PROS Holdings, Inc. (NYSE:PRO) Q3 2023 Earnings Call Transcript

Victor Cheng: Got it. And then the other one is maybe on travel. Obviously, you mentioned that demand is coming back, but just want to check is going to be airline IT spend still below that pre-pandemic level. And as we think about 2024 with a lot of the volumes broadly normalized, and when I think about airline industry in general, they’re going through a once in a generation change both on distribution, on software side with offer orders management. Should we expect a much bigger appetite in 2024/2025? When should we see that coming in?

Andres Reiner: Yes. Great question, Victor. I would tell you that Q3 was a big progress quarter for us to see travel trend more towards 2019 volumes. And I think we feel very good about Q4 and as we look into next year of that continuing. So I think it’s a little premature to call 2024, but I feel all the ingredients are there. Airlines are starting to invest and they’re investing in the areas that we innovated, as we talked about. So I think our market position is continuing to strengthen, and I think all the areas where we expanded our portfolio are resonating really, really well. I mean, just recently there was an article about Lufthansa and our continuous pricing as an example, that they’ve had very significant success this year and they attribute to the investments they did with PROS during the pandemic and now reaping those benefits.

Those are great proof points that the innovations that we did are paying off. And I believe that customers will continue to follow to adopt those latest generations of revenue management and our full solution from the digital fair marketing all the way into revenue management to drive better returns for their business. So overall, I feel very good about travel as we look into 2024, but it’s a little premature to call next year.

Victor Cheng: Very clear. Thank you.

Andres Reiner: Thank you.

Operator: Thank you. At this time, ladies and gentlemen, we have reached the end of the question-and-answer session. I would like to turn the call back to Belinda Overdeput for closing remarks.

Belinda Overdeput: Thank you for listening to today’s call. We look forward to speaking with you at conferences and events this quarter. We will be attending the Stifel Midwest One-on-One Growth Conference in Chicago on November 9, the Craig-Hallum Alpha Select Conference in New York City on November 16, the Needham Virtual SaaS One-on-One Conference also on November 16, and the UBS Global Tech Conference in Scottsdale on November 29 and 30. If you have any questions following today’s call, please contact us at ir@pros.com. Thank you, and goodbye.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.