Pegasystems Inc at Citizens JMP Technology Conference Transcript

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

Question: Austin Cole - Citizens - Analyst : Yes. I'd love to spend just kind of a couple of minutes rounding out your kind of background, right? You've been at Pega for nearly 10 years. Is that right?

Question: Austin Cole - Citizens - Analyst : Yes. And so you started at PwC. You're at an aerospace company. And then a variety of other software companies until Pegasystems. So what originally kind of attracted you to Pegasystems about nine years ago?

Question: Austin Cole - Citizens - Analyst : And then maybe just quickly to for those of you who may not be as familiar with Pegasystems, maybe you could kind of walk through what are kind of the solutions that you provide to your customers, the markets that you play in, just to help us kind of level set (inaudible).

Question: Austin Cole - Citizens - Analyst : Yes. And we're going to get into more of that. So let's, I guess, talk now about kind of where Pega is today. And on that front, maybe just kind of open-ended question just how is business?

Question: Austin Cole - Citizens - Analyst : Got you. And then -- maybe let's definitely get a chance to talk about BLUEPRINT. And maybe it would be helpful kind of what is BLUEPRINT as a product? And you've just kind of outlined Pegasystems solutions, how you kind of interact with your clients? Where does Pega -- the BLUEPRINT that is fit into that equation? And what can it do for your business?

Question: Austin Cole - Citizens - Analyst : And it's a constantly evolving piece of technology you guys are innovating a lot there. I think Pega agent experience announcement is demonstrated (inaudible) that.

Question: Austin Cole - Citizens - Analyst : So from a business standpoint, so you're in the middle of a cloud transition, right? And so BLUEPRINT is playing a role there and kind of accelerating that. And I think what you've said is -- so finishing the year 2024, right, 9% ACV, 11% constant currency. The guidance is 12% for next year. So maybe REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 5:00PM, PEGA.OQ - Pegasystems Inc at Citizens JMP Technology Conference just walk us through kind of what are your expectations in terms of kind of blue parent relative to that guidance? What's baked in from kind of a Pega Cloud ACV standpoint and just how you kind of expect 2025 to play out there?

Question: Austin Cole - Citizens - Analyst : Okay. And so you guys do not guide quarterly, only to the year. And traditionally, it's been kind of a lumpy business, you could say. And over time, as that cloud transition plays out, that will probably change, right?

Question: Austin Cole - Citizens - Analyst : Certainly. So when you look at the ACV guide for the year, how much of that might come in Q1 versus as a percent of the total year, is kind of you'd expect, okay, four quarters in a year? Is it 25% or higher or Where might that be?

Question: Austin Cole - Citizens - Analyst : Got you. And then the other important metric that you look at is free cash flow, right? So really, when you're kind of evaluating your business, you have and free cash flow and I think Pega achieved Rule of 40 last quarter on those two metrics. What's kind of your confidence level in maintaining that Rule of 40 over time? There's really been tremendous free cash flow growth. But how should we maybe think about that other side of the equation as well.

Question: Austin Cole - Citizens - Analyst : Okay. So maybe stepping back from the numbers a little bit. Just with this BLUEPRINT product, and I think you've spoken about kind of what you're doing from a go-to-market perspective with kind of targeting new logos. Just maybe walk us through kind of how you're tooling internally to kind of go after this opportunity in terms of new logos and with BLUEPRINT and yes.

Question: Austin Cole - Citizens - Analyst : It was released in Q1 of last year. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 5:00PM, PEGA.OQ - Pegasystems Inc at Citizens JMP Technology Conference

Question: Austin Cole - Citizens - Analyst : I actually had a point there, which is just right. So BLUEPRINT as is in the name, it's like it's a blueprint, right? So it's not actually going into production. And so the question is kind of right -- do the blueprints need to go live in order to have a positive impact on your business and for your customers, too, right? So -- and for those of you that don't know, you can go on the site and try it yourself, right? So what has kind of even just aside from the applications going live, but just from kind of a brainstorming capabilities standpoint, like what impact does that have?

Question: Austin Cole - Citizens - Analyst : And what are some of the most common use cases you're seeing that actually make it to that go live? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 5:00PM, PEGA.OQ - Pegasystems Inc at Citizens JMP Technology Conference

Question: Austin Cole - Citizens - Analyst : Great. Well, we have just a couple of minutes left. I do want to give an opportunity to the audience if there are any questions out there for Ken. If not, it's been a pleasure, Ken, and we'll wrap there.