PROS Holdings, Inc., the CFO’s best-kept secret for profitable growth, announced financial results for the third quarter ended September 30, 2022.
“I’m proud of our team for delivering 17% subscription revenue growth along with strong improvements to profitability in the quarter,” stated CEO Andres Reiner. “Year-to-date we more than doubled our deal count as compared to last year; the momentum we’re seeing in our business reflects the unique value proposition of the PROS Platform which generates significant revenue uplift and margin improvements for our customers, fueling profitable growth.”
Third Quarter 2022 Financial Highlights
Key financial results for the third quarter 2022 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 2022 |
Q3 2021 |
Change |
Q3 2022 |
Q3 2021 |
Change |
||||||
|
Revenue: |
|||||||||||
|
Total Revenue |
$70.3 |
$62.7 |
12% |
n/a |
n/a |
n/a |
|||||
|
Subscription Revenue |
$51.8 |
$44.1 |
17% |
n/a |
n/a |
n/a |
|||||
|
Subscription and Maintenance Revenue |
$58.8 |
$52.6 |
12% |
n/a |
n/a |
n/a |
|||||
|
Profitability: |
|||||||||||
|
Gross Profit |
$42.7 |
$36.6 |
17% |
$45.3 |
$38.0 |
19% |
|||||
|
Operating Loss |
$(16.2) |
$(15.8) |
$(0.4) |
$(3.3) |
$(6.3) |
$3.0 |
|||||
|
Net Loss |
$(13.9) |
$(17.5) |
$3.7 |
$(2.9) |
$(5.9) |
$3.1 |
|||||
|
Net Loss Per Share |
$(0.31) |
$(0.39) |
$0.08 |
$(0.06) |
$(0.13) |
$0.07 |
|||||
|
Adjusted EBITDA |
n/a |
n/a |
n/a |
$(2.2) |
$(4.4) |
$2.3 |
|||||
|
Cash: |
|||||||||||
|
Net Cash Used in Operating Activities |
$(9.0) |
$(8.2) |
$(0.8) |
n/a |
n/a |
n/a |
|||||
|
Free Cash Flow |
n/a |
n/a |
n/a |
$(9.1) |
$(8.5) |
$(0.5) |
|||||
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 customerswho are adopting PROS solutions such as ABB, GE Healthcare, Phillips Pet Food, Rapido Group, Summit Electric Supply, and Vistara, among others.
- Published our customer value assessment resultson com, highlighting that our solutions generate for our customers, on average, 8% revenue uplift, 200 basis points of margin improvement, and 67% improvement in efficiency gain.
- Extended our digital offer marketing solutions with the launch of the EveryMundo Marketplace, an application store that connects third party developers building eCommerce applications on the EveryMundo platform to enterprise customers.
- Launched pros.com, our new developer portal, to give customers and partners access to our library of PROS APIs empowering them to integrate with and embed PROS data, insights, and services within enterprise applications, decreasing development time and accelerating time-to-market. Learn more by watching this YouTube video.
- Awarded the 2022 International Business Stevie Award for Artificial Intelligence and Machine Learning Solutions, in recognition of PROS industry-leading solutions that process over two trillion transactions per year and drive significant, measurable ROI by powering businesses of any size to automate smart decision-making.
Financial Outlook
PROS currently anticipates the following based on an estimated 45.5 million basic weighted average shares outstanding for the fourth quarter of 2022 and a 22% non-GAAP estimated tax rate for the fourth quarter and full year 2022. For the full year 2022, we are raising our guidance for total revenue, subscription revenue, and adjusted EBITDA.
|
Q4 2022 Guidance |
v. Q4 2021 at Mid- |
Full Year 2022 |
v. Prior Year at Mid- |
||||
|
Total Revenue |
$68.5 to $69.5 |
6% |
$273.75 to $274.75 |
9% |
|||
|
Subscription Revenue |
$52.1 to $52.6 |
11% |
$203.0 to $203.5 |
14% |
|||
|
ARR |
n/a |
n/a |
$246.0 to $250.0 |
9% |
|||
|
Subscription ARR |
n/a |
n/a |
$224.0 to $228.0 |
16% |
|||
|
Non-GAAP Loss Per Share |
$(0.14) to $(0.11) |
$0.04 |
n/a |
n/a |
|||
|
Adjusted EBITDA |
$(5.2) to $(4.2) |
$1.7 |
$(22.5) to $(21.5) |
$2.8 |
|||
|
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 Tuesday, November 1, 2022, at 4:45 p.m. EDT 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 Tuesday, November 15, 2022, 11:59 PM EDT at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13733111.
