PROS Holdings, Inc.

greetings and welcome to the pros holding third 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 a conference please press star zero on your telephone keypad as a reminder this conference is being recorded i would now like to turn a conference call over to belinda over to put director 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 in 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 in our forecast. In particular, there remains 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. Before I hand the call over, I'd like to remind our investors and analysts about our upcoming virtual investor fireside chat taking place on November 17th from 1.30 p.m. to 3 p.m. Central Time during the 2021 PROS Outperform Conference. With that, I'll turn the call over to you, Andres.

Thank you, Belinda. Good afternoon, everyone, and thank you for joining us. We ended the quarter with significant outperformance on our guidance ranges for profitability and cash flow and deliver revenue results in line with our expected ranges. We did see impact from the Delta variant in our Q3 results and our Q4 outlook. Stefan will expand on this later. Our strategies to accelerate market adoption of the PROS platform. deliver an incredible experience, and drive significant value for our customers. Despite the challenges we face because of COVID-19, our team continues to execute well against our strategy. We welcome new customers across industries and from new market segments to pros during the quarter. We continue to drive incredible value for our customers, evident by our expanding partnerships and best-in-class gross revenue retention rate. We received industry recognition of our leadership in both CPQ and price optimization and management. When I look at all of this and the progress of the recovery, I couldn't be more excited for what is to come. In travel, we're starting to see international restrictions ease, and some carriers are seeing significant increases in passenger demand as a result. For example, when the announcement was made that the Europe to U.S. travel ban would be lifted in November, carriers saw an immediate 140% increase in ticket sales in a single week for European travelers. This demonstrates the pent-up demand for travel, both leisure and business, and energizes us for the pace of recovery heading into 2022 as more borders open. In Q3, we welcomed two new low-cost carriers to the PROS family, AirTransact and Scoot. Historically, this market segment didn't have access to the best-of-breed AI-powered revenue management solutions. We designed our PROS RM Essentials Edition on the PROS platform to enable teams of any size to adopt their industry-leading AI and grow with PROS over time. With ProsRM Essentials, customers like CareTransact and Scoot can forecast demand and dynamically price to maximize revenue. Now moving to B2B. In the healthcare space, we're seeing demand for solutions as companies look to digitize their selling motions. We welcome Corian, a provider of long-term care services. and Radiometer Medical, a manufacturer of diagnostic devices to the PROS family as new customers. We're also seeing momentum in transportation and logistics, where companies are looking to PROS to enable them to deliver a frictionless sales experience as demand continues to rise. This year, air cargo demand is expected to increase approximately 20% year over year. In Q3, Emirates SkyCargo adopted our B2B platform to empower their customers with a self-service buying experience to drive a higher conversion of sales using our omni-channel quoting capabilities and capacity-aware price guidance. Similarly, Markham, a division of UPS Healthcare Logistics that is essential in the delivery of vaccines globally, also adopted our B2B platform to power digital selling across our enterprise. Our latest innovations are also inspiring existing customers to expand their partnerships with Pros. In Q3T, Connectivity, a Pros customer of eight years, chose to migrate to our cloud platform which allowed them to expand adoption across their business. TE Connectivity is a leading manufacturer of electronic connectors and sensors that powers vehicles, factories, and homes across the globe. With hundreds of billions of products manufactured annually, TE Connectivity is relying on the scale, speed, and precision of pros, price optimization, and management capabilities to drive winning offers. Honeywell also expanded adoption of our price optimization and management solution. Like many businesses today, Honeywell is experiencing the impact of rising commodity prices and the risk of inflation. To effectively manage volatility and continue to produce winning offers, Honeywell name-processed their global pricing solution vendor and is actively rolling out our solution to all their strategic business units. Sheila Jordan, Honeywell's Chief Digital Technology Officer, will be joining me in my keynote at Outperform to share more on their success with BROS. Now I'm excited to share that we've been named a leader in the 2021 Gartner Magic Quadrant for Configure Price and Quote application suites. When we acquired our CPQ technology, we acknowledged that we were coming from behind. We set a bold strategy to become the leader in this space. This acknowledgement from Gartner recognizes our passion for innovation to drive customer success. Our flexibility to support omnichannel selling, the combination of pricing and selling capabilities in a single platform, the performance, usability, and scalability of our platform were all cited as key strengths. We also have the honor of once again being named the leader in the 2021 IDC MarketScape assessment of worldwide B2B price optimization and management applications. IDC emphasized these views in transparency within our solutions as a key differentiator. The core part of our strategy has been making our AI algorithms accessible, explainable, and extensible. which allows companies of all sizes to adopt their market-leading AI-powered platform. As an engineer at heart, I'm incredibly proud of the market recognition we're receiving for our innovations. And I would like to express my deep gratitude to our amazing product and engineering teams. With these most current designations, we're the only platform with a leadership position in both the CPQ and price optimization and management markets. In addition to our product awards, I'm thrilled to share that PROS has been certified by Great Places to work for the second year in a row. This year's designation extends the company's original certification to all eligible countries. recognizing our inclusive people-first culture on a global scale. This award is based entirely on what current employees have to say about working at PROS, which is what makes this award so special to me. Finally, in September, we announced Rob Reiner's intention to retire from PROS. As Chief Technology Officer, Rob has been key in driving our culture of innovation forward. Rob joined PROS in 2016 to lead our pivotal transition to the cloud. With his leadership, we transform more travel and B2B solutions into the most comprehensive and innovative SaaS offerings in their markets. I'd like to thank Rob for all his contributions to PROS and wish him the best in his retirement. Succeeding Rob A.J. Damani has been promoted to the role of Executive Vice President of Engineering, and Sunil John has been promoted to the role of Chief Product Officer. A.J. and Sunil each have over 15 years of experience with PROS and have been a huge part of our success. I look forward to working closely with them in continuing to accelerate our innovation leadership. In closing, I'm proud of how our team is executing to drive adoption in the market, deliver industry-leading innovations through our platform, and create a culture that empowers every employee to reach their full potential. Thank you to our global team for making PROS an amazing 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 in Outlook.