Max Persico

Max Persico asked about the current monetization strategy for generative AI and agentic AI features embedded in Pricing Center and Underwriting Centers, how it might evolve, and the potential impact on gross margins as usage and adoption of these new features scale.

Answer

CEO Mike Rosenbaum stated that the baseline pricing is a percentage of direct written premium (DWP), aligning incentives with customer growth, and GenAI features are embedded within these new centers rather than specifically priced. He acknowledged the need for constraints to manage costs but noted the astounding improvements in GenAI model efficiencies over time, which are factored into product design.

Max Persico asked about the mix of direct versus channel business and how partner-branded Blueprints might affect it. He also followed up on the macro environment, asking if sentiment had changed in the last 90 days.

Answer

COO & CFO Kenneth Stillwell and Founder & CEO Alan Trefler clarified that Pega does not have a traditional reseller channel and that partner-branded Blueprints represent a new, incremental opportunity. Regarding the macro, Trefler noted a 'slightly lower level of anxiety,' while Stillwell described the environment as 'slightly better' than 90 days prior.