Pegasystems Inc (PEGA) 2022 Q3 法說會逐字稿

Good day, and welcome to the Pegasystems Third Quarter 2022 Earnings Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ken Stillwell, COO and CFO. Please go ahead.

美好的一天，歡迎參加 Pegasystems 2022 年第三季度收益結果電話會議。今天的會議正在錄製中。在這個時候，我想把會議交給首席運營官兼首席財務官 Ken Stillwell。請繼續。

Good evening, ladies and gentlemen, and welcome to Pegasystems Q3 2022 Earnings Call.

晚上好，女士們，先生們，歡迎來到 Pegasystems 2022 年第三季度財報電話會議。

Before we begin, I'd like to read our safe harbor statement. Certain statements contained in this presentation may be construed as forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The words expects, anticipates, intends, plans, believes, will, could, should, estimates, may, targets, strategies, projects, forecasts, guidance, likely and usually or variations of such words and other similar expressions identify forward-looking statements, which speak only as of the date the statement was made and are based on current expectations and assumptions. Because such statements deal with future events, they are subject to various risks and uncertainties. Actual results for fiscal year 2022 and beyond could differ materially from the company's current expectations. Factors that could cause the company's results to differ materially from those expressed in forward-looking statements are contained in the company's press release announcing its Q3 2022 earnings and in the company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2021, and other recent filings with the SEC. Investors are cautioned not to place undue reliance on such forward-looking statements, and there are no assurances that the matters contained in such statements will be achieved.

在我們開始之前，我想閱讀我們的安全港聲明。本演示文稿中包含的某些陳述可能被解釋為 1995 年《私人證券訴訟改革法案》中定義的前瞻性陳述。預期、預期、打算、計劃、相信、將、能夠、應該、估計、可能、目標、戰略、項目、預測、指導、可能和通常或此類詞語和其他類似表達的變體識別前瞻性陳述，這些陳述僅在陳述發表之日發表，並基於當前的預期和假設。由於此類陳述涉及未來事件，因此它們受到各種風險和不確定性的影響。 2022財年及以後的實際業績可能與公司目前的預期大相徑庭。可能導致公司業績與前瞻性陳述中表達的結果存在重大差異的因素包含在公司宣布其 2022 年第三季度收益的新聞稿和公司提交給證券交易委員會的文件中，包括其表格 10 的年度報告-截至 2021 年 12 月 31 日止年度的 K，以及最近向 SEC 提交的其他文件。告誡投資者不要過分依賴此類前瞻性陳述，並且不保證此類陳述中包含的事項將會實現。

Although subsequent events may cause our view to change, except as required by applicable law, we do not undertake and specifically disclaim any obligation to publicly update or revise these forward-looking statements whether as a result of new information, future events or otherwise.

儘管後續事件可能導致我們的觀點發生變化，但除適用法律要求外，我們不承擔並明確否認任何義務公開更新或修改這些前瞻性陳述，無論是由於新信息、未來事件或其他原因。

And with that, I will turn the call over to Alan Trefler, Founder and CEO, Pegasystems.

有了這個，我將把電話轉給 Pegasystems 的創始人兼首席執行官 Alan Trefler。

Thank you, Ken, and thank you to everyone who's joined today's call. I'm pleased with this quarter's results. In fact, this is by far the best quarter we've had this year. As we discussed last quarter, we've become very focused on how we manage our business with a goal of balancing growth and profit to be a Rule of 40 company as we exit 2024.

謝謝你，Ken，也感謝所有參加今天電話會議的人。我對本季度的結果感到滿意。事實上，這是迄今為止我們今年表現最好的一個季度。正如我們上個季度所討論的那樣，我們已經非常關注我們如何管理我們的業務，目標是在我們退出 2024 年時平衡增長和利潤，成為 40 條規則的公司。

We reassessed our business outlook in July, and Q3 is a positive indicator that we are making progress. We continue to make operational efficiency a priority, limiting increases to our cost structure until we're confident of tangible benefits. And you can see evidence of progress in our results.

我們在 7 月重新評估了我們的業務前景，第三季度是我們正在取得進展的積極指標。我們繼續將運營效率作為優先事項，限製成本結構的增加，直到我們對切實的收益充滿信心。您可以在我們的結果中看到進步的證據。

On a non-GAAP basis, year-over-year operating expense increased less than 3% in Q3. The slowest year-over-year growth in operating expenses we've seen for years despite a high inflation environment. Ken will talk in more detail about the numbers in a few minutes.

按非公認會計原則計算，第三季度運營費用同比增長不到 3%。儘管通貨膨脹環境很高，但我們多年來看到的運營費用同比增長最慢。肯將在幾分鐘內更詳細地討論這些數字。

At the same time that we've been working across our business, we've been doing a special focus with regard to how we go to market and our client focus. We've realigned the organization to really focus on the largest global clients, where we believe we have the most upside for profitable growth. We know there is significant opportunity to increase our presence with these clients who know us, trust us and have often already experienced success using our software.

在我們一直在開展業務的同時，我們一直在特別關注我們如何進入市場和以客戶為中心。我們對組織進行了重新調整，以真正專注於最大的全球客戶，我們相信我們在這些客戶中擁有最大的盈利增長空間。我們知道，在這些了解我們、信任我們並且經常使用我們的軟件取得成功的客戶中，我們有很大的機會來增加我們的影響力。

Take the government area for instance. We have a robust heritage of success working with many of the largest government agencies around the world to help them achieve modernization goals and transform the digital experience for their staff and constituents. And we continue to increase our presence. For example, in Q3, we expanded our footprint in the U.S. Department of Justice and Veteran Affairs, as well as the State of California, who are using our intelligent automation capabilities to improve efficiency, ultimately providing better experiences for their constituents.

以政府區域為例。我們與世界上許多最大的政府機構合作，幫助他們實現現代化目標並改變其員工和選民的數字體驗，有著悠久的成功傳統。我們繼續增加我們的存在。例如，在第三季度，我們擴大了在美國司法部和退伍軍人事務部以及加利福尼亞州的足跡，它們正在利用我們的智能自動化能力來提高效率，最終為其選民提供更好的體驗。

Also, last quarter, we expanded our work with a U.K. shared services program out of the cabinet office. They provide workflow automation services to numerous ministries and are expanding their use of Pega's workflow automation to deliver pay and pension services to the Ministry of Defense. And then we've been conducting events like a Pegathon at one of the largest U.S. federal agencies. It started with Low-Code workshops that were attended by over 300 of our clients' employees to learn about Pega and get their hands-on experience with it and it culminated with hundreds of participants in a live build event to showcase their innovations.

此外，上個季度，我們通過內閣辦公室之外的英國共享服務計劃擴展了我們的工作。他們為眾多部委提供工作流程自動化服務，並正在擴大對 Pega 工作流程自動化的使用，以向國防部提供薪酬和養老金服務。然後我們一直在美國最大的聯邦機構之一舉辦像 Pegathon 這樣的活動。首先是 Low-Code 研討會，我們客戶的 300 多名員工參加了這些研討會，以了解 Pega 並獲得他們的實踐經驗，最終數百名參與者在現場構建活動中展示了他們的創新。

I was thrilled because I was able to spend nearly half of the quarter meeting with key clients and partners, including a run through Asia Pacific, India, Singapore, Australia and then on to the U.K. and Europe, After 2.5 years of being unable to visit clients, it was really energizing to get back on the road in a significant way. I met with some of our most strategic and longest standard financial services clients at Sibos, a premier financial community conference that had over 8,000 attendees. I had a chance to spend time with our 2 very first clients who have been with us funding our software since 1984 through multiple generations of the technology, and obviously, a rapidly changing and extensively changed technical and business landscape.

我很興奮，因為我能夠在本季度將近一半的時間與主要客戶和合作夥伴會面，包括在亞太地區、印度、新加坡、澳大利亞以及英國和歐洲的一次跑步，在 2.5 年無法訪問之後客戶們，以一種重要的方式重新上路確實令人振奮。我在有超過 8,000 名與會者的首屈一指的金融社區會議 Sibos 上會見了我們一些最具戰略性和最長標準的金融服務客戶。我有機會與我們的 2 位第一批客戶共度時光，他們自 1984 年以來通過多代技術為我們的軟件提供資金，顯然，這是一個快速變化和廣泛變化的技術和業務環境。

At this event, we have more than 90 significant meetings with clients. And I met personally with about 45 clients and partners. It was great to hear their confidence in our ability to help them solve their pressing business challenges. And I'm gratified to hear that Pega continues to be seen as a critical strategic partner in digital transformation efforts. And many of them talk about their intentions to further invest in Pega.

在本次活動中，我們與客戶舉行了 90 多次重要會議。我親自會見了大約 45 位客戶和合作夥伴。很高興聽到他們對我們幫助他們解決緊迫的業務挑戰的能力充滿信心。我很高興聽到 Pega 繼續被視為數字化轉型努力的關鍵戰略合作夥伴。他們中的許多人都談到了進一步投資 Pega 的意圖。

Back at home, we've been very busy hosting clients and partners at our Cambridge headquarters, at our new Edge Center for Innovation. In Q3, we held more than 20 meetings with clients like Achmea from Europe, Ford and Siemens, giving me more opportunities to connect in person with some of the key people.

回到國內，我們一直忙於在我們的劍橋總部和新的邊緣創新中心接待客戶和合作夥伴。在第三季度，我們與來自歐洲的 Achmea、福特和西門子等客戶舉行了 20 多次會議，讓我有更多機會與一些關鍵人物進行面對面的交流。

I've heard a few consistent themes. One is our clients continue to face multiple issues like we talked about last quarter, from labor shortages to rising inflation, to supply chain interruptions, and many are bracing for a recession. And they want help in tackling short-term challenges while supporting their long-term strategic goals.

