PRO - Earnings call transcript Q1 2020

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Operator

Greetings, welcome to the PROS Holdings’ First Quarter 2020 Earnings Conference Call. [Operator instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Shannon Tatz, Vice President of Investor Relations.

Shannon Tatz

Thank you, operator. Good afternoon, everyone, and thank you for joining us.

SEC found a section on website pros.com. release, call of of press at be can the earnings filings replay and today's our Our Investor Relations Chief call Officer. Financial Reiner, With Schulz, is on and Stefan today's President me and Executive Officer; Chief Andres

hosting our are call with of how today, three homes. team global Consistent from operating our is the us this

market financial our Please and pandemic including, COVID-XX without statements Actual will include strategy, business differ such note future forward-looking materially that our the there the some forecast. statements of the significant opportunities prospects could results in duration and those uncertainty of around projections. In commentary about and is today from impact limitation, particular, our

COVID-XX on company's and results best based is results that estimate the a change outlook means the of time today. could as of information and available on any business This impact at the contemplated

statements assumes or filings. more to update refer our For please information, forward-looking SEC reflect the risk in no obligation described to factors future PROS to any circumstances. events

As during metrics. will we a discuss the reminder, non-GAAP call,

each non-GAAP measure extent With comparable the I'll release. to without earnings call between which the to you, our most over the turn available in measure, effort, to GAAP unreasonable that, directly press Andres. are and available Reconciliations

Andres Reiner

during are your thank global Shannon. Good and of impacted safe. afternoon, with health for Thank you behalf you, on and crisis. hope families everyone, you this call. are us those all On and I today's joining PROS, healthy hearts our

driving shift execution third, strategic on our response: first, selling. ensuring markets; to well-being fourth, In support people; of and digital the customers key COVID-XX strong help virtually; innovation and remarks, our the my four business prepared companies accelerating to and I'll to second, aspects continuing focus safety of our

virtual local mandates. customers, First and a the we of global our matter and moved our is our priority and and government team people, safety to environment of foremost, days work in ahead In of communities. partners mid-March, a well-being our

continuity more business Stefan team will share Our flawlessly, effort later. and this on led the

is so safe, our I'm Today, companies team to committed relentlessly families mission our to supporting outperform, on people even balance and continuing thriving ones. loved helping and and of that thankful to if they their share execute

teams executing a I'm business proud across well our in that virtual are share to environment. Second,

virtually. our we been virtual areas and continue of focus motion, One prepared adapt kicked team In a to our has projects welcomed today's new more was across customers strategic go-to-market to sales companies. new industries driving first off serve to quarter, and the environment new so well many

incredibly to and QX, our selected platform For strategy example, in navigate go-to-market environment. modernize our Nestle their complex demand

also welcomed platform thyssenkrupp a example of power experience full financial digital QX that and they We commerce in new online. how our to companies to a Materials sell a as winning strategy. And customer one selected digitization provider payments help selected after helping solution their PROS is last customer, we're Services deliver

Our empower to shifts smart rapidly offers marketplace CPQ their e-commerce will as their them personalize online. capabilities

We're selling thyssenkrupp customers journeys. excited with and new partner other digital on to Nestle, their

experienced we've customers continue our result the pandemic. relationships as of welcome and current we customers, existing sales some While expand new to headwind with a

expect, we've you'd industry. to As the facing slow significantly airline sales the unprecedented travel due challenges seen our activity

on lengthening their to as our pause sales some plans. prospects of saw BXB also We COVID-XX cycles focus own response

and help solutions excellent our these job companies is of highlighting that our how world. them team digital-first engaging We're since with continuing do confident ultimately in a sell to this opportunity convert we'll an

our are existing customer-facing engaging of customers. and a Our supporting also job teams doing great

and success are customer fully training, customers our serve equipped implementations, doing support so today. teams to remotely, they're Our and

they Japan's migrated cloud airline, next-generation fully as a go-live ANA, largest we virtual solution. revenue example, For delivered our just to recently with management

traveler markets. emerging part and Since forefront the our advanced the our well-positioned able most to they the that to has lean of forecasting is third can at so newly we're in our our be we're across to of operate virtually patterns. customers response business, now demand COVID-XX adapting exceptionally capabilities helping which ANA to strategy,

deep thought industry come selling leaders experts, a scientists, and their and expertise. they've of data bench have and share domain pricing together We to

