PRO - Earnings call transcript Q4 2020

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Operator

Greetings, welcome to the PROS Holdings Fourth Quarter and Full Year 2020 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference call over to Belinda Overdeput, Senior Manager of Investor Relations.

Belinda Overdeput

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

me In a will Our call our today's section and our pros.com. Chief of that and COVID. Reiner, without and the as company's Please is us the the earnings and there information on around at the release, forward-looking on uncertainty Officer this SEC duration strategy, our any our of differ are With at site is results future press the and Executive opportunities impact change replay Web Actual the best Today's can include and with call impact and projections. Stefan time President and commentary could forecast. note results Relations call Andres the could market of of Investor today, operating filings outlook statements on be today. from on is limitation, Financial Chief COVID teams Schultz, particular, based those homes. that financial hosting of some business such the materially today Consistent our significant including This contemplated business about Officer. results from global estimate three prospects our statements, found in of means of available

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

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

Andres Reiner

afternoon, everyone joining thank Thank us on you, for today's call. Belinda. you Good and

proud Stefan amazing ownership, subscription exceeded grew them other we've In platform, and detail to faster our focused on each our innovations are added XX% power occur partners to accelerate Industry deliver businesses to the PROS sales of guidance Innovation high revenue As faced impact by channels. our which of in challenges. is and motion to platform for on omni-channel quarter, customers. our positioned imperative the in to see the will customers digital BXB them including pluggable and by to is ever an core capabilities uniquely and our models in platform interactions come ability generation next an today. XX% The omni-channel by our rapidly they and last with through self-service and challenges AI delivered many We more innovations we stronger. partnered our to than DNA. adoption. help is that our back XXXX, analysts I sales personal of XXXX. adopt experiences our and XXXX, digital year, digital customers, sales even making innovations expect across stood Despite other that supported metrics, each our we pleased by other, we and we customers, values our I'm people each In each other. our We end supported through the COVID we customers for driven our of team, business and how range our also I'm defined incredibly caring the on culture past and across safe cover These all reflect of innovation later. which by in by results our will our and communities. kept more share

marketplaces. it platform greater businesses quarter to make and to time customers motion. selected frictionless even market their never For as CPQ it capabilities. as This and these our implement easier go-to-market why with are past flexibility in today to latest carrier provides like sales innovations with transformations better our been self strategies Speed has adjust in to smart digital critical deliver service a customer a real experience. digital accelerate digital power example, Innovations this sales is for

strong and partnerships powered company deliver companies companies powered merged make chemicals AI Anixter like services at our experience the customers global frictionless platform of XXXX. strength for a latest manufacturer like scale to deliver fortune industry our The adopting AI the develop, The strategy. technology of PROS our by adopt is embrace and WESCO our to value decade the are year, since companies Capabilities immense and dynamic customer upgrading upon dynamic recognized experience distribution continued their powered changing leading global as pricing BASF. leading electrical with test to enterprise in these customers platform. last innovations deliver market. omni-channel solutions encouraged platform ability with the such enable and plans as rapid to to prices. demand almost The platform, growth the and why better sales after of Our for digital deep PROS are cloud XXX deliver a partnership a choice market-based BXB AI real customer their across We're to WESCO PROS time.

For not passenger the by levels. demand, in will to some a pleased leisure travel back primarily in continued passenger increase pre-COVID travel industry demand and and we're recent to vaccine recovery see The XXXX markets. the step business, an we domestic see early for symbolizes driven believe improved in travel, but

other launch than family and partnership with PROS selling for innovative helping with airline's business testament an Carrier cornerstone exceptional This to to to Airways, comes no better And journey Our we and them Breeze their customer our Breeze their the PROS their startup. customers. based online. value power digital business. strategy example the new to continue a to to management technology. and We're our there's US among revenue is newest Breeze Breeze and technology our drive customers of welcome expand partnering pleased existing as is an And successfully a this selected year. forward look

