XBRL Financials

COVER PAGE - shares	9 Months Ended
COVER PAGE - shares	Sep. 30, 2019	Oct. 31, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	1-11859
Entity Registrant Name	PEGASYSTEMS INC.
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	04-2787865
Entity Address, Address Line One	One Rogers Street
Entity Address, City or Town	Cambridge
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02142-1209
City Area Code	617
Local Phone Number	374-9600
Title of 12(b) Security	Common Stock, $.01 par value per share
Trading Symbol	PEGA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		79,332,662
Amendment Flag	false
Entity Central Index Key	0001013857
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 92,104	$ 114,422
Marketable securities	20,465	93,001
Total cash, cash equivalents, and marketable securities	112,569	207,423
Accounts receivable	123,268	180,872
Unbilled receivables	172,090	172,656
Other current assets	58,204	49,684
Total current assets	466,131	610,635
Long-term unbilled receivables	123,962	151,237
Goodwill	78,862	72,858
Other long-term assets	248,069	147,823
Total assets	917,024	982,553
Current liabilities:
Accounts payable	15,435	16,487
Accrued expenses	41,520	45,506
Accrued compensation and related expenses	88,349	84,671
Deferred revenue	159,849	185,145
Other current liabilities	15,742	0
Total current liabilities	320,895	331,809
Operating lease liabilities	56,904	0
Other long-term liabilities	10,393	29,213
Total liabilities	388,192	361,022
Stockholders’ equity:
Preferred stock, 1,000 shares authorized; none issued	0	0
Common stock, 200,000 shares authorized; 79,324 and 78,526 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	793	785
Additional paid-in capital	129,559	123,205
Retained earnings	412,389	510,863
Accumulated other comprehensive (loss)	(13,909)	(13,322)
Total stockholders’ equity	528,832	621,531
Total liabilities and stockholders’ equity	$ 917,024	$ 982,553

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	79,324,000	78,526,000
Common stock, shares outstanding (in shares)	79,324,000	78,526,000

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue
Total revenue	$ 216,703	$ 203,263	$ 634,841	$ 635,224
Total revenue	216,703	203,263	634,841	635,224
Cost of revenue
Total cost of revenue	80,898	74,423	232,415	223,854
Gross profit	135,805	128,840	402,426	411,370
Operating expenses
Selling and marketing	115,237	87,490	341,064	269,845
Research and development	52,492	46,504	152,802	135,261
General and administrative	14,843	12,104	41,693	38,749
Total operating expenses	182,572	146,098	535,559	443,855
(Loss) from operations	(46,767)	(17,258)	(133,133)	(32,485)
Foreign currency transaction (loss) gain	(1,970)	399	(3,577)	558
Interest income, net	556	683	1,823	2,076
Other income, net	323	0	378	363
(Loss) before (benefit from) income taxes	(47,858)	(16,176)	(134,509)	(29,488)
(Benefit from) income taxes	(17,520)	(8,589)	(43,158)	(23,692)
Net (loss)	$ (30,338)	$ (7,587)	$ (91,351)	$ (5,796)
(Loss) per share
Basic (in dollars per share)	$ (0.38)	$ (0.10)	$ (1.16)	$ (0.07)
Diluted (in dollars per share)	$ (0.38)	$ (0.10)	$ (1.16)	$ (0.07)
Weighted-average number of common shares outstanding
Basic (in shares)	79,200	78,700	78,928	78,525
Diluted (in shares)	79,200	78,700	78,928	78,525
Software license
Revenue
Total revenue	$ 58,005	$ 52,342	$ 165,543	$ 184,899
Cost of revenue
Total cost of revenue	676	1,255	2,982	3,772
Maintenance
Revenue
Total revenue	70,371	66,017	207,406	196,448
Cost of revenue
Total cost of revenue	6,688	6,079	19,315	18,035
Services
Revenue
Total revenue	88,327	84,904	261,892	253,877
Cost of revenue
Total cost of revenue	$ 73,534	$ 67,089	$ 210,118	$ 202,047

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net (loss)	$ (30,338)	$ (7,587)	$ (91,351)	$ (5,796)
Other comprehensive (loss), net of tax
Unrealized (loss) gain on available-for-sale marketable securities	(216)	(162)	396	(277)
Foreign currency translation adjustments	(2,201)	(1,934)	(983)	(4,898)
Total other comprehensive (loss), net of tax	(2,417)	(2,096)	(587)	(5,175)
Comprehensive (loss)	$ (32,755)	$ (9,683)	$ (91,938)	$ (10,971)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income
Balance, beginning of period (in shares) at Dec. 31, 2017		78,081,000
Balance, beginning of period at Dec. 31, 2017	$ 655,870	$ 781	$ 152,097	$ 509,697	$ (6,705)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock (in shares)		(101,000)
Repurchase of common stock	(5,689)	$ (1)	(5,688)
Issuance of common stock for share-based compensation plans (in shares)		566,000
Issuance of common stock for share-based compensation plans	(15,551)	$ 5	(15,556)
Stock-based compensation	15,109		15,109
Cash dividends declared ($0.12 per share)	(2,355)			(2,355)
Other comprehensive income (loss)	4,262				4,262
Net income (loss)	12,200			12,200
Balance, end of period (in shares) at Mar. 31, 2018		78,546,000
Balance, end of period at Mar. 31, 2018	663,846	$ 785	145,962	519,542	(2,443)
Balance, beginning of period (in shares) at Dec. 31, 2017		78,081,000
Balance, beginning of period at Dec. 31, 2017	655,870	$ 781	152,097	509,697	(6,705)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	(5,175)
Net income (loss)	(5,796)
Balance, end of period (in shares) at Sep. 30, 2018		78,816,000
Balance, end of period at Sep. 30, 2018	620,855	$ 788	135,132	496,815	(11,880)
Balance, beginning of period (in shares) at Mar. 31, 2018		78,546,000
Balance, beginning of period at Mar. 31, 2018	663,846	$ 785	145,962	519,542	(2,443)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock (in shares)		(171,000)
Repurchase of common stock	(10,181)	$ (2)	(10,179)
Issuance of common stock for share-based compensation plans (in shares)		358,000
Issuance of common stock for share-based compensation plans	(11,391)	$ 4	(11,395)
Issuance of common stock under Employee Stock Purchase Plan (in shares)		15,000
Issuance of common stock under Employee Stock Purchase Plan	849		849
Stock-based compensation	16,163		16,163
Cash dividends declared ($0.12 per share)	(2,364)			(2,364)
Other comprehensive income (loss)	(7,341)				(7,341)
Net income (loss)	(10,409)			(10,409)
Balance, end of period (in shares) at Jun. 30, 2018		78,748,000
Balance, end of period at Jun. 30, 2018	639,172	$ 787	141,400	506,769	(9,784)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock (in shares)		(242,000)
Repurchase of common stock	(14,279)	$ (2)	(14,277)
Issuance of common stock for share-based compensation plans (in shares)		310,000
Issuance of common stock for share-based compensation plans	(8,396)	$ 3	(8,399)
Stock-based compensation	16,408		16,408
Cash dividends declared ($0.12 per share)	(2,367)			(2,367)
Other comprehensive income (loss)	(2,096)				(2,096)
Net income (loss)	(7,587)			(7,587)
Balance, end of period (in shares) at Sep. 30, 2018		78,816,000
Balance, end of period at Sep. 30, 2018	$ 620,855	$ 788	135,132	496,815	(11,880)
Balance, beginning of period (in shares) at Dec. 31, 2018	78,526,000	78,526,000
Balance, beginning of period at Dec. 31, 2018	$ 621,531	$ 785	123,205	510,863	(13,322)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock (in shares)		(144,000)
Repurchase of common stock	(7,587)	$ (1)	(7,586)
Issuance of common stock for share-based compensation plans (in shares)		514,000
Issuance of common stock for share-based compensation plans	(14,838)	$ 5	(14,843)
Stock-based compensation	18,406		18,406
Cash dividends declared ($0.12 per share)	(2,367)			(2,367)
Other comprehensive income (loss)	2,001				2,001
Net income (loss)	(28,717)			(28,717)
Balance, end of period (in shares) at Mar. 31, 2019		78,896,000
Balance, end of period at Mar. 31, 2019	$ 588,429	$ 789	119,182	479,779	(11,321)
Balance, beginning of period (in shares) at Dec. 31, 2018	78,526,000	78,526,000
Balance, beginning of period at Dec. 31, 2018	$ 621,531	$ 785	123,205	510,863	(13,322)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	(587)
Net income (loss)	$ (91,351)
Balance, end of period (in shares) at Sep. 30, 2019	79,324,000	79,324,000
Balance, end of period at Sep. 30, 2019	$ 528,832	$ 793	129,559	412,389	(13,909)
Balance, beginning of period (in shares) at Mar. 31, 2019		78,896,000
Balance, beginning of period at Mar. 31, 2019	588,429	$ 789	119,182	479,779	(11,321)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock (in shares)		(88,000)
Repurchase of common stock	(6,302)	$ (1)	(6,301)
Issuance of common stock for share-based compensation plans (in shares)		320,000
Issuance of common stock for share-based compensation plans	(11,214)	$ 3	(11,217)
Issuance of common stock under Employee Stock Purchase Plan (in shares)		16,000
Issuance of common stock under Employee Stock Purchase Plan	1,103		1,103
Stock-based compensation	20,113		20,113
Cash dividends declared ($0.12 per share)	(2,375)			(2,375)
Other comprehensive income (loss)	(171)				(171)
Net income (loss)	(32,296)			(32,296)
Balance, end of period (in shares) at Jun. 30, 2019		79,144,000
Balance, end of period at Jun. 30, 2019	557,287	$ 791	122,880	445,108	(11,492)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock (in shares)		(88,000)
Repurchase of common stock	(6,397)	$ (1)	(6,396)
Issuance of common stock for share-based compensation plans (in shares)		268,000
Issuance of common stock for share-based compensation plans	(8,801)	$ 3	(8,804)
Stock-based compensation	21,879		21,879
Cash dividends declared ($0.12 per share)	(2,381)			(2,381)
Other comprehensive income (loss)	(2,417)				(2,417)
Net income (loss)	$ (30,338)			(30,338)
Balance, end of period (in shares) at Sep. 30, 2019	79,324,000	79,324,000
Balance, end of period at Sep. 30, 2019	$ 528,832	$ 793	$ 129,559	$ 412,389	$ (13,909)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]
Dividend declared (in dollars per share)	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.12

