Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the growth prospects for the travel side of the business and the health of the airline industry? A: Stefan Schulz, CFO, mentioned that the travel business showed signs of solid improvement in Q4, and they expect this to continue in 2025. They anticipate subscription growth to accelerate throughout the year, driven by travel bookings. Andres Reiner, CEO, added that airlines are focusing on offer optimization to capture revenue growth, especially with strong passenger volumes and capacity constraints.
Q: How is the sales strategy evolving under the new leadership, and what changes are being implemented? A: Andres Reiner, CEO, stated that the sales leadership has executed well with a regional focus and closer customer engagement. They are making surgical changes this year, including expanding the customer success team's role to include quota ownership for expansion. They are also focusing on accelerating their partner channel with key partners to drive growth.
Q: What is the strategy for integrating AI-powered solutions like Fair Finder Genie into the platform, and how will they be monetized? A: Andres Reiner, CEO, explained that AI is embedded across the platform to add significant value, such as revenue uplift or efficiency gains. These AI capabilities are integrated into core product solutions and are sold as individual SKUs, providing tangible value to customers and creating opportunities for expansion.
Q: Can you explain the discrepancy between the subscription revenue growth guidance and the ARR growth rate? A: Stefan Schulz, CFO, clarified that while ARR growth was 10% on a constant currency basis, subscription revenue growth is expected to be 11% due to revenue recognition from previous bookings and currency impacts. The subscription revenue will respond positively throughout the year based on strong bookings.
Q: How has the company's position in the Gartner Magic Quadrant for CPQ applications changed, and what drove this improvement? A: Andres Reiner, CEO, highlighted that PROS is now a leader in the Gartner Magic Quadrant, moving from the challenger bucket. This improvement is due to significant product innovation in their CPQ solution, including digital collaboration and embedded AI capabilities, as well as strong market momentum and customer wins.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.