−Removed: We develop, market, license, host, and support enterprise software applications that help organizations transform how they engage with their customers and process work.
−Removed: We also license our low code Pega Platform™ for rapid application development to clients that wish to build and extend their business applications.
−Removed: Our cloud-architected portfolio of customer engagement and digital process automation applications leverages artificial intelligence (“AI”), case management, and robotic automation technology, built on our unified low code Pega Platform, empowering businesses to quickly design, extend, and scale their enterprise applications to meet strategic business needs.
+Added: We develop, market, license, host, and support enterprise software that helps organizations simplify business complexity.
+Added: Our powerful low-code platform for workflow automation and AI-powered decisioning enables the world’s leading brands and government agencies to hyper-personalize customer experiences, streamline customer service, and automate mission-critical business processes and workflows.
+Added: With Pega, our clients can leverage our intelligent technology and scalable architecture to accelerate their digital transformation.
+Added: Our client success teams, world-class partners, and clients themselves leverage our Pega Express™ methodology to design and deploy mission-critical applications quickly and collaboratively.
To grow our business, we intend to:
−Removed: • increase market share by developing and delivering market-leading applications for marketing, sales, service, and operations that can work together seamlessly with maximum competitive differentiation;
−Removed: • execute new-market growth initiatives, further expanding go-to-market coverage within the Global 3000;
−Removed: • continue to scale our marketing efforts to support the way today’s clients discover, evaluate, and buy products and services.
+Added: • increase market share by developing and delivering a low-code platform for workflow automation and AI-powered decisioning for buyers in marketing, sales, service, operations, and IT that can work together seamlessly with maximum competitive differentiation;
+Added: • deepen and expand our relationships with existing clients;
+Added: • establish relationships with new clients;
+Added: • continue to scale our marketing efforts to support the way today’s buyers discover, evaluate, and choose products and services.
Whether we are successful depends, in part, on our ability to:
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• effectively develop new products and enhance our existing products;
−Removed: • incorporate acquired technologies into our applications and unified Pega Platform.
−Removed: Cloud Transition
−Removed: We are in the process of transitioning our business to sell software primarily through subscription arrangements, particularly Pega Cloud (“Cloud Transition”).
−Removed: Until we substantially complete our Cloud Transition, which we anticipate will occur in early 2023, we expect to continue to experience lower revenue growth and lower operating cash flow growth or negative cash flow.
−Removed: The actual mix of revenue and new arrangements in a given period can fluctuate based on client preferences.
+Added: • incorporate acquired technologies into our solutions and unified Pega Platform.
+Added: Subscription transition
+Added: We are transitioning our business to sell software primarily through subscription arrangements.
+Added: Until we fully complete our subscription transition, which we expect will occur in 2023, our revenue and operating cash flow growth may be impacted.
+Added: Operating performance and the actual mix of revenue and new arrangements in each period can fluctuate based on client preferences for our perpetual and subscription offerings.
See risk factor "If we fail to manage our transition to a more subscription-based business model successfully, our results of operations and/or cash flows could be negatively impacted" in Item 1A of this Annual Report for additional information.
−Removed: Coronavirus (“COVID-19”)
−Removed: As of December 31, 2020, COVID-19 has not had a material impact on our results of operations or financial condition.
−Removed: COVID-19's ultimate impact on our operational and financial performance will depend on future developments, including the duration and spread of the outbreak and the impact of COVID-19 on our sales cycles, partners, vendors, and employees, all of which is uncertain and unpredictable.
−Removed: Our shift towards subscription-based revenue streams, the industry mix of our clients, the substantial size and available resources of our clients, and the critical nature of our products to our clients may reduce or delay the impact of COVID-19 on our business.
−Removed: However, it is not possible to estimate the ultimate impact that COVID-19 will have on our business at this time.
−Removed: See “Coronavirus (“COVID-19”)” in Item 1A of this Annual Report for additional information.
−Removed: Relocation of Corporate Headquarters
−Removed: On February 12, 2021, we entered into an agreement with our landlord to vacate our Cambridge, Massachusetts corporate headquarters on October 1, 2021, in exchange for a one-time payment to us of $18 million.
−Removed: We expect to enter into a new lease agreement for a facility within the greater Boston area.
