unbilled receivables	[1]	169,330	160,708
Total receivables		$ 462,068	$ 542,341
[1]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.

Summary of Unbilled Receivables

Summary of Unbilled Receivables (Detail) $ in Thousands	Jun. 30, 2018USD ($)
Accounts Receivable and Unbilled Receivable [Line Items]
1 Year or Less	$ 151,354
1-2 Years	79,654
2-5 Years	89,676
Total	$ 320,684

Summary of Contract Assets and

Summary of Contract Assets and Deferred Revenue (Detail) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Accounts Receivable Net [Line Items]
Contract assets	[1]	$ 2,425	$ 914
Long-term contract assets	[2]	1,545
Total contract assets		3,970	914
Deferred revenue	[3]	163,525	166,297
Long-term deferred revenue	[4]	6,210	3,706
Total deferred revenue		$ 169,735	$ 170,003
[1]	Included in other current assets in the unaudited condensed consolidated balance sheets.
[2]	Included in other long-term assets in the unaudited condensed consolidated balance sheets.
[3]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.
[4]	Included in other long-term liabilities in the unaudited condensed consolidated balance sheets.

Receivables, Contract Assets,37

Receivables, Contract Assets, and Deferred Revenue - Additional Information (Detail) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018USD ($)	Dec. 31, 2017
Accounts Receivable Net [Line Items]
Deferred Revenue	$ 168.2
Receivables
Accounts Receivable Net [Line Items]
Number Of clients	0	0
Credit Concentration Risk | Receivables | Minimum
Accounts Receivable Net [Line Items]
Concentration risk, percentage	10.00%	10.00%

Deferred Contract Costs - Addit

Deferred Contract Costs - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2018
Amortized period	5 years
Maximum | Accounting Standards Update 2014-09
Amortized period	1 year

Schedule of Impairment of Defer

Schedule of Impairment of Deferred Contract Costs (Detail) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Deferred Financing Cost [Line Items]
Deferred contract costs	[1]	$ 42,246	$ 37,924
[1]	Included in other long-term assets in the unaudited condensed consolidated balance sheets.

Schedule of Amortization of Def

Schedule of Amortization of Deferred Contract Costs (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Deferred Financing Cost [Line Items]
Amortization of deferred contract costs	[1]	$ 3,809	$ 2,902	$ 7,598	$ 5,496
[1]	Included in selling and marketing expenses in the unaudited condensed consolidated statement of operations.

Change in Carrying Amount of Go

Change in Carrying Amount of Goodwill (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Goodwill [Line Items]
Balance as of January 1,	$ 72,952	[1]
Currency translation adjustments	(41)
Balance as of June 30,	$ 72,911	[1]
[1]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.

Schedule of Amortizable Intangi

Schedule of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
		Jun. 30, 2018	Dec. 31, 2017
Goodwill and Other Intangible Assets [Line Items]
Cost		$ 127,446	$ 127,467
Accumulated Amortization		(101,229)	(95,568)
Net Book Value	[1]	26,217	31,899
Client related intangibles
Goodwill and Other Intangible Assets [Line Items]
Cost		63,143	63,164
Accumulated Amortization		(48,033)	(44,835)
Net Book Value	[1]	15,110	18,329
Technology
Goodwill and Other Intangible Assets [Line Items]
Cost		58,942	58,942
Accumulated Amortization		(47,835)	(45,372)
Net Book Value	[1]	11,107	13,570
Other intangibles
Goodwill and Other Intangible Assets [Line Items]
Cost		5,361	5,361
Accumulated Amortization		$ (5,361)	$ (5,361)
Minimum | Client related intangibles
Goodwill and Other Intangible Assets [Line Items]
Useful Lives		9 years	9 years
Minimum | Technology
Goodwill and Other Intangible Assets [Line Items]
Useful Lives		7 years	7 years
Maximum | Client related intangibles
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
[1]	Included in other long-term assets in the unaudited condensed consolidated balance sheets.

Amortization of Intangible Asse

Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 2,836	$ 3,174	$ 5,673	$ 6,374
Cost of revenue
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	1,231	1,305	2,463	2,639
Selling and marketing
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 1,605	$ 1,869	$ 3,210	$ 3,735