transformations. outperform we culture. digital their committed our selling share further strategy accelerate a companies to this helping accomplish incredible continuing to few growth I market our for remain exceptional year, our by mission and upon XXXX by people on delivering strategy our leading an highlights This partnerships our to I'll incredible of driving execute Now before of leveraging experience We with end-to-end value customers. close people and and transformation with on plan platform, and

of for contributions focus like through organization customer scores. better of experiences At ecosystem. business of Global family more further buyers to teams as XXXX. our incredible building Senior platform and to the the solutions strengthen BXB on transform realize to value deliver further for of our personalized be the we to Lautenbach continue delivering all with class channels. PROS virtually responsible excited Center extend platform want continued Sales. partner to We'll and him drive all in technology number power which and partnerships XXXX, the the upon marketplaces. leading of John platforms, experience his their We integrators that with customers I'm PROS the President to proud of is their were selling technology to a incredibly of consumable employees in of quarter, adoption PROS pricing customer as We're to build to ever make Allessio We'll into platform to our a the advocacy market the engagement, transformation responsible committed of digital he best amazing SAP Last effort and will and focused meet across challenges to We're in demands. experience App network at for Stepping a end-to-end and our Sherry our also market accelerate our ensuring than customer system value leveraging We'll Sherry businesses we end-to-end by and and potential. full wish on with exceptional depth his Officer PROS accelerating customers. the the platform XXX% launched commerce offers role thank online our reach world pandemic traditional innovate customer for a SAP scale engagement most Chief adoption understands our have completed will we seek base. in Martin capabilities. welcome the for value Vice to go-lives can ensuring to on are market and and Martin the to I'd and and year, create our an time breadth to organizations our market our will Despite last of deliver team full PROS empower as I'm delivered continue back retirement. be Customer Simoncic. our and world and to PROS team thrilled increasing record

learn also and an in committed our resource our emphasis educational and volunteering equity make and helping people on employee impact to through inclusion. on diversity, programs groups our incredible to outside We're efforts community of Our organization inside grow. continue

completed grow. communications. can ranging from passionate in every in to certification. to In to created enter of so to to and the experience. share work authentic and and shopping has very about We amazing I'm Work the year their Great team recognition grow I'm PROS that they We Place has optimize leadership committed adversity. selling this thrive our that a remain topics teamwork together to training team XX,XXX Our our pleased of courses see over proud our face mindfulness culture team to continue our to bring received ensuring vision realizing can employees environment an selves and inclusive in

in platform to front capture this us. grow right market the and We of have strong opportunity people, and strategy

I our like I'd incredible to and our With thank and that, customers, global and and close, team an performance outlook. to vision to to you support turn call financial As your for over making the towards our like cover our for passion their Thank shareholders to Stefan I'd of PROS efforts incredible PROS. place. partners

Stefan Schulz

continue in pandemic our entire Like Andres. highlighting despite year was $XX.X some quarter to metrics. our I'll X% full which up XX% in support subscription full continue the revenue of while proud slight you, drove Andres, and start the year-over-year, that revenue to revenue also as growth million, challenges revenue in million. key by I'm $XXX.X total $XXX.X of growth execute year-over-year. was related the Subscription for team very which we customers to our at million, our The was and persist. up fourth Thank came year, subscription the year

Our that by bankruptcy. declared COVID, customers were significantly including revenue was by some that impacted affected customers

result, the retention a year was revenue gross approximately As our XX%. for

between with retention XX% of impact revenue year absent shared last is XX%, retention gross have been consistent However, the rate the and expectations and the our last would which quarter. COVID,

to savings as Starting The during was gross full XXXX. million quarter of our be decline full for last gross total was subscription original by XX% which to decline second year in $XX fourth margins during continued XX% was compared increases We upon quarter the total XXXX. plan. year in initiated quarter and able revenue total to goals we cost XX% for were in to impacted by significantly subscription revenue year as revenue. cost customers the to year from reduced mostly full investment our additional the margins of The Fourth our impact for realized attributed cost the recurring gross versus our had grow quarter outperformance which percentage year. targeted expected. quarter, improve can quarter, compares can non-GAAP in margins on be and non-GAAP for XX%. in also Full margins savings savings XX% program COVID savings COVID. the was were quarter. the and revenue XX% Our a full and a fourth the to were XX% better million each gross year. year, loss driven EBITDA the has Adjusted the attributed This in $X.X last infrastructure, and The than

