PROS Holdings, Inc., a leading provider of AI-powered SaaS pricing, CPQ, revenue management, and digital offer marketing solutions, announced financial results for the first quarter ended March 31, 2023.
“I’m proud of our team for delivering a strong start to 2023 where we drove 15% subscription revenue growth and 75% improvement to adjusted EBITDA year-over-year,” stated CEO Andres Reiner. “We continue to lead the industry in AI that drives measurable ROI for our customers. As a result of our outperformance in the first quarter, we are raising our 2023 full year guidance across all metrics.”
First Quarter 2023 Financial Highlights
Key financial results for the first quarter 2023 are shown below. Throughout this press release all dollar figures are in millions, except net (loss) earnings per share. Unless otherwise noted, all results are on a reported basis and are compared with the prior-year period.
|
GAAP |
Non-GAAP |
||||||||||
|
Q1 2023 |
Q1 2022 |
Change |
Q1 2023 |
Q1 2022 |
Change |
||||||
|
Revenue: |
|||||||||||
|
Total Revenue |
$73.2 |
$66.5 |
10% |
n/a |
n/a |
n/a |
|||||
|
Subscription Revenue |
$56.0 |
$48.8 |
15% |
n/a |
n/a |
n/a |
|||||
|
Subscription and Maintenance Revenue |
$61.7 |
$56.6 |
9% |
n/a |
n/a |
n/a |
|||||
|
Profitability: |
|||||||||||
|
Gross Profit |
$43.6 |
$39.1 |
12% |
$46.6 |
$41.9 |
11% |
|||||
|
Operating (Loss) Income |
$(18.8) |
$(26.5) |
$7.7 |
$(3.5) |
$(10.8) |
$7.3 |
|||||
|
Net (Loss) Income |
$(19.0) |
$(28.6) |
$9.6 |
$(2.5) |
$(9.7) |
$7.1 |
|||||
|
Net (Loss) Earnings Per Share |
$(0.41) |
$(0.64) |
$0.23 |
$(0.06) |
$(0.21) |
$0.15 |
|||||
|
Adjusted EBITDA |
n/a |
n/a |
n/a |
$(2.3) |
$(9.1) |
$6.8 |
|||||
|
Cash: |
|||||||||||
|
Net Cash Used in Operating Activities |
$(6.1) |
$(11.0) |
$4.9 |
n/a |
n/a |
n/a |
|||||
|
Free Cash Flow |
n/a |
n/a |
n/a |
$(4.5) |
$(11.5) |
$7.0 |
|||||
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 who are adopting the PROS Platform such as Air Serbia, Atea, Europcar, Meyle, Nature’s Touch, Nok Air, and QuidelOrtho, among others.
- Launched our new generation of PROS Dynamic Pricing for Ancillaries powered by AI, expanding PROS leadership position in offer optimization for airlines.
- Selected recipient of the Houston Business Journal’s Diversity in Business Award for PROS exceptional commitment to promoting practices that advance diversity, equity, and inclusion in the workplace.
- Published PROS 2022 ESG Report, highlighting our perspectives on and approach to environmental, social, and governance issues that matter most to PROS customers, employees, and shareholders.
- Announced the PROS 2023 Analyst Day scheduled for Tuesday, May 23, 2023 from 1:30 pm MT to 3:30 pm MT during the 2023 Outperform conference in Denver, CO.
Financial Outlook
PROS currently anticipates the following based on an estimated 46.1 million basic weighted average shares outstanding for the second quarter of 2023 and a 22% non-GAAP estimated tax rate for the second quarter and full year 2023.
|
Q2 2023 Guidance |
v. Q2 2022 at Mid- |
Full Year 2023 |
v. Prior Year at Mid- |
||||
|
Total Revenue |
$72.2 to $73.2 |
6% |
$295.0 to $297.0 |
7% |
|||
|
Subscription Revenue |
$56.0 to $56.5 |
12% |
$231.7 to $233.7 |
14% |
|||
|
Subscription ARR |
n/a |
n/a |
$251.0 to $254.0 |
11% |
|||
|
Non-GAAP Loss Per Share |
$(0.08) to $(0.05) |
$0.08 |
n/a |
n/a |
|||
|
Adjusted EBITDA |
$(3.2) to $(2.2) |
$3.3 |
$3.5 to $6.5 |
$19.9 |
|||
|
Free Cash Flow |
n/a |
n/a |
$2.5 to $6.5 |
$26.2 |
Conference Call
In conjunction with this announcement, PROS Holdings, Inc. will host a conference call on Tuesday, May 2, 2023, 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 at www.pros.com.
A telephone replay will be available until Tuesday, May 9, 2023, 11:59 PM ET at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13737916.