Over the we've a did past webinars hosted different free weeks, sell companies consulting services several weeks and totally marketplaces than digitally that ago. they to in the launched just help look few

way so very a many for so and participating, to over truly I'm positive leading with had our proud X,XXX companies. people the We've to team see response recovery

of our good partner being and today more. some customers, a For supporting requires them

than As our many and We've more of to through customers horrible solutions of you the challenges travel for PROS mission-critical previous events SARS supported X/XX. delivering customers years. been XX has know, like

industry. But an the Therefore, some providing unprecedented most our we're through having payment the short-term reductions. is deferrals customers to relief current subscription or struggling on temporary one-time the price impact of pandemic

reality adapt. they confident proud when it their to Today's industries, now are We helping customers that across customers the is playing our continued companies for extraordinary an helping will and solutions decades creating in need these challenges come. role the loyalty for I'm our of most inspire are

than solutions that from few weeks a different to as Our just ago. important have dramatically more ever companies are now are environments respond to

example, customers go-to-market For channel dynamically typical solutions are completely as disrupted. demand solutions glass And been across have globally. One selling manufacturing product largest such are of the is our motions our industries our helping their building BXB and react their extraordinary Saint-Gobain, companies helping one and to and changes digital case guidance pricing companies mix. in

XX% the about Before of Saint-Gobain online. did of their orders onset COVID-XX,

XX% are our that only reality of orders value mission-critical the powered over the through and nature provide. CPQ. The today solutions their done Smart online highlights platform Now by of PROS'

is the recognize we than essential. our industries serve and that customers more digital Now ever, selling

at transformations, on solutions and our our targets. strategy last are achieve is the heart this part powering selling revenue why innovation. the focused digital driver us is This of helped fundamental Our accelerating growth first-quarter of

and team your market our passion growth. area inspirational for support toward to global customers and our to this of your each time. us vision and Thank on strong long-term adoption, other during our reach Focusing fuel a market incredible our families, our for you advance this broaden creates opportunity further our

partners support our I'll and for to shareholders turn With of customers, to thank Finally, call to the over performance. ongoing your financial Stefan PROS. that, our cover you

Stefan Schulz

Thank all on team Andres. mid-March, call would too extend In your XXX% the a best world virtual families. I'm everyone to work around of shifted PROS abrupt to like COVID-XX and to of today's the the to my to I environment. the by wishes you, we proud pandemic. responded challenge caused how

our many experience years While plan formal situation our of pandemic, we and wanted like mission-critical this we type ago. never event a solutions to been always this for customers, developed a have for

tested working has Hurricane over natural with as improved Harvey. a time environment. experienced we events couple insights about of plan and these been Houston-related valuable virtual in us Our And provided a disasters, like

a human of well preparing communications, to resources our began shift for in team virtual and our the employees travel expectations Our our advance changes environment. regular to our XXX% workplaces

virtual hub shifting to are employee our daily. we with After where a global town remain and programs team adopted to a members environment, virtual help halls people our connected contributing

support needed data. same virtual on have our have Our security support office continuity and infrastructure and plan the we the teams, integrity to of the They our to now components the globally. customers including technology, our and their IT, focus people services, workforce. of services engaged tools At and security our time, business our progress have ensured business also increased

of our global service collaboration combination infrastructure, our planning uninterrupted our and ensured has team the for and continuity The business mission-critical of solutions secure strong customers.

comments on for some Now results. our first-quarter

of revenue main subscription growth was of over which year increased the XX% Our driver our revenue year year. over to XX% total million, $XX.X year

XX%. Our of quarter recurring total revenue a as for was percent the revenue

$XX.X was for cloud XX% revenue we million quarter, drive continue maintenance Our to our to over year down as year the migrations products.