我聽過一些一致的主題。一是我們的客戶繼續面臨著我們上個季度談到的多個問題，從勞動力短缺到通脹上升，再到供應鏈中斷，許多人正在為經濟衰退做準備。他們需要幫助來應對短期挑戰，同時支持他們的長期戰略目標。

As I said, I believe that Pega is uniquely suited to help enterprises manage through such uncertainty while building for the future. And in an environment where efficiency and productivity are paramount, our low-code software platform for AI-powered decisioning and workflow automation, helps demanding enterprises work smarter, unify experiences, save money and adapt quickly.

正如我所說，我相信 Pega 非常適合幫助企業在構建未來的同時應對這種不確定性。在效率和生產力至關重要的環境中，我們用於人工智能決策和工作流程自動化的低代碼軟件平台可幫助要求苛刻的企業更智能地工作、統一體驗、節省資金并快速適應。

At times like these, we also know that many organizations prefer to do business with partners they know and who inspire confidence because their products have worked and are providing strategic value even as economic environments change.

在這種情況下，我們也知道許多組織更願意與他們認識的合作夥伴開展業務，這些合作夥伴能夠激發信心，因為即使經濟環境發生變化，他們的產品也能發揮作用並提供戰略價值。

Now part of that confidence, I think, comes from our continued focus on innovation, to deliver the industry's best technology platform for our clients. Since we last spoke, we've continued to enhance our software to make it easier for our clients to be productive and to address their employees and their customers' needs.

現在，我認為，這種信心的一部分來自於我們對創新的持續關注，為我們的客戶提供業界最好的技術平台。自從我們上次發言以來，我們一直在不斷改進我們的軟件，以使我們的客戶更容易提高生產力並滿足他們的員工和客戶的需求。

I'm really excited about the latest addition of Pega Infinity, which we announced last week. This newest release helps transform how organizations quickly deploy apps, create smarter workflows, deliver better experience for our employees and customers with enhancements throughout our software suite. New features empower brands with enterprise-wide pragmatic AI that works behind the scenes to increase efficiency, speed innovation and improve customer interactions. This improves end user experiences and helps deliver better apps. Combining AI with automation in a well-architected platform helps employees with their productivity, let's them make better decisions and let's them improve business performance.

我對我們上周宣布的最新加入的 Pega Infinity 感到非常興奮。這個最新版本有助於改變組織快速部署應用程序的方式，創建更智能的工作流程，為我們的員工和客戶提供更好的體驗，並在我們的整個軟件套件中進行增強。新功能為品牌提供企業範圍內的實用人工智能，該人工智能在幕後工作，以提高效率、加速創新和改善客戶互動。這改善了最終用戶體驗並有助於交付更好的應用程序。在架構完善的平台中將 AI 與自動化相結合可幫助員工提高工作效率，讓他們做出更好的決策並提高業務績效。

We also continue to receive recognition from leading analyst firms and other third parties. Earlier this month, Pega was named a leader in Know Your Customer, or KYC solutions, by Chartis Research, a leading risk technology analyst firm that focuses on this important sector. Know Your Customer standards are designed to protect financial institutions against fraud, corruption and money laundering, terrorist financing and are increasingly important for international banks, and we see tremendous interest in this area. The report evaluated the 32 most significant KYC providers across 4 criteria, and Pega received the highest possible scores in 3 of those categories.

我們還繼續獲得領先分析公司和其他第三方的認可。本月早些時候，Pega 被專注於這一重要領域的領先風險技術分析公司 Chartis Research 評為了解您的客戶或 KYC 解決方案的領導者。了解您的客戶標準旨在保護金融機構免受欺詐、腐敗和洗錢、恐怖主義融資，並且對國際銀行越來越重要，我們看到了對這一領域的巨大興趣。該報告根據 4 個標準評估了 32 家最重要的 KYC 提供商，Pega 在其中 3 個類別中獲得了最高分。

And in September, we were recognized by Gartner as the highest ranked vendor out of 14 in its 2022 Critical Capabilities for Salesforce Automation. The report states, Pegasystems offers exceptional automation and process management within its CRM. Pegasystems vision is one of autonomous CRM, where automation offloads repetitive work and AI assists users, increasing their efficiency and improving the delivered customer experience.

9 月，我們被 Gartner 評為 2022 年 Salesforce 自動化關鍵能力的 14 家供應商中排名最高的供應商。報告指出，Pegasystems 在其 CRM 中提供卓越的自動化和流程管理。 Pegasystems 的願景是自主 CRM 之一，其中自動化卸載重複性工作，人工智能幫助用戶，提高他們的效率並改善交付的客戶體驗。

Now as you likely know by now, little makes me happier than clients who are willing to go on public record with their success stories. And we've just posted 2 new videos on pega.com that you might want to take a look at. QBE, a global insurer, with policyholders in 140 countries, recently completed a video testimonial you can find on our website. They leveraged Pega Intelligent Automation to free up over 50,000 of employee time a year -- 50,000 hours of employee time a year. And W&W, a leading German financial services group also completed a video describing their use of how Pega supports their customer engagement and how they've gone about to create a Pega Center of Excellence to support and guide their transformation initiatives.

正如您現在可能知道的那樣，沒有什麼比願意公開他們的成功故事的客戶更讓我高興的了。我們剛剛在 pega.com 上發布了 2 個新視頻，您可能想看看。 QBE 是一家全球保險公司，在 140 個國家/地區擁有保單持有人，最近完成了一段視頻推薦，您可以在我們的網站上找到。他們利用 Pega Intelligent Automation 每年騰出超過 50,000 名員工的時間——每年 50,000 小時的員工時間。德國領先的金融服務集團 W&W 也完成了一段視頻，描述了他們使用 Pega 如何支持客戶參與以及他們如何創建 Pega 卓越中心來支持和指導他們的轉型計劃。

Now regarding our company culture, I continue to be proud during these difficult post-pandemic times of our resilient and passionate teams. Their commitment to our clients, partners, the communities they serve and to each other, and looking to create a vibrant, diverse and equitable culture. I'm happy to see how our people are adopting a Rule of 40 mindset across the company to bring the sort of value to our constituencies. And as people are getting back together in person, I'm seeing teams combining meetings with volunteer or fundraising activity for the causes they believe in. This is fostering terrific collaboration and providing support for causes that matter to our clients as well. I continue to be inspired by the generosity and kindness of our people towards each other, as well as towards those in need.

現在，關於我們的公司文化，在我們富有彈性和熱情的團隊的這些艱難的大流行後時期，我繼續感到自豪。他們對我們的客戶、合作夥伴、他們所服務的社區以及彼此之間的承諾，並希望創造一個充滿活力、多元化和公平的文化。我很高興看到我們的員工如何在整個公司採用 40 規則的思維方式為我們的選區帶來這種價值。隨著人們重新聚在一起，我看到團隊將會議與志願者或籌款活動相結合，以實現他們所相信的事業。這促進了極好的合作，並為對我們客戶也很重要的事業提供支持。我繼續受到我們人民對彼此以及對那些需要幫助的人的慷慨和善意的啟發。

So in summary, I'm pleased with our results this quarter that show progress towards adopting the Rule of 40 vision, making that happen. I believe the discipline and focus we're driving in our go-to-market strategy is absolutely the right approach. And I'm excited about the way it's feeling and what we're seeing. And though we continue to operate in an environment of significant volatility, we believe that our software is uniquely suited to address these times and that we have appropriately changed how we are going to market to make that clearer to our clients and prospects.

總而言之，我對我們本季度的結果感到滿意，這表明在採用 40 條規則願景方面取得了進展，並實現了這一目標。我相信我們在進入市場戰略中所推動的紀律和重點絕對是正確的方法。我對它的感覺和我們所看到的感到興奮。儘管我們繼續在劇烈波動的環境中運營，但我們相信我們的軟件非常適合應對這些時代，並且我們已經適當地改變了我們的營銷方式，以使我們的客戶和潛在客戶更清楚這一點。

To provide more color on the financial results, let me now turn it over again to Ken Stillwell. Ken?

為了給財務結果提供更多色彩，現在讓我再把它交給肯斯蒂威爾。肯?

Thanks, Alan. Our team executed very well in Q3 in what was, as Alan mentioned, very uncertain times. I'm really happy with the way we finished the quarter given the economic environment that all of us are facing. In fact, it was the strongest quarter of the year for us. We had more $1 million-plus purchases by clients in Q3 than any other quarter this year, and our business was particularly strong in financial services and had some nice contributions from our public sector.

謝謝，艾倫。正如 Alan 所說，我們的團隊在第三季度的表現非常好，那是非常不確定的時期。鑑於我們所有人都面臨的經濟環境，我對我們完成本季度的方式感到非常滿意。事實上，這對我們來說是一年中最強勁的季度。今年第三季度，我們的客戶購買量超過 100 萬美元，比今年任何其他季度都多，我們的業務在金融服務方面特別強勁，公共部門也做出了一些不錯的貢獻。

As we continue our multiyear subscription transition, growth in annual contract value, or as we refer to an ACV, continues to be the most important metric to measure the success of our business. In Q3, total ACV grew 16% in constant currency year-over-year. Our ACV growth was powered by Pega Cloud ACV growth of 39% in constant currency year-over-year, which reached $416 million. Pega Cloud ACV reached 40% of our total ACV for the first time, and it continues to be our fastest growing ACV component.

