NYSE$PRO
Pros Holdings Inc · Q3 2024 earnings
Q3 2024 earnings · · Investor relations
Briefing
Reported a strong third quarter, exceeding guidance across all metrics and demonstrating platform value through new customer wins and existing customer expansion.
PROS Holdings, Inc. announced strong financial results for the third quarter ended September 30, 2024, exceeding the high-end of guidance ranges across all metrics. Subscription revenue increased by 12% year-over-year, and the company saw improvements in profitability, including a 185% improvement in operating cash flow year-to-date.
- Subscription revenue reached $67.1 million, a 12% increase year-over-year.
- Subscription gross margin was 78%, with a non-GAAP subscription gross margin of 80%, improving more than 190 basis points year-over-year.
- Operating income improved by $7.9 million, reaching $0.031 million.
- Net income improved by $14.1 million, reaching $0.2 million.
Headline financials
Revenue & EPS history
Pros · Revenue · Quarterly
$82.7M
Revenue by segment
Pros · $77.3M total across 3 segments · Q3 2023
- Subscription Revenue$60M—77.7%
- Services Revenue$12.6M+9.2%16.3%
- Maintenance and Support Revenue$4.69M—6.1%
Forward guidance
PROS anticipates total revenue between $84.1 million and $85.1 million and subscription revenue between $68.5 million and $69.0 million for Q4 2024. They also anticipate non-GAAP earnings per share of $0.12 to $0.14 and adjusted EBITDA of $8.4 million to $9.4 million. For the full year 2024, they anticipate total revenue between $329.5 million and $330.5 million and subscription revenue between $265.5 million and $266.0 million.
Tailwinds
- Total revenue is expected to grow by 9% compared to Q4 2023 at the mid-point.
- Subscription revenue is expected to grow by 13% compared to Q4 2023 at the mid-point.
- Subscription ARR is projected to be between $280.0 million and $284.0 million, a 9% increase.
- Non-GAAP earnings per share are expected to be between $0.12 and $0.14.
- Adjusted EBITDA is projected to be between $8.4 million and $9.4 million.
Headwinds
- No specific negative guidance was provided in the summary, but the general risks and uncertainties remain.
- Macroeconomic environment and geopolitical uncertainty and events
- Increasing business from customers, maintaining subscription renewal rates and capturing customer IT spend
- Potential downturns in sales and lengthy sales cycles
- Market acceptance of our software innovations
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 Q3 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
| Quarter | Report date | Reaction (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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