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities
Net (loss)	$ (91,351)	$ (5,796)
Adjustments to reconcile net (loss) to cash (used in) provided by operating activities
Stock-based compensation	60,242	47,573
Amortization and depreciation	50,622	31,742
Deferred income taxes	(40,531)	(1,388)
Foreign currency transaction loss (gain)	3,577	(558)
Other non-cash	(363)	(1,377)
Change in operating assets and liabilities, net	4,342	(3,108)
Cash (used in) provided by operating activities	(13,462)	67,088
Investing activities
Purchases of investments	(11,182)	(68,177)
Proceeds from maturities and called investments	13,066	26,456
Sales of investments	68,937	0
Payments for acquisitions, net of cash acquired	(10,934)	0
Investment in property and equipment	(6,439)	(7,874)
Cash provided by (used in) investing activities	53,448	(49,595)
Financing activities
Dividend payments to shareholders	(7,105)	(7,067)
Common stock repurchases	(54,836)	(64,597)
Cash (used in) financing activities	(61,941)	(71,664)
Effect of exchange rate changes on cash and cash equivalents	(363)	(1,913)
Net (decrease) in cash and cash equivalents	(22,318)	(56,084)
Cash and cash equivalents, beginning of period	114,422	162,279
Cash and cash equivalents, end of period	$ 92,104	$ 106,195

BASIS OF PRESENTATION	9 Months Ended
BASIS OF PRESENTATION	Sep. 30, 2019
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION Pegasystems Inc. (together with its subsidiaries, “the Company”) has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all the information required by accounting principles generally accepted in the United States of America (“U.S.”) for complete financial statements and should be read in conjunction with the Company’s audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2018. In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited financial statements, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2019.

NEW ACCOUNTING PRONOUNCEMENTS	9 Months Ended
NEW ACCOUNTING PRONOUNCEMENTS	Sep. 30, 2019
Accounting Policies [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS	NEW ACCOUNTING PRONOUNCEMENTS Leases On January 1, 2019, the Company adopted Accounting Standards Codification 842 “Leases” (“ASC 842”) using the modified retrospective method, reflecting any cumulative effect as an adjustment to equity. Results for reporting periods beginning on or after January 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historical accounting under ASC 840 “Leases”. The Company elected the permitted practical expedients to not reassess the following related to leases that commenced before the effective date of ASC 842: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. Upon adoption, the Company recorded right of use assets of $41.8 million and lease liabilities of $54.2 million. The difference between the value of the right of use assets and lease liabilities is due to the reclassification of existing deferred rent, prepaid rent, and unamortized lease incentives as of January 1, 2019. See Note 9. “Leases” for additional information. Financial instruments In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires measurement and recognition of expected credit losses for financial assets measured at amortized cost, including accounts receivable, upon initial recognition of that financial asset using a forward-looking expected loss model, rather than an incurred loss model. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses when the fair value is below the amortized cost of the asset, removing the concept of “other-than-temporary” impairments. The effective date for the Company will be January 1, 2020, with early adoption permitted. The Company does not expect the adoption of this standard will have a material effect on its financial position or results of operations.

MARKETABLE SECURITIES

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

MARKETABLE SECURITIES



	September 30, 2019
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Municipal bonds	$	10,680	$	69	$	—	$	10,749
Corporate bonds	9,611		105		—		9,716
	$	20,291	$	174	$	—	$	20,465



	December 31, 2018
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Municipal bonds	$	44,802	$	13	$	(110	)	$	44,705
Corporate bonds	48,499		23		(226		)	48,296
	$	93,301	$	36	$	(336	)	$	93,001

As of September 30, 2019, maturities of marketable securities ranged from May 2020 to August 2022, with a weighted-average remaining maturity of approximately 1.5 years.

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE

Receivables



(in thousands)	September 30, 2019		December 31, 2018
Accounts receivable	$	123,268	$	180,872
Unbilled receivables	172,090		172,656
Long-term unbilled receivables	123,962		151,237
	$	419,320	$	504,765

Unbilled receivables are client committed amounts for which revenue recognition precedes billing, and billing is solely subject to the passage of time.

Unbilled receivables are expected to be billed in the future as follows:



(Dollars in thousands)	September 30, 2019
1 year or less	$	172,090	59	%
1-2 years	84,045		28	%
2-5 years	39,917		13	%
	$	296,052	100	%

Contract assets and deferred revenue



(in thousands)	September 30, 2019		December 31, 2018
Contract assets ⁽¹⁾	$	5,046	$	3,711
Long-term contract assets ⁽²⁾	2,381		2,543
	$	7,427	$	6,254

⁽¹⁾Included in other current assets.⁽²⁾ Included in other long-term assets.



(in thousands)	September 30, 2019		December 31, 2018
Deferred revenue	$	159,849	$	185,145
Long-term deferred revenue ⁽¹⁾	4,029		5,344
	$	163,878	$	190,489

⁽¹⁾Included in other long-term liabilities.

Contract assets are client committed amounts for which revenue recognized exceeds the amount billed to the client and the right to payment is subject to conditions other than the passage of time, such as the completion of a related performance obligation. Deferred revenue consists of billings and payments received in advance of revenue recognition. Contract assets and deferred revenue are netted at the contract level for each reporting period.

The change in deferred revenue in the nine months ended September 30, 2019 was primarily due to revenue recognized during the period that was included in deferred revenue at December 31, 2018, partially offset by new billings in advance of revenue recognition.

