PROS Holdings, Inc.

Greetings. Welcome to the PROS Holdings First Quarter 2022 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 cell phone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to Belinda Overdiput, Director of Investor Relations. Please 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 and guidance. Actual results could differ materially from such statements and our forecast. 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 with our strong start to 2022. We grew subscription revenue by 14% year-over-year and total revenue by 8% year-over-year. We saw strong performance in both B2B and travel. Our SaaS additions on the pros platform are resonating in the market, and our team is executing well, evident by the fact that we more than doubled our deal count year-over-year in the first quarter. Our increased confidence has also resulted in an improved revenue outlook for 2022. We believe we're benefiting from a tailwind in our market as businesses look to us to help manage inflationary pressures, increase market volatility, and the shift to digital channels. More than ever, businesses need the ability to respond to customer requests with the right offer at the right price at an ever-increasing speed due to these macro business trends. This is exactly the value proposition of the PROS platform. a single end-to-end solution that calculates and delivers personalized market relevant offers to buyers in any channel they choose to engage with. Recent McKinsey survey of B2B decision makers shows how much the pandemic has accelerated the need for businesses to embrace omni-channel selling. The results show that today's B2B buyers regularly engage with the sellers through 10 or more channels throughout the decision journey. up from just five in 2016. And 94% of respondents say that omnichannel sales model is as effective or more effective than the sales models they used before. We designed our platform to empower businesses to thrive in an ever-changing market. And we're continuing to bring new innovations to market to accelerate omnichannel selling. In Q1, we released expanded AI-powered scenario testing capabilities in our platform, which gives our customers the ability to test and analyze the effect of different market optimization strategies in parallel. Now it's easier than ever for our customers to evaluate models like those that optimize margin, revenue, or cost to dynamically drive the best outcome for their business across all their sales channels. Our continued innovation leadership led to some amazing wins in Q1. Great examples will hurry group, will hurry an international food and packaging distributor, will leverage our AI-powered CPQ and pricing capabilities to accelerate negotiations of their customer agreements while driving profitable revenue growth. In the manufacturing space, we also welcome Brunswick, a leading manufacturer of marine equipment, and ABCAM, a leading manufacturer in the life sciences space. Brunswick and ABCAM will use our platform to execute on price changes in real time so they can thrive in an ever-changing market environment while driving a better customer experience. In the chemicals and energy space, We continue to see strong demand as we help businesses remain agile in the face of cost volatility. In Q1, we welcomed several new customers in this space, including one of the top five oil majors in the world. In travel, we're pleased to see the positive trends of the recovery in the international markets. Global capacity is up over 68% year-over-year, while global passenger load factors are also up over 15% year-over-year. These two metrics indicate more planes are in the sky with more passengers on board than a year ago. The recovery of international demand has improved airline sentiment. Our conversations with airlines are focused on helping them power the revenue acceleration opportunity ahead. Our latest innovations are resonating in the market, and it's clear that the investments we continue to make during the pandemic are paying off. In Q1, we had a strong quarter of migrations within our travel business. As long-time PROS customers look to take advantage of our latest innovations in revenue management. One example is the Lufthansa Group, who chose to migrate and consolidate their revenue management solutions for all seven of their airlines on tour travel platform. This migration will give the Lufthansa Group the ability to optimize demand forecasts across their network of operations, driving superior results for the whole group. We're proud to have been a partner in innovation with Lufthansa for over 30 years. We look forward to continuing to partner with them on this next phase of their journey. We're also seeing airlines invest in our digital offer marketing technology to drive more demand through their digital channels. The intuitive user experience in relevant offers presented through our solution entices passengers as they shop for fares, pulling them into booking workflows and driving a higher conversion of sales. In Q1, we saw new customers such as Play Airlines and FlyPop adopt their digital offer marketing solutions to drive demand for their flights. Existing customers such as Avianca and Breeze, among others, also adopted our digital offer marketing solutions, expanding their partnerships with pros. I'm incredibly pleased to welcome all our new customers to pros. I'm also pleased to see our existing customer partnerships grow and expand as we continue to deliver on our mission of helping people and companies outperform. Before I close, I want to thank our incredible team around the world for their passion and dedication to our vision of optimizing every shopping and selling experience. 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.