This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk11: 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 Overdeput, Director of Investor Relations. Please go ahead.
spk00: 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 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. With that, I'll turn the call over to you, Andres.
spk09: Thank you, Belinda. Good afternoon, everyone, and thank you for joining us on today's call. As I reflect on 2021, I'm thankful to our team for what we've accomplished despite the disruptions of COVID on our business and our community. ARR increased 9% year-over-year and subscription revenue by 4% year-over-year. Our gross revenue retention rate for the year returned to pre-COVID levels and was greater than 93%. I'm proud to share that we generated over $33 million of free cash flow improvements year-over-year. I'm also pleased that the EveryMundo team joined the PROS family. They share the same passion for innovation and customer success as us. I'm confident that because of our passion for innovation, we have the best digital selling platform in the market. We've been continuously innovating for over 35 years to help our customers today, five years from now, and 10 years from now. In 2021, we continued our heritage of innovation with the launch of the PROS platform. I believe we deliver significantly more measurable ROI than anyone in our market. Value assessment we completed with participation from more than 100 customers showed, on average, 6% revenue improvement from the use of our platform. I also believe that we have the fastest time to value and we're getting faster. Our new prescriptive activation packages helped us drive an 18% improvement in time to value in 2021. In fact, industry analysts have also validated our market leadership position with 15 company awards and accolades in 2021, including leadership positions in G2 for pricing software, the Gartner Magic Quadrant for CPQ, and the IDC Marketscape for B2B price optimization and management. So proud of this recognition of our incredible innovations. In Q4, we welcome new customers adopting the PROS platform. Bbron Medical, a leading manufacturer of medical technology and pharmaceutical products, selected our smart price optimization and management solution. This solution equips Bbron to respond quickly to changing market dynamics, drive higher win rates, and improve revenue and profitability. A rapid time to value and proven record of customer success are key reasons why Bbron selected pros. Rockwell, a manufacturer of stone wool products, also selected pros in Q4. Rockwell will use our smart CPQ solution to streamline their selling process and quickly respond to customer quotes. Our ability to support direct and digital sales was one of the many reasons Rockwell chose pros. We're thrilled to welcome B. Brown and Rockwell, among others, to the PROS family and look forward to partnering with them. The PROS platform is also inspiring existing customers to migrate to the cloud. Clarion, one of PROS' first B2B customers and American standard of customers since 2012, chose to migrate to her smart price optimization and management solution in Q4. We're proud of our partnerships with Clarion and American Standard and look forward to continuing to drive long-term value for their businesses. As a result of the pandemic, businesses around the world are increasingly prioritizing digital initiatives that strengthen direct customer engagement and build loyalty. This is front of mind in the airline industry, where airlines are anticipating bookings through digital direct and Direct Connect NDC channels to grow by 12 percentage points in the next three years, while the bookings through offline GDS and other channels decline. Additionally, airlines' interest in offer personalization has nearly tripled between pre-COVID and the recovery phase. With PROS Dynamic Offers, PROS Digital Retail, and now Digital Offer Marketing Solution, PROS is extremely well positioned to help airlines deliver on these objectives. PROS Dynamic Offers empowers airlines to create, price, and distribute personalized fare, seat, and ancillary offers through any airline web, mobile, or direct connect NDC channels. Pro's digital retail takes the dynamic offer solution one step further by adding our internet booking engine and user interface, giving airlines full control over their customer experience from the offer creation to order management. For example, in Q4, existing customers like Air Europa and Gulf Air expanded their partnerships with us to fuel revenue growth through their digital channels. Requisition of every Mundo's digital offer marketing solution accelerates our vision to optimize every shopping and selling experience. PROS now provides brands greater control over their end-to-end customer journey with more meaningful interactions in the research and shopping phase. These solutions help brands drive more direct customer engagement through dynamic web pages, offer virtualization, and digital ad campaigns. In Q4, AirBaltic and Viewling, among others, selected these solutions to increase website traffic, improve user experience, and drive higher booking conversion rates. Before I transition to our 2022 strategy, I want to comment on our recent organizational change around the removal of the chief operating officer role. This flattened organizational structure will drive greater speed into our business. more consistent execution, and further empowers our teams to drive success. I'm confident that these changes will better position us for long-term growth, and I look forward to working more closely with our amazing team to extend our market leadership position. In 2022, we're continuing to invest in the three key pillars of our strategy. First is driving