DEFERRED CONTRACT COSTS

9 Months Ended

Sep. 30, 2019

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

DEFERRED CONTRACT COSTS

The Company recognizes an asset for the incremental costs of obtaining a client contract, which relate to sales commissions. The Company expects to benefit from those costs for more than one year, as the Company generally only pays sales commissions on the initial contract and not any subsequent contract renewals. As a result, there are no commensurate commissions paid on contract renewals. Deferred costs are amortized on a straight-line basis over the benefit period, which is on average 5 years.



(in thousands)	September 30, 2019		December 31, 2018
Deferred contract costs ⁽¹⁾	$	67,182	$	64,367

⁽¹⁾ Included in other long-term assets.



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Amortization of deferred contract costs ⁽¹⁾	$	8,193	$	4,208	$	22,372	$	11,806

⁽¹⁾Included in selling and marketing expenses.

GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The change in the carrying amount of goodwill was:



(in thousands)	Nine Months Ended September 30, 2019
Balance as of January 1,	$	72,858
Acquisition ⁽¹⁾	6,179
Currency translation adjustments	(175		)
Balance as of September 30,	$	78,862

⁽¹⁾ In May 2019, the Company acquired In the Chat Communications Inc., a privately-held software provider of digital customer service software, for $10.9 million, net of cash acquired. The Company also expects to issue up to approximately 15 thousand shares in retention-based bonus payments to a key employee upon the achievement of specified retention milestones. The principal assets and liabilities acquired as part of the business combination were additional goodwill and technology intangible assets of $6.2 million and $5.1 million.

Intangibles

Intangible assets are recorded at cost and amortized using the straight-line method over their estimated useful lives as follows:



		September 30, 2019
(in thousands)	Useful Lives	Cost		Accumulated Amortization			Net Book Value ⁽¹⁾
Client-related	4-10 years	$	63,089	$	(53,960	)	$	9,129
Technology	2-10 years	64,843		(53,252		)	11,591
Other	1 - 5 years	5,361		(5,361		)	—
		$	133,293	$	(112,573	)	$	20,720

⁽¹⁾Included in other long-term assets.



		December 31, 2018
(in thousands)	Useful Lives	Cost		Accumulated Amortization			Net Book Value ⁽¹⁾
Client-related	4-10 years	$	63,115	$	(51,224	)	$	11,891
Technology	2-10 years	59,742		(50,398		)	9,344
Other	1 - 5 years	5,361		(5,361		)	—
		$	128,218	$	(106,983	)	$	21,235

⁽¹⁾Included in other long-term assets.

Amortization of intangible assets was:



(in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Cost of revenue	$	647	$	1,232	$	2,854	$	3,695
Selling and marketing	370		1,603		2,754		4,813
	$	1,017	$	2,835	$	5,608	$	8,508

ACCRUED EXPENSES

9 Months Ended

Sep. 30, 2019

Payables and Accruals [Abstract]

ACCRUED EXPENSES



(in thousands)	September 30, 2019		December 31, 2018
Outside professional services expenses	$	8,568	$	10,367
Income and other taxes	5,418		10,387
Marketing and sales program expenses	5,969		5,860
Dividends payable	2,381		2,363
Employee-related expenses	4,785		3,536
Cloud hosting expenses	10,158		4,604
Other	4,241		8,389
	$	41,520	$	45,506

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

The Company records its cash equivalents, marketable securities, and investments in privately-held companies at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants based on assumptions that market participants would use in pricing an asset or liability.

As a basis for classifying the fair value measurements, a three-tier fair value hierarchy, which classifies the fair value measurements based on the inputs used in measuring fair value, was established as follows:


•	Level 1 - observable inputs such as quoted prices in active markets for identical assets or liabilities;


•	Level 2 - significant other inputs that are observable either directly or indirectly; and


•	Level 3 - significant unobservable inputs on which there is little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.

The Company’s cash equivalents are composed of money market funds and time deposits, which are classified within Level 1 and Level 2, respectively, in the fair value hierarchy. The Company’s marketable securities, which are classified within Level 2 of the fair value hierarchy, are valued based on a market approach using quoted prices, when available, or matrix pricing compiled by third-party pricing vendors, using observable market inputs such as interest rates, yield curves, and credit risk. The Company’s investments in privately-held companies are classified within Level 3 of the fair value hierarchy.

If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. There were no transfers between levels during the nine months ended September 30, 2019.

The Company’s assets and liabilities measured at fair value on a recurring basis were:



	September 30, 2019
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	88	$	—	$	—	$	88
Marketable securities:
Municipal bonds	$	—	$	10,749	$	—	$	10,749
Corporate bonds	—		9,716		—		9,716
Total marketable securities	$	—	$	20,465	$	—	$	20,465
Investments in privately-held companies ⁽¹⁾	$	—	$	—	$	4,583	$	4,583

⁽¹⁾ Included in other long-term assets.



	December 31, 2018
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	10,155	$	10,000	$	—	$	20,155
Marketable securities:
Municipal bonds	$	—	$	44,705	$	—	$	44,705
Corporate bonds	—		48,296		—		48,296
Total marketable securities	$	—	$	93,001	$	—	$	93,001
Investments in privately-held companies ⁽¹⁾	$	—	$	—	$	3,390	$	3,390

⁽¹⁾ Included in other long-term assets.

For certain other financial instruments, including accounts receivable and accounts payable, the carrying value approximates fair value due to the relatively short maturity of these items.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

LEASES

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

LEASES

The Company’s leases are primarily for office space used in the ordinary course of business.

Accounting policy

All the Company’s leases are operating leases. The Company accounts for a contract as a lease when it has the right to control the asset for a period of time while obtaining substantially all of the asset’s economic benefits. The Company determines the initial classification and measurement of its operating right of use assets and lease liabilities at the lease commencement date and thereafter if modified. Fixed lease costs are recognized on a straight-line basis over the term of the lease. Variable lease costs are recognized in the period in which the obligation for those payments is incurred. The Company combines lease and non-lease components in the determination of lease costs for its office space leases. The lease liability includes lease payments related to options to extend or renew the lease term if the Company is

reasonably certain it will exercise those options. The Company’s leases do not contain any material residual value guarantees or restrictive covenants.

Expense



(in thousands)	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Fixed lease costs	$	4,763	$	13,344
Variable lease costs	1,470		4,153
	$	6,233	$	17,497

Right of use assets and lease liabilities



(in thousands)	September 30, 2019
Right of use assets ⁽¹⁾	$	62,296
Lease liabilities ⁽²⁾	$	15,742
Long-term lease liabilities	$	56,904

⁽¹⁾Represents the Company’s right to use the leased asset during the lease term. Included in other long-term assets. ⁽²⁾Included in other current liabilities.

The weighted-average remaining lease term and discount rate for the Company’s leases were:



	September 30, 2019
Weighted-average remaining lease term	4.2 years
Weighted-average discount rate ⁽¹⁾	5.8	%

⁽¹⁾The rates implicit in most of the Company’s leases are not readily determinable, therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease.

Maturities of lease liabilities are:



(in thousands)	September 30, 2019
Remainder of 2019	$	3,402
2020	21,061
2021	18,800
2022	17,642
2023 and thereafter	21,375
Total lease payments	82,280
Less: imputed interest ⁽¹⁾	(9,634		)
Total short and long-term lease liabilities	$	72,646

⁽¹⁾Lease liabilities are measured at the present value of the remaining lease payments using a discount rate determined at lease commencement unless the discount rate is updated as a result of a lease reassessment event.

As of December 31, 2018, the Company’s future minimum rental payments required under operating leases with noncancellable terms in excess of one year as determined before the adoption of ASC 842 were:



(in thousands)	Operating Leases ⁽¹⁾
2019	$	15,993
2020	14,807
2021	13,262
2022	12,279
2023	11,084
	$	67,425

⁽¹⁾Operating leases include future minimum rent payments, net of estimated sublease income for facilities that the Company has vacated pursuant to its restructuring activities.