ended $XX saving year approximately we up million. the For

year-over-year, was or was calculated Our the billings as trailing contract well that positively XX calculated than recurring as customer larger in the periods. annual driven revenue our XX% by onetime decline several The billing XXXX change XXXX, higher impacted decreased decrease which future restructurings in certain a in deferred month billings which events billings, ARR.

Our ARR quarter. the end of last range was $XXX.X million guidance we exceeded set the and year, at the

full of substantial generated of our in includes collections. million. of and free maintenance subscription now was the investments record more and which ARR. $XX.X component XXXX to We our than quarter exited of represents had credit. million year majority $XX.X of near cash cash significantly flow collect the burn result accounts better customer of deferrals year, $XX were fourth payment the We in cash This of access total end to the during ARR fourth million able cash XX% as we payment million. approximately fallen $XX customers. We and a in to than the our through revolving free Our a approximately resulted that contracts, additional have flow disclosed $XX subscription quarter, expected of that million offered with amount previously end At third receivable. included to and were At deferrals $XXX the line in unused million quarter, an our both

and we sales of have quota-carrying virtual we geographic and first model team our the end industry reduced number includes on started mentioned, team, along previously revenue also personnel decline aligned the we a As a temporary partner focus XX enablement. Through to increased year. process, organization sales This sales the this have at is investments in and our to build XXXX. in lines. our streamlined increased operations our an We've to of as already which

XX people. of quota-carrying throughout the increase exit year year than with the and personnel expect more We number to the

COVID on The during XXXX due impact growth in like on guidance, I will an XXXX. revenue our impact and is have Before in COVID turning reduction to contract bookings having continuing restructurings discuss business. the our to to rate would

grow continue customers. the believe uncertainty are as Due customers full our to their travel the environment, will especially did macro for effects for continued not guidance year, This to XXXX. the While businesses COVID. year related we time. in But our at just true many providing in guidance and still we this will experiencing is to by we provide are we this of caused quarterly negative variability we

million. first quarter in of the revenue we For $XX to million to XXXX, $XX.X the be range subscription expect of

to million million. the We be expect in $XX.X revenue to of $XX.X first range quarter total

with XX%, basic quarter adjusted first of to and based EBITDA and million $X.XX estimated And expect tax outstanding. be $X.XX $XX rate share non-GAAP between per shares loss first lastly, an million of $XX between estimated loss an share anticipate million. non-GAAP We we XX.X on quarter per

we're will million. believe though guidance, $XX not by cash at flow improve even do we annual Lastly, providing least free

debt. would balance sheet turn you flow. turbulent on our first this believe to accounting and operator guidance par our during XXXX, the events. incredibly non-GAAP new our questions, for In focused discounted We it support quarter change times. will of to I who you for rather presented balance. have mention Beginning employees operating we cash that the I turn over Before of will no it and than the over be closing, impact questions. we presentation your with will to I'm I to continue now convertible results I adopting be on upcoming like for helping or will debt of will convertible remain these proud at the simplify customers in speaking on our Operator? forward call our thank at back PROS the look to value

Operator

Please with And will your Instructions] a Company. be At from you. we this Needham & our conducting session. question first Thank time [Operator Scott Berg question-and-answer proceed is with question.

