PRO - Earnings call transcript Q3 2017

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Operator

Greetings, welcome to the PROS Holdings' Third Quarter 2017 Financial Results Conference Call. At this time, all participants are in a listen-only mode. An interactive question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I'd now like to turn the conference over to your host, Mr. Schulz. Stefan you. Thank

begin. You may

Stefan Schulz

Operator. joining Good Andres thank you, everyone, President afternoon With me for us. Officer. is Chief you on and Thank Executive and today's Reiner, call

factors, that are These we during to session some on or and guidance, Before present the and forward-looking the to forward-looking any results that circumstances they strategy, position, market these question-and-answer revenue, risks actual competitive and assume which statements uncertainties contain and on important which business the made. our must information as occur were opportunities update we caution other as our differ implied of statements remarks exist could well after cause provided are or statements. results not including numerous begin, to the PROS based to today's subject our does prospects, bookings, statements. future materially reflect date forward-looking you from statements obligation made that by events

concerning site risks found in Additional available Investor be encourage of may Also, the will filings with today's replay results company's to please additional We Web webcast Relations can and SEC. actual this the of that information our information. be that differ the at a to other pros.com. in factors note everyone section cause review

release in our financial Relations is with like basis. well the site. available of to point distributed as non-GAAP accordance directly press to GAAP unreasonable principles, would accepted most generally comparable to Web on reports effort the available reconciliation non-GAAP results the in out and guidance to results section accounting extent certain the I today GAAP, earlier reporting Finally, measure of that in each as Investor financial measure addition on without A a or forward-looking PROS

I will over to that, call turn the So Andres. with

Andres Reiner

Thank on us today start our quarter. Stefan, our another I'd by team congratulating and joining thank for on afternoon you like strong good everyone, you call. to

leading results you are strategies, dealing our high-end We'd us us of total thank growth as revenue, These of achieved our with guidance in we on subscription well execute reached revenue, of incredible during of the that to all to that out were effects like profitability. who to to Harvey. Hurricane continue time. We people many exceed non-GAAP and

Your on Since how thoughts and to mean was lot to this storm, providing have from by us. the both asked I'd quarter. a the a PROS before third several general business cover comments people more a standpoint affected like

Houston-based XX% of were directly employees storm. impacted Just our over XXX by this

PROS the our Our Harvey. devastating suffered from with and thoughts community at who those effects remain

with team thrive. and that the our responded countless character business charity. to This Our Harvey to makes kindness acts strong of speaks

like So of what share to I'd small team. witnessed from glimpse I've a our

and for provided committee a to social drives childcare teammates resources. to relief victims, to employee back help transition available recovery Teams onsite groups storm collect site efforts. connect organized led Our supplies work, to several to temporary and created employees

everything housing spent people during time helping community, to efforts the demolition the storm volunteering after. from with cleanup Our rescue and in

employees aid donated in shown company, they a and is wake to culture, quarter heart storm. core raised Harvey. for the of close team proud of our a have to so dollars by affected As to and our we this the million Caring I'm

did our that employees customers that expect job and assistance and were management safe interruption. without and in all confirming We needed. able an beyond. from made get team also excellent to an immediate provide operations off. continuity, were paid cloud Our and able we've investments crisis business the the support teams come our executed flawlessly the and to services have planning, our employees to And during event The when strategy standpoint disaster

Now, the quarter. I'll on comments general turn to provide more

we've and strategy that of progress the the nearly Recurring end our approach created revenue now the our our our success momentum company. in year, key driving a we've to the XX% in that's we're our stride had is pleased the a we hitting highlights transitioning of how our by business. made mix, as transformation I'd of share indicator revenues cloud As business. and show cloud which we're that in a like few is to

just cloud this easier QX. joined our solutions more First, construction example quickly, delivering customer small, experience. in as a of start a to business shift is [ph], help by it One buying our their are them customers team who to Carlyle Carlyle start division, to making expand. making materials the to us for modern Carlyle plans prices their personalized units. sales one frictionless value a and commerce of into enable realize is is dynamic which to

a footprint, customers smaller of opportunity our customers see a quarter. after with as show grow value presents the Carlyle their quarter business. start across to expand us great We examples partnership this today with it As like happening solutions several and

