NYSE$PRO

Pros Holdings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported strong first quarter results driven by subscription revenue growth and improved profitability.

PROS Holdings, Inc. reported a strong start to 2023 with a 15% year-over-year increase in subscription revenue and a 75% improvement in adjusted EBITDA. The company is raising its full year 2023 guidance across all metrics due to this outperformance.

  • Subscription revenue increased by 15% year-over-year, reaching $56.0 million.
  • Subscription gross margin was 75%, with a non-GAAP subscription gross margin of 78%, up over 150 basis points year-over-year.
  • The company is improving its growth and profitability outlook for the full year of 2023.
  • New customers such as Air Serbia, Atea, Europcar, Meyle, Nature’s Touch, Nok Air, and QuidelOrtho adopted the PROS Platform.

Headline financials

Total Revenue

$73.2M

Previous: $66.5M+10.1%
EPS (adj)

-$0.06

Previous: -$0.21+71.4%
Subscription Revenue Growth

15.0%

No prior period
Non-GAAP Subscription Gross Margin

78.0%

No prior period
Capital Expenditures

$1.55M

Previous: $461K+235.4%
Free Cash Flow

-$4.5M

Previous: -$11.5M+60.9%
Net Income

-$19M

Previous: -$28.6M+33.7%
Operating Income

-$18.8M

Previous: -$26.5M+29.1%
Gross Profit

$43.6M

Previous: $39.1M+11.5%
Cash & Equivalents

$192M

Previous: $217M-11.5%
Total Assets

$438M

Previous: $487M-10.1%
Stock-Based Comp

$9.9M

Previous: $11.2M-11.8%

Revenue & EPS history

Pros · Revenue · Quarterly

$73.2M

Q1 2023+10.1%vs Q1 2022
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Pros · $67.5M total across 2 segments · Q1 2023

  • Subscription Revenue
    $56M+14.8%
  • Services Revenue
    $11.5M+16.5%

Forward guidance

PROS provided guidance for Q2 2023 and full year 2023.

Tailwinds

  • Total Revenue Q2 2023: $72.2 to $73.2 million (6% growth)
  • Total Revenue Full Year 2023: $295.0 to $297.0 million (7% growth)
  • Subscription Revenue Q2 2023: $56.0 to $56.5 million (12% growth)
  • Subscription Revenue Full Year 2023: $231.7 to $233.7 million (14% growth)
  • Subscription ARR Full Year 2023: $251.0 to $254.0 million (11% growth)

Headwinds

  • Non-GAAP Loss Per Share Q2 2023: $(0.08) to $(0.05)
  • Adjusted EBITDA Q2 2023: $(3.2) to $(2.2) million
  • Free Cash Flow Q2 2023: $2.5 to $6.5 million
  • Adjusted EBITDA Full Year 2023: $3.5 to $6.5 million
  • Free Cash Flow Full Year 2023: $26.2 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 7 quarterly earnings reports

Historical avg

-0.4%

Avg return

Earnings day

-0.6%

Avg return

5 days after

-1.9%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+18.3%

Q4 2012

Best reaction

-17.8%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025-0.1%+0.0%+0.9%
Q2 2025-5.5%-5.9%-1.3%
Q1 2025-2.6%-1.4%+4.4%
Q4 2024+7.9%+7.3%-10.1%
Q3 2024+9.3%+10.0%+22.0%
Q2 2024-4.8%-10.6%-20.8%
Q1 2024-7.1%-6.7%-13.4%
Q4 2023+5.8%+2.6%+3.4%
Q3 2023+4.9%
Q2 2023+7.7%
Q1 2023-0.8%
Q4 2022-3.9%
Q3 2022+6.9%
Q2 2022+2.1%
Q1 2022+6.7%
Q4 2021-4.5%
Q3 2021-3.8%
Q2 2021-1.1%
Q1 2021-3.1%
Q4 2020+0.3%
Q3 2020-8.7%
Q2 2020-17.8%
Q1 2020-6.0%
Q4 2019-11.0%
Q3 2019+2.4%
Q2 2019+8.3%
Q1 2019+11.4%
Q4 2018+4.2%
Q3 2018+8.9%
Q2 2018+3.4%
Q1 2018-7.4%
Q4 2017+15.1%
Q3 2017-6.3%
Q2 2017-7.0%
Q1 2017+3.1%
Q4 2016+3.9%
Q3 2016+8.1%
Q2 2016-5.9%
Q1 2016+9.8%
Q4 2015+1.2%
Q3 2015-11.4%
Q2 2015+0.4%
Q1 2015-15.3%
Q4 2014-4.7%
Q3 2014+1.0%
Q2 2014-3.8%
Q1 2014-13.1%
Q4 2013-3.0%
Q3 2013+5.9%
Q2 2013-5.6%
Q1 2013+14.5%
Q4 2012+18.3%
Q3 2012-3.1%
Q2 2012+13.6%
Q1 2011-8.5%
Q1 2012-3.5%
Q4 2009-2.4%
Q4 2011-2.4%
Q3 2011+3.3%
Q3 2010+3.3%
Q4 2010-9.2%
Q2 2011-9.2%
Q2 2010-9.2%
Q1 2010-8.5%

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