billings over up The deferred which recurring up for revenue over portion year. of year, the up were year and XX% $XXX XX% services our year year Our $XX.X year. was X% revenue was XX-month million trailing over million, quarter, was our calculated

on moving profitability to Now the metrics.

subscription gross XX% quarter were non-GAAP in which the first last in up Our XX% year. is from the quarter, margins

expectations. XX%, with was margins were in a which services QX negative line Our our

a the of Our adjusted $XX.X quarter. free for $XX.X EBITDA expectations. first in burn loss flow million cash We million quarter, the our reported exceeding was

This quarter than of higher toward as burn end down customer collections was considerably. the anticipated the slowed

which due is company perspective, sheet, incentive we kickoff. on payments, well-positioned seasonal our the have quarter. our taxes quarter sheet perspective balance set demonstrated largely in in from expectations QX quarter, capital was $XXX team's over our balance impact at a and reminder, and the beginning From environment a first of our payroll are highest structure annual a this a Overall, cash virtual quarter cash resiliency burn As the to we time. during to moving million in the at of the with our we line

our of and taking impact travel company. on I COVID-XX strongly all to we've want outlook, actions Before see travel supporting this I impacted what turn had to the can unprecedented and today to pandemic as We're how has some swift comment committed done businesses. a first past. as our has we're then customers a We in that on our customers

assistance place So require customers despite contracts severely multiyear some we're financial that full service offering and to impacted mentioned, as payment Andres in having full at capacity.

services our strong cases, customer future this our that years. are obligations appropriate and these success. reflects and/or view customer expanding We commitment long-term we as service in also an In limiting response partnerships to

assistance estimate the hardest have a reserve revenue and of customers subscription reserve pandemic. for second to impact approximately this million the financial we been hit affecting addition, a $X.X applied certain In impact in have most the with revenue quarter, We from revenue. the negative be that from

in win from recovers. prospects to business, by opportunity impact In businesses. impact market mission-critical on sell and seen vision a remain the Turning the expect as solutions vision COVID-XX as We have BXB the now providing in confident customers on our our necessary lower their travel long-term customers of to we weigh and sales, delays our our purchasing few of XXXX of new this they digital the economy our in bookings represents. BXB some industry much we the our

and for opportunity, Andres XXXX, As We've continue ranges. $XX applicable portion are million on as the programs in of second as profitability measured from initiatives. guidance strategic savings we we investments. quarters priority and These noted, programs to quarter capitalize savings the the to within lower our deferring invest this but and included our last cost much largely of have being is come expense will in innovations three identified to

like natural of a are reductions byproduct expenses. cost the environment, our work travel virtual business of Some

hiring is macro Also, positions. assuming improving. continuing not new personnel Quota-carrying throughout quota-carrying staff while we see have personnel first reduced personnel, our the to the year, in slower signs quarter, were positions that the we to and key plan environment down additions to have are add we we for our slowed hire but

outlook. we're our move significantly global I'll economy COVID-XX. by thinking Now has The on share been about to how impacted

cannot We environment. customers respond result, annual how to and pandemic And establishing cannot customers, weeks predict will we months. uncertainties, of Because we prospects guidance in more coming significantly for our the a difficult this and is our how these this predict as affect long our pandemic withdrawing annual guidance are this in will XXXX. and

our Now for time, while we're we are at second guidance guidance annual quarter. providing providing this not

we For quarter. the anticipate and total $XX in million between revenue, $XX a second range million

revenue the million at year We million, expect to the $XX.X over subscription $XX.X up to of range in midpoint. be XX% year

In small impacted on $X.X addition million further impact products. by will mentioned a impact and relief portion lower of I negatively million travel and the revenues COVID-XX. anticipate this to revenue the from our from volumes driving we lower $X business QX earlier, project include implementations the approximately our of temporary due passenger revenues delayed reserves another to on Examples our be owned

we strategically tax adjusted And EBITDA forward at XX% estimated of you to future. you upcoming quarter in are non-GAAP environment of and $XX.X second be anticipate your per even to shares and execute this Thank events. current we between with to share stronger the based rate million finally, quarter, with basic on through an Overall, range support the the $X.XX speaking to our million. the look for expect per we in outstanding. an loss and become $XX.X financially $X.XX XX.X our PROS, well-positioned million of and non-GAAP estimated for share a loss We second in

