Pegasystems (PEGA) 10-Q 7 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 01, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
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		78,700,651
Entity Emerging Growth Company	false
Entity Small Business	false

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	[1]	$ 106,195	$ 162,279
Marketable securities	[1]	99,782	61,469
Total cash, cash equivalents, and marketable securities	[1]	205,977	223,748
Accounts receivable	[1]	150,733	222,735
Unbilled receivables	[1]	155,964	158,898
Other current assets	[1]	73,464	41,135
Total current assets	[1]	586,138	646,516
Long-term unbilled receivables	[1]	168,929	160,708
Goodwill	[1]	72,897	72,952
Other long-term assets	[1]	134,679	131,391
Total assets	[1]	962,643	1,011,567
Current liabilities:
Accounts payable	[1]	12,926	17,370
Accrued expenses	[1]	39,829	45,508
Accrued compensation and related expenses	[1]	71,318	66,040
Deferred revenue	[1]	158,178	166,297
Total current liabilities	[1]	282,251	295,215
Deferred income tax liabilities	[1]	36,166	38,463
Other long-term liabilities	[1]	23,371	23,652
Total liabilities	[1]	341,788	357,330
Stockholders' equity:
Preferred stock, 1,000 shares authorized; no shares issued and outstanding	[1]
Common stock, 200,000 shares authorized; 78,816 and 78,081 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	[1]	788	781
Additional paid-in capital	[1]	135,132	152,097
Retained earnings	[1]	496,815	508,051
Accumulated other comprehensive loss	[1]	(11,880)	(6,692)
Total stockholders' equity	[1]	620,855	654,237
Total liabilities and stockholders' equity	[1]	$ 962,643	$ 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 CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares		Sep. 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]	78,816,000	78,816,000
Common stock, shares outstanding	[1]	78,081,000	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 CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue
Total revenue	[1]	$ 203,263	$ 190,957	$ 635,224	$ 633,862
Cost of revenue
Total cost of revenue	[1]	74,423	69,731	223,854	205,696
Gross profit	[1]	128,840	121,226	411,370	428,166
Operating expenses
Selling and marketing	[1]	87,490	69,363	269,845	214,244
Research and development	[1]	46,504	41,031	135,261	121,089
General and administrative	[1]	12,104	13,133	38,749	38,174
Total operating expenses	[1]	146,098	123,527	443,855	373,507
(Loss) income from operations	[1]	(17,258)	(2,301)	(32,485)	54,659
Foreign currency transaction gain (loss)	[1]	399	(5,052)	558	(6,549)
Interest income, net	[1]	683	140	2,076	547
Other income, net	[1]			363	287
(Loss) income before benefit from income taxes	[1]	(16,176)	(7,213)	(29,488)	48,944
Benefit from income taxes	[1]	(8,589)	(8,501)	(23,692)	(9,009)
Net (loss) income	[1]	$ (7,587)	$ 1,288	$ (5,796)	$ 57,953
(Loss) earnings per share
Basic	[1]	$ (0.10)	$ 0.01	$ (0.07)	$ 0.75
Diluted	[1]	$ (0.10)	$ 0.01	$ (0.07)	$ 0.70
Weighted-average number of common shares outstanding
Basic	[1]	78,700	77,691	78,525	77,258
Diluted	[1]	78,700	83,323	78,525	82,717
Cash dividends declared per share	[1]	$ 0.03	$ 0.03	$ 0.09	$ 0.09
Software license
Revenue
Total revenue	[1]	$ 52,342	$ 53,234	$ 184,899	$ 231,392
Cost of revenue
Total cost of revenue	[1]	1,255	1,276	3,772	3,826
Maintenance
Revenue
Total revenue	[1]	66,017	61,812	196,448	179,949
Cost of revenue
Total cost of revenue	[1]	6,079	6,716	18,035	20,945
Services
Revenue
Total revenue	[1]	84,904	75,911	253,877	222,521
Cost of revenue
Total cost of revenue	[1]	$ 67,089	$ 61,739	$ 202,047	$ 180,925
[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 CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net (loss) income	[1]	$ (7,587)	$ 1,288	$ (5,796)	$ 57,953
Other comprehensive (loss) income, net of tax
Unrealized (loss) gain on available-for-sale marketable securities, net of tax	[1]	(162)	22	(277)	148
Foreign currency translation adjustments	[1]	(1,934)	2,576	(4,911)	8,848
Total other comprehensive (loss) income, net of tax	[1]	(2,096)	2,598	(5,188)	8,996
Comprehensive (loss) income	[1]	$ (9,683)	$ 3,886	$ (10,984)	$ 66,949
[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 CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017
Operating activities:
Net (loss) income	[1]	$ (5,796)	$ 57,953
Adjustment to reconcile net (loss) income to cash provided by operating activities:
Change in operating assets and liabilities, net	[1]	8,698	(15,455)
Stock-based compensation expense	[1]	47,573	39,929
Amortization of intangible assets and depreciation	[1]	18,692	18,703
Other non-cash	[1]	(2,079)	12,796
Cash provided by operating activities	[1]	67,088	113,926
Investing activities:
Purchases of investments	[1]	(68,177)	(25,687)
Proceeds from maturities and called investments	[1]	26,456	23,124
Other	[1]	(7,874)	(9,403)
Cash used in investing activities	[1]	(49,595)	(11,966)
Financing activities:
Dividend payments to shareholders	[1]	(7,067)	(6,941)
Common stock repurchases	[1]	(64,597)	(37,099)
Cash used in financing activities	[1]	(71,664)	(44,040)
Effect of exchange rates on cash and cash equivalents	[1]	(1,913)	2,054
Net (decrease) increase in cash and cash equivalents	[1]	(56,084)	59,974
Cash and cash equivalents, beginning of period	[1]	162,279	70,594
Cash and cash equivalents, end of period	[1]	$ 106,195	$ 130,568
[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	9 Months Ended
	Sep. 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 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. On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09,

