ACV Performance
Q: What drove Q2 ACV performance?
A: Management highlighted improved sales execution combined with strong GenAI Blueprint momentum and a robust Pega Cloud mix, which supported continual prospecting and consistent deal flow, delivering 13% ACV growth in constant currency.

Cloud Migration
Q: Does GenAI accelerate cloud migration?
A: Management noted that GenAI is creating additional incentive for customers to migrate to Pega Cloud, expecting this momentum to carry forward into 2025 and further boost net new ACV.

Blueprint Production
Q: When will blueprints go live?
A: Management explained that several partners have already converted blueprints into engagements, with select customers running pilot live deployments, though full licensing impact is anticipated later.

ACV Upside
Q: Will Blueprint drive $2B ACV faster?
A: Management indicated that the innovative Blueprint platform could help accelerate the journey toward $2B ACV closer to three years, though such outcomes remain dependent on sustained momentum.

Federal Business
Q: How is the federal segment performing?
A: Management shared that engagement in federal and international government accounts is robust, with expansive opportunities across U.S. departments and other global entities, reinforcing business reliability.

Term License
Q: Any changes in term license renewals?
A: Management pointed out that term renewals are timing-based; with few Q3 renewals expected as customers increasingly shift to Pega Cloud, this results in modest declines in traditional term revenue.

New Logos
Q: How will you win new $1B ACV logos?
A: Management outlined a targeted approach using existing teams and leveraging prior Pega relationships to focus on familiar, high-potential organizations, rather than a broad, unfocused effort.

Cash Flow
Q: Is cash flow trajectory changing?
A: Management expects positive cash flow to continue, noting strong first-half performance even as seasonal billing and Q3 collection challenges persist, with overall free cash flow strength maintained.

AI-Driven Deals
Q: Are AI-driven deals influencing spending?
A: Management observed that rising customer interest in AI applications is reshaping deal structures, with a growing emphasis on embedding AI into solutions through both existing accounts and partner recommendations.

Blueprint Feedback
Q: What’s the customer feedback on Blueprint?
A: Customers are enthusiastic about Blueprint, praising its ability to accelerate design processes from weeks to hours, with continuous updates based on high demand for additional features.

Sales Execution
Q: How is software spending trending?
A: Management described broad-based, steady software spending paired with improved targeted sales execution, reducing dependence on sporadic large deals and emphasizing consistent customer engagement.

Workflow Use Cases
Q: Which common workflows are activated?
A: Management highlighted that key workflows include customer service processes and master data management, integrating classic back-end systems with modern, AI-enhanced operational designs.

Revenue Mix
Q: How’s fixed vs. variable revenue evolving?
A: Management views the revenue stream as a flexible continuum—clients commit to certain usage levels with the option to scale, analogous to cloud giants, rather than relying on a fixed “subscription versus consumption” split.