Cloud Momentum and Artificial Intelligence Strategy Take Center Stage

We believe Pegasystems is well established in the business process management software niche and further benefits from related customer relationship management, or CRM, applications. We expect the company to remain a leading provider for enterprise users in the coming years as it moves customers to its new Pega Infinity platform, which unifies customer engagement with automation. The company’s revenue model transition was messy at times but is largely complete, and we expect Pegasystems to emerge leaner and more focused. With that said, we still believe that Pegasystems demonstrates high customer switching costs as evidenced by its long customer relationships and strong annual contract value, or ACV, metrics.