Core Insights - PROS Holdings, Inc. and Commerce have formed a strategic partnership aimed at redefining B2B digital commerce through AI-powered pricing and selling solutions [1][2][3] Company Overview - PROS Holdings, Inc. is a leading provider of SaaS solutions that optimize omnichannel shopping and selling experiences, leveraging predictive AI, real-time analytics, and automation to enhance pricing and product recommendations [5] - Commerce operates an open, AI-driven commerce ecosystem, connecting various tools and systems to empower businesses to innovate and grow, serving a diverse range of clients [6] Industry Trends - B2B buyers are increasingly demanding accuracy, speed, and transparency throughout the purchasing journey, necessitating advanced solutions to handle the complexities of large-scale operations [2] - The partnership aims to address these demands by integrating PROS' enterprise-grade pricing and CPQ with Commerce's applications, resulting in fewer delays and reduced errors [2][3] Strategic Implications - The collaboration is expected to enable businesses to optimize pricing, streamline quoting processes, and deliver real-time offers, thereby enhancing buyer confidence and accelerating decision-making [3] - This partnership is positioned to set a new standard for modern commerce, impacting not only B2B but also B2C retailers managing large, dynamic catalogs [4]

Summary of PROS Update / Briefing June 13, 2025 Company Overview - **Company**: PROS - **Industry**: Technology (specifically focused on pricing and revenue optimization solutions) Key Points and Arguments Leadership Transition - Jeff Cotton has recently taken over as President and CEO, focusing on understanding the company and its customers during his initial weeks [4][5] - The company is experiencing significant opportunities for growth, particularly in expanding existing customer relationships and cross-selling products [6][7] Market Opportunities - There is a strong potential for expanding the customer base in both B2B and travel sectors, with existing customers showing interest in additional products [6][7] - The company is actively pursuing partnerships in the CRM, e-commerce, and ERP spaces to enhance deal flow and market presence [8] Financial Performance and Guidance - PROS reaffirmed its Q2 guidance, indicating that business performance remains strong despite recent leadership changes [12][14] - The company executed a convertible debt transaction worth $235 million, which involved exchanging existing bonds for new ones, effectively reducing debt levels [15][18] AI and Competitive Advantage - PROS maintains a competitive edge through its proprietary algorithms and machine learning models, which are tailored to customer-specific data rather than general public data [20][21] - The company emphasizes the importance of real-time predictions in pricing and revenue optimization, which standard LLMs cannot provide [21][22] Sales Strategy - The company is focused on accelerating deal velocity and expanding its sales approach, aiming to increase the number of opportunities while maintaining a strong win rate [25][26] - There is a commitment to leveraging AI to improve productivity and drive growth without increasing headcount [28][29] Partnerships and Market Position - PROS is exploring strategic partnerships, particularly in the airline sector, to enhance its competitive positioning and offer differentiated solutions [44][46] - The company is looking to establish relationships with management consulting firms to integrate PROS solutions into their travel offerings [46] Future Outlook - The leadership is committed to the "Rule of 40" framework, aiming for balanced growth in free cash flow and profitability while investing in market opportunities [28][30] - Jeff Cotton emphasizes the importance of aligning the executive team around go-to-market strategies to drive growth and execution [36][48] Additional Important Content - The company is focused on maintaining a stable capital structure while providing flexibility for future growth initiatives [18] - The leadership transition is seen as an opportunity to enhance alignment and execution within the organization [36][48]

Summary of PROS Holdings Conference Call Company Overview - **Company**: PROS Holdings - **Industry**: AI-powered pricing and revenue management solutions - **Core Focus**: Optimizing shopping and selling experiences through AI solutions, including revenue management, price optimization, and CPQ (Configure Price Quote) [12][10][11] Key Points Leadership Transition - **New CEO**: Jeff Cotton has taken over from long-time CEO Andres, who served for over 15 years [15][14] - **CEO Selection Criteria**: Experience in technology, go-to-market strategies, and alignment with company culture were key factors in the selection [16][17] Business Strategy and Goals - **Long-term Objectives**: The company aims to be a "Rule of 40" company, balancing revenue growth and free cash flow margins [19][20] - **AI Integration**: Continued emphasis on infusing AI into all aspects of the business, both in product offerings and internal operations [21][22] - **Channel Strategy**: Plans to diversify go-to-market strategies beyond direct sales to include partnerships and other channels [22] Market Trends and Opportunities - **B2B Market Dynamics**: Increased volatility in pricing strategies due to market conditions has led to a greater willingness among B2B companies to adopt AI solutions for pricing [24][25] - **Travel Industry Recovery**: The travel sector, particularly passenger airlines, is showing signs of recovery and increased interest in revenue optimization solutions [26][27] - **Real-time Pricing Capabilities**: PROS offers real-time pricing solutions that can react to market changes in as little as 400 milliseconds, providing a competitive edge [29] Financial Performance and Projections - **Revenue Guidance**: Projected revenue for the year is approximately $361 million, with 85% recurring revenue from a strong SaaS model [13] - **Backlog and Growth**: The company has a healthy backlog that is expected to drive growth in the second half of the year [60][61] Product Innovations - **Agentic AI**: Introduction of Agentic AI to enhance product capabilities and customer value, with plans to expand the number of agents on the platform [67][68] - **Dynamic Ancillary Pricing**: New product aimed at optimizing ancillary revenue streams for airlines, which is becoming increasingly important for profitability [36] Customer Engagement and Feedback - **Customer Testimonials**: Positive feedback from customers at the Outperform conference highlighted the effectiveness and adaptability of PROS solutions compared to competitors [68][70] Margin Management - **Margin Expansion**: Focus on improving free cash flow margins through AI integration and operational efficiencies, with confidence in achieving targets by 2027 [64][65] Additional Insights - **Sales Team Tenure**: Increased average tenure of sales representatives is contributing to improved sales effectiveness and shorter sales cycles [30] - **Industry Focus**: PROS is seeing traction across various industries, including industrial manufacturing, chemicals, energy, and food, indicating a broad market opportunity [43][44] This summary encapsulates the key insights and strategic directions discussed during the PROS Holdings conference call, highlighting the company's focus on AI, market recovery, and growth potential.

