Cloud Momentum and AI Strategy Drive Return to Stability

We believe Pegasystems is well established in the business process management software niche and further benefits from related customer relationship management applications. We expect the firm 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 Pegasystems has emerged leaner and more focused. We still believe that Pegasystems demonstrates high customer switching costs, as evidenced by its long customer relationships and strong annual contract value metrics.