PROS (PRO) 9 Feb 232022 Q4 Earnings call transcript

Greetings and welcome to the PROS Holdings Fourth Quarter and Full Year 2022 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 call is being recorded.

I would now like to turn the conference over to Belinda Overdeput, Director of Investor Relations.

begin. now may You

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

release, a section filings, call earnings SEC Our press and at found the website can on replay Investor our Relations of pros.com. be today’s of

Stefan Andres prepared Executive available. website following Chief our today's With Schulz, replaced the me the available includes Officer; which is be immediately official will on will transcript, be Reiner, and participant Officer. Our Chief remarks by on and President also and call questions, Financial call once

Please some forecast. statements could and results projections that future about of note financial will the Actual our prospects include including, our differ commentary materially forward-looking market business those our guidance. today opportunities, from and without such limitation, and and strategy, statements

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

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

which during Before the attend take Regency of registration. will the conference conference user to and I'd Colorado. person. in the webcasted call on to full Day notify the to unable The investors discount in those Investors attend place Denver, conference who analysts live Hyatt event the XXrd XXXX hand will about receive for be PROS upcoming the Tuesday, at Analyst like May and afternoon our I our over, will Outperform analysts a wish

register, to or XXXX pros.com/outperform. Outperform on details more For visit

over to the turn Andres. you, I'll call that, With

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

full XX% by deal to strong more The supported proud than our increased on we by count team our doubled in the We subscription XX% saw compared the momentum revenue and deliver to reflect we year XXXX. fact XXXX, grew of is how I for by revenue XXXX As year-over-year. a total year. I'm executed that

value fueling relevant, been has which platform. our proposition never is Our more demand for

AI fuel leaning greater management into simple: uncertainty, that helps PROS growth, rapidly evolving growth. are to and out get the drive markets, faster advantage. drive to In automation answer efficiency trying competitive we that Businesses The can are win. organic revenue is today Businesses answer teams and Platform question. In quotes efficiently? how times of is question economic speed profitable a today's

of customer However, and speed number becoming product increasingly channels, of at operating distinct prices. challenging negotiated is sales because the configurations,

digital support omnichannel For analysts only between an businesses today, the to better up The XX% occur channels, Industry PROS uniquely experience. XX% and able XXXX. BXB of omnichannel and sales connect predict a Platform buyers customer to that model. solution by sales from suppliers sales and XXXX, in interactions in automate productivity digitize sales in is will experiences, is higher driving digitally and sales

We innovation and continue XXXX. to accolades leadership with XX awards be recognized for in received

support that ranked In as Quadrant channel recognized is overall QX, sales. to our for CPQ Magic XXXX in Gartner's Smart solutions, leader PROS CPQ one a citing with Gartner number was ability again PROS for

CPQ. position capabilities other be to Additionally, PROS PROS only it position Together any and guided with product the that Management AI-driven was platform noted MarketScape, continues the in Optimization selling more a delivers IDC evaluated. both our leadership with leadership Price and than in

analysts to Technology AI with at AI outcomes. to drives employ processes, XXXX. predict sales selling companies technology XX% be is customers Unlimited their in Security Technology companies all productivity execute, up nearly Security, to best With growth. welcomed Our for primary QX, Vector security solutions. the both accelerate leading leadership PROS. with be fueling continues they and and can and least looking reduce profitable go-to-market that core guided providers turn-around by Unlimited workflows In augment sales will will market we from one that and way quote BXB of XXXX, PROS, the Vector the of going in time, XX% drive to new to of Industry

availability QX imperfect drive higher our advantage IV Gen of BXB robust customers. drives services selected our In market advancements we a for to real-time PROS powered strategy. results technology. profitable which and Optimization use the Aviation, of fuel next even ever-changing adapt to Signature first latest AI algorithms our data, generation market announced the solution PROS IV by AI, neural the network in ROI results Price Neural to company, of with QX, to their in factors network pricing Gen growth in aviation take

airlines the their experience. and couple customer experienced automation the focus the full on disruption years In over increased extreme of digitization of last travel, have has