market adoption of the PROS platform. We're accelerating market adoption by increasing our sales, marketing, and delivery investments. We're going to be bolder in telling our story and sharing our customers' amazing success. Additionally, we're ramping up quota caring personnel and expanding our delivery teams to support our growth. Second, leveraging partnerships to accelerate our growth. We recently announced the expansion of our Microsoft partnership to accelerate mass adoption of the seamlessly integrated Microsoft Dynamics 365 in Pros platform. We're also leveraging our ecosystem of system integrators like EY to increase our global footprint and further capitalize on our growth opportunities. Our final strategic pillar is delivering exceptional value and an incredible experience to our customers. In 2021, our NPS scores reached an all-time high above the industry average, and our gross revenue retention rates significantly improved back to pre-COVID levels. We featured 43 customer speakers during our annual outperform conference. All these data points are a key testament to the strength of our customer partnerships and our passion for customer success. In 2022, we'll build on our team's incredible efforts last year. We're expanding our prescriptive delivery packages to allow our customers to activate more use cases with even faster time to value. We'll also continue to help our customers get best-in-class ROI and accelerate their expansion journeys with our platform. We entered this year well-positioned to accelerate our growth. We have the right people, strategy, and platform to capture this strong market opportunity in front of us. Side close, I'd like to thank our global team for their passion and dedication to driving customer success and broad market adoption of the PROS platform while making PROS a great place to work. Thank you to our customers, partners, and shareholders for your continued support of PROS. With that, I'd like to turn the call over to Stefan to cover financial performance and outlook.
spk05: Thanks, Andres, and good afternoon, everyone. I would like to first welcome EveryMundo to the PROS family. We are excited to have them as a part of our team and to add their innovative solutions to our platform. Before covering our results, I want to comment on the overall business. We were significantly impacted by COVID in 2020 and 2021. We pulled our annual guidance in 2020 but reinstated annual guidance in early 2021, and I'm happy to report that our results either landed within or beat the initial guidance ranges we provided towards the beginning of the year. Looking back, the impact of COVID lasted longer than we all thought as one variant followed another variant, I'm very proud of the work our team did to support our customers and deliver to our estimates. I'm also especially pleased with the improvements to our free cash flow, subscription gross margin, and gross revenue retention. Now moving to our results, which do include one month of EveryMundo. Subscription revenue in Q4 was $47 million, up 10% year over year, and $178 million for the full year, up 4% year over year, and exceeding guidance. Total revenue in Q4 was $65 million, up 7% year over year, and $251.4 million for the full year, and relatively flat year over year. Our gross revenue retention rate was above 93%, a significant improvement as compared to approximately 88% in 2020. As a reminder, we disclose gross revenue retention rates, not net revenue retention rates. Gross revenue retention does not include bookings from existing customers, which can mask real customer churn. Our revenue retention rates continue to demonstrate the value our customers see in our solutions. In Q4, our non-GAAP subscription gross margins improved sequentially again and were 75%, while our full-year non-GAAP subscription gross margins were 71%. We continue to see innovations within our cloud operations to drive greater efficiencies, resulting in margins that expanded throughout the year. I'm proud of our team for their efforts to drive these results, which also positions us well for 2022. We continue to make progress on adjusted EBITDA throughout the year and are pleased with our adjusted EBITDA performance this quarter. Our adjusted EBITDA loss was $6.4 million during the fourth quarter and $24.8 million for the full year, beating guidance. Our full-year adjusted EBITDA improved 10% year-over-year. Our loss per share was 16 cents per share, which also beat the guidance range. Our Q4 calculated billings increased 30% year-over-year and 15% for the trailing 12 months, which was in line with our expectations. Our total ARR in constant currency was $229.2 million at the end of the year and included $197.3 million of subscription ARR. Our subscription ARR is becoming the predominant component of our total ARR, as we expected, and we believe it is a good leading indicator of our booking momentum. We will be including this metric along with our total ARR disclosure going forward. Free cash flow burn for Q4 was $1.3 million, bringing our full year free cash flow burn to $20.2 million, a $33.1 million improvement over last year. The significant improvement over last year was driven by a combination of improved customer retention rates and operating efficiencies. In 2021, we also recovered all of the remaining customer payment deferrals extended in 2020 as a part of our COVID concessions. We exited the year with $227.6 million of cash and investments after the investment to acquire EveryMundo. We overachieved our year-end target of adding quota-carrying personnel, and including EveryMundo, we ended the year with 67. We expect to increase our quota-carrying personnel again in 2022 and believe we will be in the upper 70s by the end of the year, although we are expecting