隨著我們繼續進行多年訂閱過渡，年度合同價值的增長，或者我們所說的 ACV，仍然是衡量我們業務成功與否的最重要指標。第三季度，按固定匯率計算，總 ACV 同比增長 16%。我們的 ACV 增長得益於 Pega Cloud ACV 同比增長 39%，達到 4.16 億美元。 Pega Cloud ACV 首次達到我們總 ACV 的 40%，它仍然是我們增長最快的 ACV 組件。

We've clearly made some good progress in improving our go-to-market execution in Q3. And I want to remind you that Q3 2021 was a strong ACV growth quarter. So Q3 2022 faced a relatively tough compare.

顯然，我們在改善第三季度的上市執行方面取得了一些良好進展。我想提醒您，2021 年第三季度是 ACV 增長強勁的季度。因此，2022 年第三季度面臨著相對艱難的比較。

The second most important metric to measure the success of our business during our subscription transition is growth in remaining performance obligation, RPO, or backlog, Total backlog grew 18% in constant currency year-over-year. Pega Cloud bookings were the largest contributor to backlog growth in the quarter. Pega Cloud backlog grew additionally by a very high pace at constant currency year-over-year of over 30%.

在訂閱過渡期間衡量我們業務成功的第二個最重要指標是剩餘履約義務、RPO 或積壓的增長，總積壓按固定貨幣計算同比增長 18%。 Pega Cloud 預訂是本季度積壓增長的最大貢獻者。 Pega Cloud 積壓訂單也以超過 30% 的固定匯率同比增長非常快。

Volatile foreign currency exchange rates continue to reduce our reported results, which is why we're focusing on being very clear with our constant currency performance. We are primarily exposed to changes in the currency values associated with the U.S. dollar, the euro, the British pound and the Australian dollar. For example, the persistent strengthening of the U.S. dollar negatively impacted ACV growth.

波動的外幣匯率繼續降低我們報告的結果，這就是為什麼我們專注於非常清楚我們的恆定貨幣表現。我們主要面臨與美元、歐元、英鎊和澳元相關的貨幣價值變化。例如，美元的持續走強對 ACV 的增長產生了負面影響。

When normalizing exchange rates from Q3 2021 to Q3 2022, total ACV was reduced by $58 million year-over-year. We've included charts in our earnings release to illustrate the currency impact of both ACV and on backlog.

在將 2021 年第三季度至 2022 年第三季度的匯率正常化時，總 ACV 同比減少了 5800 萬美元。我們在收益發布中包含了圖表，以說明 ACV 和積壓的貨幣影響。

And then moving to the status of our subscription transition. We're in the final phase of our multiyear subscription transition, and we expect to wrap it up in mid-2023, as previously communicated. In this final phase, we expect profitability and cash flow to normalize, positioning Pega to achieve the Rule of 40 as we exit 2024. As a reminder, we define Rule of 40 as a combination of ACV growth and free cash flow margin. Given our best-in-class enterprise solutions and robust renewal rates, we think there is tremendous untapped earnings power in our company.

然後轉到我們的訂閱過渡狀態。我們正處於多年訂閱過渡的最後階段，我們預計將在 2023 年年中結束，正如之前所傳達的那樣。在最後階段，我們預計盈利能力和現金流將正常化，使 Pega 在我們退出 2024 年時實現 40 規則。提醒一下，我們將 40 規則定義為 ACV 增長和自由現金流邊際的組合。鑑於我們一流的企業解決方案和強勁的續訂率，我們認為我們公司有巨大的未開發盈利能力。

We are already seeing tangible results from the efforts to refocus our go-to-market motion. Our sales productivity has begun to improve in Q3 and was better than the first half sales productivity, an indication that our strategy to refocus our sales team on organizations with the highest propensity to purchase is working. Our go-to-market strategy focuses our sales teams on deeper client relationship engagement to tackle the considerable additional opportunities they have to expand their relationship with Pega by deploying new applications, expanding volume and capacity on existing solutions and embracing the digital business era.

我們已經看到重新聚焦我們的上市行動的努力取得了切實的成果。我們的銷售效率在第三季度開始提高，並且優於上半年的銷售效率，這表明我們將銷售團隊重新聚焦於購買傾向最高的組織的戰略正在奏效。我們的進入市場戰略將我們的銷售團隊重點放在更深入的客戶關係參與上，以通過部署新應用程序、擴大現有解決方案的數量和容量以及擁抱數字商業時代來解決他們必須擴大與 Pega 關係的大量額外機會。

We measure sales productivity by comparing net new ACV add in the period relative to sales and marketing spend. We plan to continue driving strong expansion purchase activity going forward to drive ACV and backlog growth.

我們通過比較該時期相對於銷售和營銷支出的淨新增 ACV 來衡量銷售效率。我們計劃繼續推動強勁的擴張購買活動，以推動 ACV 和積壓的增長。

Improving Pega Cloud gross margins and increasing sales and marketing operating leverage are 2 key drivers of our plan to achieve Rule of 40 as we exit 2024. It was encouraging to see improvement on both of these levers in Q3.

提高 Pega Cloud 毛利率以及增加銷售和營銷運營槓桿是我們計劃在 2024 年退出時實現 40 規則的兩個關鍵驅動因素。令人鼓舞的是，在第三季度看到這兩個槓桿都有所改善。

Moving to our outlook for the rest of the year. Through the first 3 quarters of 2022, Pega Cloud represented just under 70% of our new client commitments, which is higher than the 50% we expected when we set our plan for the year. Just to remind you, a higher Pega Cloud mix negatively impacts reported revenue in the current period.

轉向我們對今年剩餘時間的展望。到 2022 年前三個季度，Pega Cloud 占我們新客戶承諾的近 70%，高於我們制定年度計劃時預期的 50%。提醒您，更高的 Pega Cloud 組合會對當前期間的報告收入產生負面影響。

In Q2 2022, we communicated our intention to implement cost-saving initiatives to reduce the impact of the previously announced revenue shortfall on our profitability. I'm happy to share that we've made great progress against those cost-saving initiatives, and you're already seeing the impact of that work flow through our financial results.

在 2022 年第二季度，我們傳達了實施成本節約計劃的意圖，以減少先前宣布的收入短缺對我們盈利能力的影響。我很高興與大家分享，我們在這些節省成本的舉措方面取得了巨大進展，您已經通過我們的財務業績看到了該工作流程的影響。

In Q3 2022, Pega Cloud gross margin improved 400 basis points, increasing from 67% in Q3 2021 to 71% in Q3, 2022. And on a trailing 12-month basis, after several quarters -- several years, excuse me, a quarter-on-quarter growth of 200 to 300 basis points or more, the quarter-over-quarter on growth in sales and marketing expense has been flat for the last 2 quarters.

在 2022 年第三季度，Pega Cloud 毛利率提高了 400 個基點，從 2021 年第三季度的 67% 增加到 2022 年第三季度的 71%。在過去 12 個月的基礎上，經過幾個季度 - 幾年，對不起，一個季度- 環比增長 200 至 300 個基點或更多，過去兩個季度銷售和營銷費用的環比增長持平。

As we continue to navigate a very uncertain economic environment, especially in Europe, we plan to do what Pega does best, deliver best-in-class mission-critical solutions to the world's largest clients. Pega has successfully grown revenue through difficult economic times in the past by focusing on large enterprise clients who have the highest propensity to purchase Pega and receive value from the solutions that we offer. We are fortunate to have so many marquee customers in our installed base with tremendous additional opportunity that we have not yet tapped.

隨著我們繼續在非常不確定的經濟環境中航行，尤其是在歐洲，我們計劃做 Pega 最擅長的事情，為世界上最大的客戶提供一流的關鍵任務解決方案。 Pega 通過專注於最有購買 Pega 並從我們提供的解決方案中獲得價值的大型企業客戶，成功地在過去的經濟困難時期增加了收入。我們很幸運在我們的安裝基礎中擁有如此多的大型客戶，以及我們尚未開發的巨大額外機會。

In addition, this installed base is led by the firms that will be able to most successfully weather, and if proven so, even prosper during difficult economic times. In our experience, many large enterprise clients consolidate vendors during times like these, which is one of the reasons why we're currently focusing less on capturing new logos as we believe, given high inflation and economic uncertain outlook, enterprises will focus even more on automation and digital transformation for efficiency gains, a demand catalyst for our intelligent automation product portfolio.

此外，這個安裝基礎由能夠最成功地度過難關的公司領導，如果證明如此，甚至在經濟困難時期也能繁榮發展。根據我們的經驗，許多大型企業客戶在這樣的時期整合供應商，這也是我們目前不太關注捕捉新標識的原因之一，因為我們認為，鑑於高通脹和經濟前景不明朗，企業將更加關注自動化和數字化轉型以提高效率，這是我們智能自動化產品組合的需求催化劑。

In conclusion, I'm really pleased with our Q3 2022 results, and really proud of our team. Given that we had some distractions in the first half of the year, it's great to see this positive Q3 performance and the business heading in the right direction. This is by far the best quarter we've had this year given the combination of growth in ACV, Pega Cloud and backlog, while at the same time, we're making progress managing the business and much more of a focus on operational discipline and profitable growth as we progress on our journey to achieve the Rule of 40 as we exit 2024.

總之，我對我們 2022 年第三季度的業績感到非常滿意，並為我們的團隊感到非常自豪。鑑於我們在上半年受到了一些干擾，很高興看到第三季度的積極表現和業務朝著正確的方向發展。鑑於 ACV、Pega Cloud 和積壓的增長相結合，這是我們今年迄今為止最好的一個季度，同時，我們在業務管理方面取得了進展，並且更多地關注運營紀律和隨著我們在 2024 年退出時實現 40 條規則的旅程取得進展，實現盈利增長。

Seeing us finish with a strong Q3 gives me confidence in our ability to finish the year well. I'm looking forward to seeing many of you as I hit the road for face-to-face investor meetings in November and December. I also want to encourage all of you to mark your calendars for our Investor Day on Monday, June 12, which will be held live and in person at PegaWorld in Las Vegas, Nevada at the MGM Grand. That's right, PegaWorld is live in '23, and we are excited.

