PROS Holdings, Inc.

Greetings. Welcome to PROSE Holdings second quarter 2023 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 now like to turn the conference over to Belinda Overdupa, Director of Investor Relations. Please go ahead.

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 in 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 proud to share we delivered an outstanding second quarter, exceeding our guidance ranges across all metrics. We grew subscription revenue by 14% year-over-year, total revenue by 11% year-over-year, and delivered positive adjusted EBITDA. As a result of our Q2 outperformance, we will once again raise our revenue growth and profitability outlook for the full year, which Stefan will cover in his prepared remarks. Our strong first half performance demonstrates the critical need for a platform in the market. There's no question that the last couple of years have elevated the importance of doing business in real time. In today's markets, everything is in a constant state of rapid change. Cost, currencies, supply chains, prices, demand patterns. And in response, businesses must constantly change what they sell, how they sell, and how they price. Manual business processes and disconnected digital tools diminish productivity, deteriorating both the customer experience and the employee experience. Further, B2B purchasing continues to follow the trends we've seen in B2C. B2B buyers expect experiences that are self-service, personalized, transparent, and accurate throughout all touch points. To meet expectations of buyers today and to consistently outperform in their markets, businesses need to embrace digitization, automation, and AI. In fact, industry analysts believe AI software will grow 50% faster than the broader software market over the next two years. And we're already seeing growing interest in AI in our business. Additionally, our land, realize, and expand sales strategy has made it easier than ever for businesses to adopt our platform. And we're seeing incredible results as our team continues to execute against this strategy. We're landing new customers with greater velocity. Across the B2B industries we serve, sales cycles with new customers in 2023 are 30% faster year over year. We're also driving rapid time to value, leading to rapid expansions. A great example is the expansion we had with a specialized North American industrial distributor in Q2. This customer joined PROS as a new customer in Q1, selecting the PROS platform to automate price management across their enterprise. The customer went live with the land solution in just over a month. realized value, then immediately expanded to adopt our latest 10-4 AI price optimization capabilities. Now I'll share a few other examples of incredible businesses who adopted our AI-powered platform in Q2. Pods, a leading moving and storage solution provider, selected the PROS platform in Q2 to drive harmonized pricing across their sales channels. The PROS platform is key to POD's strategy to drive a digitally connected customer experience. Novalex, a manufacturer of packaging products, selected the PROS platform to fuel profitable growth and power a better customer experience by digitizing sales across their enterprise. Novalex will use our AI-powered pricing and CPQ capabilities to drive market-relevant real-time offers to their customers across North America. Marken, a division of UPS, expanded their use of the PROS platform in Q2 to power real-time pricing to their sales service portal and billing systems. With this expansion, Marken will drive an improved experience throughout the customer lifecycle. In Q2, we expanded the reach of our market-leading omnichannel CPQ capabilities with a new partnership with Adobe that combines Adobe's commerce offering with our CPQ product configuration capabilities. Going forward, Adobe's customers can now seamlessly use our best-in-class configurator solution to power personalized products and offers through their e-commerce channels. We also continue to innovate to deliver new predictive AI capabilities through our platform. Recently, we brought to market our capacity-aware price optimization AI, a neural network power AI model that determines the marginal opportunity costs associated with supply. Many industries struggle with the dual challenge of unpredictable demand patterns in diminishing supply when setting price strategy. Or capacity-aware price optimization utilizes order confirmation data, competitive intelligence data, shopping data, and inventory on hand in addition to other available market data signals to drive prices that will win. In Q2, Singapore Airlines Cargo selected the PROS platform to take advantage of our capacity-aware price optimization and AI and digitize their sales motion to fuel profitable growth. In the travel industry, airlines are looking to win more market share through fully digitizing their sales and customer experience, starting with how they inspire passengers to book travel. In Q2, new customers Condor In JSX, an existing PROS customer, Korean Airlines, among others, adopted our digital offer marketing solutions to drive higher conversion of sales. Airlines continued to lean into AI and automation to optimize revenue management. And our latest innovations in this space continue to position the PROS platform as the best-in-class revenue management solution. In Q2, Lufthansa expanded their use of the PROS platform by adopting the next generation of our AI-powered dynamic fair pricing, empowering them to drive more flexible fair options using an elasticity-based approach. Before I close, I'd like to share some incredible industry recognition of our platform innovations. In Q2, Forrester Research published their wave evaluation on CPQ, recognizing PROS as the leader in the category and stating that PROS is unmatched with its next generation of AI-powered price and cost optimization science. PROS is now the only independent software solution to be named the leader in CPQ by both Gartner and Forrester. I'd like to thank our global team for their relentless focus on our mission of helping people and companies outperform. Also, I'd like to thank our customers, partners, and shareholders for their ongoing support of PROS. With that, I'd like to turn the call over to Stefan to cover financial performance and outlook.