Created by Nov

PEGASYSTEMS
TABLE1
Form Type: EDGAR INC Online,
2017 aofdivision of04-2787865
Donnelley Financial S
Period
Date or 8-K
End:
Filed: Nov08,
Massachusetts
(State other
incorporation) 08,2017
jurisdiction (IRS Employer
Identification No.)
Created by Nov
PEGASYSTEMS
TABLE2
FormFiled:
Date Type:
Period End:EDGAR
8-K INC
Nov08,
08,Online,
2017andaNon-GAAPFinancial
2017 division of Donnelley Financial Solutions
Select GAAP Metrics (1)

Three Months
September 30,Ended
($
Netinincome/(loss)
Total thousands
amounts)
revenue except
(GAAP) per share
(Non-GAAP)
(loss)/income (GAAP)
(Non-GAAP)
(loss)/earnings $ 2017 $
179,815
(1,812)
4,191 2016
182,802
183,460
3,301
13,056 Change
(2
(155
(68
(GAAP)
Diluted earnings/(loss)
(Non-GAAP) per share (0.03)
0.05 0.04 (175
0.16 (69
 Nine Months30,
September Ended
%) $ 2017
601,042
0.44 $
36,615
48,398 2016
550,656
552,164
18,237
45,504
0.23 Change 9%
101%
6%
91%
%) 0.59 0.57 4%
Created
Period
Date by Nov
PEGASYSTEMS
TABLE3
Form Type:
End:
Filed: EDGAR
8-K INC
Nov08, Online,
08,2017
2017 a division of Donnelley Financial Solutions
Select Performance Metrics
Annual Contract Value (ACV) (1)

(in thousands)
Term license and
Maintenance ACVCloud ACV $ 2017 September
200,180
248,816 $ 30, 2016
163,408
220,152
Term license, Cloud and Maintenance ACV $ 448,996 $ 383,560
Change23%
13%
17%
Created
Period
Date by Nov
PEGASYSTEMS
TABLE4
Form Type:
End:
Filed: EDGAR
8-K
Nov INC Online,
2017 a division of Donnelley Financial Solutions
08,2017
08,
Recurring Revenue

($ in thousands)
Term
Cloud license(1)
Maintenance $ 21,678
13,354
62,204 Three
$ Months
2017 September 30,Ended28,919
2016 Change-25%
10,873
55,038 23%
13%
Total recurring revenue $ 97,236 $ 94,830 3%
Recurring
total revenue as a percent of
revenue 54% 52%
$ 36,914
180,759 Nine
$ Months30,
2017 September
106,170 Ended 2016 Change20%
102,115
30,640
163,174 4%
11%
$ 323,843 $ 295,929 9%
54% 54%
Created
Period
Date by Nov
PEGASYSTEMS
Type:
End:
Filed: EDGAR
BALANCE_SHEET
Form 8-K INC
NovCloudOnline,
08,2017
08, 2017 a division of Donnelley Financial Solutions
License and Backlog (1)

($ in thousands)
Deferred
balance
Term license
sheet:
license
Perpetual andand
license cloud revenue on the
cloud $ 2017 September 30,49%
25,658
24,929 51%
Total deferred license and cloud revenue $ 50,587 100%
License
on
Perpetual and
thelicense
Term cloud
balanceand
license contractual commitments not
sheet:
cloud $ 450,535
46,459 91%
9%
Total license and cloud commitments $ 496,994 100%
Total license (term and perpetual) and cloud
backlog $ 547,581
Total term license and cloud backlog $ 476,193 87%
$ 2016
19,627
27,653 42% Change-10%
58% 31%
$ 47,280 100% 7%
$ 352,804
23,483 94%
6% 28%
98%
$ 376,287 100% 32%
$ 423,567 29%
$ 372,431 88% 28%
Created by Nov
PEGASYSTEMSEDGAR
INCOME_STATEMENT
FormFiled:
Type:
Period
Date End: 8-K INC
Nov08, Online,
2017 a division
08,2017 of Donnelley Financial Solutions
PEGASYSTEMS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

