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     101  0 Kommentare PROS Holdings, Inc. Reports Third Quarter 2022 Financial Results

    PROS Holdings, Inc. (NYSE: PRO), the CFO’s best-kept secret for profitable growth, today announced financial results for the third quarter ended September 30, 2022.

    “I’m proud of our team for delivering 17% subscription revenue growth along with strong improvements to profitability in the quarter,” stated CEO Andres Reiner. “Year-to-date we more than doubled our deal count as compared to last year; the momentum we’re seeing in our business reflects the unique value proposition of the PROS Platform which generates significant revenue uplift and margin improvements for our customers, fueling profitable growth.”

    Third Quarter 2022 Financial Highlights

    Key financial results for the third quarter 2022 are shown below. Throughout this press release all dollar figures are in millions, except net loss per share. Unless otherwise noted, all results are on a reported basis and are compared with the prior-year period.

     

    GAAP

     

    Non-GAAP

     

    Q3 2022

     

    Q3 2021

     

    Change

     

    Q3 2022

     

    Q3 2021

     

    Change

    Revenue:

     

     

     

     

     

     

     

     

     

     

     

    Total Revenue

    $70.3

     

    $62.7

     

    12%

     

    n/a

     

    n/a

     

    n/a

    Subscription Revenue

    $51.8

     

    $44.1

     

    17%

     

    n/a

     

    n/a

     

    n/a

    Subscription and Maintenance Revenue

    $58.8

     

    $52.6

     

    12%

     

    n/a

     

    n/a

     

    n/a

    Profitability:

     

     

     

     

     

     

     

     

     

     

     

    Gross Profit

    $42.7

     

    $36.6

     

    17%

     

    $45.3

     

    $38.0

     

    19%

    Operating Loss

    $(16.2)

     

    $(15.8)

     

    $(0.4)

     

    $(3.3)

     

    $(6.3)

     

    $3.0

    Net Loss

    $(13.9)

     

    $(17.5)

     

    $3.7

     

    $(2.9)

     

    $(5.9)

     

    $3.1

    Net Loss Per Share

    $(0.31)

     

    $(0.39)

     

    $0.08

     

    $(0.06)

     

    $(0.13)

     

    $0.07

    Adjusted EBITDA

    n/a

     

    n/a

     

    n/a

     

    $(2.2)

     

    $(4.4)

     

    $2.3

    Cash:

     

     

     

     

     

     

     

     

     

     

     

    Net Cash Used in Operating Activities

    $(9.0)

     

    $(8.2)

     

    $(0.8)

     

    n/a

     

    n/a

     

    n/a

    Free Cash Flow

    n/a

     

    n/a

     

    n/a

     

    $(9.1)

     

    $(8.5)

     

    $(0.5)

    The attached table provides a summary of PROS results for the period, including a reconciliation of GAAP to non-GAAP metrics.

    Recent Business Highlights

    • Welcomed new customers who are adopting PROS solutions such as ABB, GE Healthcare, Phillips Pet Food, Rapido Group, Summit Electric Supply, and Vistara, among others.
    • Published our customer value assessment results on pros.com, highlighting that our solutions generate for our customers, on average, 8% revenue uplift, 200 basis points of margin improvement, and 67% improvement in efficiency gain.
    • Extended our digital offer marketing solutions with the launch of the EveryMundo Marketplace, an application store that connects third party developers building eCommerce applications on the EveryMundo platform to enterprise customers.
    • Launched buildwith.pros.com, our new developer portal, to give customers and partners access to our library of PROS APIs empowering them to integrate with and embed PROS data, insights, and services within enterprise applications, decreasing development time and accelerating time-to-market. Learn more by watching this YouTube video.

    Financial Outlook

    PROS currently anticipates the following based on an estimated 45.5 million basic weighted average shares outstanding for the fourth quarter of 2022 and a 22% non-GAAP estimated tax rate for the fourth quarter and full year 2022. For the full year 2022, we are raising our guidance for total revenue, subscription revenue, and adjusted EBITDA.

