Thanks, everyone, for joining us. My name is Scott Berg. I lead our enterprise software and SaaS research here at Needham. And thanks, like I said, for joining our nineteenth annual Technology, Media, and Consumer Conference. With us today, we have PROS Holdings, a company I've been covering for more than a couple of years now. So, with us today, we have the CFO of the company, Stefan Schulz, and we have Director of Investor Relations, Belinda Overdeput. Thank you both for joining us today. I guess to get started off, Belinda, how about an overview of the company for those less familiar with PROS? Yeah, sure. So we're PROS. We offer a SaaS platform to our customers that is powered by AI, and our solutions focus on problem areas that solve end-to-end pricing to sales problems, everything from revenue management to dynamic pricing, which is very hot right now, to configure price quote, or CPQ, solutions. So anything price optimization, revenue optimization, sales optimization. We primarily serve B2B and B2C industries. We've got decades of experience building AI and machine learning algorithms to solve these problems, and so AI is not a marketing word for us. It truly is the product that we sell, that powers all of these workflows for our customers. I'm excited to get more into it today and answer any questions that you guys have. All right, let's move to kind of a topical item. You have your annual customer conference next week in Orlando. Yep. You are gonna host a small analyst session on Wednesday. Is there anything to preview or to note, maybe, you know, specific that's going on that you'd like to, you know, get investors, I guess, excited about before? Yes. So we do have our annual user conference next week. It's Monday to Wednesday in Orlando, Florida. It's called Outperform. The best thing about our conference is it's very customer focused. We let our customers talk more than we talk, because they do a great job telling the incredible stories of our platform and how our innovations help. We have a session for investors and analysts at 8 A.M. Eastern Time on Wednesday the 22nd, and that'll be a customer panel. We'll actually have customers that investors can interact with and ask questions, and a management panel consisting of Stefan, our CEO Andres, our Chief AI Strategist Dr. Michael Wu, who's probably about the hottest ticket in town at this point, so getting him for that panel is one of my greatest accomplishments in 2024, and, our chief product officer. So it'll be Q&A style, getting to what's happening in the business, getting to some of the innovations that we're doing from an AI perspective. And, yeah, we'll look forward to it, and it'll be virtually webcast from our website if anyone cannot attend in person. Which includes me, unfortunately. Yeah. Yeah. But I will be watching the webcast. Yeah. All right, we're three minutes into this, and we're already gonna get off my queue of questions, just 'cause I came up with one that's come up a lot recently, is I think if you look over the last 18 months, demand for AI functionality from companies in general has been a hot area, as we all know, right? Mm-hmm. Whether folks want to use it in their sales organizations or customer service organizations or whatever that may look like. Has that interest in AI, you know, or that new interest, I should say, in AI, been a positive impact or tailwind to your business? 'Cause like you said, you've always been in this field, this isn't new, but has it opened the eyes of maybe some new customers to what you all, you know, can offer them? Yeah, no, no doubt. It absolutely has, and you know, you look at our conference that we had last year. You know, Belinda just promoted the one that we're gonna be doing next week, but last year, we actually had some training classes on what AI was, and it was, you know, it was a room buster. In other words, there were more people in the room than we could seat. A tremendous amount of interest and, you know, desire to learn more about AI and how it can help businesses. You know, Belinda and I were talking about, you know, one of the common themes that we hear from our customers is their need for operational excellence. They are starting to understand and realize that they can't get to true operational excellence without utilizing some form of AI, some way to get access to information that, you know, the human mind can't see immediately or to understand immediately, but that artificial intelligence is actually running behind the scenes and making that happen, and then giving recommendations at the speed at which they need them to in order to make their business more successful. So it's all around that operational excellence mindset that's driving a lot of this, and an acknowledgement that it's hard to get to that without AI. Mm-hmm. Okay. I guess within the product platform, we're gonna move towards kinda the industry and the platform a little bit. You know, that intelligence, I've always thought, has been really required in an environment where you have pricing moving at a very rapid pace. Your platform is split up into, you know, kinda two main areas: travel segment, which is the, you know, start and founding of the company, and now towards B2B pricing over the last, you know, 20-plus years. But a big driver of how your products work is movement in commodity prices. Mm-hmm Lots of different commodities out there, but commodity prices have moved in a much more, we'll call it volatile kind of framework the last couple of years, especially with all the, geopolitical items and some of the inflation concerns that we have had out there. Has that been an incremental drive of your business? 