Welcome, and thank everyone who's joined us today for our session with PROS Holdings. I'm very happy we have the leadership team with us today. We've got the CEO, Jeff Cotten, and we've got the CFO, Stefan Schulz. Jeff, why don't you, if you can, for some of the new listeners within the audience that may not be as familiar with PROS Holdings, just to level set the discussion and share with us from a 20,000 feet view your role at the company and the problems PROS Holdings is solving for your customers. Yeah, thank you, Brian, and we really appreciate everybody joining us this afternoon or, perhaps morning or evening, depending on where you are. I just joined the company two and a half months ago. We're a SaaS company in sort of the broad revenue management and pricing optimization space, about $360 million in total revenue. Company's been around for many decades, actually goes back to 1985. We like to say that we started doing AI before AI was cool, with many decades of building machine learning algorithms specifically for dynamic pricing, where we started in the airline space, actually, and have grown out of that now to take a lot of those algorithms and price optimization capabilities into the broader B2B space with now sophisticated smart CPQ products and price optimization management capabilities. That's a little bit about the company high level and sort of where our products are focused. As I said, I joined two and a half months ago. Most recently came out of the contact center as a service space or CCaaS space, where we integrated very heavily with the CRM and ERP providers. I knew a lot about this particular space and am very eager to continue to dive in here at PROS. Thank you, Jeff, for the opening. Maybe I could just tap into some of the reasons why you chose PROS, you know, now that you've got two and a half months with the business. Can you share with us maybe some of the strengths of the business that you may have underappreciated prior to joining PROS that you've seen since you've joined the company? Yeah, great question. There were three primary things that really got me excited to join the company, and I'd say I've certainly validated all three of those and been really pleased by the opportunity here. The first is, as I mentioned in my opening remark, the AI capabilities of this company are extremely strong, and it is a true defensive moat, which I know is a question on sort of everybody's minds in the era of AI, what is the defensive moat for a lot of SaaS companies? Given how sophisticated our algorithms are on being able to do deterministic pricing, developed through many decades, what I've heard from all of our customers is the significant value, and not only the value, but also the ability to be able to deal with the volatility of today's world and incorporate raw commodity cost changes now and push those out via price changes, effective within minutes in many cases. The power of our product and AI has certainly proven out in what I've seen so far and only excites me further in terms of the opportunity. The second piece is, I came in with a bit of a thesis and listening to a lot of folks in the market about PROS and this sort of broader order to cash space. The company is generally known for those that know it as having market leading products, but frankly, I don't think that we have the awareness, especially on the B2B side. On the travel side, we're very well- known and most world airlines, but on the B2B side, I think there's a huge opportunity to get more at bats effectively. That has certainly borne itself out in my two and a half months now. I thought there was a big opportunity from a partner perspective, and not only is that true, we've already shown that that's true and getting our first sort of new type of partner active and out in the market with the launch of our BigCommerce, or now known as Commerce, partnership that was announced in our earnings just a little over a week ago. That has also been very gratifying to prove out that that is true, and that's the first of many new types of partnerships where we're going to be doing reselling with partners for the very first time in PROS history. Very exciting to help us get that awareness, get more, you know, feet on the street by leveraging sales teams from other organizations. The final thing that got me excited here that also has proved out is the culture. This company is very proud of its culture, and that was certainly one of the things that attracted me to this company, the fact that the Board put so much emphasis on the fact we're proud of our culture. We want to maintain that, but also continue to evolve the culture, obviously over time. I'm a high culture leader. I believe culture can either tear companies down or truly make a company. That's been really exciting to really get in with our employees, understand what their motivators are, and continue to lead and inspire by building on our culture. I want to bring Stefan into the discussion here. Can you talk a little bit about the business highlights in the first half? You know, you reported a good quarter a couple weeks ago with your 2Q. You exceeded your guidance. Tell us what's working well for the business in 2025. Yeah, you know, we were very happy with our first half results, to your point, Brian. I think it starts with the fact that we perform well across both our B2B and travel areas of the business. Last year we didn't have that benefit, especially in the first half of the year where the travel and B2B were all hitting on all cylinders. Travel obviously was a little off at the first half of last year. Very happy to see both parts of the business performing well. I would tell you that a trend that we've been seeing is sales cycle times have continued to improve. They improved another 10% in the second quarter and actually for the first half because we sell the same thing in the first quarter. Our competitive win rates continue to improve. All in all, just from a booking standpoint, we're very happy with how things have progressed in the first part of 2025. To your point, because of that, it positioned us well to increase our guidance on our subscription ARR and subscription revenue for the full