Revenue Performance - Subscription revenue increased by 10% to $70.83 million for Q1 2025 compared to Q1 2024, contributing to a total revenue increase of 7% to $86.32 million[62][69] - Recurring revenue accounted for 85% of total revenue, with gross revenue retention rates remaining above 93%[63] - Maintenance and support revenue decreased by 24% to $2.73 million, attributed to customer churn and migration to cloud solutions[70] - Services revenue remained stable at $12.76 million, with gross profit percentages for services improving to 8% from 3%[71][74] Profitability and Margins - Subscription gross profit margin improved to 79% in Q1 2025 from 77% in Q1 2024, while total gross profit margin increased to 68% from 64%[64] - The net loss decreased significantly to 4% of total revenue in Q1 2025 from 14% in Q1 2024[68] Cash Flow and Liquidity - Operating cash flow improved to $1.2 million in Q1 2025, compared to cash used of $4.6 million in Q1 2024, due to reduced net loss and strong collections[65] - Net cash provided by operating activities for Q1 2025 was $1.2 million, a significant improvement from a net cash used of $4.6 million in Q1 2024[87] - Cash and cash equivalents stood at $160 million as of March 31, 2025, with working capital increasing to $55.5 million[83] - The net change in cash, cash equivalents, and restricted cash for Q1 2025 was a decrease of $1.96 million, compared to a decrease of $12.32 million in Q1 2024[86] Operating Expenses - Total operating expenses remained relatively stable at $62.22 million in Q1 2025, with selling and marketing expenses increasing by 6%[75] Tax and Financial Provisions - The effective tax rate was (21)% for Q1 2025, reflecting foreign income and withholding taxes, with a significant increase in the income tax provision[81] Financing Activities - Net cash used in financing activities for Q1 2025 was $3.1 million, a decrease from $7.3 million in Q1 2024, attributed to lower tax withholding payments related to employee share-based awards[89] Debt and Credit Agreements - As of March 31, 2025, there were no outstanding borrowings under the Credit Agreement, with $0.4 million of unamortized debt issuance costs included in prepaid and other current assets[92] - The Credit Agreement requires maintaining a cash balance of at least $10 million, which is included in restricted cash[93] Market Risks and Financial Condition - There are no off-balance sheet arrangements that materially affect the company's financial condition[90] - The company has not experienced any material changes in exposure to market risks[96] Accounting and Reporting - The company’s financial statements are prepared in accordance with GAAP, requiring estimates and assumptions that could affect reported amounts[95]

Financial Performance - Total revenue for Q1 2025 was $86.3 million, representing a 7% increase year-over-year from $80.7 million in Q1 2024[4] - Subscription revenue reached $70.8 million in Q1 2025, up 10% from $64.3 million in Q1 2024[6] - Gross profit for Q1 2025 was $58.4 million, a 13% improvement compared to $51.9 million in Q1 2024[4] - Operating loss improved to $(3.8) million in Q1 2025 from $(10.3) million in Q1 2024, reflecting a $6.5 million improvement[4] - Net loss narrowed to $(3.7) million in Q1 2025, compared to $(11.4) million in Q1 2024, marking a $7.7 million improvement[4] - Free cash flow improved to $1.1 million in Q1 2025, a 123% increase from $(4.9) million in Q1 2024[4] - Non-GAAP net income for Q1 2025 was $6,402,000, a significant increase of 216% from $2,029,000 in Q1 2024[33] - The company reported a net loss of $3,689,000 in Q1 2025, which is a 68% improvement from a net loss of $11,357,000 in Q1 2024[29] - Adjusted EBITDA for Q1 2025 was $8,702,000, a significant increase from $4,585,000 in Q1 2024, representing an 89% year-over-year growth[38] Revenue Guidance - The company anticipates Q2 2025 total revenue guidance of $87.0 to $88.0 million, representing a 7% increase year-over-year[9] - Subscription revenue guidance for Q2 2025 is projected at $72.0 to $72.5 million, reflecting a 10% increase compared to Q2 2024[9] - Adjusted EBITDA for full year 2025 is expected to be between $42.0 to $44.0 million, a 43% increase year-over-year[9] - The guidance for Q2 2025 projects Adjusted EBITDA between $4,000,000 and $5,000,000[38] - Full Year 2025 guidance estimates Adjusted EBITDA to be between $42,000,000 and $44,000,000[38] Asset and Liability Management - Total current assets increased to $244,062,000 as of March 31, 2025, compared to $239,116,000 at the end of 2024[27] - Total liabilities rose to $492,972,000 as of March 31, 2025, up from $488,605,000 at the end of 2024[27] - The company’s cash and cash equivalents decreased slightly to $160,023,000 from $161,983,000 at the end of 2024[27] - Deferred revenue increased to $146,113,000 in Q1 2025, up from $130,977,000 in Q4 2024, indicating growth in future revenue recognition[27] Subscription Metrics - GAAP subscription gross profit for Q1 2025 reached $56,281,000, up 13% from $49,736,000 in Q1 2024[39] - Non-GAAP subscription gross profit for Q1 2025 was $57,157,000, reflecting a 12% increase from $50,891,000 in Q1 2024[39] - Non-GAAP earnings per share for Q1 2025 was $0.13, compared to $0.04 in Q1 2024[33] - Non-GAAP subscription gross margin increased to 80.7% in Q1 2025 from 79.1% in Q1 2024[39] Operational Improvements - Share-based compensation for Q1 2025 was $10,669,000, down from $12,700,000 in Q1 2024[38] - Amortization of acquisition-related intangibles decreased to $953,000 in Q1 2025 from $1,301,000 in Q1 2024[38] - GAAP Loss from Operations for Q1 2025 improved to $(3,825,000) compared to $(10,302,000) in Q1 2024[38] Product Innovations - The company introduced new AI innovations, including PROS Sales Agent and PROS Rebate Agent, to enhance its product offerings[14]