     

    Q4 2022 Guidance

     

    v. Q4 2021 at Mid-
    Point

     

    Full Year 2022
    Guidance

     

    v. Prior Year at Mid-
    Point

    Total Revenue

    $68.5 to $69.5

     

    6%

     

    $273.75 to $274.75

     

    9%

    Subscription Revenue

    $52.1 to $52.6

     

    11%

     

    $203.0 to $203.5

     

    14%

    ARR

    n/a

     

    n/a

     

    $246.0 to $250.0

     

    9%

    Subscription ARR

    n/a

     

    n/a

     

    $224.0 to $228.0

     

    16%

    Non-GAAP Loss Per Share

    $(0.14) to $(0.11)

     

    $0.04

     

    n/a

     

    n/a

    Adjusted EBITDA

    $(5.2) to $(4.2)

     

    $1.7

     

    $(22.5) to $(21.5)

     

    $2.8

    Free Cash Flow

    n/a

     

    n/a

     

    $(25.0) to $(21.0)

     

    $(2.8)

    Conference Call

    In conjunction with this announcement, PROS Holdings, Inc. will host a conference call on Tuesday, November 1, 2022, at 4:45 p.m. EDT to discuss the Company’s financial results and business outlook. To access this call, dial 1-877-407-9039 (toll-free) or 1-201-689-8470. The live and archived webcasts of this call can be accessed under the “Investor Relations” section of the Company’s website at www.pros.com.

    A telephone replay will be available until Tuesday, November 15, 2022, 11:59 PM EDT at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13733111.

    About PROS

    PROS Holdings, Inc. (NYSE: PRO) is your company’s best-kept secret for profitable growth. Viewed as a market-leader by both Gartner and IDC for its CPQ and price optimization capabilities, PROS advanced AI delivers results to the world’s top brands including Cargill, Etihad, Honeywell, HP, Lenovo, Lufthansa, Siemens and more. With more than 30 million AI models, PROS award winning AI is the driving force in processing more than 2 trillion transactions per year. PROS customers report up to 96% efficiency gain, up to 5% margin improvement and up to 20% revenue lift, according to a recent ROI study. To learn more, visit www.pros.com.

    Forward-looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about macroeconomic conditions, the impact of the coronavirus (COVID-19) pandemic; our financial outlook; expectations; ability to achieve future growth and profitability; management's confidence and optimism; positioning; customer successes; demand for our software solutions; pipeline; business expansion; revenue; subscription revenue; ARR; non-GAAP loss per share; adjusted EBITDA; free cash flow; shares outstanding and effective tax rate. The forward-looking statements contained in this press release are based upon our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates or expectations will be achieved. Factors that could cause actual results to differ materially from those described herein include, among others, risks related to: (a) the impact of the COVID-19 pandemic, such as the scope and duration of the outbreak, including variants, and, among other effects, the timeframe for recovery of the travel industry, (b) cyberattacks, data breaches and breaches of security measures within our products, systems and infrastructure or products, systems and infrastructure of third parties upon whom we rely, (c) increasing business from customers and maintaining subscription renewal rates, (d) managing our growth effectively, (e) disruptions from our third party data center, software, data, and other unrelated service providers, (f) implementing our solutions, (g) cloud operations, (h) intellectual property and third-party software, (i) acquiring and integrating businesses and/or technologies, (j) catastrophic events, (k) operating globally, including economic and commercial disruptions, (l) potential downturns in sales and lengthy sales cycles, (m) software innovation, (n) competition, (o) market acceptance of our software innovations, (p) maintaining our corporate culture, (q) personnel risks including loss of any key employees and competition for talent, (r) expanding and training our direct and indirect sales force, (s) evolving data privacy, cyber security and data localization laws, (t) our debt repayment obligations, (u) the timing of revenue recognition and cash flow from operations, (v) migrating customers to our latest cloud solutions, and (w) returning to profitability. Additional information relating to the risks and uncertainties affecting our business is contained in our filings with the SEC. These forward-looking statements represent our expectations as of the date hereof. Subsequent events may cause these expectations to change, and PROS disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

    Non-GAAP Financial Measures

    PROS has provided in this release certain non-GAAP financial measures, including non-GAAP gross profit and margin, non-GAAP loss from operations or non-GAAP operating loss, annual recurring revenue, adjusted EBITDA, free cash flow, non-GAAP tax rate, non-GAAP net loss, and basic earnings (loss) per share or non-GAAP net loss per share. PROS uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating PROS’ ongoing operational performance and cloud transition. Non-GAAP gross margin can be compared to gross margin which can be calculated from the condensed consolidated statements of loss by dividing gross profit by total revenue. Non-GAAP gross margin is similarly calculated but first adds back to gross profit the portion of certain of the non-GAAP adjustments described below attributable to cost of revenue. Non-GAAP subscription margin can be compared to subscription margin which can be calculated from the condensed consolidated statements of loss by dividing subscription gross profit (subscription revenue minus subscription cost) by subscription revenue. Non-GAAP subscription margin is similarly calculated but first subtracts out from subscription cost the portion of certain of the non-GAAP adjustments described below attributable to cost of subscription. These items and amounts are presented in the Supplemental Schedule of Non-GAAP Financial Measures.

    Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure as detailed above. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release, and can be found, along with other financial information, in the investor relations portion of our website. PROS' use of non-GAAP financial measures may not be consistent with the presentations by similar companies in PROS' industry. PROS has also provided in this release certain forward-looking non-GAAP financial measures, including non-GAAP loss from operations, annual recurring revenue, non-GAAP loss per share, adjusted EBITDA, free cash flow, non-GAAP tax rates, and calculated billings (collectively the "non-GAAP financial measures") as follows:

    Non-GAAP loss from operations: Non-GAAP loss from operations excludes the impact of share-based compensation, amortization of acquisition-related intangibles and severance. Non-GAAP loss from operations excludes the following items from non-GAAP estimates:

    • Share-Based Compensation: Although share-based compensation is an important aspect of compensation for our employees and executives, our share-based compensation expense can vary because of changes in our stock price and market conditions at the time of grant, varying valuation methodologies, and the variety of award types. Since share-based compensation expense can vary for reasons that are generally unrelated to our performance during any particular period, we believe this could make it difficult for investors to compare our current financial results to previous and future periods. Therefore, we believe it is useful to exclude share-based compensation in order to better understand our business performance and allow investors to compare our operating results with peer companies.
    • Amortization of Acquisition-Related Intangibles: We view amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company's research and development efforts, trade names, customer lists and customer relationships, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.
    • Severance: Severance costs relate to the separation of our Chief Operations Officer in Q1 2022 and costs related to other internal role consolidations. These amounts are unrelated to our core performance during any particular period, and therefore, we believe it is useful to exclude these amounts in order to better understand our business performance and allow investors to compare our results with peer companies.

    Non-GAAP loss per share: Non-GAAP net loss excludes the items listed above as excluded from non-GAAP loss from operations and also excludes amortization of debt issuance costs, gain on equity investment and the taxes related to these items and the items excluded from non-GAAP loss from operations. Estimates of non-GAAP loss per share are calculated by dividing estimates for non-GAAP loss by our estimate of weighted average shares outstanding for the future period. In addition to the items listed above as excluded from non-GAAP loss from operations, non-GAAP net loss excludes the following items from non-GAAP estimates:

    • Amortization of Debt Issuance Costs: Amortization of debt issuance costs are related to our convertible notes. These amounts are unrelated to our core performance during any particular period, and therefore, we believe it is useful to exclude these amounts in order to better understand our business performance and allow investors to compare our results with peer companies.
    • Gain on Equity Investment: Gain on equity investment relate to an observable price change for an equity investment without a readily determinable fair value identified during the quarter ended September 30, 2022. These amounts are unrelated to our core performance during any particular period, and therefore, we believe it is useful to exclude these amounts in order to better understand our business performance and allow investors to compare our results with peer companies.
    • Taxes: We exclude the tax consequences associated with non-GAAP items to provide investors with a useful comparison of our operating results to prior periods and to our peer companies because such amounts can vary significantly. In the fourth quarter of 2014, we concluded that it is more likely than not that we will be unable to fully realize our deferred tax assets and accordingly, established a valuation allowance against those assets. The ongoing impact of the valuation allowance on our non-GAAP effective tax rate has been eliminated to allow investors to better understand our business performance and compare our operating results with peer companies.

    Annual Recurring Revenue: Annual Recurring Revenue ("ARR") is used to assess the trajectory of our cloud business. ARR means, as of a specified date, the contracted recurring revenue, including contracts with a future start date, together with annualized overage fees incurred above contracted minimum transactions, and excluding perpetual and term license agreements recognized as license revenue in accordance with GAAP. ARR should be viewed independently of revenue and any other GAAP measure. Subscription ARR is calculated in the same manner, but excludes maintenance and support ARR.

    Non-GAAP Tax Rate: The estimated non-GAAP effective tax rate adjusts the tax effect to quantify the impact of the excluded non-GAAP items.

    Adjusted EBITDA: Adjusted EBITDA is defined as GAAP net loss before interest expense, provision for income taxes, depreciation and amortization, as adjusted to eliminate the effect of stock-based compensation cost, severance, amortization of acquisition-related intangibles, depreciation and amortization and capitalized internal-use software development costs. Adjusted EBITDA should not be considered as an alternative to net loss as an indicator of our operating performance.

    Free Cash Flow: Free cash flow is a non-GAAP financial measure which is defined as net cash provided by (used in) operating activities, less capital expenditures (excluding expenditures for PROS new headquarters), purchases of other (non-acquisition-related) intangible assets and capitalized internal-use software development costs.

