PROS Holdings, Inc.

Welcome to PROS Holdings Third 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 call is being recorded. I would now like to turn the conference over to Belinda Overdupa, Director of Investor Relations. Thank you. You may 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. We delivered another strong quarter. We grew our subscription revenue by 17%, total revenue by 12%, and delivered strong profitability improvements. Despite a challenging macro environment, our team continues to execute well in dry market adoption of the PROS platform, at least doubling our deal count every quarter this year. Companies are turning to PROS to help them drive profitable growth in the face of increased market volatility and the shift to digital selling. Buyers today, whether B2B or B2C, expect to be able to engage with sellers through digital channels while still blending in various human touchpoints. Businesses need to deliver the right offer at a market-relevant price in real time across any channel the customer chooses to engage in. I believe the PROS platform is the only solution in the market with the breadth of capabilities businesses need to win in the digital era. It's been just over a year since we officially launched the PROS platform. Our highly differentiated platform has contributed to our success this year, and we believe our platform strategy will continue to fuel our growth long-term through three key areas, successful lands, many expansion paths, in extensible capabilities. First, successful lands or platform of modularized capabilities enable us to easily land new customers and deliver rapid time to value. I believe no one else in our market comes close to delivering the significant value we deliver. Just look at the value assessment of over 130 customers we publish on our website that shows, on average, customers generate 8% revenue uplift, 200 to 500 basis points of margin improvement, and 67% efficiency gain. In Q3, ABV, a leading manufacturer of electrical equipment, and GE Healthcare, a subsidiary of General Electric, selected our platform to drive profitable growth with our price optimization and management capabilities. ABB&G are just two examples from Q3 of how pros can land at multinational conglomerate with a modularized offering to drive immediate value. Another example is VM Distribution, a French distributor of construction materials. who selected our platform to power price management in sales automation for their suppliers and end customers. Veeam was looking for an end-to-end solution that could scale with their business and integrate seamlessly with Microsoft Dynamics 365. Landing with pros pricing and CPQ capabilities, Veeam can drive higher win rates, margin improvements, and efficiency gains. To accelerate our land strategy, we're continuing to innovate to drive even faster time to value in an amazing customer experience. We recently released new price optimization and management activation packages for B2B customers designed to deliver high-value prescriptive workflows to power profitable growth in under 30 days. Similarly, in travel, we launch new activation packages for our essential solution, designed to land new airline customers and get them live with the most advanced AI in the industry in 8 to 10 weeks. Any airline, regardless of size or complexity, can adopt our solution to drive profitable growth. Second, we fuel our growth with our platform by having many expansion paths. Customers can easily expand to adopt new modules or capabilities. They can add new divisions or geographies into their solution, and they can expand usage so our solution grows as their business grows. Two expansion examples among many we saw in Q3 were Cathay Pacific Airways and Oman Air. Cathay Pacific Airways, the flag carrier of Hong Kong, expanded their partnership with PROS by choosing to migrate to our SaaS platform. Cathay Pacific will fuel their revenue recovery with PROS' latest innovations in revenue management. Oman Air, the national carrier of Oman, expanded from our RM Essential solution to RM Advantage, enabling their journey to our market-leading continuous dynamic pricing capabilities. Third, our platform provides customers and partners with the ability to extend our capabilities to bring new innovations to market. In Q3, we extended our digital offer marketing solutions with the launch of the EveryMundo Marketplace, an application store that connects third-party developers building e-commerce applications on the EveryMundo platform to enterprise customers. The Every Mundo Marketplace is the foundation for an ecosystem of partners like Front 10 to generate even more value for customers and for business, where customers can access over 100 products on the marketplace built to help them drive more wins. We also launched our new developer portal, buildwithpros.com, to support rich, omni-channel commerce experiences. BuildWithPros.com provides our customers and partners a library of Pros APIs, empowering them to integrate with and embed Pros data, insights, and services within their enterprise applications, accelerating time to market while providing a richer customer experience. Leroy Merlin, a French home improvement retailer, is one example of a customer extending PROS platform services into their ecosystem. Using embedded PROS APIs for pricing and quote configuration, Leroy Merlin provides their online customers with a seamless custom order configuration process on their website. We have significantly extended our leadership position over the last several years. or SAS Native AI solutions process over 2 trillion transactions per year. That's more than 12 times the volume of transactions that Visa does annually. Our blue chip roster of Fortune 1000 customers come from a wide range of diverse industries, including airlines, technology, food, and energy, among many others. and they all rely on the Pro's platform to drive profitable growth. The volume and diversity of the data available to our algorithms is what gives our customers AI-based outcomes that no other competitor can match. Just as we're driving profitable growth for our customers, we're focused on driving our own profitable growth. We're being intentional about where we invest. We recently made structural adjustments to accelerate key growth initiatives and improve profitability. Stefan will cover more on the impact of this reprioritization in his remarks. Before I close, I'd like to thank our incredible global team for their passion and dedication to PROS. I'm so proud of everything we've accomplished so far this year and look forward to delivering another strong quarter to wrap up 2022. I'd like to thank our shareholders, partners, and customers for their ongoing support of PROS. With that, I'd like to turn the call over to Stephan to cover financial performance and outlook.