Cash flow information



(in thousands)	Nine Months Ended September 30, 2019
Cash paid for leases	14,586
Right of use assets recognized for new leases and amendments (non-cash)	31,126

REVENUE

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

REVENUE

Geographic revenue



	Three Months Ended September 30,								Nine Months Ended September 30,
(Dollars in thousands)	2019				2018				2019				2018
U.S.	$	123,447	57	%	$	103,075	51	%	$	347,120	55	%	$	327,409	51	%
Other Americas	11,748		5	%	10,424		5	%	49,450		8	%	37,766		6	%
United Kingdom (“U.K.”)	23,034		11	%	19,277		9	%	64,269		10	%	68,450		11	%
Europe (excluding U.K.), Middle East, and Africa	34,761		16	%	42,254		21	%	102,342		16	%	101,150		16	%
Asia-Pacific	23,713		11	%	28,233		14	%	71,660		11	%	100,449		16	%
	$	216,703	100	%	$	203,263	100	%	$	634,841	100	%	$	635,224	100	%

Revenue streams



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Perpetual license	$	9,016	$	20,276	$	43,286	$	56,829
Term license	48,989		32,066		122,257		128,070
Revenue recognized at a point in time	58,005		52,342		165,543		184,899
Maintenance	70,371		66,017		207,406		196,448
Cloud	35,153		22,184		94,610		57,967
Consulting	53,174		62,720		167,282		195,910
Revenue recognized over time	158,698		150,921		469,298		450,325
	$	216,703	$	203,263	$	634,841	$	635,224



(in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Term license	$	48,989	$	32,066	$	122,257	$	128,070
Cloud	35,153		22,184		94,610		57,967
Maintenance	70,371		66,017		207,406		196,448
Subscription ⁽¹⁾	154,513		120,267		424,273		382,485
Perpetual license	9,016		20,276		43,286		56,829
Consulting	53,174		62,720		167,282		195,910
	$	216,703	$	203,263	$	634,841	$	635,224

⁽¹⁾ Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal.

Remaining performance obligations (“RPO”)

Expected future revenue on existing contracts:



	September 30, 2019
(Dollars in thousands)	Perpetual license		Term license		Maintenance		Cloud		Consulting		Total
1 year or less	$	7,689	$	25,948	$	158,220	$	133,785	$	13,145	$	338,787	56	%
1-2 years	853		3,798		18,590		105,081		863		129,185		21	%
2-3 years	1,306		591		8,323		72,915		841		83,976		14	%
Greater than 3 years	—		85		4,959		51,591		—		56,635		9	%
	$	9,848	$	30,422	$	190,092	$	363,372	$	14,849	$	608,583	100	%



	September 30, 2018
(Dollars in thousands)	Perpetual license		Term License		Maintenance		Cloud		Consulting		Total
1 year or less	$	25,343	$	44,283	$	140,591	$	88,529	$	14,107	$	312,853	60	%
1-2 years	6,490		10,063		8,877		70,815		1,830		98,075		19	%
2-3 years	360		1,598		2,586		54,646		449		59,639		11	%
Greater than 3 years	1,306		218		1,079		49,110		50		51,763		10	%
	$	33,499	$	56,162	$	153,133	$	263,100	$	16,436	$	522,330	100	%

Major clients

Clients accounting for 10% or more of the Company’s total revenue were:



	Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands)	2019		2018			2019		2018
Total revenue	$	216,703	$	203,263		$	634,841	$	635,224
Client A	*		10		%	*		*

*Client accounted for less than 10% of total revenue.

STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

Expense



	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2019			2018			2019			2018
Cost of revenues	$	4,787		$	4,319		$	14,216		$	12,277
Selling and marketing	8,317			6,198			24,055			16,895
Research and development	4,858			3,917			13,990			11,356
General and administrative	3,884			1,974			7,981			7,045
	$	21,846		$	16,408		$	60,242		$	47,573
Income tax benefit	$	(4,430	)	$	(3,555	)	$	(12,226	)	$	(10,037	)

As of September 30, 2019, the Company had $95.6 million of unrecognized stock-based compensation expense, net of estimated forfeitures, which is expected to be recognized over a weighted-average period of 2.2 years.

Grants

The Company granted the following stock-based compensation awards:



	Nine Months Ended September 30, 2019
(in thousands)	Shares	Total Fair Value
RSUs	1,153	$	75,510
Non-qualified stock options	2,165	$	41,260
Common stock	11	$	800

Common stock issued

During the nine months ended September 30, 2019, the Company issued 1.1 million shares of common stock under the Company’s stock-based compensation plans.

INCOME TAXES

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

Effective income tax rate



	Nine Months Ended September 30,
(Dollars in thousands)	2019			2018
(Benefit from) income taxes	$	(43,158	)	$	(23,692	)
Effective income tax rate	32		%	80		%

During the nine months ended September 30, 2019, the Company’s effective income tax rate decreased primarily due to the Global Intangible Low-Taxed Income (“GILTI”) provision of the Tax Reform Act. The Company’s effective income tax rate was also affected by excess tax benefits from stock-based compensation and an increase in U.S. research and development tax credits.

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

EARNINGS PER SHARE

Basic earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is computed using the weighted-average number of common shares outstanding during the applicable period, plus the dilutive effect of outstanding stock options and RSUs, using the treasury stock method. In periods of loss, all stock options and RSUs are excluded, as their inclusion would be anti-dilutive.

The calculation of the basic and diluted earnings per share was:



	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except per share amounts)	2019			2018			2019			2018
Basic
Net (loss)	$	(30,338	)	$	(7,587	)	$	(91,351	)	$	(5,796	)
Weighted-average common shares outstanding	79,200			78,700			78,928			78,525
(Loss) per share, basic	$	(0.38	)	$	(0.10	)	$	(1.16	)	$	(0.07	)

Diluted
Net (loss)	$	(30,338	)	$	(7,587	)	$	(91,351	)	$	(5,796	)
Weighted-average effect of dilutive securities:
Stock options	—			—			—			—
RSUs	—			—			—			—
Effect of dilutive securities	—			—			—			—
Weighted-average common shares outstanding, assuming dilution	79,200			78,700			78,928			78,525
(Loss) per share, diluted	$	(0.38	)	$	(0.10	)	$	(1.16	)	$	(0.07	)

Outstanding anti-dilutive stock options and RSUs ⁽¹⁾	5,953			6,119			5,923			6,380

⁽¹⁾ Certain outstanding stock options and RSUs were excluded from the computation of diluted earnings per share because they were anti-dilutive in the period presented. These awards may be dilutive in the future.

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On November 6, 2019, the Company entered into a five-year $100 million, senior secured revolving credit agreement (the “Credit Agreement”) with PNC Bank, National Association (“PNC”). The Company may use borrowings to finance working capital needs and for general corporate purposes. Subject to specific circumstances, the Credit Agreement allows the Company to increase the aggregate commitment up to $200 million. The Credit Agreement contains customary covenants, including, but not limited to, those relating to additional indebtedness, liens, asset divestures and affiliate transactions. The Company is also required to comply with financial covenants that consist of a maximum net consolidated leverage ratio of 3.5 (with a step-up in the event of certain acquisitions) and a minimum consolidated interest coverage ratio of 3.5. The commitments expire on November 4, 2024, and any outstanding loans will be payable on such date.

NEW ACCOUNTING PRONOUNCEMENTS (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Basis of presentation

Pegasystems Inc. (together with its subsidiaries, “the Company”) has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all the information required by accounting principles generally accepted in the United States of America (“U.S.”) for complete financial statements and should be read in conjunction with the Company’s audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2018.

In the opinion of management, the Company has prepared the accompanying unaudited condensed consolidated financial statements on the same basis as its audited financial statements, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented.

Leases

On January 1, 2019, the Company adopted Accounting Standards Codification 842 “Leases” (“ASC 842”) using the modified retrospective method, reflecting any cumulative effect as an adjustment to equity. Results for reporting periods beginning on or after January 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historical accounting under ASC 840 “Leases”.

