Are we ready? Okay, sure. Is this the last session of the day, technically? Okay. Got it. All right. Welcome, guys. Thank you. We're here, with the Pega team. Have Ken with me. Ken, we're gonna kinda keep this conversational throughout, and we're gonna try and hit a lot of topics. We have time to do it, so no issues on that. Maybe just to start off, Pega has a long history, like 40 years or so at this point. You've been with the company about a decade. Just kinda give us some flavor in terms of kind of the company's journey, the evolution, and kind of, you know, what's gotten it to where it is.
Sure. You know, it's, it's interesting, like, an investor said to me, you know, like, kinda half jokingly, but it kinda like you think about. He said, "You know, when you're at a company 10 years, you know, you're kind of like the founder." Right? Because, like, you know, when executives are at a company. I thought, you know, that's an interesting. Like, it kind of sounds funny, but 'cause strategies do not last for decades. Right? You know, well-run companies have to adjust and change. The last 10 years has been an interesting journey for us because when I started, we were a perpetual business.
We decided, well, we saw what was happening in the market, and we knew what how clients wanted to buy, and we understood the economics of moving to a subscription business. Right, you know, shortly after that decision, really was obvious to us that the anxiety around cloud was reducing in, you know, across the world and governments and regulated industries. We, we kind of very quickly then flipped into this cloud discussion of like, you know, one, maybe one step further in that, in that recurring model.
We went through a cloud transition, and we kinda knew that we had to anchor ourselves on this Rule of 40. The business model transition was, you know, a big part of my first probably, you know, five years of anchoring that, t hen COVID hit. Then, and now you're, you know, the whole environment around the way people interact with each other interact with dramatically changed. Didn't change just in the short term. As, you know, as even though we're back in the offices, it has fundamentally changed the expectation of, like, the available inter engagement where people are not in the same place.
That leveled the bar in terms of engagement software. Now we're at maybe this next kind of inflection point, which is the power that AI presents, you know, for us, and how that can change the pace at which companies digitally transform the, you know, the ability for us to really make these systems more best practice hardened in terms of having less customization and freelancing around how enterprise applications are built, so that we don't actually have the situation we have 50 years from now where we have to modernize all of the systems that we build because they're all custom. I think that that's, like, it's just been interesting. You know, in 10 years, it feels like, you know, we've seen a few evolutions in the business, but also driven by what was happening in the marketplace it's never boring.
Agree. My takeaway from here is I'm gonna now go present with my leaders from Morgan Stanley that I should be viewed as a founder, given that I've been 10+ years in the seat. We'll see how it goes.
I mean, what have you waited for?
I don't know. Exactly. Okay. Just we unpack, kind of Pega a bit here, more specifically in terms of kind of the key products and key use cases that are being solved. Maybe just kinda give us a flavor of what those are and how that's unfolding?
Yeah. This is probably one of the areas where I would say many investors are not either are not aware of maybe need to be reminded. Much of what Pega does, is all of what we do is deterministic workflow. Let's just start there. Why is deterministic workflow needed? Typically, because there is a regulatory compliance, internal control standard that needs to be met. Many of our systems, with our clients, if you think about our client base, our clients are selling to consumers or they're governments supporting citizens. You have a citizen or a consumer on the back end, which means lots of the use cases have either established laws or certainly standards about how that work needs to be done. Things like, you know, fair lending standards, credit card processing, the way we handle customer data.
I mean, you could just go HIPAA, PCI. All these things are standards that were built to protect consumers. That requires the work to be done in a very, very deterministic way. Predictable, reliable, zero tolerance for errors. That's what Pega does. Pega is the workflow that powers these processes and activities and transactions that have to go through a very deterministic set of steps to execute. It's not just get it done. Has to be done in a very defined way, and that's the business. That's who we've been for, you know, 40 years.