Unidentified Analyst

agreed company customers you plans Scott. that their cloud right these saw migrate had until to any Thanks several with the my these Have move the Emirates businesses likes this of Alex seen respective announced the Are We companies pandemic. of Hi, deals improve? before is for holding on travel for forward airline off migration yet? with they the question. like taking to

Andres Reiner

have Hi, Andres. this an to has the Yes, is cloud. Emirates as seen example, migrated we

So continue we've their to customers seen our evolve migrations. travel

last cloud. talked GSO about the to migrating also to We moving quarter Qatar

to So recover. period they as come they've stronger investing been time out this

Unidentified Analyst

companies of deals bookings newer more composition in has the deals the success optimization larger pricing usage your are the lows, XXXX, smaller that sized at company from ecommerce are needs? the more have these been pandemic the looking bite all you're when optimization seeing? towards with will pricing then and Great traditional ramping Are for BXB these deals weighted

Andres Reiner

well. seen specific both. BXB channels, to of in value in to and We've small want digital bit powering drive help to and we're lean seeing some as motion them companies sales little companies But a in to seeing wanting in start solutions of markets. a of we're so digital drive Yeah, also lot terms success start this

Unidentified Analyst

Great, thank you. That's me. all for

Andres Reiner

Thank you.

Operator

next your proceed question Please is with Baird. Oliver question. And Rob with our from

Rob Oliver

on guys. down higher. much. of said sales baseline Happy you Great. so what around you sales comment couple New I took headcount just want your as just maybe said, questions to go to year-end, then but into I very to everybody understand Stefan, for think you Thank and expected, Good evening, Year headcount, you well. you

you're So that combination And two? couple of you think towards that's now skewed that around about if realize you Was certain some think and that. a many I in be you if side. end? it. a sense questions a confidence right, at throughout you XX, us lot might would the as just go-to-market, a then, look this that more think of said sort towards or not of stricken appreciate there, give BXB result I there's needing the of how quota-carrying verticals in letter sales if headcount as year the those around salespeople year, can Thanks.

Stefan Schulz

first. the Well, I'll take last part

will towards XX to as yes, of skewed year. So the people progress we the see you the it should beyond be by BXB side, go look and more end

You should throughout go see as steady progress XXXX. we on that

In making you came was was we into the felt plans in little may terms kind as bit. personnel a signal as performers by remember, fourth that going lower come were did some were that there the well. fourth like of down we little what a quite design, quarter, we we honestly the our in down what had and quota-carrying all, than more of It to did that to we about we wanted down But quarter, signaled. went moved areas started invest

this continue adjustments, I the We in effective need environment. about But whether to we see see decision just may year. there's all go this on take grow my the those virtual in and efficient salespeople, like there's that that or the from through and made things, then the thing of there's though did not on advantage fourth understanding the as the and for and are. say, well to there prepared some to execute of but XXXX the expect last decided make as and an started that as remarks, quarter to comment changes, making, ahead throughout that look feel you to quarter, opportunity the combine do We've more be I'll when appear the we're questions we we So shifts those well. this into happening second and

Rob Oliver

starting confidence a really much. be so I seeing guys side? this Thank last BXB mentioned share point those just some That's I you now wondering, during are wake But you think And think on your But or hires there that may even to move right for that know from towards delays. things shifts there's I that that Yeah, a indicate and the And customers I guess, seemed the some guys area you has perspective, that the you pandemic they're you. macro Stefan clearly, and Andres on right. rapidly more helpful. that. sales guys would are have. as bit we seen BXB would any that of very

Andres Reiner

go-to-market of In things of about say, We would strong terms long-term I felt industries. see this kind growth. and to of year couple for a year A continuing in us, based we're on was well coming feel those look, like foundation into simplifying quite our increases stability. part pipeline, building really of last very

It's but that part something execute maybe felt a that changes of that to felt we we was important us the make, [indiscernible] strategy, to So allow the better. long-term. even

good the we're of we improvement. of and the year pipeline, terms at look the the seeing strength pipeline, As in

Stefan Schulz

were you hopefully that. able get of all Rob, to

Rob Oliver

think bit most got, thank Yeah, little very the a at much I it, it. But of I fade appreciate you guys, think got I I end. of

Andres Reiner

that better? Is

Rob Oliver

better. much Yeah,

Stefan Schulz

better That's you. Thank Andres.

