PROS Holdings, Inc.

Greetings. Welcome to the Pros Holdings Third 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 call over to Belinda Overdeput, Director of Investor Relations.

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 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 proud to share we delivered a strong third quarter, exceeding our guidance ranges across all metrics. We grew subscription revenue by 16% year over year, total revenue by 10% year over year, and delivered $5.6 million in positive adjusted EBITDA, an improvement of $7.8 million year over year. Our results are a testament to our team's relentless focus on driving profitable growth to achieve our goal of being a Rule of 40 company by 2026. As the market increasingly embraces AI, Pro's long-term trajectory continues to strengthen. C-suite leaders across industries are encouraging their teams to infuse AI into their operations. And pros is a clear choice given our enterprise AI is proven to fuel profitable revenue growth. When it comes to enterprise AI, accuracy, trust, and speed are critical. And this is what sets pros apart. We ensure accuracy and trust by using an ensemble approach to combine multiple AI algorithms together. For example, we ensemble our price prediction algorithms with outlier detection and explainable AI algorithms to deliver the most optimal and transparent results possible. Our models are adaptive. They self-learn and recalibrate based on user interaction in real-time data signals to provide the most up-to-date predictions. We offer unparalleled solution performance with response times that are guaranteed within milliseconds for real-time solutions. Through greater accuracy, trust, and speed, PROS delivers the promise of AI today. Our mission is to help people and companies outperform. Our enterprise AI generates significant revenue, margin, and efficiency improvement for our customers. as shown in our published ROI study. Recently, we ran an analysis to see how these business outcomes translate into shareholder returns for our customers. We found that PROS publicly traded customers outperformed the Dow and S&P 500 by more than 15 percentage points between the beginning of 2022 and the end of Q3 2023. I'm proud that we're helping such amazing customers drive these incredible returns. I encourage you to check out this chart in our Q3 investor presentation. Our land and expense strategy is working, demonstrated by our accelerating subscription revenue growth significant improvements to profitability, and the pace at which we're continuing to land new customers and expand their use of our platform. In Q3, we continue to welcome new logos across our target industries. And now I'll share a few examples. Genesis Energy, a New Zealand-based electricity and gas supplier, selected the PROS platform to provide a seamless customer experience with a harmonized omnichannel strategy. Trivium Packaging, a leading global manufacturer of metal packaging, selected the PROS platform in Q3 to fuel profitable growth. Trivium will improve their responsiveness to shifting raw material costs with dynamic pricing and drive accelerated time to quote with CPQ. GetSmart and Goal Airlines selected the PROS platform to use our digital offer marketing solutions to increase online traffic and drive higher conversion of sales through digital channels. SKS Airways, a new Malaysian carrier planning to launch at the beginning of 2024, Selective Pros is a strategic partner in driving their growth strategy. SKS Airways will use Pros' revenue management platform to help them predict demand, scale their operations, and maximize revenue. Now I'm excited to share a few of the incredible expansions we saw with our customers in Q3. Ingredient, a leading global ingredient solution provider, began their journey with Pros to drive a digitally connected sales motion and optimize pricing. Since implementing our platform, Ingredient is driving more accurate pricing by leveraging real-time cost changes, resulting in faster time to quote and an improved customer experience. Ingredient has expanded margins using Pros AI Power Pricing to optimize product and customer mix. and even highlighted this on the recent earnings call. Ingredient CEO James Zally said on the call, our results demonstrate our ability to be responsive to shifting market dynamics and deliver continued profit growth. We're proud of Ingredient's success and pleased to share they expanded their use of the Pro's platform to a new region each of the last two quarters. Air New Zealand expanded their use of the PROS platform with the adoption of dynamic offers solution. With PROS dynamic offers, Air New Zealand will modernize the retailing strategy with our leading capabilities in airfare shopping and pricing, enabling them to design, distribute, and manage price fairs across direct, indirect, and digital sales channels. Turkish Airlines expanded their use of our platform with their adoption of our digital offer marketing solution. In their recent go-live of our latest generation of solutions for revenue management, real-time dynamic pricing, and group sales. Turkish Airlines has been a PROS customer since 2009, and it's been amazing to be part of their stunning breakthrough during this time. Turkish Airlines has more than doubled the number of destinations it flies to since the beginning of our partnership. And today, it flies to more countries than any other airline in the world. Our platform innovations enable the next generation of modern retailing for Turkish Airlines on a massive global scale. Real-time dynamic pricing is the key to fueling revenue growth, managing availability, and intelligently controlling each offer. With the PROS platform, Turkish Airlines can increase online traffic and drive higher conversion rates of optimized offers across their global passengers and group business. driving their growth strategy. In closing, I would like to thank our global team for making PROS an incredible company and delivering on our mission of helping people and companies outperform. Also, I would like to thank our customers, partners, and shareholders for their ongoing support of PROS. With that, I would like to turn the call over to Stefan to cover financial performance and outlook.