Summary of PROS Update / Briefing May 14, 2025 Company Overview - **Company**: PROS - **Industry**: AI-driven software solutions, particularly in pricing and revenue management Key Points and Arguments AI Innovations and Product Development - PROS is launching **50 new AI agents** aimed at transforming productivity and business outcomes by combining large language models with mathematical models [10][12] - The concept of **"every person in the company will be a manager"** is introduced, emphasizing the role of AI agents in enhancing individual productivity [10] - AI agents will assist in various tasks, such as sales processes, by autonomously managing renewals and pricing strategies [12][13] - The focus on **customer co-development** of products highlights the collaborative culture within PROS [8][14] Market Demand and Volatility - Market volatility, including factors like inflation and tariffs, drives demand for PROS solutions, as companies seek to adapt quickly to changing conditions [17][22] - PROS technology enables companies to execute pricing strategies rapidly, providing a competitive edge during volatile periods [19][20] Financial Performance and Guidance - PROS reported a **positive free cash flow** in Q1 for the first time in a long time, indicating strong financial health [23] - The company anticipates an **accelerating second half** of the year based on strong bookings in both subscription and services [24] Strategic Focus and Market Positioning - The new CEO emphasizes the need to **amplify brand awareness** and enhance demand generation efforts, particularly through partnerships [30][32] - PROS aims to leverage its **partner ecosystem** to increase market penetration and capitalize on opportunities within the CRM landscape [52][54] Travel Industry Insights - Airlines are increasingly focused on **offer optimization** and enhancing customer experiences, which aligns with PROS' capabilities [35][37] - The company is witnessing a resurgence in demand as airlines recover from the impacts of COVID-19, with a focus on technology that drives efficiency without increasing headcount [44][45] Competitive Landscape - PROS holds a **leadership position** in the CPQ market, differentiating itself with a headless commerce architecture that is adaptable across various CRM systems [88][90] - The competitive environment is seen as improving, with PROS positioned to benefit from the transition away from traditional CRM solutions [89][91] AI Adoption and Internal Efficiency - The internal adoption of AI is extensive, with a focus on using AI to enhance operational efficiency and scale without increasing headcount [75][78] - The leadership team is committed to embedding AI across all functions, which is expected to yield significant future benefits [80][82] Revenue Model and Stability - PROS' revenue model is largely insulated from fluctuations in passenger volumes in the airline industry, with only about **1% of revenue** directly impacted by volume [86] - The company has a tiered pricing structure that provides stability even during downturns in the airline sector [86] Additional Important Insights - The emphasis on **responsible AI** and building trust in AI solutions is crucial for wider adoption among B2B customers [57][59] - The company is exploring opportunities to restructure its capital to enhance flexibility and support growth initiatives [66][68] This summary encapsulates the key insights from the PROS update, highlighting the company's strategic direction, market positioning, and financial outlook.

Group 1 - The stock of Pros Holdings (PRO) closed at $16.87, reflecting a 2.1% gain over the past four weeks, with a mean price target of $28.86 indicating a potential upside of 71.1% [1] - The average price targets from analysts range from a low of $22 to a high of $38, with a standard deviation of $5.98, suggesting a variability in estimates; the lowest estimate indicates a 30.4% increase, while the highest suggests a 125.3% upside [2] - Analysts show a consensus that PRO will report better earnings than previously estimated, which is a positive indicator for potential stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for the current year has increased by 18.9% over the last 30 days, with three estimates moving higher and no negative revisions [12] - PRO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential for upside in the near term [13] - While price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movements [13]

Group 1 - PROS Holdings (NYSE: PRO) has experienced poor stock performance this year due to increased investor uncertainty related to its exposure to the airline industry, which is currently under demand pressure [1] - The company's Q1 results have not been detailed in the provided text, but the context suggests that they may be impacted by the challenges faced by the airline sector [1] Group 2 - The article does not provide any specific financial metrics or performance indicators for PROS Holdings or the airline industry [1]