看到我們以強勁的第三季度結束，讓我對我們有能力完成這一年充滿信心。我期待在 11 月和 12 月參加面對面的投資者會議時見到你們中的許多人。我還想鼓勵大家在日曆上標記我們 6 月 12 日星期一的投資者日，該日將在內華達州拉斯維加斯的 PegaWorld 米高梅大酒店現場和親自舉行。沒錯，PegaWorld 在 23 年上線，我們很興奮。

Operator, please open the line for questions.

接線員，請打開電話提問。

(Operator Instructions) Our first question comes from Kevin Kumar with Goldman Sachs.

（操作員說明）我們的第一個問題來自高盛的 Kevin Kumar。

Alan, I kind of wanted to touch on the public sector. I think you made a comment there on seeing relative strength there. I know Pega recently created a new entity of service to government customer base. So maybe a little bit on the rationale for the creation of that entity and what you're seeing from a demand perspective in the government sector relative to some of the other verticals would be helpful.

艾倫，我有點想談談公共部門。我認為您在那裡發表了關於看到那裡的相對實力的評論。我知道 Pega 最近為政府客戶群創建了一個新的服務實體。因此，也許對創建該實體的基本原理以及您從政府部門相對於其他一些垂直行業的需求角度所看到的情況有所幫助。

Sure. Well, it's interesting because we're seeing good interest in the government sector, not just in the U.S. where I mentioned the work with the Department of Justice, Veterans Affairs. We also have, as we've done for a long time, continued to work with, well, many other departments from IRS to Marshalls, et cetera.

當然。嗯，這很有趣，因為我們看到了對政府部門的濃厚興趣，而不僅僅是在我提到與司法部退伍軍人事務部合作的美國。正如我們長期以來所做的那樣，我們還繼續與從 IRS 到 Marshalls 等的許多其他部門合作。

But we're seeing some very, very strong interest from foreign governments as well. When I went through Australia, I passed through Camberra, which is the capital, and there is a lot of work that we're doing there. In the U.K., I met with some of the people where we are actually delivering the recruitment system for the U.K. Navy and Air Force. And as you think about what's happening here, the programs in many cases that were rolled out during the pandemic had a lot of bailing wire in them. And people have had to and have wanted to go back, and see if they can actually make sure that they are more stable and more secure. And there's still a strong, strong need for efficiencies in government that our software is being, I think, very well regarded for.

但我們也看到外國政府的一些非常非常強烈的興趣。當我經過澳大利亞時，我經過了首都坎貝拉，我們在那裡有很多工作要做。在英國，我遇到了一些我們實際上正在為英國海軍和空軍提供招聘系統的人。當您考慮這裡發生的事情時，在大流行期間推出的許多計劃中都有很多保釋金。人們不得不並且想要回去，看看他們是否真的可以確保他們更穩定、更安全。我認為，政府對效率的需求仍然非常強烈，我認為我們的軟件非常受重視。

So I think the rationale for liking the government space is that they tend to have lots of workflows. The workflows tend to be complex. And they often can get big, which is something we, I think, do unusually well.

所以我認為喜歡政府空間的理由是他們往往有很多工作流程。工作流程往往很複雜。而且它們通常會變大，我認為這是我們做得非常好的事情。

That's helpful. And then I wanted to touch on kind of some of the cost rationalization and kind of improvement on efficiency. I guess, maybe touch on free cash flow conversion, Ken. I know there's some volatility on a quarterly basis, but curious if cash flow margin is trending in line with your expectations. And should we expect that to track ahead of other metrics like operating income and net income as we kind of near the end of the model transition?

這很有幫助。然後我想談談一些成本合理化和效率改進。我想，也許涉及自由現金流轉換，肯。我知道每季度都會有一些波動，但很好奇現金流邊際的趨勢是否符合您的預期。我們是否應該期望在我們接近模型過渡結束時跟踪其他指標，如營業收入和淨收入？

Sure. So there's a couple of parts to that, Kevin, that I'll touch on. First off, our operating cash flow for 2022 does have some kind of nonrecurring headwind because of the legal expenses that we've added back to our non-GAAP EPS related to some of the legal discussions that you're well aware of. So that's -- there's 1 -- just to highlight that as a starting point.

當然。凱文，我會談到幾個部分。首先，我們 2022 年的運營現金流確實存在某種非經常性逆風，因為我們已將與您熟知的一些法律討論相關的法律費用添加回我們的非公認會計原則每股收益中。這就是-- 有1-- 只是為了強調這一點作為一個起點。

But yes, our operating cash flow, our working capital is staying relatively consistent as we scale. We've been doing a very good job on our DSO and accounts receivables. So certainly nothing there happening. And we know that cash flow is never a straight line for a company like Pega that has a lot of client engagements that have typically been initiated at the end of the year in Q4. So certainly, our billings are not linear through the year, not unlike other enterprise software companies.

但是，是的，我們的經營現金流，我們的營運資金在我們擴大規模時保持相對一致。我們在 DSO 和應收賬款方面一直做得很好。所以肯定沒有任何事情發生。而且我們知道，對於像 Pega 這樣的公司來說，現金流從來都不是一條直線，因為它有很多客戶參與，通常是在第四季度年底開始的。因此，當然，我們的帳單全年不是線性的，與其他企業軟件公司不同。

But we are -- I believe, that when we finish the year, we're going to have positive operating cash flow as we expected, even given some of the headwinds that I mentioned. And then when we get to next year, we'll be kind of that next step toward Rule of 40. And then in 2024, we'll be a Rule of 40 company. So the cash flow is trending as expected. It is still negative in this part of the year because, like I said, the billings are not as heavy in Q2 and Q3.

但是我們 - 我相信，當我們結束這一年時，即使考慮到我提到的一些不利因素，我們也會如我們預期的那樣擁有正的經營現金流。然後到明年，我們將成為邁向 40 規則的下一步。然後在 2024 年，我們將成為 40 規則公司。因此，現金流按預期趨勢發展。今年這一部分仍然是負面的，因為就像我說的那樣，第二季度和第三季度的賬單沒有那麼重。

Our next question comes from Steve Enders with Citi.

我們的下一個問題來自花旗銀行的史蒂夫·恩德斯。

I just want to ask about the strong sales execution that happened in the quarter here. I guess, how much of that was driven by some of these kind of delayed deals and some of the past activities that we saw in the first half (inaudible) some opportunities coming in? And then how should we kind of think about for the year, you talked about 16% ACV growth last quarter, the target for the year. How should we think about (inaudible) execution here?

我只想問一下這裡本季度發生的強勁銷售執行情況。我想，其中有多少是由一些此類延遲交易以及我們在上半年看到的一些過去活動（聽不清）帶來的一些機會？然後我們應該如何考慮今年，你談到了上個季度 16% 的 ACV 增長，這是今年的目標。我們應該如何考慮（聽不清）這裡的執行？

Sure. So we don't give guidance (inaudible) we assessed (inaudible) because we made the major set of changes to the way the go-to-market organization was structured. And I would tell you that the improvements in Q3 were, in my view, almost entirely as a result of the changes. It's not like deals slipped and suddenly came in. That wasn't it at all. A big part of what we did is we reoriented ourselves to saying, look, we have many hundred customers who are writing us checks every month or quarter. And we need to spend time on them. We need to make them successful like us. And in reality, the upside in those organizations is mind-numbing. It's tremendous, it's ample for our sales goals, frankly, for the next couple of years. So we're not completely eschewing a new name, but basically saying we're going to stop chasing them, which I think had been pretty materially the way we were going to market a while ago.

當然。因此，我們不提供我們評估（聽不清）的指導（聽不清），因為我們對上市組織的結構進行了一系列重大改變。我會告訴你，在我看來，第三季度的改進幾乎完全是變化的結果。這不像交易滑倒並突然進來。根本不是這樣。我們所做的很大一部分是我們重新定位自己說，看，我們有數百名客戶每個月或每個季度都在給我們開支票。我們需要花時間在他們身上。我們需要讓他們像我們一樣成功。實際上，這些組織的好處是令人麻木的。這是巨大的，坦率地說，這對於我們未來幾年的銷售目標來說是足夠的。因此，我們並沒有完全避免使用新名稱，而是基本上說我們將停止追逐它們，我認為這與我們不久前的營銷方式相當實質。

I think the results of our change in focus is what drove the better results in Q3. It wasn't a whale or 2 or a big slip deal or 2. As Ken said, it was very balanced. And that makes me feel good that the things we're doing are right, even as the economy is obviously seen as tough.

我認為我們改變重點的結果是推動第三季度取得更好結果的原因。這不是鯨魚或 2 或大滑點或 2。正如肯所說，它非常平衡。這讓我感覺很好，我們正在做的事情是正確的，即使經濟顯然被視為艱難。

And Steve, I'll add 1 additional thought on there. So Alan mentioned a couple of things. One, the breadth of the performance, meaning the contribution from lots of clients was really healthy. There sometimes you hit a quarter with like just 1 big deal or 2 big deals. That wasn't our Q3. That's really promising. Probably the most optimistic thing in the quarter is that breath of engagement with so many different clients.