the total quota-carrying personnel figure to drop slightly in the first quarter. Before I cover guidance, I wanted to provide insights into what we're seeing in our business today. As I mentioned earlier, COVID has impacted our business for the last two years, and while COVID will likely still be a challenge for all of us in 2022, we are seeing signs that customers and prospects in the hardest-hit industries are considering investments. Additionally, we have flattened our go-to-market organization, which we believe will drive more consistent execution. Together, these two changes will enable us to improve our revenue growth as we progress through 2022. As a result, we are guiding to stronger ARR growth rates in 2022 from what we've seen in 2020 and 2021. So with that, here's our guidance for 2022 with the stated growth rates reflecting the midpoint of the ranges. total ARR of $246 to $250 million, a 9% increase over last year, and subscription ARR of $224 million to $228 million, which would represent a 16% increase over last year. Also, we expect subscription revenue to be in the range of $200 to $202 million, reflecting a 13% increase, and total revenue to be within the range of $267 to $270 million, which would be a 7% growth rate year over year. We are expecting adjusted EBITDA loss to be in the range of $25 to $28 million and free cash flow burn to be in the range of $21 to $25 million, essentially flat to slightly down year over year. We expect both metrics to gradually improve each quarter over the course of 2022. As Andres mentioned in his remarks, we are investing in our sales, marketing, and delivery teams to accelerate our growth, and we also expect a higher level of spend for all of our people. Our team is essential to our success. We must compete in the current market environment to ensure we keep our best and brightest focused on driving value for our customers while creating a place where everyone can reach their full potential. Turning to the first quarter of 2022, we expect subscription revenue to be in the range of $48 to $48.5 million, representing 13% year-over-year growth. We expect Q1 total revenue to be in the range of $65 to $66 million, representing 7% year-over-year growth. We expect Q1 adjusted EBITDA loss of between $11 and $12 million. And using an estimated non-GAAP tax rate of 22%, we anticipate Q1 non-GAAP loss per share of between 24 and 26 cents per share, based on an estimated 45.1 million shares outstanding. In closing, I would like to thank our amazing employees and customers for their continued passion and support. We also thank you for your support of PROS, and we look forward to speaking with you at our upcoming events. I will now turn the call back over to the operator for questions. Operator?
spk11: Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, as we poll for questions. Our first question comes from Tom Roderick with Stifel. Please proceed with your question.
spk07: Great. Thank you. Good afternoon. Thank you for taking my questions here. Andres, I'm going to ask you to take the first question here and, of course, feel free to chime in, Stefan, if you'd like to. But I would love just a little bit more detail relative to the sort of tale of two worlds as you saw it here in 2021 and what that means for The way you've constructed guidance for 2022, and of course what I'm talking about with the Tale of Two Worlds, is the airlines have certainly been hit with some headwinds. They've been tough. Maybe some signs of coming out of it, but certainly the variants more recently didn't help on that front. So when you construct the 16% growth guidance on subscription ARR, I would love to hear how you think about the relative positioning of growth for B2B versus airlines. To the extent that airlines may continue to be a headwind here for a little bit, how long do you see that occurring as you look at the business?
spk10: That's a great question, Tom. As you can expect, B2B is driving predominantly big growth as we head into this year. But we do expect travel to start to contribute more. But I would say, you know, predominantly big growth. will continue to be B2B. We still think on the travel industry, the expectation is they get to approximately 78% of 2019 numbers by the end of the year. So we are seeing signs of investment and encouraging signs, but we're not taking into our guidance, you know, travel coming back to the previous growth rates yet.
spk07: Fair enough. I think I would add,
spk05: Go ahead. Yep. I was just going to add, I think you'll see that building throughout the year. Tom, as you know, in the SAS model, the bookings that we'll have throughout the year will start to layer, and then we'll start to see that impacting our revenue growth rates as we go throughout the year. So we should be exiting with growth rates that are in excess of the annual numbers that we provided in our guidance.
spk07: Wonderful. And pivoting that question, focusing a little bit more on the B2B success, and you're talking about making some nice investments on the sales force to drive some of those successes. Perhaps you can dive in a little bit more on some of the sub-verticals, because we've all heard challenges in supply chain, and perhaps energy and chemicals have had some challenges. But listening to your conversation here, it seems pretty positive and optimistic relative to the challenges those industries face. Perhaps it's the longer-term trend line of B2B e-commerce that's lifting that underneath it. But, yeah, I'd love to hear some of the catalysts underpinning the decisions that your customers are making and, you know, is digital transformation really, in fact, sort of outweighing some of the challenges some of the industrials and cyclical industries have faced with supply chain issues?
spk10: Yeah, no, that's a great question, Tom. I think, look, I think today in this market, if you think about inflation, supply chain disruption, the ability to drive dynamic price changes quickly – are crucial, are a must-have. I would say, look, where historically a B2B company would change price maybe twice a year, I mean, in this day and age, they can survive. I mean, their margins would be greatly impacted or they may not win business. So I think the ability to be able to get to value quickly and be able to deploy technology like our PROS platform is crucial. And we're seeing that demand across pretty much our target B2B industries, whether it be chemical distribution, manufacturing, medical, the need for speed. And I did talk in my prepared remarks, I think the value that we generated, I talked about in my prepared remarks around the 6% revenue uplift that we measured in over 100 of our customers. I mean, to have that tangible ROI or leadership position both in CPQ and in pricing, you know, I think there's been a lot of innovation that we've made. to make our solutions drive faster time to value and to be able to measure the value of returns that we generate. I think we're in a very strong position to capitalize on this opportunity.
spk07: Wonderful. One last really quick one, if you don't mind. I noted in the prior press release you gave just about a month ago that EveryMundo was expected to contribute maybe $14 million, $15 million in ARR for the year that just passed. And if I think about the multiple that you kind of paid relative to that ARR, seemingly right around where your own stock is trading at, so perhaps that suggests they're growing somewhat similar. As you constructed the guidance for the ARR for next year, Should we expect that every mundo is contributing any more than the typical, you know, than the average growth rate or kind of what we're seeing for the total projected ARR growth rate is loosely organic, if that makes sense?
spk05: Yeah, so, Tom, the ARR growth rate for EveryMundo when we acquired them was a little north of 20%, and we're expecting them to kind of keep that same momentum as a part of PROS as well.
spk07: Very helpful. I'll jump back in queue. Thank you.
spk10: Thank you, Tom.
spk11: Our next question comes from Scott Berg with Needham & Company. Please proceed with your question.
spk08: Hi Andres and Stephan. Thanks for taking my questions and congrats on finishing the year well. We talked about leveraging partnerships more and really wanted to kind of dive in on the Microsoft partnership. They've been a partner of yours for several years now, so it didn't surprise me as something completely new that you're going to expand that relationship with them. But what should we expect from this expanded relationship? It sounds like it's a little bit more focused on go-to-market maybe than what we've seen before, but I wanted to understand if that's correct or if there's another angle that we should be looking at.
spk10: Yes, Scott. As you know, look, we've always said that Microsoft has been a very strong partner of pros, and I think this next chapter of our partnership is really formalizing more go-to-market alignment. I think there's been a lot of great innovation that we've driven jointly to the market, but now we both see the opportunity to really capitalize on the market opportunity by driving joint go-to-market alignment. both from a marketing, from a sales, and from a continuing to drive joint innovations in our platform. So I would tell you it's a formal alignment with goals around go-to-market results. And I would tell you we have commitment top-to-top to drive success on the partnership, and we're excited about being part of the men we're working on. We're collaborating. with Microsoft.
spk08: Got it. Very helpful.
spk06: And then I wanted to ask a little bit more about your sales rep increases that were noted this year. I think the number was 67 to end last year, going to the high 70s. My Minnesota math tells me that the 15% to 20% growth rate depends on where you land. Yeah.
spk08: that sounds like a pretty aggressive number relative to where your ARR growth rate is, but it's probably more about how you expect your industries to rebound in 23 versus 22. Is that the way we should think about kind of the growth rate of the company starting next year, getting back to that kind of upper teens to 20% level?
spk10: Yeah, the way to look at it is we see continued rebounding. If you think about it, a lot of the quota care and personnel headcount hires that we'll make this year, especially in the back half, will be really for next year. and we see the opportunities for growth both on the B2B side, but we also see travel starting to come back, especially for the back half of the year in contributing back, you know. So definitely that's our expectation.
spk08: Great. That's all I have at the moment. Congrats again. Thank you.
spk10: Thank you. Thank you.
spk11: Our next question comes from Jackson Ader with JP Morgan. Please proceed with your question.
spk02: Great. Good evening, guys. Thanks for taking our questions. Stefan, I just want to nail down kind of how you're feeling about the environment maybe today versus when you gave us like a preliminary look into 22 at that investor event in in November, is your stance at least on the travel business a little bit more conservative than it was then?
spk05: No, I don't think it's more conservative. I think we did go through a lot of changes from the investor event to today. I think Omicron became a more serious threat than what we were really thinking at the time. But there's continuing good news even throughout that variant. that the travel industry is starting to show more and more signs of recovering. You know, just recently there's been some news around Australia opening up again, which is fairly significant. Some other areas in the Far East are looking to open up as well. And, you know, as you know, that's a big part of our business. are airlines and carriers that are in that part of the world. So seeing that happen is really good news for us. So it gives us some additional confidence that there's opportunities coming down the line for that. So as Andres commented earlier, we're not expecting travel to come all the way back. But we are expecting our travel business to contribute more so to our revenue results in 2022 than the travel business was able to do in 20 and 21.
spk02: Gotcha.
spk05: Okay.
spk02: And then just a really quick follow-up just on that point on kind of travel coming back. Andres, you mentioned throughout 2020 and 21 just needing to – you know, be a good partner, renegotiate some of the deals and the contracts with your travel customers. And I think part of that deal was also that you'd hopefully be able to capture more of the upside in travel mileage recovery. So I'm just curious, you know, what type of speed or mileage recovery is factored into this new outlook for 22?
spk10: Yeah, so right now we're not factoring a huge recovery on the travel side from the renegotiated contracts. It would be too early for us to predict that based on the current environment, I would tell you. Right now, as I said, we're at 55% of 2019 numbers, and it would be too premature to factor that in.
spk05: I think to complement what Andres is saying, a lot of what we're seeing in terms of opportunities on the travel side are new opportunities, not exactly recovery of some of the concessions that were provided in 2020. It's really more around the new opportunities. Okay. All right. That makes sense. Thank you.
spk10: Thank you.
spk11: Our next question comes from Nihal Chakshi with Northland Capital Markets. Please proceed with your question.
spk12: Yeah, thank you. You may have already covered this, but can you give us the breakdown between B2B and travel for calendar 21 on a revenue and billing basis?
spk05: So, Neil, yeah, we have historically not provided that split, mainly because there are a number of factors that go into it. You may recall when we had our investor day at Outperform, You know, we had United as one of our customers on the panel. And, you know, you might think of United as a travel industry. You probably heard when they were talking, it's a B2B solution that they have purchased and they're putting into play. And so for all those reasons, we really haven't broken it out. But what we can tell you is that, you know, our travel industry, Our travel business has actually been a drag on the growth rate for our ARR for all the reasons we were talking about with Jackson earlier. So we're thinking that is going to change in 2022 and that travel will actually be a part of the growth. And a lot of that's going to be stemming from some new opportunities that we're seeing in on things like our retail optimizer and our – yeah, I'm drawing a blank now. Digital retail and dynamic offers. Thank you. We see some opportunities on those product lines as well as some of our RM solutions.
spk12: Okay, great. Thanks. Another question is that – So the 16% subscription ARR growth is an as-is, i.e., that includes every Mundo acquisition. You just said that the 15 million ARR in calendar 21 growing 20%. So if I exclude that, I think you're talking about 7% organic subscription ARR growth. And I believe at the outperform event, you were talking about a mid-teen subscription ARR growth for calendar 22, which was prior to the every Mundo acquisition. So, A, is that correct? And, B, if so, what has changed then to change that perspective?
spk05: Yeah, no, I think that's a good question. I'm glad you asked that question because nothing has changed from what we were saying back at Outperform. Our ARR metrics, both on the subscription side and on the total side, are consistent with one another. In other words, the base that we're talking about off of 2021 includes every Mundo, as well as the base that we end on 2022 with includes EveryMundo. So you can actually think about the growth rate for both subscription and total being more or less organic.
spk12: I got it. So when you were at Outperform talking about your ARR, you were already factoring in the EveryMundo acquisition that was basically almost closed.
spk05: No, no, no. The EveryMundo acquisition is included in the 2021 number. for ARR as much as it's included in the ARR metric for 2022. So basically, we're not getting a benefit of adding in an EveryMundo business into our base number, if that makes sense.
spk12: Okay. Yep. I believe I understand. Okay.
spk11: Thank you.
spk10: Thank you.
spk11: Our next question comes from Chad Bennett with Craig Hallam. Please proceed with your question.