    Calculated Billings: Calculated billings is defined as total subscription, maintenance and support revenue plus the change in recurring deferred revenue in a given period.

    These non-GAAP estimates are not measurements of financial performance prepared in accordance with GAAP, and we are unable to reconcile these forward-looking non-GAAP financial measures to their directly comparable GAAP financial measures because the information described above which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.

    PROS Holdings, Inc.

    Condensed Consolidated Balance Sheets

    (In thousands, except share and per share amounts)

    (Unaudited)

     

     

     

    September 30, 2022

     

    December 31, 2021

    Assets:

     

     

     

     

    Current assets:

     

     

     

     

    Cash and cash equivalents

     

    $

    206,824

     

     

    $

    227,553

     

    Trade and other receivables, net of allowance of $529 and $1,206, respectively

     

     

    45,918

     

     

     

    40,581

     

    Deferred costs, current

     

     

    5,946

     

     

     

    5,772

     

    Prepaid and other current assets

     

     

    11,706

     

     

     

    9,623

     

    Total current assets

     

     

    270,394

     

     

     

    283,529

     

    Property and equipment, net

     

     

    26,128

     

     

     

    30,958

     

    Operating lease right-of-use assets

     

     

    18,096

     

     

     

    25,732

     

    Deferred costs, noncurrent

     

     

    8,606

     

     

     

    9,510

     

    Intangibles, net

     

     

    19,825

     

     

     

    27,618

     

    Goodwill

     

     

    106,751

     

     

     

    108,133

     

    Other assets, noncurrent

     

     

    11,092

     

     

     

    9,003

     

    Total assets

     

    $

    460,892

     

     

    $

    494,483

     

    Liabilities and Stockholders’ (Deficit) Equity:

     

     

     

     

    Current liabilities:

     

     

     

     

    Accounts payable and other liabilities

     

    $

    6,926

     

     

    $

    4,034

     

    Accrued liabilities

     

     

    13,389

     

     

     

    12,631

     

    Accrued payroll and other employee benefits

     

     

    24,630

     

     

     

    31,994

     

    Operating lease liabilities, current

     

     

    7,135

     

     

     

    8,457

     

    Deferred revenue, current

     

     

    109,262

     

     

     

    97,713

     

    Total current liabilities

     

     

    161,342

     

     

     

    154,829

     

    Deferred revenue, noncurrent

     

     

    6,929

     

     

     

    8,553

     

    Convertible debt, net, noncurrent

     

     

    289,406

     

     

     

    288,287

     

    Operating lease liabilities, noncurrent

     

     

    29,898

     

     

     

    38,034

     

    Other liabilities, noncurrent

     

     

    999

     

     

     

    1,196

     

    Total liabilities

     

     

    488,574

     

     

     

    490,899

     

    Stockholders' (deficit) equity:

     

     

     

     

    Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued

     

     

     

     

     

     

    Common stock, $0.001 par value, 75,000,000 shares authorized; 50,002,828

    and 49,201,265 shares issued, respectively; 45,322,105 and 44,520,542 shares outstanding, respectively

     

     

    50

     

     

     

    49

     

    Additional paid-in capital

     

     

    581,819

     

     

     

    546,693

     

    Treasury stock, 4,680,723 common shares, at cost

     

     

    (29,847

    )

     

     

    (29,847

    )

    Accumulated deficit

     

     

    (573,551

    )

     

     

    (508,652

    )

    Accumulated other comprehensive loss

     

     

    (6,153

    )

     

     

    (4,659

    )

    Total stockholders’ (deficit) equity

     

     

    (27,682

    )

     

     

    3,584

     

    Total liabilities and stockholders’ (deficit) equity

     

    $

    460,892

     

     

    $

    494,483

     

    PROS Holdings, Inc.

    Condensed Consolidated Statements of Loss

    (In thousands, except per share data)

    (Unaudited)

     

     

     

    Three Months Ended September 30,

     

    Nine Months Ended September 30,

     

     

    2022

     

    2021

     

    2022

     

    2021

    Revenue:

     

     

     

     

     

     

     

     

    Subscription

     

    $

    51,763

     

     

    $

    44,119

     

     

    $

    150,914

     

     

    $

    130,991

     

    Maintenance and support

     

     

    7,071

     

     

     

    8,477

     

     

     

    22,175

     

     

     

    26,721

     

    Total subscription, maintenance and support

     

     

    58,834

     

     

     

    52,596

     

     

     

    173,089

     

     

     

    157,712

     

    Services

     