Rob Oliver

Thanks guys, it. appreciate

Operator

Please from question next Roderick proceed Stifel. with Tom your our And with is question.

Max Osnowitz

BXB guys, there's last partners App Hey, this Max year and SAP impacted taking Thanks the how forward going over of want like quarter, to start work guess? also those the by Tom. of the system success, for talk just you I and how for year, with you sales on like and it's be then my integrators. said a I kind to lot talking and looking questions. about Centre Can about partners

Andres Reiner

Yeah.

the we've quarter, So in We talked quarter terms of and continued Centre. we the our about strategy, Magento partner expand to SAP across App joining talked this about last in multiple.

general, partnering are continued includes job that and we're as is seeing SAP know strongest partner an is Evine, tell XX% Deloitte, Accenture, would increasing as a and of many of more would full tell partners. strong a you SAP I that over partners partnership, customer would it's is is amazing partners which doing ecosystem majority in SAP our opportunities our of come deals from are partners. opportunities one our the base, the what Microsoft As SI partner of other a number say our the in our one the our more ecosystem. from lot the decade you, within our well of very from team I which of our I ecosystem with But an ecosystem. ecosystem, like and And And of you in investment coming into customers we're our our market, strategic approximately

Max Osnowitz

whether that's the the 'XX. still there's Got you, Airways half that that'd imagine I if really on the later. of notes about bookings about around forecast side, pretty then live you real the I kind thinking also helpful. that of know positive be signing more not But could first But kind in new go similar. airline previous of or expectation And like half first no in be year will great. seen was Breeze that's airlines, of they any talk

Andres Reiner

airline so still think I I to the areas is of think in trying innovate industry sales No, the digital motion. Yeah.

sales they the XXX% be online, the side their frictionless and passenger motion As their aspect contracts, can every can they of more imagine, business, back group as their better. their move you come to

vaccines would of - see to predominantly, but waiting continue on to solutions. retailing to expect a and did to see But of improvement. and the well the is travel the still improve. say going remarks, the They that point, passenger and a been resonating back in at with innovate volumes a So in little well continuing this we than significant lot improvement, of airlines I half rollout I digital leisure should would I lot year, management the we commented my the as an latest on be some are initial say, is very but revenue bit half, it's not prepared to I say improve. first that improvement. year, gradually better the side see last travel would domestic a generation

Max Osnowitz

Great. Thanks. That's all from me.

Operator

And our next question is from Jackson proceed Ader with your with JP Morgan. question. Please

Jackson Ader

for thanks Great, guys. taking my questions,

one how a 'XX. more growth The new maybe but in of airline just think bookings. about maybe that little about growth should just bookings the and strength expectations should also, obviously then you looking BXB - renewal the in mix bit shape and kind relative up XX? How and for the between for as we net and between of or first necessarily think for color on guidance, is kind ARR Not - here

Stefan Schulz

but for on said Andres to and my know you probably Yeah, will overall is as the we're passenger remarks, the to only going I'll has - to see be the planning as a business significant momentum And wait driver And XXXX. travel expect to grow this to to not we renewal, for point I that that. our perspective, be order new and in We're from recovery prepared a not we also for comment from we're space, well on planning least in that as in as able let building time I to BXB at think the do already an us perspective. investment but ARR in more at definitely reason grow. do

component to we'll more we put But growth then by plans driven start our growth see that, a BXB. our as travel so primarily And plans. to start of are to

Jackson Ader

then net just the I follow kind and and the renewals Okay, then of one have Andres, and new up. on quick anything on between mix

Andres Reiner

would pretty that you, the similar and pretty new last to continue I we've see would it's I to year. that's our it's so expect to success throughout standard migration Yeah, mix say maintained. existing year. pipeline. and have versus so I we continued about been XX% tell be And a year, is this year strong last

net this continue to on well. that robust obviously. the expect pretty We a new year BXB It's side as

