PROS Holdings, Inc., a provider of AI-powered solutions that optimize selling in the digital economy, today announced financial results for the fourth quarter and full year ended December 31, 2020.
“I’m incredibly proud of our global team who helped grow our business and delivered a record number of customer go-lives during this challenging year,” stated CEO Andres Reiner. “We’ve been innovating on our platform to ensure companies are prepared for the shift to digital selling. Industry analysts expect that by 2025, 80% of B2B sales interactions will occur in digital channels, and we’re well-positioned to capture the large market opportunity in front of us.”
Fourth Quarter and Full Year 2020 Financial Highlights
Key financial results for the fourth quarter and full year 2020 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.
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GAAP |
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Non-GAAP |
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Q4 2020 |
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Q4 2019 |
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Change |
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Q4 2020 |
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Q4 2019 |
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Change |
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Revenue: |
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Total Revenue |
$60.9 |
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$66.2 |
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(8)% |
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n/a |
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n/a |
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n/a |
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Subscription Revenue |
$42.9 |
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$40.7 |
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5% |
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n/a |
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n/a |
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n/a |
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Subscription and Maintenance Revenue |
$52.6 |
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$54.1 |
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(3)% |
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n/a |
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n/a |
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n/a |
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Profitability: |
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Gross Profit |
$35.5 |
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$37.8 |
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(6)% |
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$37.0 |
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$39.4 |
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(6)% |
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Operating Loss |
$(13.4) |
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$(15.1) |
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$1.6 |
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$(6.1) |
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$(6.4) |
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$0.3 |
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Net Loss |
$(18.2) |
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$(17.3) |
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$(0.9) |
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$(5.9) |
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$(4.7) |
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$(1.2) |
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Net Loss Per Share |
$(0.42) |
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$(0.41) |
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$(0.01) |
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$(0.14) |
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$(0.11) |
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$(0.03) |
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Adjusted EBITDA |
n/a |
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n/a |
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n/a |
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$(4.2) |
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$(4.6) |
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$0.5 |
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Cash: |
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Net Cash Provided by Operating Activities |
$12.5 |
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$12.9 |
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$(0.4) |
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n/a |
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n/a |
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n/a |
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Free Cash Flow |
n/a |
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n/a |
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n/a |
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$11.4 |
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$11.0 |
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$0.5 |
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GAAP |
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Non-GAAP |
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FY 2020 |
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FY 2019 |
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Change |
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FY 2020 |
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FY 2019 |
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Change |
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Revenue: |
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Total Revenue |
$252.4 |
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$250.3 |
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1% |
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n/a |
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n/a |
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n/a |
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Subscription Revenue |
$170.5 |
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$145.3 |
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17% |
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n/a |
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n/a |
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n/a |
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Subscription and Maintenance Revenue |
$215.2 |
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$203.5 |
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6% |
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n/a |
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n/a |
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n/a |
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Annual Recurring Revenue ("ARR") |
n/a |
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n/a |
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n/a |
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$209.7 |
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$219.8 |
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(5)% |
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Profitability: |
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Gross Profit |
$147.8 |
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$151.2 |
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(2)% |
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$153.9 |
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$157.8 |
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(2)% |
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Operating Loss |
$(66.1) |
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$(53.3) |
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$(12.7) |
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$(34.7) |
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$(19.8) |
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$(14.9) |
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Net Loss |
$(77.0) |
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$(69.1) |
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$(7.9) |
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$(28.3) |
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$(14.2) |
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$(14.1) |
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Net Loss Per Share |
$(1.78) |
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$(1.72) |
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$(0.06) |
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$(0.65) |
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$(0.35) |
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$(0.30) |
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Adjusted EBITDA |
n/a |
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n/a |
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n/a |
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$(27.6) |
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$(13.2) |
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$(14.4) |
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Cash: |
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Net Cash (Used In) Provided by Operating Activities |
$(49.4) |
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$5.2 |
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$(54.6) |
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n/a |
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n/a |
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n/a |
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Free Cash Flow |
n/a |
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n/a |
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n/a |
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$(53.3) |
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$(0.9) |
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$(52.5) |
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The attached table provides a summary of PROS results for the period, including a reconciliation of GAAP to non-GAAP metrics.
Recent Business Highlights
- Designated as a 2020-2021 Great Place to Work-Certified™ company in recognition of PROS commitment to fostering a workplace culture that creates meaningful experiences for employees and impactful leadership.
- Expanded our partnership with SAP with the launch of PROS B2B pricing solutions on the SAP App Center, providing the SAP ecosystem with dynamic pricing capabilities that accelerate digital and omnichannel selling.
- Ranked as the top small-to-mid cap company in RBC Capital Markets’ ESG Software Scorecard in recognition of the quantity and quality of our environmental, social, and governance (ESG) disclosures and practices.
- Named Gold winner in the 2020 Best in Biz Awards for Sales Software Enterprise Product of the Year for PROS Smart CPQ in recognition of our market-leading digital selling technology.
- Appointed Martin Simoncic as Chief Customer Officer and Sherry Lautenbach as Senior Vice President of Global B2B Sales to drive end-to-end customer engagement and continued market adoption of PROS digital selling solutions.
- Welcomed new customers that are adopting our digital selling technology such as Breeze Airways, Carrier, Nippon Gases, among others.
Financial Outlook
PROS currently anticipates the following based on an estimated 44.2 million basic weighted average shares outstanding and a 22% non-GAAP estimated tax rate for the first quarter ending March 31, 2021.
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Q1 2021 Guidance |
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v. Q1 2020 at Mid-Point |
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Total Revenue |
$59.7 to $60.7 |
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(9)% |
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Subscription Revenue |
$42.0 to $42.5 |
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(2)% |
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Non-GAAP Loss Per Share |
$(0.29) to $(0.27) |
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$(0.05) |
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Adjusted EBITDA |
$(13.0) to $(12.0) |
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$(1.1) |
Conference Call
In conjunction with this announcement, PROS Holdings, Inc. will host a conference call on Thursday, February 4, 2021, 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.