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

Operator

with Needham Thank [Operator Berg instructions] Please Scott Company. Our question you. comes question. proceed with the your first from & line of

Scott Berg

and virtual Hi, taking Andres thanks to Congrats move on and to able for successfully questions. environment, Stefan. the my being

Andres Reiner

Thank you, Scott.

Stefan Schulz

Scott. Thanks,

Scott Berg

can travel of snapback this how variance term the guess in segment. the and forbearance back assume understand are certainly travel the, levels have I guess, something to some the XX%? $X.X I Stefan, probably on short I traffic I kind Or those the give – guys there travel half, kind start that of a as question at desire those should But on I of million there snap about I second the your same the some with of let's lot is expectation that question that you of returns XX%, in some we thinking the And XX%, know, we is, revenues? there. And makes in to the passenger way sense. customers, is there's see other it? to that about don't think

Stefan Schulz

good Yes, of to Scott, bankruptcy what component situation. customers we travel the are question. million million, around all there. that's in the the the risk spent is did one, to both that potentially quarter world the the totally lot of time a that's being space. customers, be and $X.X a probably of is we've element with BXB the is over we on, biggest in What in And $X.X honest, done And we made at an of talking last our what assessment a

probably secondary to in which the question have as most customers. of impacted you're lot to as a then much the component raising you've news, And the seen as impacted is, been gets the some we've airlines of relief some these And of XX%. to offered okay,

was it team, something based on today. what a see collectively, And decided so do that as we we management to

future assuming things do of back, be in types could that kind So things certainly see same and of not to see impact point, yes, relieved your we come these quarters. the

their as prepared unique a – a the individual we we use that that. business of based my on program, also program. I word talking work indicate And remarks, also that it's were also something customer each sets but as circumstances. in of about, not not I relief a well that it's – I adjusting programs we're will a made we result It's models, with these comment as

type I your call it, or, think, the this a nature of to yes, So could be of temporary so term short question, more situation.

Scott Berg

then quarters. desire, helpful. cloud, the or the business to travel transactions you and, but difference a product term And it, moving do see customers BXB that Got your you to not conversion signed projects, there's at in – their prior legacy for over short your look their on to change those as complete today any were whether customers customers several ability the

Andres Reiner

see power see If say if opportunity shift. this migrations, Scott, this we companies the is cloud, to that an on to BXB of Andres. would for opportunity a digital Yes, Yes, to move use from major selling they – I motion. the side, don't a more anything, we to especially think of

of Those are people side customer just more to would where I a a of lot support migration. opportunities. is a Obviously, short see on term not you the think, the the are because pause there on travel,

But on So I there, some. expect any I the slowdown. would expect side, BXB wouldn't

Scott Berg

the have back Thanks I Helpful. to it. queue. it I'll taking Got several throw for my questions. but more

Operator

you. Thank

proceed with with line Our Stifel. Please comes your Roderick of the question. question Tom from next

Tom Roderick

Hi, Andres. Hi, Stefan.

hear you're you're can productive the in and this staying both healthy glad First to environment. as team is and and healthy foremost, be that

So well on that. done

build Maybe a of of exposure. relative off the to exposure like quick what remind us I'll back could And airline and perhaps just question just kind that step you looks take today. Scott's

are us model, it through passenger levels. a move test tied particular, that just think, of as would different of with revenue, element transactional and I how ballpark, an and XX% But update talk levers you the the but great. the to it's components your the stress of customers, historically, take XX% or to that numbers be been on on kind in in bit in little the perhaps play the to that

stream stream get in as one as trickle the levels through further revenue in million how Would on, potential things that Stefan, being flows cadence low there good don't back that the then, you through passenger And is Or that need follow-up related of? is reserve as $X.X here? – there. for downtick the worse of a hear this aware much come love is to quarter to way be there from and start just, and we assuming a to the second we that a about watermark, the just variability cautious to sort we about revenue think is to the being model bankruptcies you're should think bankruptcies and