Pega Infinity™, the latest version of our software portfolio, helps connect enterprises to their customers in real-time across channels, streamline business operations, and adapt to meet changing requirements.
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• Customer Engagement, including Customer Relationship Management (“CRM”);
−Removed: • Digital Process Automation (“DPA”), including Business Process Management (“BPM”) and Dynamic Case Management (“DCM”);
+Added: • Digital Process Automation (“DPA”), including Business Process Management (“BPM”), Workflow, and Dynamic Case Management (“DCM”);
+Added: • Low-code application development platforms (“LCAP”), including Multi-experience Development Platforms (“MXDP”);
• Robotic Process Automation (“RPA”);
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• Decision Management, including predictive and adaptive analytics;
−Removed: • Low code application development platforms, including Multi-experience Development Platforms (“MXDP”);
−Removed: • Vertical-Specific Software (“VSS”) market of industry solutions and packaged applications.
+Added: • the Vertical-Specific Software (“VSS”) market of industry solutions and packaged applications.
1:1 Customer Engagement
Our omnichannel customer engagement applications are designed to maximize the lifetime value of customers and help reduce the costs of serving customers while ensuring a consistent, unified, and personalized customer experience.
−Removed: At the center of our customer engagement applications is the Pega Customer Decision Hub™, our real time AI engine, which can predict a customer’s behavior and recommend the “next best action” to take across channels in real time.
−Removed: It is designed to enable enterprises to improve customer acquisition and experiences across inbound, outbound, and paid media channels.
−Removed: It incorporates AI in the form of predictive and machine-learning analytics, as well as business rules, and executes these decisions in real time to evaluate the context of each customer interaction and dynamically deliver the most relevant action, offer, content, and channel.
+Added: At the center of our customer engagement applications is the Pega Customer Decision Hub™, our real-time, AI-powered decision engine, which can predict a customer’s behavior and recommend the “next best action” to take across channels in real-time.
+Added: It is designed to enable enterprises to improve customer acquisition and experience across inbound, outbound, and paid media channels.
+Added: It incorporates Artificial Intelligence (“AI”) in the form of predictive and machine-learning analytics, as well as business rules, and executes these decisions in real-time to evaluate the context of each customer interaction and dynamically deliver the most relevant action, offer, content, and channel.
Customer Service
The Pega Customer Service™ application simplifies customer service.
−Removed: It is designed to anticipate customer needs, connect customers to the right people and systems, and automate or intelligently guide customer interactions, to rapidly and continuously evolve the customer service experience, and to allow enterprises to deliver consistent interactions across channels and improve employee productivity.
−Removed: The application consists of a contact center desktop, case management for customer service, chat, knowledge management, mobile field service, omnichannel self-service, AI-powered virtual assistants, and industry-specific processes (“Microjourneys™”) and data models.
+Added: It is designed to anticipate customer needs, connect customers to the right people and systems, automate or intelligently guide customer interactions, rapidly and continuously evolve the customer service experience, and allow enterprises to deliver consistent interactions across channels and improve employee productivity.
+Added: The application consists of a contact center desktop, case management for customer service, chat, knowledge management, mobile field service, omnichannel self-service, AI-powered virtual assistants, and industry-specific processes (“Microjourney™”) and data models.
For clients who want to extend intelligence and automation into the early stages of the customer journey, Pega Sales Automation™ automates and manages the entire sales process, from prospecting to product fulfillment.
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Intelligent Automation
−Removed: Our software for Intelligent Automation boosts the efficiency of our clients’ processes.
+Added: Pega Platform, our software for Intelligent Automation, boosts the efficiency of our clients’ processes and workflows.
This technology allows organizations to take an end-to-end approach to transformation by using intelligence and design thinking to streamline processes and create better experiences for their customers and employees.
−Removed: Intelligent automation goes beyond traditional Business Process Management (BPM) to unify technologies such as Robotic Process Automation (RPA) and Artificial Intelligence (AI) and enable organization-wide digital transformation.
−Removed: The Pega Platform, with its intelligent automation capabilities, allows clients to break down silos, improve customer-centricity, add agility to legacy technology, and provide end-to-end automation to support the needs of customers and employees.
+Added: Intelligent automation goes beyond traditional Business Process Management (BPM) to unify technologies such as Robotic Process Automation (“RPA”) and AI and enable organization-wide digital transformation.
