Pros Holdings Inc (PRO) 2012 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen. And welcome to the Third Quarter 2012 PROS Holdings, Incorporated Earnings Conference Call. My name is Chris, and I will be your conference moderator for today. (Operator Instructions)

At this time, I would now like to turn the Conference over to your presenter for today, Mr. Charlie Murphy, Executive Vice President and Chief Financial Officer. Sir, you may proceed.

Thank you, operator. Good afternoon, everyone, and thank you for joining us today for the PROS Holdings Financial Results Conference Call for the Third Quarter of 2012.

As mentioned, my name is Charlie Murphy. I'm the Chief Financial Officer and Executive Vice President of PROS. Joining me on today's call is Andres Reiner, President and Chief Executive Officer.

In today's Conference Call, Andres will provide commentary on the third quarter of 2012, and then I will provide the review of the financial results and our outlook before we open up the call to questions.

Before we begin, we must caution you that some of today's remarks, including our guidance for the year, our competitive position, future business prospects, revenue growth, market opportunities, as well as statements made during the question and answer session, contain forward-looking statements. These statements are subject to numerous and important factors, risks and uncertainties which could cause actual results to differ from the results implied by these or other forward-looking statements.

Also, these statements are based solely on the present information and are subject to risks and uncertainties that can cause actual results to differ materially from those projected in the forward-looking statements. Additional information concerning risks and other factors that may cause actual results to differ can be found in the Company's filings with the SEC. Also, please note that a replay of today's webcast will be available in the Investor Relations section of our website at prospricing.com.

Finally, PROS has provided in its earnings release and will provide in this Conference Call forward-looking guidance. We will not provide any further guidance or updates on our performance during the year, unless we do so in a public forum. PROS does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they are made.

I would also like to point out that, in addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, PROS reports certain non-GAAP financial results. Investors are encouraged to review the reconciliation of each non-GAAP measure to the most directly comparable GAAP measure in the tables accompanying the press release distributed earlier today, and can also be found on the website in the Investor Relations section.

With that, I'd like to turn the call over to Andres.

Thank you, Charlie. And thank you all for joining us on today's call.

I am excited to report another strong performance from PROS in the third quarter, with record revenue exceeding the high end of guidance at $29.9 million, a growth rate of 19% over the third quarter of 2011. We generated non-GAAP operating income of $4.3 million for the third quarter, and non-GAAP EPS came in above the high end of guidance, at $0.11 per share.

I am proud of our team for delivering such outstanding results despite the challenging global economy. We are privileged to have such incredible people, customers, and partners who recognize the outstanding value we deliver.

The market is recognizing our ability to improve sales effectiveness through our big data applications. As Gartner Group says, Big Data is about dealing with volume, velocity, variety and complexity of data, and we have more than 25 years of experience in driving value from big data. An article in Forbes reported that big data applications that live at the heart of transactions are how companies can truly monetize their data. It even cited airlines as an example where big data has been leveraged to optimize sales for decades. We are proud of our heritage in this industry, and we are pleased that our business from the travel industry continues to grow through continuous innovation and proven customer success.

We are also proud to have successfully extended our big data science experience from the airline industry to more than 30 sub-industries. In fact, revenue from our B-to-B industries -- which are manufacturing, distribution, and services -- continues to eclipse our B-to-C industries, which is travel. Our B-to-B business is growing at a faster pace than the overall business, driven by an uptick in new customer demand.

In the third quarter, we were selected as the big data solution of choice by Hewlett-Packard, Ecolab, Nexidia, and Zimmer, among others. These companies have joined the growing community of PROS customers who are using their big data to improve sales effectiveness and outperform in their markets. PROS helps companies sell more effectively by applying big data science to their operational data to help predict which opportunities are most likely to close, which offers are most likely to be accepted, and which prices are most likely to win. Our solutions help drive real, hard-dollar sales results.