Schedule of Accrued Expenses (D

Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Schedule of Accrued Liabilities [Line Items]
Outside professional services		$ 10,143	$ 14,468
Income and other taxes		4,837	7,420
Marketing and sales program expenses		9,282	6,444
Dividends payable		2,365	2,344
Employee-related expenses		5,737	4,065
Other		12,518	10,767
Total accrued expenses	[1]	$ 44,882	$ 45,508
[1]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amount of transfers between Levels	$ 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		Jun. 30, 2018	Dec. 31, 2017
Fair Value Assets
Cash equivalents		$ 32,037	$ 42,771
Total marketable securities		99,292	61,469
Municipal bonds
Fair Value Assets
Total marketable securities		55,374	32,848
Corporate bonds
Fair Value Assets
Total marketable securities		43,918	28,621
Investments in Privately-Held Companies
Fair Value Assets
Investments in privately-held companies	[1]	2,060	1,030
Level 1
Fair Value Assets
Cash equivalents		28	2,720
Level 2
Fair Value Assets
Cash equivalents		32,009	40,051
Total marketable securities		99,292	61,469
Level 2 | Municipal bonds
Fair Value Assets
Total marketable securities		55,374	32,848
Level 2 | Corporate bonds
Fair Value Assets
Total marketable securities		43,918	28,621
Level 3 | Investments in Privately-Held Companies
Fair Value Assets
Investments in privately-held companies	[1]	$ 2,060	$ 1,030
[1]	Included in other long-term assets in the unaudited condensed consolidated balance sheets.

Revenue - Additional Informatio

Revenue - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Total Revenue
Revenues [Line Items]
Concentration risk, percentage	100.00%	100.00%	100.00%	100.00%
Minimum | Total Revenue | Credit Concentration Risk
Revenues [Line Items]
Concentration risk, percentage			10.00%
Software license | Minimum
Revenues [Line Items]
Term of Agreement	3 years		3 years
Software license | Maximum
Revenues [Line Items]
Term of Agreement	5 years		5 years

Disaggregation of Revenue (Deta

Disaggregation of Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenue	$ 196,779	$ 186,596	$ 431,961	$ 442,905
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	44,784	51,150	132,557	178,158
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Total revenue	151,995	135,446	299,404	264,747
Perpetual License
Disaggregation of Revenue [Line Items]
Total revenue	13,475	31,297	36,553	69,196
Term License
Disaggregation of Revenue [Line Items]
Total revenue	31,309	19,853	96,004	108,962
Maintenance
Disaggregation of Revenue [Line Items]
Total revenue	65,906	59,424	130,431	118,137
Cloud
Disaggregation of Revenue [Line Items]
Total revenue	20,201	12,525	35,783	22,927
Consulting and Training
Disaggregation of Revenue [Line Items]
Total revenue	65,888	63,497	133,190	123,683
United States
Disaggregation of Revenue [Line Items]
Total revenue	110,349	102,098	224,334	271,760
Other Americas
Disaggregation of Revenue [Line Items]
Total revenue	9,627	13,177	27,342	23,583
United Kingdom (U.K.)
Disaggregation of Revenue [Line Items]
Total revenue	23,079	22,524	49,173	48,866
Europe (excluding U.K.), Middle East, and Africa
Disaggregation of Revenue [Line Items]
Total revenue	27,070	26,237	58,896	50,448
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	$ 26,654	$ 22,560	$ 72,216	$ 48,248
Total Revenue
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net	100.00%	100.00%	100.00%	100.00%
Total Revenue | United States
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net	55.00%	55.00%	52.00%	62.00%
Total Revenue | Other Americas
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net	5.00%	7.00%	6.00%	5.00%
Total Revenue | United Kingdom (U.K.)
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net	12.00%	12.00%	11.00%	11.00%
Total Revenue | Europe (excluding U.K.), Middle East, and Africa
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net	14.00%	14.00%	14.00%	11.00%
Total Revenue | Asia Pacific
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net	14.00%	12.00%	17.00%	11.00%

Committed Not Recognized Revenu

Committed Not Recognized Revenue Expected to be Recognized (Detail) $ in Thousands	Jun. 30, 2018USD ($)
Remainder of 2018	$ 213,244
2,019	140,209
2,020	63,603
2021 and thereafter	59,604
Total	$ 476,660

Total Revenue of Major Clients

Total Revenue of Major Clients (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018		Jun. 30, 2017	Jun. 30, 2018		Jun. 30, 2017
Revenue, Major Customer [Line Items]
Total revenue	$ 196,779		$ 186,596	$ 431,961		$ 442,905
Total Revenue
Revenue, Major Customer [Line Items]
Concentration risk, percentage	100.00%		100.00%	100.00%		100.00%
Credit Concentration Risk | Total Revenue | Client A
Revenue, Major Customer [Line Items]
Concentration risk, percentage	0.00%	[1]	11.00%	0.00%	[1]	0.00%
[1]	Client accounted for less than 10% of total revenue.

