PROS Holdings, Inc.

Greetings. Welcome to the Pearls Holdings second quarter 2025 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 call over to Belinda Overdeput, Senior Director of Investor Relations. Thank you, Belinda. may 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 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 Jeff Cotton, President and Chief Executive Officer, and Stephan 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 forecasts. For more information, please refer 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 hand the call over to Jeff.

Thank you, Belinda, and good afternoon, everyone. Thank you for joining us today. I'd like to start by expressing my gratitude to Andres and the entire PROS team for enabling a smooth leadership transition as I came on board as CEO. After digging into our business over the past couple of months, my excitement has only increased about the future of PROS. Having spent over two decades in enterprise IT services and software, I've seen firsthand how AI is transforming the future of work. And I believe that PROSE is at the forefront of this evolution with AI-powered solutions that enable businesses to outperform through intelligent commerce. There is momentum in our business and palpable opportunity to build on it. We delivered a strong second quarter exceeding the high end of our guidance ranges across all metrics and putting us in a position to raise our full-year outlook for both subscription revenue and subscription ARR. In Q2, we grew subscription revenue by 12%, total revenue by 8%, and improved adjusted EBITDA by 42% year over year. In a dynamic and complex macro environment where businesses are selective and strategic with every dollar spent, we are proud of our results in the quarter and our ability to help our customers navigate these uncertain times. Our impact continues to be recognized by the market. In Q2, we were named a leader by ISG in the 2025 CPQ Buyer's Guide, our fourth consecutive leadership designation from an industry analyst in just three quarters. This recognition from ISG, along with previous acknowledgements from Gartner, Forrester, and IDC, demonstrates our continued leadership in the CPQ space. Our strong value proposition is translating into continued momentum across B2B industries. where businesses are turning to pros to help them win. Winning in today's market means offering the right products and solutions together with the right pricing and incentives at the right time. The pros platform gives businesses what they need to optimize their winning formula. In Q2, new customers such as Linux, Louis Dreyfus, and RHI Magnesita, among others, selected Smart CPQ to bring winning offers to market. Additionally, new customers, including a global life sciences leader and a top U.S. auto parts distributor, plus expanded partnerships with Wholesome and Unidas, demonstrate how smart palm is empowering enterprises to take control of their commercial strategies and deliver superior buying experiences to their customers. In the airline industry, we're helping carriers build stronger customer loyalty and drive sustainable growth through intelligent offer optimization and marketing. Momentum in our airline business continued in Q2 with new customer wins such as Air Greenland and ValueJet, and expanding partnerships with carriers across the globe and domestically, including American Airlines. By adopting our digital offer marketing solutions, these carriers are empowered to transform inspiration into action, converting more business through compelling offers. Another example is Scoot, the low-cost subsidiary of Singapore Airlines, who expanded its partnership with PROS by upgrading to our RM Advantage and adding RTDP, which enables dynamic availability adjustments based on demand to support their growth strategy. This investment highlights their trust in PROS industry-leading forecasting and optimization capabilities to unlock new revenue opportunities and deliver winning offers across their network. Now I want to talk a bit about our priorities as an organization and where we are focused. We're continuing to lead with innovation, building the most complete and intelligent commercial platform to help businesses win. With the introduction of Pro's AI Agents unveiled at our recent Outperform conference, we're uniquely combining language models with our proprietary numerical models that we've perfected over decades, bringing specialized intelligence to agentic AI. Our agents are designed to drive goal-oriented execution across a wide range of use cases using deep domain expertise from sales to pricing to rebates and revenue management. Said in a simpler way, our agents are not just conversational or built to enhance user experience. They are designed to act as the most experienced members of your team with decades of knowledge on how to define commercial strategies and wins. Right now, our efforts with our new agents are in pilot phases and we'll be launching for customers to test them in Q3. They are a key to our long-term growth strategy by bringing the value of pros to life even faster. Pros' rich history and continued innovation in AI create a sustainable and expanding competitive advantage for us. Looking ahead, we'll expand our platform to power end-to-end commercial excellence, further strengthening our capabilities in areas such as rebates and incentives. We'll also enhance platform extensibility to further enable partner innovation, as well as go deeper and wider on AI agents. Over the past several quarters, the team has done great work strengthening our go-to-market function, which is evident in our improving sales cycle times, competitive win rates, and bookings linearity. With this solid foundation, we're now focused on amplifying these efforts in three key areas. First, we need to apply the same level of rigor that we've successfully used in late-stage pipeline management and now apply that rigor to the top of the funnel. Through more effective early-stage nurturing, we can further improve lead quality and conversion rates. Second, we're expanding our market reach through targeted campaigns focused on customer expansion and new logo acquisition in key verticals and product-specific opportunities like rebate management, building on early success from our analyst recognition campaigns. These focus areas are why organizationally we've elevated our leadership team to drive tighter alignment between marketing and sales. Finally, we must double down on true strategic platform partnerships, specifically where these partners can broaden the distribution of pros. This is an area where I see a huge opportunity and where I've had a lot of experience in the past. In fact, we're already making progress in this area, as earlier today we announced a new partnership with Commerce, formerly known as BigCommerce, to combine our enterprise-grade pricing and CPQ capabilities with their portfolio of e-commerce solutions. Together, we will equip B2B merchants with real-time dynamic pricing and streamlined product and service configuration so they can win more business with offers that build buyer confidence. Commerce and pros create the perfect complements to solve the evolving needs of enterprise sellers looking to drive superior buying experiences. We're at a generational inflection point as AI transforms the future of work. For companies like ours, this creates a rare and compelling opportunity. With a strong foundation, clear focus areas, and a differentiated platform, PROSE is well positioned to capture long-term value and lead in this next era of enterprise transformation. Before I close, I'd like to thank our global team for everything they do to deliver amazing value to our customers and make Pros a truly unique company. I'd also like to thank our customers, partners, and shareholders for their ongoing support of Pros. Now, I'll hand the call to Stephan to cover our financial performance and outlook.