Pegasystems (NASDAQ: PEGA) reported Q3 EPS of $0.05, $0.12 worse than the analyst estimate of $0.17. Revenue for the quarter came in at $179.82 million versus the consensus estimate of $200.15 million.

“We continue to increase our penetration in the CRM market and see an increasing number of new organizations adopting our software to support their strategic business goals,” said Alan Trefler, founder and CEO, Pegasystems. “We are working to aggressively evolve our go-to-market strategy. I remain confident in our long-term strategy and ability to execute, which is reinforced by many of the positive trends we are seeing, not just in this quarter, but over the last nine months.”

“Our movement to recurring commitments further accelerated in the third quarter of 2017 with a significant increase in our cloud offering,” said Ken Stillwell, CFO, Pegasystems. “This mix shift has contributed to the year over year growth of $65 million in ACV and $104 million in Term license and Cloud backlog. This faster than expected shift to recurring has led to a headwind of over $40 million in revenue and $0.33 in diluted EPS year to date. Nonetheless, we are pleased by this transition to recurring and that our clients are increasing their move to cloud and subscription licensing.”

For earnings history and earnings-related data on Pegasystems (PEGA) click here.