A downtrend has been apparent in Pros Holdings (PRO) lately with too much selling pressure. The stock has declined 20.4% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround. Guide to Identifying Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for ...

Pros Holdings (PRO) has been beaten down lately with too much selling pressure. While the stock has lost 17.1% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. Guide to Identifying Oversold Stocks We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator th ...

Pros Holdings (PRO) has been on a downward spiral lately with significant selling pressure. After declining 19.3% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier. How to Determine if a Stock is Oversold We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a ...

Financial Data and Key Metrics Changes - In Q2, subscription revenue increased by 14% year-over-year to $65.6 million, while total revenue grew by 8% to $82 million, both exceeding guidance [8][98] - The company achieved a non-GAAP subscription gross margin of 80%, marking a 160 basis point improvement year-over-year [3][128] - Free cash flow reached $6.2 million in Q2, representing a nearly 200% year-over-year improvement [101] - Adjusted EBITDA improved by 554% year-over-year, with a significant increase of over $5 million compared to last year [93][130] Business Line Data and Key Metrics Changes - Services revenue was $13 million, down 3% year-over-year, attributed to a higher portion of subscription bookings related to expansions requiring less services [12] - Calculated billings in Q2 increased by 10% year-over-year, with expectations for Q3 growth to be at the lowest point of the year [99][128] Market Data and Key Metrics Changes - The company noted a shift in the split between new and existing customers, expecting a 40-60 split favoring existing customers in the back half of the year [36] - The travel segment is facing operational cost and supply chain challenges, impacting deal approval processes and sales cycles [88][147] Company Strategy and Development Direction - The company is focused on becoming a Rule of 40 Company, aiming for sustainable growth rates of 16% to 21% on revenue and 19% to 24% on free cash flow [9][116] - The PROS platform is being expanded globally, with significant partnerships, including with VFS, to drive pricing and sales excellence [5][10] - The company is investing in innovation, including a new generative AI data transformation solution, to enhance customer value and accelerate time to market [10][16] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the travel business, anticipating a lower growth rate in subscription revenue for Q3 due to prior accelerated recognitions [15][27] - The company remains optimistic about achieving its long-term goals despite current challenges in the airline industry [80][137] Other Important Information - The company exited Q2 with $149.1 million in cash and investments, net of the settlement of convertible notes [131] - The company is revising its full-year guidance, anticipating total revenue of $329 million to $331 million, representing 9% growth at the midpoint [132] Q&A Session Summary Question: What challenges are travel customers facing? - Management noted that airline customers are focused on getting their operations back in line and are seeking support to drive value with minimal investment [136][137] Question: How has the macro environment affected customer willingness to sign deals? - The selling environment remains difficult, with companies being cautious in their investments [147] Question: What is the expected split between new and existing customers? - The company expects a shift towards a 40-60 split favoring existing customers in the second half of the year [36] Question: How has the Microsoft partnership progressed? - The partnership has generated significant customer interest and is expected to translate into pipeline growth [118][123] Question: Were there any early renewals impacting expansion activity? - Most expansions were on time, with only a small number of early renewals, which is typical [125]

Core Viewpoint - Pros Holdings reported a revenue increase of 8.2% year-over-year for the quarter ended June 2024, with earnings per share (EPS) improving to $0.07 from a loss of $0.01 in the same quarter last year [1]. Revenue Performance - Total revenue for the quarter was $82.01 million, exceeding the Zacks Consensus Estimate of $81.18 million, resulting in a surprise of +1.02% [4]. - Subscription revenue was reported at $3.39 million, which was below the average estimate of $3.57 million, reflecting a year-over-year decline of -33.5% [3]. - Maintenance and support revenue reached $13.03 million, slightly below the average estimate of $13.27 million, indicating a year-over-year decrease of -2.7% [7]. - Total subscription maintenance and support revenue was $65.60 million, surpassing the average estimate of $64.35 million, with a year-over-year increase of +14.5% [8]. - Services revenue was reported at $68.99 million, exceeding the average estimate of $67.92 million, showing a year-over-year growth of +10.6% [6]. Earnings Performance - The company achieved an EPS of $0.07, significantly higher than the consensus EPS estimate of $0.02, resulting in an EPS surprise of +250.00% [4]. Stock Performance - Over the past month, shares of Pros Holdings have declined by -4.6%, contrasting with a +0.1% change in the Zacks S&P 500 composite [9]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [9].

