PROS Holdings, Inc., a leading provider of AI-powered SaaS pricing and selling solutions, announced financial results for the fourth quarter and full year ended December 31, 2024.
“I’m incredibly proud of our team for finishing the year strong – in 2024, we achieved 14% subscription revenue growth, delivered a 400% improvement in adjusted EBITDA, won exceptional new customers, and deepened our relationships across our expanding customer base,” stated CEO Andres Reiner. “These results, combined with being ranked a Leader in every key industry analyst evaluation specific to our solutions, highlight our market momentum and position us for continued growth in 2025 and beyond.”
Fourth Quarter and Full Year 2024 Financial Highlights
Key financial results for the fourth quarter and full year 2024 are shown below. Throughout this press release all dollar figures are in millions, except net earnings (loss) per share. Unless otherwise noted, all results are on a reported basis and are compared with the prior-year period.
|
GAAP |
Non-GAAP |
||||||||||||||||||||
|
Q4 2024 |
Q4 2023 |
Change |
Q4 2024 |
Q4 2023 |
Change |
||||||||||||||||
|
Revenue: |
|||||||||||||||||||||
|
Total Revenue |
$ |
85.0 |
$ |
77.5 |
10 |
% |
n/a |
n/a |
n/a |
||||||||||||
|
Subscription Revenue |
$ |
69.3 |
$ |
60.8 |
14 |
% |
n/a |
n/a |
n/a |
||||||||||||
|
Subscription and Maintenance Revenue |
$ |
72.4 |
$ |
65.2 |
11 |
% |
n/a |
n/a |
n/a |
||||||||||||
|
Profitability: |
|||||||||||||||||||||
|
Gross Profit |
$ |
57.6 |
$ |
48.7 |
18 |
% |
$ |
59.4 |
$ |
50.8 |
17 |
% |
|||||||||
|
Operating (Loss) Income |
$ |
(1.6 |
) |
$ |
(10.6 |
) |
$ |
9.0 |
$ |
9.9 |
$ |
1.5 |
580 |
% |
|||||||
|
Net (Loss) Income |
$ |
(2.0 |
) |
$ |
(10.2 |
) |
$ |
8.2 |
$ |
7.5 |
$ |
1.1 |
608 |
% |
|||||||
|
Net (Loss) Earnings Per Share |
$ |
(0.04 |
) |
$ |
(0.22 |
) |
$ |
0.18 |
$ |
0.16 |
$ |
0.02 |
$ |
0.14 |
|||||||
|
Adjusted EBITDA |
n/a |
n/a |
n/a |
$ |
10.9 |
$ |
2.5 |
333 |
% |
||||||||||||
|
Cash: |
|||||||||||||||||||||
|
Net Cash Provided by Operating Activities |
$ |
24.0 |
$ |
13.8 |
73 |
% |
n/a |
n/a |
n/a |
||||||||||||
|
Free Cash Flow |
n/a |
n/a |
n/a |
$ |
23.5 |
$ |
13.6 |
73 |
% |
||||||||||||
|
GAAP |
Non-GAAP |
||||||||||||||||||||
|
FY 2024 |
FY 2023 |
Change |
FY 2024 |
FY 2023 |
Change |
||||||||||||||||
|
Revenue: |
|||||||||||||||||||||
|
Total Revenue |
$ |
330.4 |
$ |
303.7 |
9 |
% |
n/a |
n/a |
n/a |
||||||||||||
|
Subscription Revenue |
$ |
266.3 |
$ |
234.0 |
14 |
% |
n/a |
n/a |
n/a |
||||||||||||
|
Subscription and Maintenance Revenue |
$ |
279.8 |
$ |
254.0 |
10 |
% |
n/a |
n/a |
n/a |
||||||||||||
|
Subscription Annual Recurring Revenue ("ARR") |
n/a |
n/a |
n/a |
$ |
281.5 |
$ |
259.0 |
9 |
% |
||||||||||||
|
Subscription ARR in constant currency |
n/a |
n/a |
n/a |
$ |
283.7 |
$ |
259.0 |
10 |
% |
||||||||||||
|
Profitability: |
|||||||||||||||||||||
|
Gross Profit |
$ |
217.0 |
$ |
188.4 |
15 |
% |
$ |
224.9 |
$ |
197.7 |
14 |
% |
|||||||||
|
Operating (Loss) Income |
$ |
(19.0 |
) |
$ |
(50.6 |
) |
$ |
31.6 |
$ |
26.4 |
$ |
1.5 |
1,641 |
% |
|||||||
|
Net (Loss) Income |
$ |
(20.5 |
) |
$ |
(56.4 |
) |
$ |
35.9 |
$ |
19.3 |
$ |
2.2 |
761 |
% |
|||||||
|
Net (Loss) Earnings Per Share |
$ |
(0.43 |
) |
$ |
(1.22 |
) |
$ |
0.79 |
$ |
0.41 |
$ |
0.05 |
$ |
0.36 |
|||||||
|
Adjusted EBITDA |
n/a |
n/a |
n/a |
$ |
30.0 |
$ |
6.0 |
400 |
% |
||||||||||||
|
Cash: |
|||||||||||||||||||||
|
Net Cash Provided by Operating Activities |
$ |
27.4 |
$ |
9.9 |
177 |
% |
n/a |
n/a |
n/a |
||||||||||||
|
Free Cash Flow |
n/a |
n/a |
n/a |
$ |
26.2 |
$ |
11.4 |
130 |
% |
||||||||||||
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 Arco, BradyPLUS, Cooper Machinery, Fastjet, HBK, Pipeline Packaging, and Werner Electric, among others.
- Expanded adoption of the PROS Platform within existing customers including Adobe, Air Canada, Averitt, BASF, Flydubai, Henkel, Hertz, Holcim, Lufthansa Group, and Manitou, among others.
- Released over 560 new features in the PROS Platform in 2024 that drove new customer acquisition and customer expansion throughout the year, including new solutions such as Smart Rebate Management and generative AI-powered Fare Finder Genie.
- Processed 4.4 trillion transactions in our platform in 2024, a 29% increase in volume year-over-year, underscoring the PROS Platform's significant market value and increasing customer adoption.
Financial Outlook
PROS currently anticipates the following based on an estimated 47.9 million diluted weighted average shares outstanding for the first quarter of 2025 and a 22% non-GAAP estimated tax rate for the first quarter and full year 2025.
|
Q1 2025 Guidance |
v. Q1 2024 at |
Full Year 2025 |
v. Prior Year at |
||||
|
Total Revenue |
$85.0 to $86.0 |
6% |
$360.0 to $362.0 |
9% |
|||
|
Subscription Revenue |
$70.25 to $70.75 |
10% |
$294.0 to $296.0 |
11% |
|||
|
Subscription ARR |
n/a |
n/a |
$308.0 to $311.0 |
10% |
|||
|
Non-GAAP Earnings Per Share |
$0.10 to $0.12 |
$0.07 |
n/a |
n/a |
|||
|
Adjusted EBITDA |
$7.5 to $8.5 |
74% |
$42.0 to $44.0 |
43% |
|||
|
Free Cash Flow |
n/a |
n/a |
$40.0 to $44.0 |
61% |
Conference Call
In conjunction with this announcement, PROS Holdings, Inc. will host a conference call on Thursday, February 6, 2025, 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 Thursday, February 13, 2025, 11:59 PM ET at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13750860.