'Cause my guess is, customers have found it even more difficult to try to price their own products- Mm-hmm ... in this environment. Yeah, I would say, Scott, customers that were in the commodity, you know, that were heavily dependent upon commodities already knew that. I don't know that we've picked up demand so much, meaningful demand, at least from companies that have a large dependence on commodities. I think the increase we have seen is companies that weren't historically distributors or, you know, companies that work with commodity-type, products, they're actually now seeing how supply chains can have an impact on their business, or how foreign currency rates can have an impact on their business, or in some cases, you know, a more volatile price environment, maybe somewhat driven by commodities, but maybe just because of what's going on in the market. Their ability to change, a kind of a normal manufacturing business that may not have been as sensitive 2, 3, 4 years ago is more sensitive today because of just how fast the world changes. They could get away with changing prices once a year or once, you know, or twice a year. They now are realizing that's not the case anymore. They can be outside looking in in a matter of weeks, if not months, if they're not able to respond quicker. Yeah. Airline travel side of the business, it was really impacted during the pandemic. Airline travel didn't go to zero, but it was pretty close to zero there for a period of time. What's that recovery been like over the last, now, you know, four years? It's not a straight line. You know, I still get questions from investors on, "Hey, U.S. travel's been effectively back for maybe not three years, but two to two and a half years. Why has your business not been able to recover in that segment, in that same linear fashion as, as maybe the U.S.? No, it's a great question, and you're right. Investments by airlines really came to a halt, not just in 2020, but in you know the couple of years that you know came after that. I would say the airline industry would've been impacted far more than any other industry by COVID. It was to your point, they went from you know doing extremely well in 2019 to literally having their you know their business completely stop. And so a lot of... That's impacted a lot in the way they think. That's impacted a lot in the way they wanna conduct business. So coming out of the pandemic, and to your point, as airlines started to recover, they all of a sudden found themselves in a situation where they had more work than they had people to solve that work. Because they had to lay off people during the pandemic, they had to restructure their operations, and then as the recovery happened, quite honestly, a little faster than I think any of us really imagined, and the amount of travel that people wanted to do, airlines really weren't equipped to handle it. And so their first and primary focus was around, how do we support our current operations? The idea and notion about investing in more technology or more, you know, future capability or optimizing capability wasn't quite number one on the list. It started coming in, and we started to see some of that benefit late last year. You know, Andres commented in the prepared remarks, we're starting to see travel come back, meaning they now have capacity to take on some of these investments, to do some of the things they've always been wanting to do. They just simply couldn't because of, you know, COVID, or they couldn't because they didn't have the capacity. They're starting to have that capacity now. But I will say it's a very different environment than what it was back in 2019. You know, the airlines back in 2019 were optimizing for growth. They were optimizing for, you know, where they felt like their business could go. Today, they're much more focused on solving today. They're more focused on buying solutions that fit today, and then expanding down the line. It fits very nicely with our Land, Realize, and Expand strategy. It's fortunate that that's worked out that way. But the size of transaction has come down. The length of sales cycle, from what we saw in pre-pandemic to what we see now, is a bit longer. The amount of scrutiny that airlines put towards their deals is greater. So it's a different environment that we're selling into, but fortunately, a lot of the things that airlines were looking to solve, we were able to start building capabilities towards. We've announced a lot of those new things around, you know, continuous pricing or willingness to pay or, you know, ancillary pricing cap-- dynamic ancillary pricing capabilities. All of those things were a product of