PROS Holdings, Inc., a leading provider of AI-powered SaaS pricing, CPQ, revenue management, and digital offer marketing solutions, announced financial results for the second quarter ended June 30, 2023.
“We delivered an outstanding second quarter, exceeding our guidance ranges across all metrics, driving 14% subscription revenue growth, and delivering a more than 100% improvement to adjusted EBITDA year-over-year,” stated CEO Andres Reiner. “Our performance in the first half of 2023 is a testament to the critical need for the PROS Platform in the market as businesses look to embrace digitization, automation, and AI to fuel profitable growth. Our passion for continuous AI innovation and delivering exceptional customer value is why we continue to welcome many new customers to PROS across the industries we serve.”
Second Quarter 2023 Financial Highlights
Key financial results for the second 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.
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GAAP |
Non-GAAP |
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|
Q2 2023 |
Q2 2022 |
Change |
Q2 2023 |
Q2 2022 |
Change |
||||||
|
Revenue: |
|||||||||||
|
Total Revenue |
$75.8 |
$68.4 |
11% |
n/a |
n/a |
n/a |
|||||
|
Subscription Revenue |
$57.3 |
$50.4 |
14% |
n/a |
n/a |
n/a |
|||||
|
Subscription and Maintenance Revenue |
$62.4 |
$57.6 |
8% |
n/a |
n/a |
n/a |
|||||
|
Profitability: |
|||||||||||
|
Gross Profit |
$47.2 |
$40.7 |
16% |
$49.4 |
$43.4 |
14% |
|||||
|
Operating (Loss) Income |
$(13.4) |
$(20.5) |
$7.2 |
$(1.0) |
$(7.2) |
$6.2 |
|||||
|
Net (Loss) Income |
$(13.3) |
$(22.4) |
$9.1 |
$(0.3) |
$(6.5) |
$6.2 |
|||||
|
Net (Loss) Earnings Per Share |
$(0.29) |
$(0.50) |
$0.21 |
$(0.01) |
$(0.14) |
$0.13 |
|||||
|
Adjusted EBITDA |
n/a |
n/a |
n/a |
$0.1 |
$(6.0) |
$6.1 |
|||||
|
Cash: |
|||||||||||
|
Net Cash Used in Operating Activities |
$(6.5) |
$(1.9) |
$(4.6) |
n/a |
n/a |
n/a |
|||||
|
Free Cash Flow |
n/a |
n/a |
n/a |
$(6.2) |
$(2.2) |
$(4.0) |
|||||
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 many new customers who are adopting the PROS Platform such as Condor, JSX, Novolex, Pipeline Supply & Services, PODS, Singapore Airlines Cargo, and XMA Limited, among others.
- Launched a new partnership with Adobe that combines Adobe’s Commerce offering with PROS market leading CPQ product configuration capabilities, enabling Adobe Commerce customers to power personalized products and offers through their eCommerce channels.
- Delivered the 2023 Outperform with PROS Conference which had PROS largest, in-person user conference turnout ever; the event featured over 50 customer speakers and attracted business leaders from around the globe eager to learn how to use digitization, automation, and AI to thrive in ever-changing markets.
- Hosted PROS 2023 Analyst Day on May 23, 2023 at the 2023 Outperform with PROS Conference where PROS executive management team presented PROS vision, strategy, and three-year financial projections.
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Financial Outlook PROS currently anticipates the following based on an estimated 46.7 million diluted weighted average shares outstanding for the third quarter of 2023 and a 22% non-GAAP estimated tax rate for the third quarter and full year 2023. |
Q3 2023 Guidance |
v. Q3 2022 at Mid- |
Full Year 2023 |
v. Prior Year at Mid- |
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|
Total Revenue |
$75.0 to $76.0 |
7% |
$300.0 to $302.0 |
9% |
|||
|
Subscription Revenue |
$58.6 to $59.1 |
14% |
$231.7 to $233.7 |
14% |
|||
|
Subscription ARR |
n/a |
n/a |
$251.0 to $254.0 |
11% |
|||
|
Non-GAAP Earnings Per Share |
$0.03 to $0.04 |
$0.10 |
n/a |
n/a |
|||
|
Adjusted EBITDA |
$2.5 to $3.5 |
$5.2 |
$5.5 to $7.5 |
$21.4 |
|||
|
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, July 25, 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, August 1, 2023, 11:59 PM ET at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13739818.