Core Viewpoint - Pros Holdings (PRO) is positioned well to continue its trend of beating earnings estimates, particularly in the upcoming quarterly report [1]. Earnings Performance - Pros Holdings has a strong history of exceeding earnings estimates, with an average surprise of 39.32% over the last two quarters [2]. - In the most recent quarter, the company reported earnings of $0.16 per share, surpassing the expected $0.13 per share, resulting in a surprise of 23.08% [3]. - For the previous quarter, the consensus estimate was $0.09 per share, while the actual earnings were $0.14 per share, leading to a surprise of 55.56% [3]. Earnings Estimates and Predictions - Estimates for Pros Holdings have been trending upward, supported by its history of earnings surprises [6]. - The company currently has a positive Zacks Earnings ESP of +36%, indicating that analysts are optimistic about its earnings prospects [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat in the upcoming report scheduled for May 1, 2025 [9]. Earnings ESP Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [7]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [8]. - A negative Earnings ESP reduces predictive power but does not necessarily indicate an earnings miss [10].

Pros Holdings (PRO) shares ended the last trading session 12.5% higher at $17.16. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 28% loss over the past four weeks.The increase in share price can attributed to President Trump’s announcement of a 90-day pause on reciprocal tariffs, barring China. This led to subsequent increases for most stocks including PROS Holdings and skyrocketing indices. The company is benefit ...

Shares of PROS Holding (NYSE: PRO ) have risen nearly 30% since my previous write-up in November where I outlined my reasons for being bullish. The company's Q4 results were impressive on the top and bottomAn individual investor primarily focused on undercovered companies, with more than 50 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital for over 7 years in a broad range of companies globally. Through my years ...