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 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 adoption impacts were as follows: • 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 of 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 September 30, 2017 Three Months Ended Nine Months Ended (in thousands, except per share amounts) Previously Adjustments As Adjusted Previously Adjustments As Adjusted Revenue: Software license $ 41,793 $ 11,441 $ 53,234 $ 195,220 $ 36,172 $ 231,392 Maintenance 62,204 (392) 61,812 180,759 (810) 179,949 Services 75,818 93 75,911 225,063 (2,542) 222,521 Total revenue 179,815 11,142 190,957 601,042 32,820 633,862 Cost of revenue: Software license 1,276 — 1,276 3,826 — 3,826 Maintenance 6,716 — 6,716 20,945 — 20,945 Services 61,739 — 61,739 180,925 — 180,925 Total cost of revenue 69,731 — 69,731 205,696 — 205,696 Gross profit 110,084 11,142 121,226 395,346 32,820 428,166 Operating expenses: Selling and marketing 70,209 (846) 69,363 217,384 (3,140) 214,244 Research and development 41,031 — 41,031 121,089 — 121,089 General and administrative 13,133 — 13,133 38,174 — 38,174 Total operating expenses 124,373 (846) 123,527 376,647 (3,140) 373,507 (Loss) income from operations (14,289) 11,988 (2,301) 18,699 35,960 54,659 Foreign currency transaction loss (552) (4,500) (5,052) (793) (5,756) (6,549) Interest income, net 144 (4) 140 470 77 547 Other income, net — — — 287 — 287 (Loss) income before benefit from income taxes (14,697) 7,484 (7,213) 18,663 30,281 48,944 Benefit from income taxes (12,885) 4,384 (8,501) (17,952) 8,943 (9,009) Net (loss) income $ (1,812) $ 3,100 $ 1,288 $ 36,615 $ 21,338 $ 57,953 (Loss) earnings per share: Basic $ (0.03) $ 0.01 $ 0.47 $ 0.75 Diluted $ (0.03) $ 0.01 $ 0.44 $ 0.70 Weighted-average number of common shares outstanding: Basic 77,691 77,691 77,258 77,258 Diluted 77,691 83,323 82,717 82,717 Adoption of ASC 606 and ASC 340-40

MARKETABLE SECURITIES

MARKETABLE SECURITIES	9 Months Ended
	Sep. 30, 2018
MARKETABLE SECURITIES	3. MARKETABLE SECURITIES September 30, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 46,633 $ — $ (267) $ 46,366 Corporate bonds 53,738 1 (323) 53,416 $ 100,371 $ 1 $ (590) $ 99,782 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 September 30, 2018, the Company did not hold any investments with unrealized losses that are considered to be other-than-temporary. As of September 30, 2018, remaining maturities of marketable securities ranged from October 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	9 Months Ended
	Sep. 30, 2018
RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE	4. RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE Receivables (in thousands) September 30, December 31, Accounts receivable $ 150,733 $ 222,735 Unbilled receivables 155,964 158,898 Long-term unbilled receivables 168,929 160,708 $ 475,626 $ 542,341 Unbilled receivables are the amounts due from clients where the only condition to the right of payment is the passage of time. As of September 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: (Dollars in thousands) September 30, 1 Year or Less $ 155,964 48% 1-2 89,177 27% 2-5 79,752 25% $ 324,893 100% Contract assets and deferred revenue (in thousands) September 30, December 31, Contract assets (1) $ 2,888 $ 914 Long-term contract assets (2) 1,581 — $ 4,469 $ 914 Deferred revenue $ 158,178 $ 166,297 Long-term deferred revenue (3) 5,840 3,706 $ 164,018 $ 170,003 (1) (2) (3) Contract assets are amounts under client contracts where revenue recognized exceeds the amount billed to the client and the right to payment is subject to conditions other than the passage of time, such as the completion of a related performance obligation. Deferred revenue consists of billings and payments received in advance of revenue recognition. Contract assets and deferred revenue are netted at the contract level for each reporting period. The change in deferred revenue in the nine months ended September 30, 2018 was primarily due to $225.1 million of revenue recognized, excluding the impact of netting contract assets and deferred revenue at the contract level, during the period that was included in deferred revenue at December 31, 2017, partially offset by new billings in advance of revenue recognition. Major clients No client represented 10% or more of the Company’s total receivables as of September 30, 2018 or December 31, 2017.

DEFERRED CONTRACT COSTS

DEFERRED CONTRACT COSTS	9 Months Ended
	Sep. 30, 2018
DEFERRED CONTRACT COSTS	5. DEFERRED CONTRACT COSTS The Company recognizes an asset for the incremental costs of obtaining a contract with a client if the Company expects the benefit of those costs to be longer than one year. Deferred costs are amortized on a straight-line basis over the benefit period, which is on average five years. (in thousands) September 30, December 31, Deferred contract costs (1) $ 50,799 $ 37,924 (1) Amortization of deferred contract costs was as follows: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Amortization of deferred contract costs (1) $ 4,208 $ 3,034 $ 11,806 $ 8,529 (1)

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2018
GOODWILL AND OTHER INTANGIBLE ASSETS	6. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The change in the carrying amount of goodwill was as follows: (in thousands) Nine Months Ended 2018 Balance as of January 1, $ 72,952 Currency translation adjustments (55) Balance as of September 30, $ 72,897 Intangibles Intangible assets are recorded at cost and amortized using the straight-line method over their estimated useful lives as follows: September 30, 2018 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 4-10 years $ 63,136 $ (49,633) $ 13,503 Technology 3-10 58,942 (49,067) 9,875 Other 1-5 years 5,361 (5,361) — $ 127,439 $ (104,061) $ 23,378 (1) December 31, 2017 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 4-10 years $ 63,164 $ (44,835) $ 18,329 Technology 3-10 58,942 (45,372) 13,570 Other 1-5 years 5,361 (5,361) — $ 127,467 $ (95,568) $ 31,899 (1) Amortization of intangible assets was as follows: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Cost of revenue $ 1,232 $ 1,232 $ 3,695 $ 3,871 Selling and marketing 1,603 1,873 4,813 5,608 $ 2,835 $ 3,105 $ 8,508 $ 9,479

ACCRUED EXPENSES

ACCRUED EXPENSES	9 Months Ended
	Sep. 30, 2018
ACCRUED EXPENSES	7. ACCRUED EXPENSES (in thousands) September 30, 2018 December 31, 2017 Outside professional services $ 11,638 $ 14,468 Income and other taxes 3,971 7,420 Marketing and sales program expenses 4,623 6,444 Dividends payable 2,365 2,344 Employee-related expenses 5,212 4,065 Other 12,020 10,767 $ 39,829 $ 45,508