Tom Roderick

But thank Yes exposure. the think – But the we XX%. you things was there, you so been but is our component has most talking roughly asked for And And of our the a the BXB no historically this the in and – question that of businesses business. Tom, that, about first feel been our I we to to health BXB. back – that you a related roughly lot disclosed travel comments. think about in time percentage of terms to growth the one our I was it same recent we've versus higher your

And where so to less been shifting little on the a over and time, that percentage side. it's has little BXB more travel

trending and I less going So then question think to more and relatively And and your BXB. more the and mix. to more i.e., that's think that it's Based or representing as we was to see million that travel, kind the And to I today, the in we reserve the more around see place. feel be watermark BXB, about been $X.X less very whether on of what not, a good we tell. honestly, we put difficult that low

The of I And happening the like on low on, yes, And or in impact this from could earlier, But right our back are say not our less the then it's it point, we second talking Scott's whether industry. based an perspective the And press today. to absolutely only going to is come if not. very in but where what's to the and watermark in customers things call it's the to it's half in difficult good year? yes. about what's observations feel make that hard to said is And now. reading the we absolutely future answer start of be

Andres Reiner

our that Yes, variable, $X very, a have of very so model. to this when and of variable, would little tend couple is say variable we I Most is model it's and really impact due less of add to on things like is, of airlines I much your a protection in prefer there's a it's model. million, how than lot question Obviously, to don't downside, little. very the a would type

them, some that's has worked for there's increase. not three say a come long upside, support would us the decades the model And for when And where while And to why there's is related areas we particular an issue demand significant in doing more not now, of the of that the For cost a short-term there's but these variability the will back. travel relationships term. I look, supporting we're we've travel in passenger in had – them contract. think, spirit

our plan is monitor because, to important with And and start start as long-term technology ever their can they our recovery. forecast as technology, to

digital We that areas digital also the in travel are retail forward back. selling think offer to come our industry be to they push innovation and continue optimization and going around that they as

we their to like. these continued recovery there's the airlines innovation believe many desire and that what rethink to So of that talk we And opportunities. about looks

demand term, they very short think seeing a we while, strong opportunity So long term. change, a are there's big

Tom Roderick

just of on the second side. to Yes, that my BXB and question, Andres, gets kind

theme as does heads understand heads assess acceleration there you are be where go-forward of sales of look senior as with believe And how having their BXB-based near companies, digital staffing can pause add to inform that a to this what what executives sort you then lead sheets they there's conversations an that look that on But conversations of the here? balance like, spend. in they transformation? just having you I you're will As term your

Andres Reiner

was a pause us don't and a there frankly, for No, – my question. March that's did belief companies think customers, was move – lot virtual, that great because wasn't whatsoever, a move. to see and see to that would I it say it down. I in didn't an they my were pretty and easy for our we prepared Look, is, the while small of believe we and an think I things whole spectacular, as team slowed I move, commend I And impact

do some prepared lot of And lot did early strategy. ones pushed around see April, digital going are virtual March, plan We a for intentions. a that more deals the an had and to a closed we that of companies We in a fortunate believe about that, implemented the this. weren't Saint-Gobain, want BXB, world. of one companies were action I they in out the think talked of really that

is invested we being, their business was when of done technology of and pretty XX% across are think our stories think done all perspective, we frankly XX% has is COVID, the from only shift this a curve I sales many we of food been online, BXB the that their industries, channel the While And that is high. activity, mix had customers have And capitalizing. of during across of target online. in dramatic business But important. the ahead time our very say, happening really industries, would even more

I the definitely, more believe look, activity say, a that we it's seen than digital sales are do any or and it I to trying ever. around in haven't now of important But companies And more because transformations lot understand them. in interest. to lean anything, means are impact the to terms if to and as more of companies So would what going

Tom Roderick

the Appreciate queue. outstanding, in Yes, that's I'll jump back Thank really you. color. it. good

Operator

you. Thank

question from Please KeyBanc question. Our of comes Capital line with Jason Celino your proceed with next the Markets.

