| --- | --- | --- | --- | --- | --- | |-------|-------|-------|-----------|---------------|---------| | | | | | | | | | | | | | | | | | | | | | | | | | | PROS Holdings | Q3 2021 | | | | | NYSE: PRO | | | Disclaimer / Forward-Looking Statements Included in this presentation are forward-looking statements including, but not limited to, those related to earnings, addressable market and other financial projections. These predictions, estimates, and other forward-looking statements involve known and unknown risk ...

Pros Holdings, Inc. (NYSE:PRO) Q3 2021 Earnings Conference Call November 2, 2021 4:45 PM ET Company Participants Belinda Overdeput - Senior Manager, IR Andres Reiner - President & CEO Stefan Schulz - CFO Conference Call Participants Robert Oliver - Robert W. Baird Chad Bennett - Craig-Hallum Joshua Reilly - Needham Jackson Ader – JPMorgan Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 ___________________________________________________________________________ FORM 10-Q ___________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period f ...

Pros Holdings, Inc. (NYSE:PRO) Q2 2021 Earnings Conference Call August 3, 2021 4:45 PM ET Company Participants Belinda Overdeput - Senior Manager, IR Andres Reiner - CEO, President & Director Stefan Schulz - EVP & CFO Conference Call Participants Robert Oliver - Robert W. Baird & Co. Joshua Reilly - Needham & Company Nehal Chokshi - Northland Capital Markets Maxwell Osnowitz - Stifel, Nicolaus & Company Stan Zlotsky - Morgan Stanley Chad Bennett - Craig-Hallum Devin Au - KeyBanc Capital Markets Jackson Ader ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 ___________________________________________________________________________ FORM 10-Q ___________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from t ...

PROS Holdings, Inc. (NYSE:PRO) Q1 2021 Earnings Conference Call May 4, 2021 4:45 PM ET Company Participants Belinda Overdeput - Senior Manager of Investor Relations Andres Reiner - President and Chief Executive Officer Stefan Schulz - Chief Financial Officer Conference Call Participants Nehal Chokshi - Northland Capital Markets Scott Berg - Needham & Company Max Osnowitz - Stifel Stan Zlotsky - Morgan Stanley Jackson Ader - JPMorgan Chad Bennett - Craig-Hallum Capital Group Devin Au - KeyBanc Capital Market ...

| --- | --- | --- | --- | --- | --- | |-------|-------|-------|-----------|---------------|---------| | | | | | | | | | | | | | | | | | | | | | | | | | | PROS Holdings | Q1 2021 | | | | | NYSE: PRO | | | Disclaimer / Forward-Looking Statements Included in this presentation are forward-looking statements including, but not limited to, those related to earnings, addressable market and other financial projections. These predictions, estimates, and other forward-looking statements involve known and unknown risk ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 ___________________________________________________________________________ FORM 10-Q ___________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ...

