PROS(PRO) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 2025 was $86.3 million, representing a 7$80.7 million in Q1 2024[4] - Subscription revenue reached $70.8 million in Q1 2025, up 10$64.3 million in Q1 2024[6] - Gross profit for Q1 2025 was $58.4 million, a 13$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 $1.1 million in Q1 2025, a 123$(4.9) million in Q1 2024[4] - Non-GAAP net income for Q1 2025 was $6,402,000, a significant increase of 216$2,029,000 in Q1 2024[33] - The company reported a net loss of $3,689,000 in Q1 2025, which is a 68$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$49,736,000 in Q1 2024[39] - Non-GAAP subscription gross profit for Q1 2025 was $57,157,000, reflecting a 12$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]