     

    11,514

     

     

     

    10,075

     

     

     

    32,113

     

     

     

    28,738

     

    Total revenue

     

     

    70,348

     

     

     

    62,671

     

     

     

    205,202

     

     

     

    186,450

     

    Cost of revenue:

     

     

     

     

     

     

     

     

    Subscription

     

     

    13,829

     

     

     

    13,122

     

     

     

    41,354

     

     

     

    40,512

     

    Maintenance and support

     

     

    1,952

     

     

     

    2,044

     

     

     

    6,107

     

     

     

    6,459

     

    Total cost of subscription, maintenance and support

     

     

    15,781

     

     

     

    15,166

     

     

     

    47,461

     

     

     

    46,971

     

    Services

     

     

    11,829

     

     

     

    10,886

     

     

     

    35,151

     

     

     

    31,977

     

    Total cost of revenue

     

     

    27,610

     

     

     

    26,052

     

     

     

    82,612

     

     

     

    78,948

     

    Gross profit

     

     

    42,738

     

     

     

    36,619

     

     

     

    122,590

     

     

     

    107,502

     

    Operating expenses:

     

     

     

     

     

     

     

     

    Selling and marketing

     

     

    22,221

     

     

     

    21,025

     

     

     

    71,528

     

     

     

    63,779

     

    Research and development

     

     

    23,303

     

     

     

    19,467

     

     

     

    71,171

     

     

     

    60,846

     

    General and administrative

     

     

    13,395

     

     

     

    11,935

     

     

     

    41,561

     

     

     

    35,581

     

    Impairment of fixed assets

     

     

     

     

     

     

     

     

    1,551

     

     

     

     

    Loss from operations

     

     

    (16,181

    )

     

     

    (15,808

    )

     

     

    (63,221

    )

     

     

    (52,704

    )

    Convertible debt interest and amortization

     

     

    (1,576

    )

     

     

    (1,576

    )

     

     

    (4,728

    )

     

     

    (4,728

    )

    Other income (expense), net

     

     

    4,158

     

     

     

    (71

    )

     

     

    3,738

     

     

     

    219

     

    Loss before income tax provision

     

     

    (13,599

    )

     

     

    (17,455

    )

     

     

    (64,211

    )

     

     

    (57,213

    )

    Income tax provision

     

     

    254

     

     

     

    70

     

     

     

    688

     

     

     

    387

     

    Net loss

     

    $

    (13,853

    )

     

    $

    (17,525

    )

     

    $

    (64,899

    )

     

    $

    (57,600

    )

     

     

     

     

     

     

     

     

     

    Net loss per share:

     

     

     

     

     

     

     

     

    Basic and diluted

     

    $

    (0.31

    )

     

    $

    (0.39

    )

     

    $

    (1.44

    )

     

    $

    (1.30

    )

    Weighted average number of shares:

     

     

     

     

     

     

     

     

    Basic and diluted

     

     

    45,314

     

     

     

    44,386

     

     

     

    45,207

     

     

     

    44,318

     

    PROS Holdings, Inc.

    Condensed Consolidated Statements of Cash Flows

    (In thousands)

    (Unaudited)

     

     

     

    Three Months Ended September 30,

     

    Nine Months Ended September 30,

     

     

    2022

     

    2021

     

    2022

     

    2021

    Operating activities:

     

     

     

     

     

     

     

     

    Net loss

     

    $

    (13,853

    )

     

    $

    (17,525

    )

     

    $

    (64,899

    )

     

    $

    (57,600

    )

    Adjustments to reconcile net loss to net cash used in operating activities:

     

     

     

     

     

     

     

     

    Depreciation and amortization

     

     

    3,395

     

     

     

    2,736

     

     

     

    11,843

     

     

     

    8,828

     

    Amortization of debt issuance costs

     

     

    373

     

     

     

    373

     

     

     

    1,119

     

     

     

    1,119

     

    Share-based compensation

     

     

    10,626

     

     

     

    8,634

     

     

     

    32,617

     

     

     

    25,410

     

    Provision for doubtful accounts

     

     

    (71

    )

     

     

    (388

    )

     

     

    (371

    )

     

     

    (2,078

    )

    Impairment of fixed assets

     

     

     

     

     

     

     

     

    1,551

     

     

     

     

    Gain on equity investment

     

     

    (3,308

    )

     

     

     

     

     

    (3,308

    )

     

     

     

    Changes in operating assets and liabilities:

     

     

     

     

     

     

     

     

    Accounts and unbilled receivables

     

     

    (11,341

    )

     

     

    (1,398

    )

     

     