+Added: With its Intelligent Automation capabilities, the Pega Platform allows clients to break down silos, improve customer-centricity, add agility to legacy technology, and provide end-to-end automation to support the needs of customers and employees.
Our Capabilities
−Removed: We drive better business outcomes in two ways:
−Removed: • Making decisions:
−Removed: delivering real time customer engagement, powered by real time, omnichannel AI.
−Removed: • Getting work done:
−Removed: making customer and employee-facing processes more efficient through end-to-end automation and robotics.
−Removed: We deliver our solution through our Center-out Business™ Architecture ® , which enables clients to transcend channels and internal data silos to achieve both quick wins and long-term transformation.
−Removed: This approach insulates business logic from back-end and front-end complexity, delivering both consistent experiences to customers and agility to the business.
+Added: We drive better business outcomes for our clients in three ways:
+Added: • 1:1 Customer Engagement :
+Added: we enable clients to hyper-personalize interactions with their customers using our AI-powered decision engine, resulting in higher customer lifetime value.
+Added: • Customer Service :
+Added: we enable clients to streamline customer service and deliver better service experiences for their customers and employees, resulting in higher customer satisfaction and loyalty and reduced cost.
+Added: • Intelligent Automation :
+Added: we enable clients to automate mission-critical workflows, resulting in improved operational efficiency, faster time to value, and lower cost.
+Added: We deliver our solution through our Center-out Business™ Architecture ® , enabling clients to transcend channels and internal data silos to achieve quick wins and long-term transformation.
+Added: This approach insulates business logic from back-end and front-end complexity, delivering consistent experiences to customers and agility to the business.
The key aspects of this architecture are:
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Pega’s centrally-managed intelligence ensures AI and business rules operate across all channels.
−Removed: Applications built on the Pega Platform leverage predictive and adaptive analytics to deliver more personalized customer experiences and maximize business objectives.
+Added: Applications built on Pega’s low-code Platform leverage predictive and adaptive analytics to deliver personalized customer experiences and maximize business objectives.
For example, Pega Customer Decision Hub, a centralized, always-on “customer brain,” unleashes the power of predictive analytics, machine learning, and real-time decisioning across our clients’ data, systems, and touchpoints - orchestrating engagement across customer interaction channels.
End-to-end automation aligned with business outcomes
−Removed: We bring together human-assisted robotic desktop automation and unattended robotic process automation with our unified process and case management capabilities.
−Removed: This provides our platform and applications the differentiated ability to automate both customer-facing and back-office operational processes from “end to end,” connecting across organizational and system silos to connect customers and employees to outcomes seamlessly and easily.
−Removed: Consistent omni-channel experiences
−Removed: With business and process logic centrally defined, Pega provides dynamic, open APIs to keep front-end channels and business logic operating in alignment for consistent customer experiences.
−Removed: By leveraging cutting-edge user interface (UI) technology, Pega-powered processes and decisions can be easily embedded into existing front-ends or used as the basis for new employee-facing applications.
+Added: We combine human-assisted robotic desktop automation and unattended robotic process automation with our unified workflow and case management capabilities.
+Added: This combination provides our platform and applications the differentiated ability to automate customer-facing and back office operational processes from “end to end,” connecting across organizational and system silos to connect customers and employees to outcomes seamlessly and easily.
+Added: Consistent omnichannel experiences
+Added: With centrally defined business and process logic, Pega provides dynamic, open APIs to keep front-end channels and business logic aligned for consistent customer experiences.
+Added: By leveraging innovative user interface (UI) technology, Pega-powered processes and decisions can be easily embedded into existing front-ends or used as the basis for new employee-facing applications.
Insulation of back-end complexity
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Pega’s Situational Layer Cake organizes logic into layers that map to the unique dimensions of a client’s business – customer types, lines of business, geographies, etc.
−Removed: This layered approach lets organizations manage variations of their business without duplicating logic.
+Added: This layered approach lets organizations manage variations of their businesses without duplicating logic.
This capability allows initial deployments into a single department or region to seamlessly scale to manage the complexity of a global, multi-line enterprise.
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Pega Express™ Methodology and low-code
−Removed: Our solutions are designed to quickly improve targeted customer outcomes and with out-of-the-box functionality that connects enterprise data and systems to customer experience channels.