史蒂夫，我會在那裡添加一個額外的想法。所以艾倫提到了幾件事。一是表現的廣度，意味著很多客戶的貢獻是非常健康的。有時你會在一個季度內完成 1 筆大交易或 2 筆大交易。那不是我們的第三季度。這真的很有希望。本季度最樂觀的事情可能是與眾多不同客戶的互動。

The second point is, you may remember me saying this, but with the change in our sales strategy, sales leadership and kind of our refocus we did experience distraction in Q2, and that even carried into July, as I mentioned previously, so even that said that we even had part of Q3 that had some level of distraction and we still executed well. And I think the reason why that may be is because -- and some of you may have heard me say this before, selling, upselling, expanding, cross-selling, et cetera, to existing logos is much more productive. In general -- this isn't a Pega thing, just in general, it's always more efficient to sell to an existing client than a new logo. So naturally, that helps with our Rule of 40 as well. And I think there's some of that happening in Q3 as well.

第二點是，你可能還記得我說過這句話，但是隨著我們的銷售策略、銷售領導力和我們重新聚焦的變化，我們確實在第二季度經歷了分心，甚至延續到了 7 月，正如我之前提到的，所以即使說我們甚至在第三季度的部分時間裡有一定程度的分心，但我們仍然執行得很好。我認為這可能是因為——你們中的一些人可能以前聽過我這樣說，對現有徽標進行銷售、追加銷售、擴展、交叉銷售等更有成效。一般來說——這不是 Pega 的事情，只是一般來說，向現有客戶銷售總是比新徽標更有效。很自然，這也有助於我們的 40 規則。我認為第三季度也發生了一些這樣的事情。

Okay. Great. That's very helpful couple of context there. I guess, kind of more like broadly, just thinking about the macro, and I know it is kind of a challenging time right now. How are you kind of viewing the pipeline and the opportunities as we think about 4Q? Has there been kind of any change in either deal dynamics, things slowing down or deals potentially coming in a little bit smaller than expected? How should we kind of think about what you're seeing in the current environment?

好的。偉大的。這對那裡的上下文非常有幫助。我想，更廣泛地說，只是考慮宏觀，我知道現在是一個充滿挑戰的時期。當我們考慮第四季度時，您如何看待管道和機會？交易動態、交易放緩或交易可能比預期小一點，是否有任何變化？我們應該如何看待您在當前環境中看到的情況？

Well, the style of engagement that we've been doing in the last several months, since we reoriented here, the sale of engagement is quite a bit different. It's not a lead response style where you have to worry in the same way about "deals" slowing down conversion during different parts of the funnel. That's not the style of selling. This is a full engagement style, understand the client strategy, demonstrate how we fit into that.

好吧，我們在過去幾個月裡一直在做的參與風格，因為我們在這裡重新定位，參與的銷售有很大的不同。這不是一種潛在客戶響應方式，您必須以同樣的方式擔心“交易”會在渠道的不同部分減慢轉換速度。這不是銷售風格。這是一種完整的參與方式，了解客戶戰略，展示我們如何適應這種方式。

And I actually think those deals are much more reliable in terms of being, frankly, influenced and controlled by us because it's not a mass or a market motion. That's especially true for organizations where we already are doing things that they're building on. And as Ken said in his examples, they decide they're going to put new workloads on, they're going to move to a different department, they're going to do an analogous function, they're building on the success that they've seen. This idea of the app factory which we talked about at the last quarter and have really, I think, been talking about a lot since the beginning of this year is, I think, really taking hold where customers are in effect setting up factories to be able to do increases in the automation and increases in the use. And we've taken steps to encourage customers to do that, to make it easier for them to get started on projects.

事實上，我認為這些交易更可靠，坦率地說，受我們的影響和控制，因為它不是大眾或市場運動。對於我們已經在做他們正在構建的事情的組織來說尤其如此。正如肯在他的例子中所說，他們決定要投入新的工作量，他們將轉移到不同的部門，他們將執行類似的職能，他們正在建立他們所取得的成功'已經看到。我們在上個季度談到的應用程序工廠的想法，我認為，自今年年初以來已經討論了很多，我認為，我認為，真正抓住客戶實際上建立工廠的地方能夠增加自動化和增加使用。我們已經採取措施鼓勵客戶這樣做，讓他們更容易開始項目。

And I also think that's going to lead to greater reliability even in a difficult -- and it is a difficult economic environment that some of these organizations are facing.

而且我還認為，即使在困難的情況下，這也會帶來更高的可靠性——其中一些組織面臨著困難的經濟環境。

Thanks for taking the questions.

感謝您提出問題。

Sure. It is nice selling to organizations that you know are going to be through at the other end. That is the other real advantage, I think, of this sort of style of going to market.

當然。向您知道將在另一端完成的組織進行很好的銷售。我認為，這是這種進入市場的方式的另一個真正優勢。

Our next question comes from Pinjalim Bora with JPMorgan.

我們的下一個問題來自摩根大通的 Pinjalim Bora。

This is Noah Herman on for Pinjalim. The first, just any major changes you've seen in the demand environment, specifically in the U.K. and APAC. And then for the full year, are there any changes to the revenue guidance that you laid out last quarter in terms of some of the impacts?

這是 Pinjalim 的 Noah Herman。首先，您在需求環境中看到的任何重大變化，特別是在英國和亞太地區。然後就全年而言，就某些影響而言，您上個季度製定的收入指導是否有任何變化？

Let me take that second part of the question, Alan, and then maybe you can give your perspective on APAC and EMEA. So as Alan mentioned earlier, we're not in the business of guiding quarterly. What I would tell you is where we said we were going to be 16% constant currency ACV. We were 16% constant currency ACV for Q3. That's certainly confirming indication that Q3 was kind of a step on that journey. The one factor, I think, that is not related to us guiding but just to keep this in mind, I mean, you know what happened with the dollar in Q3, right? That's the big wild card, right, is currency.

艾倫，讓我回答問題的第二部分，然後也許您可以就亞太地區和歐洲、中東和非洲地區發表您的看法。因此，正如 Alan 之前提到的，我們不從事季度指導業務。我要告訴你的是，我們說我們將成為 16% 的固定貨幣 ACV。我們第三季度的固定貨幣 ACV 為 16%。這無疑證實了第三季度是這一旅程的一步。我認為，一個因素與我們的指導無關，只是為了記住這一點，我的意思是，你知道第三季度美元發生了什麼，對吧？那是最大的外卡，對，是貨幣。

In terms of the fundamentals of our business, we anticipated that the economic environment was going to be deteriorating as we went through '22 and probably into '23, but I think we're executing well in that. But currency is definitely a prolonged and significant headwind to a company like Pega that has -- that reports in the U.S. dollar. And Alan, maybe on EMEA and APJ in terms of the demand environment, your perspective?

就我們業務的基本面而言，我們預計經濟環境將會惡化，因為我們經歷了 22 年甚至可能進入 23 年，但我認為我們在這方面表現良好。但對於像 Pega 這樣以美元報告的公司來說，貨幣絕對是一個長期而重大的逆風。艾倫，也許就需求環境而言，歐洲、中東和非洲和亞太及日本地區，你的看法？

Sure. Well, obviously, since we're selling in local currencies, just about always because customers expect that, obviously, the sale can get haircut by what the dollar has done, and that's just the way it goes. I would tell you, I've been in both significantly in both APAC and in the U.K. and also in Continental Europe in just the last 7, 8 weeks. And the demand environment, I would tell you, it is not pushing things off. It is not hard to get the meetings you want to get. People are interested in how they are going to transform in ways that will let them become more efficient.

當然。嗯，很明顯，因為我們以當地貨幣銷售，幾乎總是因為客戶期望，很明顯，銷售可以被美元所做的削減，這就是它的方式。我會告訴你，在過去的 7 到 8 周里，我在亞太地區和英國以及歐洲大陸都表現出色。而需求環境，我會告訴你，它並沒有把事情推開。獲得您想要的會議並不難。人們對他們將如何以提高效率的方式進行轉型感興趣。

There's more of an interest, I would say, in the demand environment around cost savings and retention than there is about trying to boost revenue. That's not true in every business or every environment, but I would say generally. But that's exactly what we would expect and what we have seen before historically when the world has a recessionary or inflationary pressures.

我想說，圍繞成本節約和保留的需求環境比試圖增加收入更令人感興趣。並非在每個企業或每個環境中都是如此，但我一般會這麼說。但這正是我們所期望的，也是我們從歷史上看到的，當世界面臨衰退或通脹壓力時。

So I felt really good coming off those trips. And in fact, it was so good, I'm going to do another 1 in 2.5 weeks because there's frankly so much demand for friends who want to talk to us. And I think that will translate into business ultimately. That's what this is all about. So I think it's stronger than you would believe reading the headlines is, I guess, the way I would put it.

所以我感覺非常好離開那些旅行。事實上，這太好了，我將在 2.5 週內再做 1 個，因為坦率地說，對想要與我們交談的朋友的需求量很大。我認為這最終會轉化為業務。這就是一切。所以我認為它比你想像的閱讀頭條新聞更強大，我猜，我會這樣說。

Our next question comes from Joe Meares with Truist.

我們的下一個問題來自於 Truist 的 Joe Meares。

I apologize for the background noise. I swear, I'm not in a nightclub right now. I'm just curious, last quarter, you mentioned that in the second half, you were expecting sales cycles to elongate. And I'm just curious if in Q3, they elongated more or less than you were expecting coming into the quarter.

我為背景噪音道歉。我發誓，我現在不在夜總會。我只是好奇，上個季度，您提到下半年，您預計銷售週期會延長。而且我只是好奇在第三季度，它們是否比您在本季度的預期拉長了或多或少。

I think that they were -- I was probably a little more worried than what actually happened. When you're in the early bits, it's not uncommon for things to elongate because people will put -- sometimes they'll put extra levels of controls on spending. It's anecdotal, it's not statistical, but I didn't really see that happening in a meaningful way.

