NYSE$PRO

Pros Holdings Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Delivered strong results, exceeding guidance across all metrics, with significant improvement to adjusted EBITDA.

PROS Holdings, Inc. reported a strong start to 2024 with subscription revenue growth of 15% and a near 300% improvement to adjusted EBITDA year-over-year.

  • Subscription revenue increased by 15% year-over-year, reaching $64.3 million.
  • Subscription gross margin improved to 77%, with a non-GAAP subscription gross margin of 79%, up by more than 140 basis points year-over-year.
  • Total gross margin increased to 64%, and non-GAAP gross margin reached 67%, showing an improvement of 315 basis points year-over-year.
  • PROS launched the PROS Copilot for Sales Plugin in partnership with Microsoft.

Headline financials

Total Revenue

$80.7M

Previous: $73.2M+10.3%
EPS (adj)

$0.04

Previous: -$0.06+166.7%
Adjusted EBITDA

$4.59M

No prior period
Non-GAAP EPS

0.04

No prior period
Non-GAAP Net Income

$2.03M

No prior period
Non-GAAP Operating Income

$3.7M

No prior period
Non-GAAP Gross Profit

$53.9M

No prior period
Non-GAAP Gross Margin

66.8%

No prior period
Non-GAAP Subscription Gross Margin

79.1%

Previous: 78.0%+1.4%
Capital Expenditures

-$240K

Previous: $1.55M-115.5%
Net Income

-$11.4M

Previous: -$19M+40.0%
Operating Income

-$10.3M

Previous: -$18.8M+45.2%
Gross Profit

$51.9M

Previous: $43.6M+18.9%
R&D Expense

$24.4M

No prior period
Stock-Based Comp

$12.7M

Previous: $9.9M+28.2%

Revenue & EPS history

Pros · Revenue · Quarterly

$80.7M

Q1 2024+10.3%vs Q1 2023
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Pros · $77.3M total across 3 segments · Q3 2023

  • Subscription Revenue
    $60M
  • Services Revenue
    $12.6M+9.2%
  • Maintenance and Support Revenue
    $4.69M

Forward guidance

PROS anticipates total revenue between $80.5 million and $81.5 million and subscription revenue between $64.0 million and $64.5 million for Q2 2024. Full year 2024 guidance includes total revenue between $332.5 million and $334.5 million and subscription revenue between $263.5 million and $265.5 million.

Tailwinds

  • Total revenue is expected to grow by 7% in Q2 2024 compared to Q2 2023 at Mid-Point.
  • Subscription revenue is projected to increase by 12% in Q2 2024 compared to Q2 2023 at Mid-Point.
  • Subscription ARR is anticipated to be between $289.0 million and $292.0 million, representing a 12% growth.
  • Adjusted EBITDA is forecasted to be between $1.0 million and $2.0 million.
  • Free Cash Flow is expected to be between $22.0 million and $26.0 million for the full year 2024.

Headwinds

  • Non-GAAP Earnings Per Share is expected to be between $0.00 and $0.02 for Q2 2024.
  • Full year 2024 Adjusted EBITDA is projected to be between $17.0 million and $20.0 million, only a slight increase of $1.4 million at mid point.
  • There are risks related to cyberattacks and data breaches.
  • The macroeconomic environment and geopolitical uncertainty could impact results.
  • The company faces risks related to increasing business from customers and maintaining subscription renewal rates.

Historical earnings impact

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

Avg. return before/after earnings

Based on 7 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro