PROS Holdings, Inc.

greetings and welcome to the pros holding second 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 telephone keypad as a reminder this conference is being recorded i would not like to turn this conference over to belinda over to put director of investor relations thank you ma'am you may begin your presentation at this time

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. We delivered a strong second quarter, building on the momentum we had in Q1. We exceeded the high end of our guidance range across all metrics, grew subscription revenue by 14% year over year, and grew total revenue by 10% year over year. As we have previously said, the current macroeconomic dynamics are creating momentum for our business. In the first half of 2022, we more than doubled our deal count growth, booking more deals so far this year than we did in all of 2021. or solutions are resonating in the market as businesses look to offset cost pressures by implementing profit optimization strategies in driving efficiency through digitization. The geopolitical and economic climate of the world today has put extreme pressure on supply chains. Businesses are facing labor shortages, supply shortages, and rising material costs. For businesses to thrive, they need visibility into all factors impacting their bottom line and actionable insights that drive business forward quickly. Our library of market-leading AI algorithms powering the PROS platform can forecast demand, optimize cost, price, revenue, and product mix based on real-time data feeds. Our platform automates decision-making processes and delivers market relevant offers across sales channels, driving efficiency and fueling profitable revenue growth. Based on the value assessment we've completed with our solutions, PROS customers reported an average 67% efficiency gain, 200 to 500 basis point margin improvement, and more than 6% revenue uplift. In the automotive space, we're helping companies of all sizes and at all parts of the supply chain fuel profitable revenue growth. In Q2, we welcome Borg Automotive, one of Europe's leading automotive remanufacturers, and Aurora Auto Parts, a leading distributor of heavy duty equipment to pros as new customers. Both facing greater complexity in pricing amidst supply chain fluidity and inflationary pressure, these companies adopted pros so they can drive profitable growth in real time with our price optimization and management solutions. In the B2B services space, Securitas, a leading provider of security services, selected the PROS platform to power agreement management with our pricing and CPQ solutions. With PROS, Securitas will arm their sales team with optimized pricing and a streamlined quote-to-agreement process to drive higher win rates and greater efficiencies in contract negotiations. In their cargo space, We're empowering carriers to better serve their customers through digital shopping and selling experiences while driving profitable revenue growth. Digitization has made buyers increasingly more educated with the ability to compare shipping rates online. This coupled with increased volatility has driven carriers to embrace dynamic pricing and engage with customers directly through superior digital buying experiences. I'm pleased to share that in Q2 Qatar Airways, the world's largest international air cargo carrier, expanded their partnership with PROS by choosing to adopt their CPQ and price optimization solutions. With Qatar, PROS now has three of the top six international air cargo carriers on our platform. In travel, we're helping airlines of any size and at any phase of their journey drive profitable revenue growth. Whether it's a new airline coming to market, like our latest customer, Celeste Airlines, Or a carrier that serves more countries than any airline in the world, like Turkish Airlines, who chose to migrate to the PROS cloud. PROS solutions empower airlines to capitalize on the revenue acceleration opportunity in front of them. International travel recovery continues to improve and drive the overall industry recovery. with several international routes outperforming 2019 levels, and many others reaching pre-pandemic levels. Despite inflation and high jet fuel prices, industry data demonstrates a high willingness to travel abroad. While in the past, fears of a recession have negatively impacted the travel industry, IATA is now projecting the industry will reach 93% of 2019 revenues by the end of 2022, a significant upgrade from their previous December 2021 projection of 79%. Additionally, the fast pace of the recovery has cut industry losses. IATA now expects the industry-wide profitability to be within reach in 2023. Giving us further confidence is the willingness to invest we're seeing from airlines as they look to deliver new, innovative buying experiences to their customers and accelerate revenue recovery. One example is All Nippon Airways, the largest airline in Japan. who expanded their partnership with Pros in Q2 when they chose to adopt their latest cloud solution for group sales optimization. With Pros Group Sales Optimizer, ANA will centralize the management of group bookings, pricing, contracts, and policies to streamline the complexity of the group selling process, empower self-serve e-commerce for travel agents and end customers. Another example is our most recent go-live with Emirates Airlines. Emirates is now using PROS to power shopping and pricing through all its channels. Emirates is the perfect example of an airline innovating with PROS to build more direct engagement with their customers while reducing costs. We're proud to have partnered with Emirates on their launch of their new premium economy service offering. as part of this Go Live and look forward to continuing to help them drive revenue growth. Before I close, I want to share some amazing stories to demonstrate how our solutions are fueling profitable revenue growth for customers. One of Pro's customers, a Fortune 500 high-tech distributor, has reported 15-year record-level margins. with approximately 100 basis points of improvement generated in the last year. Their words to us were, this is the first time in our company's recorded history that we've had inflationary pressures and actually been able to increase our margins. And that's because of pros. This customer is using our expanded AI powered scenario testing capabilities to optimize margins, revenue, and costs in parallel, a feature I discussed in my prepared remarks last quarter. We're so proud to see our innovations drive record success for this customer and many more. Additionally, Qatar Airways, who I mentioned chose to adopt our air cargo solution in Q2, has been a PROS customer for over 22 years. In June, Qatar announced they achieved record-level profits for their 25 years of operations, citing growth in passenger and cargo networks, as well as accurate forecasting of global recovery that enabled strong cost control as key drivers for these results. We're extremely proud of our partnership with Qatar and look forward to helping them drive even more success in this phase of their journey. It's no coincidence that Pro's customers are outperforming the market because we're their best kept secret for profitable growth. I want to thank our team for their strong execution and their passion for supporting each other and our customers to drive success. Our team embodies our core values of ownership, innovation, and care. And I'm so proud of the environment we've created at PROS together. A core focus of ours is creating an environment where every employee can grow and reach their full potential. And last quarter, we received another incredible recognition of our culture by being certified as the most loved workplace backed by Best Practice Institute. Finally, I want to also thank our customers. partners, and shareholders for their continued support of PROS. With that, I'd like to turn the call over to Stefan to cover financial performance and outlook.