我認為他們是——我可能比實際發生的事情更擔心。當您處於早期階段時，事情會延長並不少見，因為人們會投入 - 有時他們會對支出進行額外的控制。這是軼事，不是統計數據，但我並沒有真正看到這種情況以有意義的方式發生。

Yes, I would say that was probably a smidge better than I might have been afraid of going into the quarter. I think part of what's happening is some of the scrutiny, I think, is actually occurring earlier in the process, so that customers who are not going to be willing to do something are more likely to not engage as opposed to scrutiny coming later in the process, where Ken as CFO or COO tries to stop something from happening. I think that actually bodes well for the level of attention we're getting.

是的，我會說這可能比我害怕進入這個季度要好一點。我認為正在發生的部分原因是一些審查實際上是在流程的早期進行的，因此不願意做某事的客戶更有可能不參與，而不是在後期進行審查過程中，作為首席財務官或首席運營官的肯試圖阻止某些事情的發生。我認為這實際上預示著我們所獲得的關注程度。

I would add one other thing, Joe, and that is in this environment, I think the biggest headwind and the sales cycle is actually related to new logos. It's related to companies that don't know the vendor and actually have to go through a prolonged process to kind of pick the vendor and onboard a new area. So I think in our position of selling and deepening engagement with existing logos, kind of that headwind doesn't really exist as much.

喬，我還要補充一件事，那就是在這種環境下，我認為最大的阻力和銷售週期實際上與新徽標有關。它與不認識供應商的公司有關，實際上必須經歷一個漫長的過程才能選擇供應商並加入一個新領域。因此，我認為在我們銷售和加深與現有徽標的互動的立場上，這種逆風實際上並不存在。

So I do think in tougher economic times, new logos, I mean, I think any company would tell you this, but see that. So that's the one area that I would say we probably -- our focus area is probably driven by some of that intuition that we know that new logos are going to have elongated sales cycles. But with selling to existing clients, you do have at least a couple of those objections are reduced.

所以我確實認為在更艱難的經濟時期，新的標誌，我的意思是，我認為任何公司都會告訴你這個，但是看那個。所以這就是我想說的一個領域——我們的重點領域可能是由我們知道新徽標將延長銷售週期的直覺驅動的。但是通過向現有客戶銷售，您確實減少了至少一些反對意見。

Super helpful color from both of you guys. I appreciate it. Just as a follow-up. I think last quarter, you mentioned you were expecting to get somewhere over $100 million in OpEx savings to offset that revenue headwind you were going to see. I'm just curious how far along you are in that process.

你們倆的超級有用的顏色。我很感激。只是作為一個後續。我認為上個季度，您提到您預計將節省超過 1 億美元的運營支出，以抵消您將看到的收入逆風。我只是好奇你在這個過程中走了多遠。

Yes. So the great news is we've achieved that mitigation as we sit here in October. So now we're looking to see how much more progress we can make through the rest of this year and in '23 to prepare ourselves for our Rule of 40 targets in 2024. So we're really happy. I mean, the team at Pega, I think, made a lot of progress in Q3. And I don't think this is something that -- this isn't like we're done kind of things. We want to run a good business, and we're far away from Rule of 40 right now, and we need to get there. And so that's -- this was kind of that really positive step that we made in 2022.

是的。所以好消息是我們在 10 月份坐在這裡時已經實現了緩解。因此，現在我們希望看到在今年剩餘時間和 23 年我們可以取得多少進展，為 2024 年的 40 條目標做好準備。所以我們真的很高興。我的意思是，我認為 Pega 的團隊在第三季度取得了很大進展。而且我不認為這是 - 這不像我們已經完成了某種事情。我們想經營一家好企業，而我們現在離 40 條規則還很遠，我們需要到達那裡。這就是——這是我們在 2022 年邁出的非常積極的一步。

Our next question comes from Steve Koenig with SMBC Nikko.

我們的下一個問題來自 SMBC Nikko 的 Steve Koenig。

One for Ken, that's kind of a multipart about the numbers, and then a question for Alan. So let's see, Ken, just trying to understand the numbers and what they say about the nature of bookings. Two observations here that maybe you can help explain to me how these true up. So first thing is cloud ACV was up $12 million, which was nice. But cloud bookings were up a whopping $139 million. We're -- sorry, they were $139 million, not up $139 million. So it did -- huge bookings number that didn't translate as much ACV. ACV was still good, but just a huge bookings number. So was that -- were there some -- there's a lot of renewals in there? It was it a big renewal quarter for cloud.

一個給肯，這是一個關於數字的多部分，然後是一個給艾倫的問題。所以讓我們看看，Ken，只是想了解這些數字以及他們對預訂性質的看法。這裡有兩個觀察，也許你可以幫助向我解釋這些是如何正確的。首先，雲 ACV 上漲了 1200 萬美元，這很好。但云預訂量增長了驚人的 1.39 億美元。我們 - 抱歉，他們是 1.39 億美元，而不是 1.39 億美元。確實如此——巨大的預訂量並沒有轉化為多少 ACV。 ACV 仍然很好，但只是一個巨大的預訂量。那是不是 - 有一些 - 那裡有很多續訂？這是雲計算的一個重要更新季度。

And then maybe just the other one on the numbers is maintenance RPO has been down year-on-year, 2 quarters in a row. Is that the beginning of a trend? What should we expect? And is that a function of clients migrating from term to cloud? And then a follow-up for Alan.

然後可能只是數字上的另一個是維護 RPO 連續兩個季度同比下降。這是趨勢的開始嗎？我們應該期待什麼？這是客戶端從術語遷移到雲的功能嗎？然後是艾倫的後續行動。

Sure. So let me start by just throwing one thing out, Steve, which is currency. So don't lose track that that currency hit every number that you just said right there, because we actually do a reasonable amount of Pega Cloud outside -- and maintenance outside the U.S. So the first thing is currency is a factor. Yes, there were renewals in Q3 that were a larger pace than there were in Q2, for sure. That's why Q2 RPO and I mentioned that there's not -- renewals aren't linear, which is why Q2 had a RPO was a little bit slower growth. That was just a little bit of a cycle that we go through.

當然。因此，讓我先拋出一件事，史蒂夫，那就是貨幣。因此，不要忘記該貨幣觸及您剛才所說的每一個數字，因為我們實際上在外部進行了合理數量的 Pega Cloud - 並且在美國以外進行維護。所以第一件事是貨幣是一個因素。是的，第三季度的續訂速度肯定比第二季度要快。這就是為什麼第二季度 RPO 和我提到沒有 - 續訂不是線性的，這就是為什麼第二季度的 RPO 增長有點慢。這只是我們經歷的一個循環。

But Q3 was more of a kind of more of a normal kind of renewal quarter. But also there's a couple of factors. One is currency, the other one is sometimes when we take Pega Cloud, the booking doesn't actually start an ACV in the quarter that it gets booked in. Meaning the effective date could be the next quarter, and you probably remember this, or even could be a couple of quarters out. And so some of that will get into backlog, but not actually get into ACV yet. So almost like pents up ACV, so to speak, right? So that's that factor.

但第三季度更像是一種更正常的更新季度。但也有幾個因素。一個是貨幣，另一個是有時當我們使用 Pega Cloud 時，預訂實際上並沒有在它被預訂的季度開始 ACV。這意味著生效日期可能是下一個季度，你可能還記得這一點，或者甚至可能是幾個季度。所以其中一些會進入積壓，但實際上還沒有進入 ACV。所以幾乎就像壓抑了 ACV，可以這麼說，對吧？所以這就是那個因素。

On maintenance, there are some clients that are over time moving to Pega Cloud, moving to more modern contracts and increasing their relationship with us that were previously on perpetual maintenance arrangements. But also maintenance does have -- probably one of the biggest components of currency is actually in maintenance as well. So that's kind of the color there. Hopefully, that was helpful.

在維護方面，有一些客戶隨著時間的推移遷移到 Pega Cloud，遷移到更現代的合同，並增加了他們與我們之前的永久維護安排的關係。但維護也確實有——可能貨幣的最大組成部分之一實際上也在維護中。這就是那裡的顏色。希望這會有所幫助。

Yes, absolutely. That's super helpful. Great. And my follow-up for Alan. Alan, you made some commentary about the culture and about the employee morale essentially in the post-pandemic times. And that's encouraging to hear, especially amidst cost control at Pega. I'm wondering if you could comment on kind of, I guess, one of the elephants in the room that was distracting in Q2 was the lawsuit. And which is -- I guess that's gone to appeal now is where you guys are in the process. But how does that -- what kinds of questions are employees asking? And how does that kind of play into the kind of motivation and alignment within Pega and questions you may be getting about that from employees?

是的，一點沒錯。這非常有幫助。偉大的。還有我對艾倫的跟進。艾倫，您基本上在大流行後時代就文化和員工士氣發表了一些評論。這令人鼓舞，尤其是在 Pega 的成本控制中。我想知道你是否可以評論一下，我猜，房間裡在第二季度分散注意力的大象之一就是訴訟。這就是——我想現在已經上訴了，這就是你們在這個過程中所處的位置。但這是怎麼做到的——員工會問什麼樣的問題？這種方式如何影響 Pega 內部的動力和一致性，以及您可能從員工那裡得到的問題？

Sure. I would tell you that the staff very broadly, and obviously, we have some long-standing staff as well, has, I believe, a lot of confidence that we write our own software and that we've developed these things. Frankly, they know how Pega is pretty differentiated from lots of the companies out there. So I don't think the staff has given much credibility at all to some of the assertions. And I think the reality is that there are also people who were with us during these time periods. And let's just say, those of us who were there have a very different assessment and understanding than some of what has been claimed.

