NYSE$PRO

Pros Holdings Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported strong financial results with subscription revenue growth and improved margins.

PROS Holdings, Inc. reported Q4 2019 financial results with a 26% increase in total revenue and a 42% increase in subscription revenue. The company's non-GAAP recurring gross margins improved to 76%. PROS is on track to achieve its long-term growth objective.

  • Total revenue increased by 26% year-over-year.
  • Subscription revenue increased by 42% year-over-year.
  • Subscription and Maintenance Revenue increased 22% year-over-year.
  • PROS reduced outstanding debt to $143.75 million and lowered cash borrowing costs by 50%.

Headline financials

Total Revenue

$66.2M

Previous: $52.6M+25.8%
EPS (adj)

-$0.11

Previous: -$0.06-83.3%
Subscription Revenue Growth

42.0%

Previous: 28300000.0%-100.0%
Adjusted EBITDA

-$4.63M

No prior period
Non-GAAP EPS

-0.11

Previous: -0.06-83.3%
Total Revenue Growth

26.0%

Previous: 52600000.0%-100.0%
Capital Expenditures

$1.91M

Previous: $69K+2669.6%
Free Cash Flow

$11M

Previous: $15.1M-27.5%
Net Income

-$17.3M

Previous: -$12.8M-35.6%
Operating Income

-$15.1M

Previous: -$9.61M-56.8%
Gross Profit

$37.8M

Previous: $33.2M+14.1%
Cash & Equivalents

$306M

Previous: $295M+3.6%
Total Assets

$513M

Previous: $437M+17.5%
Stock-Based Comp

$6.45M

Previous: $5.1M+26.4%

Revenue & EPS history

Pros · Revenue · Quarterly

$66.2M

Q4 2019+25.8%vs Q4 2018
Beat estimate in 2 of 16 quarters(13%)
ActualEstimate

Revenue by segment

Pros · $65.7M total across 3 segments · Q4 2019

  • Subscription Revenue
    $40.2M
  • Maintenance and Support Revenue
    $13.4M
  • Services Revenue
    $12.1M

Forward guidance

PROS anticipates total revenue between $65.5 to $66.0 million and subscription revenue between $40.5 to $41.0 million for Q1 2020. They also anticipate a non-GAAP loss per share of $(0.23) to $(0.22) and an Adjusted EBITDA of $(12.0) to $(11.5) million.

Tailwinds

  • Total Revenue is expected to be between $65.5 to $66.0 million for Q1 2020.
  • Subscription Revenue is expected to be between $40.5 to $41.0 million for Q1 2020.
  • ARR is expected to be between $257.0 to $259.0 million for FY 2020.
  • Company expects continued growth in revenue.
  • Company expects continued growth in subscription revenue.

Headwinds

  • Non-GAAP Loss Per Share is expected to be $(0.23) to $(0.22) for Q1 2020.
  • Adjusted EBITDA is expected to be $(12.0) to $(11.5) million for Q1 2020.
  • Free Cash Flow is expected to be $(5.0) to $(3.0) million for Q1 2020.
  • Company anticipates a loss based on Non-GAAP.
  • Company anticipates a loss based on Adjusted EBITDA.

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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