For example, one customer realized $200 million of incremental sales over two years by better aligning their offers to the needs of each unique customer based on data science. PROS has been turning data into a competitive advantage for many years, and we are confident we are in a strong position to capitalize on what IDC predicts will be a $17 billion market for big data by 2015.

We continue to see a bright and promising future for PROS as demand for our big data solutions continues to grow. Since the beginning of the year, we have more than doubled the number of companies actively engaged in our early stage demand generation programs as compared to 2011.

The market is responding to our value proposition. This momentum has been fueled by our investments to accelerate awareness and adoption, extend our product leadership position, and increase our global reach and scale. These remain the three pillars of our growth strategy, and I'd like to share a few highlights of each area from the third quarter.

Awareness for PROS Pricing big data solutions continues to increase through the investments we are making and through the overall media and analyst coverage on how big data helps transform businesses. Our position is strengthened by a recent report from Gartner stating that companies who invest more fully in big data technologies than their competitors have the potential to outperform their competition by 20% in every available financial metric.

A recent article in Harvard Business Review stated that companies in the top third of their industry in the use of data-driven decision making were, on average, 5% more productive and 6% more profitable than their competitors. PROS, in particular, has been spotlighted in numerous mainstream big data articles since our last call; twice on CNBC Online.

This year, we have nearly doubled our media hits over last year. We believe this indicates growing interest in our mission of helping companies and the people who work for them to prosper by leveraging big data to outperform.

We also continue to raise awareness by maintaining a strong presence at marketing events. Since our last call, we participated in numerous conferences centered on sales effectiveness, including Dreamforce, Cloudforce, and Sales & Marketing 2.0. These events continue to play an important role in driving demand.

Overall, we are pleased with the results we are seeing from our investments in accelerating awareness and adoption of our big data solutions, and we will continue to invest in this strategy.

On the product innovation side, we have made great progress in extending our market leadership position with innovations that help our customers outperform. We believe the best way to monetize big data is to use it to improve sales performance and affect sales outcomes.

For example, by applying data science to historical transaction data, our intelligent quoting capability gives sales reps far more confidence when negotiating deals because they have new insights into their customers' buying preferences, allowing them to tailor offers and quotes that are more likely to be accepted. This is also a good example of how we embed two decades of big data science experience right into our products, allowing customers to benefit from cutting edge, big data science without the burden of investing in hard-to-find data scientists.

A recent report from McKinsey & Company suggests there will be a shortage of talent needed to take advantage of the big data opportunities that exist in every business. We will continue to invest in big data science and technology innovations to help our customers bridge the data science gap and outperform in their markets.

In the third quarter, we also made progress in expanding our global reach and scale through direct sales coverage and our partner ecosystem. We finished the quarter with 34 quota-carrying personnel, keeping us on track for a 40% increase for the year. We continue to invest in our direct sales to meet the rising demand for our big data solutions.

Our partner ecosystem also continues to contribute to our global reach and scale. Our system integration partners are actively participating in our B-to-B implementations, and we continue to train additional third-party consultants to provide further scale.

From a technology partner standpoint, we continue to benefit from our Microsoft partnership. Microsoft recently spotlighted PROS in two of their field sales events in Europe, and will soon do the same with their largest customer event in Asia. We leverage Microsoft's enhanced in-memory database technology in our big data solutions to drive even more value to our customers.

We also continue to invest in our SAP partnership, having recently achieved another product certification that sets the standard for the most complete and seamless integration experience with SAP. With more than half of our B-to-B customers running SAP, we are pleased to be the provider of choice among SAP customers looking to improve sales effectiveness through big data science and technology.

Looking ahead, we see strong, ongoing momentum in our business and believe that the market is increasingly recognizing our ability to improve sales effectiveness through our big data applications. The market opportunity is large, and we expect to continue investing to capture more than our fair share.

Now let me turn the call over to Charlie to provide you with a review of our financial results and outlook for the fourth quarter of 2012.