Jason Celino

it? Specifically, questions. did more what see saw the Hey, you where the may Good as And impact? some from positive talk business, guys. BXB off my about seen building Thanks what have within maybe hear to trends? think can different you question, Tom's industries about for you segments everyone. I maybe industries But taking

Andres Reiner

you, forward segment, transformation around industries would say, impact are digital seen BXB remained would look, across interests strong. on look, BXB, in I you've some the the and tell Yes, moving I like automotive. initiatives obviously, overall, But

lot of everyone of moving of operations. their crisis business were I companies virtual addressing kind and facing their a think

demand. see we overall, But good

Some area opportunities areas travel that seeing questions in been as resources sales of fact, one resources, logistics, uptick been for to have that's of we're put into some around BXB an we And demand. have on cargo, well, our in example, of allocating sales more the BXB our opportunities potential areas a pure platform see given carrying lot for are of and selling an carrying like air cargo bellies, that of and is the airlines market. BXB logistics, which longer where players that cargo passenger on were no cargo in their giving opportunity we're cargo

Jason Celino

Okay, great. And Or ANA Can kind was I color maybe it that – maybe earlier around the completed? any – appreciated was your when you that if mean, implemented comments in how was deal. around about of talk quarter? I

Andres Reiner

to Yes no, was completed continuing. it's quarter, mid – it late and

overall, a And cloud strategic and And feel on they this us that and relationship. we – innovate them. long-term a was very they're are So carrier platform. flagship forward, next-generation ongoing for continuing look, for solution to moving

Jason Celino

a back Thanks get queue. lot. I'll Great. in

Operator

Thank you.

Nick of line Please with Craig-Hallum the with your from Group. Capital proceed comes question Mattiacci question. next Our

Nick Mattiacci

I margin Chad throughout had from on QX gross subscription about for and one This rest see how a tick margin. question it sequentially gross QX. bit on Hi. little is we to should think the that Nick year? of subscription down Bennett. just the I the Any commentary on

Stefan Schulz

data center in actually. from margins over your did Middle Yes we QX, East, the a the a down, new no, – point, to tick because year although did mainly year sequentially subscription make up an investment gross have on

second of impacted in build on And good going that But talked even a and I about quarter million forward, the $X.X the and so maybe an out bit. investment we into us. we made our that your a first will portion to we that's the as to impact think have look that's the of point, reason impact beyond, what the margins the quarter,

so And will I that a do down where be from were, ago. say, year think they they slightly

XXX with points at that's come our margins I this you where see effects basis dealing time, during full can to XXX think COVID-XX, down or of temporary of period so. I the think a so And – expect or we're least,

Operator

Thank you.

your question Our RBC proceed of line Robert Markets. Capital next Simmons comes with the from Please with question.

Robert Simmons

my taking trended historical at Hi. you're questions. to look I'm kind Last it bit back level? of versus maintenance so Thanks for it's kind by year, about challenged, just churn geography, lower how far get talking or and cloud year vertical, more far? of a little it so to this up wondering trying does by has a by range. How

Andres Reiner

No, improve. saw overall, an continues didn't slight We on than see churn perspective. but last best-in-class, improvement over still XX% year any within to – improvement risk our and rate our better that

Robert Simmons

any Okay, better, gotten gotten and same? different or it's think, can give any there Or any Do on the kind areas have are less segments? worse? the that you areas of you color overall, more

Andres Reiner

it's would look, across. broad And customers think I lot now pretty now more right would say, need more – us I a than ever.

support as there's if travel, in channel your mix, I critical say, increased it mix, understanding about your If has prices, ability of you product your when And as changes, real-time be to the in pattern would is or ever. what's happening make think demand pretty customers to if you're – our our BXB whether having dramatically. you're whether anything,

on do we how customers our or risk our been has to now mitigate to to bring what with opportunities take actions they them. of lot a should efforts help the And

our success being our there getting about was So talked to I closer to customer first and for We're of would say, best-in-class. to areas one I them. even that focus support customers. our to our strategic being them look, customers continues be closer

in an organization support attrition we that mission-critical point. our how area at the technology is not them, an to concerned lean we're and need given of So this as