The Company elected the permitted practical expedients to not reassess the following related to leases that commenced before the effective date of ASC 842: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. Upon adoption, the Company recorded right of use assets of $41.8 million and lease liabilities of $54.2 million. The difference between the value of the right of use assets and lease liabilities is due to the reclassification of existing deferred rent, prepaid rent, and unamortized lease incentives as of January 1, 2019.

See Note 9. “Leases” for additional information.

All the Company’s leases are operating leases. The Company accounts for a contract as a lease when it has the right to control the asset for a period of time while obtaining substantially all of the asset’s economic benefits. The Company determines the initial classification and measurement of its operating right of use assets and lease liabilities at the lease commencement date and thereafter if modified. Fixed lease costs are recognized on a straight-line basis over the term of the lease. Variable lease costs are recognized in the period in which the obligation for those payments is incurred. The Company combines lease and non-lease components in the determination of lease costs for its office space leases. The lease liability includes lease payments related to options to extend or renew the lease term if the Company is

reasonably certain it will exercise those options. The Company’s leases do not contain any material residual value guarantees or restrictive covenants.

Financial Instruments

Financial instruments

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires measurement and recognition of expected credit losses for financial assets measured at amortized cost, including accounts receivable, upon initial recognition of that financial asset using a forward-looking expected loss model, rather than an incurred loss model. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses when the fair value is below the amortized cost of the asset, removing the concept of “other-than-temporary” impairments. The effective date for the Company will be January 1, 2020, with early adoption permitted. The Company does not expect the adoption of this standard will have a material effect on its financial position or results of operations.

Assets and liabilities measured at fair value on a recurring basis

The Company records its cash equivalents, marketable securities, and investments in privately-held companies at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants based on assumptions that market participants would use in pricing an asset or liability.

As a basis for classifying the fair value measurements, a three-tier fair value hierarchy, which classifies the fair value measurements based on the inputs used in measuring fair value, was established as follows:


•	Level 1 - observable inputs such as quoted prices in active markets for identical assets or liabilities;


•	Level 2 - significant other inputs that are observable either directly or indirectly; and


•	Level 3 - significant unobservable inputs on which there is little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.

The Company’s cash equivalents are composed of money market funds and time deposits, which are classified within Level 1 and Level 2, respectively, in the fair value hierarchy. The Company’s marketable securities, which are classified within Level 2 of the fair value hierarchy, are valued based on a market approach using quoted prices, when available, or matrix pricing compiled by third-party pricing vendors, using observable market inputs such as interest rates, yield curves, and credit risk. The Company’s investments in privately-held companies are classified within Level 3 of the fair value hierarchy.

If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs.

MARKETABLE SECURITIES (Tables)

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Schedule of Marketable Securities



	September 30, 2019
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Municipal bonds	$	10,680	$	69	$	—	$	10,749
Corporate bonds	9,611		105		—		9,716
	$	20,291	$	174	$	—	$	20,465



	December 31, 2018
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Municipal bonds	$	44,802	$	13	$	(110	)	$	44,705
Corporate bonds	48,499		23		(226		)	48,296
	$	93,301	$	36	$	(336	)	$	93,001

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE (Tables)

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Summary of Receivable

Receivables



(in thousands)	September 30, 2019		December 31, 2018
Accounts receivable	$	123,268	$	180,872
Unbilled receivables	172,090		172,656
Long-term unbilled receivables	123,962		151,237
	$	419,320	$	504,765

Summary of Unbilled Receivables

Unbilled receivables are expected to be billed in the future as follows:



(Dollars in thousands)	September 30, 2019
1 year or less	$	172,090	59	%
1-2 years	84,045		28	%
2-5 years	39,917		13	%
	$	296,052	100	%

Summary of Contract Assets and Deferred Revenue

Contract assets and deferred revenue



(in thousands)	September 30, 2019		December 31, 2018
Contract assets ⁽¹⁾	$	5,046	$	3,711
Long-term contract assets ⁽²⁾	2,381		2,543
	$	7,427	$	6,254

⁽¹⁾Included in other current assets.⁽²⁾ Included in other long-term assets.



(in thousands)	September 30, 2019		December 31, 2018
Deferred revenue	$	159,849	$	185,145
Long-term deferred revenue ⁽¹⁾	4,029		5,344
	$	163,878	$	190,489

⁽¹⁾Included in other long-term liabilities.

DEFERRED CONTRACT COSTS (Tables)

9 Months Ended

Sep. 30, 2019

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Impairment of Deferred Contract Costs



(in thousands)	September 30, 2019		December 31, 2018
Deferred contract costs ⁽¹⁾	$	67,182	$	64,367

⁽¹⁾ Included in other long-term assets.

Schedule of Amortization of Deferred Contract Costs



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Amortization of deferred contract costs ⁽¹⁾	$	8,193	$	4,208	$	22,372	$	11,806

⁽¹⁾Included in selling and marketing expenses.

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Change in Carrying Amount of Goodwill

The change in the carrying amount of goodwill was:



(in thousands)	Nine Months Ended September 30, 2019
Balance as of January 1,	$	72,858
Acquisition ⁽¹⁾	6,179
Currency translation adjustments	(175		)
Balance as of September 30,	$	78,862

⁽¹⁾ In May 2019, the Company acquired In the Chat Communications Inc., a privately-held software provider of digital customer service software, for $10.9 million, net of cash acquired. The Company also expects to issue up to approximately 15 thousand shares in retention-based bonus payments to a key employee upon the achievement of specified retention milestones. The principal assets and liabilities acquired as part of the business combination were additional goodwill and technology intangible assets of $6.2 million and $5.1 million.

Schedule of Amortizable Intangible Assets

Intangible assets are recorded at cost and amortized using the straight-line method over their estimated useful lives as follows:



		September 30, 2019
(in thousands)	Useful Lives	Cost		Accumulated Amortization			Net Book Value ⁽¹⁾
Client-related	4-10 years	$	63,089	$	(53,960	)	$	9,129
Technology	2-10 years	64,843		(53,252		)	11,591
Other	1 - 5 years	5,361		(5,361		)	—
		$	133,293	$	(112,573	)	$	20,720

⁽¹⁾Included in other long-term assets.



		December 31, 2018
(in thousands)	Useful Lives	Cost		Accumulated Amortization			Net Book Value ⁽¹⁾
Client-related	4-10 years	$	63,115	$	(51,224	)	$	11,891
Technology	2-10 years	59,742		(50,398		)	9,344
Other	1 - 5 years	5,361		(5,361		)	—
		$	128,218	$	(106,983	)	$	21,235

⁽¹⁾Included in other long-term assets.

Amortization of Intangible Assets

Amortization of intangible assets was:



(in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Cost of revenue	$	647	$	1,232	$	2,854	$	3,695
Selling and marketing	370		1,603		2,754		4,813
	$	1,017	$	2,835	$	5,608	$	8,508

ACCRUED EXPENSES (Tables)

9 Months Ended

Sep. 30, 2019

Payables and Accruals [Abstract]

Schedule of Accrued Expenses



(in thousands)	September 30, 2019		December 31, 2018
Outside professional services expenses	$	8,568	$	10,367
Income and other taxes	5,418		10,387
Marketing and sales program expenses	5,969		5,860
Dividends payable	2,381		2,363
Employee-related expenses	4,785		3,536
Cloud hosting expenses	10,158		4,604
Other	4,241		8,389
	$	41,520	$	45,506

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value

The Company’s assets and liabilities measured at fair value on a recurring basis were:



	September 30, 2019
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	88	$	—	$	—	$	88
Marketable securities:
Municipal bonds	$	—	$	10,749	$	—	$	10,749
Corporate bonds	—		9,716		—		9,716
Total marketable securities	$	—	$	20,465	$	—	$	20,465
Investments in privately-held companies ⁽¹⁾	$	—	$	—	$	4,583	$	4,583

⁽¹⁾ Included in other long-term assets.



	December 31, 2018
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	10,155	$	10,000	$	—	$	20,155
Marketable securities:
Municipal bonds	$	—	$	44,705	$	—	$	44,705
Corporate bonds	—		48,296		—		48,296
Total marketable securities	$	—	$	93,001	$	—	$	93,001
Investments in privately-held companies ⁽¹⁾	$	—	$	—	$	3,390	$	3,390

⁽¹⁾ Included in other long-term assets.