year. Not to leave out our profitability initiatives, there's some things that we wanted to execute on in the first half of the year, which we did. I feel very good about how we're delivering better performance on the top line while also expanding profitability through our EBITDA and free cash flow margins. Thank you. Let's shift over to the moat. Jump off for either of you. Share with us why you win in the market. What gives PROS the right to win? How are you differentiated, and how deep is the moat in the market? Yeah, I'll start off and certainly Stefan, with his years of experience now here, can certainly add in. First of all, I'll take that a little bit, sort of talk first on the B2B side and then on the travel side because obviously there are some differences and distinctions there. On the B2B side, one of the things that I found really exciting, actually, is that we play really well when the customer has a really complex selling environment and configure and proposal and quoting need. Manufacturing is an example where we play extremely well and differentiate from a lot of the competition out there where we can handle thousands, tens of thousands of SKUs on a single quote and produce those quotes very quickly. Most of the CPQ market really kind of struggles with the complexity of that type of an environment. That's certainly one differentiator. The second thing is on the sophistication of our algorithms. Our sophisticated price optimization and price recommendation capabilities, once again, haven't just been developed for our B2B business. It infuses decades of experience on the airline side as well that have been infused into that B2B side. Let's take the CRMs as an example. A lot of them have CPQ capabilities, most of which can satisfy smaller, more simpler types of configurations, but very few of them have any type of pricing intelligence and price optimization algorithms. That's certainly another big differentiator for us on the B2B side. On the travel side, a little bit different. Our roots are more in revenue management and obviously we've evolved those to add more capabilities around continuous pricing, dynamic pricing, digital offer marketing capabilities. As airlines are starting to make the shift to want to own more of the full travel experience, we're really well- positioned as they start to evaluate what's now called offer marketing and offer services. We're having very strategic conversations with a lot of the big global carriers right now about how they can think about utilizing our offer management capability to handle that full travel experience. We're really excited about the differentiation really on both sides of our business. I think the only thing I would add to that is our ability to deliver accuracy in, you know, in the speed of light, basically. We do all the things that Jeff just highlighted, but we do it with tremendous accuracy and with tremendous speed. That's an extremely important component when companies are evaluating how they want to go to market and what tools they want to use to help them optimize their win percentage and their ability to attract customers to their business. They cannot afford to have a mistake. They can't afford to have delays. What we've been able to assure over many years of performance is that we can deliver this type of accuracy and that type of speed, unlike really anybody else in the marketplace. I think that's probably one of the biggest reasons why we win and why we have a pretty good moat to our business. In terms of competition, who are you competing against most often? Is this still mostly an Excel market? We've heard ServiceNow has been talking up about entering the market. Who do you see most often on your shortlist? Yeah, you nailed it, Brian. Look, the number one competitor we have is sort of, you know, in-house DIY or Excel spreadsheets for sure. Most of our new logo acquisition is customers are coming off of something like their own spreadsheets, etc. You know, obviously there are competitors in this space. Pricefx is one that has a great relationship with SAP that, you know, we ultimately would love to get more engaged directly with SAP that we do see in the market. As you mentioned, you know, ServiceNow and Salesforce both have CPQ capabilities. They don't really have so much on the price optimization, as I said. Actually, we've had a competitive win this year against ServiceNow CPQ, which we're very proud of. Once again, it was a sophisticated healthcare customer that had, you know, this very complex configure and quote situation that plays very much to our strength. We like our positioning. On the travel side, obviously a different set of competitors. Most notably, it's Amadeus and Sabre, who have big broad businesses, right? They've got, you know, holistic platforms that encompass, you know, flight crew management, passenger shared services, PSS, they do have some of their own revenue management capabilities, etc. They also have GDS businesses, which are very subject to volatility in the airline space because they're directly tied to passenger bookings and passenger boardings. That's one thing that we don't have, that, you know, thank goodness we're sort of shielded from a lot of that very specific volatility. Those are the two biggest competitors that we see on the travel side. Maybe sticking with the travel business, it seems to gather a lot of attention with your company. That category certainly got hit really hard in the beginning part of the decade. Your performance has certainly improved that business segment over the last four quarters here. Can you shed light on what's happening with demand in that business segment? Maybe does your guidance imply an improvement in the outlook of that end market? What are you seeing within the travel segment these days? Yeah, let me start maybe with some of the trends and Stefan can talk a little bit more, from a guidance perspective. You know, look, one of the things, as I sort of briefly mentioned a few minutes ago, is there's certainly a shift in the C-suite of almost every airline to understand, you know, as they've become very successful at marketing a lot of different services, you know, ancillary services, and how to