Thanks, Andres. I will be discussing our financial results on a non-GAAP basis. A full GAAP-to-non-GAAP reconciliation is included in our earnings release, which can be found on our website in the Investor Relations section.

We are pleased with our performance in the third quarter, with total revenue of $29.9 million, exceeding the high end of our guidance and up 19% from a year ago. License and implementation revenue was $19.5 million, up 18% from a year ago. For the majority of our contracts, license and implementation fees are bundled together and revenue is recognized on a percentage completion basis over the implementation period.

Maintenance and support revenue of $10.4 million was up 20% year-over-year and represents the largest component of revenue from recurring sources. Total recurring revenue, which includes maintenance and support revenue, a number of term licenses, and cloud service contracts, was approximately 43% of revenue in the third quarter. Our revenue recognition model gives us good revenue visibility.

As we have been discussing with you, we have been investing in our quota carrying salespeople primarily in the US to drive our B-to-B business, which is the key growth driver for our company. Our legacy B-to-C business remains predominantly outside this US. This was evident in our results this quarter, with the US revenue increasing significantly and making up 44% of revenue compared to 31% last year.

Europe remains healthy for us. Revenue from Europe was 25% of total revenue in the third quarter of 2012, as compared to 29% of total revenue last year. Year-to-date, revenue from Europe was 28% of total revenue, as compared to 27% last year, and showed double digit growth over the same period.

Non-GAAP gross margins were approximately 72% for the third quarter as compared to 76% for the third quarter of 2011. Margins can vary from period to period, primarily due to the level of implementation services required relative to the total contract value. Margins also have been impacted by increases in personnel, particularly across our professional services teams in anticipation of future revenue growth. Year-to-date gross margins were 73% in 2012 as compared to 74% in 2011.

Total non-GAAP operating expenses for the quarter were $17.2 million, compared with $14.8 million a year ago, with the increase of 16% from planned investments consistent with our growth strategies.

Non-GAAP operating income was $4.3 million for the third quarter of both 2012 and 2011 and non-GAAP operating margins were 14.4%, compared to 17.2% last year. Year-to-date non-GAAP operating margins were 15.1%, compared to 15.6% last year.

During 2012, we have increased our investments relative to 2011 to support the increase in demand for our big data solutions and our anticipated revenue growth. For example, at the end of the third quarter of 2012, headcount including outsourcing was 665, which increased 28% from the year-ago period. Year-to-date, headcount has increased 23%. We see significant opportunity and will continue to increase our sales, marketing, professional services, engineering, and administrative personnel to drive growth, reflecting confidence in our big data opportunity across both B-to-B and B-to-C.

The overall non-GAAP effective tax rate was 26.4% and was below our estimated annual effective tax rate of 35%. This was due to a discrete favorable tax provision adjustment attributable to higher than expected research and development tax credits in 2011. Based on a non-GAAP effective tax rate of 26.4%, non-GAAP net income was $3.2 million for the quarter, an increase of 4.2% over the prior year.

Non-GAAP earnings per share were $0.11, including a $0.01 benefit versus guidance from the lower than expected tax rate just discussed. This compares to $0.11 per share a year ago, which included a $0.01 benefit from the research and experimentation tax credit in effect at that time.

GAAP earnings per share were $0.05 compared to $0.07 last year, reflecting an increase in non-cash stock based compensation expense in 2012. A reconciliation of GAAP to non-GAAP is provided in our press release.

Now, moving to the balance sheet, we entered the third quarter with cash and cash equivalents of $72.6 million, an increase of $4.2 million from the beginning of the year. Year to date, capital spending is $6.3 million, and we expect capital spending for the year to be approximately $8 million as a result of increased infrastructure investments and facility expansion costs.

Gross trade accounts receivable at the end of the quarter were $47.8 million. Days sales outstanding was approximately 127 days, which is higher than our historical performance. That said, we do not see any negative trend with our accounts receivable, and we expect significant collections in the fourth quarter and for our DSOs to return to more historical levels.