Revenue:
Software license
Maintenance
Services Three
$ Months
September 30,Ended41,793
2017
62,204
75,818
Total revenue 179,815
Cost of revenue:
Software
Maintenance
Services license 1,276
6,716
61,739
Total cost of revenue 69,731
Gross profit 110,084
Operating
Selling
Research
General and
andexpenses:
marketing
and development
administrative
Acquisition-related 70,209
41,031
13,133
-
Total operating expenses 124,373
(Loss)/income
Foreign
Interest income, from
currency net
Other income/(expense),operations
transaction
net (loss)/gain (14,289)
(552)
144
-
(Loss)/income
income taxes before
(Benefit)/provision for (benefit)/provision
income taxes for (14,697)
(12,885)
Net (Loss)/income $ (1,812)
(Loss)/earnings
Basic
Diluted pernumber
share: of common shares
Weighted-average
outstanding:
Basic
Diluted
Cash dividends declared per share $$ (0.03)
77,691
0.03
$ 68,833
55,038
58,931 Nine
$ Months30,
2016 September Ended 2017 $
195,220
180,759
225,063 2016
207,849
163,174
179,633
182,802 601,042 550,656
1,313
6,659
52,465 3,826
20,945
180,925 3,646
18,889
154,512
60,437 205,696 177,047
122,365 395,346 373,609
67,032
38,036
11,725
74 217,384
121,089
38,174
- 202,126
108,530
34,067
2,903
116,867 376,647 347,626
5,498
1,082
172
(1,237) 18,699
(793)
470
287 25,983
2,764
650
(4,891)
5,515
2,214 18,663
(17,952) 24,506
6,269
$ 3,301 $ 36,615 $ 18,237
$
$ 0.03 $
0.04
76,278
79,548 $ 0.47
0.09 $
0.44
77,258
82,717 $ 0.24
0.23
76,323
79,401
0.09
Created
TABLE5 by Nov
PEGASYSTEMS
FormFiled:
Type:
Period
Date End:EDGAR
8-K INC
Nov08, Online,
2017 a division of Donnelley
08,2017 Financial Solutions
PEGASYSTEMS INC.
UNAUDITED RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
(in thousands, except % and per share amounts)

GAAP total
Deferred revenue
revenue
accounting purchase $ Three Months
2017
179,815
- $ Ended
September 30, 2016
658 Change
182,802 (2
Non-GAAP total revenue $ 179,815 $ 183,460 (2
GAAP gross
Deferred
Amortization
Stock-based profit
revenue
accounting of purchase
intangible
compensation assets
(2) $ 110,084
-
1,232
3,613 $ 122,365
658 (10
1,642
3,117
Non-GAAP gross profit $ 114,929 $ 127,782 (10
GAAP (loss)/income
Deferred revenue
accounting
Amortization
Stock-based
Other of from assets
purchase
intangible
compensation operations
(2) $ (14,289)
--
3,105
13,489 $ 5,498
84 (360
658
3,599
10,818
Non-GAAP
operations income/(loss) from $ 2,305 $ 20,657 (89
GAAP net
Deferred
accounting
Stock-based
Other
Income tax(loss)/income
revenue
Amortization of purchase
intangible
compensation
effects (3) assets
(2) $ (1,812)
--
3,105
13,489
(10,591) $ 3,301
84 (155
658
3,599
10,818
(5,404)
Non-GAAP net income/(loss) $ 4,191 $ 13,056 (68
GAAP
share diluted
Deferred
accounting
Amortization
Stock-based
Other of(loss)/earnings
revenue purchase
intangible
compensation (2)per
assets $ (0.03)
--
0.04
0.16 $ 0.04
- (175
0.01
0.05
0.14
Income tax effects (3) (0.12) (0.08)
Non-GAAP
per share diluted earnings/(loss) $ 0.05 $ 0.16 (69
GAAP
shares
Non-GAAP
common diluted weighted
outstanding
Anti-dilutive awards
diluted
shares average
weighted
outstanding average 77,691
5,632
83,323 79,548
- (2
79,548 5%
ASURES (1)

