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REVENUE (Tables)
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue by Geographic Area Geographic revenue
(Dollars in thousands)202120202019
U.S.$690,133 57 %$613,844 61 %$525,191 57 %
Other Americas61,339 5 %49,441 5 %60,536 7 %
United Kingdom (“U.K.”)117,580 10 %91,517 9 %87,382 10 %
Europe (excluding U.K.), Middle East, and Africa 198,080 16 %156,056 15 %137,946 15 %
Asia-Pacific144,521 12 %106,659 10 %100,328 11 %
$1,211,653 100 %$1,017,517 100 %$911,383 100 %
Disaggregation of Revenue
Revenue streams
(in thousands)202120202019
Perpetual license$32,172 $28,558 $80,015 
Subscription license336,248 266,352 199,433 
Revenue recognized at a point in time368,420 294,910 279,448 
Maintenance320,257 296,709 280,580 
Pega Cloud300,966 208,268 133,746 
Consulting222,010 217,630 217,609 
Revenue recognized over time843,233 722,607 631,935 
$1,211,653 $1,017,517 $911,383 
(in thousands)202120202019
Pega Cloud$300,966 $208,268 $133,746 
Maintenance320,257 296,709 280,580 
Subscription services621,223 504,977 414,326 
Subscription license336,248 266,352 199,433 
Subscription957,471 771,329 613,759 
Perpetual license32,172 28,558 80,015 
Consulting222,010 217,630 217,609 
1,211,653 1,017,517 911,383 
Remaining Performance Obligations on Existing Contracts
The Company’s typical performance obligations are:
Performance obligation
How standalone selling price is typically determined
When performance obligation is typically satisfied
When payment is typically Due
Income statement line item
Perpetual licenseResidual approach
Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time)
Effective date of the license
Perpetual License
Term licenseResidual approach
Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time)
Annually, or more frequently, over the term of the license
Subscription license
Maintenance
Consistent pricing relationship as a percentage of the related license and observable in stand-alone renewal transactions (1)
Ratably over the term of the maintenance (over time)Annually, or more frequently, over the term of the maintenance
Subscription services
Pega CloudResidual approachRatably over the term of the service (over time)Annually, or more frequently, over the term of the service
Subscription services
Consulting
- time and materials
Observable hourly rate for time and materials-based services in similar geographies
Based on hours incurred to date (over time)
Monthly
Consulting
Consulting
- fixed price
Observable hourly rate for time and materials-based services in similar geographies multiplied by estimated hours for the project
Based on hours incurred as a percentage of total estimated hours (over time)
As contract milestones are achieved
Consulting
(1) Technical support and software updates are considered distinct services but accounted for as a single performance obligation, as they have the same pattern of transfer to the client.
Expected future revenue from existing non-cancellable contracts:
As of December 31, 2021:
(Dollars in thousands)Subscription servicesSubscription
products		Perpetual
license		ConsultingTotal
MaintenancePega Cloud
1 year or less
$234,917 $330,426 $153,467 $10,952 $41,411 $771,173 58 %
1-2 years
65,502 220,231 14,968 4,505 8,917 314,123 23 %
2-3 years
38,432 124,969 1,955 2,252 5,512 173,120 13 %
Greater than 3 years
28,157 55,937 1,765 — 619 86,478 6 %
$367,008 $731,563 $172,155 $17,709 $56,459 $1,344,894 100 %
As of December 31, 2020:
(Dollars in thousands)Subscription servicesSubscription
products		Perpetual
license		ConsultingTotal
MaintenancePega Cloud
1 year or less
$227,803 $248,223 $105,920 $11,514 $19,226 $612,686 57 %
1-2 years
54,509 193,064 7,962 395 346 256,276 24 %
2-3 years
28,320 104,542 4,928 — 851 138,641 13 %
Greater than 3 years
19,283 44,308 4 — 1,189 64,784 6 %
$329,915 $590,137 $118,814 $11,909 $21,612 $1,072,387 100 %