We generated operating cash flow of $3.9 million in the third quarter, yielding a cash flow margin of 13%. Year-to-date operating cash flow is $10.9 million, also yielding cash flow margins of 13% year-to-date. For the year, we continue to expect our annual operating cash flow to approximate our annual non-GAAP operating income of 15%.

Now, turning to our outlook. We continue to be optimistic, while mindful of the economic environment. For the fourth quarter, we anticipate revenue in the range of $31.4 million to $32 million, approximately 21% growth. We expect total expenses to be approximately $27.3 million, up from $21.6 million in the fourth quarter of 2011, as we continue to make strategic investments in our business. We expect non-GAAP operating income margins of approximately 14% at the midpoint of our revenue guidance. With a tax rate of 35% in the fourth quarter, we anticipate non-GAAP earnings per share of $0.09 to $0.10 based on an estimated 28.8 million shares outstanding.

On a GAAP basis, we expect operating income of $1.5 million to $2.0 million and GAAP earnings per share in the range of $0.02 to $0.03.

On a full year basis, this translates to anticipated revenue in the range of $116.5 million to $117.1 million, an increase over prior guidance, which is a 21% increase in revenue over full year 2011. We expect annual non-GAAP operating margins of approximately 15% and non-GAAP EPS in a range of $0.40 to $0.41.

We are continuing with our strategy of investing in support of growth. The market opportunity is large, and we are taking share. As you can see from our Q3 results and our raised full year revenue guidance, we are seeing payback from our investments and will stay the course because it is working.

The research and experimentation tax credit has not been renewed for 2012. If the tax credit is reinstated during 2012, and if it is retroactive to the beginning of the year, as has been the case in the past, then we will make a cumulative adjustment in the quarter in which the tax credit is reinstated, as we did during 2010. Should the credit be reinstated, the estimated non-GAAP tax rate for the year would be approximately 28%, compared to 32.9% without reinstatement.

In summary, we are pleased with our performance. We are confident that our growth strategies are working, and that we are well positioned to capture the growing opportunity for real-time big data solutions.

With that, let me turn the call back to the operator for questions. Operator?

(Operator Instructions) John DiFucci.

I have a couple of questions.

Charlie, guidance implies an acceleration of growth into the fourth quarter. Is this a reflection of accelerating business momentum quarter-to-quarter? Or is this more a reflection of the timing around how you recognize license and implementation with the percentage-completion method? I know you can book a deal, and then you'll recognize the license implementation over time. And was there something in this quarter, or is there something coming next quarter, that's going to accelerate that growth? Or is it more just about new business that you expect to be signing? Or is it a little bit of both, I guess?

Yes, actually, it's a little bit of both.

But to start, we're very pleased with the business that we've been able to achieve in the first nine months of the year. And the B-to-B side of our business is clearly the growth driver for the Company. We talked about this last year during the call at the end of the second quarter. We had said this is now the transition -- in a short period of time, perhaps six or seven years, our B-to-B business was now transitioning, so it was becoming larger than our B-to-C business.

And, John, that's just continued as we've come forward from the second quarter of last year to today. And again, we're very pleased with the business for the first nine months of this year. And it's really that business that's giving us the opportunity to get to possibly a 22% quarter-over-quarter revenue growth in Q4 compared to last year. So we're very pleased to be leaving this year with that kind of an opportunity for revenue growth.

Okay, great.

And the growth in the Americas this quarter was tremendous. Was there any just sort of outsize large deals? I know your deals tend to be a little bit on the larger side anyway. But are there any deals that were 10%, 5%, of total revenue in the quarter?

No, John, I don't believe we had any that were 10% of total revenue in the quarter, and possibly not even 5%. Because the model tends to smooth out even the large deals. Typically for us, a larger deal means more products and perhaps a little longer implementation period. It really is, I think, the fabulous business we had in the second quarter that we talked about, and the third quarter that we're talking about today.