Total Revenue of Major Client51

Total Revenue of Major Clients (Parenthetical) (Detail) - Total Revenue	3 Months Ended			6 Months Ended
	Jun. 30, 2018		Jun. 30, 2017	Jun. 30, 2018		Jun. 30, 2017
Revenue, Major Customer [Line Items]
Concentration risk, percentage	100.00%		100.00%	100.00%		100.00%
Credit Concentration Risk | Client A
Revenue, Major Customer [Line Items]
Concentration risk, percentage	0.00%	[1]	11.00%	0.00%	[1]	0.00%
Credit Concentration Risk | Client A | Maximum
Revenue, Major Customer [Line Items]
Concentration risk, percentage				10.00%
[1]	Client accounted for less than 10% of total revenue.

Summary of Stock Based Compensa

Summary of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018		Jun. 30, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 16,056	$ 13,932	$ 31,165	[1]	$ 26,440	[1]
Income tax benefit	(3,341)	(4,287)	(6,482)		(8,102)
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	4,257	3,677	7,958		7,299
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	6,038	4,101	10,696		7,506
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	3,802	3,575	7,439		6,887
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 1,959	$ 2,579	$ 5,072		$ 4,748
[1]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) shares in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense | $	$ 79.7
Weighted-average period of recognition of unrecognized stock-based compensation expense (in years)	2 years 2 months 12 days
Shares issued | shares	0.9

Stock-based compensation - Summ

Stock-based compensation - Summary of stock based compensation award granted (Detail) - Employees $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)shares
RSUs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares granted, RSUs | shares	931	[1]
Fair value of shares granted | $	$ 54,100	[1]
Nonqualified Stock Options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares granted, options | shares	1,446
Fair value of shares granted | $	$ 26,000
[1]	Includes approximately 0.1 million RSUs which were granted in connection with the election by certain employees to receive 50% of their 2018 target incentive compensation under the Company's Corporate Incentive Compensation Plan in the form of RSUs instead of cash. Stock-based compensation of approximately $8.2 million associated with this RSU grant is expected to be recognized over a one-year period beginning on the grant date.

Stock-based compensation - Su55

Stock-based compensation - Summary of stock based compensation award granted (Parenthetical) (Detail) - RSUs - Employees shares in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)shares
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
RSUs granted in connection with the 2016 CICP | shares	0.1
Percentage of target incentive compensation eligible to be elected and received by employees in the form of RSUs	50.00%
Restricted stock compensation expense | $	$ 8.2
Total stock-based compensation, period of recognition	1 year

Summary of Benefit from Income

Summary of Benefit from Income Taxes and Discrete Tax Items (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Rate Reconciliation [Line Items]
(Benefit) from income taxes	[1]	$ (10,881)	$ (14,123)	$ (15,103)	$ (508)
Effective income tax rate				113.00%	(1.00%)
[1]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.

Income Tax - Additional Informa

Income Tax - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2018	Dec. 31, 2017
Effective Tax Rate Reconciling Items [Line Items]
Statutory federal income tax rate		21.00%	35.00%
Tax Cuts and Jobs Act 2017, Incomplete accounting provisional income tax expense (benefit)	$ 20.4
Accounting Standards Update 2014-09
Effective Tax Rate Reconciling Items [Line Items]
Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Deferred Tax Liability, Income Tax Benefit	$ 12.6

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		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earning per share reconciliation
Net (loss)/income	[1]	$ (10,409)	$ 3,702	$ 1,791	$ 56,665
Weighted-average common shares outstanding	[1]	78,635	77,313	78,436	77,039
(Loss)/earnings per share, basic	[1]	$ (0.13)	$ 0.05	$ 0.02	$ 0.74
Net (loss)/income	[1]	$ (10,409)	$ 3,702	$ 1,791	$ 56,665
Effect of dilutive securities			5,632	4,811	5,373
Weighted-average common shares outstanding, assuming dilution	[1]	78,635	82,945	83,247	82,412
(Loss)/earnings per share, diluted	[1]	$ (0.13)	$ 0.04	$ 0.02	$ 0.69
Outstanding anti-dilutive stock options and RSUs	[2]	6,500	237	242	276
Stock Options
Earning per share reconciliation
Weighted-average effect of dilutive securities			3,694	3,132	3,439
RSUs
Earning per share reconciliation
Weighted-average effect of dilutive securities			1,938	1,679	1,934
[1]	On January 1, 2018 the Company adopted the ASC 606 revenue recognition standard and has adjusted prior periods to conform. See Note 2. "New Accounting Pronouncements" for additional information.
[2]	Certain outstanding stock options and RSUs were excluded from the computation of diluted earnings per share because they were anti-dilutive in the period presented. These awards may be dilutive in the future.