Core Viewpoint - Halper Sadeh LLC is investigating the fairness of the sale of PROS Holdings, Inc. to Thoma Bravo for $23.25 per share in cash, focusing on the interests of PROS shareholders [1] Group 1 - The investigation is centered on whether the transaction is fair to PROS shareholders [1] - PROS shareholders are encouraged to learn about their legal rights and options regarding the sale [1] - Contact information for Halper Sadeh LLC is provided for shareholders seeking more information [1]

Group 1 - PROS Holdings, a provider of AI-powered SaaS pricing and selling solutions, will be acquired by private equity firm Thoma Bravo for $1.4 billion in cash [1] - The acquisition agreement indicates that PROS shareholders will receive cash for their shares [1]

Core Insights - PROS Holdings, Inc. is being acquired by Thoma Bravo in an all-cash transaction valued at approximately $1.4 billion [1] - Shareholders of PROS will receive $23.25 per share in cash as part of the acquisition agreement [1] Company Overview - PROS Holdings, Inc. is a leading provider of AI-powered SaaS pricing and selling solutions [1] - Thoma Bravo is recognized as a leading software investment firm [1]

Summary of PROS Holding FY Conference Call Company Overview - PROS Holding is a SaaS company specializing in revenue management and pricing optimization, with total revenue of approximately $360 million [2][12] - The company has a long history dating back to 1985 and has developed sophisticated machine learning algorithms for dynamic pricing, initially in the airline industry [2][4] Key Highlights AI Capabilities - PROS has strong AI capabilities that serve as a defensive moat, allowing for rapid price adjustments in response to market volatility [4][12] - The algorithms developed over decades provide significant value to customers, particularly in managing commodity cost changes [4][12] Market Position and Opportunities - The company is well-known in the travel sector but sees significant growth potential in the B2B space, where brand awareness is lower [5][12] - PROS has initiated new partnerships, such as with BigCommerce, to enhance market reach and awareness [6][55] Business Performance - The first half of 2025 showed strong performance across both B2B and travel segments, with improved sales cycle times and competitive win rates [10][11] - The company has increased its guidance for subscription ARR and revenue due to positive performance [12][49] Competitive Landscape - PROS primarily competes against in-house solutions and Excel spreadsheets, with notable competitors including Pricefx and ServiceNow [20][21] - In the travel sector, major competitors include Amadeus and Sabre, which have broader service offerings [22][23] Industry Trends Travel Segment - Airlines are shifting towards owning the entire traveler experience, creating opportunities for PROS to provide comprehensive pricing and offer management solutions [26][27] - The demand for ancillary services and bundled offerings is increasing, positioning PROS favorably to assist airlines in this transition [26][27] AI Monetization - PROS is exploring new monetization models for its AI capabilities, potentially moving towards outcome-based pricing [31][32] - The company emphasizes the importance of deterministic algorithms for pricing, contrasting with the non-deterministic nature of generative AI [39][41] Growth Initiatives Go-to-Market Strategy - PROS plans to enhance its demand generation efforts with more industry-specific messaging and targeted campaigns [44][45] - The company is focusing on building partnerships with system integrators (SIs) to expand its market presence [56][57] Financial Goals - PROS aims for a revenue growth rate of 16-21% and a free cash flow margin of 19-24% by 2027 [49][50] - The company is prioritizing top-line growth while also seeking to improve operational efficiency through AI [50][51] Conclusion - PROS Holding is positioned for growth through its advanced AI capabilities, strategic partnerships, and a focus on enhancing its market presence in both B2B and travel sectors [58][60] - The leadership team is committed to evolving the company's culture and operational strategies to capitalize on emerging opportunities in the market [8][62]