%) Nine
$ Months30,
September Ended 2017
601,042
- $ 2016 Change 9%
550,656
1,508
%) $ 601,042 $ 552,164 9%
%) $ 395,346
-
3,871
10,913 $ 373,609
1,508
4,626
8,711 6%
%) $ 410,130 $ 388,454 6%
%) $ 18,699
--
9,479
39,929 $ 25,983
1,508
10,168
30,634
2,341 -28%
%) $ 68,107 $ 70,634 -4%
%) $ 36,615
--
9,479
39,929
(37,625) $ 18,237
1,508
10,168
30,634
2,341
(17,384) 101%
%) $ 48,398 $ 45,504 6%
%) $ 0.44
--
0.11
0.48
(0.44) $ 0.23
0.02
0.13
0.39
0.03
(0.23) 91%
%) $ 0.59 $ 0.57 4%
%) 82,717
-
82,717 79,401
-
79,401 4%
4%
Created
Form
Period
Date by Nov
PEGASYSTEMS
TABLE6 Type:
End:
Filed: EDGAR
8-K INC
Nov08, Online,
2017 a division of Donnelley FinancialThree
08,2017 Solutions
(in
Cost thousands)
Sellingof and
Research
General revenues
andmarketing
and development
administrative $ Months
September 30,Ended 3,613
2017
3,976
3,420
2,480 $ 2016
3,117
3,468
2,260
1,983
Acquisition-related - (10)
Total stock-based compensation before tax $ 13,489 $ 10,818
Income tax benefit (4,129) (3,227)
Nine
$ Months30,
September Ended10,913
2017
11,482
10,306
7,228 $ 2016
8,711
9,395
7,480
4,706
- 342
$ 39,929 $ 30,634
(12,231) (8,917)
Created by EDGAR
PEGASYSTEMS
TABLE7
FormFiled:
Period
Date Type:
End: 8-K INC
Nov08, Online,
2017 a division of Donnelley
08,2017 Financial Solutions
EffectiveNov
tax rate (GAAP)
(Non-GAAP) Three
(121 Months
September Ended
30,)%
2017
88% 2016 Nine
40% (96
37% Months
September Ended
30,)%
2017
29%
2016
26%
34%
Created
Form
Period
Date by Nov
PEGASYSTEMS
Type:
End:
Filed: EDGAR
BALANCE_SHEET2
8-K INC
Nov08, Online,
2017 a division of Donnelley Financial Solutions
08,2017
PEGASYSTEMS INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

Assets:
Total
Othercash,
securities
Trade
Property
Deferred
Goodwill andcash
accounts
income
assets equivalents,
receivable,
equipment,
taxes assets,
Intangible and
netnet marketable
net
Total assets
Liabilities
Accrued
expenses
Deferred
Other and equity
revenue
liabilities
Stockholders' Stockholders'
expenses, includingEquity:
compensation and related
Total liabilities and stockholders' equity
September
$ 30, 2017 December 31,
194,380 2016
58,525 $
191,161
39,849
73,459
107,696 133,761
265,028
38,281
69,898
117,355
30,333
$ 665,070 $ 654,656
$ 93,550
32,758 $
167,061
371,701 97,411
186,636
34,720
335,889
$ 665,070 $ 654,656
Created by Nov
PEGASYSTEMS
CASH_FLOW
FormFiled:
Date Type:
Period End:EDGAR
8-K INC
Nov08, Online,
2017 a division of Donnelley Financial Solutions
08,2017
Created
Form
Period
Date by Nov
PEGASYSTEMS
CASH_FLOW
Type:
End:
Filed: EDGAR
8-K INC
Nov08, Online,
2017 a division of Donnelley Financial Solutions
08,2017
PEGASYSTEMS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

Operating
Net Income
Adjustments
operating
loss, activities:
to reconcile
activities:
Depreciation,
andinother
Stock-based net
amortization,
non-cash
compensation income
foreign
items
expense to cash
currency provided by
transaction
Change operating assets and liabilities, net
Cash provided by operating activities
Cash used in investing activities
Cash used in financing activities
Effect of exchange rates on cash and cash equivalents
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
Nine
$ Months30,
September Ended36,615
2017 2016
39,929 $
16,800
20,582 18,237
12,444
30,634
(40,759)
113,926 20,556
(11,966) (2,859)
(44,040) (43,031)
2,054 (1,309)
59,974 (26,643)
70,594 93,026
$ 130,568 $ 66,383