Okay. Is it the reason you specifically called out deterministic versus non-deterministic, just to really anchor in the points of this is something that is known, repeatable, et cetera. To your point, there's zero margin for error. I think we're probably leading into maybe why there's some protections or some moats here as it relates to your offerings and kind of what you're delivering. Is that?
Yeah. The connection to deterministic is that it needs to be decided on the front end. The, the workflow has to be decided on the front end, has to adhere to that process, and if it doesn't, there's either regulatory or business brand or, you know, quite frankly, even legal re-risk for that. That's the connection. When you think about, well, why couldn't I just, say, build a custom application that doesn't have workflow or use, you know, a coding tool to speed that, it's the main reason why people don't do that is not the cost of engineering. It's the inability to actually have a functioning workflow application that helps you stay regulatory compliant.
I got it. Okay, let's now hit Blueprint.
Okay.
Blueprint's a big part of the company. It's evolved quite a bit from when it first was announced and kind of what you're doing with it. You all have said that it's core to how you operate. Maybe just kind of double-click on Blueprint for folks, and maybe share some of the specific customer needs that drove the expansion of Blueprint's capabilities. I think right now, more than anything, everyone's asking questions around AI at this conference, and obviously there's a lot going on in the world, but, like, why is this critical for enterprises right now and the needs that they have?
One of the biggest challenges that Pega's had over decades is the cost of getting started and the cost of getting the transformation of the application. If you've got a use case that is running on some legacy, you know, mainframe, COBOL application, whatever it is, and it works . It's not modern, the first question that you would go through is, "Well, how much will it cost me to design, to redesign, and to rebuild this on a platform like Pega?" The timeframe and the cost is a pretty big investment. Clients would be very picky on what they did, and they, quite frankly, that cost of system integrators and, you know, and hands on keyboards and even the front-end ideation, it just really was a headwind to transformation.
When we saw AI, we immediately connected what we saw with the models to how we could address that issue. We built Blueprint specifically to attack that upfront design problem of clients not being able to visualize and design what they wanted the workflow to look like because it was just too costly and it took too long. That was our target that we went after. Blueprint started kind of more as a simple ideation tool. Like, you had a couple screens and you could maybe produce a PDF. Right? If you fast-forward to where Blueprint is now, you know, we're gonna, you know, we'll be announcing tomorrow morning before the market that Blueprint has full live coding capabilities in it.
Right? It's not, you're not just actually, you know, seeing the drop-downs. You're actually going to see an actual, like, you know, kind of live coding experience where you don't, y ou could, if you wanted to use the kind of the UI and the drop-downs you could, or you could go right in and actually talk to the Blueprint, tell it what you're looking to do, ask it for suggestions, ask it for. Have it ask you questions to help actually. That's gonna be, that's the experience we envision how every Pega application will be built going forward. We still have some work to do in terms of extending the capabilities of Blueprint to cover every configuration use case.
We're not there yet, but that's our next phase is really to make it so robust that when you interact with Pega, you will no longer drop down into a, an App Studio or Dev Studio experience where you're configuring inside Pega. Everything will be done in a live coding front end of Blueprint. You might say, "Well, why couldn't I use another AI tool if I wanted to do that?" No AI tool is going to understand workflow like Pega does. There's no, y ou could, you can search the internet, pull every piece of data. It's proprietary to us. Only we understand how to do those workflows, those deterministic workflows. The differentiation is our moat is this is our thing.
Yeah, I got it.
Right? Yeah.
I got you. Y ou've removed the friction if you will, from people designing new systems, and obviously the initial kind of headwinds were the complexity, the time, and then obviously the money you spend, and more times than not, you get it wrong because you didn't do the upfront planning.
Right. Skill sets too.
Okay, perfect.
Resources are, yeah.
With Blueprint, you're taking this 40 years of history of you guys building system designs and schematics and understanding certain workflows and permutations, you then have this now live coding element that can tap into all of that and give you this dynamically real time and get these systems out.
That's exactly right.
Okay, perfect. Okay, just maybe a bit more specificity. Can you maybe just share an example of a customer using Blueprint today to maybe drive AI transformation?