And in the transition, we have said before that the B-to-B business is predominantly a US business followed by Europe. The B-to-C business is predominantly outside the United States. So as the driver becomes B-to-B, which we've said it would be, it's showing its growth by the growth in the Americas versus the overall revenue growth outside the Americas. Does that make sense?

It does. Thank you, Charlie.

And if I might, a follow-up for Andres. Andres, can you just talk a little bit more about -- you mentioned the term "big data" several times in this call and talked about big data innovation and big data science. And I just want to make sure I understand what you're talking about. Are you just talking about dealing with huge volumes of data, which you've always dealt with? Or are you talking about dealing with varieties of data -- and what I'm thinking about is unstructured or semi-structured data -- and are you analyzing that data in a unique way today that you didn't do in the past? Or maybe you did do it in the past and just were not really getting the recognition from it? And today, you just want to make sure people know you're doing that? If you can just help out a little bit there?

Yes. So we've been really -- as we talked about in the call, for over two and a half decades -- dealing with a large volume of data. But in addition to that, we're also dealing with variety of data and velocity.

We talked about the three V's -- volume, velocity and variety. If you look at the velocity from a transactional perspective, every given transaction in real time -- being able to make decisions and guide the sales organization into what offers they should be making, at what price points they can win -- it's to bring that competitive advantage of mining all of this data.

Over the years, we've been enhancing our architecture to be able to link other data sources back to transactional and back to the master data. So think about linking currency, cost data, index data -- all of this data -- being able to correlate it to help better, smarter decisions, and all in real time.

So over the years, our focus has been on building a very scalable architecture that's focused on dealing with large data volumes that have very dynamic variety of data, so being able to even connect unstructured data together with structured data. But to get value, you have to be able to link it back to your transactional.

Also, in our product strategy, we have set the clear goal of extending beyond just pricing. It's basically bringing pricing, rebate, quoting -- the technologies that help drive sales effectiveness and help drive the sales organization to outperform in their markets.

So it's really been part of our strategy for the past several years to invest in this big data platform. And we're seeing the market -- it's been more of the fact that the market really didn't understand all the capabilities that we provide. And it's now more the market understanding how our solutions help drive better sales effectiveness and help drive value to bring a competitive advantage.

Okay, thank you, Andres. But I just want to be clear -- you've always dealt with large volumes and velocity of data. And when you're dealing with -- and when you say "variety," and you mentioned the term "unstructured" -- are you actually manipulating or managing that? Or are you taking unstructured data that might have some structured descriptors or metadata associated with it, and actually -- are you creating that metadata? I'm just trying to get a sense on this. Because this is actually --

That's a great question. The linking of unstructured data is not so simple. Because you have to map it, and you have to decide how to disaggregate it or aggregate it. Because data does not come in at a logical one-to-one mapping with either transaction, customer or product.

So part of a lot of the investment in our technology has been -- how do we allow to bring data sources and be able to correlate how those data sources fit into the operational data? And how do you actually bring that data to be able to link it, at what levels -- how do you disaggregate or aggregate it -- and also being able to deal with the quality of the data.

So in perspective, it allows you to deal with linking unstructured variety of data, so from CRM, ERP and other systems outside of your core operational systems, as well as with unstructured data, which -- if you think about whether it be cost, or whether it be customer survey data -- to be able to understand how your survey scores -- how is that affecting the risk that you have in the business at a particular customer level? Those are just some examples.

Thank you very much, Andres. And sorry for taking so much time, but I think it's a very important point. So thank you.

John, I'd like to add maybe one more point to that -- that we're very pleased, after really not having much discussion around big data over the last several years, to have companies like Gartner and IBM coming out and essentially helping to define big data around volume, velocity and variety; to have more and more publications out there talking about big data, the effectiveness of big data and the impact it's having on companies. As you know, this is what we've been doing. And the Harvard Business Review to come out with a front-page piece on big data, and to have multiple articles in the Harvard Business Review this past month -- it's all good for us. It's all about creating awareness, which we believe is going to drive increased opportunities for us as we go forward.