Our conversion largest marketing direct dynamic are offer entice offers with Greece's airlines Aegean with into digital and through driving higher rates customers helping offers and channels, them sales. lower cost relevant digital of Airlines, solutions solution in and our pull expanded PROS the distribute offers online offers PROS and offer of others, with selected Airlines among adoption and digital to our solutions. Philippine Air, marketing will use partnerships Oman QX dynamic carrier, channels. with their to channels

on profitable also growth to our fueling strategy. value focused, our our and accelerating you, positive customers generate are year. and growth free our adjusted on be creation We pillars and key for in organizational XXXX our long-term are made shareholders. for and We're always, timeline now cash profitability targets. early of changes our focus three We will as Further our EBITDA projecting this flow

of with and the The sales adoption first expand land driving our motion. is PROS market Platform

our drive family in expanding immediate value, example We the are then focused of quickly this landing General Electric on laser expansion QX. A that customers over solutions within is great with to time. more value drive and

GE Healthcare in In and Power. announced expanded we win with we GE our QX, into QX

of is pillar second optimization profit to a The category and establish of revenue new software. our software strategy

configure-price-quote. and leadership that whether we price the or it categories in management, is industry management, exist by analysts Our innovation revenue across recognized software today, be optimization

the the messaging value reflected to drives believe focused We elevating is our bring deliver of market on software, leading a much platform profitable in that growth category the revenue optimization. businesses. and new more we’re This we we and extensive with year, our and so in in However, innovation AI. the for profit our market value capabilities

of our it. We'll We to else positioned deliver rapid rapid even we cases allows no to build enter strategy focus to customer our drive profitable and I'm fuel time-to-value. activate our customers, this use platform market The can fast to in year we and confident is that deliver growth. with our continue pillar that the third implementation assets ROI to innovation more customers well our time-to-value. on as one experience deliver as measurable

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

Before bit to incredible team about close, and talk like I I'd a culture. little our

I’m full place, special built Our people-first makes what reach potential. environment that is growth and personal can we’ve so such the of PROS employee proud culture their ensures prioritizes a and every

recognition respect, We XXXX demonstrate PEOPLE their companies list culture, recently including concern and top employees. in continue by XXX that of receive Companies outstanding U.S. a Care, to magazine our that for care, the of the

shareholders, am employees that While had built several thankful that difficult one past lean both on contributions also other. support our and thank to careers. the partners, we've I culture and committed know former make team I’d to ongoing each current members we're and for to encourages their is decisions of their for to care to supporting years PROS, all the and for our to like their past and the months, we PROS employees current over customers PROS. that over throughout of we

outlook. cover that, financial Stefan to With turn to the to performance our like I’d and call over

good afternoon, and Andres everyone. you, Thank

proven Our to team growth. delivered full businesses a Despite economic strong as mission fourth solutions be to critical challenging a to they profitable look our quarter and have drive year. environment, revenue

us efficiency. drive margins. outperformed really even strong of This performance able revenue we well generated in where gross a as our and of half offerings positive EBITDA to to we our platform second adjusted resulted our second package half With drive in up in subscription guidance. improved Our were revenue the as XXXX. platform also gross the consistently We launched our with margins services XXXX, launch, XXXX, positive greater set

in results fourth Subscription more little in XX% $XX.X the a guidance. detail. was million, cover I’ll exceeding revenue Now, increasing year-over-year and our quarter

revenue subscription year, was million, $XXX XX% full year-over-year. the For increasing

with in million, increasing subscription the year-over-year, quarter $XX.X and the full revenue a along revenue year-over-year. result million of services X% revenue Our fourth to led for $XXX.X year, stronger-than-expected XX% total performance strong increasing

and year XX% full Recurring revenue, the trailing of twelve-month was the than continued quarter our fourth XX%. retention revenue to be revenue rate and total for gross better

exceeding million, Our and on Subscription guidance. Total a currency ARR XX% a our year-over-year increasing $XXX.X currency basis and on basis, was X% ARR range. guidance was million, was $XXX within constant constant increasing year-over-year