Do you mean to use Blueprint and AI to transform, like, a legacy application?
Like, beyond kind of like the live coding. Is there anything specific that's happening?
I'll use, I'll keep the name because I don't know if we have the right to talk about what clients are doing and such.
Sure.
We have a client that I talked to recently that is essentially reforming all of their customer experience, which means customer support, customer engagement upsell, cross-sell, everything. They're basically, they're a series of workflows that some of which are on, are custom built, some of which are on, a competitor of ours. They're using Blueprint to redesign each one of those workflows, then using Blueprint to look at the collection of all those workflows across a life cycle, they'll use that to then deploy and transform that. When they're live, now go to runtime. You've designed the application. You're running the application. They'll use AI, our agents and other agents from other systems, with our Process Fabric. Our Agentic Process Fabric is, think about it as, like, the connection or the orchestration that, where the agents can come and be directed to the workflows.
Kind of like an MCP server-ish?
That they need to access. Yeah, like AJ AJ.
Okay. Got it.
Exactly. MCP. Yep.
Okay.
That is an example of that happening at multiple clients. What would have happened pre-AI is they would have had to go workflow by workflow.
I got it.
Whiteboard, and you and I in a room, and we design it probably get it wrong and keep just, you know, we'll be the two years, three years, four-year projects.
We've been speaking a lot about Blueprint specifically focused on design, and you now are doing that phenomenally well. You have new capabilities that are re-released, et cetera. Maybe you could help me understand where else you feel you can now evolve potentially within the broader development process outside of design, whether it's gonna develop, test, deploy, et cetera. Maybe where else can those capabilities accelerate customer deployments and implementations and deliver capability quicker?
We're Blueprint is now extending into the build phase or the develop phase. It'll also include all the automated testing as associated with that we'll be testing continuously. There will be of agents testing as we're actually designing and building. When you get to production and you're live, we'll actually use Blueprint in the future in the actual ongoing software development lifecycle of improving the app, of updating, of taking new capabilities, of making changes. Really, Blueprint becomes that starting point for everything from design to build, to test, to operate.
That's awesome. It's fully living the infinite life cycle.
It's not there now. It's not there yet.
Okay.
That's our strategy.
Okay. Got it. On your recent earnings call, you mentioned becoming more proactive and confident in use, in pursuing new logos supported by kind of Blueprint, experiential sales approach. Maybe just kind of shed some light on that and kind of the go-to-market motion, how it's changed and kind of productivity gains that you've seen.
Sure. When we would hire a salesperson a few years ago, we would really not let a salesperson talk to a client until they went through a deep training of Pega. Typically get some level of certification. Let's just call that six months of lack of productivity. They start to get into the field. By the time it takes them to build some pipeline, they're not gonna close a deal in the first year. They may not close a deal in the second year. You can imagine the cost of bringing on salespeople targeting a new logo that doesn't know Pega with this very manual labor-intensive front end.
We really felt uncomfortable scaling our account executives and new logos too fast because of that upfront cost. Now, we use Blueprint. There is no training required. Person comes right in, they can start immediately with Blueprint. It's self-explanatory in terms of how it's used. They can get in front of the client. They can be talking to a client the first meeting and pull out Blueprint. That to me is like transformational in terms of how we sold which then gives us the confidence to start targeting new logos and to bring in more salespeople to try to further accelerate our growth.
Okay, that's awesome. Maybe just on this go-to-market motion as well. You've recently enabled partners to leverage Blueprint directly, like including embedding their own IP in the platform. Maybe how does this change your strategy with SIs and kinda what does this mean for your ability to scale more quickly over time?
Similar to the ramping challenge with new AEs years ago, we did not sell through partners. Contractually, a partner may have been the prime, but they weren't selling. We would sell, and we would partner, and they would implement. We didn't really feel comfortable encouraging partners to sell because of that upfront training that was required. If you think about like a system integrator like pick an Accenture, their salespeople are not domain experts in any particular product. You can't, you're not you can't expect them to be experts.