Pros Holdings (PRO) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 250%. A quarter ago, it was expected that this pricing and revenue-management software maker would post earnings of $0.01 per share when it actually produced earnings of $0.04, delivering a surprise of 300%. Over the las ...

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, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ...

[Second Quarter 2024 Financial Highlights](index=1&type=section&id=Second%20Quarter%202024%20Financial%20Highlights) PROS Holdings exceeded Q2 2024 guidance with strong revenue and profitability growth, achieving 80% non-GAAP subscription gross margin - CEO Andres Reiner stated the company delivered a solid quarter, exceeding the high-end of guidance ranges for all metrics, highlighting achievement of the long-term goal of **80% non-GAAP subscription gross margin**[2](index=2&type=chunk) Q2 2024 Key Financial Metrics (YoY) | Metric | Q2 2024 (GAAP) ($ million) | Q2 2023 (GAAP) ($ million) | Change ($ million) | Q2 2024 (Non-GAAP) ($ million) | Q2 2023 (Non-GAAP) ($ million) | Change ($ million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $82.0 | $75.8 | +$6.2 | n/a | n/a | n/a | | **Subscription Revenue** | $65.6 | $57.3 | +$8.3 | n/a | n/a | n/a | | **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) EPS** | $(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 | | **Operating Cash Flow** | $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) | +$12.4 | [Recent Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) PROS expanded its customer base and platform adoption, earning industry recognition including Microsoft's Global ISV Partner of the Year Award - Welcomed new customers including Air Moana, Atlantic Aviation, Dynata, Lao Airlines, Tropic Air, VitalEdge, and Zeus Fire & Security[6](index=6&type=chunk) - Expanded platform use with existing customers such as Aeromexico, Allegiant Air, BASF, Carrier, Cathay Pacific, Hertz, and Ingredion[6](index=6&type=chunk) - Won Microsoft's Global ISV Partner of the Year Award for the second time, recognizing excellence in AI innovation and collaboration, including the launch of the PROS Plugin for Microsoft's Copilot for Sales[12](index=12&type=chunk) - Hosted the record-breaking 2024 Outperform with PROS Conference, its largest in-person user event, featuring 60 customer speakers[12](index=12&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) PROS projects continued growth for Q3 and full-year 2024, with total revenue expected to increase by 9% and subscription revenue by 13% Q3 and Full Year 2024 Guidance | Metric | Q3 2024 Guidance ($ million) | Full Year 2024 Guidance ($ million) | YoY Growth (Mid-Point) | | :--- | :--- | :--- | :--- | | **Total Revenue** | $81.5 - $82.5 | $329.0 - $331.0 | 9% | | **Subscription Revenue** | $65.8 - $66.3 | $263.5 - $265.5 | 13% | | **Subscription ARR** | n/a | $280.0 - $284.0 | 9% | | **Adjusted EBITDA** | $6.5 - $7.5 | $21.0 - $24.0 | +$16.5 | | **Free Cash Flow** | n/a | $20.0 - $24.0 | +$10.6 | | **Non-GAAP EPS** | $0.08 - $0.10 | n/a | n/a | - The outlook is based on an estimated **47.8 million diluted weighted average shares** for Q3 2024 and a **22% non-GAAP estimated tax rate** for Q3 and the full year 2024[7](index=7&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's financial position and performance through detailed Balance Sheets, Statements of Loss, and Cash Flows [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) PROS reported total assets of **$384.9 million** and a stockholders' deficit of **$83.0 million** as of June 30, 2024 Balance Sheet Summary (in thousands) | Account | June 30, 2024 ($ thousands) | December 31, 2023 ($ thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $203,049 | $234,674 | | Cash and cash equivalents | $139,086 | $168,747 | | **Total Assets** | **$384,900** | **$421,833** | | **Total Current Liabilities** | $166,871 | $197,331 | | Deferred revenue, current | $121,628 | $120,955 | | **Total Liabilities** | **$467,940** | **$499,706** | | **Total Stockholders' (Deficit) Equity** | **$(83,040)** | **$(77,873)** | [Condensed Consolidated Statements of Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Loss) Q2 2024 total revenue grew to **$82.0 million**, with GAAP net loss significantly narrowing to **$7.4 million** from **$13.3 million** YoY Statement of Loss Summary - Three Months Ended June 30 (in thousands) | Account | 2024 ($ thousands) | 2023 ($ thousands) | | :--- | :--- | :--- | | **Total Revenue** | **$82,013** | **$75,792** | | Subscription Revenue | $65,600 | $57,304 | | **Gross Profit** | **$53,194** | **$47,221** | | Loss from Operations | $(7,184) | $(13,355) | | **Net Loss** | **$(7,386)** | **$(13,289)** | | Net Loss Per Share | $(0.16) | $(0.29) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities turned positive to **$6.4 million** in Q2 2024, a **$13.0 million** improvement YoY Cash Flow Summary - Three Months Ended June 30 (in thousands) | Activity | 2024 ($ thousands) | 2023 ($ thousands) | | :--- | :--- | :--- | | **Net Cash Provided by (Used in) Operating Activities** | **$6,420** | **$(6,542)** | | Net Cash Used in Investing Activities | $(256) | $(277) | | Net Cash Used in Financing Activities | $(23,536) | $(958) | | **Net Change in Cash** | **$(17,337)** | **$(7,809)** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP financial results to non-GAAP measures, adjusting for items like share-based compensation and amortization of intangibles Reconciliation of GAAP Loss from Operations to Non-GAAP Income from Operations (Q2 2024, in thousands) | Description | Amount ($ thousands) | | :--- | :--- | | **GAAP Loss from Operations** | **$(7,184)** | | Share-based compensation | $10,248 | | Amortization of acquisition-related intangibles | $1,300 | | **Non-GAAP Income from Operations** | **$4,364** | Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Q2 2024, in thousands) | Description | Amount ($ thousands) | | :--- | :--- | | **GAAP Net Loss** | **$(7,386)** | | Total non-GAAP adjustments affecting operations | $11,548 | | Amortization of debt premium and issuance costs | $(372) | | Tax impact related to non-GAAP adjustments | $(539) | | **Non-GAAP Net Income** | **$3,251** | Reconciliation to Adjusted EBITDA (Q2 2024, in thousands) | Description | Amount ($ thousands) | | :--- | :--- | | **GAAP Loss from Operations** | **$(7,184)** | | Amortization of acquisition-related intangibles | $1,300 | | Share-based compensation | $10,248 | | Depreciation and other amortization | $891 | | Capitalized internal-use software development costs | $(41) | | **Adjusted EBITDA** | **$5,214** | [Explanation of Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) PROS utilizes non-GAAP measures like Adjusted EBITDA, Free Cash Flow, and Subscription ARR to provide insights into operational performance - Non-GAAP measures exclude items like share-based compensation, amortization of acquisition-related intangibles, and severance to facilitate comparison of financial results across periods and with peer companies[16](index=16&type=chunk)[17](index=17&type=chunk) - **Adjusted EBITDA** is defined as GAAP net income (loss) adjusted for interest, taxes, depreciation, amortization, share-based compensation, severance, and capitalized software development costs[20](index=20&type=chunk) - **Free Cash Flow** is defined as net cash from operating activities, excluding severance payments, less capital expenditures and capitalized internal-use software development costs[21](index=21&type=chunk) - **Subscription Annual Recurring Revenue (ARR)** represents the contracted subscription revenue as of a specific date, including future start date contracts and annualized overage fees, used to assess the trajectory of the cloud business[18](index=18&type=chunk)

Pros Holdings (PRO) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. This pricing and revenue-management software maker is expected to post quarterly earnings of $0.02 per share in its upcoming report, which repres ...

Pros Holdings (PRO) has been on a downward spiral lately with significant selling pressure. After declining 11.4% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier. How to Determine if a Stock is Oversold We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a ...