NYSE$PRO

Pros Holdings Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported financial results for the fourth quarter and full year ended December 31, 2022.

PROS Holdings, Inc. reported strong financial results for Q4 2022, with subscription revenue up 13% year-over-year. The company drove revenue outperformance while delivering positive adjusted EBITDA in the second half of the year. They are projecting to generate positive adjusted EBITDA and free cash flow in 2023.

  • Subscription revenue of $53.1 million, up 13% year-over-year.
  • Gross profit of $43.5 million, up 11% year-over-year.
  • Operating loss improved by $6.8 million year-over-year.
  • Net loss improved by $6.3 million year-over-year.

Headline financials

Total Revenue

$70.9M

Previous: $65M+9.2%
EPS (adj)

$0.02

Previous: -$0.16+112.5%
Capital Expenditures

$16K

Previous: $364K-95.6%
Free Cash Flow

$1.1M

Previous: -$1.33M+182.5%
Net Income

-$17.3M

Previous: -$23.6M+26.7%
Operating Income

-$14.9M

Previous: -$21.6M+31.1%
Gross Profit

$43.5M

Previous: $39M+11.5%
Cash & Equivalents

$204M

Previous: $228M-10.5%
Total Assets

$453M

Previous: $494M-8.4%
Stock-Based Comp

$10.1M

Previous: $9.67M+4.5%

Revenue & EPS history

Pros · Revenue · Quarterly

$70.9M

Q4 2022+9.2%vs Q4 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Pros · $64.5M total across 2 segments · Q4 2022

  • Subscription Revenue
    $53.1M+13.0%
  • Services Revenue
    $11.4M+19.1%

Forward guidance

PROS anticipates total revenue between $70.4 to $71.4 million and subscription revenue between $54.0 to $54.5 million for Q1 2023. For the full year 2023, the company anticipates total revenue between $293.0 to $296.0 million and subscription revenue between $230.7 to $232.7 million.

Tailwinds

  • Total Revenue $70.4 to $71.4 million (7% growth)
  • Subscription Revenue $54.0 to $54.5 million (11% growth)
  • Subscription ARR $250.0 to $253.0 million (11% growth)
  • Adjusted EBITDA $3.0 to $6.0 million ($19.4 million improvement)
  • Free Cash Flow $2.0 to $6.0 million ($25.7 million improvement)

Headwinds

  • Non-GAAP Loss Per Share $(0.12) to $(0.09)
  • Adjusted EBITDA $(4.0) to $(3.0) million
  • Macroeconomic environment risks
  • Effects of inflation risks
  • Cyberattacks and data breaches risks

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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