XXXX agreements. of and as represents end our life milestone ARR will transition Going SaaS. ARR will a of This because to subscription approach decline significant continue perpetual as during focus marks under license forward, end our from well the we is ARR, to of it our total XX% of maintenance customers we now for us the on

fourth trailing billings X% recurring and months. year-over-year XX% quarter the for twelve Our increased calculated

Our in which non-GAAP year, increased from over fourth and points full subscription were XXXX. XXX gross for margins the the quarter XX% XX% basis

positive gross just margin breakeven. a another that gross year-end short delivered we Additionally, was services of getting X% quarter of services a margin, to us

drove team X% Our improvement loss professional significant a XXXX. in from services of

which with basis and team were gross deliver due improvement last in gross positive our XX% focus the is driving to point for in be the a to beyond, our with we improving basis reflecting XXXX to we an XXX fourth margins expect how mentioned in margins starts XXXX and continued year, in XXXX. I XX% Total over path more in efficiencies quarter, quarter fluctuations than As quarterly solutions. provide and profitability The on and delivered margins annual services on slightly some seasonality.

our adjusted guidance. $X.X quarter, We in profit the fourth of million generated significantly an EBITDA outperforming

Our improvement adjusted year-over-year. a million, the XX% year EBITDA full for was loss $XX.X

the savings outperformance quarter. adjusted fourth expected better revenue EBITDA by in and was Our driven the than cost

quarter. $XX.X year line per per guidance flow $X.XX just earnings share quarter in cash And fourth was million million in free and in and flow over fourth our the with generated free cash Our we burn $X beating was expectations. the for our share

We exited cash the and year of with $XXX.X investments. million

personnel, be providing a with quotas better XXXX will past to of year with slightly quarters and of was we quota-carrying Starting be are The our quarterly drive levels quarterly we which as updates will for carrying change, the for varying create ended quota reps not expansions. reps quota. new comparisons pool inconsistent. the of quota-carrying be than on than expectations. adding Because We in lower will business to our personnel this the personnel larger will XX personnel these quota-carrying

to we growth Now we’ll goals forward. coverage this manage to going are our continue and coverage comfortable at this sales time achieve with our

reps continue we doubled than where we XXXX on building XXXX. count sales sales with driving also focus quarter a will higher had the XXXX, in our to rep in of had we productivity, few We deal on only success more every

And, couple before want of I things. a mention guidance, I to cover

First, in we in to as economic environment are confident ability considering for opportunity are year. we expectations front of our current we set the but market the incredible capture the us,

to and accelerate our cost continue and business Andres’ changes and structure, us to allowing Second, to profitability made recently echo to scale we our comments, have our near-term long-term goals.

to Analyst Conference Day during and cash into in report I'll free insights expect generate at our EBITDA long-term the more Outperform flow May. positive upcoming We provide in model adjusted XXXX. our

that, With growth XXXX midpoint guidance ranges. stated the year rates with for the our is of of here the the full reflecting

ARR growth representing to XX% subscription $XXX expect of million, We $XXX million year-over-year.

the total subscription revenue expect million, year-over-year. million, X% be to $XXX.X year $XXX.X of in growth to million the representing and to in to We range of growth XX% $XXX million be $XXX representing full year-over-year range revenue

adjusted expecting an million and over year-over-year. million full are improvement of EBITDA We profit $X $XX between representing of year million, $X

of an million expect $X free million to year-over-year. $XX to over generate the million improvement $X cash range flow We of in

expect year-over-year. to increase guidance an be Turning $XX million representing for And revenue range representing now to XXXX, the a we quarter to $XX.X million $XX.X subscription range to total of to year-over-year. be in in the the million, increase first of million, revenue $XX.X of XX% X%

as And is million, expenses EBITDA improvement between $X which the first to a reminder, million last typical the first loss of $X We expect higher $X.X and have quarter first million a quarter is business over for quarter. our in it year. adjusted