Great. Thanks a lot, guys.

Thank you.

Yes.

Jesse Hulsing.

Americas was great, Europe was a little bit weaker. Is that just purely due to the mix shift away from B-to-C? And if so, do you plan on more aggressively building out your B-to-B business in Europe over the next 12 months or so?

Yes. Hi, this is Andres.

Yes, we're actually very pleased with our performance in Europe. And we do expect a double-digit growth out of Europe this year, predominantly driven by B-to-B growth. In fact, this year we've actually increased headcount in Europe by more than 60%. And it's primarily in sales, marketing and professional services. We still see strong demand in Europe. And we're continuing to invest in Europe looking ahead into next year and beyond.

The real story around this is more around our growth in North America. Two years ago, we started to make a strategic investment in sales and marketing. And that was far greater around North America than any other market. And we're starting to -- we had seen the results, but now we're starting to see even greater results of those investments in the B-to-B North America market.

Great.

And Andres, when you look at that strength in North America, is that more proportionally in your installed base, or is that new customers? How does that mix look of push versus pull type business?

This year, it's been significantly stronger with net new customers than with existing. We've always had incredible customer references, and customers continue to adopt our technology. But this year, the uptick has been in net new.

Great.

Which we see as a very positive trend. Because we will always have the opportunities to sell back in.

Right.

And Charlie, deferred had a nice tick up sequentially. Is there anything out of the ordinary there, or did you just have a solid billings quarter?

Yes, it's really a solid billings quarter. As you know, most of our billings are based on milestone billings -- signing contracts, achieving certain milestones during the implementation. So it was really just an excellent quarter on all those fronts. So we're very pleased.

Great. Thanks, guys.

Thank you.

Scott Berg.

Hey, Andres and Charlie, excellent quarter here. Couple of questions for you.

First of all, Andres, can you qualify the bookings for us in the quarter? It looks like your name deals were likely solid, larger deals. Can you compare it on a sequential basis maybe from year-over-year basis?

We could barely hear you. Let me see --

I think the question was, Andres -- looks like bookings were good for the quarter. Can you quantify the bookings this year compared to the third quarter of last year?

We don't do that, really. We do not provide booking guidance or comparisons on a quarterly basis. But we feel very, very good about the strength we've had in bookings for the first nine months of this year. In fact, we started the year with a 20% revenue growth expectation. And we're pleased that we're able to now move it up to a 21% revenue growth expectation for the year. So I think on that front, it certainly says that bookings are up year-over-year. But we really don't provide any specifics on that.

Andres did mention the B-to-B side of the business is the driver. And we've been expecting this. As I mentioned, it started in the last half of last year -- we saw the turning point. B-to-B is clearly the big driver for our business. And B-to-B North America is the biggest piece of that.

Great.

And then, on the sales investments that you've been making now for the past couple, three quarters -- are you beginning to see any productivity from those individuals? Or is this something that we should see likely more in the first half of next year?

We are seeing productivity from the sales quota-carrying personnel that we hired last year, and over the last, say, two years. But obviously, the ones that we've hired this year -- we wouldn't see the productivity results in those. But definitely, I am very proud of our sales organization in sales and marketing, and how they have executed year-to-date. And we are performing better than ever.

Great.

Then, I guess, last question I have for you is -- in terms of sales across your MD&S verticals, is there one in particular that you think is kind of driving your sales in overall opportunities? Or are you getting a nice blend across the opportunities in all three?

It is a nice blend. It's predominantly, like we said, on the B-to-B industries in manufacturing, distribution and services. We have talked in the past around industries like high-tech, chemicals, parts -- these are industries that we're seeing a lot of demand. But it's really blending across these industries.

And the key relation is a lot of companies are looking at -- how are they going to monetize the data that they have, and how do they drive revenue growth and profitability to the business, and how do they leverage the data that they have to really create a competitive advantage? And we're seeing that's resonating very well in the market.

