London — (BUSINESS WIRE)–PROS Holdings, Inc. (NYSE: PRO), a provider of SaaS solutions optimizing shopping and selling experiences, today announced financial results for the third quarter ended September 30, 2021.
“The market dynamics that companies are experiencing today only heighten the need for adaptive, AI-powered digital selling technology,” stated CEO Andres Reiner. “We’re encouraged by the new customers we continue to welcome to PROS and the industry recognition we’ve received making PROS the only platform with a leader position in both the CPQ and Price Optimization and Management markets.”
Third Quarter 2021 Financial Highlights
Key financial results for the third quarter 2021 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 2021 | Q3 2020 | Change | Q3 2021 | Q3 2020 | Change | ||||||
| Revenue: | |||||||||||
| Total Revenue | $62.7 | $61.5 | 2% | n/a | n/a | n/a | |||||
| Subscription Revenue | $44.1 | $42.0 | 5% | n/a | n/a | n/a | |||||
| Subscription and Maintenance Revenue | $52.6 | $52.8 | —% | n/a | n/a | n/a | |||||
| Profitability: | |||||||||||
| Gross Profit | $36.6 | $36.9 | (1)% | $38.0 | $38.4 | (1)% | |||||
| Operating Loss | $(15.8) | $(16.2) | $0.4 | $(6.3) | $(8.0) | $1.7 | |||||
| Net Loss | $(17.5) | $(18.9) | $1.3 | $(5.9) | $(6.6) | $0.6 | |||||
| Net Loss Per Share | $(0.39) | $(0.44) | $0.05 | $(0.13) | $(0.15) | $0.02 | |||||
| Adjusted EBITDA | n/a | n/a | n/a | $(4.4) | $(6.2) | $1.8 | |||||
| Cash: | |||||||||||
| Net Cash Used in Operating Activities | $(8.2) | $(14.9) | $6.7 | n/a | n/a | n/a | |||||
| Free Cash Flow | n/a | n/a | n/a | $(8.5) | $(15.7) | $7.2 | |||||
The attached table provides a summary of PROS results for the period, including a reconciliation of GAAP to non-GAAP metrics.
Recent Business Highlights
- Promoted to Leader in the Gartner 2021 Magic Quadrant for Configure, Price, and Quote Application Suites, due to our clear vision for the PROS Platform as well as our deep and broad product capabilities.
- Named a Leader once again in the IDC 2021 MarketScape: Worldwide B2B Price Optimization and Management Applications, due to the flexibility, ease of use, and real-time, omnichannel capabilities of the PROS Platform.
- Selected as the “Best Price Optimization Solution” in the annual MarTech Breakthrough Awards program in recognition of our AI-powered, real-time pricing capabilities that help businesses drive winning offers across channels.
- Named to the 2021/2022 Inner Circle for Microsoft Business Applications, continued proof of our successful partnership.
- Certified as a Great Place to Work® for the second year in a row; this year’s certification extends to all eligible countries, recognizing our inclusive, people-first culture globally.
- Welcomed new customers who are adopting our digital selling technology such as Air Transat, Emirates SkyCargo, Korian, Marken, Radiometer Medical, Scoot, and Skyscanner, among others.
- Announced a virtual Investor Fireside Chat featuring a panel of PROS customers and members of the executive team that will take place during the PROS Outperform 2021 Conference from 1:30 PM to 3:00 PM CST on Wednesday, November 17, 2021.
- Appointed Ajay Damani as Executive Vice President, Engineering and Sunil John as Chief Product Officer to further accelerate innovation of the PROS Platform, anticipate the needs of our customers, and exceed market requirements for transformational digital selling solutions.
Financial Outlook
PROS currently anticipates the following based on an estimated 44.4 million basic weighted average shares outstanding for the fourth quarter of 2021 and a 22% non-GAAP estimated tax rate for the fourth quarter and full year 2021.
| Q4 2021
Guidance |
v. Q4 2020 at
Mid-Point |
Full Year 2021
Guidance |
v. Prior Year at
Mid-Point |
||||
| Total Revenue | $63.0 to $64.0 | 4% | $249.5 to $250.5 | (1)% | |||
| Subscription Revenue | $45.0 to $45.5 | 5% | $176.0 to $176.5 | 3% | |||
| ARR | n/a | n/a | $214.0 to $217.0 | 3% | |||
| Non-GAAP Loss Per Share | $(0.24) to $(0.22) | $(0.09) | n/a | n/a | |||
| Adjusted EBITDA | $(10.0) to $(9.0) | $(5.3) | $(28.3) to $(27.3) | $(0.2) | |||
| Free Cash Flow | n/a | n/a | $(25.0) to $(22.0) | $29.8 | |||
Conference Call
In conjunction with this announcement, PROS Holdings, Inc. will host a conference call on Tuesday, November 2, 2021, at 4:45 p.m. ET 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 16, 2021, at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13724008.
About PROS
PROS Holdings, Inc. (NYSE: PRO) is a leading provider of SaaS solutions that optimize shopping and selling experiences. Built on the PROS Platform, these intelligent solutions leverage business AI, intuitive user experiences and process automation to deliver frictionless, personalized purchasing experiences designed to meet the real-time demands of today’s B2B and B2C omnichannel shoppers, regardless of industry. 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 the business impact and duration 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 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, (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, (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.
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