$X.XX Using rate estimated tax outstanding. and share between of on based an of an non-GAAP QX estimated million we $X.XX XX%, shares anticipate loss XX per non-GAAP per share

from quarter earlier, to we changes, million the our to I the to incur exclude $X.X we related Now first severance $X.X million, results. expect in structure mentioned charges of approximately which non-GAAP will cost

PROS shareholders, and our In closing, you events. for like and continued hard of your would of all speaking our our I dedication PROS. with also like to we support world around I the employees their to work you, to to for would thank look thank continued forward upcoming at

the turn operator call back will Operator? to over for questions. the I now

be question-and-answer line Berg this question. session. gentlemen first we you. Our Please [Operator conducting will Thank and Instructions] of with the comes your time at Needham. Scott Ladies proceed from question a with

Hi nice the and everyone. I've Congrats taking quarter Andres. for a couple bookings my got here. thanks on this questions

So dependent I China of China when wanted think of on of and large to and start heavily reopening is a the off we the I Asia your know the of that. with it's business. travel travel PAC, side on international chunk impact

Asia One heard January, looking data XXXX air levels. of recently travel is or bookings the at in to PAC-based it points for we travel, very air was least close

levels more two, there. One, that does two And impact guess this seen region of impact trending a your your as kind normal or how sudden, business is that of Thanks. well? then business area in if year? or you potentially I questions have all that towards

Yes, really that Yes, that to question. all frankly region are that where we'll this the throughout opening regions. continue it's think but pleased just and that year, and not it’s we Scott, impacts I to seeing that be see help up that are region still area We I improve think, year going great is that's continue because will something to investment. early, an us that, think, definitely but

overall, recovery. So, pleased with we're that

in of look And conversations levels. helpful. yours line we which if at pre-pandemic trending XXXX, we BXB to was XXXX deemed kind healthy go towards that is be with saw you bookings and the of it's I's, it side in again? maybe dropped bit of in Should I to Got in or business as what little a before believe the business, prior it's the completely think

say year as has to would very It's get we to Overall, overall, pleased we And last XXXX. we and but XXXX continued to as improve that last say and definitely travel XXXX. into well back, look, the aggressive I performed well. I'm well I as executed we continue set continue to BXB back to business see year get Yes, goals travel last perspective in year. not sales throughout performed would year would I improve contributed look, say a of well pretty very from how still and

Got here going And to slide it. quick. one sorry, in I'm more really I'm

Yes.

because also get regards different But metric that about expand chance this cadence why are maybe You motions those customers you this are how they do your and forward? expand carrying seeing think to your it's in XXXX a Are really reps a did not plans going with a additional metric least. year fuel we bunch going to for bookings or is of and expectations like just you there? pre-pandemic give I expand at going to forward

No.

So, great that's a question.

more continuing drive is fifty-fifty between both that with a within organization saw help So split new on existing customer a very between And an velocity overall, very a we expansions up base. see of to in smaller the split opportunities the a in capability segments we sales different small we can expansions. we're future. it's a model the that expansions base. really drive and we But level. approach. the sell customer even but and long-term, a we pleased that overall, a which first, business the We're and our and lot see within healthy of that deal existing, as some opportunity trying to both. platform about can And base new quotas of opportunity approximate faster with last more In year drive more to our fifty-fifty setting and our focused see our lot start We customer

and taking my questions Great. congrats again. I all have. for That's Thanks

you. Thank

your line comes Bennett next Chad Our proceed with from Craig-Hallum. of with Please question question. the

non-GAAP taking Thanks on a questions. Great. the but the and achieving profitability. EBITDA kudos for my Further It's year, only finish of been time coming. long not strong positive

EBITDA that it's growth to this pretty see and adjusted So year. cash pivot good the significant in a flow towards free

job. nice So

you. Thank

understand I be of subscription year. are bit of I growth the better. of higher in at little the I don't look macro in here XX%, this what talking this momentum subscription guide to cited, growth, more are I it's you of growth how to versus rate? obviously guess I considering growth rate of factoring going BXB if you closer Yes. midpoint we to that to XX the starting about your guide, and in I throughout or maybe, maybe you and the XX% and in the guess at and just just but on sound you just you But hope do the kind a Stefan, wise. like quantify kind year travel even that the impact everybody growth, you do But obviously is year know terms we're about just relative kind travel, least macro at better think how obviously subscription confident know the year