they who the deal see is which quarters customer up example volume, and in a doubled are by more number solution of PROS more than the increase of the year. first Siemens Since in countries value first frequently Customers base months in our scope. continue their tripled like nine For XX% implementation more became XXXX. their to has their contributing the to Siemens three Siemens in and have of user then all extended

innovations our all a customers. ways us how of accelerate capabilities suite, than through have have and of with to in cloud our new our can customers first us in One embracing which Customers in value customers us new of innovations. that that is the to years, moving cloud partnered with commerce ago. are the with XX% our illustration is Fairsearch strategy great modern more over to expansions quarter, deploy how committed area Korean airline are who loud is years example buy-in. our they were This Air creation. as strength our the proud illustrates full And solutions a Korean to with realized second including our I'm XX innovations Korean new say this of us of us many like Air. QX, Air PROS The came decade. their value our over recognize third value helping been cloud they to deliver to

two definition what's transition mission by help possible commerce. our In modern Underpinning is I'm commerce the leveraging from space, growth we're acquisition implementation of one. launched embracing already the a after able commerce take expanding customer In third self-service together deals taking companies medical suite their drive and of acquiring own our in cloud of distributor Earlier we our incredible modern first enabling shift to cloud our our our market large to of to the months This vision, months with was customers. delivering by this value in our start Vayant. more full have take we're Empower. airline is after outperform PROS solution to approach several ownership closed quarter, implementations. solutions year, day be a the advantage went work bring to the our live making supplies the teams proud modern and program just by driving few opportunity. through called with of of Vayant. the pricing and experience the self-sufficient we've and next delivery The done the Finally, our to level our to customers market Empower, their

his has companies progress as the strong ability our look by mission deliver team, finish With us, strategy business to we excited the to to Vice growth I'd market as our opportunity us We our capitalize over financials. introducing to leadership the sales to and tremendous we the I'm entered scaling together Sales. it. e-commerce. Tom our executing strong Stefan we turn look can more to right work to Dziersk, modern We leadership. Global under helping President who upon comment build Tom to we growth. to call and uniting a under we accelerate have a on business that, As continue in solutions believe in team our with of joined consistently, our on front of like believe ahead, shift have make on to the I to confident in of forward XXXX made across we've to Executive our and of we global place QX in look forward drive

Stefan Schulz

Andres. you, Thank

sharing start covering story Before like to financials, about team. a our by our I'd

the applications for to and the early prepare be. planning that mentioned, just to happy were Harvey decision was that was our the time As I plan making life impacted to our face move I plan well whoever our in we the didn't use challenges surprised they we updated I'm admit incredibly on expect execute to so might to disaster. we our business of of to employees key team the to all the company, crisis part plan in throughout that ensure to our after cloud, business new as learn cloud of could Hurricane the must Andres report disaster put engaged our availability of to but our our Houston systems SaaS area. A recovery many during we and a company. a management And how members our as

as escaping their number of we available and connections the This height hundreds or our remote as flooding were of were the locations out neighbors. systems the our from happening closed, many on VPN at helping floodwaters maxed employees time. our During of employees accessing of was actually the same when were offices the

employees our accessing only the not were So, but systems available, throughout flood. our were the systems

a to we which team that saw community Houston outside customers. level. on part operate employees proud our our locations additional both a a be It about and take business of of supporting high responsibilities was help addition, and a passionate us I'm true team In number effort is at in of our

transition moving will our goals, will year, on thoughts and by the remainder provide early outlook quarter details on on for performance third of next an and update I then the first I will to our our metrics, Now, year. I for provide more providing the finish cloud

and growth continue set subscription goal of cash set free to early make goals We on transformation. revenue XX% progress subscription cloud the our we revenue, for that quarter flow revenue, a XXXX, in recurring in organic and results Vayant. subscription revenue basis of from for the we growth XX% we third remain including and for ahead the of consecutive QX, an pace reported after on We

for and tracking toward better our Our in XX% consecutive up quarter third goal QX long-term revenue XX%. than recurring the was of mix

deceased and in XXXX, flow burning Our breakeven free cash has to goal been cash XXXX. in late for

