PROS Holdings, Inc., a provider of AI-powered solutions that optimize selling in the digital economy, today announced financial results for the first quarter ended March 31, 2021.
“I’m incredibly proud of how our team executed in the first quarter,” stated CEO Andres Reiner. “We exceeded the high end of our guidance range across all metrics and welcomed some amazing new customers to the PROS family. We’re confident in our business and the momentum we’re seeing, and as a result, we’re happy to be able to provide annual guidance once again.”
First Quarter 2021 Financial Highlights
Key financial results for the first quarter 2021 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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Q1 2021 |
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Q1 2020 |
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Change |
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Q1 2021 |
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Q1 2020 |
|
Change |
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Revenue: |
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|
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Total Revenue |
$61.4 |
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$66.3 |
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(7)% |
|
n/a |
|
n/a |
|
n/a |
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Subscription Revenue |
$42.6 |
|
$43.2 |
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(1)% |
|
n/a |
|
n/a |
|
n/a |
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Subscription and Maintenance Revenue |
$52.3 |
|
$55.7 |
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(6)% |
|
n/a |
|
n/a |
|
n/a |
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Profitability: |
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|
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|
|
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Gross Profit |
$34.9 |
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$37.6 |
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(7)% |
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$36.1 |
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$39.1 |
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(8)% |
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Operating Loss |
$(20.6) |
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$(21.4) |
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$0.8 |
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$(11.6) |
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$(13.1) |
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$1.5 |
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Net Loss |
$(22.0) |
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$(22.7) |
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$0.7 |
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$(9.7) |
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$(9.8) |
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$0.1 |
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Net Loss Per Share |
$(0.50) |
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$(0.53) |
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$0.03 |
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$(0.22) |
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$(0.23) |
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$0.01 |
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Adjusted EBITDA |
n/a |
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n/a |
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n/a |
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$(9.4) |
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$(11.4) |
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$2.1 |
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Cash: |
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Net Cash Used in Operating Activities |
$(4.4) |
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$(24.2) |
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$19.7 |
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n/a |
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n/a |
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n/a |
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Free Cash Flow |
n/a |
|
n/a |
|
n/a |
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$(4.6) |
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$(25.5) |
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$20.9 |
The attached table provides a summary of PROS results for the period, including a reconciliation of GAAP to non-GAAP metrics.
Recent Business Highlights
- Welcomed new customers that are adopting our digital selling technology such as Dedalus, Deluxe, Florida Water Products, and United Airlines, among others.
- Designated as one of the 2021 Best Workplaces in Texas by Great Place to Work, in recognition of PROS people first culture and commitment to creating an inclusive environment where employees can bring their authentic selves to work.
- Named inaugural winner of the 2021 Artificial Intelligence Excellence Award for Machine Learning, in recognition of our market-leading AI-powered digital selling innovations.
- Named a Microsoft Top 350 U.S. Partner by Redmond Channel Partner, placing PROS in the top 1% of Microsoft partners, continued proof of our successful partnership.
- Appointed Katrina Klier as Chief Marketing Officer to lead PROS global marketing strategy, responsible for fueling revenue growth by optimizing demand generation, increasing engagement, and amplifying brand visibility.
Financial Outlook
PROS currently anticipates the following based on an estimated 44.3 million basic weighted average shares outstanding for the second quarter of 2021 and a 22% non-GAAP estimated tax rate for the second quarter and a full year 2021.
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Q2 2021 Guidance |
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v. Q2 2020 at Mid-Point |
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Full Year 2021 Guidance |
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v. Prior Year at Mid-Point |
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Total Revenue |
$61.0 to $62.0 |
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(4)% |
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$250.5 to $253.5 |
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—% |
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Subscription Revenue |
$43.0 to $43.5 |
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2% |
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$176.5 to $179.5 |
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4% |
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ARR |
n/a |
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n/a |
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$211.0 to $216.0 |
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2% |
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Non-GAAP Loss Per Share |
$(0.23) to $(0.21) |
|
$(0.08) |
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n/a |
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n/a |
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Adjusted EBITDA |
$(10.0) to $(9.0) |
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$(3.8) |
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$(36.0) to $(33.0) |
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$(6.9) |
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Free Cash Flow |
n/a |
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n/a |
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$(39.0) to $(35.0) |
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$16.3 |
Conference Call
In conjunction with this announcement, PROS Holdings, Inc. will host a conference call on Thursday, May 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.
A telephone replay will be available until Tuesday, May 18, 2021, at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13718107.