charge for those things. What they're finding is now they want to further expand that and get more into owning the end-to-end traveler experience from, you know, being able to market, you know, a bundle of hotels, transportation, ground transportation, etc. Their tech platform is not going to satisfy that shift. You know, they've been able to sort of leverage things like, you know, EMDs, if you're familiar with the space, to be able to do some of this ancillary pricing, but that's now not going to a shift towards a total travel experience. There's also now nuances and things that we've been doing for the airlines for a long time, but new ways to think about seats, as an example, right? Forever, you know, sort of the middle seat in the back was sort of viewed as not probably the most favorable seat on the plane. As you think about now, trying to market a whole package to a family going on a vacation, now that middle seat becomes very valuable so that you can keep the whole family together. Being able to think about how to now price for that is something we're going to help them do as they make this shift. That trend that we're seeing has really put us now at the top of being able to have that strategy conversation because all of that requires this full offer management capability. We're really excited about our services there. Now that we've added in this digital offer marketing capability, that is critical for this whole offer management capability. Today, where you may search on Google for flights to Miami and they can launch a specific offer leveraging our digital offer marketing platform. Now that we're adding agents on top of that, we've got an airline today who's got a customer success story out for us where they're already leveraging, and that Fare Finder A gent now allows them to change the conversation with the consumer so the consumer can search for beach vacations and they can market all sorts of different destinations, maybe one that's lower cost because there's a lot of seat availability, etc. That's really changing the dynamic there. Those are some of the trends that we've been seeing that create opportunity for us in the airline. Does anything you want to add around guidance? To your point there, you know, airlines are looking to, you know, optimize so many different offerings for passengers so they can win more customers to their service. We've been delivering on a lot of those capabilities, a lot of additional capabilities that help address that need. That's what's built into some of the opportunities we see as we go forward into the second half of the year and even into 2026. It's typical, as you know, that we see higher bookings in the second half. This year we don't feel it can be any different from a seasonality perspective. Yeah, you brought up the AI discussion. I was going to go there next. You kind of helped me. You gave some use cases already of your agentic platform. Maybe you can share with us how we should think about the monetization path for AI. The company was an early evangelist with AI, and now we're here today in the AI era. How does the monetization path play out for PROS over a multi-year period? Yeah, it's a great question. To your point, we've got a really proven model in pricing our historical machine learning and data science models that yield these prices. An example on our B2B side of the house, our price optimization capability and service is priced on a revenue under management, right? It is sort of tied to the amount of revenue that a customer is pushing through and generating prices for. It is going to be totally different when you think about agents specifically, right? As a customer now, let's say on the B2B side, starts consuming our CPQ product via an agent where they're able to chat and say, "Hey, I need to configure a quote for, let's say, an HVAC scenario, and I've got a building that's 20,000 sq ft and aluminum construction, give me a quote." To your point, the way in which we're going to price that is actually something we're still exploring with our customers who are piloting and testing our offers right now. We expect it to be some sort of an outcome-based pricing model, and likely will be something sort of consumption-based, right? One of the things we're considering is, you charge by answer could be something that makes sense. That way, a customer can very much understand the usage metric there. Nothing that we've finalized yet. Still something we're exploring. Jeff, I wanted to ask you the topical debate that we have today with software and generative AI. It seems to swing back and forth. We're so early in evolution. At some point, generative AI is the next great growth lever. Now it's like, oh, it's the end of software because of generative AI that, specifically for your business, generative AI is going to be so good, it's going to be the end of pricing analysts. We're not going to need these types of workers anymore. The software will just do everything. To me, it seems far-fetched, but curious to get your views and maybe thinking about it on the other side. It does create category growth, not category compression. It's a very high-level question, but it's a topical debate and would love to get your perspective. Yeah, you know, look, this is the question de jour, right? It is kind of funny how sort of out, you know, the sort of belief is almost outpacing the reality. I remember when Marc Benioff declared that software was dead, right? We all know that that wasn't necessarily true, but certainly we consume software now in a very different model with SaaS. I think you're going to see something similar here. As an example, I do expect that the UI is going to change very significantly. We're almost all going to be consuming software through a natural language agent type of an experience, right? I mean, the scenario I just gave where now you can configure a quote with a very natural interaction of answering questions and prompting is a lot easier than having to learn a company's proprietary layout of the screens and where the data elements are entered and configured, etc. We're already seeing that shift happening, and I expect that to be very rapid. This idea that SaaS companies and