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 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 within Level 1 and Level 2, respectively, in the fair value hierarchy. The Company’s marketable securities, which are classified within Level 2 of the fair value hierarchy are valued based on a market approach using quoted prices, when available, or matrix pricing compiled by third party pricing vendors, using observable market inputs such as interest rates, yield curves, and credit risk. The Company’s investments in privately-held companies are classified within Level 3 of the fair value hierarchy 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 nine months ended September 30, 2018. The Company’s assets and liabilities measured at fair value on a recurring basis were as follows: September 30, 2018 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents $ 10,212 $ 15,212 $ — $ 25,424 Marketable securities: Municipal bonds $ — $ 46,366 $ — $ 46,366 Corporate bonds — 53,416 — 53,416 Total marketable securities $ — $ 99,782 $ — $ 99,782 Investments in privately-held companies (1) $ — $ — $ 2,890 $ 2,890 (1) December 31, 2017 (in thousands) 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 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 nine months ended September 30, 2018 and 2017, the Company did not recognize any impairments of its assets recorded at fair value on a nonrecurring basis.

REVENUE

REVENUE	9 Months Ended
	Sep. 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 Pega Platform and software applications. • 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 applications, 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. 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 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 reevaluates whether the residual approach is appropriate for its license performance obligations when sold with other performance obligations. If the standalone selling price analysis illustrates that software license 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 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. Maintenance revenue is recognized over time on a straight-line basis over the contract period. The maintenance performance obligation is priced as a percentage of the selling price of the related software license, which is highly variable. The Company determined the standalone selling price 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. Maintenance fees are usually payable in advance on a monthly, quarterly, or annual basis over the term of the agreement. Services Services revenue is comprised of consulting, 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 other performance obligations. • The stand-alone selling price for time and materials consulting 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 stand-alone selling price for fixed price consulting is based on the estimated hours versus actual hours in similar geographies and for similar contract sizes. Revenue for fixed price consulting is recognized over time as the services are provided. Fees for fixed price consulting 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 other performance obligations 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. Cloud fees for production environments are usually payable in advance on a monthly, quarterly, or annual basis over the term of the service. • 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 the term of the service. Cloud fees for development and testing environments are usually payable in advance on a monthly, quarterly, or annual basis over the term of the service. Contract modifications The Company 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 Nine Months Ended (Dollars in thousands) 2018 2017 2018 2017 U.S. $ 103,075 51% $ 105,059 55% $ 327,409 51% $ 376,819 59% Other Americas 10,424 5% 9,307 5% 37,766 6% 32,890 5% United Kingdom (“U.K.”) 19,277 9% 18,537 10% 68,450 11% 67,403 11% Europe (excluding U.K.), Middle East, and Africa 42,254 21% 31,109 16% 101,150 16% 81,557 13% Asia-Pacific 28,233 14% 26,945 14% 100,449 16% 75,193 12% Total revenue $ 203,263 100% $ 190,957 100% $ 635,224 100% $ 633,862 100% Revenue streams Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Perpetual license $ 20,276 $ 12,623 $ 56,829 $ 81,819 Term license 32,066 40,611 128,070 149,573 Revenue recognized at a point in time 52,342 53,234 184,899 231,392 Maintenance 66,017 61,812 196,448 179,949 Cloud 22,184 13,280 57,967 36,207 Consulting 62,720 62,631 195,910 186,314 Revenue recognized over time 150,921 137,723 450,325 402,470 Total revenue $ 203,263 $ 190,957 $ 635,224 $ 633,862 Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Term license $ 32,066 $ 40,611 $ 128,070 $ 149,573 Cloud 22,184 13,280 57,967 36,207 Maintenance 66,017 61,812 196,448 179,949 Subscription (1) 120,267 115,703 382,485 365,729 Perpetual license 20,276 12,623 56,829 81,819 Consulting 62,720 62,631 195,910 186,314 Total revenue $ 203,263 $ 190,957 $ 635,224 $ 633,862 (1) During the nine months ended September 30, 2018 and 2017, there were no material changes in the Company’s estimate of variable fees. Remaining performance obligations (formerly reported as “committed not yet recognized revenue”) Revenue for the remaining performance obligations on existing contracts is expected to be recognized in the future as follows: September 30, 2018 (Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total 1 year or less $ 25,343 $ 44,283 $ 140,591 $ 88,529 $ 14,107 $ 312,853 60% 1-2 6,490 10,063 8,877 70,815 1,830 98,075 19% 2-3 360 1,598 2,586 54,646 449 59,639 11% Greater than 3 years 1,306 218 1,079 49,110 50 51,763 10% $ 33,499 $ 56,162 $ 153,133 $ 263,100 $ 16,436 $ 522,330 100% Major clients Clients accounting for 10% or more of the Company’s total revenue were as follows: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Total revenue $ 203,263 $ 190,957 $ 635,224 $ 633,862 Client A 10% 10% * * *Client accounted for less than 10% of total revenue.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2018
STOCK-BASED COMPENSATION	10. STOCK-BASED COMPENSATION Expense Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Cost of revenues $ 4,319 $ 3,613 $ 12,277 $ 10,913 Selling and marketing 6,198 3,976 16,895 11,482 Research and development 3,917 3,420 11,356 10,306 General and administrative 1,974 2,480 7,045 7,228 $ 16,408 $ 13,489 $ 47,573 $ 39,929 Income tax benefit $ (3,555) $ (4,129) $ (10,037) $ (12,231) The Company recognizes stock-based compensation using the accelerated recognition method, treating each vesting tranche as if it were an individual grant. As of September 30, 2018, the Company had, net of estimated forfeitures, $74.2 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: Nine Months Ended (in thousands) Shares Total Fair Value RSUs (1) 1,117 $ 65,569 Non-qualified 1,623 $ 29,372 (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 nine months ended September 30, 2018, 1.2 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	9 Months Ended
	Sep. 30, 2018
