| Schedule of Performance Obligations |
The Company’s typical performance obligations are: | | | | | | | | | | | | | | | | | | | | | | | | | | | Performance obligation | | How stand-alone selling price is typically determined | | When performance obligation is typically satisfied | | When payment is typically due | | Income statement line item | | Pega Cloud | | Residual approach | | Ratably over the term of the service (over time) | | Annually, or more frequently, over the term of the service | | Subscription services | | Term license | | Residual approach | | Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time) | | Annually, or more frequently, over the term of the license | | Subscription license | | Maintenance | | Consistent pricing relationship as a percentage of the related license and observable in stand-alone renewal transactions (1) | | Ratably over the term of the maintenance (over time) | | Annually, or more frequently, over the term of the maintenance | | Subscription services | | Perpetual license | | Residual approach | | Upon transfer of control to the client, defined as when the client can use and benefit from the license (point in time) | | Effective date of the license | | Perpetual license | Consulting
- time and materials | | Observable hourly rate for time and materials-based services in similar geographies | | Based on hours incurred to date (over time) | | Monthly | | Consulting | Consulting
- fixed price | | Observable hourly rate for time and materials-based services in similar geographies multiplied by estimated hours for the project | | Based on hours incurred as a percentage of total estimated hours (over time) | | As contract milestones are achieved | | Consulting |
(1) Technical support and software updates are considered distinct services but accounted for as a single performance obligation, as they have the same pattern of transfer to the client. Expected future revenue from existing non-cancellable contracts: As of December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | Subscription services | | Subscription license | | Perpetual license | | Consulting | | Total | | Pega Cloud | | Maintenance | | | | | 1 year or less | $ | 525,133 | | | $ | 230,866 | | | $ | 88,880 | | | $ | 317 | | | $ | 50,519 | | | $ | 895,715 | | 56 | % | 1-2 years | 328,234 | | | 65,461 | | | 10,874 | | | — | | | 3,297 | | | 407,866 | | 25 | % | 2-3 years | 159,536 | | | 24,598 | | | 733 | | | — | | | 125 | | | 184,992 | | 11 | % | Greater than 3 years | 114,256 | | | 19,935 | | | 678 | | | — | | | 50 | | | 134,919 | | 8 | % | | $ | 1,127,159 | | | $ | 340,860 | | | $ | 101,165 | | | $ | 317 | | | $ | 53,991 | | | $ | 1,623,492 | | 100 | % |
As of December 31, 2023: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | Subscription services | | Subscription license | | Perpetual license | | Consulting | | Total | | Pega Cloud | | Maintenance | | | | | 1 year or less | $ | 446,160 | | | $ | 245,271 | | | $ | 62,070 | | | $ | 2,284 | | | $ | 39,810 | | | $ | 795,595 | | 54 | % | 1-2 years | 279,474 | | | 67,720 | | | 9,138 | | | 443 | | | 2,020 | | | 358,795 | | 25 | % | 2-3 years | 144,453 | | | 37,142 | | | 9,789 | | | — | | | 2,896 | | | 194,280 | | 13 | % | Greater than 3 years | 90,177 | | | 24,421 | | | 100 | | | — | | | — | | | 114,698 | | 8 | % | | $ | 960,264 | | | $ | 374,554 | | | $ | 81,097 | | | $ | 2,727 | | | $ | 44,726 | | | $ | 1,463,368 | | 100 | % |
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