    (4,900

    )

     

     

    8,521

     

    Deferred costs

     

     

    598

     

     

     

    887

     

     

     

    730

     

     

     

    2,296

     

    Prepaid expenses and other assets

     

     

    824

     

     

     

    (698

    )

     

     

    (571

    )

     

     

    397

     

    Operating lease right-of-use assets and liabilities

     

     

    (808

    )

     

     

    9

     

     

     

    (1,925

    )

     

     

    35

     

    Accounts payable and other liabilities

     

     

    1,282

     

     

     

    (306

    )

     

     

    2,911

     

     

     

    593

     

    Accrued liabilities

     

     

    885

     

     

     

    (338

    )

     

     

    817

     

     

     

    (539

    )

    Accrued payroll and other employee benefits

     

     

    1,756

     

     

     

    3,190

     

     

     

    (7,388

    )

     

     

    215

     

    Deferred revenue

     

     

    651

     

     

     

    (3,347

    )

     

     

    9,838

     

     

     

    (4,782

    )

    Net cash used in operating activities

     

     

    (8,991

    )

     

     

    (8,171

    )

     

     

    (21,936

    )

     

     

    (17,585

    )

    Investing activities:

     

     

     

     

     

     

     

     

    Purchases of property and equipment

     

     

    (76

    )

     

     

    (347

    )

     

     

    (845

    )

     

     

    (2,432

    )

    Purchase of equity securities

     

     

     

     

     

    (2,169

    )

     

     

    (169

    )

     

     

    (2,670

    )

    Net cash used in investing activities

     

     

    (76

    )

     

     

    (2,516

    )

     

     

    (1,014

    )

     

     

    (5,102

    )

    Financing activities:

     

     

     

     

     

     

     

     

    Proceeds from employee stock plans

     

     

    1,279

     

     

     

    1,515

     

     

     

    2,722

     

     

     

    3,111

     

    Tax withholding related to net share settlement of stock awards

     

     

     

     

     

     

     

     

    (212

    )

     

     

    (352

    )

    Payments of notes payable

     

     

     

     

     

    (288

    )

     

     

     

     

     

    (288

    )

    Net cash provided by financing activities

     

     

    1,279

     

     

     

    1,227

     

     

     

    2,510

     

     

     

    2,471

     

    Effect of foreign currency rates on cash

     

     

    (566

    )

     

     

    (224

    )

     

     

    (289

    )

     

     

    (276

    )

    Net change in cash and cash equivalents

     

     

    (8,354

    )

     

     

    (9,684

    )

     

     

    (20,729

    )

     

     

    (20,492

    )

    Cash and cash equivalents:

     

     

     

     

     

     

     

     

    Beginning of period

     

     

    215,178

     

     

     

    318,326

     

     

     

    227,553

     

     

     

    329,134

     

    End of period

     

    $

    206,824

     

     

    $

    308,642

     

     

    $

    206,824

     

     

    $

    308,642

     

    PROS Holdings, Inc.

    Reconciliation of GAAP to Non-GAAP Financial Measures

    (In thousands, except per share data)

    (Unaudited)

    We use these non-GAAP financial measures to assist in the management of the Company because we believe that this information provides a more consistent and complete understanding of the underlying results and trends of the ongoing business due to the uniqueness of these charges.

    See breakdown of the reconciling line items on page 10.

     

     

     

    Three Months Ended
    September 30,

     

    Quarter
    over
    Quarter

     

    Nine Months Ended
    September 30,

     

    Year over
    Year

     

     

    2022

     

    2021

     

    % change

     

    2022

     

    2021

     

    % change

    GAAP gross profit

     

    $

    42,738

     

     

    $

    36,619

     

     

    17

    %

     

    $

    122,590

     

     

    $

    107,502

     

     

    14

    %

    Non-GAAP adjustments:

     

     

     

     

     

     

     

     

     

     

     

     

    Amortization of acquisition-related intangibles

     

     

    1,555

     

     

     

    384

     

     

     

     

     

    5,223

     

     

     

    1,196

     

     

     

    Share-based compensation

     

     

    1,050

     

     

     

    951

     

     

     

     

     

    2,881

     

     

     

    2,753

     

     

     

    Non-GAAP gross profit

     

    $

    45,343

     

     

    $

    37,954

     

     

    19

    %

     

    $

    130,694

     

     

    $

    111,451

     

     

    17

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    Non-GAAP gross margin

     

     

    64.5

    %

     

     

    60.6

    %

     

     

     

     

    63.7

    %

     

     

    59.8

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    GAAP loss from operations

     