Summary of American Tower Conference Call Company Overview - **Company**: American Tower Corporation - **Event**: KeyBank Technology Leadership Forum - **Date**: August 11, 2025 Key Points Industry and Company Strategy - American Tower is transitioning from a passive tower business to a more technical role, focusing on data centers and satellite investments [4][5] - The acquisition of CoreSite in 2021 is a significant part of the capital plan, emphasizing the convergence of satellite and terrestrial networks [5][6] - The company is exploring "power as a service" in Africa, indicating a shift towards more integrated services [5] Data Centers and Edge Computing - The company is developing edge facilities, with a focus on the Raleigh data center, which aims to prove the concept of distributed computing [8][10] - Initial investments in small edge facilities did not meet expectations, leading to a reevaluation of strategies [12][13] - Power constraints in centralized locations are driving the need for distributed edge facilities, with Raleigh designed to accommodate modular power increments [14][15] AI and Technological Transformation - The company is in the early stages of AI adoption, focusing on improving productivity and harmonizing datasets from various acquisitions [27][28] - AI is seen as a game changer for operational efficiency, with a focus on orchestrating AI agents across use cases [30] Satellite and Tower Business - Investments in AST Space Mobile are viewed as complementary to the tower business, enhancing connectivity in underserved areas [32][34] - The company believes that towers will remain essential infrastructure, even with the rise of satellite technology [34][36] Spectrum Opportunities - The recent tax bill allows the FCC to auction spectrum, which is seen as a significant opportunity for American Tower [42][43] - Key spectrum bands of interest include upper C band and six gigahertz, which are crucial for future growth [46][48] - The company anticipates that the auction process will enhance capacity and drive new deployments [51][52] Future Outlook - The transition to 5G has been slower than expected, but the new tax incentives may accelerate carrier investments [56][57] - The integration of telecommunications and computing at the edge is expected to enhance user experiences and drive future growth [61] Additional Insights - The company is focusing on modular data center designs to meet the growing demand for power and efficiency [15][21] - There is a recognition of the need for shared resources in the community to support local tech companies [24] - The potential for AI to transform business operations is acknowledged, with ongoing efforts to leverage AI for better decision-making [28][30]

Core Insights - PROS Holdings reported Q2 2025 results that exceeded Wall Street estimates for both revenue and earnings, with GAAP revenue of $88.7 million and non-GAAP EPS of $0.13, significantly higher than the consensus forecast of $0.06 [1][2] Financial Performance - GAAP revenue increased by 8.2% year-over-year from $82.0 million in Q2 2024 to $88.7 million in Q2 2025 [2] - Non-GAAP EPS rose by 85.7% from $0.07 in Q2 2024 to $0.13 in Q2 2025 [2] - Subscription revenue grew by 12% year-over-year, reaching $73.3 million, showing acceleration from the previous quarter [1][5] - Non-GAAP subscription gross margin improved to 80% in Q2 2025, up from 79.6% in Q2 2024 [6] Company Overview and Growth Strategy - PROS Holdings specializes in AI-driven enterprise software for pricing, quoting, and revenue management, targeting complex sectors like airlines and manufacturing [3] - The company focuses on technological leadership in AI and cloud computing, investing heavily in R&D to drive product innovation [4][7] Operational Highlights - The company secured new contracts with clients such as Air Greenland and Lennox, while expanding existing relationships with American Airlines and BASF [5] - Adjusted EBITDA showed strong improvement, although free cash flow declined due to timing of collections and increased commercial activities [8] Future Outlook - For Q3 2025, PROS Holdings expects GAAP revenue between $90.5 and $91.5 million, indicating approximately 10% growth at the midpoint [9] - The company raised its full-year subscription revenue outlook, projecting Subscription ARR for FY2025 to be between $310 million and $313 million [9] - Non-GAAP EPS for Q3 2025 is forecasted to be between $0.15 and $0.17, with adjusted EBITDA expected at $11 to $12 million [9]

Group 1 - The investment thesis for PROS Holdings (NYSE: PRO) is based on consistent double-digit high margin revenue growth rather than being classified as a high-flying SaaS growth stock [1] - The company is demonstrating expanding revenue, which is a positive indicator for potential investors [1] Group 2 - The individual investor focuses on undercovered companies, particularly in technology, software, electronics, and energy transition sectors [1] - The investor has over 7 years of personal capital investment experience and has developed a professional investment background through extensive analysis of various companies [1]

