Pegasystems Inc at Citi TMT Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Steven Enders - Citi - Analyst : <_ALACRA_META_ABSTRACT>Yeah. Maybe just to start, I don't know even know how long you've been public at this point, but maybe for those who might be a little bit newer to Pega, just -- what do they understand about your business and some of the key initiatives for Pega?

Question: Steven Enders - Citi - Analyst : All right. Well, that sounds good. I think there's been a big focus over the past couple of days around AI, around the depth of SaaS, as I think people have been putting it, and the impact of vibe coding in the market. How do you see that impacting SaaS in general? And how do you see it kind of impacting the future of Pega? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 8:10PM, PEGA.OQ - Pegasystems Inc at Citi TMT Conference

Question: Steven Enders - Citi - Analyst : I think that makes sense. I think one of the questions that I think we tend to get around Pega sometimes is I think there's the view of like low code, and you get the question of if you have these cogeneration solutions is what does that mean for the adoption of low code from enterprise customers? Like why would they pick to use a platform like Pega where they could try to build themselves more efficiently? I guess what's your kind of perspective on that?

Question: Steven Enders - Citi - Analyst : Okay. That makes sense. Let's talk about Blueprint because I think that's been, I think, a really interesting area that I think has been pretty -- I think definitely it separated you from others in the industry. But can we just talk about kind of where Blueprint is today and kind of where we are in terms of the customer adoption cycle and their use of Blueprints?

Question: Steven Enders - Citi - Analyst : I guess as we think about what that means for the business model, anything that you can share on what it's doing for deal velocity, maybe what it's doing for new ACV, what it's doing for the top line? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 8:10PM, PEGA.OQ - Pegasystems Inc at Citi TMT Conference

Question: Steven Enders - Citi - Analyst : Okay. That's great to hear. Maybe that's a good point to kind of then dig into just on what Blueprint can enable, like what you've done recently from a product perspective that can kind of better enable that legacy transformation and kind of really go capture some of those use cases out there?

Question: Steven Enders - Citi - Analyst : That's good to hear. Maybe I'll ask it a little bit differently. Like if you think back to when you were coming into Citi, I think, almost 40 years ago, as customer number one for Pega, how would you have done that differently based on where Pega is today, what the capabilities that you have now?

Question: Steven Enders - Citi - Analyst : Yeah. No, that's great to hear. I mean, I think Blueprint has been pretty exciting. Where are we at maybe from utilizing Blueprints, taking that into creating a production application with Pega and utilizing that Blueprint on the Pega platform?

Question: Steven Enders - Citi - Analyst : Maybe that's a good example to maybe go off of, like for that Vodafone example you're talking about of them, using Blueprint for that application. Like if they were to do that in a more traditional method or in the past, how long would it have taken them to get REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 8:10PM, PEGA.OQ - Pegasystems Inc at Citi TMT Conference that released? If they were using a kind of, I guess, more like code approach versus using Pega, just what would that look like from a -- how would it be different?

Question: Steven Enders - Citi - Analyst : Okay. That makes sense. Maybe shifting gears a little bit, talk about the go-to-market side a little bit -- a little bit more. I think for one, it seems like there has been more of a focus on driving new logos, driving to find new customers, new opportunities. I guess what is -- what does Blueprint enable that allows you to maybe lean into that motion again? And then how do you kind of think about the opportunity with partners to also kind of augment that approach?

Question: Steven Enders - Citi - Analyst : Okay. That makes sense. I do want to talk a little bit about maybe how that translates to the top line again and what that means for ACV growth. I mean, I think we've had a few quarters now of kind of accelerating top line. Just how much of that is kind of driven by what's going on with Blueprint? How do you kind of think about the customer demand at this point for taking on these kind of solutions, just kind of given the uncertainty that's out there? And maybe we can start from there, and we'll dig in a bit.

Question: Steven Enders - Citi - Analyst : I guess, maybe how are the use cases that you're maybe seeing today different than maybe how it was a couple of years ago, maybe pre-Blueprint?

Question: Steven Enders - Citi - Analyst : That makes sense. I may have a couple of minutes left. I do want to ask on the model again. Just -- I think, you grew 14% this past quarter in ACV. I think that's been kind of above what you were targeting for the year. Just what should we be kind of keeping into mind for the back part of the year to kind of bridge that gap? Or is there opportunity for us to kind of see growth above that level? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 8:10PM, PEGA.OQ - Pegasystems Inc at Citi TMT Conference

Question: Steven Enders - Citi - Analyst : And then on the cash flow side, I know there's the new tax bill that came out in the past couple of months. How should we think about the impact that maybe that has on the model for this year and kind of next year?

Question: Steven Enders - Citi - Analyst : Okay. All right. I think we're out of time here. But Alan and Ken, I want to thank you so much again for being here. And I want to thank everybody in the room for being here as well. So thanks again.