LEASES (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Schedule of Lease Expense

Expense



(in thousands)	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Fixed lease costs	$	4,763	$	13,344
Variable lease costs	1,470		4,153
	$	6,233	$	17,497

The weighted-average remaining lease term and discount rate for the Company’s leases were:



	September 30, 2019
Weighted-average remaining lease term	4.2 years
Weighted-average discount rate ⁽¹⁾	5.8	%

⁽¹⁾The rates implicit in most of the Company’s leases are not readily determinable, therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease.

Schedule of Right of Use Asset and Lease Liabilities

Right of use assets and lease liabilities



(in thousands)	September 30, 2019
Right of use assets ⁽¹⁾	$	62,296
Lease liabilities ⁽²⁾	$	15,742
Long-term lease liabilities	$	56,904

⁽¹⁾Represents the Company’s right to use the leased asset during the lease term. Included in other long-term assets. ⁽²⁾Included in other current liabilities.

Schedule of Lease Maturities after Adoption of 842

Maturities of lease liabilities are:



(in thousands)	September 30, 2019
Remainder of 2019	$	3,402
2020	21,061
2021	18,800
2022	17,642
2023 and thereafter	21,375
Total lease payments	82,280
Less: imputed interest ⁽¹⁾	(9,634		)
Total short and long-term lease liabilities	$	72,646

⁽¹⁾Lease liabilities are measured at the present value of the remaining lease payments using a discount rate determined at lease commencement unless the discount rate is updated as a result of a lease reassessment event.

Schedule of Lease Maturities before Adoption of 842

As of December 31, 2018, the Company’s future minimum rental payments required under operating leases with noncancellable terms in excess of one year as determined before the adoption of ASC 842 were:



(in thousands)	Operating Leases ⁽¹⁾
2019	$	15,993
2020	14,807
2021	13,262
2022	12,279
2023	11,084
	$	67,425

⁽¹⁾Operating leases include future minimum rent payments, net of estimated sublease income for facilities that the Company has vacated pursuant to its restructuring activities.

Schedule of Supplemental Cash Flow Lease Information

Cash flow information



(in thousands)	Nine Months Ended September 30, 2019
Cash paid for leases	14,586
Right of use assets recognized for new leases and amendments (non-cash)	31,126

REVENUE (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Schedule of Revenue by Geographic Location

Geographic revenue



	Three Months Ended September 30,								Nine Months Ended September 30,
(Dollars in thousands)	2019				2018				2019				2018
U.S.	$	123,447	57	%	$	103,075	51	%	$	347,120	55	%	$	327,409	51	%
Other Americas	11,748		5	%	10,424		5	%	49,450		8	%	37,766		6	%
United Kingdom (“U.K.”)	23,034		11	%	19,277		9	%	64,269		10	%	68,450		11	%
Europe (excluding U.K.), Middle East, and Africa	34,761		16	%	42,254		21	%	102,342		16	%	101,150		16	%
Asia-Pacific	23,713		11	%	28,233		14	%	71,660		11	%	100,449		16	%
	$	216,703	100	%	$	203,263	100	%	$	634,841	100	%	$	635,224	100	%

Schedule of Revenue Streams

Revenue streams



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Perpetual license	$	9,016	$	20,276	$	43,286	$	56,829
Term license	48,989		32,066		122,257		128,070
Revenue recognized at a point in time	58,005		52,342		165,543		184,899
Maintenance	70,371		66,017		207,406		196,448
Cloud	35,153		22,184		94,610		57,967
Consulting	53,174		62,720		167,282		195,910
Revenue recognized over time	158,698		150,921		469,298		450,325
	$	216,703	$	203,263	$	634,841	$	635,224



(in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Term license	$	48,989	$	32,066	$	122,257	$	128,070
Cloud	35,153		22,184		94,610		57,967
Maintenance	70,371		66,017		207,406		196,448
Subscription ⁽¹⁾	154,513		120,267		424,273		382,485
Perpetual license	9,016		20,276		43,286		56,829
Consulting	53,174		62,720		167,282		195,910
	$	216,703	$	203,263	$	634,841	$	635,224

⁽¹⁾ Reflects client arrangements (term license, cloud, and maintenance) that are subject to renewal.

Revenue for Remaining Performance Obligations Expected to be Recognized

Expected future revenue on existing contracts:



	September 30, 2019
(Dollars in thousands)	Perpetual license		Term license		Maintenance		Cloud		Consulting		Total
1 year or less	$	7,689	$	25,948	$	158,220	$	133,785	$	13,145	$	338,787	56	%
1-2 years	853		3,798		18,590		105,081		863		129,185		21	%
2-3 years	1,306		591		8,323		72,915		841		83,976		14	%
Greater than 3 years	—		85		4,959		51,591		—		56,635		9	%
	$	9,848	$	30,422	$	190,092	$	363,372	$	14,849	$	608,583	100	%



	September 30, 2018
(Dollars in thousands)	Perpetual license		Term License		Maintenance		Cloud		Consulting		Total
1 year or less	$	25,343	$	44,283	$	140,591	$	88,529	$	14,107	$	312,853	60	%
1-2 years	6,490		10,063		8,877		70,815		1,830		98,075		19	%
2-3 years	360		1,598		2,586		54,646		449		59,639		11	%
Greater than 3 years	1,306		218		1,079		49,110		50		51,763		10	%
	$	33,499	$	56,162	$	153,133	$	263,100	$	16,436	$	522,330	100	%

Schedule of Revenue by Major Clients

Clients accounting for 10% or more of the Company’s total revenue were:



	Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands)	2019		2018			2019		2018
Total revenue	$	216,703	$	203,263		$	634,841	$	635,224
Client A	*		10		%	*		*

*Client accounted for less than 10% of total revenue.

STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock Based Compensation Expense

Expense



	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2019			2018			2019			2018
Cost of revenues	$	4,787		$	4,319		$	14,216		$	12,277
Selling and marketing	8,317			6,198			24,055			16,895
Research and development	4,858			3,917			13,990			11,356
General and administrative	3,884			1,974			7,981			7,045
	$	21,846		$	16,408		$	60,242		$	47,573
Income tax benefit	$	(4,430	)	$	(3,555	)	$	(12,226	)	$	(10,037	)

Summary of Stock Based Compensation Award Granted

Grants

The Company granted the following stock-based compensation awards:



	Nine Months Ended September 30, 2019
(in thousands)	Shares	Total Fair Value
RSUs	1,153	$	75,510
Non-qualified stock options	2,165	$	41,260
Common stock	11	$	800

INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Summary of Benefit from Income Taxes and Discrete Tax Items

Effective income tax rate



	Nine Months Ended September 30,
(Dollars in thousands)	2019			2018
(Benefit from) income taxes	$	(43,158	)	$	(23,692	)
Effective income tax rate	32		%	80		%

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Summary of Basic and Diluted Earnings Per Share

The calculation of the basic and diluted earnings per share was:



	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except per share amounts)	2019			2018			2019			2018
Basic
Net (loss)	$	(30,338	)	$	(7,587	)	$	(91,351	)	$	(5,796	)
Weighted-average common shares outstanding	79,200			78,700			78,928			78,525
(Loss) per share, basic	$	(0.38	)	$	(0.10	)	$	(1.16	)	$	(0.07	)

Diluted
Net (loss)	$	(30,338	)	$	(7,587	)	$	(91,351	)	$	(5,796	)
Weighted-average effect of dilutive securities:
Stock options	—			—			—			—
RSUs	—			—			—			—
Effect of dilutive securities	—			—			—			—
Weighted-average common shares outstanding, assuming dilution	79,200			78,700			78,928			78,525
(Loss) per share, diluted	$	(0.38	)	$	(0.10	)	$	(1.16	)	$	(0.07	)

Outstanding anti-dilutive stock options and RSUs ⁽¹⁾	5,953			6,119			5,923			6,380

⁽¹⁾ Certain outstanding stock options and RSUs were excluded from the computation of diluted earnings per share because they were anti-dilutive in the period presented. These awards may be dilutive in the future.

