Good day, ladies and gentlemen, and welcome to the Pegasystems First Quarter 2014 Earnings Call. [Operator Instructions] And as a reminder, today's conference is being recorded. And now I would like to turn it over to your host Rafe Brown.

Good evening, ladies and gentlemen. Certain statements contained in this presentation including but not limited to statements related to future earnings, bookings, revenue and mix of license revenue may be construed as forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. The words anticipates, projects, expects, plans, intends, believes, estimates, targets, forecasts and could and other similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Because such statements deal with future events, they are subject to various risks and uncertainties. Actual results for fiscal year 2014 and beyond could differ materially from the company's current expectations. Factors that could cause the company's results to differ materially from those expressed in forward-looking statements are contained in the company's press release announcing its Q1 2014 earnings and the company's filings with the securities and exchange commission including its quarterly report on Form 10-Q for the quarter ended March 31, 2014 and its annual report on Form 10-K for the year ended December 31, 2013, and other recent filings with the SEC. Although subsequent events may cause the company's view to change, the company undertakes no obligation to revise or update forward-looking statements whether as a result of new information, future events or otherwise since these statements may no longer be accurate or timely. And with that, I will turn the call over to Alan Trefler, Founder and Chief Executive Officer of Pegasystems.

Hey. Thanks a lot. Really appreciate the great work you and your team have been doing Rafe. And I'm pleased to say that Q1 was a strong quarter and a great way to start the year. We had total non-GAAP revenue up 22% to $142 million. Our non-GAAP license revenue was up 23% to $53 million. And we have strong GAAP earnings at $0.20 a share, up 18%. All this with excellent cash flow. Very, very nice quarter. We had a fantastic set of wins of companies, like new companies like Walt Disney, where two divisions of Walt Disney have chosen Pega to manage the workflow for distribution of media and localization of products such as films and TV and toys. And a top global manufacturing firm, which is another success in the emerging area of internet of things. We're helping a heavy vehicle manufacturer manage the health of their clients' machinery and improve overall quality of customer experience. We had quite an experience in this area. For example, GM OnStar, a longstanding client, is going to be presenting at PegaWORLD, how they used Pega to drive customer response that is the backbone of that system. And we're also showing we can become part of a comprehensive backbone to smaller firms as well. Pega is helping HomeServe, a leading multinational residential service and maintenance provider embark on a transformation program, to help them become more customer focused across multiple product lines, partners and channels, achieving global standardization while taking account of the business imperatives across the different markets. And our existing customers of course are very, very central to our business, and we had excellent results there. Strong follow-on business for example with Royal Bank of Canada where the wealth management division previously deployed Pega as their U.S. service management…

Thank you, Alan. For the first quarter of 2014, we're reporting both GAAP and non-GAAP results. A full reconciliation of all GAAP to non-GAAP measures is provided in the financial tables of the press release issued earlier today and is available on our website. For the first quarter of 2014, non-GAAP revenue was $142 million, up 22% year over year. This includes a contribution of approximately $6 million from Antenna which we acquired in the fourth quarter of last year. Non-GAAP license revenue was $53 million, up 23% year over year. This includes a contribution of approximately $2 million from Antenna. In an effort to provide better visibility on our growing cloud business, we've begun breaking out detail of our services revenue in the footnotes for the financial statements, which can be found in our Form 10-Q filed earlier today. In addition, we will be including cloud backlog in our overall backlog measures. Given that an increasing number of our clients are evaluating both our on-premise and cloud offerings, we felt it important to include the small but growing element in our overall revenue and backlog measures. For the first quarter, our non-GAAP cloud revenue stood at $4 million, up 129% over the prior year. As we've previously stated, it is our objective to over time increase the contribution of license cloud and maintenance revenue relative to other services revenue as we endeavor to increase the number of implementations performed by our partners and clients. As a percentage of first quarter 2014 non-GAAP revenue, license cloud and maintenance revenue stood at 72% of total revenue, up from 70% in the first quarter of 2013. In dollar terms, non-GAAP professional services and training revenue were $40 million in the first quarter, up approximately $5 million from the first quarter of 2013.…

[Operator Instructions] Sir, at the moment I'm showing no questions, but I will give the instructions again. [Operator Instructions]

Well, I guess there are times when good results speak for themselves. So I'll just close by repeating the invitation to join us at PegaWORLD 2014. You can find it on our website. It's June 8th to 10th at the Gaylord in New York -- I'm sorry, in Washington, D.C. And we've got an awesome collection of customers who agreed to come forward and speak to others about what they're doing, which is actually pretty remarkable. We have the EVP and Head of Client Service Delivery from Bank of New York Mellon, the Head of Customer Base Management from the largest telco in the U.K., the CFO of the FBI, the CIO of Medicare and Retirement from UnitedHealth, the CTO of PayPal, and many, many more. It's a conference that really is geared around having customers hear real in-depth stories of digital experience and transformation. And even if somebody can come just for the Monday, which will be the 9th, I think you'd be sure to find it highly, highly worthwhile. So, a great start to the year, an exciting time for Pegasystems and for our customers. And we're working hard for all of you. Thank you.