this the We continue in generation guiding in to fourth our goal quarter. to track cash to

to free flow goals go our significant growth we balancing forward, we to market. see remain cash order the that the As revenue we goals committed our in of in take advantage with opportunity

details up XX% to end up year. of XX%, made of the progress results and our margins contribution revenue costs the adjustment. for year-over-year. last for Non-GAAP the expectations. slightly The third in our results; from acquisition-related quarter of our P&L strong came total subscription the margins. quarter was more the We item quarter XX% non-GAAP that year-over-year, portion compared XX% third our million, by were gross reminder, subscription $XX.X deferred compared was recurring we in in at some $XX.X on Vayant at datacenter we for quarter, and And for last are driven year, revenue cost any adjusting line revenue have when million. up of quarter line our to of in XX% some third subscription deferred $XX.X Now, was incurred revenue migrations X% a the in with revenue margins million in as subscription the not third in one-time sales the muted The

free an in were On our to PROS quarter make the our burn in expenses high QX, flow, investments last two and the Both well costs associated to our as $X.X contributors plan to rate. million. that was as are which to payment large burn restructuring that tried are turning in major primary I cash provider integrating are these this with third Vayant, cloud one-time discussed and Now call, included cash upfront we agreement. free of the of flow number, relatively

on We quarter put burn. pressure with also that Hurricane had some cash our associated Harvey some the cash added in expenses

million. $XXX.X short-term the cash end in of quarter Our balance third investments the totaled at

and provide I'll for fourth full the the for guidance year. Now quarter

in We expect year-over-year range revenue of million $XX at increase to million, QX midpoint. be is an the $XX which total XX% to

customers of we last we range total revenue a increase We $XX revenue expect the in subscription in a million, And late quarter, us and in year. quarter in the beginning million midpoint. attributable XX% subscription for revenue as to the several the QX to noticeable expect services fourth mentioned their be increase subscription at with to $XX.X

revenue We from we are of that pleased majority recognizing now to their are these these report live the customers already services. solutions, are on and

for the revenue Note fourth next milestones a fourth on one-time is uplift will in benefit with other the live We this the track the in few go quarter. implementations well. are year forward carry this also quarter into delivery as not quarter schedule as to that

be $X.XX and based our expect of on to million. loss adjusted range fourth And the XX non-GAAP loss for $X.X EBITDA a million outstanding. share between anticipate $X.X in basic we We $X.XX quarter estimated million to an per share per shares the

For be last a still $XXX.X year represents between revenue midpoint. the to increase full-year million, we total million which over XXXX, expect at and X% the $XXX.X

We are million full-year the for of the our XX% increase subscription to $X.X an at million raising midpoint. $XX $XX.X by guidance million, revenue to

to full-year We cloud million due EBITDA that strong guidance to business. million. the million are seeing the for to we to nearing our ARR guidance $XXX also to And are $XX.X $XX our raising million our in $XXX adjusted momentum we're range

pace As quarter, are incurring an the but least for the change break to we I as to some we year on expectations free million one-time flow are remain forth adjusting at $XX of we we the to $XX datacenters. of results from migrate even expected mentioned on burn in This costs primarily earlier, million. full our cash

anticipate fiscal approach accelerate, we preliminary for to total to metrics wanted a We on growing color continue revenue As next provide few XX% XX%. year business I with will to XXXX. our our

our third forward on a committed customers profitability, growth to outlook least subscription will mentioned as of And see our for are cash this grow that and we finish free driven expect major earlier, We remainder of will to we our again at are the anticipate finally, revenue, be strong transformation quarter the to by we with I growth, expect a which quarter XXXX. our pleased we XX%. is first focused we burn free high driving be the out that financial milestones. remain for positive mission seasonally cash and flow Overall, cash cloud the look year. we so year to helping $XX our the year. in our of results as and our Note flow, million next do to hitting next to free We not QX, in carry cash expect our in close outperform. improvement flow We

to So the with questions. that, let turn me back for the operator call Operator?

Operator

go Amladi Thank Instructions] be At from conducting a Bank. Deutsche you. first question-and-answer time [Operator is from this session. Nandan Our Please we'll question ahead.