當然。我會告訴你，工作人員非常廣泛，很明顯，我們也有一些長期工作的員工，我相信，我們對編寫自己的軟件並開發了這些東西很有信心。坦率地說，他們知道 Pega 與那裡的許多公司有何不同。所以我認為工作人員根本沒有對某些斷言給予太多可信度。而且我認為現實情況是，在這些時期也有人與我們在一起。讓我們說，我們這些在場的人的評估和理解與所聲稱的某些內容截然不同。

So I actually think they're holding up really well. It does -- it's not the easiest time to be the employee in a high-tech business in the circumstances. But the other thing is for those who've been around a long time and can talk to those who are perhaps even newer, brand new, the staff understands that as a team, we're pretty scrappy. So some of the anxieties you might have with companies who hadn't weathered various storms and been around a long time, we don't have any of that. And I think that helps a lot. We also try to be extremely transparent with the team. We have Q&A sessions where we'll take any question from a staff member that we call them Ask Anything. And we get asked a lot of interesting questions.

所以我實際上認為他們的表現非常好。確實如此——在這種情況下，成為高科技企業的員工並不是最容易的時候。但另一件事是對於那些已經工作了很長時間並且可以與可能更新、全新的人交談的人來說，工作人員明白，作為一個團隊，我們非常鬥志昂揚。因此，對於那些沒有經受住各種風暴並且已經存在很長時間的公司，您可能會有一些焦慮，我們沒有這些。我認為這很有幫助。我們還嘗試對團隊保持高度透明。我們有問答環節，我們將回答工作人員提出的任何問題，我們稱之為“問任何問題”。我們被問到很多有趣的問題。

I think between good communication and I think a heritage, we've been able to keep the company together and keep the company solid. And that's in the face of all of the -- obviously, this has been an extremely difficult year having been preceded by a couple of pretty extremely difficult but different difficult years. I think that great companies are resilient companies and have real grit. And I do think that grit is something we don't like. So I'm...

我認為在良好的溝通和我認為的傳統之間，我們能夠使公司保持團結並保持公司穩固。面對所有這些 - 顯然，這是極其困難的一年，此前有幾個非常困難但不同的困難年份。我認為偉大的公司都是有韌性的公司，並且有真正的勇氣。我確實認為勇氣是我們不喜歡的東西。所以我...

I'm going to just add one other perspective on that, Steve. The thing that really engages our employees and gets them fired up is their interactions and the solutions that we do with our clients. And our client engagement is at really all-time highs. And I think that shows just by the breadth of our performance in Q3. So I think that's really another factor that is very important to us because we're -- all of us at Pega are here to help our clients. That's why we're in business. So I think that's a really important aspect. And we're so deeply engaged with our clients. You really can see the value that we're providing because of how tightly connected we are. So that's also a very positive momentum at times that -- kind of weird times like what you mentioned.

史蒂夫，我將對此添加另一種觀點。真正讓我們的員工參與並讓他們興奮的事情是他們的互動以及我們與客戶一起做的解決方案。我們的客戶參與度確實處於歷史最高水平。我認為這僅從我們在第三季度的表現的廣度就可以看出。所以我認為這對我們來說確實是另一個非常重要的因素，因為我們——Pega 的所有人都在這裡幫助我們的客戶。這就是我們開展業務的原因。所以我認為這是一個非常重要的方面。我們與客戶的互動如此深入。由於我們之間的緊密聯繫，您確實可以看到我們提供的價值。所以這有時也是一個非常積極的勢頭——就像你提到的那種奇怪的時期。

Our next question comes from Vinod Srinivasaraghavan with Barclays.

我們的下一個問題來自巴克萊銀行的 Vinod Srinivasaraghavan。

I know you had said you weren't updating your guidance. But when you did formulate guidance in 2Q when you were reassessing, can you just talk a little bit about your overall guidance philosophy? Did you build a buffer into guidance? Or are you one of those companies who doesn't really do that and should we just really expect you to hit what you spelled out there?

我知道你說過你沒有更新你的指導。但是當您在重新評估時確實在 2Q 中製定了指導時，您能否談談您的整體指導理念？您是否在指導中建立了緩衝？或者你是那些沒有真正做到這一點的公司之一，我們是否應該真的期望你能做到你所說的？

Yes. So I think over the last 3 to 4 years, Vinod, was very hard for us to really peg and -- specifically a revenue and EPS number and because of the shift to Pega Cloud and the variability that was happening in that shift, like the percentage. So that was kind of a much bigger factor over the last few years. I would say in 2022 and going forward, that's less impactful within a quarter or a year compared to what it was, say, in 2018, when a 10% shift would impact us immediately by $40 million or $50 million against a number that was much smaller in terms of Pega's revenue.

是的。所以我認為在過去的 3 到 4 年裡，Vinod 對我們來說非常難以真正掛鉤——特別是收入和每股收益數字，並且由於轉向 Pega Cloud 以及在這種轉變中發生的可變性，比如百分比。因此，在過去幾年中，這是一個更大的因素。我想說的是，在 2022 年及以後，與 2018 年相比，在一個季度或一年內的影響較小，當時 10% 的轉變將立即對我們產生 4000 萬美元或 5000 萬美元的影響，而這個數字要大得多就 Pega 的收入而言，規模較小。

So I would say we have a little bit more certainty there, but there is some variability there with the Pega Cloud mix. There's also a little bit of variability with the timing of renewals and bookings that may actually have upfront revenue recognition like client cloud, as we call it, term licenses. So there are some things that we do our best to try to peg it, but they -- it doesn't always shake out the way. I would say revenue is we try to do kind of a best effort to get to what we thought the number would land at. We did not build a ton of -- we weren't building a cushion in kind of a beat and raise kind of model because we're not guiding each quarter. But we didn't created a stretched number either.

所以我想說我們在那裡有更多的確定性，但 Pega Cloud 組合存在一些可變性。續訂和預訂的時間也有一點點可變性，這可能實際上具有前期收入確認，如我們所說的客戶端雲，即期限許可。因此，有些事情我們會盡最大努力嘗試與它掛鉤，但它們 - 它並不總是能擺脫困境。我會說收入是我們嘗試盡最大努力達到我們認為的數字會達到的水平。我們沒有建立大量的——我們沒有建立一種節拍和提高模式的緩衝，因為我們沒有指導每個季度。但我們也沒有創建一個延伸的數字。

So I think we tried to come up with what we thought was a reasonably accurate number. And then we factored in the cost savings that we were targeting and we felt like was a reasonable estimate of what we could get to, which we feel we made a lot of progress there. So I would say we really tried to be as accurate as we could in where we thought we were going to land.

所以我認為我們試圖提出一個我們認為相當準確的數字。然後我們考慮到我們的目標是節省成本，我們覺得這是對我們可以達到的目標的合理估計，我們覺得我們在這方面取得了很大進展。所以我想說，我們真的試圖在我們認為我們將要降落的地方盡可能準確。

That's helpful. And just one more for me. It was good to see the Rule of 40 expectation reiterated. But I wanted to kind of talk about the kind of the weighting between growth and margins there given that some of the demand headwinds seem to be improving and you have those sales efficiency improvements. Do you have any changes to the weighting of the factors? And ideally, like what would you like to see?

這很有幫助。對我來說只有一個。很高興看到 40 規則的期望得到重申。但我想談談增長和利潤率之間的權重，因為一些需求逆風似乎正在改善，而且銷售效率有所提高。你對因素的權重有什麼改變嗎？理想情況下，你想看什麼？

So I'll give you my perspective, and then Alan can weigh in if he has additional thoughts. So the beauty of the way that you build a Rule of 40 model is that if your growth -- if you set your growth expectations at a reasonable target and then get your margin to match, if you outperform on your growth, it actually helps you twice, right, because your growth is better and your bottom line profitability is better. So our approach has been not to shoot for a growth number that is unachievable when we think of Rule of 40, but to make sure that we're building a margin profile that gives us a Rule of 40 probability based on a reasonable growth target.

所以我會給你我的觀點，然後如果艾倫有其他想法，他可以參與進來。因此，您構建 40 規則模型的方式的美妙之處在於，如果您的增長——如果您將增長預期設定在一個合理的目標，然後讓您的利潤與之相匹配，如果您的增長表現出色，它實際上會幫助您兩次，對，因為你的增長更好，你的底線盈利能力更好。因此，我們的方法不是針對當我們考慮 40 規則時無法實現的增長數字，而是要確保我們正在建立一個利潤率配置文件，根據合理的增長目標為我們提供 40 規則概率。

That said, of course, we want to grow faster, right? We want to grow as fast as we can. What we're not willing to do though is throw cost at a growth number. We want to be very thoughtful and very profitable in how we think about that growth. And I think that's kind of a little bit of a different approach than what we had in the last few years where we were making some bets in areas that were a little bit longer payoff periods. And that's why our strategy changed this year. So that's kind of my perspective. Alan, anything -- any thoughts to add there?

也就是說，當然，我們希望增長更快，對吧？我們希望盡可能快地成長。我們不願意做的是將成本投入到增長的數字中。我們希望在如何看待這種增長時非常周到並且非常有利可圖。而且我認為這與過去幾年我們在回報期稍長的領域下注的方法有點不同。這就是我們今年改變戰略的原因。這就是我的觀點。艾倫，有什麼要補充的嗎？

I think that's on target. We're certainly investing in growth. We want to be a company that grows well. We've, in the past, said that we could grow 20% ACV a year and that's a lot better than 16% to be blunt. But we're not going to do it with the style of trying to hit 35% growth and spending as if that could be financed in any way. It's got to be balanced. And I think that message has gotten to the company. And I think the staff is buying into it.

