PROS Holdings, Inc.

Greetings. Welcome to the PROS Holdings Fourth Quarter and Full Year 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 call over to Belinda Overdubut, Senior Manager of Investor Relations.

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 Stefan Schultz, Chief Financial Officer. Consistent with how our global teams are 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 forecast. In particular, there is significant uncertainty around the duration and impact of COVID. This means that results could change at any time, and the contemplated impact of COVID 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 SEC 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, Belinda. Good afternoon, everyone, and thank you for joining us on today's call. As I reflect on the past year, I'm incredibly proud of our amazing team and how we supported our customers, partners, and each other. Despite the impact of COVID on our business and our customers, we grew our subscription revenue by 17% in 2020. I'm also pleased to share that we exceeded the high end of our guidance range across all metrics, which Stefan will cover in more detail later. These results are driven by our people and culture, which is defined by our values of ownership, innovation, and caring for each other, our customers, and our communities. In 2020, we kept each other safe and supported each other through personal challenges. We stood by our customers and partnered with them through the challenges they faced and rapidly delivered innovations to help them come back stronger. Innovation is core to our DNA. And last quarter, we added many innovations across our platform, including next-generation pluggable AI models and self-service capabilities to accelerate adoption. We see more than ever that the ability to power an omnichannel digital sales experience is an imperative for businesses today. Industry analysts expect that by 2025, 80% of B2B sales interactions will occur in digital channels. The PROS platform is uniquely positioned to deliver an omnichannel digital sales motion, We're focused our innovations on making our platform even faster to adopt by our customers. For example, our latest smart CPQ innovations make it even easier for customers to accelerate their digital sales transformations with self-service capabilities. This provides businesses with greater flexibility to adjust and implement go-to-market strategies in real time and deliver a better customer experience. Innovations like these are why this past quarter Carrier selected our platform to power a frictionless digital sales motion. Speed to market has never been as critical as it is today in digital marketplaces. Our latest platform innovations enable customers to develop, test, and deliver AI-powered dynamic pricing at scale and in real time. Capabilities such as these are why leading companies like Wesco are adopting our platform. The Fortune 500 electrical distribution and services company merged with Annexer last year and pros customers since 2014. Wesco recognized the immense value of our AI-powered omni-channel platform and plans to adopt pros across their global enterprise to deliver upon their digital growth strategy. The strength of our AI-powered platform, deep customer partnerships, and the ability to deliver a frictionless sales experience make choice for industry-leading companies like BSF. The global chemicals manufacturer is upgrading to our cloud technology after almost a decade of partnership to deliver a better customer experience with dynamic market-based prices. We're encouraged by the continued strong demand for B2B solutions as companies embrace the rapid changing market. For the travel business, we believe 2021 will see a continued increase in passenger demand, driven primarily by leisure and domestic travel, but not back to pre-COVID levels. The recent vaccine symbolizes an early step in recovery for the travel industry. We're pleased to see improved passenger demand in some markets. Our technology is a cornerstone for an airline's business. And there's no better example than our newest customer, Breeze Airways. An innovative U.S.-based startup, Breeze selected pros to power their revenue management strategy and drive their digital selling journey as their business comes online. This is a testament to the exceptional value of our technology, and we look forward to partnering with Breeze and helping them successfully launch this year. We're pleased to welcome Carrier and Breeze, among other new customers, to the PROS family and continue to expand our partnership with existing customers. Now I'll share our 2021 strategy before I close with a few highlights on our incredible people and culture. This year, we remain committed on our mission of helping people and companies outperform by leading their digital selling transformations. We plan to accomplish this by continuing to execute upon our strategy of driving market transformation with our end-to-end platform, further leveraging partnerships to accelerate growth in delivering exceptional value and an incredible experience for our customers. We will drive market transformation with our platform by ensuring the market understands the depth and breadth of our capabilities. We'll continue to innovate to accelerate time to value and empower businesses to create and deliver personalized offers to their customers across digital and traditional channels. We're focused on further leveraging partnerships with commerce technology platforms, system integrators, and online marketplaces. Last quarter, we launched our pricing solutions on the SAP App Center to make the Power of Pros platform more consumable than ever to the full SAP ecosystem. We'll continue to extend the reach of our market-leading technology through our partner network in 2021. We'll build upon our customer experience and engagement team's amazing effort last year with a continued focus on delivering exceptional value and an incredible experience for our customers. Despite the challenges of the pandemic, our team delivered a record number of go-lives in 2020, most of which were completed 100% virtually and further strengthened our customer advocacy scores. I'm incredibly proud of our team, and I'd like to thank John Alessio for all his contributions to pros in building a world-class organization. and wish him the best in his retirement. Stepping into the role of Chief Customer Officer is Martin Szymanczyk. We're excited to have Martin back at PROS, and he will be responsible for end-to-end customer engagement, platform adoption, and value deliver as we scale our business and customer base. I'm also thrilled to welcome Sherry Lautenbach to the PROS family as Senior Vice President of Global B2B Sales. Sherry will be responsible for accelerating market adoption of the PROS platform as organizations seek to transform into and selling experiences to meet buyers' increasing demands. At PROS, we want a better world for all and are committed to ensuring that our employees can realize their full potential. Our employee resource groups continue to make an incredible impact inside and outside of our organization, through community volunteering efforts in educational programs on diversity, equity, and inclusion. We're also committed to our emphasis on helping our people learn and grow. Our team completed over 10,000 training courses ranging in topics from leadership and teamwork to mindfulness and communications. I'm very proud to see our team continue to grow in the face of adversity. In recognition of the amazing culture our team has created together, I'm pleased to share the process received the Great Place to Work certification. We remain committed to ensuring that our employees can bring their authentic selves to work in an inclusive environment so they can thrive and grow. We entered this year passionate about realizing our vision to optimize every shopping and selling experience. We have the right people, strategy, and platform to grow and capture the strong market opportunity in front of us. As I close, I'd like to thank our global team for their incredible passion and efforts towards our vision and making PROS an incredible place. Thank you to our customers, partners, and shareholders for your support of PROS. With that, I'd like to turn the call over to Stefan to cover our financial performance and outlook.