Nandan Amladi

question. Thanks taking afternoon. for good Hi, my

begin when do the provide cloud but maintenance it true useful to a airline when billings see maintenance become leading customers maybe we replaced as line start to So build I quarter, maybe total a understand up billings and subscription from we to some the of revenues be will to as your begin migrate to every revenues? metric, models. model by you line the would be separating know

Stefan Schulz

Nandan. Hi, is Stefan. This

mentioned have programs we're there some been see you're when take is to more more there have that to year airline But start have Air doing before next remarks. actually migration a of actually migration where that and prepared situation is to add program make actually in formalized Andres That's dedicated So on place. the And those when and going Korean the that his must migration. the Korean started are, in around had to wanted also going I it. a customers space place. we

QX year. see about guidance more call we when will our the we our programs more for have actually our look will you talk of like what and So give that, next and

something us relates just the of that is maintenance. licenses. time. of understand license to will though you're how our that on. out look one because terms to would the look asking a not will in to the that you're subscription bit it bit a and provide in I you do at numbers that's give into contemplated something we've XXX and with little think is deferred As like the that's is billings, revenue, we going see to That's add indication But your this that saying recurring to and our we that break I you're is we'll little what if behavior around making subscription question to that complexities we a will something the that that with is one work it out. we what's point better of do it term has business start little there goes I and lot break of complexity through But into have unbundled that that And maintenance. of a of do changes of wanting

Nandan Amladi

the not Vayant have at your reconfigure? least if you could applicable, Thank I applicability technology these in follow-up, Does might. BXB you. but maybe Is parts a segment? directly, product that that And

Andres Reiner

Yes, is Andres. Nandan, this

say would I specialized industry. around point is towards Vayant the search and merchandizing this really flight the at Now, the solution travel

airline the So all much as type business. BXB of not beyond side of travel, but to the

Nandan Amladi

Okay. Thank you.

Andres Reiner

Thanks. Great.

Operator

Company. is Our go & Needham ahead. from next Berg from question Scott Please

Scott Berg

on Hi, I of with, probably start for great questions. Andres. thanks quarter, the and I'll everyone. this Congrats for taking my is have three.

You brought Head looking in timing maybe decision about weeks particular that you ago. in of new talk Sales this going terms why what of in few why and out quarter Can forward? a just the now, a of you're new this the position individual,

Andres Reiner

Thanks, Perfect. Scott.

selling done is one defining sales over really hitting cloud. said that two front. strategy our packages, little XX% I cloud as And the from our So, as And stride executing that to during on I deals about been a motions we're our a define in I of we've feel process really company bit we're the cloud our over wanted lead for years. scaling. We've

really I organization and Tom under unify So sales the have over I to a the time the the felt year leader. new that was right last sales And fit. of -- is seen perfect a we've think and team improvements that particularly execution the we felt in this having in the great we combination two

companies of his similar scale, I it's and able close of way very think to going we the a leading fit, think, cultural background being we continue us grow to them, significantly our in and I growth. think I accelerate help think align that to

So well very team. as And we're as excited. excited, I'm the personally really

Scott Berg

was in Great. seeing deal volume airline of theme. type And that XX% what of then could you see that I commerce some commentary. to to the versus modern add up mentioned some more Andres, you you're CPQ Maybe color year-to-date. if or terms wanted

where understand to trying from Just buy-in coming is specifically. that

Andres Reiner

momentum And solutions good buy-in the specially business. be be deal we're Yes, how travel predominantly travel and we're deal very the they've volume travel deals large, around so doing how pleased But to the in and tend been seeing obviously -- the in and in to as with accepted. not tend high. we're volumes industry

the talked lot by is land about a I our of deal motion. of driven volume it a So predominantly -- industry. And growth BXB lot this

seeing are lot deals. We're seeing expansion. We smaller a of also

of So another the about also has just That's as three I I Siemens, last the for well. talked examples. talked last in quarter one who example, expanded quarters. to one

to that seeing and So motion some in well, to we're overall and of subsequent growth. land leading that it's orders the being working field expand able

pleased business the that of So across both and the perspective performing all from are a as rates product a would we're with I well. very well. say growth the overall perspective also regions geography

