Pegasystems (PEGA) investor relations material

Business transformation and AI strategy

• Focused on automating enterprise workflows using AI and decisioning to deliver best-in-class outcomes, with applications in onboarding, customer service, and ERP.

• Major transformation over the past decade includes a shift to cloud, subscription models, and a significant increase in free cash flow from $20M to nearly $500M.

• Over 50% of business now operates on cloud, up from 3% ten years ago.

• Pega Blueprint, a generative design agent, is the key innovation of the last 24 months, aiming to expand the addressable market.

Pega Blueprint: Product innovation and impact

• Blueprint accelerates digital transformation by drastically reducing upfront design and implementation time, sometimes from months to a single afternoon.

• Utilizes generative AI to create initial application designs using client documentation and best practices, enabling rapid prototyping and stakeholder feedback.

• Hundreds of thousands of Blueprints have been created in 18 months, with clients and partners independently leveraging the tool.

• Blueprint is used as a lead-in for all client engagements, shifting from traditional consultative approaches to immediate, hands-on design sessions.

• Monetization is based on activity usage rather than user licenses, aligning value with client outcomes.

Partner ecosystem and customer adoption

• System integrators and hyperscalers are being equipped with branded Blueprints to drive autonomous partner selling.

• Vodafone and Cognizant are notable adopters, using Blueprint as a prerequisite for engineering sprints and transformation discussions.

• Blueprint lowers barriers for new client acquisition, enabling prospects to self-serve and experiment with the platform online.