I think also, our investments around our solution and innovation around rebate, pricing, quoting is resonating very well in the market and is solving pain points that the market has always had. So it's really been fairly broad across the 30 sub-industries. But there are some, like high-tech, parts, that we're seeing significant interest.

Great. I'll jump back into the queue. Thank you for taking my questions.

Thank you.

(Operator Instructions) Ross MacMillan.

Thanks a lot. And congrats from me as well.

Just a quick question on the DSO that spiked up this quarter -- Charlie, you don't seem particularly concerned about it. But could you just help us understand -- what are the dynamics that would drive such a big increase in the DSO in a particular quarter?

It really does come down to the timing of billings on all of our projects. And we've got multiple projects going on at any particular time. It's that, and it's also the bookings in the quarter. As you book business, we have an opportunity to do some billing. As you know, we historically do not get the full contract value at the time we book.

So you cannot look at deferred revenue as reflecting contract value. We are pleased that it's up, but I wouldn't read much into it. I always give the example -- you go back a few years ago, deferred revenue was flat across the balance sheet, and the Company's revenue grew 30%. So I really don't want to emphasize it too much. I mean, it's nice that it's up. We're pleased, as far as the deferred revenue.

On the DSOs side of it -- again, I don't see anything in the DSOs, other than just a good opportunity to have a strong cash flow quarter in Q4.

I guess I was curious as to whether -- if there's any correlation between the mix in the L&I line between L and I -- i.e., services -- versus that DSO line. Or is there no real correlation?

I don't think we've seen a correlation between the two. We haven't looked at it that way. But it doesn't strike me as there'd be a correlation.

That's helpful.

And then, Andres, you made an interesting comment about -- I think you said over half your MD&S customers are SAP customers. Obviously, SAP has a reseller relationship with another price optimization vendor. Could you just talk a little bit about two things? One is how you compete with them in an SAP account. And then, secondarily, it sounds like your partnership with SAP is getting a little deeper. Could you talk to that and the direction you're going there? Thanks.

Yes. As you know, our heritage has been a lot around SAP customers adopting our technology. And for the past seven years, we've invested in having the most complete integration capabilities to really make a very robust integration between our technology and SAP -- and not just on the ERP front, but also on the CRM; so bringing the experience of the lead opportunity to quote all integrated with one user experience.

Our customers expect to have this seamless integration. And we've invested to have them have the most complete solution. I believe that our investments in innovation around bringing rebate, pricing and quoting integrated, uniquely differentiate us. Even though our competition is resold through SAP, they cannot provide the full breadth of capabilities specifically around rebate, and more importantly around data science and big data capabilities that we can provide. And we're seeing customers expect to have those capabilities in the solutions today.

I would say we continue to be a partner and a need-to-have partner, and continue to invest to have the best-in-class solution.

That's great.

And then, maybe just one housekeeping -- Charlie, I think historically you've helped us with the metric around the number of implementations in the quarter. Do you have that?

Yes. I guess the implementations -- recalling year-to-date, it's like 112 implementations year-to-date. And I believe at the end of the quarter, it's around 85 active implementations going forward.

Thank you.

Yes.

We have no further questions at this time. I would now like to turn the call back over to Mr. Andres Reiner for any closing remarks.

Thank you for your participation in today's call. We are excited about our performance this quarter and year-to-date. Our efforts to help our customers improve sales effectiveness through big data applications is resonating in the marketplace. Driven by investments in awareness, go-to-market initiatives, and innovation, we are capturing an increased share of our market opportunity and believe we are in a position to deliver sustainable, long-term growth.

I would like to thank our PROS team worldwide for their incredible efforts and passion. Thank you to our customers, partners, and shareholders, as well, for your support of PROS.

We look forward to speaking with you on our next call. Thank you, and goodbye.

Ladies and gentlemen, that concludes today's Conference. Thank you so much for your participation. You may now disconnect.