PROS Holdings, Inc., a provider of SaaS solutions optimizing shopping and selling experiences, announced financial results for the third quarter ended September 30, 2021.
“The market dynamics that companies are experiencing today only heighten the need for adaptive, AI-powered digital selling technology,” stated CEO Andres Reiner. “We’re encouraged by the new customers we continue to welcome to PROS and the industry recognition we’ve received making PROS the only platform with a leader position in both the CPQ and Price Optimization and Management markets.”
Third Quarter 2021 Financial Highlights
Key financial results for the third 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.
|
|
GAAP |
|
Non-GAAP |
||||||||
|
|
Q3 2021 |
|
Q3 2020 |
|
Change |
|
Q3 2021 |
|
Q3 2020 |
|
Change |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
$62.7 |
|
$61.5 |
|
2% |
|
n/a |
|
n/a |
|
n/a |
|
Subscription Revenue |
$44.1 |
|
$42.0 |
|
5% |
|
n/a |
|
n/a |
|
n/a |
|
Subscription and Maintenance Revenue |
$52.6 |
|
$52.8 |
|
—% |
|
n/a |
|
n/a |
|
n/a |
|
Profitability: |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
$36.6 |
|
$36.9 |
|
(1)% |
|
$38.0 |
|
$38.4 |
|
(1)% |
|
Operating Loss |
$(15.8) |
|
$(16.2) |
|
$0.4 |
|
$(6.3) |
|
$(8.0) |
|
$1.7 |
|
Net Loss |
$(17.5) |
|
$(18.9) |
|
$1.3 |
|
$(5.9) |
|
$(6.6) |
|
$0.6 |
|
Net Loss Per Share |
$(0.39) |
|
$(0.44) |
|
$0.05 |
|
$(0.13) |
|
$(0.15) |
|
$0.02 |
|
Adjusted EBITDA |
n/a |
|
n/a |
|
n/a |
|
$(4.4) |
|
$(6.2) |
|
$1.8 |
|
Cash: |
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Used in Operating Activities |
$(8.2) |
|
$(14.9) |
|
$6.7 |
|
n/a |
|
n/a |
|
n/a |
|
Free Cash Flow |
n/a |
|
n/a |
|
n/a |
|
$(8.5) |
|
$(15.7) |
|
$7.2 |
|
|
|||||||||||
The attached table provides a summary of PROS results for the period, including a reconciliation of GAAP to non-GAAP metrics.
Recent Business Highlights
- Selected as the “Best Price Optimization Solution” in the annual MarTech Breakthrough Awards program in recognition of our AI-powered, real-time pricing capabilities that help businesses drive winning offers across channels.
- Named to the 2021/2022 Inner Circle for Microsoft Business Applications, continued proof of our successful partnership.
- Certified as a Great Place to Work® for the second year in a row; this year’s certification extends to all eligible countries, recognizing our inclusive, people-first culture globally.
- Welcomed new customers who are adopting our digital selling technology such as Air Transat, Emirates SkyCargo, Korian, Marken, Radiometer Medical, Scoot, and Skyscanner, among others.
- Announced a virtual Investor Fireside Chat featuring a panel of PROS customers and members of the executive team that will take place during the PROS Outperform 2021 Conference from 1:30 PM to 3:00 PM CST on Wednesday, November 17, 2021.
- Appointed Ajay Damani as Executive Vice President, Engineering and Sunil John as Chief Product Officer to further accelerate innovation of the PROS Platform, anticipate the needs of our customers, and exceed market requirements for transformational digital selling solutions.
Financial Outlook
PROS currently anticipates the following based on an estimated 44.4 million basic weighted average shares outstanding for the fourth quarter of 2021 and a 22% non-GAAP estimated tax rate for the fourth quarter and full year 2021.
|
|
Q4 2021 Guidance |
|
v. Q4 2020 at Mid-Point |
|
Full Year 2021 Guidance |
|
v. Prior Year at Mid-Point |
|
Total Revenue |
$63.0 to $64.0 |
|
4% |
|
$249.5 to $250.5 |
|
(1)% |
|
Subscription Revenue |
$45.0 to $45.5 |
|
5% |
|
$176.0 to $176.5 |
|
3% |
|
ARR |
n/a |
|
n/a |
|
$214.0 to $217.0 |
|
3% |
|
Non-GAAP Loss Per Share |
$(0.24) to $(0.22) |
|
$(0.09) |
|
n/a |
|
n/a |
|
Adjusted EBITDA |
$(10.0) to $(9.0) |
|
$(5.3) |
|
$(28.3) to $(27.3) |
|
$(0.2) |
|
Free Cash Flow |
n/a |
|
n/a |
|
$(25.0) to $(22.0) |
|
$29.8 |
|
|
Conference Call
In conjunction with this announcement, PROS Holdings, Inc. will host a conference call on Tuesday, November 2, 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, November 16, 2021, at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13724008.