the work that we've been doing during the last, you know, 5 years or so, and most of that during the pandemic when, you know, we knew that was a product they needed. So it's interesting to hear about the shifting priorities over the last couple of years, and it's probably not a surprise, 'cause it's a different environment today. But I remember speaking with Andres, it had to have been probably 2018 or 2019, so shortly before that, the airline industry is, at least for the last, what, 30, 40, 50 years, been dominated by fare seats on planes, right? It's a very structured schedule. There's on Delta, it's 4 economy fare classes. There's a couple in first, there's a couple in comfort. Very structured there, right? But it doesn't allow the companies to have a truly dynamic kind of pricing environment. When one door opens at $200 a fare, the next one opens at, you know, maybe $220, but you can't go in between. Right. It's not very dynamic. Right. One of the big trends in the space was to try to move to a more dynamic environment. With the pandemic disrupting that, does that kind of viewpoint come back to have a more dynamic pricing model over time? And I think it's an important question, because it can drive a really interesting upgrade cycle to not just your existing customers, but customers you don't have. Yeah. I would say certainly. I think the interest in dynamic pricing has only grown since the pandemic. Airlines are very focused on... especially if you think about the way they're operating right now, the capacity is still limited, but demand is extremely strong. So maximizing revenue for every single seat on that plane, every passenger on that plane, is hugely important until they can get more planes back in the sky, and then it'll still be important then, but it's even more important right now. And so dynamic pricing and continuous pricing is one way they do that. So we've actually created an innovation that solves for that, that allows them, it's called continuous pricing. You can combine it with a willingness to pay pricing, where you can actually price fares on a spectrum between fare classes t o try to better capture that demand for willingness to pay. That allows the airlines to still operate within the structure. They have to file fares today by fare class, but give them more flex, flexibility in how they present those prices on a spectrum, and we're seeing a lot more interest in these types of solutions. There's a lot of industry focus in this area, and if you zoom out, it's the focus on total offer optimization. So airlines wanna make sure every passenger is getting the full experience is optimized, so not just the seat and how we're able to dynamically price that to capture willingness to pay, but also for the ancillaries and everything that goes along with it. Because you don't wanna lose business because you had a customer that was weighing to pay, willing to pay $200, but not willing to pay $250. You can capture some of that demand on that spectrum, and then also try to capture anything along with it from an ancillary perspective. So it's definitely resonating. It's a huge part of what we see as kind of the next upsell and expansion back into the base. So moving to the B2B side of the business, speaking about Outperform next week, I've been to plenty of them, obviously. If I spoke to a customer on your B2B side, which I've had a chance to speak to a lot of them, especially a newer customer, the typical feedback always is, "How does that black box do a better job of pricing my products that they've never seen before, versus my pricing analyst that I've been employing for 20 years, that knows my business like the back of their hand? Yep. With this AI trend, has that actually kind of soothed those expectations or that viewpoint over the last year and a half, making it maybe even easier or more willing, you know, for some of these customers to buy these solutions? I would say there's a couple points to that. First, yes, I think there is more of a willingness to assess AI as part of the solution to driving operational excellence. We're seeing that in the deals that are coming through our pipe, and AI being a focus and a requirement in those deals. I'd also say that we have not taken our foot off the pedal when it comes to making our AI truly glass box. One of our innovation principles is that we wanna deliver as much transparency in how our AI is presented in our solution as possible, and so when we put out a new algorithm, part of what goes out with it is all of the analytics and charts and reporting that help a user understand what the AI is doing. Because our AI is real AI, it truly self-learns and runs on it, on its own. You don't need to interact with it. You can set it and leave it there if you want to, and it'll continue to improve and get better and drive recommendations, which is the real value of PROS. But having a way for users to interact and understand what's happening in the data helps with adoption, and adoption is ultimately what drives the ROI, and so we put a lot of focus on the glass box approach to our solution, and you can see it if you ever get a chance to see a demo, which I