INCOME TAXES	11. INCOME TAXES Effective income tax rate Nine Months Ended (Dollars in thousands) 2018 2017 Benefit from income taxes $ (23,692 ) $ (9,009 ) Effective income tax rate 80 % (18 )% During the nine months ended September 30, 2018, the Company’s effective income tax rate changed primarily due to the following factors: • excess tax benefits from stock-based compensation were disproportionately greater than 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 utilization of U.S. research and development tax credits; and • a decrease in uncertain tax provisions as a result of the settlement of a foreign tax audit for 2012 through 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, a one-time low-taxed In the three months ended December 31, 2017, the Company recognized, under SEC Staff Accounting Bulletin No. 118 (“SAB 118”), provisional income taxes, including $20.4 million of income tax expense to re-measure The final income tax amounts may differ from those provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions by the Company, 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 September 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	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2018 2017 2018 2017 Basic Net (loss) income $ (7,587) $ 1,288 $ (5,796) $ 57,953 Weighted-average common shares outstanding 78,700 77,691 78,525 77,258 (Loss) earnings per share, basic $ (0.10) $ 0.01 $ (0.07) $ 0.75 Diluted Net (loss) income $ (7,587) $ 1,288 $ (5,796) $ 57,953 Weighted-average effect of dilutive securities: Stock options — 3,681 — 3,519 RSUs — 1,951 — 1,940 Effect of dilutive securities — 5,632 — 5,459 Weighted-average common shares outstanding, assuming dilution 78,700 83,323 78,525 82,717 (Loss) earnings per share, diluted $ (0.10) $ 0.01 $ (0.07) $ 0.70 Outstanding anti-dilutive stock options and RSUs (1) 6,119 105 6,380 219 (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)	9 Months Ended
	Sep. 30, 2018
Deferred Contract Cost	The Company recognizes an asset for the incremental costs of obtaining a contract with a client if the Company expects the benefit of those costs to be longer than one year. Deferred costs are amortized on a straight-line basis over the benefit period, which is on average five years.
Revenue	Revenue policy The Company’s revenue is primarily derived from: • Software license revenue is primarily derived from sales of the Company’s Pega Platform and software applications. • 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 applications, 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. 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 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 reevaluates whether the residual approach is appropriate for its license performance obligations when sold with other performance obligations. If the standalone selling price analysis illustrates that software license 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 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. Maintenance revenue is recognized over time on a straight-line basis over the contract period. The maintenance performance obligation is priced as a percentage of the selling price of the related software license, which is highly variable. The Company determined the standalone selling price 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. Maintenance fees are usually payable in advance on a monthly, quarterly, or annual basis over the term of the agreement. Services Services revenue is comprised of consulting, 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 other performance obligations. • The stand-alone selling price for time and materials consulting 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 stand-alone selling price for fixed price consulting is based on the estimated hours versus actual hours in similar geographies and for similar contract sizes. Revenue for fixed price consulting is recognized over time as the services are provided. Fees for fixed price consulting 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 other performance obligations 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. Cloud fees for production environments are usually payable in advance on a monthly, quarterly, or annual basis over the term of the service. • 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 the term of the service. Cloud fees for development and testing environments are usually payable in advance on a monthly, quarterly, or annual basis over the term of the service. Contract modifications The Company 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)	9 Months Ended
	Sep. 30, 2018
Accounting Standards Update 2014-09
Summary of Impact of Adoption of ASU 606	The impact of the adoption of 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 September 30, 2017 Three Months Ended Nine Months Ended (in thousands, except per share amounts) Previously Adjustments As Adjusted Previously Adjustments As Adjusted Revenue: Software license $ 41,793 $ 11,441 $ 53,234 $ 195,220 $ 36,172 $ 231,392 Maintenance 62,204 (392) 61,812 180,759 (810) 179,949 Services 75,818 93 75,911 225,063 (2,542) 222,521 Total revenue 179,815 11,142 190,957 601,042 32,820 633,862 Cost of revenue: Software license 1,276 — 1,276 3,826 — 3,826 Maintenance 6,716 — 6,716 20,945 — 20,945 Services 61,739 — 61,739 180,925 — 180,925 Total cost of revenue 69,731 — 69,731 205,696 — 205,696 Gross profit 110,084 11,142 121,226 395,346 32,820 428,166 Operating expenses: Selling and marketing 70,209 (846) 69,363 217,384 (3,140) 214,244 Research and development 41,031 — 41,031 121,089 — 121,089 General and administrative 13,133 — 13,133 38,174 — 38,174 Total operating expenses 124,373 (846) 123,527 376,647 (3,140) 373,507 (Loss) income from operations (14,289) 11,988 (2,301) 18,699 35,960 54,659 Foreign currency transaction loss (552) (4,500) (5,052) (793) (5,756) (6,549) Interest income, net 144 (4) 140 470 77 547 Other income, net — — — 287 — 287 (Loss) income before benefit from income taxes (14,697) 7,484 (7,213) 18,663 30,281 48,944 Benefit from income taxes (12,885) 4,384 (8,501) (17,952) 8,943 (9,009) Net (loss) income $ (1,812) $ 3,100 $ 1,288 $ 36,615 $ 21,338 $ 57,953 (Loss) earnings per share: Basic $ (0.03) $ 0.01 $ 0.47 $ 0.75 Diluted $ (0.03) $ 0.01 $ 0.44 $ 0.70 Weighted-average number of common shares outstanding: Basic 77,691 77,691 77,258 77,258 Diluted 77,691 83,323 82,717 82,717

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2018
Schedule of Marketable Securities	September 30, 2018 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Municipal bonds $ 46,633 $ — $ (267) $ 46,366 Corporate bonds 53,738 1 (323) 53,416 $ 100,371 $ 1 $ (590) $ 99,782 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,_2

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE (Tables)	9 Months Ended
	Sep. 30, 2018
Summary of Receivable	Receivables (in thousands) September 30, December 31, Accounts receivable $ 150,733 $ 222,735 Unbilled receivables 155,964 158,898 Long-term unbilled receivables 168,929 160,708 $ 475,626 $ 542,341
Summary of Unbilled Receivables	Unbilled receivables are expected to be billed in the future as follows: (Dollars in thousands) September 30, 1 Year or Less $ 155,964 48% 1-2 89,177 27% 2-5 79,752 25% $ 324,893 100%
Summary of Contract Assets and Deferred Revenue	Contract assets and deferred revenue (in thousands) September 30, December 31, Contract assets (1) $ 2,888 $ 914 Long-term contract assets (2) 1,581 — $ 4,469 $ 914 Deferred revenue $ 158,178 $ 166,297 Long-term deferred revenue (3) 5,840 3,706 $ 164,018 $ 170,003 (1) (2) (3)

