Pega Cloud and Subscription License ACV Growth slide image

Pega Cloud and Subscription License ACV Growth

Reported ACV Pega Cloud and Client Cloud $1,126M Growth since Q4 2022 $1,255M Total ACV: 11% Pega Cloud ACV: 21% $553M $459M $667M December 31, 2022 Pega Cloud Client Cloud $702M December 31, 2023 Client Cloud ACV: 5% 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. 32
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