Scott Berg

any they how to license maybe see likely had preliminary about about last wanted some XX% to thoughts talk this growth composition into but thoughts year's gave for level. number, revenue are on number. And quick you. too you year, than early then a Stefan, on a conversions 'XX you. Thank of it. that lower the number, growth some revenues that and It next if Got on XX% additional any one, the to guidance be might for Thank you customer of on

Stefan Schulz

your slightly that be leader the in that'll year-over-year. we Yes, XX% I that the right. hi, to up you're be to XX% will growth. XX%. driving What When you we tell our Yes, flattish expect did Scott. point, that comment at in to we subscription again total, services close is can to And so I growth be to think looked

our that of new we're giving. guidance about impacts as there revenue. away the this talking into that a here and impact. is impact within maintenance numbers a a business. we're has going it some migrations to We'll of of moved as about we we've total, nominal We at significant have migrations pull a couple number. what the to quarter. single-digit and mentioned And give expect to theme some subscription of to think our be in our you and to and drive to about, the it, that the last number. that our revenue kind our XXX, I talking we've XXX license start about growth a in have here on then we're be also number this I said that's on help last recognition things this in then is a upper terms would the coming minute tell again talking talking But away and number, for of end guidance, standard. than were that And licenses the a, to hit will significant slight color I'm not But I shouldn't from will it SaaS that going by on maintenance X% to of maintenance, to sales. didn't the year, been to ago, is say -- But Only rate for but the maintenance. ties figures that the revenue occur, which we inclusive will half the from subscription add I all color And And call -- while of along, and we once had did years of the this the are was And expect recurring down. we impact kind migrations. of Nandan or our number, decline be on-prem It's mostly driven topic, revenue, when put point X% that would around a your the have what which Nandan less on, these couple wanted guidance there's

I some wanted been that by so, virtual commented free also the color that standard had incorporated in year degree at guidance expect when you forward rule, cash significant significant we improvement So a the to to clarify which it year's a and then XXX million cash look we're I we we're expect by $XX muted to would you move. that see And a this flow, million flow number we our number. do going last just burn, commented that free tells see of one breakeven this our to we're million, looking a better And $XX be to year to giving. on subscription to approaching which has be next $XX that achieving thing that revenue of on goal.

Scott Berg

it. you again. Thank taking Congrats Got for my question.

Andres Reiner

Thanks.

Operator

next Tim Securities. ahead. Klasell from go Please from Northland Our question is

Tyler Wood

for into quick second versus a Tim. ramping This is you sales where headcount, you and that on half with the of bit then Wood the are tracking that on out year, additions color 'XX? laid that Tyler the you of one see how the at for on A maybe

Andres Reiner

about the year that expectation started XX%. end would of which delay. added to And last the what quota say due little XX are year personnel. We we to XX we a at quota QX, weeks lower beginning a right at we that exit expect personnel, than a And bit of now predominantly I the expected would a had was we couple this in be delay recruiting of -- have up from tracking at carrying little to about so Harvey. carrying of bit would quarter. Yes, that's I year-end and say what already

drive very preliminary we about in where are, in good 'XX feel our numbers for we the helping outlook. and Now,

Tyler Wood

CPQ or Thanks, they bit are seeing down showing product, more Are that's there? seeing how much the I'm often? then helpful. are market a on up sales on And the force low-end, you competing you

Andres Reiner

sales do simple them areas force that but the competing especially see are a we bit where them, do in around quite the in see in space, see the market. capabilities. we We Those space, plodding the

Tyler Wood

a all thanks All That lot. from is me. right,

Andres Reiner

Great, thanks.