– your when it's the we to look as set guidance year and of year. always on Chad, so do early time we don't part the it's Yes, of set we the factor part period to we when the and the for for we latter every and first this much so that’s it first a guidance long of the typically in year, set point,

adjust of an into the to things So, to as mid-year us have get reassess we if that point leave better we the second for. built can something opportunity that's – year if to does as the see half visibility we

year year. similar and that's So, no do that's every different to very this what we

be two Actually a to I applicable percentage is and are that going is much. to also talked currency quarter point it's think factor that it to subscription. going We last total, other don't headwind. delta bit being on a a The to thing that have of have we we little about about in

X%, between and hopefully We've helped well. be I it's as X%. X% going seen euro the it's strengthen that's to think around so things somewhere

our because businesses, – going growth of looking really we're nice a what see stage on In on recover did very in BXB and would that travel more to where our we opportunity lost commented have XXXX coming travel. at but XXXX, business our travel of still XXXX we the from side, see say the terms recovery timeframes. travel in a rate that actually you're XXXX from Andres and well such to an in were versus was we

the you But of an the tell business. So that because I our cetera. opening, et Asia recovery, BXB to primarily have take is going growth of away would doesn't travel rate because outsized anything from

is Our just going business same level having of BXB did. travel to to not well. It's continue do recovery the that

be So to higher just because two of growth between the say I of a phenomenon. is going a would travel bit rate that

then just that you of the rate there? don't end it everything or process think kind conservatism you thought or quarter, whether it that. I the because I where you Got know is hearing quarter, out it's was, impacted billings towards it. from thought fourth there And a standpoint, anything kind is the in if that came of booking Thanks. just, mean, really your just how of of in are about growth you billings saw

I would I guidance to way same the have year. way we we every look, say, say would no, cognizant. approach The Chad. is be

environment. into to took going companies exact the be will the selling same every account. that very it the to We difficult If year, confident we you We it look and assume to to at day provide can't we have a effect say the way. and take the a we that hear I difficult same we go it's we want about about is we have be guidance talking assume selling with and environment last approach. macro and

very I guidance changed. hasn't our actually on but pretty year are the do, our and goals say with starting we're aggressive executing. is focused And We to would have where it we overall pretty pleased approach

billings Yes. And to to calculated calculated that. the I think billings, to sorry, on point your on add

what and in with in calculated billings was fourth what lined little a in of you in short-term, a pretty up billings function calculated we with do were in where the were already Our earn to of in lesser is terms the new thinking the much it Because line landed. really quarter. quarter what

good a be it period So where when what pretty of we you're difficult gets going have a is over to longer of forecasting idea that's time. more it

But from on up thinking. down. much that our we that some calculated calculated that kind pretty or And what that mind, in showed is did XXXX, timing were And benefited are QX line how of a we keep QX of with certainly too, effects benefit we there billings timing – that billings occur in were and of reflection drive there XXXX. in in there a have

hop housekeeping Got maintenance it. the And I could. this then I'll kind how about decline if one, we maybe And year? one should last Stefan, of Thanks. think off.

No, changed XXXX. dynamic in mean rate past. accelerated looks the will decline that. a very happy say of remarks. it had migrations like. maintenance a Yes. maintenance is We has my the what in to really year good small at Real in an from prepared commented has I ARR And component, it as I our what

about, talked the XX% always about maintenance it range. we've declining the, XX% to in call Chad, So think

we I XX% I to to about decline maintenance. more as think think how XXXX, is with in think line XX% into go probably

Got it. Nice so Thanks much. job.