Stefan Schulz

temporary not churn not viewed as given churn, back from that doing perspective, Yes, we'll something the right? and to to add consider relief contract is a we in to norms a a to something temporary Andres' related a comments, This that we're while. anything and that's be is

Robert Simmons

to Got in what cloud and contracts it. is correct? Can annual, the this – That is – your of life talk sense. you makes average

Stefan Schulz

Well, historically…

Andres Reiner

Yes, go ahead, Stefan.

Stefan Schulz

much for Historically BXB two deals not we've historically, can on we'll and But we're work as years selling two-year so And was travel. some we cloud the for – the you place I'd sorry, as here, more certainly that. to our in between years case and started seen recently, range. on the when average as tell, solutions. three coordination, same we've one- to three seen five say that in

three-year terms But little see of lock terms for side, we travel see in then come duration terms like they in as in be down allowed our the contract longer time. flexible our is, a contract of and us to the quicker have terms bit on implementations, reason as period Still gotten as deals still longer And length. the to better we've a it's and more well.

yes. So

new somewhere deals – now can but still to and are two between it from years, three they're say say be anywhere years. three I'd I'd one

Robert Simmons

Thanks. Got Great. it.

Operator

Thank you.

Our Please comes proceed Wood the from with Securities. line with next Tyler your question. of question Northland

Tyler Wood

thanks question. our Hi, taking for

seeing, short kind think to the past, if environment operating talk and of you. for the the any Thank new you've out that term of being of between XX-XX could of in kind and mix longer you customers. you new that the you kind term? business shaping we're where see about potential I mix like new talked existing Kind shift that of about then see with

Andres Reiner

travel is why XX% about part Right it's in that's now, is new, been XX% talked typically, great more what no, new Yes past, because, of as predominantly we're a question. we net the seeing existing. that And – existing-oriented. has

market opportunities sell of would but net there's of be XX%. lot more for shift year new this And XX, I There's great new. and existing as net stay opportunity that to to say expect tends it a expand to new range, I in being XX% us. a lot we And to XX more BXB,

Tyler Wood

Thanks. right. for That's All all me.

Operator

Thank you.

Zlotsky with comes question. with Stanley. from the proceed question next Our Morgan Please Stan of your line

Stan Zlotsky

everybody on your And so Thank you glad okay much, Perfect. is guys. end.

a maybe my end. from So couple

up you're there seeing on versus seeing When to out, a as you are existing. following question and I quick than other? geographies then have that existing? that of seeing skewed you're then new more a impact it you're seeing Or across that activity sales the the others? just one overall certain more And of as far And globally, follow-up. or where the an on second push mentioned the longer are Just ago both kind like you is new cycles,

Andres Reiner

Yes question. that's great – a no,

the April lot new were the pushed in in So were some frankly, some a Look, companies and first March look, some pushes on March that to scrambling. think just and existing. had pushout, I that of that we were deals were of

existing forward that was I not. move think don't or to tilted really versus one And what new

change push I they've be of in timely just getting more think more to the tend already But we phase say of saw time I able at they're you. it opportunities them on another so a that predictable. big forward being most between sometimes of and wasn't to moving time. – not was in existing. general, new selected would implementation, existing point, it this obviously, that They're as But through more

Stan Zlotsky

bifurcation? Got as impact? as any far it. like there's If the geographic And

Andres Reiner

would trends say, a saw well would we're out as the North an say activity impacted area bit look, But – In seeing I an looking we slight EMEA was we're overall, in very improvement America of I saw especially did lot geographic, the more March of EMEA. was and a us impact. I forward. a in area we quarter, first say that would where