我認為這是目標。我們當然在投資增長。我們希望成為一家發展良好的公司。我們過去曾說過，我們可以每年增長 20% 的 ACV，這比直言不諱的 16% 要好得多。但我們不會以試圖達到 35% 的增長和支出的方式來做到這一點，就好像這可以通過任何方式融資一樣。它必須是平衡的。我認為這個信息已經傳到了公司。我認為工作人員正在接受它。

Our next question comes from Joey Marincek with JMP Securities.

我們的下一個問題來自 JMP 證券公司的 Joey Marincek。

First, Alan, I was hoping you could talk more about Pega 8.8. Which capabilities are you most excited about? And then maybe at a higher level, how do you sort of think about your overall development strategy?

首先，艾倫，我希望你能多談談 Pega 8.8。您對哪些能力最感興趣？然後也許在更高的層面上，您如何看待您的整體發展戰略？

Yes. I think -- so there's a lot in 8.8 that I think is exciting. The additions to the app factory capabilities, which we're already seeing some excellent adoption of where it makes it easy for organizations to put in automation, but do it on a platform that has enterprise scale capabilities as opposed to little stand-alone things, which -- but candidly, I think some of the other players in the low-code space are more likely to be kind of the reincarnation of Lotus Notes, if you know what that was many years ago, and being able to tell organizations that we can give you a structured way, but also a way that's fast and that builds on things that may be familiar to you. I think those are some terrific additions to it.

是的。我認為——所以 8.8 中有很多我認為令人興奮的東西。應用程序工廠功能的新增功能，我們已經看到一些出色的應用，它使組織可以輕鬆實現自動化，但在具有企業規模功能而不是小的獨立事物的平台上進行，其中——但坦率地說，我認為低代碼領域的其他一些參與者更有可能是 Lotus Notes 的轉世，如果你知道那是多年前的事，並且能夠告訴組織我們可以為您提供一種結構化的方式，但也可以提供一種快速且基於您可能熟悉的事物的方式。我認為這些是對它的一些了不起的補充。

The whole area of what we call processed AI, which is bringing artificial intelligence into the process so that it can predict which types of things are going to miss their service level, make it possible for you to pay greater attention to them and prioritize those sorts of things, I think, are also key. We've added some really nice capabilities to the whole user experience. And with the work on what we call the digital experience API, we've made it so that customers can use the Pega experience or they can use candidly their own but do it in a way that's super flexible and quite a bit different than what alternatives are in the marketplace.

我們稱之為已處理 AI 的整個領域，將人工智能帶入流程中，以便它可以預測哪些類型的事物會錯過它們的服務水平，讓您可以更加關注它們並優先考慮這些類型的事情，我認為，也是關鍵。我們為整個用戶體驗添加了一些非常好的功能。通過我們所謂的數字體驗 API 的工作，我們已經做到了，這樣客戶就可以使用 Pega 體驗，或者他們可以坦率地使用自己的體驗，但以一種超級靈活且與其他替代方案完全不同的方式來使用在市場上。

So there are things that I think are about functional in terms of helping people to build apps and more technical in terms of being able to plug into other systems, which is obviously something that's super key for us.

因此，我認為有些事情在幫助人們構建應用程序方面與功能有關，在能夠插入其他系統方面更具技術性，這顯然對我們來說是超級關鍵。

And then can you just give us a quick update on the Everflow acquisition? What is sort of the feedback and demand been like from customers on those new process line capabilities?

然後你能給我們簡要介紹一下收購 Everflow 的情況嗎？客戶對這些新工藝線功能的反饋和需求如何？

We're demonstrating them. There's a lot of interest. I think that process mining is one of those interesting things because I think the purpose of mining processes is to be able to automate them and have them operate better. So that's a perfect example of the sort of acquisition we like to do, where it really fits very strategically with what our product line is, with what we actually do with workflow automation, with robotics, and the other pieces. So yes, there's interest. I saw a demo just yesterday with the client who seemed quite impressed. And I think it's going to turn out really well.

我們正在展示它們。有很多興趣。我認為過程挖掘是那些有趣的事情之一，因為我認為挖掘過程的目的是能夠自動化它們並讓它們更好地運行。所以這是我們喜歡做的那種收購的一個完美例子，它在戰略上非常適合我們的產品線，我們實際上在工作流自動化、機器人技術和其他方面所做的事情。所以是的，有興趣。昨天我看到了一個客戶的演示，他似乎印象深刻。而且我認為結果會非常好。

And our next question comes from Fred Havemeyer with Macquarie.

我們的下一個問題來自麥格理的 Fred Havemeyer。

I wanted to check on a different part of the lawsuit. Without discussing the lawsuit specifically, I wanted to understand, has that come up in any -- or rather in your conversations with customers generally? And if so, is it shaping any of your customer conversations at all?

我想檢查訴訟的不同部分。在沒有具體討論訴訟的情況下，我想了解，這是否出現在任何 - 或者更確切地說是在您與客戶的一般對話中？如果是這樣，它是否會影響您的任何客戶對話？

So I think -- and Ken can comment on this as well. Of course, it comes up with customers. In fact, if they don't bring it up, we'll bring it up because you don't want something to be hanging out there. I would say that our conversation with our customers has shown a lot of respect for the longevity and independence of Pega as an entity. And I would say that our customers have been tremendous. I think it's just been terrific in terms of them listening and reading what we put on our website because we've put some stuff up that I think helps provide some color.

所以我認為——Ken 也可以對此發表評論。當然，它與客戶一起出現。事實上，如果他們不提出來，我們會提出來，因為您不希望有什麼東西掛在那裡。我想說的是，我們與客戶的對話表明了對 Pega 作為一個實體的長壽和獨立性的尊重。我會說我們的客戶非常多。我認為就他們聆聽和閱讀我們在網站上發布的內容而言，這非常棒，因為我們已經發布了一些我認為有助於提供一些色彩的東西。

And we're not going to get into the things that will become more visible as our appeal goes forward because the appeal process is just beginning, and these things go agonizingly slowly. But I've been really pleased with the way customers have responded in our ability to not have the conversations get unduly shaped. I think the conversations need to be about what they need and what we can do for them. And I would tell you that they have stayed that way. Ken, do you have any comment or...

我們不會涉及隨著我們的上訴進展而變得更加明顯的事情，因為上訴程序才剛剛開始，而且這些事情進展得非常緩慢。但我對客戶的反應方式非常滿意，因為我們能夠避免過度塑造對話。我認為對話需要圍繞他們需要什麼以及我們能為他們做些什麼。我會告訴你，他們一直保持這種狀態。肯，你有什麼意見或...

I mean, I would -- yes, I mean, I think everything you said makes sense. I think, Fred, the reality is when you have an announcement like that, a press release that's a newsworthy item, of course, clients need to understand, need to understand what happened and as much as we can tell them. And we've been very clear to point out, we have a spot on our website that actually spells out exactly the facts, not opinions, but the facts around what this is and what it isn't. And I think that our clients have universally been very pleased with our engagement on that.

我的意思是，我會- 是的，我的意思是，我認為你所說的一切都是有道理的。我認為，弗雷德，現實情況是當你發布這樣的公告時，一份具有新聞價值的新聞稿，當然，客戶需要了解，需要了解發生了什麼，並且我們可以告訴他們盡可能多的信息。我們已經非常清楚地指出，我們網站上有一個位置實際上準確地說明了事實，而不是意見，而是關於這是什麼和不是什麼的事實。我認為我們的客戶普遍對我們在這方面的參與感到非常滿意。

And as evidenced by the fact that we had the most $1 million deals in Q3 with our clients that we've had. So I think, certainly, I wouldn't say that, that chapter is closed because the appeal is in process. But I do believe our clients are very comfortable with the engagement that we've had with them from my experience.

正如我們在第三季度與客戶達成的最多 100 萬美元交易的事實所證明的那樣。所以我認為，當然，我不會這麼說，那一章已經結束，因為上訴正在進行中。但我確實相信，根據我的經驗，我們的客戶對我們與他們的互動感到非常滿意。

As one of them said, they get sued all the time. So it's not a foreign concept. So not that anyone enjoys it, but it's not at all foreign to any big bank or insurance company, certainly.

正如其中一位所說，他們一直被起訴。所以這不是一個外國概念。所以並不是說任何人都喜歡它，但它對任何一家大銀行或保險公司來說都不陌生，當然。

This concludes today's question-and-answer session. I will turn the conference back to Alan Trefler for any additional or closing remarks.

今天的問答環節到此結束。我會將會議轉回給 Alan Trefler 以獲取任何補充或閉幕詞。

Right. Well, thank you, everyone, for dialing in and listening. I think the Pega team has been working very, very hard. I think we're invigorated by the new software we've put out, we're invigorated by the ability to engage more directly with clients as the pandemic period has ended. And there is a lot of enthusiasm for becoming a better run, more efficient company and bringing those benefits candidly to our stakeholders. And I like the feel of it and I like the energy, and we're going to go back to work for you. Talk to you soon, everyone. Thanks.

正確的。好吧，謝謝大家撥入和聆聽。我認為 Pega 團隊一直在非常非常努力地工作。我認為我們對我們推出的新軟件感到振奮，隨著大流行期的結束，我們對能夠更直接地與客戶互動而感到振奮。對於成為一家運營更好、效率更高的公司並將這些好處坦誠地帶給我們的利益相關者，人們充滿熱情。我喜歡它的感覺，我喜歡它的能量，我們會回去為你工作。大家快點聊吧。謝謝。

This concludes today's call. Thank you for your participation, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。