PROS Holdings, Inc.

Greetings. Welcome to the PROS Holdings second quarter 2024 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 Overduput, Senior 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 are also available on our website 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 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 solid second quarter, exceeding the high end of our guidance ranges across all metrics. We grew subscription revenue by 14% and total revenue by 8% while achieving significant profitability milestones. Year to date, we've delivered a 554% improvement in adjusted EBITDA and a 112% improvement in free cash flow year over year. with both metrics yielding positive first half results despite seasonally high expenses. In Q2, we also achieved our long-term goal of 80% non-GAAP subscription gross margin. I'm extremely proud of our team for building the market-leading profit and revenue optimization platform, which drives immense value for our customers, powering 4.1 trillion transactions a year while delivering expanded subscription gross margins. Now, in the second half, we're being cautious with respect to our travel business. Typically, the second half is seasonally strong for airline bookings, and that certainly was the case in 2023. Despite enjoying strong passenger demand, airlines continue to face operational cost and supply chain challenges. These challenges impact deal approval processes and lengthen sales cycles. As a result, we're assuming our travel bookings will be down year over year, impacting our outlook for 2024, which Stefan will cover in more detail. We remain fully committed to achieving our long-term goal of becoming a Rule of 40 company. We've made considerable progress and our confidence in achieving our long-term goal is strong. Here's what fuels our conviction. First, the value proposition of the PROS platform is more relevant than ever, and we see increasingly favorable competitive dynamics, both driving continued strong deal volumes and win rates. Our clear value proposition is why more customers are prioritizing PROS as a top initiative supported by their boards as a means for driving revenue growth and margin improvement, fueling strong expansion activity. Second, we continue to invest in innovation to drive faster activation of our market leading platform and accelerate time to value bolstering our land, realize and expand strategy. I will share a few examples from Q2 that highlight these points starting with new customer wins. A top three global medical devices company selected the PROS platform in Q2 to activate smart CPQ and smart price optimization. With goals to accelerate sales and drive increased win rates, the company chose Pros as their strategic partner to help them deliver on their growth objectives. The initial regional land is the beginning of a partnership that can span over 100 countries around the globe. Dyneda, a leading first-party data solution platform, selected the Pros platform to activate Smart CPQ, empowering their global sales team to accelerate time to quote with winning offers. Dineta chose Pros for the depth and breadth of her platform to support their direct sales in future expansion of their e-commerce channel. Now onto expansions. A few quarters ago, I shared Ingredients' continued success with Pros. highlighting multiple regional expansions of our platform. We're proud to announce that as of Q2, Ingredient has decided to expand the PROS platform globally, underscoring the value they drive with our solution. We're also expanding the PROS platform across BFF's global operations, As the world's largest chemical producer, BSF uses our platform to drive pricing and sales excellence in the face of inflation and supply chain volatility, making PROS a strategic priority for global deployment. Hertz expanded their use of the PROS platform by activating capacity-aware price optimization across all North America locations. This solution uses patent-pending technology powered by neural network AI to assess the opportunity cost of diminishing supply against demand in real-time. This allows Hertz to set real-time prices based on fleet capacity and fluctuating demand, enabling them to win more business and drive a better customer experience. Philippine Airlines, a PROS customer of over 20 years, expanded their use of the PROS platform by choosing to activate Group Sales Optimizer. With GSO, Philippine Airlines will power a digital sales motion for group travel across channels, driving increased conversion with a frictionless end-to-end customer experience. Innovation has always been central to our growth strategy and core to who we are. We released a new generative AI data transformation solution to power seamless data integration between third-party systems and the PROS platform, making our AI innovations even easier and faster to activate. This is just one of the many AI innovations we showcase at a record-breaking outperform conference in May, which had its largest in-person turnout ever. The event features 60 customer speakers who share remarkable success stories achieved with pros, highlighting how these innovations are driving significant business outcomes for their organizations. Finally, Todd McNabb, our Chief Revenue Officer, has unified our B2B and travel go-to-market teams. We're building a centralized revenue engine to drive a unified go-to-market across all phases of the customer journey, from demand generation to customer success. This change will drive further productivity, rigor, and scale to strengthen the flywheel that is our land, realize, and expand strategy. I would like to thank our incredible global team for their passion and dedication to pros, our customers, and our communities. I would also like to thank our customers, partners, and shareholders for their ongoing support of pros. With that, I will turn the call over to Stefan to cover financial performance and outlook.