Jackson Ader

ago, the the I appreciate on kind XX% expected this would I think range of and is closer shift there to just range, Okay, really COVID years BXB the Is what but color retention below, couple that to mid pros XXs. then of impacts the up missing? difference non-COVID XX% and function on else is that to kind still may with the or between have gross retention, a more the of continuing follow be a something impacts of to mix

Stefan Schulz

do get see don't in be that quite But XXXX. XXs, yet to we'll in back that I we getting that that, Well, yeah, it I'll that we and that's to as this XXs, type quite that than we get ready - the But would was I little we see I mid going think true. were a that mid getting be as future. do through see us to know of an that BXB environment to XXs honest. little mid saying. the back we're overall, same the in kind than a no that, higher get in having that going there's of that be We've travel your do said BXB BXB to yeah, see mix of was travel some lighter travel point, a back to component. you're slightly But We component. been certainly tell lower has you so than what of to in. we question to and

Jackson Ader

Okay, makes sense. Thank you.

Andres Reiner

Thank you.

Operator

next question Bennett from Craig-Hallum. Please our with is And question. Chad proceed with your

Chad Bennett

questions. Great, thanks for taking my

of giving terms year or at end modifications? update in you if an us just maybe Where in ended up really - kind up I wrong. Maybe Maybe we ended in dating Stefan we of on terms million but at point. where XX I'm we up? contract So you, that the for think ended I'm amendments where where of just there, around third are myself, quarter

Stefan Schulz

only and so then right. billings amount the the about talked down The XX, But our I components. the talked commented the XX bookings other about should same. also environment. you're revenue. in on fourth that say looking metrics, the Then or strong on I last quarter I two were was million from mentioned the to about three different impact it the deferral the yeah, going because quarter one deferred COVID in collection receivable QX had of receivables Yeah, had from I updated stayed I quarter. at a about talked I impact those really also good that we

were up the really quarter an ended So we up being kind update, what third because I end provide projecting what of happening. the didn't therefore, ended of at

So about that around a on for the in the and estimate the and I million the that we the itself. same I talked year thing in and ended that's on $XX it's same full we of the as impact bookings QX. $XX the impact million third about talked quarter then year landed area revenue

Chad Bennett

there. Got update it, the no, I appreciate

XX% and you're we a seeing and look plus deferred - recoup if we the rev revenue hopefully of get overall first of I well, a look if rebound were - looks they're guide again. like billings back math been or math revenue the back major in like and plus cash at kind billings growth? recurring And we some if to seasonally down this do I on only is that and right. year terms quarter But we How forth, in How so I mean, it your major And and on bookings. - just in year-over-year, I specifically modifications not and they to just unless of so like subscription are first growth, expectations year said but in do normal. the thinking payments first growth and if at down my quarter the the do mightily quarter, there's upcoming you about some know some, assume month

Stefan Schulz

Yeah. Well, I'll tell you that.

events Let call out with to will the me Services didn't part in is there component. be had XXXX talking my about are between to you year subscription vast I'd may What's of going you has your that looks that fourth impact majority part front about the of ARR. calculated then a wanted and I will start occurred your XX% timing. saw some question. we calculated a get decline, the back far the in at prepared but delta the worse now. because impacts drive negative question you're on be had remarks, with that part, quarter are billings recall subscription in the do I remiss be that what to in play to billings, of if and growth revenue. your having the When decline calculated largest ago timing going and that us positive to talk a look than some billings really And ARR, And point, we you to the of

than and a the that. you improve in of you on that the COVID And can a billings you was it's billings case other why of or on ARR in four as that billings expect the reduction focusing I far timing reason. actually year just calculated there's certainly years calculated kept just had reasons And metric. end billings, because about lower stopping one ARR the we up as we a same - that through reason ended and calculated on it's of too see talked this impact that's ARR ARR sure. would a ago, our we've calculated forward higher and rate the know impact XXXX. and well. the But Three see you still to in see here, you that for Chad, XXXX. And XXXX. It's of to you is fast growth see for Now, keeping the that's should in skew have see component the the impact exact way - throughout business, The for answer timing billings kind ARR the would exactly ARR differences also or