NEW ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Accounting Policies [Abstract]
Right-of-use assets	$ 62,296	$ 41,800
Total short and long-term lease liabilities	$ 72,646	$ 54,200

MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 20,291	$ 93,301
Unrealized Gains	174	36
Unrealized Losses	0	(336)
Fair Value	$ 20,465	93,001
Weighted-average remaining maturity	1 year 6 months
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 10,680	44,802
Unrealized Gains	69	13
Unrealized Losses	0	(110)
Fair Value	10,749	44,705
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	9,611	48,499
Unrealized Gains	105	23
Unrealized Losses	0	(226)
Fair Value	$ 9,716	$ 48,296

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Summary of Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Receivables [Abstract]
Accounts receivable	$ 123,268	$ 180,872
Unbilled receivables	172,090	172,656
Long-term unbilled receivables	123,962	151,237
Total receivables	$ 419,320	$ 504,765

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Summary of Unbilled Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Receivables [Abstract]
1 year or less	$ 172,090	$ 172,656
1-2 years	84,045
2-5 years	39,917
Total	$ 296,052
Percentage of unbilled receivables, 1 Year or Less	59.00%
Percentage of unbilled receivables, 1-2 Years	28.00%
Percentage of unbilled receivables, 2-5 Years	13.00%
Total percentage of unbilled receivables	100.00%

RECEIVABLES, CONTRACT ASSETS, AND DEFERRED REVENUE - Summary of Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Receivables [Abstract]
Contract assets	$ 5,046	$ 3,711
Long-term contract assets	2,381	2,543
Total contract assets	7,427	6,254
Deferred revenue	159,849	185,145
Long-term deferred revenue	4,029	5,344
Total deferred revenue	$ 163,878	$ 190,489

DEFERRED CONTRACT COSTS - Additional Information (Details)	9 Months Ended
	Sep. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Amortized period	5 years

DEFERRED CONTRACT COSTS - Schedule of Impairment of Deferred Contract Costs (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deferred contract costs	$ 67,182	$ 64,367

DEFERRED CONTRACT COSTS - Schedule of Amortization of Deferred Contract Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Amortization of deferred contract costs	$ 8,193	$ 4,208	$ 22,372	$ 11,806

GOODWILL AND OTHER INTANGIBLE ASSETS - Change in Carrying Amount of Goodwill (Details) - USD ($) shares in Thousands, $ in Thousands	1 Months Ended	9 Months Ended
	May 31, 2019	Sep. 30, 2019	Sep. 30, 2018	May 31, 2019
Goodwill [Roll Forward]
Balance as of January 1,		$ 72,858
Acquisition		6,179
Currency translation adjustments		(175)
Balance as of March 31,		78,862
Business Acquisition [Line Items]
Payments for acquisitions, net of cash acquired		10,934	$ 0
Goodwill		$ 72,858
In the Chat Communications Inc.
Goodwill [Roll Forward]
Balance as of March 31,	$ 6,200
Business Acquisition [Line Items]
Payments for acquisitions, net of cash acquired	$ 10,900
Number of shares the company expects to issue upon specified retention milestones (in shares)	15
Goodwill	$ 6,200			$ 6,200
Technology \| In the Chat Communications Inc.
Business Acquisition [Line Items]
Technology intangible assets acquired				$ 5,100

GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Amortizable Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Goodwill and Other Intangible Assets [Line Items]
Cost	$ 133,293	$ 128,218
Accumulated Amortization	(112,573)	(106,983)
Net Book Value	20,720	21,235
Client-related
Goodwill and Other Intangible Assets [Line Items]
Cost	63,089	63,115
Accumulated Amortization	(53,960)	(51,224)
Net Book Value	$ 9,129	$ 11,891
Client-related \| Minimum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	4 years	4 years
Client-related \| Maximum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	10 years	10 years
Technology
Goodwill and Other Intangible Assets [Line Items]
Cost	$ 64,843	$ 59,742
Accumulated Amortization	(53,252)	(50,398)
Net Book Value	$ 11,591	$ 9,344
Technology \| Minimum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	2 years	2 years
Technology \| Maximum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	10 years	10 years
Other
Goodwill and Other Intangible Assets [Line Items]
Cost	$ 5,361	$ 5,361
Accumulated Amortization	(5,361)	(5,361)
Net Book Value	$ 0	$ 0
Other \| Minimum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	1 year	1 year
Other \| Maximum
Goodwill and Other Intangible Assets [Line Items]
Useful Lives	5 years	5 years

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 1,017	$ 2,835	$ 5,608	$ 8,508
Cost of revenue
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	647	1,232	2,854	3,695
Selling and marketing
Acquired Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 370	$ 1,603	$ 2,754	$ 4,813

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Outside professional services expenses	$ 8,568	$ 10,367
Income and other taxes	5,418	10,387
Marketing and sales program expenses	5,969	5,860
Dividends payable	2,381	2,363
Employee-related expenses	4,785	3,536
Cloud hosting expenses	10,158	4,604
Other	4,241	8,389
Total accrued expenses	$ 41,520	$ 45,506

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Fair Value Assets
Total marketable securities	$ 20,465	$ 93,001
Level 1
Fair Value Assets
Total marketable securities	0	0
Level 2
Fair Value Assets
Total marketable securities	20,465	93,001
Level 3
Fair Value Assets
Total marketable securities	0	0
Cash equivalents
Fair Value Assets
Cash equivalents	88	20,155
Cash equivalents \| Level 1
Fair Value Assets
Cash equivalents	88	10,155
Cash equivalents \| Level 2
Fair Value Assets
Cash equivalents	0	10,000
Cash equivalents \| Level 3
Fair Value Assets
Cash equivalents	0	0
Municipal bonds
Fair Value Assets
Total marketable securities	10,749	44,705
Municipal bonds \| Level 1
Fair Value Assets
Total marketable securities	0	0
Municipal bonds \| Level 2
Fair Value Assets
Total marketable securities	10,749	44,705
Municipal bonds \| Level 3
Fair Value Assets
Total marketable securities	0	0
Corporate bonds
Fair Value Assets
Total marketable securities	9,716	48,296
Corporate bonds \| Level 1
Fair Value Assets
Total marketable securities	0	0
Corporate bonds \| Level 2
Fair Value Assets
Total marketable securities	9,716	48,296
Corporate bonds \| Level 3
Fair Value Assets
Total marketable securities	0	0
Investments in privately-held companies
Fair Value Assets
Investments in privately-held companies	4,583	3,390
Investments in privately-held companies \| Level 1
Fair Value Assets
Investments in privately-held companies	0	0
Investments in privately-held companies \| Level 2
Fair Value Assets
Investments in privately-held companies	0	0
Investments in privately-held companies \| Level 3
Fair Value Assets
Investments in privately-held companies	$ 4,583	$ 3,390

LEASES - Operating Lease Expenses (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Fixed lease costs	$ 4,763	$ 13,344
Variable lease costs	1,470	4,153
Operating lease expenses	$ 6,233	$ 17,497

LEASES - Right of Use Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases [Abstract]
Right of use assets	$ 62,296	$ 41,800
Lease liabilities	15,742
Long-term lease liabilities	$ 56,904		$ 0

LEASES - Remaining Lease Term (Details)	Sep. 30, 2019
Leases [Abstract]
Weighted-average remaining lease term	4 years 2 months 12 days
Weighted-average discount rate	5.80%

LEASES - Maturities after Adoption of 842 (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Leases [Abstract]
Remainder of 2019	$ 3,402
2020	21,061
2021	18,800
2022	17,642
2023 and thereafter	21,375
Total lease payments	82,280
Less: imputed interest	(9,634)
Total short and long-term lease liabilities	$ 72,646	$ 54,200