DEFERRED CONTRACT COSTS (Tables

DEFERRED CONTRACT COSTS (Tables)	9 Months Ended
	Sep. 30, 2018
Schedule of Impairment of Deferred Contract Costs	(in thousands) September 30, December 31, Deferred contract costs (1) $ 50,799 $ 37,924 (1)
Schedule of amortization of deferred contract costs	Amortization of deferred contract costs was as follows: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Amortization of deferred contract costs (1) $ 4,208 $ 3,034 $ 11,806 $ 8,529 (1)

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2018
Change in Carrying Amount of Goodwill	The change in the carrying amount of goodwill was as follows: (in thousands) Nine Months Ended 2018 Balance as of January 1, $ 72,952 Currency translation adjustments (55) Balance as of September 30, $ 72,897
Schedule of Amortizable Intangible Assets	Intangible assets are recorded at cost and amortized using the straight-line method over their estimated useful lives as follows: September 30, 2018 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 4-10 years $ 63,136 $ (49,633) $ 13,503 Technology 3-10 58,942 (49,067) 9,875 Other 1-5 years 5,361 (5,361) — $ 127,439 $ (104,061) $ 23,378 (1) December 31, 2017 (in thousands) Useful Lives Cost Accumulated Net Book Value (1) Client-related intangibles 4-10 years $ 63,164 $ (44,835) $ 18,329 Technology 3-10 58,942 (45,372) 13,570 Other 1-5 years 5,361 (5,361) — $ 127,467 $ (95,568) $ 31,899 (1)
Amortization of Intangible Assets	Amortization of intangible assets was as follows: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Cost of revenue $ 1,232 $ 1,232 $ 3,695 $ 3,871 Selling and marketing 1,603 1,873 4,813 5,608 $ 2,835 $ 3,105 $ 8,508 $ 9,479

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2018
Schedule of Accrued Expenses	(in thousands) September 30, 2018 December 31, 2017 Outside professional services $ 11,638 $ 14,468 Income and other taxes 3,971 7,420 Marketing and sales program expenses 4,623 6,444 Dividends payable 2,365 2,344 Employee-related expenses 5,212 4,065 Other 12,020 10,767 $ 39,829 $ 45,508

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 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: September 30, 2018 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents $ 10,212 $ 15,212 $ — $ 25,424 Marketable securities: Municipal bonds $ — $ 46,366 $ — $ 46,366 Corporate bonds — 53,416 — 53,416 Total marketable securities $ — $ 99,782 $ — $ 99,782 Investments in privately-held companies (1) $ — $ — $ 2,890 $ 2,890 (1) December 31, 2017 (in thousands) 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)	9 Months Ended
	Sep. 30, 2018
Disaggregation of Revenue	Geographic revenue Three Months Ended Nine Months Ended (Dollars in thousands) 2018 2017 2018 2017 U.S. $ 103,075 51% $ 105,059 55% $ 327,409 51% $ 376,819 59% Other Americas 10,424 5% 9,307 5% 37,766 6% 32,890 5% United Kingdom (“U.K.”) 19,277 9% 18,537 10% 68,450 11% 67,403 11% Europe (excluding U.K.), Middle East, and Africa 42,254 21% 31,109 16% 101,150 16% 81,557 13% Asia-Pacific 28,233 14% 26,945 14% 100,449 16% 75,193 12% Total revenue $ 203,263 100% $ 190,957 100% $ 635,224 100% $ 633,862 100% Revenue streams Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Perpetual license $ 20,276 $ 12,623 $ 56,829 $ 81,819 Term license 32,066 40,611 128,070 149,573 Revenue recognized at a point in time 52,342 53,234 184,899 231,392 Maintenance 66,017 61,812 196,448 179,949 Cloud 22,184 13,280 57,967 36,207 Consulting 62,720 62,631 195,910 186,314 Revenue recognized over time 150,921 137,723 450,325 402,470 Total revenue $ 203,263 $ 190,957 $ 635,224 $ 633,862 Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Term license $ 32,066 $ 40,611 $ 128,070 $ 149,573 Cloud 22,184 13,280 57,967 36,207 Maintenance 66,017 61,812 196,448 179,949 Subscription (1) 120,267 115,703 382,485 365,729 Perpetual license 20,276 12,623 56,829 81,819 Consulting 62,720 62,631 195,910 186,314 Total revenue $ 203,263 $ 190,957 $ 635,224 $ 633,862 (1)
Revenue for Remaining Performance Obligations Expected to be Recognized	Revenue for the remaining performance obligations on existing contracts is expected to be recognized in the future as follows: September 30, 2018 (Dollars in thousands) Perpetual license Term license Maintenance Cloud Consulting Total 1 year or less $ 25,343 $ 44,283 $ 140,591 $ 88,529 $ 14,107 $ 312,853 60% 1-2 6,490 10,063 8,877 70,815 1,830 98,075 19% 2-3 360 1,598 2,586 54,646 449 59,639 11% Greater than 3 years 1,306 218 1,079 49,110 50 51,763 10% $ 33,499 $ 56,162 $ 153,133 $ 263,100 $ 16,436 $ 522,330 100%
Total Revenue of Major Clients	Clients accounting for 10% or more of the Company’s total revenue were as follows: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Total revenue $ 203,263 $ 190,957 $ 635,224 $ 633,862 Client A 10% 10% * * *Client accounted for less than 10% of total revenue.