+Added: Our solutions are designed to quickly improve targeted customer outcomes with out-of-the-box functionality that connects enterprise data and systems to customer experience channels.
From there, organizations can scale one customer experience at a time to realize greater value while delivering increasingly consistent and personalized customer experiences.
−Removed: We prescribe a “Microjourney™” approach to delivery that breaks customer journeys into discrete processes that drive meaningful outcomes, such as “inquiring about a bill” or “updating an insurance policy.” This allows us to combine design-thinking and out-of-the-box functionality to deliver rapid results and ensure the ability to enhance the application going forward.
+Added: We prescribe a “Microjourney” approach to delivery that breaks customer journeys into discrete processes that drive meaningful outcomes, such as “inquiring about a bill” or “updating an insurance policy,” allowing us to combine design-thinking and out-of-the-box functionality to deliver rapid results and ensure the ability to enhance applications in the future.
Our approach leverages low-code to improve business and IT collaboration and bypass the error-prone and time-consuming process of manually translating requirements into code.
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Pega Cloud ® allows clients to develop, test, and deploy, on an accelerated basis, our applications and the Pega Platform using a secure, flexible internet-based infrastructure, minimizing cost while focusing on core revenue-generating competencies.
−Removed: Clients can also choose to manage the Pega deployment themselves (“client cloud”) using the cloud architecture they prefer.
+Added: Clients can also manage the Pega deployment themselves using the cloud architecture they prefer.
This multi-cloud approach of both Pega Cloud and client-managed cloud gives our clients the ability to select and change, as needed, the best cloud architecture for the security, data access, speed-to-market, and budget requirements of each application they deploy.
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We also use third-party contractors to assist us in providing these services.
−Removed: • Global Client Success – Our Global Client Success group guides our clients on how to maximize their investment in our technology and realize the business outcomes they are targeting.
−Removed: This includes building implementation expertise and creating awareness of product features and capabilities.
−Removed: • Global Service Assurance – Our Global Service Assurance group addresses risks to client success because of technical concerns.
+Added: • Global Client Success – Global Client Success guides our clients to maximize their investment in our technology and realize the business outcomes they are targeting.
+Added: Within Global Client Success, our Client Innovation team helps clients transform and prototype their customer journeys through our Pega Catalyst™ offering, our Success team ensures our clients receive the maximum business value from their Pega investments, and our Pega Consulting team provides planning, design, implementation, and advisory and assurance services.
+Added: • Global Service Assurance – Global Service Assurance addresses risks to client success because of technical concerns.
By providing technical staff dedicated to client success, we reduce the time to resolve technical issues, eliminate lengthy deliberations of technical resource logistics, and increase clients’ confidence in our technology and client service.
−Removed: • Global Client Support – Our Global Client Support group provides technical support for our products and Pega Cloud services.
+Added: • Global Client Support – Global Client Support provides technical support for our products and Pega Cloud services.
Support services include cloud service reliability management, online support community management, self-service knowledge, proactive problem prevention through information and knowledge sharing, problem tracking, prioritization, escalation, diagnosis, and resolution.
• Pega Academy – The success of our sales strategy for repeat sales to target clients depends on enablement and ecosystem engagement.
−Removed: We have increased our ability to train a large number of partners and clients to implement our technology and made it easier for individuals to stay current with our technology as it evolves.
−Removed: We offer both instructor-led and online training to our employees, clients, and partners.
−Removed: We have also partnered with universities to provide our courseware as part of the student curriculum to expand our ecosystem.
−Removed: Engagement is an important part of our strategy to create a broad ecosystem that is passionate about Pega technology.
+Added: We have increased our ability to train partners and clients to implement our technology and made it easier for individuals to stay current as it evolves.
+Added: We offer instructor-led and online training to our employees, clients, and partners.
+Added: We have also partnered with universities to provide our courseware as part of student curriculum to expand our ecosystem.
+Added: Engagement is an important part of our strategy to create a broad ecosystem passionate about Pega technology.
We collaborate with global systems integrators and technology consulting firms that provide consulting services to our clients, as well as Independent Software Vendors (“ISVs”) and technology partners that extend clients’ investments with integrated solutions .
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Target Clients
−Removed: Our target clients are Global 3000 organizations and government agencies that require applications to differentiate themselves in the markets they serve.