LEASES - Maturities before Adoption of 842 (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 15,993
2020	14,807
2021	13,262
2022	12,279
2023	11,084
Lease liabilities before adoption of 842	$ 67,425

LEASES - Cash Flow Information (Details) $ in Thousands	9 Months Ended
LEASES - Cash Flow Information (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Leases [Abstract]
Cash paid for leases	$ 14,586
Right of use assets recognized for new leases and amendments (non-cash)	$ 31,126

REVENUE - Geographic Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 216,703	$ 203,263	$ 634,841	$ 635,224
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
U.S.
Disaggregation of Revenue [Line Items]
Total revenue	$ 123,447	$ 103,075	$ 347,120	$ 327,409
Other Americas
Disaggregation of Revenue [Line Items]
Total revenue	11,748	10,424	49,450	37,766
United Kingdom (“U.K.”)
Disaggregation of Revenue [Line Items]
Total revenue	23,034	19,277	64,269	68,450
Europe (excluding U.K.), Middle East, and Africa
Disaggregation of Revenue [Line Items]
Total revenue	34,761	42,254	102,342	101,150
Asia-Pacific
Disaggregation of Revenue [Line Items]
Total revenue	$ 23,713	$ 28,233	$ 71,660	$ 100,449
Total revenue \| U.S.
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	57.00%	51.00%	55.00%	51.00%
Total revenue \| Other Americas
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	5.00%	5.00%	8.00%	6.00%
Total revenue \| United Kingdom (“U.K.”)
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	11.00%	9.00%	10.00%	11.00%
Total revenue \| Europe (excluding U.K.), Middle East, and Africa
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	16.00%	21.00%	16.00%	16.00%
Total revenue \| Asia-Pacific
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	11.00%	14.00%	11.00%	16.00%

REVENUE - Revenue Stream (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
REVENUE - Revenue Stream (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 216,703	$ 203,263	$ 634,841	$ 635,224
Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	58,005	52,342	165,543	184,899
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Total revenue	158,698	150,921	469,298	450,325
Perpetual license \| Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	9,016	20,276	43,286	56,829
Term license \| Revenue recognized at a point in time
Disaggregation of Revenue [Line Items]
Total revenue	48,989	32,066	122,257	128,070
Maintenance
Disaggregation of Revenue [Line Items]
Total revenue	70,371	66,017	207,406	196,448
Subscription
Disaggregation of Revenue [Line Items]
Total revenue	154,513	120,267	424,273	382,485
Cloud \| Revenue recognized over time
Disaggregation of Revenue [Line Items]
Total revenue	35,153	22,184	94,610	57,967
Consulting \| Revenue recognized over time
Disaggregation of Revenue [Line Items]
Total revenue	$ 53,174	$ 62,720	$ 167,282	$ 195,910

REVENUE - Revenue for Remaining Performance Obligations Expected to be Recognized (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
1 year or less	$ 338,787	$ 312,853
1-2 years	129,185	98,075
2-3 years	83,976	59,639
Greater than 3 years	56,635	51,763
Total	$ 608,583	$ 522,330
Percentage of remaining performance obligations, 1 year or less	56.00%	60.00%
Percentage of remaining performance obligations, 1-2 years	21.00%	19.00%
Percentage of remaining performance obligations, 2-3 years	14.00%	11.00%
Percentage of remaining performance obligations, Greater than 3 years	9.00%	10.00%
Total percentage of remaining performance obligations	100.00%	100.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction
Perpetual license
Disaggregation of Revenue [Line Items]
1 year or less	$ 7,689	$ 25,343
1-2 years	853	6,490
2-3 years	1,306	360
Greater than 3 years	0	1,306
Total	$ 9,848	33,499
Perpetual license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Perpetual license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	2 years
Perpetual license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	3 years
Perpetual license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction
Term license
Disaggregation of Revenue [Line Items]
1 year or less	$ 25,948	44,283
1-2 years	3,798	10,063
2-3 years	591	1,598
Greater than 3 years	85	218
Total	$ 30,422	56,162
Term license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Term license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	2 years
Term license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	3 years
Term license \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction
Maintenance
Disaggregation of Revenue [Line Items]
1 year or less	$ 158,220	140,591
1-2 years	18,590	8,877
2-3 years	8,323	2,586
Greater than 3 years	4,959	1,079
Total	$ 190,092	153,133
Maintenance \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Maintenance \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	2 years
Maintenance \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	3 years
Maintenance \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction
Cloud
Disaggregation of Revenue [Line Items]
1 year or less	$ 133,785	88,529
1-2 years	105,081	70,815
2-3 years	72,915	54,646
Greater than 3 years	51,591	49,110
Total	$ 363,372	263,100
Cloud \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Cloud \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	2 years
Cloud \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	3 years
Cloud \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction
Consulting
Disaggregation of Revenue [Line Items]
1 year or less	$ 13,145	14,107
1-2 years	863	1,830
2-3 years	841	449
Greater than 3 years	0	50
Total	$ 14,849	$ 16,436
Consulting \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Consulting \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	2 years
Consulting \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	3 years
Consulting \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction

REVENUE - Revenue by Major Client (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Product Information [Line Items]
Total revenue	$ 216,703	$ 203,263	$ 634,841	$ 635,224
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
Total revenue \| Client A \| Customer concentration risk
Product Information [Line Items]
Concentration Risk, Percentage		10.00%

STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 21,846	$ 16,408	$ 60,242	$ 47,573
Income tax benefit	(4,430)	(3,555)	(12,226)	(10,037)
Cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	4,787	4,319	14,216	12,277
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	8,317	6,198	24,055	16,895
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	4,858	3,917	13,990	11,356
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation before tax	$ 3,884	$ 1,974	$ 7,981	$ 7,045

STOCK-BASED COMPENSATION - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($) shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unrecognized stock-based compensation expense \| $	$ 95.6
Weighted-average period of recognition of unrecognized stock-based compensation expense (in years)	2 years 2 months 12 days
Shares issued (in shares) \| shares	1,100,000

STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Awards Granted (Details) - Employees $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($) shares
RSUs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
RSUs (in shares) \| shares	1,153,000
Total Fair Value \| $	$ 75,510
Non-qualified stock options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Options granted (in shares) \| shares	2,165,000
Total Fair Value \| $	$ 41,260
Common Stock
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Options granted (in shares) \| shares	11,000
Total Fair Value \| $	$ 800

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
(Benefit from) income taxes	$ (17,520)	$ (8,589)	$ (43,158)	$ (23,692)
Effective income tax rate			32.00%	80.00%

(Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Earning per share reconciliation
Net (loss)	$ (30,338)	$ (32,296)	$ (28,717)	$ (7,587)	$ (10,409)	$ 12,200	$ (91,351)	$ (5,796)
Weighted-average common shares outstanding (in shares)	79,200			78,700			78,928	78,525
(Loss) per share, basic (in dollars per share)	$ (0.38)			$ (0.10)			$ (1.16)	$ (0.07)
Effect of dilutive securities (in shares)	0			0			0	0
Weighted-average common shares outstanding, assuming dilution (in shares)	79,200			78,700			78,928	78,525
(Loss) per share, diluted (in dollars per share)	$ (0.38)			$ (0.10)			$ (1.16)	$ (0.07)
Outstanding anti-dilutive stock options and RSUs (in shares)	5,953			6,119			5,923	6,380
Stock options
Earning per share reconciliation
Weighted-average effect of dilutive securities (in shares)	0			0			0	0
RSUs
Earning per share reconciliation
Weighted-average effect of dilutive securities (in shares)	0			0			0	0

SUBSEQUENT EVENTS (Details) - PNC Bank, National Association - Subsequent Event	Nov. 06, 2019 USD ($)
Revolving Credit Facility \| Line of Credit
Subsequent Event [Line Items]
Revolving credit agreement term	5 years
Senior secured revolving credit agreements	$ 100,000,000
Increase in aggregate commitment amount	$ 200,000,000
Credit Agreement
Subsequent Event [Line Items]
Maximum consolidated net leverage ratio	3.5
Minimum consolidated coverage ratio	3.5