Core Insights - Pros Holdings reported revenue of $88.72 million for the quarter ended June 2025, reflecting an 8.2% increase year-over-year and exceeding the Zacks Consensus Estimate of $87.7 million by 1.16% [1] - The company's EPS for the quarter was $0.13, up from $0.07 in the same quarter last year, resulting in an EPS surprise of 85.71% compared to the consensus estimate of $0.07 [1] Revenue Breakdown - Total subscription, maintenance, and support revenue was $75.9 million, surpassing the average estimate of $74.94 million by analysts, marking a 10% increase year-over-year [4] - Subscription revenue reached $73.33 million, exceeding the average estimate of $72.35 million, with an 11.8% year-over-year growth [4] - Maintenance and support revenue was $2.57 million, slightly below the estimated $2.58 million, showing a significant decline of 24.2% compared to the previous year [4] - Services revenue amounted to $12.82 million, slightly above the average estimate of $12.76 million, with a year-over-year decrease of 1.6% [4] Stock Performance - Over the past month, shares of Pros Holdings have returned -2.2%, contrasting with the Zacks S&P 500 composite's increase of 2.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1 - Pros Holdings reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, representing an earnings surprise of +85.71% [1] - The company achieved revenues of $88.72 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.16% and showing an increase from $82.01 million year-over-year [2] - Over the last four quarters, Pros Holdings has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2 - Pros Holdings shares have declined approximately 27.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $91.96 million, and for the current fiscal year, it is $0.63 on revenues of $361.02 million [7] Group 3 - The Zacks Industry Rank indicates that the Computer - Software industry is currently in the top 19% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Another company in the same industry, Intuit, is expected to report quarterly earnings of $2.65 per share, reflecting a year-over-year change of +33.2%, with revenues projected at $3.74 billion, up 17.6% from the previous year [9]

Financial Data and Key Metrics Changes - In Q2, subscription revenue grew by 12% year over year to $73.3 million, while total revenue increased by 8% year over year to $88.7 million, both exceeding guidance ranges [19] - Adjusted EBITDA improved by 42% year over year to $7.4 million, also exceeding guidance [20] - Free cash flow for Q2 was $3.2 million, bringing the total for 2025 to $4.3 million, an improvement of over $3 million compared to the first half of last year [21] - Non-GAAP earnings per share for Q2 was $0.13, exceeding guidance [22] Business Line Data and Key Metrics Changes - Recurring revenue accounted for 86% of total revenue in Q2, up from 84% in Q2 of the previous year [19] - Non-GAAP subscription gross margin was 80% in Q2, improving by over 50 basis points year over year [20] - Non-GAAP service gross margins increased to 11% in Q2 from 10% reported last year [20] Market Data and Key Metrics Changes - The airline business saw continued momentum with new customer wins such as Air Greenland and ValueJet, and expanded partnerships with major carriers [10] - New customers in various sectors, including a global life sciences leader and a top U.S. auto parts distributor, selected Smart CPQ solutions [8] Company Strategy and Development Direction - The company is focused on leading with innovation and building a comprehensive AI-powered commercial platform to help businesses succeed [11] - Plans to enhance platform extensibility and deepen AI agent capabilities are in place, with a focus on driving goal-oriented execution across various use cases [12] - The company aims to strengthen its go-to-market function and improve lead quality and conversion rates through targeted campaigns [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment but expressed confidence in the company's ability to help customers navigate these uncertainties [6] - The company is well-positioned to capture long-term value and lead in the next era of enterprise transformation, particularly through AI innovations [15] - Management expects subscription revenue and ARR guidance to be raised due to strong business momentum [19] Other Important Information - The company announced a partnership with Commerce to combine enterprise-grade pricing and CPQ capabilities with e-commerce solutions, aiming to enhance distribution and demand flow [14][56] - The company is actively working on simplifying product deployment to drive subscription revenue growth [66] Q&A Session Summary Question: What initiatives are in place to build tighter alignment between marketing and sales? - Management discussed tailoring marketing campaigns to specific industries and aligning sales activities accordingly, with expected benefits in a few quarters [27][29] Question: How does the company view the opportunity in the travel segment? - Management expressed optimism about the airline industry's demand for offer management solutions, noting significant interest from airlines in redefining their tech stacks [30][32] Question: What needs to happen for subscription growth to accelerate into 2026? - Management indicated that optimizing the top of the funnel and leveraging partnerships will be key to accelerating growth [39][41] Question: Can you elaborate on the macro environment and its impact on sales cycles? - Management confirmed that while the sales environment remains challenging, there are opportunities for growth, particularly in complex environments where their products add value [70][72] Question: How is the company maintaining its competitive advantage around AI? - The focus is currently on driving usage and adoption of AI agents, with plans to evaluate monetization models based on customer feedback [83][85]