Now we actually have partner-branded Blueprints. An example of Accenture or Capgemini or Cognizant or others, they'll have their own proprietary Blueprint. That Blueprint is used in their selling motion with their sellers. Anything they do with their clients is only visible to them. We don't have access to it. No one else does. We want them to use that in terms of selling transformation to the clients. We have a three-way partnership with AWS or Google.
Where they're the hyperscaler, and then so system integrator getting the transformation, AWS or Google helping augment and support some of the service credits. We get the platform deal, set it through the marketplace, it runs on that. That's kind of the way the partnership is working. It's just, it's brand new for 2026. It, you know, we will work out the kinks, but it's very new.
It sounds like win-win-win for all and consistency.
We believe it is.
Okay. Maybe shifting to market opportunity and a bit of differentiation here. Enterprise CIOs have been shifting from like AI experimentation to actually execution and deployment. Maybe just kind of perspective from you on your conversation with customers, kinda how would you characterize the IT spend environment today versus a year ago? Kinda where do you see the most durable demand?
Specifically for us, legacy transformation up until this past year was typically not in the top five initiatives. Maybe it was number five, but it was not in the top five initiatives for our clients. If you look at that priority, it's in the top three, right? It's typically cloud, AI, and transformation. We think those all three fit together, right? They're very complementary to each other. We feel the pressure from our clients to move faster, to leverage AI, to use AI almost as the catalyst to try to move faster with that transformation. There's some, you know, some great technology, you know, AWS's Transform tool, some of the code interpretation stuff that Anthropic released. These are all great accelerants to actually bring transformation to a company like Pega.
Okay. We touched on this a bit earlier, but just thinking about orchestration for a second as kind of one of the key bottlenecks to scaling some of these systems. I think this kind of plays directly into some of the strengths that you all have. I think you mentioned a mesh or concept earlier maybe just kinda give us some perspective in terms of how this shift, kind of plays to your strengths, as kind of the AI adoption broadens and people become much more receptive.
Pega, you know, Pega's a workflow company, but much of what we do with those workflows is the integration of the workflows into their business processes, really helping orchestrate connection to all these systems. I mentioned before the Agentic Process Fabric, which is a way to create that orchestration with agents as well as those data integrations and process integrations. I think the most, one of the most exciting things that I'm seeing is that transformation, clients are thinking about transformation, I think, for real, right?
I realize that change is hard, and large organizations like yourself, I mean, there's a lot of people, and there's a lot of systems, and it takes a while. But I do think the leaders, the CIO leaders realize the value that is unlocked by actually transforming and modernizing these. I think that the, that AI is a, is a big catalyst for that. That's, like, one of the most exciting things to see is, you know, this isn't tactical, like, trying to fix a screen. This is, I think, people are taking this for, you know, taking it serious for the first time.
Obviously this evolution has come about quickly. I think obviously the getting the product and packaging right is essential for being able to push some of these software offerings. Maybe just help us better understand how you all are pricing your software. Is it seats? Is it outcomes? Is it something else? Maybe how does that look for this year as some of these products roll out?
We made a decision, you know, 10, 15 years ago that has turned out to be the right one now. The decision was that we wanted to move away from user models. The reason why was we were going to clients, and clients were saying, "Help us optimize our call center," for example. "We've got too many people. We'd like to get more". The result of optimization is they take down the number of CSRs.
Okay.
Call, you know, customer service representatives, and for that, Pega would get less revenue. That didn't really make sense, right? Like, we said, Look, user models don't make sense. Activity models make sense.
Okay.
Cases. We charge based on a unit of work, which we call a case in our system. As the client pushes more automation through the system, we share in that efficiency. As they use more cases, there's naturally a volume discount curve to incent clients at scale to continue to use us more.
