NYSE$PRO

Pros Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

PROS exceeded its Q3 guidance, delivering strong subscription revenue growth and improved free cash flow.

PROS Holdings, Inc. reported a strong third quarter, exceeding guidance ranges across all metrics. Subscription revenue increased by 16% year-over-year, and there was a significant improvement in free cash flow. The company also raised its revenue and profitability outlook for the full year 2023.

  • Subscription revenue increased by 16% year-over-year, reaching $60.0 million.
  • Total revenue increased by 10% year-over-year, reaching $77.3 million.
  • Subscription gross margin improved to 76%, with a non-GAAP subscription gross margin of 78%.
  • Free cash flow improved by more than $17 million year-over-year.

Headline financials

Total Revenue

$77.3M

Previous: $70.3M+9.8%
EPS (adj)

$0.09

Previous: -$0.06+250.0%
Capital Expenditures

-$345K

Previous: $76K-553.9%
Free Cash Flow

$8.5M

Previous: -$9.1M+193.4%
Net Income

-$13.9M

Previous: -$13.9M+0.0%
Operating Income

-$7.8M

Previous: -$16.2M+51.9%
Gross Profit

$48.8M

Previous: $42.7M+14.3%
Cash & Equivalents

$159M

Previous: $207M-23.1%
Total Assets

$432M

Previous: $461M-6.3%
R&D Expense

$22.2M

No prior period
Stock-Based Comp

$10.9M

Previous: $10.6M+2.9%

Revenue & EPS history

Pros · Revenue · Quarterly

$77.3M

Q3 2023+9.8%vs Q3 2022
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 $76.0 to $77.0 million and non-GAAP earnings per share between $0.03 to $0.05 for Q4 2023. For the full year 2023, the company anticipates total revenue between $302.2 to $303.2 million and adjusted EBITDA between $6.5 to $7.5 million.

Tailwinds

  • Total revenue is expected to grow by 8% compared to Q4 2022 at the midpoint.
  • Subscription revenue is expected to grow by 13% compared to Q4 2022 at the midpoint.
  • Non-GAAP earnings per share are projected to be $0.03 to $0.05.
  • Adjusted EBITDA is expected to be $3.0 to $4.0 million.
  • Free cash flow is expected to be $3.5 to $6.5 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%

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