PROS Holdings, Inc.

Welcome to the PROS Holdings third quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to Shannon Tatz, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us. Our earnings press release, SEC filings, and a replay of today's call can be found on the Investor Relations section of our website at pros.com. With me on today's call is Andres Reiner, President and Chief Executive Officer, and Stephan Schultz, Chief Financial Officer. Consistent with how our global team is operating today, the three of us are hosting this call from our homes. Please note that some of the commentary today will include forward-looking statements, including, without limitation, those about our strategy, future business prospects and market opportunities, and our financial projections. Actual results could differ materially from such statements in our forecasts. In particular, there is significant uncertainty around the duration and impact of the COVID-19 pandemic. This means that results could change at any time, and the contemplated impact of COVID-19 on the company's business results and outlook is a best estimate based on the information available as of today. For more information, please refer to the risk factors described in our SCC filings. PROS assumes no obligation to update any forward-looking statements to reflect future events or circumstances. As a reminder, during the call, we will discuss non-GAAP metrics, reconciliations between each non-GAAP measure and the most directly comparable GAAP measure to the extent to which available without unreasonable effort are available in our earnings press release. With that, I'll turn the call over to you, Andres.

Thank you, Shannon. Good afternoon, everyone, and thank you for joining us on today's call. On behalf of PROS, we hope that you and your families continue to stay healthy and safe. The pandemic has impacted our customers and our business, but I'm incredibly proud of how our team is executing and supporting our customers. I'm pleased to report that even in this particularly challenging macroeconomic backdrop, we beat our revenue and profitability guidance last quarter. These results reflect our commitment to our mission of helping people and companies outperform in the incredible value our digital selling solutions provide. Our vision is to be the AI platform that powers digital selling. And companies across industries now recognize that selling digitally is essential to win in today's new reality. In the first few months of 2020, e-commerce penetration in the US rose from 16% to 33%, according to industry analysts. There has been more growth in the past few months than the whole last decade. This rapid shift in buying behavior creates an incredible opportunity for companies that embrace self-service. And we're uniquely positioned to power omni-channel selling with our AI pricing and selling solutions. Our leading AI platform that powers digital commerce continues to set the pace of innovation, and we're laser focused on helping our customers win in this digital era. At our outperformed customer conference earlier this month, we unveiled many new digital commerce innovations. Like most companies, we held our conference virtually this year. While I miss connecting with everyone in person, it was amazing to have more than 5,000 registrants from over 1,000 companies to hear about our latest innovation in digital selling thought leadership. This kind of reach simply wasn't possible before. And the strong turnout we had for our performance is testament to the importance of pros empowering digital commerce today. During the event, We release our next-generation dynamic pricing capabilities for B2B commerce to accelerate companies' shift to digital commerce. Our innovative algorithms enable companies to quickly deliver dynamic market-driven prices across online, low-touch, and no-touch channels. This next-generation solution gives companies the ability to harmonize between negotiated and non-negotiated channels to win in their markets and deliver a great customer experience. We were also excited to announce the expansion of our relationship with Adobe. Adobe has been an incredible customer and we look forward to expanding our partnership with them after releasing our Magento Accelerator and joining the Magento marketplace. Now our joint customers can power their online channels with our market leading digital commerce platform. For travel customers, we showcase dynamic class-free pricing, which is at first in the industry. This innovation enables airlines to better identify passengers' willingness to pay by delivering dynamic pricing along a continuum and removing the limitations historically imposed by fare classes. Additionally, we release our latest innovation for group sales to help airlines address the challenges of today. Our latest innovations offer extended reservation windows with refund and change capabilities so airline customers can provide group travelers with increased flexibility and a great customer experience. Innovations like these are helping companies better serve their customers and adapt in an ever-changing market. Now I'd like to share a few customer examples from the third quarter. Last quarter, we welcomed diversity as a new customer. Diversity is a global leader in hygiene, infection prevention, and cleaning solution that is playing a critical role in helping businesses and facilities reopen safely. Diversity selected our guidance and opportunity detection solution to personalize their offers and prices based on the customer's unique needs. We're incredibly proud to partner with diversity and help them adapt their business to capture growth opportunities. Last quarter, we also expanded with existing customers. For example, a leading international health diagnostics provider chose to migrate to our smart CPQ and guidance solutions. With our technology, the company plans to deliver a better customer experience to physicians, hospitals, and clinics to ensure their patients across the world receive diagnostics such as COVID tests faster. Final example of how our customers leaning into self-serve is Qatar Airways. Qatar Airways has been a customer for more than two decades and last quarter chose to migrate to our next generation group sales optimizer in OneSearch Solutions. With these solutions, Qatar Airways will be poised to deliver a frictionless, self-serve booking experience for group travelers across the world in advance of the FIFA World Cup in 2022. These are just a few examples of how we're helping our customers reimagine how they sell to win in the digital era. Now I'll shift to comment on the pace of our business. While we continue to feel the effect of COVID, in B2B our pipeline continues to grow and the market demand is improving over the first half of the year. We're focused on helping customers start smaller and achieve faster time to value. In travel, our main focus continues to be supporting airlines on their way to recovery. Our logo retention with airline customers remains best in class, which is a testament to the significant value that our solutions provide. The ongoing impact of COVID is putting some pressure on the dollar-based retention associated with our travel customer renewals, which Stefan will cover in more detail. Overall, we're pleased with how we're continuing to deliver on our mission. We're excited about the new innovations we're bringing to market that will help us lead in the area of digital selling and capture our attractive market opportunity. I want to thank our amazing global team for your unwavering commitment to our customers. And thank our shareholders, partners, and customers for your continued support of PROS. With that, I'll turn the call over to Stefan to cover our financial performance and business outlook.