Okay, I got it. Maybe the ultimate validation of what you guys have is your retention metrics, right? I think your gross retention's in the high 90s. Net is you got a 112-ish of code. Maybe just better help us understand maybe the moat that you've developed, kind of how that helps you differentiate and maybe why that's durable. Kind of when you're speaking about that, as people are evaluating platforms, maybe who is it they're typically comparing you against, and kind of why is it that your moat is actually allowing you to win in this market that's becoming increasingly competitive with the tools that people can deploy to help accelerate their specific technology offerings.
We have a few differentiations that would be the reason why someone might scale more with Pega. We have this concept that we call the Situational Layer Cake, and what that means is it's the concept of dimensionality and scalability. Many times, if you're using Pega for, say, 20 workflows, 30% of the types of steps and stages might be similar across those workflows. Once you build that one time, that's all repurposed across any of the applications. You can really save a ton of time in terms of reuse. When you make a change one place, you could propagate that change through all of the different Pega workflows. That's very differentiated. No one else actually takes that approach.
Another differentiation we have is we have a kind of a very seamless way of integrating real-time with other systems so that the data that you see, and it's the way that we cache and store the data and create those integrations, that we can seamlessly grab that data, put it in the context of a case, containerize it, and essentially it creates a real-time or near real-time kind of engagement, where other systems tend to have lags sometimes be batched transactions, even today. Those are really powerful differentiations when you're doing things at scale. When you think about the competitive landscape, you say, "Well, why would somebody pick Pega over XYZ company?
Nobody does workflow like we do workflow. I mean, if you look at the new Gartner BOAT Business Orchestration and Automation Technology quadrant that just came out, Pega's top and to the right. We've been top and to the right every time Gartner, Forrester puts out intelligent automation, BOAT, whatever the quadrant looks like. It's generally recognized that that's what we do. We do workflow. If you're trying to do enterprise scale, deterministic, regulated, zero error tolerance, real time, lot of reuse, ability to evolve that system, that's Pega. Nobody else compares.
Okay, perfect. Thank you for that. Maybe shifting to financials. Strong quarter reported. Maybe just a bit before we dive into the numbers. I think you guys have been articulating ACV growth and net new ACV dollars, kind of the best KPIs for Pega right now. Maybe just kind of explain that logic rationale in terms of if people are outside in looking at the performance of the business, why those are the best indicators.
Sure. We started ACV when we were going through the transition because we knew that our revenue was going to convert to subscription for perpetual. There was gonna be a lot of noisiness in the revenue, as, you know, as lots of other companies have went through. We knew that was gonna happen. The growth in the business was most represented with the growth in what we build clients which is the annual contract value. We established the annual contract value as the best metric. It's analogous to ARR.
We, I think that is the best measure for a subscription business, is the increased spend with your clients. We kind of, because of some of the noise in the revenue line, non-GAAP operating margin or EBITDA or something, wasn't really a great representation, excuse me, for what was happening in the business. Most companies take EBITDA, subtract CapEx, or come up with to try to get to free cash flow, and we just decided, let's just go right to free cash flow.
Right? There's no reason. We just said, ACV, free cash flow, it's how much do you increase the billings every year and how much do you get back to be able to distribute to shareholders or use for other strategic investments. What we also look at is we also pay a lot of attention to our stock-based compensation right? Which is kind of the other lever. We look at that percentage of stock-based compensation compared to our revenue, our market cap, our number of shares. We really look at ACV, free cash flow, and then also free cash flow less our stock-based compensation. That's how we kinda measure whether we're generating value for our shareholders.
Okay. Perfect. In the quarter, I think it was, what, 14% constant currency growth?
Yes.
Pega Cloud ACV was 20%, exceeding expectations. You put out initial guidance, which is an acceleration of growth in the top line, and I think the margin expectations well exceeded kinda where people were at. Maybe just kinda help us understand what is the true driver of your performance on the top line? Is it kinda what maybe was Blueprint doing or not? Then kinda what gives you confidence in the 26 numbers and your ability to go out and compound that free cash flow growth at, I mean, at numbers that are quite actually impressive.
