PROS Holdings, Inc.

Greetings. Welcome to PROS Holdings first quarter 2021 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 Belinda Overdupa, Senior Manager of Investor Relations. Thank you. You may begin.

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. Our prepared remarks will also be available on our website immediately following the call and will be replaced by the official transcript, which includes participant questions once available. With me on today's call is Andres Reiner. President and Chief Executive Officer, and Stefan Schultz, Chief Financial Officer. 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 and our forecast. In particular, there is significant uncertainty around the duration and impact of COVID-19. 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 the 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. I'm pleased to share the last quarter we exceeded the Hanover guidance range across all metrics. We're encouraged by the demand for solutions and the market opportunity in front of us as the macro environment continues to recover. B2B enterprises are increasingly looking for ways to sell their products and services digitally. Industry analysts now expect digital sales to overtake direct sales as the primary B2B channel by the end of 2021. Organizations need more than ever a platform that can deliver a true omni-channel sales experience. The PROS platform has been uniquely designed to optimize selling across direct and digital channels. Last quarter, we welcomed new B2B customers who are embracing the shift to digital selling. One example is Deluxe, a US-based provider of business technology and payment services. With millions of customers across multiple divisions, Deluxe needed a scalable solution that could centralize and optimize omnichannel price management. Deluxe will leverage your AI-powered platform to analyze customers' buying patterns, develop real-time market-winning price recommendations, and identify cross-sell and up-sell opportunities. With PROS, Deluxe will provide their customers a consistent and personalized buying experience across direct, in digital sales channels, driving higher win rates and fueling their long-term growth. On the travel side of our business, we're seeing signs of improvement. The recovery of domestic and leisure travel in the U.S. is underway with the rollout of vaccines. We're also seeing improvements in specific overseas markets like China and Australia. Although it will take time for the industry to fully recover globally, we're starting to see airlines look to the future, and our solutions are at the heart of where they're looking to go. Airlines are looking to deliver self-service, digital buying experience to their customers for all their offerings, whether it will be passenger, group, corporate, or cargo sales. We're bringing to market new innovations in all of these areas and are delivering them to our customers with a fully connected sales experience in our platform. Airlines are anticipating a pent-up demand for travel as the recovery progresses, and they will need a sharp focus on delivering highly personalized offers that drive conversion of passenger sales. In Q1, we launch our Pro's Dynamic Offers, giving airlines the power to deliver personalized fare, seat, and ancillary products and bundles to their customers through any distribution channel. Powered by AI, Pro's Dynamic Offers continuously learns passenger preferences, everything from seat preferences to ancillaries to locations of travel. And tailors offers to those preferences, driving higher win rates and better customer experience. With our corporate sales solution, airlines can create, manage, and renew personalized contracts that include pre-negotiated discounts on fares and ancillary services for their clients. Or AI-powered price guidance and omni-channel selling capabilities automate contract negotiations for corporate sales teams and enable customers to self-serve contracts online. so that airlines can bring business flyers back to the skies even faster. Similarly, our air cargo solution empowers airlines to deliver personalized quotes and contracts to customers through direct and digital channels. With dynamic prices that consider capacity constraints in changing market conditions, airlines can power their recovery with our solution by optimizing cargo revenue while delivering an incredible customer experience. Our market-leading innovations for airlines are why in Q1 we were thrilled to welcome United Airlines as a new PROS customer. As enterprises seek solutions to win in digital marketplaces, we're seeing an increased reliance on AI and machine learning to drive business results. PROS is a pioneer and proving leader of AI, and I'm proud to share that last quarter we received the inaugural 2021 AI Excellence Award for Machine Learning. We've been at the forefront of business AI for decades. continuously delivering leading-edge innovations. Our advanced AI and machine learning algorithms use an ensemble approach to combine multiple models to deliver the best outcome possible. Our models are also adaptive. They self-learn and recalibrate based on user interactions and data signals. The strength of our AI is proven by the significant ROI we deliver through win rate improvements, revenue growth, and margin uplift for customers. Our AI-powered platform supports everything from customer demand forecasts to willingness to pay predictions to extensible AI algorithms and more. We're redefining AI with these market-leading innovations and delivering them with the flexibility, speed, and security required to support global enterprises. Our headless, highly scalable AI capabilities can adapt to any digital sales motion, which gives companies the power to tailor online buying experiences to their brand. Pros is the first digital selling platform to bring extensible AI models to market. Customers can now couple the power of our AI and omni-channel capabilities with their own science to deliver new digital selling innovations. HP Inc. and Siemens, both long-time Pros customers, are adopting our latest innovations in using our extensible AI algorithms. HP migrated to our SaaS solution last quarter, and we'll use our AI-powered price optimization and extensible capabilities to create more winning offers. Siemens is expanding their global smart CPQ solution to use our dynamic price algorithms extended with their own science to power digital selling. We're excited about partnering with Deluxe HP Siemens, and United, among others, on their digital selling journeys. Before I close, I'd like to share an update on our leadership team. I'm thrilled to welcome Katrina Clear to process her new chief marketing officer. Katrina is responsible for global marketing strategy with a focus on optimizing demand generation, deepening engagement, and increasing brand visibility. In closing, Thank you to our amazing global team for continuing to make PROS an incredible company. Thank you to our customers, partners, and shareholders for your ongoing support of PROS. With that, I'd like to turn the call over to Stefan to cover our financial performance and outlook.