Core Insights - Pros Holdings (PRO) reported revenue of $86.32 million for the quarter ended March 2025, marking a year-over-year increase of 7% and exceeding the Zacks Consensus Estimate of $85.43 million by 1.04% [1] - The company's earnings per share (EPS) for the same period was $0.13, compared to $0.04 a year ago, aligning with the consensus EPS estimate [1] Revenue Breakdown - Total subscription, maintenance, and support revenue reached $73.56 million, surpassing the average estimate of $73.20 million by analysts, reflecting an 8.3% year-over-year increase [4] - Subscription revenue was reported at $70.83 million, exceeding the average estimate of $70.50 million, with a year-over-year change of 10.1% [4] - Maintenance and support revenue was $2.73 million, slightly above the average estimate of $2.70 million, but showed a significant year-over-year decline of 24.1% [4] - Services revenue amounted to $12.76 million, exceeding the average estimate of $12.24 million, with a minimal year-over-year change of 0.1% [4] Stock Performance - Pros Holdings shares have returned -11.1% over the past month, in contrast to the Zacks S&P 500 composite's -0.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - Pros Holdings reported quarterly earnings of $0.13 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.04 per share a year ago [1] - The company posted revenues of $86.32 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 1.04%, and up from $80.69 million year-over-year [2] - Pros Holdings has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times during the same period [2] Group 2 - The stock has underperformed, losing about 22.2% since the beginning of the year, compared to the S&P 500's decline of 5.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $89.68 million, and for the current fiscal year, it is $0.61 on revenues of $360.67 million [7] - The Computer - Software industry, to which Pros Holdings belongs, is currently in the top 33% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Pros (PRO) Q1 2025 Earnings Call May 01, 2025 04:45 PM ET Company Participants Belinda Overdeput - Senior Director - IRAndres Reiner - President and CEOStefan Schulz - CFOScott Berg - Managing DirectorMatthew Kikkert - Equity Research AssociateNehal Chokshi - Managing Director Conference Call Participants Zane Meehan - Associate Analyst, Equity Research Operator Welcome to the PROS Holdings First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A ...

Financial Data and Key Metrics Changes - The company reported a trailing twelve month recurring calculated billings growth of 14% year over year, marking the strongest performance in ten quarters [6] - Subscription revenue reached $70.8 million, up 10% year over year, while total revenue was $86.3 million, up 7% year over year, both exceeding guidance [20] - Free cash flow improved by $6 million year over year to $1.1 million, despite Q1 typically being a seasonally high cash used quarter [19][22] - Non-GAAP earnings per share was $0.13, also exceeding guidance [23] Business Line Data and Key Metrics Changes - Recurring revenue constituted 85% of total revenue, an increase from 84% in Q1 of the previous year [20] - Non-GAAP subscription gross margin improved to 81%, an increase of over 160 basis points year over year [21] - Non-GAAP services gross margin was 13%, improving by over 460 basis points year over year [21] Market Data and Key Metrics Changes - The company saw strong demand in the travel sector, winning contracts with two of the top seven US carriers [12] - The ongoing market volatility has led to increased adoption of AI-powered pricing and selling solutions, with companies recognizing the need for real-time data-driven decisions [9][10] Company Strategy and Development Direction - The company is focused on enhancing its AI-powered pricing and selling solutions, which are deemed mission-critical in volatile markets [6][14] - The upcoming Outperform conference will showcase the latest AI innovations, emphasizing the integration of AI with customer experience [14] - The company plans to increase investments in selling and marketing in the second quarter [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the complex selling environment due to macroeconomic uncertainties but noted strong execution and demand across B2B and travel sectors [5][34] - There is confidence in the company's ability to navigate market volatility, with an increase in inbound demand and SDR-based meetings booked [35] - The company maintains its full-year guidance despite positive momentum, citing macro risks as a consideration [62] Other Important Information - The company announced the planned retirement of its CEO, with Jeff Cotton set to take over as president and CEO [15][16] - The company exited Q1 with $170 million in cash and investments [22] Q&A Session Summary Question: Insights on the travel segment's momentum - Management noted improvements in travel bookings and highlighted innovations in offer optimization that resonate with airlines [30][31] Question: Impact of current macro conditions on business - Management indicated that the complex selling environment has not negatively impacted demand, with companies accelerating initiatives [34][35] Question: Clarification on gross margin improvements - Management explained that efficiencies in cloud solutions and automation in services have driven better gross margins [40][41] Question: Customer behavior regarding implementations - Management reported no significant changes in demand patterns, with strong demand for CPQ solutions [44] Question: Revenue guidance breakdown - Management provided a split of approximately 40% new customers and 60% existing customers, expecting this mix to remain consistent [51] Question: Go-to-market changes contributing to improved bookings - Management highlighted improvements in sales execution, marketing function, and demand generation as key contributors to better bookings [55]