do. Shamelessly plugging myself, I can show you how easy it is to understand what the AI is doing, and I think that's a huge differentiator for PROS in the market. I think one thing to add to that, you know, we're huge fans of AI. Not just because it's cool, not because that's what the hot term is, but we, you know, we obviously have benefited from it for many, many years, and we've actually opened our platform to not just leverage our AI, but to leverage customers' AI. So we're more than happy to have customers understand, to Belinda's point, what our algorithms are driving and what, you know, what's causing the different impact to occur based on different feeds that they're putting into the solution. So if they move lever A versus lever B, they can see the impact it's having, because, to Belinda's point, we're building a glass box, so you can get a view into that. But we're also open to customers bringing their AI and ideas they have about how they can improve into our platform, and so, in some sense, we're, you know, we're kind of AI junkies in that regard, or purists, in that we feel like AI can be a benefit to all companies, and, you know, I think we all can learn from it, and we can expand by not just leveraging ours, but theirs as well. Following up on my customer black box comment, it's amazing how every active customer I've spoken with says the black box, or now glass box, always does a better job. Mm-hmm Of predicting pricing- Oh, yeah ... than the pricing analyst. So, they just gotta get over that chasm sometimes. It's basically like having all of the sales knowledge from every successful sales rep in your hands at the time that you're selling something next, and I think that's the thing that people need to get over the hurdle and understand, and to your point, once they do, they realize how powerful it is. Historically, on the B2B side, I've seen most of your customers, or at least the ones I've had a chance to speak with, have been more dominated by, manufacturing-type customers- Mm-hmm ... especially ones that might deal with commodities- Mm-hmm ... or some dynamic pricing elements to their business. Has that changed at all over the last couple years, kind of coming out of the pandemic, or do you see your customer opportunities still, you know, align up with that vision? I would say if I look at the B2B industries, you called out manufacturing, commodities, so, like chemicals, energy, food. We do a lot in food manufacturing and distribution. And then services like T&L, shipping services, business services, those are kind of the primary industries that we operate in. When I look at those industries, they all have something in common, and I hate to use this word, but it's a level of complexity, but I'll explain what I mean by complexity. So in the case of distribution, you're selling a set of SKUs to a bunch of customers. And for some distributors, some of the ones we work with that sell electrical components or parts and pieces, have billions of SKUs in their catalog. So while what they're selling and pricing isn't necessarily complex from a math perspective, the sheer volume of having to understand and calculate and support all of those price calculations for all those SKUs across the base is something you can't do in Excel. On the manufacturing side, typically, the product assembly and configuration is complex, and that can drive a change in price. And so understanding that, understanding the supply chain, that's what adds a lot of value in having a solution like PROS. And then in commodities, it's say, everyone's buying the same product in, for example, in oil and gas. There's no differentiation between one or another, but what's happening is how the market's moving and how fast prices are changing. And so in that case, the complexity is just the speed of change that's happening and what your competitors are doing and how the markets are moving, and so PROS helps with that. And so I would say the thing that's in common is some level of that, that makes pricing or selling and being nimble in today's market environment challenging, which necessitates the need for a solution like PROS. So we've seen success in med device manufacturing, as an example, T&L, which I called out as well. There's a lot of applicability. We've actually been successful in over 40 industries, but we choose to focus on the set that's in our investor deck. If you see our customer logo slide, the manufacturing, the distribution, the food, the chemicals. Because we have deep industry expertise, we speak that language, but that doesn't mean there isn't broader applicability across a large set of B2B industries. Maybe an example, might talk about Les Schwab. Yeah, Les Schwab is a great one. Yeah. We, as a new customer, we welcomed in Q1. If you're from the West Coast, you might be familiar. They're like the Discount Tire of California slash the other states in the West Coast- Oregon ... area. Oregon, Washington. Washington. Thank you. California and Colorado. Yep. They're an auto parts retailer. They sell tires, and they came to PROS looking to just be able to better dynamically price their products across their different