Financial Performance - Total revenue for the year ended December 31, 2024, was $330,372 thousand, representing a 9% increase from $303,708 thousand in 2023[167]. - Subscription revenue increased by 14% to $266,272 thousand in 2024, up from $234,024 thousand in 2023, primarily due to an increase in new and existing customer subscription contracts[167]. - Gross profit for the year ended December 31, 2024, was $217,043 thousand, a 15% increase from $188,395 thousand in 2023, with gross profit margins improving to 66% from 62%[170]. - Operating expenses decreased by 1% to $236,065 thousand in 2024, compared to $238,997 thousand in 2023[173]. - Net cash provided by operating activities increased to $27,383 thousand in 2024, up from $9,877 thousand in 2023, attributed to a reduction in net loss and a 9% increase in total revenue[188]. - The effective tax rate for 2024 was (7)%, compared to (2)% in 2023, with an income tax provision of $1,314 thousand, up 41% from $933 thousand in 2023[180]. - Total cost of revenue decreased by 2% to $113,329 thousand in 2024, down from $115,313 thousand in 2023[170]. - The company expects maintenance revenue to continue to decline as it migrates maintenance customers to cloud solutions[168]. Revenue Composition - Recurring revenue accounted for 85% of total revenue in 2024, with gross revenue retention rates remaining above 93%[153]. - Subscription annual recurring revenue (ARR) on a constant currency basis as of December 31, 2024 was $283.7 million, an increase of 10% from $259.0 million as of December 31, 2023[152]. - Subscription revenue recognition model may lead to delays in reflecting new or renewed subscriptions in quarterly results, impacting revenue visibility[114]. - Maintenance and support revenue decreased by 32% to $13,494 thousand in 2024, down from $19,958 thousand in 2023, as existing maintenance customers migrated to cloud solutions[168]. Research and Development - PROS incurred research and development expenses of $89.7 million in fiscal 2024, slightly up from $89.4 million in 2023, focusing on product management and innovation[34]. - The company emphasizes further product innovation to reduce the need for professional services in deploying solutions[151]. Market and Competitive Landscape - The company operates in highly competitive markets for enterprise software applications, including pricing optimization and management, which are rapidly evolving and fragmented[85]. - Current and potential competitors may develop technologies that could render the company's solutions obsolete or less competitive, potentially leading to reduced margins and adverse operating results[86]. - The company derives most of its revenue from software solutions in pricing optimization and management, and its success depends on market demand and the willingness of businesses to adopt these solutions[87]. Customer and Sales Strategy - The company emphasizes a land-realize-expand approach to customer relationships, leveraging direct sales and partnerships to drive growth[26]. - The company’s customer success team focuses on ensuring value delivery from solutions, promoting satisfaction and retention[26]. - Future growth is heavily reliant on the effectiveness of the direct sales force, and any failure to adequately expand and train this team could impede revenue growth[93]. - The company has invested in establishing indirect sales channels but has primarily relied on its direct sales force for revenue generation[94]. Operational Risks and Challenges - Current economic uncertainties, including inflation and geopolitical tensions, could negatively impact the company's operating results and growth potential[53]. - The company has experienced increased operational and capital costs due to inflation, which may affect its financial condition and results of operations[55]. - The company faces risks related to customer renewal rates, which can fluctuate based on various factors, potentially harming future revenue[58]. - The company must manage complex integration processes during acquisitions, which can disrupt ongoing business and divert management attention[71]. - The company faces risks related to the implementation of its software solutions, which can lead to significant costs and delays in revenue recognition if not managed properly[64]. Cybersecurity and Compliance - The company has experienced typical cybersecurity events for a SaaS company of its size, but there is no guarantee of preventing future events[49]. - The company may incur significant costs and liabilities in the event of a cybersecurity breach, impacting its financial condition and reputation[51]. - The company’s cybersecurity program is integrated into its enterprise risk management approach, focusing on governance, collaboration, and technical safeguards to mitigate risks[123][126]. - Compliance with complex and evolving global laws and regulations poses significant challenges and potential liabilities for the company[95]. Human Resources and Culture - The company supports a hybrid work model, promoting employee well-being and flexibility in work locations[41]. - PROS has invested in diversity and inclusion initiatives, with women representing 37% of global employees and over 58% of U.S. employees from minority groups[39]. - The company regularly invests in employee career growth and offers leadership development training and mentorship opportunities[42]. - The company faces risks related to maintaining its corporate culture as it scales, which could impact innovation and employee retention[89]. - Key personnel changes, including the upcoming retirement of the CEO, could create uncertainty and negatively affect the company's operating results[91]. - The company must continuously recruit and retain qualified personnel, particularly in technical roles, to achieve its objectives amid intense competition for talent[92]. Financial Strategy and Investments - The company issued $150.0 million principal amount of 2.25% convertible senior notes due September 15, 2027, with an additional $116.8 million issued in October 2023, totaling $266.8 million outstanding as of December 31, 2024[111]. - The company expects expenses to continue to exceed revenues in the near term due to investments in cloud strategy, product development, and marketing, despite delivering significant free cash flow in 2024[109]. - The company has incurred GAAP operating losses since its cloud transition in 2015 but continues to invest in revenue growth and operational efficiency[150]. - The company does not anticipate paying cash dividends in the foreseeable future, retaining available cash for working capital and debt repayment[121]. Currency and Tax Considerations - An immediate 10% adverse change in foreign currency exchange rates would have resulted in a $1.0 million loss on foreign-denominated receivables[215]. - A hypothetical 10% adverse change in the value of the U.S. dollar against the Euro would have changed revenue for the year ended December 31, 2024, by approximately $5.2 million[215]. - The company continues to have a valuation allowance against net deferred tax assets as of December 31, 2024, due to insufficient positive evidence[211].

PROS Holdings, Inc. (NYSE:PRO) Q4 2024 Earnings Conference Call February 6, 2024 4:45 PM ET Company Participants Belinda Overdeput - Senior Director, Investor Relations Andres Reiner - President and CEO Stefan Schulz - Chief Financial Officer Conference Call Participants Jeff Van Reeve - Craig-Hallum Capital Group Robert Morelli - Needham & Company Parker Lane - Stifel Jason Celino - KeyBanc Capital Markets Robert Oliver - Baird Victor Cheng - Bank of America Nehal Chokshi - Northland Capital Markets Brian ...

For the quarter ended December 2024, Pros Holdings (PRO) reported revenue of $84.97 million, up 9.7% over the same period last year. EPS came in at $0.16, compared to $0.02 in the year-ago quarter.The reported revenue represents a surprise of +0.21% over the Zacks Consensus Estimate of $84.79 million. With the consensus EPS estimate being $0.13, the EPS surprise was +23.08%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Pros Holdings (PRO) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 23.08%. A quarter ago, it was expected that this pricing and revenue-management software maker would post earnings of $0.09 per share when it actually produced earnings of $0.14, delivering a surprise of 55.56%.Over t ...

PROS Global Headquarters, Houston, Texas PROS Holdings, Inc. Q4 2024 Investor Presentation Updated February 6, 2025 ir@pros.com © 2025 PROS, Inc. All rights reserved. Confidential and Proprietary. 1 Disclaimer / Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about our financial outlook; expectations; ability to achieve future growth and profitability goals; ability to achieve "R ...