−Removed: Our applications achieve and facilitate differentiation by increasing business agility, driving growth, improving productivity, attracting and retaining customers, and reducing risk.
−Removed: We deliver applications tailored to our clients’ specific industry needs.
+Added: Our target clients are Global 3000 organizations and government agencies that require solutions to distinguish themselves in the markets they serve.
+Added: Our solutions achieve and facilitate differentiation by increasing business agility, driving growth, improving productivity, attracting and retaining customers, and reducing risk.
+Added: Along with our partners, we deliver solutions tailored to our clients’ specific industry needs.
Our clients represent many industries, including:
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Our intelligent automation, customer service, account onboarding, Know Your Customer (“KYC”), payment dispute and exception management, collections, and next best action solutions allow clients to improve the efficiency of their operations and provide better service to their customers.
−Removed: • Life sciences – Life sciences organizations are looking for solutions to improve customer engagement, as well as increase efficiencies and transparency across the product development lifecycle.
−Removed: Our customer engagement, clinical, and pharmacovigilance applications are designed to deliver customer engagement, safety and risk management, and regulatory transparency.
−Removed: • Healthcare – Healthcare organizations seek software that integrates their front and back-offices and helps them deliver personalized care and customer service while reducing costs, automating processes, and increasing operational efficiency.
−Removed: Our applications allow healthcare clients to address the sales, service, operational, financial, administrative, and regulatory requirements of healthcare consumerism and reform.
• Communications and media – Communications and media organizations need to address high levels of customer churn, growing pressure to increase revenue, and an ability to respond quickly to changing market conditions.
−Removed: Our applications enable organizations to reshape the way they engage with customers and increase customer lifetime value throughout the customer lifecycle by delivering omnichannel, personalized customer experiences.
−Removed: Our applications are designed to solve the most critical business issues, including acquiring more customers at a higher margin, increasing cross-sell/upsell, improving customer service efficiency and effectiveness, and streamlining sales and quoting.
+Added: Our solutions enable organizations to reshape how they engage with customers and increase customer lifetime value throughout the customer lifecycle by delivering personalized customer experiences and intelligent workflows.
+Added: Our solutions are designed to solve the most critical business issues, including increasing cross-sell/upsell, improving customer service effectiveness, and automating work.
• Government – Government agencies need to modernize legacy systems and processes to meet the growing demands for improved constituent service, lower costs, reduced fraud, and greater transparency.
−Removed: Our applications deliver advanced capabilities to help streamline operations and optimize service delivery through an agile, low risk approach.
−Removed: • Insurance – Insurance companies, whether competing globally or nationally, need software to automate policyholder acquisition, cross sell/upsell, underwriting, claims, policy service, and retention activities across operations and channels of distribution.
−Removed: Insurers are also becoming increasingly sensitive to ways to improve customer service and the overall customer experience.
−Removed: Our applications for insurance carriers are designed to help increase business value by delivering customer-focused experiences and personalized interactions that help drive higher sales, lower expense ratios, and mitigate risk.
−Removed: • Manufacturing and high tech – Manufacturers and high tech companies worldwide are transforming their businesses to engage customers and suppliers better, as well as to directly manage product performance throughout the product lifecycle.
−Removed: Our manufacturing applications address customer service and field service, manage warranties, recalls, repairs, returns, improve the performance of direct sales forces, and extend existing enterprise resource planning system capabilities.
+Added: Our solutions deliver advanced capabilities to help streamline operations and optimize service delivery through an agile, low-risk approach.
+Added: • Life sciences and healthcare – Life sciences and healthcare organizations are looking for solutions to improve patient and clinician engagement, as well as deliver personalized products, services, and care while reducing costs, automating processes, increasing operational efficiency, and integrating front and back-offices.
+Added: Our customer engagement and intelligent automation solutions allow life science organizations to accelerate the research and development and product launch process, digitize clinical trials, transform operations, and provide regulatory transparency.
+Added: Our solutions allow healthcare clients to address the sales, service, care, operational, financial, administrative, regulatory requirements of healthcare consumerism, reform, and transformation to healthcare services organizations.
+Added: • Insurance – Insurance companies, whether competing globally or nationally, need software to automate policyholder acquisition, cross-sell/upsell, underwriting, claims, policy service, and retention activities across operations and distribution channels.