locations. Location has a huge influence on price. What people are willing to pay in California is very different from what people may be willing to pay in Colorado. So not a complicated use case, but to be able to manage that across 500 retail stores is not easy to do in a nimble and fast manner, and so they come to PROS for help solving that problem. Mm-hmm. Interesting. I hadn't thought of a tire, you know, a repair shop that would actually use that. Yeah. But it's very similar to some of the distributors- Yep ... you know, that kinda use the platform today. Exactly. So it's not that far of a stretch at all. The company released its Gen IV pricing optimization product a year ago. I got to see a demo right as you were kinda releasing it- Mm-hmm ... when I was down at the, the headquarters, which was great. The two things that struck me about that, that I thought were different is, one, the ability to bring in external data sources in a very unique nature, which was helpful. Mm-hmm. My guess is the customers, but too, that kind of more glass box versus black box approach, 'cause you could see all the variables and how they were impacting price for the first time, which I thought was super important. How does that resonate with your customers, the ability to actually see what's going on versus before, just having to trust it? There's always a wow moment, I think, with customers, where either something they always believed to be true is shown to them in their data, or something they didn't fully understand, but makes sense now that they see it, is shown to them. So, for example, the solution, as Scott laid out, will tell customers, "Here is what is driving your price recommendations, and here's what customers value, and here's what customers devalue." So things like, they value, you know, how fast you can get it delivered, or they value how close they are to, for example, your store, or which regions you're in, or again, location maybe drives price. And so those different things will factor in how much a price should be maybe lifted up versus decreased. And we're not talking significant moves. We're talking, our algorithms are recommending small 5% or point 5 percentage points or less price improvements over time across the base. So really small, incremental moves that customers may not even necessarily feel right away, but overall add up to a ton of ROI. And so I think for customers, when they see it, it's really powerful because they understand, "Wow, I can get a lot of additional benefit, but I don't have to. It's not like I'm just increasing prices 10% across the board and potentially upsetting customers and putting myself at risk of churn. I'm identifying where I have opportunity to increase price, doing it in those areas, and making sure I'm driving the value and communicating the value along with those price increases." So it's, it's, it's a very helpful tool for them. Yeah, I think one of the things that makes Gen IV so cool is it can handle scenarios where you don't have a lot of data. Mm-hmm. Historically, we leveraged lots of data to help make recommendations, 'cause somewhere in a customer's data, there were clues. There were, you know, similarities that we could draw upon that the human eye would not be able to pick up and make recommendations. But increasingly, our customers would ask us, "Well, what do you do in a situation where I don't have a lot of data, where I don't have a lot of transactions that I've processed in the past? How can your tool help me with that?" And Gen IV is what's really cool about it is, yes, it can leverage all that data if you have it, but it can also leverage other attributes that you may not have been able to pick up on before and it would not have leveraged before. Because now we're, to Scott's point, we can bring in other data points and then draw conclusions out of that, and it's also very fast-learning. So as it starts to see successes, it starts making recommendations that support those successes. So it's a very unique product, and it's, you know, to my knowledge, we're the only ones who have a capability that can deliver, you know, AI-driven pricing in scenarios where there's a relatively low volume. So, last question, kind of on product or industry commentary has been, Stefan. I think you've been with the company nine years now. I'd say exactly nine years. You know why I remember that? Because you came to PROS the same month I think I came to Needham nine years ago. I think that's right. It's like within 30 days. That's right. Which is- I remember that, yep. ... which is kind of ironic. So, but in your nine years at the company, you've seen the company go through a significant amount of product transformation, not just the different generations of the platforms- Mm ... but also moving from a perpetual to a SaaS environment. Perpetual was a $2 million land, a $1 million, license, $1 million, you know, service- Right ... on the B2B side initially. Now, you can sell, you know, price points that can be less than $100,000 at times. Right. As you kinda review all that, what's the one change on the product you think's been most impactful to the business over that timeframe? Hmm. Good