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2018
Summary of Stock Based Compensation Expense	Expense Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Cost of revenues $ 4,319 $ 3,613 $ 12,277 $ 10,913 Selling and marketing 6,198 3,976 16,895 11,482 Research and development 3,917 3,420 11,356 10,306 General and administrative 1,974 2,480 7,045 7,228 $ 16,408 $ 13,489 $ 47,573 $ 39,929 Income tax benefit $ (3,555) $ (4,129) $ (10,037) $ (12,231)
Summary of stock based compensation award granted	Grants The Company granted the following stock-based compensation awards: Nine Months Ended (in thousands) Shares Total Fair Value RSUs (1) 1,117 $ 65,569 Non-qualified 1,623 $ 29,372 (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)	9 Months Ended
	Sep. 30, 2018
Summary of Benefit from Income Taxes and Discrete Tax Items	Effective income tax rate Nine Months Ended (Dollars in thousands) 2018 2017 Benefit from income taxes $ (23,692 ) $ (9,009 ) Effective income tax rate 80 % (18 )%

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2018 2017 2018 2017 Basic Net (loss) income $ (7,587) $ 1,288 $ (5,796) $ 57,953 Weighted-average common shares outstanding 78,700 77,691 78,525 77,258 (Loss) earnings per share, basic $ (0.10) $ 0.01 $ (0.07) $ 0.75 Diluted Net (loss) income $ (7,587) $ 1,288 $ (5,796) $ 57,953 Weighted-average effect of dilutive securities: Stock options — 3,681 — 3,519 RSUs — 1,951 — 1,940 Effect of dilutive securities — 5,632 — 5,459 Weighted-average common shares outstanding, assuming dilution 78,700 83,323 78,525 82,717 (Loss) earnings per share, diluted $ (0.10) $ 0.01 $ (0.07) $ 0.70 Outstanding anti-dilutive stock options and RSUs (1) 6,119 105 6,380 219 (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		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Assets
Accounts receivable, unbilled receivables, and contract assets						$ 382,547
Long-term unbilled receivables	[1]	$ 168,929		$ 168,929		160,708
Deferred income taxes						14,240
Deferred contract costs						37,924
Other assets	[2]					416,148
Total assets	[1]	962,643		962,643		1,011,567
Liabilities and stockholders' equity
Deferred revenue	[1]	158,178		158,178		166,297
Long-term deferred revenue	[3]	5,840		5,840		3,706
Deferred income tax liabilities	[1]	36,166		36,166		38,463
Other liabilities	[4]					148,864
Total liabilities	[1]	341,788		341,788		357,330
Foreign currency translation adjustments						(6,460)
Retained earnings	[1]	496,815		496,815		508,051
Other equity	[5]					152,646
Total stockholders' equity	[1]	620,855		620,855		654,237
Total liabilities and stockholders' equity	[1]	962,643		962,643		1,011,567
Revenue:
Total revenue	[1]	203,263	$ 190,957	635,224	$ 633,862
Cost of revenue:
Total cost of revenue	[1]	74,423	69,731	223,854	205,696
Gross profit	[1]	128,840	121,226	411,370	428,166
Operating expenses:
Selling and marketing	[1]	87,490	69,363	269,845	214,244
Research and development	[1]	46,504	41,031	135,261	121,089
General and administrative	[1]	12,104	13,133	38,749	38,174
Total operating expenses	[1]	146,098	123,527	443,855	373,507
(Loss) income from operations	[1]	(17,258)	(2,301)	(32,485)	54,659
Foreign currency transaction loss	[1]	399	(5,052)	558	(6,549)
Interest income, net	[1]	683	140	2,076	547
Other income, net	[1]			363	287
(Loss) income before benefit from income taxes	[1]	(16,176)	(7,213)	(29,488)	48,944
Benefit from income taxes	[1]	(8,589)	(8,501)	(23,692)	(9,009)
Net (loss) income	[1]	$ (7,587)	$ 1,288	$ (5,796)	$ 57,953
(Loss) earnings per share:
Basic	[1]	$ (0.10)	$ 0.01	$ (0.07)	$ 0.75
Diluted	[1]	$ (0.10)	$ 0.01	$ (0.07)	$ 0.70
Weighted-average number of common shares outstanding:
Basic	[1]	78,700	77,691	78,525	77,258
Diluted	[1]	78,700	83,323	78,525	82,717
Software license
Revenue:
Total revenue	[1]	$ 52,342	$ 53,234	$ 184,899	$ 231,392
Cost of revenue:
Total cost of revenue	[1]	1,255	1,276	3,772	3,826
Maintenance
Revenue:
Total revenue	[1]	66,017	61,812	196,448	179,949
Cost of revenue:
Total cost of revenue	[1]	6,079	6,716	18,035	20,945
Services
Revenue:
Total revenue	[1]	84,904	75,911	253,877	222,521
Cost of revenue:
Total cost of revenue	[1]	$ 67,089	61,739	$ 202,047	180,925
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			179,815		601,042
Cost of revenue:
Total cost of revenue			69,731		205,696
Gross profit			110,084		395,346
Operating expenses:
Selling and marketing			70,209		217,384
Research and development			41,031		121,089
General and administrative			13,133		38,174
Total operating expenses			124,373		376,647
(Loss) income from operations			(14,289)		18,699
Foreign currency transaction loss			(552)		(793)
Interest income, net			144		470
Other income, net					287
(Loss) income before benefit from income taxes			(14,697)		18,663
Benefit from income taxes			(12,885)		(17,952)
Net (loss) income			$ (1,812)		$ 36,615
(Loss) earnings per share:
Basic			$ (0.03)		$ 0.47
Diluted			$ (0.03)		$ 0.44
Weighted-average number of common shares outstanding:
Basic			77,691		77,258
Diluted			77,691		82,717
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 | Software license
Revenue:
Total revenue			$ 41,793		$ 195,220
Cost of revenue:
Total cost of revenue			1,276		3,826
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 | Maintenance
Revenue:
Total revenue			62,204		180,759
Cost of revenue:
Total cost of revenue			6,716		20,945
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 | Services
Revenue:
Total revenue			75,818		225,063
Cost of revenue:
Total cost of revenue			61,739		180,925
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			11,142		32,820
Cost of revenue:
Gross profit			11,142		32,820
Operating expenses:
Selling and marketing			(846)		(3,140)
Total operating expenses			(846)		(3,140)
(Loss) income from operations			11,988		35,960
Foreign currency transaction loss			(4,500)		(5,756)
Interest income, net			(4)		77
(Loss) income before benefit from income taxes			7,484		30,281
Benefit from income taxes			4,384		8,943
Net (loss) income			3,100		21,338
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | Software license
Revenue:
Total revenue			11,441		36,172
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | Maintenance
Revenue:
Total revenue			(392)		(810)
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | Services
Revenue:
Total revenue			$ 93		$ (2,542)
[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.
[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		Sep. 30, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		$ 100,371	$ 61,753
Unrealized Gains		1	1
Unrealized Losses		(590)	(285)
Fair Value	[1]	99,782	61,469
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		46,633	32,996
Unrealized Losses		(267)	(148)
Fair Value		46,366	32,848
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		53,738	28,757
Unrealized Gains		1	1
Unrealized Losses		(323)	(137)
Fair Value		$ 53,416	$ 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)	9 Months Ended
	Sep. 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	2018-10
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		Sep. 30, 2018	Dec. 31, 2017
Accounts Receivable and Unbilled Receivable [Line Items]
Accounts receivable	[1]	$ 150,733	$ 222,735
Unbilled receivables	[1]	155,964	158,898
Long-term unbilled receivables	[1]	168,929	160,708
Total receivables		$ 475,626	$ 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	Sep. 30, 2018USD ($)
Accounts Receivable and Unbilled Receivable [Line Items]
1 Year or Less	$ 155,964
1-2 Years	89,177
2-5 Years	79,752
Total	$ 324,893
Percentage of unbilled receivables, 1 Year or Less	48.00%
Percentage of unbilled receivables, 1-2 Years	27.00%
Percentage of unbilled receivables, 2-5 Years	25.00%
Total percentage of unbilled receivables	100.00%