the value that they provide, but a very specific service or use case, is a little bit far-fetched to me. One of the reasons why is that if you look at our algorithms, pricing is mission-critical to a business. You can't get that wrong. I mean, if you go and offer an 80% discount by accident because an LLM were to produce it and produce it with a hallucination, you've set a new marker in the market that you may or may not be able to tolerate. You just can't let it happen. One of the things I think people don't quite understand is that these LLMs are non-deterministic in their core algorithm. They have to be, right? Because that's what makes them generative. If it were just too deterministic, it would lose the concept of being generative. When you look at our algorithms that we've developed specifically for pricing and revenue management and smart configurations, they're deterministic and they have to be. We have trained them with algorithms that are deterministic in nature so that we can ensure that we're offering a price that has been determined via an algorithm. It's not something where it can have an outcome that would be outside the bounds of what you would want to produce from a specific price. That's one very specific difference, at least in our case, where an LLM is going to find it really difficult to go and replicate or produce what we do from a pricing perspective. Thank you for that. Jeff, I wanted to shift over to the go-to-market. Before you joined over the last 12 months, there was an initiative at the company to unify the go-to-market across the business segments. Obviously, you're going to want to put your stamp on the business as the new leader. Maybe the question is, what type of new initiatives are you looking to bring into the company to further optimize the go-to-market of the business? Yeah, it's a great question. Look, I'm going to break it sort of into two buckets. There's going to be a lot we're going to do in the demand generation bucket that's very different than what we've done in the past. We're going to dial in our marketing campaigns, as I sort of alluded earlier. There's so much more industry-specific messaging that I think will be much more effective in the market than broad, let's say, CPQ or price optimization or airline revenue management types of positioning that we've largely had from the past. Think about if we can dial in a specific use case where we've got an aircraft manufacturer who we took their average days to produce a quote from 45 days down to two hours. That's very compelling. Being able to now market that to other manufacturers or specifically even aircraft manufacturers, to me, is much more compelling. Pairing that with a seller who has a target of aircraft manufacturers to take that message is one of the ways in which we're going to evolve to go to market. The second thing is this partner motion that I keep referring to. We're going to zoom in specifically on SIs, both GSIs and more boutique specialist SIs in the order-to-cash space. These platform alliances with the ERP, e-commerce, and CRM guys will be a big new source of demand for us. When it comes to specific changes in the sales organization, I believe that if you try to do big bang change, especially on the front lines of your sales team, you cause so much disruption. We want to minimize that as best we can, so we will continue to drive some evolutionary change. We did not lose all of our specialty as we went to more of a regional model this year, and I think that specialty is going to be important for us moving forward. To sell effectively in the airline space, for example, you've got to understand all the acronyms. You've got to understand the depths of what revenue management systems do. That's a whole different motion than understanding a CPQ in a more generalized B2B industry scenario. We will maintain some of that specialization that I think is going to be important, but it's going to be more important to make sure that we're starting to zero in the targets of those sellers and pairing those with the campaigns that we're going to dial in as well. While we bring Stefan in for a question here, I wanted to ask you just about your medium-term financial goals, specifically the 2027 financial targets. To achieve those targets, they both imply acceleration to both the top line as well as the margins. Does one seem an easier path for the business, accelerating the top line versus the margin and the cash generation of the business? Yeah, I mean, I think it probably goes without saying that managing margins is always going to be easier. We'd have far more direct control over that. That's not always the right answer, right? Because even though it's maybe the easiest path, that's not the right answer. I think the right answer is to focus on accelerating that top line growth. We called out delivering a 16%- 21% growth rate in a range for 2027 and a free cash flow margin of 19%- 24% as our target for 2027. I would tell you that at this point in time, while we're seeing acceleration in our revenue growth line in 2025, and we anticipate continuing that into 2026, I think it's fair to say we'll probably be on the lower end of our estimate of what we were thinking. I think we can certainly deliver that. At the same time, getting our free cash flow margins into the upper end of that range. There's still more work that can be done on the leverage side in terms of utilizing AI ourselves to make ourselves even more efficient, taking advantage of the growth to lever up an increase in our free cash flow margin. I feel like all of the ingredients are in position for us to execute to and to be successful with. Like I said, even though getting to a free cash flow margin in the range would be an easier answer, I just don't feel like, and I don't think any of us feel like that's the right answer. We're going to really pursue the growth. Fortunately, we have tools such as AI that can help us be more efficient and not necessarily have to make that traditional trade-off of, well, in order to grow, you've got to invest. We don't necessarily have to invest more. Now, we probably will shift some dollars to where we have some important initiatives that we want to