Operator

is Our ahead. next question Please Craig-Hallum. Bennett from Chad go from

Chad Bennett

WYPN talked contribution I guess, the you taking if was, can the -- about subscription in you you Great, us thanks our us I questions. just more was for in Stefan there? and specifically my what give with line revenue tell color than it quarter, know expectations can

Stefan Schulz

so subscription of with it that guidance, was which recorded the only quarter was Yes, it's laid consistent. million, kind -- that $X it what over out quarter very a we just when from Vayant, so was we is and gave very in last consistent the

Chad Bennett

your I then, what this are ask, Vayant? And for quarter expectations for if may

Stefan Schulz

see grow; Well, we portion expect should year, the them to do Vayant say. only we so of a obviously portion I of had for a the quarter,

that, to that number expand so double. month-and-a-half, that, we me something was surprise an extra get month, as So, wouldn't like being close we'll

Chad Bennett

is question Got it. Perfect, of on And the there I the I maybe you next again, margins, there could And expect investments, have subscription be would investments one made thank all where you. think you of an exit maybe any you type then another kind maybe or of but know for gross guess one-time of Stefan, detail, year some what expectation type improvement the should quarter? this provide? that could don't current for we you range that

Stefan Schulz

past we could, our ahead I as one-time how the really XX it, we agreement best in those internal the the guidance that we've consolidate in we see that quarter. about consolidation. new cloud -- for we and margins middle and and to renegotiated, to have our our this that more days. we XXX developed the many but we have providers, today of including And in-house next, business, migration, as call business answer still several provide interest we decision And your a call the major over of cloud our the agreement provider where question did I'll more can't provider. really had we our with behaving cloud on to have exercise, we the to was major costs it's I reason And go when datacenters, of of as we going, our I wanted datacenter we're -- because the that have see that made just but some datacenter had our These other is that cloud, provide just some planning really high-level just Chad, color Yes, next color do and selected quarter. on we

in that. we're I in the you improvement QX. should would tell of middle So, see that a we slight

the the one not on part start we'll will the XXXX. rest as of period But is and actually on those that it through work. be then we see we're in old, first is, consolidation in some new having of one over. a to where because time two migrate of And we'll of quarter, this the cost for We the reason migrate costs; see migrate the all

and So see why slight or as again improvement happen. make in consolidations you'll QX, a say those we QX migrations in slight improvement then I a that's --

Chad Bennett

Got then it, off. I'll for and me then last sense. one hop maybe makes And

conversions all up, to or the are thinking XX you picking kind SaaS X prior has maintenance to changed any there? into we dollar from that conversion, next are of year, especially still that's Now trends are different at of range that kind seeing thinking

Stefan Schulz

of and the deals, on but modeling some modeling, the terms few have benefit. around But a And so we we talked small, rather because in how X to know don't because think XX modeling high. to is can to migration in because think case. than about a it XX the to might other In XX, you in know, that's more cases we a is X, the impact, XX, a and XX first I really what to about requirements migrate signaled less X are does terms we we in depend relatively when going do which where is really we XX XX of side. be Yes, the happen, X the it's we what around compute of what in that's going recommend is instances, and ultimately X terms are around historically compute would products over have we've it requirements said ones

Chad Bennett

the Great, thanks color. for

Operator

Jackson next ahead. Our question Please JPMorgan. go from from is Ader

Jackson Ader

the -- Great, I contribute from it contribution revenue, the Good The evening, guys. so how million Vayant quarter? from to but deferred our recurring did thanks. understand much side, how question revenue balance $X subscription much on in the

Stefan Schulz

of upfront of quicker a has much, billing then for model turnaround. year is program. a Vayant's much renewing a little. and monthly/quarterly year very more It's of one a Yes, a later; not type Vayant

So, the revenues very was very, impact deferred small.

Jackson Ader

all? there to their plan at contract Is okay. change structures any Oh,

Stefan Schulz

We No. their model. like

Jackson Ader

And maybe any the quarters in the perpetual of seeing with smaller quarter maybe that Are back all us lower Andres, sales can deals more extending revenue XXXX. color but closed I like deals being you would average each XX%, you license give ago? up in on is years they're prices you deal have they previous been, Okay, get who were right. landing you going kind than their a that revenue then, of deal subscription where to were volume couple seeing with Siemens, back you're seeing imagine

Andres Reiner

average We're tell think, be XXK, would on tell hasn't I naturally and expansions, data just more we we which had, seeing or model are the bit with you to I XXXK, in a small to little deals, because what the but been have ramp going may XXXK that significant future XXXK, is change that continue like traditional on spread We on rather you're the to much have million you you companies ACV I around the is way. that expansions then the some tell ACV's tripling disclose start their you have around is that side, to around user and sizes, the been would wide of variability. momentum more gaining we're Yes. start then the rapidly able the so What faster that in number doubling to I Actually that to account Siemens our up. have just perfect a would there's the side, momentum a a average. I first countries and higher ramping tell you deal and of deal you dollar continues ACV expand these of example under we you size, lot would seamless it's BXB deployed, travel because range. expand a plus variability you're And said faster. as the allows

and expand the very is with how we're So, pleased land working.

