PROS Holdings, Inc.

and welcome to the Proles Holdings fourth quarter and full year 2022 earnings conference call. At this time, all participants are in a listen-only mode. The 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 over to Belinda Overdeput, Director of Investor Relations. You may now 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. Before I hand the call over, I'd like to notify our investors and analysts about our upcoming Analyst Day, which will take place the afternoon of Tuesday, May 23, during the 2023 Pros Outperform User Conference at the Hyatt Regency in Denver, Colorado. The event will be webcasted live for those unable to attend in person. Investors and analysts who wish to attend the full conference will receive a discount on the conference registration. For more details on Outperform 2023 or to register, visit pros.com slash outperform. 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. As I reflect on 2022, I'm proud of how our team executed to deliver a strong year. We grew subscription revenue by 15% and total revenue by 10% year over year. The increased momentum we saw in 2022 is supported by the fact that we more than doubled our deal count for the full year compared to 2021. Our value proposition has never been more relevant, which is fueling demand for our platform. Businesses today are leaning into automation and AI to drive greater efficiency and fuel profitable revenue growth. In times of economic uncertainty, the question management teams are trying to answer is simple. How can we drive organic growth efficiently? The PROS platform helps answer that question. In today's rapidly evolving markets, speed is a competitive advantage. Businesses that get quotes out faster win. However, operating at speed is becoming increasingly challenging because of the number of product configurations, distinct sales channels, and negotiated customer prices. For businesses today, the only solution is to digitize sales and support an omnichannel sales model. Industry analysts predict that by 2026, 85% of B2B sales interactions between suppliers and buyers will occur in digital channels, up from 55% in 2021. The PROS platform is uniquely able to automate and digitally connect omni-channel sales experiences, driving higher productivity in sales and a better customer experience. We continue to be recognized for innovation leadership with 15 awards and accolades received in 2022. In Q4, PROS was recognized again as a leader in Gartner's 2022 Magic Quadrant for CPQ Solutions. With Gartner citing that ProSmart CPQ is ranked number one overall for our ability to support channel sales. Additionally, it was noted that PROS delivers more AI-driven guided selling capabilities than any other product evaluated. Together with our leadership position in the IDC marketscape, PROS continues to be the only platform with a leadership position in both price optimization and management in CPQ. Our leadership in the market continues to drive new customers to pros. In Q4, we welcomed unlimited technology and vector security, both leading providers of security solutions. With pros, unlimited technology and vector security can accelerate sales productivity with guided selling workflows and reduce, quote, turnaround time, fueling profitable growth. Industry analysts predict that by 2028, 85% of all companies with B2B go to market will employ AI to augment at least one of their primary sales processes, up from nearly 40% in 2021. AI is going to be core to the way companies execute, and they will be looking for technology that drives the best outcomes. In Q4, we announced the availability of our next generation of price optimization powered by ProGen4 AI, the first pricing solution in the market to use neural network technology. Neural network algorithms adapt in real time to ever-changing market factors and drive robust results even with imperfect data, which drives higher ROI results for customers. Signature Aviation, a B2B aviation services company, selected Prosync Q4 to take advantage of our latest Gen 4 AI advancements to fuel their profitable growth strategy. In travel, the disruption airlines have experienced over the last couple of years has increased their focus on extreme automation and full digitization of the customer experience. Or digital offer marketing and dynamic offer solutions are helping airlines entice customers with relevant offers and pull them into direct and digital channels, driving higher conversion rates through channels with lower cost of sales. Aegean Airlines, Greece's largest carrier, selected pros in Q4. and we'll use our dynamic offer solution to distribute offers to online channels. Philippine Airlines and Oman Air, among others, expanded their partnerships with pros with the adoption of our digital offer marketing solution. We are focused as always on value creation for our customers and you, our shareholders. We made organizational changes in early 2023 and are now projecting to generate free cash flow in positive adjusted EBITDA this year. We're also accelerating our timeline for long-term growth and profitability targets. Further fueling our profitable growth will be our focus on three key pillars of our strategy. The first is driving market adoption of the PROS platform with our land and expand sales motion. We're laser focused on landing customers with solutions that drive immediate value and then expanding quickly to drive more value over time. A great example of this is our expansion within the General Electric family in Q4. In Q3, we announced our win with GE Healthcare. And in Q4, we expanded into GE Power. The second pillar of our strategy is to establish a new software category of profit and revenue optimization software. Our innovation leadership is recognized by industry analysts across the software categories that we exist in today, whether it be revenue management, price optimization and management, or configure price quote. However, we bring so much more value to the market with the capabilities in our platform and or AI. We believe the value we deliver is reflected in a new category of software, profit and revenue optimization. This year we're focused on elevating our messaging and leading the market in innovation that drives profitable growth for businesses. The third pillar of our strategy is focused on customer experience in rapid time to value. I'm confident that no one else in our market can deliver the measurable ROI we deliver to our customers as fast as we deliver it. We'll continue to build implementation assets and drive platform innovation that allows our customers to activate even more use cases with rapid time to value. We entered this year well-positioned to fuel our profitable growth. We have the right people, strategy, and platform to capture the market opportunity in front of us. Before I close, I'd like to talk a little bit about our incredible team and culture. Our people-first culture is what makes Pro such a special place. I'm so proud of the environment we built that prioritizes personal growth and ensures every employee can reach their full potential. We continue to receive recognition of our culture, including recently by People Magazine in the 2022 Companies That Care, a list of the top 100 US companies that demonstrate outstanding care, respect, and concern for their employees. While we've had to make difficult decisions over the past several months, we know that the culture that we built is one that encourages current and past employees to care for and lean on each other. I'm thankful to all of our team members over the years for their contributions to PROS, and we're committed to supporting both current and former employees of PROS throughout their careers. I'd also 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 Stefan to cover financial performance and outlook.