I'll touch on the growth first. Blueprint has completely unlocked value in how we can scale new logos and go after new opportunities and help drive transformation faster with our existing clients and new ones. We feel very confident making some strategic investments in sales and marketing to help to accelerate that. We, you know, we have a, we have a modest acceleration, from 14%-15%. That'll come from new logos. We go our net, our net retention rate, you know, it might move around a little, but it's clustered in a, in a pretty tight range over the last five to 10 years.
We feel pretty confident that that's a, that's a durable number, and then we're focusing on new logos kind of filling that gap to get acceleration and growth. You think about the operating margin, the operating leverage, the free cash flow piece, you know, we have built, and we're quite proud of the culture that we built around profitability. Right? You know, we were, you know, we never had, you know, free cash flow margins, you know, before the transition above 20% and probably more like 10%-15%. When we went on this journey, we as a company, we put all of our, all of our bonus plans, all of our targets, everything on Rule of 40.
We said, "We're gonna be a Rule of 40 company." At the time we did this, we were like a Rule of 20 company, and we said, "We're gonna become a Rule of 30, then we're gonna become a Rule of 40, then we're gonna get our cash flow, we're gonna accelerate our growth." We've done each one of those things. I think the change that we've made in terms of people appreciating the value of being a profitable business, is probably actually more impressive at Pega than actually the movement to subscription. You, then you kind of flip over to, how are you gonna continue to get operating leverage, right? We're a free cash.
You're coming up what, 45% free cash flow growth last year?
We had, two years ago, we had, you know, I don't know, 1,000% free cash flow growth, and then we had like, you know, 60%, and then we've got, you know, another you know, 40+%. Our free cash flow growth is about 17 right now on, but we're still getting some operating leverage. The key for me is, what can a well-run business drive in free cash flow as a percentage of kind of that subscription base? Until we get to the 35%-40% range, I think we have room to get better. You know, we're kind of, you know, a little north of 30 right now, and that's an impressive number.
I think we can do better. Like I said, the commitment to the value of that across Pega, it's not about being greedy, it's about running a good business and returning value to our shareholders, and creating a credible stability for our customers. 'Cause the more profitable you are, the more stability you have to deliver for your customers.
Sure. That's really quite impressive. I think more importantly, your ability to kind of tailor the organization culturally, that this is something that's now embedded in everyone's operating philosophy and the desire to want to go and kind of achieve these goals. Maybe just kind of one follow-up on the on the ACV targets for the year. I think last year there were some renewals that I think were earlier in the year. Maybe just kinda help us understand the arc or trajectory that we should expect as it relates to kind of the hitting the ACV milestone.
Yeah. I'm glad you mentioned that. Last year was a little bit of a different year where we did not have a back-end loaded renewal cycle, we ended up, w e didn't in 2024, it kinda, it kinda rolled over into the first quarter of 2025. Q1 of 2025 was a very impressive quarter, not really a fair compare to 2026. 2026, the way our renewal cycle and the way our pipe build is to compelling events with our clients tends to be more second half loaded. Which means that our year will look more like a traditional enterprise software company where your Q4 tends to be your biggest quarter, whereas last year, Q1 was our biggest quarter.
Okay.
You'll see some deceleration in our ACV growth in the first quarter just because of the tough compare.
Got it.
And then you'll build your way back up to the end of the year. That's the way we see it modeling.
Understand. Before I shift to capital allocation, any questions in the room? Okay. All right, the board recently approved, I think, an additional $1 billion share repurchase. Obviously strong growth in the quarter, great guide on cash flow, generating a ton. I think you're trading low double digits on a cash flow basis. 11, 12, multiple. What's your strategy right now in terms of buyback? Is it, "Let's lean into this because we know we have and we don't like the price?" Or is it, "Hey, we wanna lean in, but we don't wanna over-index just in case there are things we wanna invest in or companies we can acquire?