question. You know, I would have to say the efficiency at which we can deliver it. Because we would not be able to do today. To kind of reference your point about, you know, how we used to sell solutions at a $2 million package price and more, our goal has always been to make this type of technology available to more and more companies. And before, when we were an on-prem, it was really only to those companies that, you know, had the wherewithal to do it. So they had the budget and the means by which they can go and do an implementation for that level of an investment. And what we wanted to do is we knew in order to grow and to achieve our potential, we had to make the product more accessible. I would say, you know, how we've been able to not only maintain, but improve the forecast accuracy, the accuracy of our pricing recommendations, and do it at a more efficient level, is probably our biggest achievement. You know, we love to put out these statistics about, you know, how many transactions we process in a year and, you know, and now we're at, you know, more than 1 trillion per quarter. You know, we throw that statistic out, but it's an amazing statistic. Not many companies can handle that type of volume. I mean, we compare it to Mastercard, and it's, you know, orders of magnitude more than Mastercard processes in a given quarter. So to be able to do that and provide real-time answers for our customers at a price point at which they can, you know, more easily fit within their budget, I think it's been our biggest accomplishment. Interesting. So let's move to go-to-market a little bit, and we will take audience Q&A when we're done here, by the way. I only have a few questions left here. Stefan, you mentioned before your land, realize, and expand strategy. That's not necessarily new for the company, 'cause if I look back at how it was sold when I first started picking up coverage, on the travel side, O&D was sold to a segment region, geographic basis, and you try to expand that later. Same thing on the B2B side, is you might sell a geographic region or a business unit, but you'd still try to expand that. How does the strategy kinda differ today versus then? And then, I talked about $100K or sub-$100K price points. I think an investor concern over the last couple of years has been, well, if you're going in at $100K versus $1 million on the software side, can you realize the same—you know—ARPU level from that customer over a period of time? Yeah. Yeah, no. So yes, the TAM is large enough to be able to absorb, you know, that. We knew, too, going into it, that, you know, we weren't gonna be able to maintain the price levels that, that we had and, and reach the number of companies that we wanted to reach. We knew our price points had to, had to improve. I'd say, Scott, to, to answer your question about what's changed in terms of our Land, Realize, and Expand, I think we did... Yes, we did some lands and expands, but it was really, we were going into every new opportunity looking to how we could sell as much as we possibly could, meaning as much scope and as much territory and geography as we possibly could. We were always focused on maximizing the upfront deal, and that was a central theme of what we were about. You know, I think one of the things that we realized several years ago was that we kind of were not getting the full benefit of going from on-prem to SaaS with that type of mindset. We had to shift our mindset to be a true land-and-expand type of a story, meaning take an individual product and an individual division or an individual geography and implement that, get it up and running, make it successful, and then use the benefits that the company benefits from to fund their next acquisition of our next product. And that has proven to be a very, I think, a very good strategy. You know, sometimes in the category of "it's better to be lucky than good," given what's happened to the, you know, the economies over the last couple, 3 years in terms of all the changes that have happened, from, like I said earlier, supply chain, to foreign currency shifts, to you know, massive changes in commodity pricing, our Land, Realize, and Expand strategy has fit very nicely into that. Because, as I said earlier, companies', you know, decision criteria have only gotten more complicated. There's more people like me, i.e., CFOs, that are making decisions about buying, and, you know, that's a... I can speak from experience, that's a harder group to convince to buy than your average, you know, professional. So, having a proof point, having a starting point that's more palatable certainly has helped us. Just to be clear, for investors who aren't familiar, 'cause I'll say this any chance I get, the value prop for PROS is incredibly strong. I think a lot of software out there promises ROI. PROS is unique in that we can actually tell you and calculate how much ROI you're going to get from the solution and then actually measure it and report on it on an ongoing basis as you use the solution. So we've done a study of over 130 PROS customers, where they self-reported their own ROI benefits to us. We did not calculate it ourselves, and