you. Thank

proceed with your question of Lane next question. with line comes from the Stifel. Our Parker Please

my Stefan, you it I in at again, the you if taking gross look was if question. believe Yes. past. solid number. really for think But pre-COVID, above to go about I back was wondering retention, Thanks XX% Hi. I XX% I revenue talked

do growth XXXX that back beyond, levels? factor and outlook much anticipate to Thanks. does you this As year? look And those getting to the how we into

Yes.

rates, that executed been are to variety, gotten that we going bigger was or we've as more right, prior right. land more year our retention and retention I as that the looking And but XX%. and we've gotten retention have of and on I But case. did some XXXX, back, and you're Parker, So to we right rates. more mean, was knew XXXX, the so would before the have expand higher done has COVID, transactions pressure around rate you're our say

factor with XX% we doing so certainly and that very or is happy something better, And in. we're

I there And do those is what I the expansion going opportunity accounts currently we And to to towards doing more more opportunity to like to a point. say think I do can feel go of gross There's long be because to way XX% it that this, helping to around add little the think sell we'll have the pretty do value, strong before out better? better. time off call we've retention. we're that an reps actually will Absolutely. and is improving done your me of a a what short XX% we an value it's and it spending work number. But these in yes, we to

So something again. we can I do it's feel like

structure should maybe And cost an structure XXXX. impact the How shifting there cost marketing, we different areas over in from leverage the that for the Is here and changes the outsized the path across think Understood. changes? R&D of had of gears opportunity and the on business? then to segment one about profitability impact sales any

I say an outsized wouldn't there impact. was

impact come the as expense in in some think as impact an R&D you'll XXXX, see I and sales and You'll area, see numbers the G&A you'll well. in marketing see

a I change there's wouldn't scale sales continue that of couple about into going last cost or say the play. been outsized the talking an see over to we've I perspective; no, other. come But one the years way think from of to you're

one items, line of those each we changed within our Now have priorities.

more in our to in reps to also investing logo reps our investing money investing about. be that in we marketing demand and the more spend So business new brand expansion well. be are going going initiatives. as we We're of awareness to gen talked going for We're example,

can investments, have arrow looked where the those do And some priorities, of some we similarly, some earlier. lesser on mentioned our at around in. we be to deprioritize that's So there's factored what wood on side, we behind areas platform of make going to priorities, to our going be so put we our and with kind Andres product that of bigger more do want especially the then

emphasizing were to we yes, and Think reductions stay items? they those happening. was in invest what's sure in areas, priority and that really some make that's as it made made do but there continue we really many So it were different bigger of how

color. Appreciate Thanks again. the it. Got

question proceed comes Chokshi Please Capital next line questions. your Nehal Our with with from Markets. of Northland the

congratulations the And a on and adjusted is in year results Thanks. possibility positive big good XXXX Yes. the surprise. fiscal

well. year XXXX, just why only that's fiscal XXXX? this Starting expecting growth as So XXXX, great can that – to or in with [ph] growth you X% given year in you're films I billings that imply XX% fiscal revenue guidance, had mean, the year-over-year fiscal see does flash you growth.

factoring visibility months, in in factor don't second to it growth ended for executed What at us not next got with, as for the the in order doesn't but and year, you the what we that. talked we've billings only through is we've near-term have done, about to around Nehal full-year, what No, six mean the drive around we're XXXX. And rate half. set we beginning that as leverage to we the see we've got we see also typically we we really guidance of do only much the XXXX that that when all think way

is have is bit. to about mentioned have we've have percentage earlier So us we upside point of a a in that we an that say, the a factored little X little I a on currency, what we are also marketplace. points being impacting X I than you and chance tell so that in of the typically would cautious downside, see as but because case, of which X somewhere between to currency do – X bit impact impact. a of percentage We more

could and are let me plan put that. And to a it driving an things the so that. But we're some of this than executing better those do that are idea way, that

you revenue Okay. full-year, XX%. guide growth XX%, the then have for of And but QX subscription

imply XXXX? subscription So as that growth accelerating calendar go through doesn't revenue we

But talking those a online. about there really because does. timing is bookings it different Yes, of we're when what that's does. It factor come

So from a revenue recognition standpoint.

has So revenue get as where starts. delayed revenue bookings, a but of get don't you good business we recognition that there – probably the recognition. the our portion immediately is we know, That

point, why and So that's been we factor perspective, a you're growth coming online in. booked your have lined already rate from to seeing revenue that that's up that's

Got it.

