Pros (PRO) Stifel 2024 Cross Sector Insight Conference summary

Business overview and value proposition

• Provides AI-powered solutions for offer marketing, revenue management, dynamic pricing, and sales optimization, delivering measurable ROI such as 8% revenue uplift and 67% efficiency gains for customers.

• 84% of revenue is recurring, with a healthy SaaS business model and over 93% gross revenue retention.

• Operates mainly in industrial manufacturing, chemicals, energy, distribution, and travel, with most B2B wins replacing manual processes.

• Recent customer conference revealed ROI may be even higher than previously measured.

• Large market opportunity remains as many businesses still use manual pricing methods.

AI strategy and product innovation

• AI is core to both products and internal operations, with the latest Gen 4 AI leveraging neural networks for advanced segmentation and recommendations.

• AI is infused across all business functions, including sales and professional services, to drive productivity.

• Generative AI is being integrated, with a focus on combining it with predictive and prescriptive models for optimal results.

• Announced integration with Microsoft Sales Copilot, making PROS the first pricing and CPQ solution fully integrated into the platform.

• Modular platform allows for incremental upsell of new AI-driven features and algorithms.

Market trends and customer adoption

• AI boom has increased customer interest and demand for AI-driven solutions.

• B2B segment is the fastest-growing, with most new deals replacing manual processes; travel sector is recovering, with deal volumes returning to normal but with smaller average selling prices.

• Airlines are now more cautious in contracting, buying only for current needs rather than pre-committing to future growth.

• Expanded product portfolio includes dynamic ancillary pricing and offer marketing, providing quick value and easier adoption.

• International airlines are a key customer base, with ongoing expansion into smaller and regional carriers.