that result of that survey showed that on average, customers generate 8% revenue uplift using PROS, which is extremely powerful. To Stefan's point, if we can get in quickly at a what is viewed as minimal risk price point, generate incredible ROI, and fund that next project, it starts to create this flywheel of land and expand. That's the way that we've been selling for two years, but what helps a lot is that the value prop is incredibly clear and easy to measure. Mm-hmm. So two last questions from me is, let's start with the change in the CRO. You brought in a new CRO. I wouldn't say it's a change 'cause it hasn't been a position that's been filled for a little while. What does Todd bring to the table to PROS that maybe you haven't had before, and how does he help, you know, take the business, you know, to that next leg over the next three to five years? Yeah, I think a lot of people, you know, Scott, I know you, you make some jokes about, you know, the sales leader being a.reiner@pros.com. They were good jokes 'cause he has been the sales leader- Yes ... a couple times. He has. Yeah, it's a good point to make. You know, so Andres is, you know, has been our best seller. I mean, he's a tremendous speaker for the company. And, you know, one of the things that drives Andres is, he's incredibly detail-oriented, incredibly process-oriented, and, you know, he gets in at the most granular level, probably reads Salesforce, you know, reports and, you know, other tools, you know, hourly. He's very involved and very detailed. One of the things that we realized is that, you know, he's also extremely good at vision and casting our future and what we need to be thinking about and working towards going forward. And so we looked for a leader to take on the sales role that had a lot of the same attributes that Andres had, somebody that had a tremendous track record of delivering, you know, positive results as leading sales, but also who's very detailed, who's very focused on the metrics and the process. We did an exhaustive search. We spent a lot of time with Todd prior to him joining the company, and he fits all of those characteristics to a T. And, you know, he's been with us now, you know, a little less than a month, and, you know, he's picked up a lot of the things that Andres was already doing. And so, I think, you know, we're very excited about having him on board and taking that mantle and moving it forward from a sales execution standpoint, which is gonna afford Andres more time to focus on things that relate to our future and where we wanna go from a product perspective. Okay. Last question from me on the Q1 results. I think the part that stuck out the most to me was the year-over-year operating margin leverage. 900 basis points is a big number. I know you're super happy with it, super proud of it. Yeah. Yeah. I look at it, though, through the lens of your 2026 goal that you laid out a year ago around getting to a 20% free cash flow margin, while at the same time, having total revenue growth, we'll call it upper teens-low twenties. Yeah. I think it's 18%-21%, if I remember correctly. Yep. I can see where the business is today, I can see the travel business being layered in, and I can understand how the growth rate increases from where it is today to get within that range. To me, that was the easy part. The margin part's always a little bit more suspect 'cause you don't-- we, we as analysts don't have all the details. Mm-hmm. Especially given where it was in a three-year range to make a, you know, I think it was a 2,500 or 3,000 basis point move. You took 900 really quick. How do you think about that vision, you know, to get to that 2026 goal relative to where you are in the last quarter? Yeah, you know, I'm very proud of the team. You know, when we laid out the goal, prior to going, you know, to Outperform and laying it out, we spent a lot of time with the leadership team in the organization and talked about it, and talked about the commitment and what it was gonna take. The team rallied around it, understood the importance of it, and why that was a critical part of our strategy. And really, started several initiatives, one of which is utilizing AI in our business. So, you know, really at, you know, looking at ourselves and how we can be more efficient and more scalable as we run our own business, and so AI has been a big part of that. The other part that's been big is our gross margins. You know, we talked about that earlier, and delivering our solutions in a more efficient way. So all of that has been a part of what we've been able to do. I think as we go forward, it's gonna be a continuation of that, but Scott, to your point, we're not gonna be able to do it all the way, get all the way to that 20% free cash flow margin, until we get to—we start expanding that growth as well. So, you know, I don't think it's gonna do us any good to, you know, see same or similar or lower growth rates on the revenue side, and then try to maximize that on the profitability side. I don't think that's in our best interest. I don't think that's taking advantage of the market. That's before us. So one of the things that we're now doing