Okay. great I always come always improved you're And see going the then mean, about projecting, talking that of accelerating growth your profitability I you're future but at I revenue expense yet always, significantly to the targets. to it's that, concerned that growth, is get

reconcile help you presented you can So what me here?

rate the us perspective, going Well, growth. areas like from to in growth a feel that we continuing help to are we are invest drive

cut lower what some would at call cost-cutting looked priority we when we I areas some areas and we areas. in cut where Now, costs, did

impact And can really it's not I that huge areas travel you area, impact the the have in. in want on mislead want both BXB locked we're but a still areas have to an so invest we to that are that and areas going to continuing accomplish, in we on growth because rate. the are what yes, that to don't overall

more matter things want As to in would going growth. I that that focus that the areas allocated are are dollars really fact, ensure a exercises areas tell we've some on we the revenue these that you through few drive of a we actually to went those those of as to

more but and chunk of to some higher at priority that So good stopped we've focus those a with effect is least our phenomenal or because of than is the that areas. doing offset yes, there that offset things in a the of execution plan

the [ph] $XX and December there? March should about, quarter thinking the And is go-forward quarter, OpEx the in we as for be rate expecting be that going should million we from Okay. as that invoice then the forward the far

Nehal, question, sorry, understand I'm didn't sorry? I your

quarter. a I $XX you for the OpEx calculate that million December had

should that the that is we So forward? looking baseline going be for level

somewhere be in zip thinking that should what That's Yes. we code about neighborhood. in of the

Now keep in we have do seasonality. mind,

a will a be will QX, So out it be good – we pretty higher yes, it way, that then it go while OpEx average But that's in may will little look that a estimate quarters. Yes. it little like. would down later what of than dip into as

Thanks. Great. Perfect.

you. Thank

Please line from proceed Our next the KeyBanc. question. with Devin of question your comes Au with

could hear to GE just quarter. PROS a to what Power expansion And Great. with around bit and to on just quarter? from process GE detail – the particularly nice Thanks to the or just one questions. Yes, expansion win Power you more taking GE one I Power our maybe for within share curious just in Health useful initially? hear GE

focus price AI as profitability to Real driving to drive their uplift area how business. better very or is for on I We've margin there's of been as a and drive well many business. we and management and question. optimization on margin great And more their win rates prove No, of like price accounts leveraging seen Yes. and we're units pretty work amount think area guidance customers across next-generation the solutions our in for very and we we value. to better global prove how focus many industry, out revenue significant experienced in is business these were to many IT, uplift, time, working a our both these a significant in of able across the prove that were impact short focused to

our I would say and organization. kudos big team to our product to

small, started drive our this launch ability and to and out time expand value prove platform helps get I the to motion. think our

So of lot the end at that. year our is of one we launch just and saw I really platform XXXX, our think the in success about of of this last what examples a is

Got more it. rates just quarter. region one more the Nice close a to I in Europe APAC around little No, of want that's that Maybe way like maybe like great It to recovery. performance into I seems there changes a kind it. But during to bit. is may. question, meaningful slowed that hear. dive quarter? to Any or kind on sales bit in see of little its the Got a if meaningful cycle

to And very rapid intentional Actually, any we across we time strategy across. other No I to meaningful the general in big region. last good look, the type I I making I where from with sure be We in would Europe, we measurable Europe. and difference Iberia think market. selling results. to business land that's with we're trying momentum, the of difference saw about migration talked would market. big any no say, change. but say But talked environment. the very – travel, say in can is in small would it I've across, not in other quarter, a actually this had a with about market, is We good value business Yes. it had harder investment,

appreciate Yes, you. color, the Okay. Andres. Thank

you. Thank

over Overdeput hand further There remarks. are to like the closing back no I'd questions Belinda for call in call. the to

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

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