Stan Zlotsky

as of into deals – right, and Are are all out looking far even us then guidance, And just for QX what the as it's around for these the pipeline? things derivative they the maybe quarter. just as the are you Are conversations? of qualitatively, cycles the sales demand second month they like, improving that maybe the March turning picking those as trends days. maybe And about you but of it. providing pushed coming QX seeing in first how back up at Got thank with or far

Andres Reiner

Yes, that, levels bit though last very be was two deals. closed, I in early weeks. harder, improvement, of predominantly especially we've continue but little quarter probably a April even last some And we activity would seen say that were say, have look, the I to strong. would they deals did

lot opportunities to Obviously, expect of bit we a expect to is of fourth BXB accessible, across I a say more where though quarter. of a an or we're was – don't even QX, quite accessible weren't virtual But of QX April And lot now. front. opportunity area very a most activity the companies in improvement seen much an on the push travel And would the where as perspective. from definitely we've business

Stan Zlotsky

month close very the or were BXB maybe close side, just that – you getting to And it. they – the Got some in of the very on expecting were deals you of out that's subsequently close quarter. in any QX? right, determined? March, you Or be of to and out they QX still to close of slipped in Did them the the pipeline

Andres Reiner

of Yes we the two we April that I in gave early quarter. a and couple closed then the first existing within net that weeks of well new One examples. as closed

we see So some. did

others pushed still quarter. some we see for did that this saw are to QX. out We that And planned

Stan Zlotsky

Perfect. so it. much. Got you Thank

Operator

you. Thank

afternoon Jackson your Please Ader the with this question comes from final JP Morgan. proceed with line Our of question.

Jackson Ader

for taking Thanks guys. questions, Great. my

one million – million $XX something you, annual you'll is the an these charge a impact, of annual the quick that that is closer in impact clarifying second the $X.X just of quarter? to number as million Just temporary impact taking the Stefan, reductions? be the $XX temporary question to Or for

Stefan Schulz

for $X.X the for QX. the specifically million full But extrapolate so year. Yes, not is I that would

applying, your to do because to estimates – going say, changes point wouldn't of that million example, the as for there's be on. say, So $XX I time goes year, to our for

reserve some be Or identified they in are as appear we've of maybe not now. and be they that trouble as those appropriate. to are to companies maybe the is much Hopefully, going

our we a and I So yes, of It's withdrew how it's at that. this point. thinking one really why geared And not the gauge would quarter. just to fourth third hard we reasons year. should really for only a But be about toward in QX full the assume estimate the reserve guidance it's

Jackson Ader

segment. for – BXB that's of up. want the follow I and one wide first the commodity energy, a But know questions thanks year. lot in mean, here chemicals there's then Okay, a right. I to I on that. Great, And pretty the months few just I the been think of swings all price

from we're a to new probably you good time be did actual that guess, in pickup would and that try vertical, any grab in just this I see specific curious, demand a just sector? given demand So tool forecast to

Andres Reiner

to did closed an as I that areas. right now, the that mostly space. technology that, energy expand that's projects, area in did access so opportunities We it's continuing our and to industry Yes, our we say having in important would accounts in have ever. in existing is been see as see

whether of that's and technology be like Anywhere where price, when shifts, lot commodity PROS. you the a need demand, more it fluctuation, see channel, to is important technology

Jackson Ader

Thank sense. Makes you.

Andres Reiner

Yes, thank you.

Operator

concludes closing floor question-and-answer gentlemen, for and Tatz this session. I'll turn Shannon back Ladies comments. our to the

Shannon Tatz

and quarter. listening with speaking at to to this forward Thank call. We conferences you look for today's events you

will of hosted virtual Bank and attending by Baird and of We May Morgan, be course J.P. conferences June. Stifel Needham, Craig-Hallum, America, the over

We XX. will also be on marketing with virtually May RBC

date customer the our save X held through be conference October will please outperform from Finally, XXXX virtually October X. which for

questions us Thank please call, and have following contact you goodbye. ir@pros.com. you, If today's at

Operator

This you. conference. concludes today’s Thank

your you your You may disconnect for lines this participation. at Thank time.

PROS (PRO) 8 May 202020 Q1 Earnings call transcript