spk03: Great. Thanks for taking my questions. So just maybe one for Stefan first. Just as we look at gross margin, specifically subscription gross margin, you know, you saw a steady uptick throughout the year this year. How should we think about that heading into 22 and the ability to show some more leverage there?
spk05: Yeah, so, Chad, I think there's going to be continued leverage in that metric as we go forward. Maybe not as much as we saw in 2021, but I do expect us to continue to see, you know, growth in that number. And certainly from an annual perspective, I think you'll see a much better metric on that line than what we saw in 2021. I would add, there's been –
spk10: One thing I will add on that, there's been a lot of innovation that we've done around our platform to drive efficiencies and ease of adoption, and you're seeing those benefits show up on the gross margin line.
spk03: Got it. Thank you. And then, you know, I assume, you know, based on ARR growth, expected to be ahead of subscription growth, which is what we want to see. Stephan, and I know you don't guide to billings or RPO, but should we expect that, You know, billings and RPO growth, you know, accelerates ahead of, you know, subscription growth, you know, throughout the year and kind of normal seasonality for all those metrics. Obviously, last year was a little bit odd, but just kind of normal seasonality to bookings throughout the year.
spk05: Yeah, it should be less volatile than what we saw in 2021, to your point. I think as you think about calculated billing for next year, you're probably looking at a very similar growth rate, call it mid-teens, is what you're seeing on subscription ARR. So you can think of it along those lines. And I think, to your point, it will be a number that grows as we progress through the year.
spk03: Okay, got it. And then, Andre, just real quick on the B2B business, you know, obviously the growth there was masked by the travel business last year. But how do you think about the growth rate for that business this year? And, you know, should we think about continued acceleration in that growth rate of that business this year? And then I'll hop off. Thanks.
spk10: Yeah, no, that's a great question, Chad. Based on the AR guide that we're providing, it implies that we're expecting that business to continue to accelerate from a growth rate. And I would tell you that based on On what we're seeing, we feel very, very good about that. I would say last year, one of the things I'd like to comment on is that we did see a lot of net new logo wins, you know, 33% growth on net new logo wins in 70% of our bookings being net new, which is good to see. That's what inspires our confidence as we look at this year.
spk03: That's great, Collin. Thank you much.
spk10: Yeah.
spk11: Our next question comes from Jason Salino with KeyBank Capital Markets. Please proceed with your question.
spk04: Hi. This is actually Devin on for Jason today. Thanks for picking up questions. Maybe just the first one I have is on EveryMundo. Seems like a really good addition to PROS. And as I was doing some research, looking at the websites, It seems like they have a really strong foothold within airlines, you know, including two of the big three in the U.S. So just wondering, you know, what are, you know, pros plans moving forward kind of to leverage this robust airlines customer base that they have?
spk10: Yeah, Devin, great question. We're very excited about EveryMundo and their digital offer marketing platform. For two reasons. As you mentioned, one, they have an incredible customer list. We have only 40% overlap. But more importantly, the access to shopping data. We always talked about optimizing every shopping and selling motion, and having access to shopping data and helping brands market offers and drive demand through their digital channels is very strategic. We also have done quite a bit of work on our data science team around leveraging shopping data. And we've seen that shopping data can improve demand forecast by 20 to 40%. So we see opportunities in the data they have helping improve, you know, our demand forecasting capabilities. We also see opportunities beyond the travel industry. and giving B2B companies the opportunity to start driving digital offer marketing for their solutions to drive demand to their digital channels, both on a B2B and a B2B2C model. So pretty excited about the acquisition, an incredible team, and looking forward to continuing to co-innovate with them.
spk04: Great. Yeah, that's definitely exciting. And then just maybe one quick one. I know United Airlines, definitely a good reference win for B2B. Just curious how that pipeline might be shaping up for your travel customers particularly that are also looking to implement sort of same similar B2B offerings.
spk10: I would tell you that we see good opportunities in that front. We continue to see them, and we feel pretty good about it just moving forward.
spk04: Great. Thanks for the call.
spk06: Yep.
spk11: Ladies and gentlemen, we have reached the end of the question and answer session. And I would like to turn the call back to Belinda Overdeput for closing remarks.
spk00: Thank you for listening to today's call. We look forward to speaking with you at conferences and events this quarter. We will be attending the Morgan Stanley Technology, Media, and Telecom Conference on March 8th. If you have any questions following today's call, please contact us at iratprose.com. Thank you and goodbye.
Disclaimer