Mark Chappell

Mark Chappelle asked about the adoption of Pega GenAI Blueprint's new capability to analyze legacy applications and automatically design workflows, specifically whether customers are integrating this into production or if it's still in the planning stages. He also asked Ken Stillwell about the legacy transformation opportunity's contribution to ACV growth.

Answer

Alan Trefler, Founder and CEO of Pegasystems, confirmed that Blueprint is integral to all new implementations over the past six months, with many already in production. He clarified that Blueprint enhances the design environment, while the established Pega workflow engine runs in production, noting recent enhancements like localization. Ken Stillwell, COO and CFO, stated that any acceleration in ACV growth beyond guidance would be largely attributable to Pega GenAI Blueprint and legacy transformation opportunities, as these initiatives align with Pega's core focus on IT modernization.

Mark Chappell from Loop Capital Markets inquired about the general health of SPS Commerce's SMB customers and the level of customer churn being observed amidst delayed purchasing decisions.

Answer

CEO Chad Collins stated that customer churn, meaning full cancellations, has remained very consistent with historical levels. He clarified the pressure is not from increased business failures but from existing customers scrutinizing invoices for cost savings and from slower new deal cycles due to macro uncertainty.