Jackson Ader

guys. Thanks understood. Okay,

Stefan Schulz

Hey, there are still? you Jackson,

Jackson Ader

yep. Yes, sir,

Stefan Schulz

Okay, model to a we on like it I thinking a Well, Vayant and Stefan. of color model. intentions good. the have little do changing Hey I your on Vayant this question just And wanted the basis. that. standalone on we is was no give about

the and together One of do transactions the PRO in did selling with we of like see key was of benefits couple actually we solutions, when some of the that, those Andres acquisition it a mentioned, QX.

We will -- model you that typically the PROS in go with scenario.

annual, So, see that customers products selling of terms being to as we products some you'll deals in model but Vayant going they have. more and that you said on stick of the model we with itself, which QX, by see in us that saw we're like do the the with of more business our in consolidation

small a So, just clarification there. point of

Jackson Ader

Yes, you all Thanks. That sense. that. right. for makes Thank

Operator

from Roderick is Stifel. Our ahead. Please next question go from Tom

Unidentified Analyst

first for front-center, Yes. guess, go ecosystem the that question there partnership maybe to Hi, much Microsoft the some around I around in messaging. messaging the lot of had revolves of market a [indiscernible] that on Matt, seems to more be sales Tom. force you've

little of to bit product take of around to Microsoft. how Just companies be, and to go also both an strategy that market then advantage at you're terms of overall positioning wanted especially evolved a or how to see but has update growth in product the that

Andres Reiner

possible significantly on the and We're like tell significantly that's best-in-class are we've running Yes, office innovating platform that on the And globally. full on that's Cortana SAP integrating we force Dynamics platform Dynamic make was also have Oracle also stack, Analytics, to with are And to we co this customers Azsure capabilities; just really online, CRM, around sales I solutions the and that drive solutions and investing that customers. front. why Microsoft the the that sales market. for SAP have capabilities predominantly sure are those a best in innovative we with you the customers would integrate and force support we want Microsoft our suite, and both integration product on tools CRM with solution other to for great. the

our in their from both of currently; their helping have So, that a ensuring integration, perspective and we're ERP with value seamless strategy a is on product solutions landscape our CRM fronts. lot of customers that get they the technology most

strategic about On the we're globally. excited our partnership Microsoft very partnership,

in strong see to in continue We co-selling market. very particular that momentum

on good as ecosystem force sales well. the see momentum strong also We

Unidentified Analyst

partner Maybe should then, versus And PROS-led into on what about more looking think later kind the how's the they in of pitching the where the the mix in at we later and in there? Source on them then deals community; flow terms comes deals SI bring of SI process? going together that mix the Pros deal been a partner

Andres Reiner

Yes.

have very geographies our of program Deloitte, continue and participating them Cap industries. Accenture, a of partners we and around SI to especially continued we our to XX% So part important deals, strategy, growth SI like be to have around different and Gemini, approximately continues different our that

Unidentified Analyst

right. All you. thank Great,

Andres Reiner

thanks. Perfect,

Operator

the closing concludes floor over would like back you. comments. Thank to This I turn the for question-and-answer to session. management any

Andres Reiner

on and you today's like caring. you in core strong market ability forward solutions. participation values and We're Thank ownership to your embrace also next customers, call. your We end thank note and our at thank to our continues I Thank year support. confident the our on people look our simplify our innovation, with to shareholders We of to for like would would you a speaking our call. to goodbye. incredible to as for the commerce partners, continuing continued in for PROS modern

Operator

today's your Thank concludes for conference. This participation. you

your disconnect this time. lines may at You

PROS (PRO) 26 Oct 172017 Q3 Earnings call transcript