    $

    (16,181

    )

     

    $

    (15,808

    )

     

    2

    %

     

    $

    (63,221

    )

     

    $

    (52,704

    )

     

    20

    %

    Non-GAAP adjustments:

     

     

     

     

     

     

     

     

     

     

     

     

    Amortization of acquisition-related intangibles

     

     

    2,221

     

     

     

    845

     

     

     

     

     

    7,793

     

     

     

    2,597

     

     

     

    Severance

     

     

     

     

     

     

     

     

     

     

    1,508

     

     

     

     

     

     

    Share-based compensation

     

     

    10,626

     

     

     

    8,634

     

     

     

     

     

    32,617

     

     

     

    25,410

     

     

     

    Total Non-GAAP adjustments

     

     

    12,847

     

     

     

    9,479

     

     

     

     

     

    41,918

     

     

     

    28,007

     

     

     

    Non-GAAP loss from operations

     

    $

    (3,334

    )

     

    $

    (6,329

    )

     

    (47

    )%

     

    $

    (21,303

    )

     

    $

    (24,697

    )

     

    (14

    )%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Non-GAAP loss from operations % of total revenue

     

     

    (4.7

    )%

     

     

    (10.1

    )%

     

     

     

     

    (10.4

    )%

     

     

    (13.2

    )%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    GAAP net loss

     

    $

    (13,853

    )

     

    $

    (17,525

    )

     

    (21

    )%

     

    $

    (64,899

    )

     

    $

    (57,600

    )

     

    13

    %

    Non-GAAP adjustments:

     

     

     

     

     

     

     

     

     

     

     

     

    Total Non-GAAP adjustments affecting loss from operations

     

     

    12,847

     

     

     

    9,479

     

     

     

     

     

    41,918

     

     

     

    28,007

     

     

     

    Amortization of debt issuance costs

     

     

    373

     

     

     

    373

     

     

     

     

     

    1,119

     

     

     

    1,119

     

     

     

    Gain on equity investment

     

     

    (3,308

    )

     

     

     

     

     

     

     

    (3,308

    )

     

     

     

     

     

    Tax impact related to non-GAAP adjustments

     

     

    1,066

     

     

     

    1,744

     

     

     

     

     

    6,078

     

     

     

    6,569

     

     

     

    Non-GAAP net loss

     

    $

    (2,875

    )

     

    $

    (5,929

    )

     

    (52

    )%

     

    $

    (19,092

    )

     

    $

    (21,905

    )

     

    (13

    )%

     

     

     

     

     

     

     

     

     

     

     

     

     

    Non-GAAP diluted loss per share

     

    $

    (0.06

    )

     

    $

    (0.13

    )

     

     

     

    $

    (0.42

    )

     

    $

    (0.49

    )

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Shares used in computing non-GAAP loss per share

     

     

    45,314

     

     

     

    44,386

     

     

     

     

     

    45,207

     

     

     

    44,318

     

     

     

    PROS Holdings, Inc.

    Supplemental Schedule of Non-GAAP Financial Measures

    Increase (Decrease) in GAAP Amounts Reported

    (In thousands)

    (Unaudited)

     

     

     

    Three Months Ended September 30,

     

    Nine Months Ended September 30,

     

     

    2022

     

    2021

     

    2022

     

    2021

    Cost of Subscription Items

     

     

     

     

     

     

     

     

    Amortization of acquisition-related intangibles

     

     

    1,555

     

     

    384

     

     

    5,223

     

     

    1,183

    Share-based compensation

     

     

    174

     

     

    182

     

     

    510

     

     

    508

    Total cost of subscription items

     

    $

    1,729

     

    $

    566

     

    $

    5,733

     

    $

    1,691

     

     

     

     

     

     

     

     

     

    Cost of Maintenance Items

     

     

     

     

     

     

     

     

    Amortization of acquisition-related intangibles

     

     

     

     

     

     

     

     

    13

    Share-based compensation

     

     

    109

     

     

    131

     

     

    298

     

     

    362

    Total cost of maintenance items

     

    $

    109

     

    $

    131

     

    $

    298

     

    $

    375

     

     

     

     

     

     

     

     

     

    Cost of Services Items

     

     

     

     

     

     

     

     

    Share-based compensation

     

     

    767

     

     

    638

     

     

    2,073

     

     

    1,883

    Total cost of services items

     

    $

    767

     

    $

    638

     

    $

    2,073

     

    $

    1,883

     

     

     

     

     

     

     

     

     

    Sales and Marketing Items

     

     

     

     

     

     

     

     

    Amortization of acquisition-related intangibles

     