Chad Bennett

and here obviously appreciate No, going color and the comps I to get much. are the timing easier the

Just for one Stefan. real if I slip quick, one can in you, last

that over or I'll 'XX. going fiscal for So in at least maintenance revenue forward think hop was about much. down XX% we thanks How off 'XX? And a little should

Stefan Schulz

right. comment Yeah, to want you're I -

go But getting where a basis. the looking on billings calculated to actual improve right dollar-to-dollar this not about I the is comps throughout at comps, you're I'm year should Before question, the even easier. going

right, the get - comps but just So to easier too. you're

it question similar to your maintenance, XXXX. maintenance in that did around So the decline amount But growth back by improved. about should will be rates yeah, a probably

continue to move We continue migration to expect see the to forward.

a And see maintenance saw you revenue that the very to expect we to reaction so similar in XXXX.

Chad Bennett

you Thank much.

Operator

Our next your Goodwin is from Joe question question. with Please JMP Securities. with proceed

Joe Goodwin

for thank my questions. Hey, much guys, you taking so

have I additional discovered there. you any Any update know there is on there there nine, is of XQ First, number any guys ones - bankruptcies? was update there? the

Stefan Schulz

not to we're say incremental happy bankruptcy. very have No, been there any

Joe Goodwin

you curious, news now? mean, where time Andreas great most of main Where just your do your are today? you on I really Awesome, right focus what's focus? then and spending

Andres Reiner

say team customers. go-to-market I've of I'm love time our quite support on that bit with the customers and is to go-to-market a time majority now and side the would that. spent on Yeah, our collaborating and my of with I helping full always I

efforts I as and a and a I last they've motion partner across really on for the delivery done. But that's sales will has proud team really our across sales for engagement year say and every business in that for we're investments innovated how our engaging for sales towards strategy our sales from hard focus customer we of dramatically. the first lean lot was a aspect very really digital we business, every marketing, to the And a us. CEO So we're all both advance aspect the industry our would motion where a enablement how and for perspective, And us and ecosystem great as the organization focus improved well year like is. and future, and from for virtual tell of the challenging and transforming of you, our our

Joe Goodwin

you. Thank

Operator

Celino [Operator from Jason Instructions] next Please with question Our is question. KeyBanc with your Markets. proceed Capital

Jason Celino

from but some be as Hey, which earlier first guys, Andreas. or industries in trends? The holding which might Maybe have you ones to ones for better guys you good BXB operate you. it's curious I'm to afternoon, several, that seeing recovery nice in, hear might be

Andres Reiner

Yeah, Jason. great question that's great, now, a

seeing industries moving are say, very I those like And motion distribution well. moving So like very industries look, industrial manufacturing, sales food, to a and be fast to seem we're distribution, chemical, digital strategic would the and of very marketplaces, power well industries but team, like powering to their as sales lot powering own initiatives, as these these just a and drive beyond sales digital beyond we're ecommerce seeing channels. doing

Jason Celino

Stefan, the on quick for the related just loss, free is timing great. Okay, up EBITDA was step a And quarter, to flow then QX, little - QX that one near hiring? of the EBITDA guidance, solid cash

Stefan Schulz

just events more in take that how see expenses in it's employee always the expenses. place up the fall. and some payroll timing benefits quarter. in No, We of that the jump happen taxes first quarter drive first that There's also company

especially the go on expenses OpEx see - a that's come down minimums come why see - reason the EBITDA. in actually on QX payroll throughout should the see that that's in You a taxes, side, get the always as we the those as and biggest the so down, we driver dip through you

Jason Celino

helpful, incredibly you. Great, thank

Andres Reiner

you. Thank

Operator

back remarks. session. like call to turn we would for to Ladies Belinda gentlemen, the question-and-answer have I and reached end of Overdeput closing the the

Belinda Overdeput

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

be TMT Morgan X will Conference Technology conference attending Stanley March JMP March the and the on on Securities X. We

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

PROS (PRO) 5 Feb 212020 Q4 Earnings call transcript