Summary of Contract Assets and

Summary of Contract Assets and Deferred Revenue (Detail) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Accounts Receivable Net [Line Items]
Contract assets	[1]	$ 2,888	$ 914
Long-term contract assets	[2]	1,581
Total contract assets		4,469	914
Deferred revenue	[3]	158,178	166,297
Long-term deferred revenue	[4]	5,840	3,706
Total deferred revenue		$ 164,018	$ 170,003
[1]	Included in other current assets.
[2]	Included in other long-term assets.
[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.

Receivables, Contract Assets,_3

Receivables, Contract Assets, and Deferred Revenue - Additional Information (Detail) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)	Dec. 31, 2017
Accounts Receivable Net [Line Items]
Deferred Revenue	$ 225.1
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)	9 Months Ended
	Sep. 30, 2018
Amortized period	5 years

Schedule of Impairment of Defer

Schedule of Impairment of Deferred Contract Costs (Detail) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Deferred Contract Cost [Line Items]
Deferred contract costs	[1]	$ 50,799	$ 37,924
[1]	Included in other long-term assets.

Schedule of Amortization of Def

Schedule of Amortization of Deferred Contract Costs (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Deferred Contract Cost [Line Items]
Amortization of deferred contract costs	[1]	$ 4,208	$ 3,034	$ 11,806	$ 8,529
[1]	Included in selling and marketing expenses.

Change in Carrying Amount of Go

Change in Carrying Amount of Goodwill (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Goodwill [Line Items]
Balance as of January 1,	$ 72,952	[1]
Currency translation adjustments	(55)
Balance as of September 30,	$ 72,897	[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		9 Months Ended	12 Months Ended
		Sep. 30, 2018	Dec. 31, 2017
Goodwill and Other Intangible Assets [Line Items]
Cost		$ 127,439	$ 127,467
Accumulated Amortization		(104,061)	(95,568)
Net Book Value	[1]	23,378	31,899
Client related intangibles
Goodwill and Other Intangible Assets [Line Items]
Cost		63,136	63,164
Accumulated Amortization		(49,633)	(44,835)
Net Book Value	[1]	$ 13,503	$ 18,329
Client related intangibles | Minimum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives		4 years	4 years
Client related intangibles | Maximum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives		10 years	10 years
Technology
Goodwill and Other Intangible Assets [Line Items]
Cost		$ 58,942	$ 58,942
Accumulated Amortization		(49,067)	(45,372)
Net Book Value	[1]	$ 9,875	$ 13,570
Technology | Minimum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives		3 years	3 years
Technology | Maximum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives		10 years	10 years
Other intangibles
Goodwill and Other Intangible Assets [Line Items]
Cost		$ 5,361	$ 5,361
Accumulated Amortization		$ (5,361)	$ (5,361)
Other intangibles | Minimum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives		1 year	1 year
Other intangibles | Maximum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives		5 years	5 years
[1]	Included in other long-term assets.

Amortization of Intangible Asse

Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 2,835	$ 3,105	$ 8,508	$ 9,479
Cost of revenue
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	1,232	1,232	3,695	3,871
Selling and marketing
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 1,603	$ 1,873	$ 4,813	$ 5,608

Schedule of Accrued Expenses (D

Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Schedule of Accrued Liabilities [Line Items]
Outside professional services		$ 11,638	$ 14,468
Income and other taxes		3,971	7,420
Marketing and sales program expenses		4,623	6,444
Dividends payable		2,365	2,344
Employee-related expenses		5,212	4,065
Other		12,020	10,767
Total accrued expenses	[1]	$ 39,829	$ 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 ($)	9 Months Ended
	Sep. 30, 2018	Sep. 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		Sep. 30, 2018	Dec. 31, 2017
Fair Value Assets
Cash equivalents		$ 25,424	$ 42,771
Total marketable securities		99,782	61,469
Municipal bonds
Fair Value Assets
Total marketable securities		46,366	32,848
Corporate bonds
Fair Value Assets
Total marketable securities		53,416	28,621
Investments in Privately-Held Companies
Fair Value Assets
Investments in privately-held companies	[1]	2,890	1,030
Level 1
Fair Value Assets
Cash equivalents		10,212	2,720
Level 2
Fair Value Assets
Cash equivalents		15,212	40,051
Total marketable securities		99,782	61,469
Level 2 | Municipal bonds
Fair Value Assets
Total marketable securities		46,366	32,848
Level 2 | Corporate bonds
Fair Value Assets
Total marketable securities		53,416	28,621
Level 3 | Investments in Privately-Held Companies
Fair Value Assets
Investments in privately-held companies	[1]	$ 2,890	$ 1,030
[1]	Included in other long-term assets.

