Pega Cloud and Subscription License ACV Growth
Recurring Subscription Model
Annual Contract Value (ACV)
$1,300M
$1,200M
$1,100M
$1,000M
$900M
$1,126M
December 31, 2022
$1,255M
December 31, 2023
Growth since Q4 2022
ACV Reported: 11%
ACV Constant Currency: 11%
PEGA
ACV represents the annualized value of our active contracts as of the measurement date. The contract's total value is divided by its duration in years to
calculate ACV. ACV is a performance measure that we believe provides useful information to our management and investors.
In 2023, the Company revised its ACV methodology for maintenance and all contracts less than 12 months as its overall client renewal rate exceeds 90%.
The impact of the change was $3 million or 0.3% of Total ACV or less for all quarters in 2022. Previously disclosed ACV amounts have been updated to
allow for comparability.
Pegasystems Inc.
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