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, 2024.
“We delivered a solid second quarter where we exceeded the high-end of our guidance ranges across all metrics,” stated CEO Andres Reiner . “I am proud of our team for building the market-leading profit and revenue optimization platform which drives immense value for our customers, powering 4.1 trillion transactions a year, while delivering to our long-term goal of 80% non-GAAP subscription gross margin.”
Second Quarter 2024 Financial Highlights
Key financial results for the second quarter 2024 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 |
||||||||||
|
Q2 2024 |
Q2 2023 |
Change |
Q2 2024 |
Q2 2023 |
Change |
||||||
|
Revenue: |
|||||||||||
|
Total Revenue |
$82.0 |
$75.8 |
8% |
n/a |
n/a |
n/a |
|||||
|
Subscription Revenue |
$65.6 |
$57.3 |
14% |
n/a |
n/a |
n/a |
|||||
|
Subscription and Maintenance Revenue |
$69.0 |
$62.4 |
11% |
n/a |
n/a |
n/a |
|||||
|
Profitability: |
|||||||||||
|
Gross Profit |
$53.2 |
$47.2 |
13% |
$55.3 |
$49.4 |
12% |
|||||
|
Operating (Loss) Income |
$(7.2) |
$(13.4) |
$6.2 |
$4.4 |
$(1.0) |
$5.3 |
|||||
|
Net (Loss) Income |
$(7.4) |
$(13.3) |
$5.9 |
$3.3 |
$(0.3) |
$3.6 |
|||||
|
Net (Loss) Earnings Per Share |
$(0.16) |
$(0.29) |
$0.13 |
$0.07 |
$(0.01) |
$0.08 |
|||||
|
Adjusted EBITDA |
n/a |
n/a |
n/a |
$5.2 |
$0.1 |
$5.1 |
|||||
|
Cash: |
|||||||||||
|
Net Cash Provided by (Used in) Operating Activities |
$6.4 |
$(6.5) |
$13.0 |
n/a |
n/a |
n/a |
|||||
|
Free Cash Flow |
n/a |
n/a |
n/a |
$6.2 |
$(6.2) |
$12.4 |
|||||
The attached table provides a summary of PROS results for the period, including a reconciliation of GAAP to non-GAAP metrics.
Financial Outlook
PROS currently anticipates the following based on an estimated 47.8 million diluted weighted average shares outstanding for the third quarter of 2024 and a 22% non-GAAP estimated tax rate for the third quarter and full year 2024.
|
Q3 2024 |
v. Q3 2023 at |
Full Year 2024 |
v. Prior Year at |
||||
|
Total Revenue |
$81.5 to $82.5 |
6% |
$329.0 to $331.0 |
9% |
|||
|
Subscription Revenue |
$65.8 to $66.3 |
10% |
$263.5 to $265.5 |
13% |
|||
|
Subscription ARR |
n/a |
n/a |
$280.0 to $284.0 |
9% |
|||
|
Non-GAAP Earnings Per Share |
$0.08 to $0.10 |
$— |
n/a |
n/a |
|||
|
Adjusted EBITDA |
$6.5 to $7.5 |
$1.4 |
$21.0 to $24.0 |
$16.5 |
|||
|
Free Cash Flow |
n/a |
n/a |
$20.0 to $24.0 |
$10.6 |
Conference Call
In conjunction with this announcement, PROS Holdings, Inc. will host a conference call on Tuesday, July 30, 2024, 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 6, 2024, 11:59 PM ET at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13747137.