Yeah. I think it's more the latter. Like, l ook, it's hard to justify, you know, an acquisition IRR when you're trading at sub 15 times free cash flow and you're growing 15% like, that's a hard argument to make. We feel like we should use as much cash as practical to buy back shares. We feel like that's a great investment. You know, I've had some investors ask the question, like, "Why don't you go out and get, you know, $1 billion or $2 billion of debt and buy back shares?" I'm not saying that's a crazy idea. It does put pressure on options.
You don't give yourself options, like options that something might come to the market. We might wanna make an investment. We don't wanna put ourselves in a situation that we don't allow ourselves. We've worked so hard to get to the free cash flow generation that we have. We wanna make sure that we use that as a powerful option of how we can drive our strategy. We're gonna be very aggressive with buybacks, which is why, you know, the board approved an extra $1 billion, and we've run, largely run through the first $800 million or so of what was approved. And we've got, you know, we've got really the potential to buy back that $1 billion, you know, between now and, you know, the middle of next year.
Okay.
We're gonna be very thoughtful about accelerating those buybacks, but also, you know, careful to give ourselves options.
Okay. Maybe as we just start to wrap up here, we just have a few minutes left. Post-earnings, I'm sure your callbacks, maybe just a view on the general sentiment, then perhaps what are the most misunderstood or underappreciated aspects of the story that kinda while we were up here on this platform, we can just use as a kind of, you know, mouthpiece to really get that story out there pretty clearly?
I think that investors that know Pega, you know, are pretty impressed with, you know, the results that we've put up and the progress we've made over the last few years. The feedback we've got from investors are, I think they're very appreciative of us, you know, doing what we said we were gonna do, you know, I think that should be a given with public companies, but unfortunately it's not. We're proud to deliver for our shareholders. I think that they're very interested in Blueprint, very excited about, you know, the agentic capabilities that we've released and how those fit into faster digital transformation. I think they're very excited about new logos and our ability to go after new logos. They're curious about this, you know, using system integrators and the autonomous partner selling to try to have a new sales channel.
I think those are all things that they're excited about. To hit the second part of that question, which is what's misunderstood? I think probably the, I only realize this now because of the discussions around AI and kind of the, you know, the SaaS apocalypse or whatever they're calling it these days. I think there is a deep misunderstanding with why Pega exists. Pega exists to build deterministic workflows for regulated industries, regulated workflows that have consumers or citizens on the other side. These are things that don't just go away. The reason why they use someone like Pega is 'cause they need zero error, full predictability, scalability.
I think that we never really talked about that before. Because it was kind of almost assumed. I think now it's much more relevant because it's really the reason why we have a moat, the reason why we're sticky. The reason why clients expand with us is because we are a known and dependable workflow platform for them to execute a lot of that work.
It's 9-9-9-9-9-9-9 in terms of simple numbers.
I use the example of why do people use mainframe and still use mainframe? 'Cause there's a high level of reliability, right?
Okay.
Pega is analogous to that in terms of reliability.
Okay, last one just on the Investor Day. You guys are in PegaWorld this year, and then perhaps, dates, and then maybe rough agenda for people just thinking about what's to come.
PegaWorld is, we have PegaWorld in June. You can come to pega.com and get the dates. We have our Investor Day is on Monday, of PegaWorld. We will typically, what we'll do is we'll have a discussion of some of our new capabilities at a little bit of a deeper level that we talk about on the main stage. We're gonna actually have, this year we're targeting to have a customer actually come into the Investor Day and talk about their use of Blueprint across their organization, how it's changed their engineering organization and the efficiency.
Then I'll typically wrap up with a financial update model of our, like, we call it our long-term model, but typically over the next three years, I'll do that. We encourage all of our investors to go to our, you know, our Innovation Hub and to go talk to clients and to kind of really use it as a, you know, learn more about Pega.
Okay. All right. Thank you, Ken, and thank you guys for being here. Appreciate it.
Awesome. Thanks. Thanks, man.