Q2 2020 Pros Holdings Inc Earnings Call

<unk> 2020 earnings conference call at this time, all participants are in listen only mode. A question answer session will follow the formal presentation, if any which require operator systems. During the call. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded I would now let's turn the conference or to your hosts Shannon Test Vice President of Investor Relations.

Thank you you may begin.

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

Our earnings press release, SEC filings and a replay of today's call can be found on the Investor Relations section of our web site at proves dotcom.

With me on today's call is Andres Reiner, President and Chief Executive Officer, and step in shops, Chief Financial Officer.

Consistent with how our global teams operating today, the three of US our hosting this call from our homes.

Please note that some of the commentary today will include forward looking statements, including without limitation, those about our strategy future business prospects and market opportunities and our financial projections.

Actual results could differ materially from such statements in our forecast.

In particular, theres significant uncertainty around the duration and impact of the Kobin 19 pandemic.

This means that results could change at any time and the contemplated impact of coven 19 on the company's business results and outlook is the best estimate based on the information available as of today.

For more information please refer to the risk factors described in our SEC filings.

Pros assumes no obligation to update any forward looking statements to reflect future events or circumstances.

As a reminder, during the call we will discuss non-GAAP metrics reconciliations between each non-GAAP measure and the most directly comparable GAAP measure to the extent to which available without unreasonable effort our avail.

Awesome, some impacts of dollars that or in terms, especially in terms of any pre petition amounts that you know we were.

In line to be be paid those have been taken out of the RPL calculation because right now there. We're you know we're waiting to see how the bankruptcy process plays itself out and we went collect that money so that would be an area, where it would come out and so that would affect both current and long term. So just.

Only because that Cabot.

One other thing the in some of these concessions. There were also services that we had we had on travel customers that we basically had allowed them to get out of professional services projects that were.

Previous year that also had any impact on the RPL China Okay.

Good thanks.

That's right, yes, I think the interest is point just not to beat a dead horse here, but the the ARPO. If you looked at it on a recurring basis looks far better than it does in total because of the phenomenon just augers just mentioned as it relates to services.

Yes.

And I'm just in terms of again on on the payments negotiations are and contract restructurings.

Understand it was mainly travel but was it mostly cloud based activity or was that was maintenance I healthy portion of it also.

Well, it's a it was both okay. Because we do have a still some some airlines that are there on the on premise solution that have not migrated over so it's both but I would say it's.

He looked at the at the balance is probably still it's it's a little tilted more towards subscription just given where we are in terms of our our maturity in the SaaS model. So yeah, it's going to tilt a little more to subscription.

And then last one maybe for Andres just on the B to B.

Side of the business just anything in terms of the competitive and pricing environment any of your have to having two and then kind of net new basis, not not enter a renewal.

But on a net new basis, if you're having to do anything in terms of.

Kind of deal ramps Rev ramp swear maybe it's a three year deal first year, you know you're kind of a little lower than the next.

Yes, no I'm glad you asked that I would say, yes, we're being fairly flexible on how to start so I would say that ramps tends to be more skewed lower year, one more on more steep into year two and three.

So that's definitely in playing into it and I would say that that's a very common theme on debt, we're hearing in the market, which perhaps down a little bit day CD.

Yes, you have and lower year, one we're trying to be very flexible on good land, great accounts and get them to value quickly on in in that striving year 111.

More than typical.

And it was that mainly this quarter Andres, where where you saw most of that yeah. So I would say definitely that when we put it programming in Q2, so it definitely a bit more in Q2 in Q3, you're going to see on similar on but the good thing is that.

Going into next year, we should get into more of a normal on.

Level as their their lives in driving value.

Yes, absolutely it makes sense and current time, so alright, thank you much yet.

Thank you.

Our next question comes a lot of just some with Keybanc. Please proceed with your question.

Hi, This is actually seven on for Jason.

Thanks for taking my questions here I'm, just one quick one on competition with us.

Simon being really challenging for everyone. Just wondering if you have seen any changes in the competitive dynamics and b to b side and in a trial the side.

Yes, I would say not no real changes across the board I would say the real big change that I would say, it's more the deal structure oriented and how companies want to get started on it's what we're seeing where companies. One is start in narrower cases.

In India ramp, it's a bit more deeper, but no no big changes I will say that.

Talked about this last quarter as well, we're seeing more of customers wanting both CPQ and guidance.

That being a bigger theme and more wanting not just to powered direct sales, but in their mind of how theyre going to power B to B E Commerce in travel when I would say the themes that are resonating there are more around I group sales in summer there yes.

Where they're trying to move processes that they used to be more.

Deal to ask oriented or b to b like on into full ecommerce on pace.

So merchandising.

India, So our areas.

Great that's helpful.

Thank you.

Yes.

Ladies and gentlemen, we have reached the end of our question answer session and I would like to turn the call back over to shared interests closing remarks.

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

We'll be attending Brightroll conferences hosted by Oppenheimer and Keybanc in August we will also be marketing with Morgan Stanley virtually on September nine.

Finally, please save the date for 2020 Pros outperform conference on October seven any we'll be providing more updates on this event and recommendations for investor and analysts can be over the next several weeks. If you have any questions. Following today's call. Please contact our IR App pros dock, Thank you and goodbye.

This concludes today's teleconference. You may now disconnect. Your lines at this time. Thank you for your participation and I have a wonderful day.

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