PROS Holdings, Inc.

Greetings. Welcome to the PROS Holdings Second 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 Overdeput, 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. 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 forecasts. In particular, there remains significant uncertainty around the duration and impact of COVID-19 given the increase in cases of the Delta variant. 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, and thank you, everyone, for joining us on today's call. I'm pleased to share that we executed strongly across all of our metrics last quarter. Our performance is a testament to our incredible team and the value our solutions provide. We achieved a major milestone with the recent launch of our next-generation B2B SaaS editions on the Pros platform. This launch demonstrates our continuous innovation leadership. I want to start by taking us back to when we launched our cloud-first initiative in 2015. Our cloud transition was not just about changing our financial model. It was about creating the next generation of our solutions, our processes, in how we deliver to accelerate market adoption. As a result, our subscription revenue grew over 40% annually between 2016 and 2019. Now with our platform in the launch of our B2B SaaS editions, we're making our solutions accessible to businesses of all sizes. Our new SaaS editions are available as composable pricing, selling, and e-commerce paths, spanning basic to very advanced use cases. Our prescriptive implementation packages ensure quick adoption of digital selling capabilities in a matter of weeks, enabling our customers to continually evolve their strategy to win in their markets. This launch is part of the company-wide initiative to deliver an incredible customer experience at every step of their journey by fully embracing a digital self-serve mindset. We've made it easier than ever for customers to discover the capabilities of our platform, compare packages by capabilities and price, and get rapid time to value from our solutions. The PROS platform enables businesses to drive a harmonized and interconnected sales experience that meets buyer's expectation of speed, transparency, personalization, and consistency across every channel. Our omni-channel selling capabilities are resonating in the market. Last quarter, we welcomed Eneco as a new customer and are proud to share that they are already live. Eneco is a Netherlands-based producer and supplier of sustainable energy, serving millions of customers across Europe. Eneco has embarked on a digital transformation journey to improve customer experience across all touchpoints and segments of their business. They selected our platform to enable their vision. NACoR is already using our smart CPQ solutions to power B2C selling and have plans to expand with price optimization across B2C and B2B digital and traditional channels. We also welcome Lafarge Holcomb as a new PROS customer, one of the largest suppliers of construction materials globally. Lafarge Holcomb selected our platform to put AI at the center of their go-to-market strategy. It will leverage our AI-powered price guidance and real-time capabilities to optimize their pricing strategy in an increasingly dynamic and competitive market, allowing them to drive profitable revenue growth. Now I'll talk a little bit about what we're seeing in the airline space. North America continues to see positive momentum in the travel recovery, with several U.S. carriers reporting domestic leisure air travel has reached or even exceeded 2019 levels. While we're seeing travel in other geographies start to improve, the recent spread of the Delta variant is slowing down progress in regions like Asia-Pacific and Europe. While uncertainty in the timing of global recovery remains, where travel is recovering, airlines are reinvesting in digital transformation. And PROS platform for travel is top of mind. Pleased to share that last quarter we welcomed another North American carrier to the PROS family. Hawaiian Airlines selected ProsRM Advantage to leverage our advanced demand forecasting and fare optimization capabilities to provide their customers a superior buying experience while fueling revenue growth and recovery. Our win at Hawaiian Airlines is proof that even in times of unprecedented change, revenue management is more important than ever as the distribution landscape evolves and airlines look to power more digital self-serve experiences. where advanced AI adapts to new data patterns quickly, even if they're dramatically different from historical data patterns, to produce winning offers in a constantly changing environment. Even where no historical data is present, like in the case of startup airlines Breeze Airways, where AI generates incredible value by using self-learning algorithms that auto-calibrate based on real-time data. I'm proud to share that last quarter, Breeze Airways went live with RM Essentials in less than five months. Breeze is already leveraging our solution to execute on their growth strategy. Huge congratulations to Breeze on this incredible milestone. We're proud to have them as a customer. I'm also thrilled to welcome Ineco, Lafarge Welcome, and Hawaiian Airlines, among others, as new customers. We look forward to partnering with them on their digital selling journeys. At PROSE, innovation is at the core of our DNA. And before I close, I'd like to share an update on how we're innovating on the future of work. Our strategy is to leverage a hybrid model. where we take the best of both in-person and virtual work to create a new environment that prioritizes productivity over location. Additionally, instead of an allotted amount of personal time off, we've empowered our U.S. employees to take time they need away from work at their discretion, while delivering to our customers and business goals with our trusted time off program. We believe that trust and transparency are key to fostering employee engagement and driving our culture of innovation forward. Our continued focus on creating an environment where every employee can grow and reach their full potential is what will continue to attract the best talent in the world to PROS. In closing, thank you to our 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 financial performance and outlook.