Revenue Composition - More than 50% of PROS revenue in 2020 and 2019 was derived from cloud solutions, with over 90% of solutions sold as SaaS offerings since 2017 [20]. - Revenue from maintenance and support services comprised 18%, 23%, and 33% of total revenue in 2020, 2019, and 2018, respectively, indicating a decline as customers migrate to cloud solutions [38]. - Approximately 67% of total revenue in 2020 came from customers outside the U.S., showing geographical diversity in the customer base [39]. - Subscription revenue represented the majority of total revenue for the year ended December 31, 2020, with maintenance and support revenue from legacy on-premises software products declining to approximately 18% of total revenue [73]. - Total revenue for the year ended December 31, 2020, was $252.4 million, a slight increase from $250.3 million in 2019 [144]. - Subscription revenue increased by 17% in 2020 compared to 2019, accounting for 68% of total revenue [148]. - Annual recurring revenue (ARR) as of December 31, 2020, was $209.7 million, down 5% from $219.8 million in 2019 [146]. - Total recurring revenue for 2020 was $215.2 million, representing a 6% increase from $203.5 million in 2019 [149]. - Total revenue for the year ended December 31, 2020, was $250.3 million, an increase of 27% compared to $197.0 million in 2019 [188]. - Subscription revenue increased by 47% to $145.3 million in 2019 from $98.7 million in 2018, representing 58% of total revenue [188]. Financial Performance - Cash used in operating activities was $49.4 million for the year ended December 31, 2020, compared to cash provided of $5.2 million in 2019 [147]. - Free cash flow for the year ended December 31, 2020, was $(53.3) million, a decrease from $(0.9) million in 2019 [148]. - Gross profit for 2020 was $147.8 million, down from $151.2 million in 2019 [144]. - Net loss for the year ended December 31, 2020, was $(76.98) million, compared to $(69.08) million in 2019 [144]. - Total operating expenses for 2020 were $213.9 million, accounting for 85% of total revenue, up from $204.6 million (82% of total revenue) in 2019, reflecting a 5% increase [178]. - Research and development expenses rose by 12% to $75.6 million in 2020, driven by an increase in employee-related costs [180]. - Cash and cash equivalents at the end of 2020 were $329.1 million, up from $306.1 million at the end of 2019 [192]. - The effective tax rate for 2020 was (0.9)%, consistent with 2019, primarily due to valuation allowances on deferred tax assets [183]. - The company recognized a $5.7 million loss on debt extinguishment related to its 2019 Notes and 2047 Notes in 2019, impacting other income [182]. - The company plans to monitor liquidity closely due to potential disruptions from the COVID-19 pandemic and may raise additional funds through equity or debt financing if necessary [194]. Market Position and Competition - The competitive landscape includes both larger and smaller competitors, with PROS emphasizing its unmatched ability to deliver sales and pricing AI with speed, scale, and precision [41]. - The company anticipates continued competition as it expands into adjacent market segments, with a focus on product architecture, functionality, and AI capabilities [44]. - Competition in the enterprise software market is intense, with potential competitors having greater resources and established user bases, which could impact pricing and margins [96][97]. - The company relies heavily on its direct sales force for revenue generation, and the ability to recruit and retain qualified personnel is critical for future growth [101]. - The company plans to expand its indirect sales force through channel partners, which is expected to drive sales growth [102]. Operational Challenges - The company reported that the COVID-19 pandemic has adversely impacted revenue, customer bookings, and operating cash flow, particularly in the travel industry [66]. - The decline in customer spending levels and business failures among clients due to COVID-19 may adversely impact the company's financial health and operations [70]. - Lengthy sales cycles remain a challenge, with cycles taking from one month to over a year for large enterprise customers, potentially affecting revenue [94]. - Implementation projects for software solutions involve risks that could harm the company's reputation and financial performance if not managed effectively [79]. - The company must manage its cloud operations to handle changes in customer usage and prevent system disruptions, which could lead to contractual obligations for service credits [80]. Research and Development - The company incurred research and development expenses of $75.6 million, $67.2 million, and $55.7 million in fiscal years 2020, 2019, and 2018, respectively, to enhance existing solutions and develop new ones [46]. - The company has invested significantly in AI and machine learning, differentiating its offerings in pricing and revenue management solutions [46]. - The company plans to continue investing in product development and cloud solutions to enhance customer experience and drive future growth [160]. Employee and Workplace Culture - The company achieved a 94% recommendation rate from U.S.-based team members in its most recent engagement survey, indicating a strong workplace culture [51]. - The company’s commitment to diversity and inclusion is reflected in its workforce, with women representing 36% of global employees and over half of U.S. employees from minority groups [56]. - The company’s total rewards programs are designed to ensure pay parity and attract a talented workforce, with ongoing investments in employee development and well-being [53]. Risks and Compliance - Evolving data privacy and cybersecurity laws, such as GDPR and CCPA, pose compliance challenges and potential liabilities for the company [103]. - The company faces risks related to intellectual property litigation, which could incur significant expenses and affect software sales [107]. - The company has not used risk management techniques to hedge against foreign currency exchange rate fluctuations, which could impact revenue and operating margins [88]. - The company is exposed to risks from international operations, with the majority of revenues derived from customers outside the U.S. [88]. - The company has customers in over 60 countries and expects international operations to continue to grow despite various risks [89]. Intellectual Property and Security - The company’s intellectual property strategy relies on trade secrets and proprietary know-how, which are considered advantageous for protecting its technology [45]. - The company has incurred significant costs to maintain security measures against data breaches, which could result in legal and financial liabilities if security incidents occur [71]. - The company faces challenges in protecting its intellectual property, which is crucial for maintaining its competitive position in the market [81]. - Any unauthorized actions by personnel could lead to revenue recognition issues and potential restatements [106]. - The use of open source software may expose the company to legal claims and require costly modifications to its products [110].

| --- | --- | --- | --- | --- | --- | |-------|-------|-------|------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | PROS Holdings Q4 & Full Year | | 2020 | | | | | NYSE: PRO | | | Disclaimer / Forward-Looking Statements Included in this presentation are forward-looking statements including, but not limited to, those related to earnings, addressable market and other financial projections. These predictions, estimates, and other forward-looking statements involve k ...