Revenue - Additional Informatio

Revenue - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 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		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenue	[1]	$ 203,263	$ 190,957	$ 635,224	$ 633,862
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue		52,342	53,234	184,899	231,392
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Total revenue		150,921	137,723	450,325	402,470
Perpetual License
Disaggregation of Revenue [Line Items]
Total revenue		20,276	12,623	56,829	81,819
Term License
Disaggregation of Revenue [Line Items]
Total revenue		32,066	40,611	128,070	149,573
Maintenance
Disaggregation of Revenue [Line Items]
Total revenue	[1]	66,017	61,812	196,448	179,949
Cloud
Disaggregation of Revenue [Line Items]
Total revenue		22,184	13,280	57,967	36,207
Consulting
Disaggregation of Revenue [Line Items]
Total revenue		62,720	62,631	195,910	186,314
Subscription
Disaggregation of Revenue [Line Items]
Total revenue	[2]	120,267	115,703	382,485	365,729
United States
Disaggregation of Revenue [Line Items]
Total revenue		103,075	105,059	327,409	376,819
Other Americas
Disaggregation of Revenue [Line Items]
Total revenue		10,424	9,307	37,766	32,890
United Kingdom (U.K.)
Disaggregation of Revenue [Line Items]
Total revenue		19,277	18,537	68,450	67,403
Europe (excluding U.K.), Middle East, and Africa
Disaggregation of Revenue [Line Items]
Total revenue		42,254	31,109	101,150	81,557
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue		$ 28,233	$ 26,945	$ 100,449	$ 75,193
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		51.00%	55.00%	51.00%	59.00%
Total Revenue | Other Americas
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net		5.00%	5.00%	6.00%	5.00%
Total Revenue | United Kingdom (U.K.)
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net		9.00%	10.00%	11.00%	11.00%
Total Revenue | Europe (excluding U.K.), Middle East, and Africa
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net		21.00%	16.00%	16.00%	13.00%
Total Revenue | Asia Pacific
Disaggregation of Revenue [Line Items]
Percentage of sale revenue net		14.00%	14.00%	16.00%	12.00%
[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.
[2]	Subscription revenue reflects client arrangements (term license, cloud, and maintenance) which may be subject to a renewal.

Revenue for Remaining Performan

Revenue for Remaining Performance Obligations Expected to be Recognized (Detail) $ in Thousands	Sep. 30, 2018USD ($)
1 year or less	$ 312,853
1-2 years	98,075
2-3 years	59,639
Greater than 3 years	51,763
Total	$ 522,330
Percentage of remaining performance obligations,1 year or less	60.00%
Percentage of remaining performance obligations, 1-2 years	19.00%
Percentage of remaining performance obligations, 2-3 years	11.00%
Percentage of remaining performance obligations, Greater than 3 years	10.00%
Total percentage of remaining performance obligations	100.00%
Perpetual License
1 year or less	$ 25,343
1-2 years	6,490
2-3 years	360
Greater than 3 years	1,306
Total	33,499
Term License
1 year or less	44,283
1-2 years	10,063
2-3 years	1,598
Greater than 3 years	218
Total	56,162
Maintenance
1 year or less	140,591
1-2 years	8,877
2-3 years	2,586
Greater than 3 years	1,079
Total	153,133
Cloud
1 year or less	88,529
1-2 years	70,815
2-3 years	54,646
Greater than 3 years	49,110
Total	263,100
Consulting
1 year or less	14,107
1-2 years	1,830
2-3 years	449
Greater than 3 years	50
Total	$ 16,436

Total Revenue of Major Clients

Total Revenue of Major Clients (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue, Major Customer [Line Items]
Total revenue	$ 203,263	$ 190,957	$ 635,224	$ 633,862
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	10.00%	10.00%

Total Revenue of Major Client_2

Total Revenue of Major Clients (Parenthetical) (Detail) - Total Revenue	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 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	10.00%	10.00%
Credit Concentration Risk | Client A | Maximum
Revenue, Major Customer [Line Items]
Concentration risk, percentage			10.00%

Summary of Stock Based Compensa

Summary of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018		Sep. 30, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 16,408	$ 13,489	$ 47,573	[1]	$ 39,929	[1]
Income tax benefit	(3,555)	(4,129)	(10,037)		(12,231)
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	4,319	3,613	12,277		10,913
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	6,198	3,976	16,895		11,482
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	3,917	3,420	11,356		10,306
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 1,974	$ 2,480	$ 7,045		$ 7,228
[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	9 Months Ended
	Sep. 30, 2018USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense | $	$ 74.2
Weighted-average period of recognition of unrecognized stock-based compensation expense (in years)	2 years 2 months 12 days
Shares issued | shares	1.2

Stock-based compensation - Summ

Stock-based compensation - Summary of stock based compensation award granted (Detail) - Employees $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)shares
RSUs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares granted, RSUs | shares	1,117	[1]
Fair value of shares granted | $	$ 65,569	[1]
Nonqualified Stock Options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares granted, options | shares	1,623
Fair value of shares granted | $	$ 29,372
[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 - Su_2

Stock-based compensation - Summary of stock based compensation award granted (Parenthetical) (Detail) - RSUs - Employees shares in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)shares
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
RSUs granted in connection with the current year's 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		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Rate Reconciliation [Line Items]
Benefit from income taxes	[1]	$ (8,589)	$ (8,501)	$ (23,692)	$ (9,009)
Effective income tax rate				80.00%	(18.00%)
[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	9 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 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		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earning per share reconciliation
Net (loss) income	[1]	$ (7,587)	$ 1,288	$ (5,796)	$ 57,953
Weighted-average common shares outstanding	[1]	78,700	77,691	78,525	77,258
(Loss) earnings per share, basic	[1]	$ (0.10)	$ 0.01	$ (0.07)	$ 0.75
Net (loss) income	[1]	$ (7,587)	$ 1,288	$ (5,796)	$ 57,953
Effect of dilutive securities			5,632		5,459
Weighted-average common shares outstanding, assuming dilution	[1]	78,700	83,323	78,525	82,717
(Loss) earnings per share, diluted	[1]	$ (0.10)	$ 0.01	$ (0.07)	$ 0.70
Outstanding anti-dilutive stock options and RSUs	[2]	6,119	105	6,380	219
Stock Options
Earning per share reconciliation
Weighted-average effect of dilutive securities			3,681		3,519
RSUs
Earning per share reconciliation
Weighted-average effect of dilutive securities			1,951		1,940
[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.