do. Where we're shifting dollars away from, we're not going to expect less out of those other teams. We're going to expect the same amount of work, if not more. We just expect more efficiency. Jeff, I want to bring us back to the channel. That's clearly been an exciting topic for the business since you joined. Maybe two questions. The first is, can you talk about the new partnership with Commerce? That seems to be a different partnership than we've seen before from the business. The second, you talked about increasing, trying to get more attention from the large global SIs for bigger enterprise deals. How do you do that when these larger global SIs do have large practices already with your competitors? Kind of two different questions there, but both relating to a channel ecosystem. Yeah, on the Commerce side, formerly known as BigCommerce, there are a couple of things about that partnership that are different. First and foremost, Travis, the CEO there, he and I have aligned very strategically at the top on the way we want that product or that partnership to work, the use cases that we want to solve there so that we can then drive alignment down the organization for effective execution. That is one big thing that I call out that's different than the way in which we've approached a lot of partnerships in the past. The second thing is that this partnership is starting as a referral partnership where we're already generating some joint activity, but it is intended to become a full reseller. In other words, we will be able to leverage the sales force of Commerce to be able to sell PROS' product on the B2B side. What we love about it from a Commerce perspective is that they're going to be able to expand their TAM by being able to partner with PROS and embedding our products. It also potentially opens up an opportunity for us to get access to the e-commerce market where we have historically not focused on by infusing our price optimization and pricing intelligence into a Commerce engine, which is certainly one of the opportunities that exists with this relationship that we've established with them. There are some pretty unique things. Once we get that reseller in market, it'll be the very first time PROS has engaged with a reseller type of a partnership. Once again, the first of what we hope is many to come. As it relates to SIs and the second part of your discussion, what I know in working through the SIs for many, many years is that to really get their attention, they've got to believe that they can build a $100 million service practice around your software. Whether they can do that or not, they're the ones ultimately that will make that determination. I would make the argument that the better approach for us is to actually help them understand where, by attaching our product into broader service practices that they have in either ERP or order to cash, that's where the real opportunity lies, both for us and for us to help them strengthen the value that they bring to their customer. We do have one large GSI that we're very deep in their order to cash process right now, where they're absolutely seeing that opportunity and the ability to bundle in our CPQ and our price optimization capabilities. That has opened up the conversation and the door there in a new and unique way versus how we've approached it in the past. Maybe for the last question, just to kind of bring it all together in terms of clearly growth is the focus for the business. You talked about a lot of different growth initiatives that you have going on. Maybe just bringing it all together, you know, which of the growth initiatives are you most excited about these days for PROS? Yeah, you know, they're like children. I don't know that I could pick a favorite one because they're all fun and I think they all can have a really big impact. I am going to go back to the channel one. The reason why is a little bit different than what we've talked about. One of the things I've seen in the marketplace is that we do have some friends and we've got some influencers out there that have helped us certainly in deals. Largely, we're kind of going it alone. A lot of our competitors have very strong partnerships that very heavily advocate for their products and solutions over ours. It feels a little more lonely than it does sort of having a big family around us. I know the power of when you get more people in the market, number one, talking about us because that will raise that visibility so that we get more of those at-bats. That's really, really critical. When they actually get in the seat with us and they're actually, you know, we're co-driving deals together, that'll only accelerate the amount of demand that we have walking in the front door. That by far is the one that I'm most excited about. Can I just ask you one follow-up on that? Do you need to bring in new leadership or do you need to augment the go-to-market organization to really target what is an initiative that sounds very exciting for the business? Yeah, we will actually. We actually just hired a new partner leader a few months ago, which I don't think that role existed at least in the near recent future. It may have further back inside the company. His name is Chris Knepper. Chris has been really rebuilding a lot of that partner capability. We will need to continue to rebuild it. Things like enablement will be a big thing that we need to get built out so that we can train, provide content and playbooks to the partners and their sales organizations. We've got someone new starting at the end of this week, isn't it, who's going to really help us on this platform alliance side and take a handful of those and really drive the strategic relationship to make sure that we have that top-to-top alignment. We're driving a reseller motion specifically. We will be adding some more capability, both from a team perspective as well as a leadership perspective. Terrific. We're out of time here and we have to make sure to keep PROS Holdings on time because they've got a full day of investor meetings. I want to thank Stefan. I want to thank Jeff very much for your time and insights into PROS Holdings. Thank you. Thanks, Brian. Thanks for having us. Good day.