PROS Holdings, Inc.

greetings welcome to the pros holdings fourth quarter 2024 earnings conference call at this time all participants are in a listen-only mode a question and answer session will follow the phone 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 over to senior director of investment 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. Belinda Tatey- As a reminder, during the call, we will discuss non gap metrics reconciliations between each non gap measure and the most directly comparable gap 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.

Andres Aguilar- Thank you Belinda good afternoon everyone, and thank you for joining us on today's call. I'm incredibly proud of our team's achievement in 2024, highlighted by an outstanding second half performance that was capped off by a strong fourth quarter. In Q4, we delivered 14% subscription revenue growth and 10% total revenue growth, bringing us to 14% subscription revenue growth and 9% total revenue growth for the year. Additionally, we delivered approximately $30 million in adjusted EBITDA for the year, an impressive 400% improvement compared to 2023. We also expanded our free cash flow margin by four percentage points year over year, achieving an 8% free cash flow margin for the year. Our second half results reflect our team's strong execution and our continued momentum as a market leader, setting a solid foundation for continued growth in 2025 and beyond. Our AI-driven approach, our relentless focus on innovation, and our continued execution toward land, realize, and expand strategy are driving our success. We've always embraced the power of AI. In 2024, we continue to elevate our approach by making AI an even stronger pillar of our strategy, embedding it deeper into our internal operations and driving transformative impact across the business. From accelerating product development to automating key aspects of the commercial process, to streamlining project delivery through automating data onboarding and test case generation. These initiatives drove tangible results. We achieved a record high non-GAAP subscription gross margin of 81% in Q4, while processing 4.4 trillion transactions in our platform in 2024. a 29% increase in volume year over year. Additionally, for the third consecutive year, we achieved double-digit improvements in customer time to value. When it comes to our platform, we continue to set the pace of innovation in our markets, releasing over 560 new features across our platform in 2024. These include new solutions such as smart rebate management, agentic AI innovation such as dynamic ancillary pricing, and embedded generative AI capabilities across our platform such as the recent launch of our FairFinder Genie in Q4. FairFinder Genie brings to life the next generation travel agent. Using generative AI in real-time fares, this solution offers a tailored flight search experience, resulting in itineraries that match customer preferences. Modern airline retailing needs innovation like OARS to continue to inspire travelers and drive higher conversion of sales. Our innovation leadership continues to be recognized by major industry analysts. I'm proud to share the process once again been named the leader in the latest Gartner Magic Quadrant for configured price quote applications, making one of the most significant upward moves in achieving our highest leadership ranking in the evaluation to date. This success highlights our deep and broad platform capabilities, along with our expanding market presence. PROS was also recently named the leader in the IDC market scape for worldwide configure price quote applications. Recognized for our AI driven innovations, including our advanced pricing capabilities, in seamless integration with key ecosystem partners. PROS also earned IDC's 2024 CX CPQ Customer Satisfaction Award. This award is the result of a global survey of 2,500 organizations evaluating vendors across approximately 40 customer satisfaction metrics. PROS ranked among the highest for customer satisfaction in the CPQ application market, with recognition for ease of implementation and user experience. PROS has now earned a leader ranking from every key industry analyst evaluation specific to our solutions. Our success is further evident by the amazing new customers who selected pros in Q4. We continue to see strong new customer wins across our target industries, including Brady Plus, HBK, and Werner Electric, among many others. Brady Plus, a national distributor of food service, packaging, and sanitation supplies, selected the PROS platform to drive winning offers across the diverse industries they serve and fuel revenue growth. HBK, a global leader in testing and measurement technology, selected the PROS platform to optimize pricing and drive a better customer experience. Werner Electric, a leader in electrical supply distribution, also chose the PROS platform to streamline their pricing strategy and fuel profitable growth. We also continue to win new logos in the travel space, further expanding our leadership as a trusted partner for over 170 airlines around the world. which together represent more than 52% of the global passenger volumes. Fastjet, a South African hybrid carrier, selected Pros in Q4 to enhance brand visibility and drive higher conversion of bookings through Pros offer marketing. Meanwhile, multi-decade customers, Air Canada and Lufthansa continued to deepen their innovation with pros. Air Canada chose to adopt dynamic offers to power continuous pricing across meta search engine distribution channels, gaining an advantage on the price performance curve for the heavy traffic driven by these channels. Lufthansa Group chose to adopt our dynamic ancillary pricing solution and expand shopping and pricing. These wins reinforced Pro's position as a trusted innovation partner, delivering the most advanced AI-powered solution to drive measurable revenue growth at scale. Holcomb expanded its partnership with Pro's by adopting smart rebate management. Holcim will optimize and automate rebate program management with end-to-end visibility. This solution will enhance Holcim's rebate program to plan powerful incentives to drive growth and deliver a better customer experience through seamless alignment on incentives and achievement. In 2025, we're focused on building upon the three strategic pillars that have driven our success. First, our land realize and expand strategy will remain central to how we continue to capture the incredible market opportunity in front of us. Second, we will continue to work closely with our partner ecosystem to accelerate our joint growth strategy. And third, we're doubling down on AI as a transformative force to be the model AI native company, deeply embedding it into our platform and operations to drive innovation, efficiency, and deliver unmatched value to the market. We have the best team, the best solutions, and amazing customers who are driving immense value with our platform. We're in a very strong position and I look forward to a successful 2025. In closing, I want to thank our entire team for their incredible dedication and commitment to PROS, our customers and our communities. I'd also like to thank our partners and shareholders for their continued support of PROS. I'll now turn the call over to Stefan to cover financial performance and outlook.