     

    666

     

     

    461

     

     

    2,570

     

     

    1,401

    Severance

     

     

     

     

     

     

    1,444

     

     

    Share-based compensation

     

     

    2,897

     

     

    2,600

     

     

    9,413

     

     

    7,334

    Total sales and marketing items

     

    $

    3,563

     

    $

    3,061

     

    $

    13,427

     

    $

    8,735

     

     

     

     

     

     

     

     

     

    Research and Development Items

     

     

     

     

     

     

     

     

    Share-based compensation

     

     

    2,995

     

     

    1,924

     

     

    9,607

     

     

    5,867

    Total research and development items

     

    $

    2,995

     

    $

    1,924

     

    $

    9,607

     

    $

    5,867

     

     

     

     

     

     

     

     

     

    General and Administrative Items

     

     

     

     

     

     

     

     

    Severance

     

     

     

     

     

     

    64

     

     

    Share-based compensation

     

     

    3,684

     

     

    3,159

     

     

    10,716

     

     

    9,456

    Total general and administrative items

     

    $

    3,684

     

    $

    3,159

     

    $

    10,780

     

    $

    9,456

    PROS Holdings, Inc.

    Supplemental Reconciliation of GAAP to Non-GAAP Financial Measures

    (In thousands)

    (Unaudited)

     

     

     

    Three Months Ended September 30,

     

    Nine Months Ended September 30,

     

     

    2022

     

    2021

     

    2022

     

    2021

    Adjusted EBITDA

     

     

     

     

     

     

     

     

    GAAP Loss from Operations

     

    $

    (16,181

    )

     

    $

    (15,808

    )

     

    $

    (63,221

    )

     

    $

    (52,704

    )

    Amortization of acquisition-related intangibles

     

     

    2,221

     

     

     

    845

     

     

     

    7,793

     

     

     

    2,597

     

    Severance

     

     

     

     

     

     

     

     

    1,508

     

     

     

     

    Share-based compensation

     

     

    10,626

     

     

     

    8,634

     

     

     

    32,617

     

     

     

    25,410

     

    Depreciation and other amortization

     

     

    1,174

     

     

     

    1,891

     

     

     

    4,050

     

     

     

    6,231

     

    Adjusted EBITDA

     

    $

    (2,160

    )

     

    $

    (4,438

    )

     

    $

    (17,253

    )

     

    $

    (18,466

    )

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net cash used in operating activities

     

    $

    (8,991

    )

     

    $

    (8,171

    )

     

    $

    (21,936

    )

     

    $

    (17,585

    )

    Purchase of property and equipment (excluding new headquarters)

     

     

    (76

    )

     

     

    (347

    )

     

     

    (845

    )

     

     

    (1,291

    )

    Free Cash Flow

     

    $

    (9,067

    )

     

    $

    (8,518

    )

     

    $

    (22,781

    )

     

    $

    (18,876

    )

     

     

     

     

     

     

     

     

     

    Guidance

     

     

     

     

     

     

     

     

     

     

    Q4 2022 Guidance

     

    Full Year 2022 Guidance

     

     

    Low

     

    High

     

    Low

     

    High

    Adjusted EBITDA

     

     

     

     

     

     

     

     

    GAAP Loss from Operations

     

    $

    (24,100

    )

     

    $

    (23,100

    )

     

    $

    (87,300

    )

     

    $

    (86,300

    )

    Amortization of acquisition-related intangibles

     

     

    2,000

     

     

     

    2,000

     

     

     

    9,700

     

     

     

    9,700

     

    Severance

     

     

    5,000

     

     

     

    5,000

     

     

     

    6,500

     

     

     

    6,500

     

    Share-based compensation

     

     

    10,700

     

     

     

    10,700

     

     

     

    43,400

     

     

     

    43,400

     

    Depreciation and other amortization

     

     

    1,200

     

     

     

    1,200

     

     

     

    5,200

     

     

     

    5,200

     

    Adjusted EBITDA

     

    $

    (5,200

    )

     

    $

    (4,200

    )

     

    $

    (22,500

    )

     

    $

    (21,500

    )

     


    The Pros Holdings Stock at the time of publication of the news with a fall of -2,08 % to 24,95EUR on NYSE stock exchange (01. November 2022, 20:57 Uhr).

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    PROS Holdings, Inc. Reports Third Quarter 2022 Financial Results PROS Holdings, Inc. (NYSE: PRO), the CFO’s best-kept secret for profitable growth, today announced financial results for the third quarter ended September 30, 2022. “I’m proud of our team for delivering 17% subscription revenue growth along with …