PROS Holdings, Inc., a market-leading provider of SaaS solutions optimizing shopping and selling experiences, today announced financial results for the fourth quarter and full year ended December 31, 2021.
“Despite the continued impact that COVID-19 has had on our business, I’m proud of how our team aligned to meet or exceed the guidance ranges we established for 2021,” stated CEO Andres Reiner. “We have a strong passion and commitment towards delivering incredible value to our customers, which is highlighted by our best-in-class gross revenue retention rate of over 93% and all-time high NPS scores. We are excited about 2022 and confident that we have the right people, platform and strategy to capture the large market opportunity in front of us.”
Fourth Quarter and Full Year 2021 Financial Highlights
Key financial results for the fourth quarter and full year 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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Q4 2021 |
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Q4 2020 |
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Change |
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Q4 2021 |
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Q4 2020 |
|
Change |
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Revenue: |
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|
|
|
|
|
|
|
|
|
|
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Total Revenue |
$65.0 |
|
$60.9 |
|
7% |
|
n/a |
|
n/a |
|
n/a |
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Subscription Revenue |
$47.0 |
|
$42.9 |
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10% |
|
n/a |
|
n/a |
|
n/a |
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Subscription and Maintenance Revenue |
$55.4 |
|
$52.6 |
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5% |
|
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 |
$39.0 |
|
$35.5 |
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10% |
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$40.7 |
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$37.0 |
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10% |
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Operating Loss |
$(21.6) |
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$(13.4) |
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$(8.2) |
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$(8.2) |
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$(6.1) |
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$(2.0) |
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Net Loss |
$(23.6) |
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$(18.2) |
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$(5.4) |
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$(7.2) |
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$(5.9) |
|
$(1.4) |
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Net Loss Per Share |
$(0.53) |
|
$(0.42) |
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$(0.11) |
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$(0.16) |
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$(0.14) |
|
$(0.02) |
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Adjusted EBITDA |
n/a |
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n/a |
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n/a |
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$(6.4) |
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$(4.2) |
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$(2.2) |
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Cash: |
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|
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Net Cash (Used in) Provided by Operating Activities |
$(1.0) |
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$12.5 |
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$(13.4) |
|
n/a |
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n/a |
|
n/a |
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Free Cash Flow |
n/a |
|
n/a |
|
n/a |
|
$(1.3) |
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$11.4 |
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$(12.8) |
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GAAP |
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Non-GAAP |
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FY 2021 |
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FY 2020 |
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Change |
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FY 2021 |
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FY 2020 |
|
Change |
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Revenue: |
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|
|
|
|
|
|
|
|
|
|
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Total Revenue |
$251.4 |
|
$252.4 |
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—% |
|
n/a |
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n/a |
|
n/a |
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Subscription Revenue |
$178.0 |
|
$170.5 |
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4% |
|
n/a |
|
n/a |
|
n/a |
|
Subscription and Maintenance Revenue |
$213.1 |
|
$215.2 |
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(1)% |
|
n/a |
|
n/a |
|
n/a |
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Annual Recurring Revenue ("ARR") |
n/a |
|
n/a |
|
n/a |
|
$226.7 |
|
$209.7 |
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8% |
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Annual Recurring Revenue in constant currency |
n/a |
|
n/a |
|
n/a |
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$229.2 |
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$209.7 |
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9% |
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Profitability: |
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|
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|
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Gross Profit |
$146.5 |
|
$147.8 |
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(1)% |
|
$152.1 |
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$153.9 |
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(1)% |
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Operating Loss |
$(74.3) |
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$(66.1) |
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$(8.3) |
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$(32.9) |
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$(34.7) |
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$1.8 |
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Net Loss |
$(81.2) |
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$(77.0) |
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$(4.2) |
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$(29.1) |
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$(28.3) |
|
$(0.9) |
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Net Loss Per Share |
$(1.83) |
|
$(1.78) |
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$(0.05) |
|
$(0.66) |
|
$(0.65) |
|
$(0.01) |
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Adjusted EBITDA |
n/a |
|
n/a |
|
n/a |
|
$(24.8) |
|
$(27.6) |
|
$2.7 |
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Cash: |
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|
|
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|
|
|
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Net Cash Used in Operating Activities |
$(18.6) |
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$(49.4) |
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$30.8 |
|
n/a |
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n/a |
|
n/a |
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Free Cash Flow |
n/a |
|
n/a |
|
n/a |
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$(20.2) |
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$(53.3) |
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$33.1 |
The attached table provides a summary of PROS results for the period, including a reconciliation of GAAP to non-GAAP metrics.
Recent Business Highlights
- Customers achieved more than 6% revenue improvement, on average, by leveraging the PROS Platform based on a value assessment of over 100 customer case studies spanning our target industries.
- Completed the acquisition of EveryMundo LLC, a digital offer marketing pioneer that enables more direct customer engagement through dynamic webpages, offer visualization, and digital ad campaigns. With EveryMundo, PROS empowers brands to broaden their digital reach, pulling buyers into direct selling motions to create superior brand experiences and foster loyalty.
- Delivered a successful virtual PROS 2021 Outperform Customer Conference featuring 43 customer speakers; over 4,300 people from around the world registered to learn about the latest innovations delivered on the PROS Platform and how to power omnichannel selling.
- Expanded our partnership with Microsoft to accelerate market adoption of Microsoft Dynamics 365 and PROS combined digital selling solution.
- Received prestigious honors in recognition of our AI-powered digital selling innovations, including being named Best in Biz Silver Award’s 2021 Enterprise Product of the Year for Sales and Pricing Software Category Leader in G2 Winter 2021.
- Welcomed several new customers who are adopting the PROS Platform such as Air Baltic, B. Braun, Rockwool, and Royal Brunei, among others.
Financial Outlook
PROS currently anticipates the following based on an estimated 45.1 million basic weighted average shares outstanding for the first quarter of 2022 and a 22% non-GAAP estimated tax rate for the first quarter and full year 2022.
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Q1 2022 Guidance |
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v. Q1 2021 at Mid-Point |
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Full Year 2022 Guidance |
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v. Prior Year at Mid-Point |
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Total Revenue |
$65.0 to $66.0 |
|
7% |
|
$267.0 to $270.0 |
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7% |
|
Subscription Revenue |
$48.0 to $48.5 |
|
13% |
|
$200.0 to $202.0 |
|
13% |
|
ARR |
n/a |
|
n/a |
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$246.0 to $250.0 |
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9% |
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Subscription ARR |
n/a |
|
n/a |
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$224.0 to $228.0 |
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16% |
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Non-GAAP Loss Per Share |
$(0.26) to $(0.24) |
|
$(0.03) |
|
n/a |
|
n/a |
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Adjusted EBITDA |
$(12.0) to $(11.0) |
|
$(2.1) |
|
$(28.0) to $(25.0) |
|
$(1.7) |
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Free Cash Flow |
n/a |
|
n/a |
|
$(25.0) to $(21.0) |
|
$(2.8) |
Conference Call
In conjunction with this announcement, PROS Holdings, Inc. will host a conference call on Thursday, February 10, 2022, at 4:45 p.m. EST 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 Thursday February 24, 2022, 11:59 PM EST at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13725919.
