“Companies across industries are realizing they must transform how they sell in today’s digital economy,” stated CEO Andres Reiner. “These companies are turning to our AI solutions to power their digital selling strategies, which is accelerating our growth. We’re also proud to be recognized as the clear market leader in G2 Crowd’s Summer 2019 Evaluation of Pricing Optimization & Management Software.”
Second Quarter 2019 Financial Highlights
Key financial results for the second quarter 2019 are shown below. Throughout this press release, all dollar figures are in millions, except net loss per share. Unless otherwise noted, all results are on a reported basis and are compared with the prior-year period.
| GAAP |
Non-GAAP |
|||||||||||
| Q2 2019 |
Q2 2018 |
Change |
Q2 2019 |
Q2 2018 |
Change |
|||||||
| Revenue: |
||||||||||||
| Total Revenue |
$63.9 |
$47.4 |
35% |
n/a |
n/a |
n/a |
||||||
| Subscription Revenue |
$33.1 |
$22.0 |
50% |
n/a |
n/a |
n/a |
||||||
| Subscription and Maintenance Revenue |
$48.1 |
$38.3 |
26% |
n/a |
n/a |
n/a |
||||||
| Profitability: |
||||||||||||
| Gross Profit |
$40.3 |
$28.7 |
40% |
$41.9 |
$30.3 |
39% |
||||||
| Operating Loss |
$(12.1) |
$(13.0) |
$0.9 |
$(3.9) |
$(5.6) |
$1.8 |
||||||
| Net Loss |
$(17.5) |
$(16.8) |
$(0.7) |
$(2.8) |
$(5.2) |
$2.4 |
||||||
| Net Loss Per Share |
$(0.44) |
$(0.52) |
$0.08 |
$(0.07) |
$(0.16) |
$0.09 |
||||||
| Adjusted EBITDA |
n/a |
n/a |
n/a |
$(1.8) |
$(5.4) |
$3.7 |
||||||
| Cash: |
||||||||||||
| Net Cash Used in Operating Activities |
$(3.5) |
$(3.6) |
$0.0 |
n/a |
n/a |
n/a |
||||||
| Free Cash Flow |
n/a |
n/a |
n/a |
$(5.2) |
$(5.2) |
$(0.1) |
||||||
Recent Business Highlights
· Increased attendance of the PROS 2019 Outperform Customer Conference by more than 25% year-over-year as business leaders from nearly 40 countries gathered to learn how to transform a company’s selling experience to win in the digital economy.
· Released the findings of PROS global survey of more than 1,000 procurement and purchasing leaders named “What B2B Buyers Want in 2019: Speed, Personalization and Intelligence”, which reveals that as buying needs have shifted, respondents prioritize self-service, value personalized experiences and expect fast responses to their quote requests.
· Successfully completed an offering of $143.8 million aggregate principal amount of convertible senior notes due in 2024 in a private placement and used a significant portion of the net proceeds from the offering to retire the majority of PROS’ outstanding 2.0% Convertible Senior Notes due in 2019.
Financial Outlook
PROS anticipates the following based on an estimated 40.2 million basic weighted average shares outstanding for the third quarter of 2019 and a 22% non-GAAP estimated tax rate for the third quarter and full year 2019:
| Q3 2019 Guidance |
v. Q3 2018 at Mid- Point |
Full Year 2019 Guidance |
v. Prior Year at Mid- Point |
|||||
| Total Revenue |
$63.0 to $63.5 |
29% |
$247.0 to $248.0 |
26% |
||||
| Subscription Revenue |
$36.0 to $36.5 |
52% |
$137.5 to $138.5 |
45% |
||||
| ARR |
n/a |
n/a |
$220.0 to $222.0 |
17% |
||||
| Non-GAAP Loss Per Share |
$(0.09) to $(0.07) |
$0.05 |
n/a |
n/a |
||||
| Adjusted EBITDA |
$(2.5) to $(1.5) |
$2.9 |
$(9.5) to $(8.5) |
$10.0 |
||||
| Free Cash Flow |
n/a |
n/a |
$0.0 to $2.0 |
$1.5 |
In conjunction with this announcement, PROS Holdings, Inc. will host a conference call on Thursday, July 25, 2019, at 4:45 p.m. ET to discuss the Company’s financial results and business outlook. To access this call, dial 1-877-407-9039 (toll-free) or 1-201-689-8470. The live and archived webcasts of this call can be accessed under the “Investor Relations” section of the Company’s website at www.pros.com.
A telephone replay will be available until Thursday, August 8, 2019, at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13691741.
