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. "