NYSE$PRO

Pros Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Delivered strong results driven by subscription revenue growth and improved profitability.

PROS Holdings, Inc. reported an outstanding second quarter, exceeding guidance ranges across all metrics. Subscription revenue grew by 14% year-over-year, and adjusted EBITDA showed a significant improvement.

  • Total revenue reached $75.8 million, an 11% increase year-over-year.
  • Subscription revenue was $57.3 million, reflecting a 14% growth year-over-year.
  • Subscription gross margin stood at 75%, with a non-GAAP subscription gross margin of 78%, up 150 basis points year-over-year.
  • The company welcomed several new customers to the PROS Platform, including Condor, JSX, Novolex, and Singapore Airlines Cargo.

Headline financials

Total Revenue

$75.8M

Previous: $68.4M+10.9%
EPS (adj)

-$0.01

Previous: -$0.14+92.9%
Capital Expenditures

$277K

Previous: $308K-10.1%
Free Cash Flow

-$6.2M

Previous: -$2.24M-176.9%
Net Income

-$13.3M

Previous: -$22.4M+40.6%
Operating Income

-$13.4M

Previous: -$20.5M+34.8%
Gross Profit

$47.2M

Previous: $40.7M+15.9%
Cash & Equivalents

$185M

Previous: $215M-14.2%
Total Assets

$434M

Previous: $462M-6.0%
Stock-Based Comp

$10.8M

Previous: $10.8M-0.1%

Revenue & EPS history

Pros · Revenue · Quarterly

$75.8M

Q2 2023+10.9%vs Q2 2022
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Pros · $75.8M total across 3 segments · Q2 2023

  • Subscription Revenue
    $57.3M+13.7%
  • Services Revenue
    $13.4M+24.9%
  • Maintenance and Support Revenue
    $5.09M

Forward guidance

PROS anticipates total revenue between $75.0 to $76.0 million and non-GAAP earnings per share between $0.03 and $0.04 for Q3 2023. For the full year 2023, the company expects total revenue between $300.0 to $302.0 million.

Tailwinds

  • Total revenue is projected to grow by 7% in Q3 2023 compared to Q3 2022.
  • Subscription revenue is expected to increase by 14% in Q3 2023 compared to Q3 2022.
  • Subscription ARR is anticipated to reach between $251.0 to $254.0 million.
  • Adjusted EBITDA is forecasted to be between $2.5 to $3.5 million in Q3 2023.
  • Free cash flow is projected to be between $2.5 to $6.5 million in Q3 2023.

Headwinds

  • The macroeconomic environment could pose risks.
  • Inflation may have adverse effects.
  • The COVID-19 pandemic's impact remains a concern.
  • Cyberattacks and data breaches are potential threats.
  • Returning to profitability is still a work in progress.

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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