+Added: Insurers are also becoming increasingly sensitive to improving customer service and overall customer experience.
+Added: Our solutions for insurance carriers are designed to help increase business value by delivering customer-focused experiences and personalized interactions that help drive higher sales, lower expense ratios, and mitigate risk.
• Consumer services – Consumer services organizations provide services to a range of consumers in industries such as transportation, utilities, internet providers, retail, hospitality, and entertainment.
−Removed: Our 1:1 customer engagement, customer service, and intelligent automation solutions help these organizations personalize their customer engagement to acquire more customers, drive revenue through cross-sell/upsell, and increase service efficiency while increasing customer satisfaction.
+Added: Our 1:1 customer engagement, customer service, and intelligent automation solutions help these organizations personalize their customer engagement and automate work to drive revenue through cross-sell/upsell and increase service efficiency while increasing customer satisfaction.
+Added: • Manufacturing and high tech – Manufacturers streamline their complex global operations and create more value for their customers, dealers, distributors, and suppliers while directly managing the performance, uptime, and impact of their connected products, equipment, and experiences.
+Added: Our manufacturing solutions reduce the complexity of enterprise operations in domains like supply chain, order management, quality management, shared services, customer service, and aftermarket services, including warranty management and captive finance, while minimizing the constraints on digital transformation caused by legacy systems.
The markets for our offerings are intensely competitive, rapidly changing, and highly fragmented as current competitors expand their product offerings and new companies enter the market.
−Removed: We compete in the CRM, including marketing, sales, and customer service, and DPA, including BPM, case management, decision management, robotic automation, co-browsing, social engagement, and mobile application development platform software markets, as well as in markets for the vertical applications we provide (e.g., Pega KYC™ for Financial Services, Pega Underwriting™ for Insurance).
+Added: We compete in the CRM, including marketing, sales, and customer service, and DPA, including BPM, case management, decision management, robotic automation, co-browsing, social engagement, and mobile application development platform software markets, as well as in markets for the vertical applications we provide (e.g., Pega Know Your Customer TM for Financial Services, Pega Care Management™).
We also compete with clients’ internal information systems departments that seek to modify their existing systems or develop their own proprietary systems and professional service organizations that develop their own products or create custom software in conjunction with rendering consulting services.
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We believe we are competitively differentiated from our competitors because our unified Pega Platform is designed to allow client business and IT staff, using a single, intuitive user interface, to build and evolve enterprise applications in a fraction of the time it would take with disjointed architectures and tools offered by many of our competitors.
−Removed: In addition, our applications, built on the Pega Platform, provide the same level of flexibility and ability to adapt to our clients’ needs as our Pega Platform.
+Added: In addition, our applications, built on the Pega Platform, provide the same level of flexibility and ability to adapt to our clients’ needs as the Pega Platform.
We believe we compete favorably due to our expertise in our target industries and our long-standing client relationships.
−Removed: We believe we compete less favorably on some of the above factors against our larger competitors, many of which have greater sales, marketing, and financial resources, more extensive geographical presence, and greater name recognition than we do.
+Added: We believe we compete less favorably on some of the above factors against our larger competitors, many of which have greater sales, marketing, and financial resources, more extensive geographical presence, and greater name recognition.
In addition, we may be at a competitive disadvantage against our larger competitors with respect to our ability to provide expertise outside our target industries.
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We enter into confidentiality, intellectual property ownership, and license agreements with our employees, partners, clients, and other third parties.
−Removed: We also control access to and ownership of software, services, documentation, and other information to protect our proprietary rights.
+Added: To protect our proprietary rights, we also control access to and ownership of software, services, documentation, and other information.
Sales and Marketing
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To support our sales efforts, we conduct a broad range of marketing programs, including awareness advertising, client and industry-targeted solution campaigns, trade shows, including our PegaWorld ® iNspire user conference, solution seminars and webinars, industry analyst and press relations, web and digital marketing, community development, social media presence, and other direct and indirect marketing efforts.
−Removed: Our consulting employees, business partners, and other third parties also conduct joint and separate marketing campaigns that generate sales leads for us.
+Added: In addition, our consulting employees, business partners, and other third parties also conduct joint and separate marketing campaigns that generate sales leads.
Research and Development
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We also intend to maintain and extend the support of popular hardware platforms, operating systems, databases, and connectivity options to facilitate easy and rapid deployment in diverse IT infrastructures.
−Removed: Our goal with all products is to enhance product capabilities, ease of implementation, long-term flexibility, and the ability to provide improved client service.
−Removed: As of December 31, 2020, we expected to recognize approximately $1.1 billion in revenue in future periods from backlog on existing contracts.
+Added: Our goal with all products is to enhance product capabilities, implementation ease, long-term flexibility, and improve client service.
+Added: As of December 31, 2021, we expected to recognize approximately $1.3 billion in revenue from backlog on existing contracts in future periods.
See "Remaining performance obligations ("Backlog")" in Item 7 of this Annual Report for additional information.
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Our commitment to inclusion and diversity begins with a highly skilled and diverse board and includes our commitment to educate both managers and individual contributors about our corporate values.
−Removed: In 2020, we made significant investments in furthering our culture of inclusion, including hiring a Global Leader of Inclusion and Diversity and Diversity Talent Attraction Partner.
−Removed: We expanded our diversity recruiting efforts and delivered inclusivity workshops to leaders at all levels, among other efforts.
−Removed: We also currently sponsor formal resource groups for women, veterans, and members of the black and LGBTQIA+ communities, and plan to launch four additional resource groups in the first half of 2021.
+Added: We have made significant investments in furthering our culture of inclusion, including hiring a Global Leader of Inclusion and Diversity in 2020 and a Diversity Talent Attraction Partner in 2021.
+Added: We expanded our diversity recruiting efforts and delivered inclusivity workshops to managers and individual contributors at all levels.
+Added: We currently sponsor formal employee resource groups for the following communities:
+Added: women, veterans, Black, LGBTQIA+, Asian, Latinx, and persons with disabilities.
Employee Engagement, Health, and Well-Being
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We regularly solicit and collect feedback to better understand and improve our employee experience and identify opportunities to strengthen our corporate culture.
−Removed: In 2020, in addition to our annual employee survey and continuous feedback tools, we hosted monthly check-in chats with our leadership team to directly address our employees’ questions and constructive feedback.
+Added: In 2021, in addition to our employee survey and continuous feedback tools, we hosted check-in chats with our leadership team to directly address our employees’ questions and constructive feedback.
We are committed to creating an environment that supports our employees’ health and overall well-being, focusing on physical, emotional, financial, and personal wellness.
−Removed: PegaUp!, our employee wellness program, includes such programs as awareness campaigns, fitness classes, guided meditation, and health, wellness, and financial seminars.
+Added: PegaUp!, our employee wellness program, includes awareness campaigns, fitness classes, guided meditation, as well as health, wellness, and financial seminars.
We compensate our employees for what they do and how they do it, regardless of their gender, race, or other personal characteristics.
−Removed: To deliver on that commitment, we benchmark and set pay ranges based on market data and consider individual factors, such as an employee’s role and experience, job location, and job performance.
+Added: To deliver that commitment, we benchmark and set pay ranges based on market data and consider individual factors, such as an employee’s role and experience, job location, and job performance.
We also regularly review our compensation practices, both in terms of our overall workforce and individual employees, to ensure our pay is fair and equitable.
Employee Development
−Removed: Employee development underpins our efforts to execute our strategy and continue to create and sell innovative products and services.
+Added: Employee development underpins our efforts to execute our strategy and continue creating and selling innovative products and services.
We continually invest in our employees’ career growth and provide employees with a wide range of development opportunities, including formal and informal learning, mentoring, and coaching.
−Removed: Pega Academy helps employees as well as clients and partners more rapidly gain and advance Pega software skills.
−Removed: To ensure our business’s long-term continuity, we actively manage the development of talent to fill the roles most critical to our success.
−Removed: To support our current and future leaders’ development, Pega currently offers five programs addressing the development of people managers and leaders in a cohort format comprised of all functions and geographies.
+Added: Pega Academy helps employees, clients, and partners gain and advance Pega software skills more rapidly.
+Added: To ensure our business’s long-term continuity, we actively manage talent development to fill the roles most critical to our success.
+Added: To support our current and future leaders’ development, Pega offers five programs addressing the development of people managers and leaders in a cohort format comprised of all functions and geographies.
We also provide educational resources and classes, career training, and education reimbursement programs.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.