is, now that we've developed the muscle around how to be more efficient and scalable, and the organization has really embraced it, now we're looking at, can we make some investments in our selling and marketing, and our go-to-market teams to drive, and Todd's a big part of that, to drive more growth in our overall business, which will then provide leverage for us as we grow as well? Because we're building scale into our organization with the adoption of AI and things like that. Well, with that, we do have a few minutes to take any questions from the audience, if there are any. Bill? Maybe more on the glass box concept, which is new for me. Microsoft and sort of infusing more outside AI into your offering, could you sort of expand on that? Is it an investment mode that you're in with those folks? Do you see, you know, fairly tangible revenue opportunities working together? Maybe just expand on, you know, a little bit more on how this Gen-4 is gonna really help with the revenue. Yeah. Are you-- I guess as it relates to Microsoft, I think you might be relating to our announcement about having the Copilot partnership with them? Yeah. Yeah. So that's, that's, I mean, just announced. We just came out with that. It's really now going through a lot of, you know, education and training for not only PROS sellers, but Microsoft sellers as well. I don't expect that to have any sort of meaningful impact until 2025, to be totally honest. But I do see it as and yet another way to deliver our AI and our capabilities to customers in a way they haven't been able to achieve before. So as companies turn to Microsoft's Copilot to help automate and drive operational excellence inside their organizations, they're actually gonna be able to also utilize our capabilities as a part of that to drive even further value differentiation for them. So not only are they gonna be getting, you know, optimized answers from the Microsoft Copilot, but they're gonna be getting optimized price points or, you know, configuration recommendations from a CPQ perspective that's gonna help them drive even better outcomes. So it's a complement to what Microsoft's doing with the Copilot. It's a key component to it, 'cause it's gonna drive value. So that's how we see it, you know, improving for our customers, and like I said, I think it's gonna be something that'll probably be, you know, really felt in 2025. And if I take a step back from an innovation perspective, just 'cause there's a couple things to consider. When you think about, And Stefan kind of alluded to this earlier with the comments on allowing customers to also infuse their AI into our platform and extend it, that we're doing this innovation with Microsoft. One of our core innovation principles is that we want our platform to be an open ecosystem that encourages first-party innovation, us building new stuff, but also third-party innovation, whether that's partners or customers being able to extend or build on top of the platform. Because we believe there's way more power in combining different types of AI technologies together than using, for example, generative AI by itself. And so the Microsoft Copilot is a great example of generative AI comp- combined with PROS' predictive AI, and that those two things together is one plus one equals three. And so when we look at how we set up our platform to encourage that, we wanna make sure that if, for example, a customer, and we have many customers, several customers that do this, have developed maybe their own in-house algorithms that support sales or pricing. We do have a number of customers that have data science teams. They can operationalize those within PROS and get all the benefits of the scale, the performance, the reliability, the high availability of our platform, and operationalizing it within the data and the context that we already have, where the work is happening, so they can drive their own innovations through the platform and use ours as well. So it's kind of this open concept that allows for a lot more innovation, because I think as we start getting in more and down the road in this AI, cycle that we're in, there's gonna be so many different types of algorithms and, and, opportunities that come from ways you can use AI. And we don't wanna limit not only ourselves, but our customers in terms of what they can do in our platform. So is it fair to think that, that they'll embed some of your features in their offering, and there'll be some kind of revenue share or royalty to you all? Or how do you, how is the compensation- Yeah ... the sharing of the customer revenue going to work? So for Microsoft's Copilot specifically, to take advantage of PROS and Microsoft Copilot together, you have to be entitled to the Copilot, and you have to be a PROS platform customer. So you have to have a license to PROS Smart CPQ to infuse those technologies together. So essentially, it's a differentiator for how our CPQ can be delivered, whether it's in our CRM, whether it's in an e-commerce, or whether it's through Copilot in email threads as sellers are working on proposals. With that, the red light is blinking, which means we're out of time. Thanks, everyone.