- Total revenue of $75.8 million, up 11% year-over-year.
- Subscription revenue of $57.3 million, up 14%
year-over-year.
- Subscription gross margin of 75% and non-GAAP subscription
gross margin of 78%, up 150 basis points year-over-year.
PROS Holdings, Inc. (NYSE: PRO), a leading provider of
AI-powered SaaS pricing, CPQ, revenue management, and digital offer
marketing solutions, today announced financial results for the
second quarter ended June 30, 2023.
“We delivered an outstanding second quarter, exceeding our
guidance ranges across all metrics, driving 14% subscription
revenue growth, and delivering a more than 100% improvement to
adjusted EBITDA year-over-year,” stated CEO Andres Reiner. “Our
performance in the first half of 2023 is a testament to the
critical need for the PROS Platform in the market as businesses
look to embrace digitization, automation, and AI to fuel profitable
growth. Our passion for continuous AI innovation and delivering
exceptional customer value is why we continue to welcome many new
customers to PROS across the industries we serve.”
Second Quarter 2023 Financial Highlights
Key financial results for the second quarter 2023 are shown
below. Throughout this press release all dollar figures are in
millions, except net (loss) earnings per share. Unless otherwise
noted, all results are on a reported basis and are compared with
the prior-year period.
GAAP
Non-GAAP
Q2 2023
Q2 2022
Change
Q2 2023
Q2 2022
Change
Revenue:
Total Revenue
$75.8
$68.4
11%
n/a
n/a
n/a
Subscription Revenue
$57.3
$50.4
14%
n/a
n/a
n/a
Subscription and Maintenance Revenue
$62.4
$57.6
8%
n/a
n/a
n/a
Profitability:
Gross Profit
$47.2
$40.7
16%
$49.4
$43.4
14%
Operating (Loss) Income
$(13.4)
$(20.5)
$7.2
$(1.0)
$(7.2)
$6.2
Net (Loss) Income
$(13.3)
$(22.4)
$9.1
$(0.3)
$(6.5)
$6.2
Net (Loss) Earnings Per Share
$(0.29)
$(0.50)
$0.21
$(0.01)
$(0.14)
$0.13
Adjusted EBITDA
n/a
n/a
n/a
$0.1
$(6.0)
$6.1
Cash:
Net Cash Used in Operating Activities
$(6.5)
$(1.9)
$(4.6)
n/a
n/a
n/a
Free Cash Flow
n/a
n/a
n/a
$(6.2)
$(2.2)
$(4.0)
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 many new customers who are adopting the PROS Platform
such as Condor, JSX, Novolex, Pipeline Supply & Services, PODS,
Singapore Airlines Cargo, and XMA Limited, among others.
- Named a Leader in the Forrester WaveTM: Configure, Price, Quote
Solutions Q2 2023 evaluation; PROS is now the only independent
software solution to be named a Leader in CPQ by both Gartner and
Forrester.
- Launched a new partnership with Adobe that combines Adobe’s
Commerce offering with PROS market leading CPQ product
configuration capabilities, enabling Adobe Commerce customers to
power personalized products and offers through their eCommerce
channels.
- Delivered the 2023 Outperform with PROS Conference which had
PROS largest, in-person user conference turnout ever; the event
featured over 50 customer speakers and attracted business leaders
from around the globe eager to learn how to use digitization,
automation, and AI to thrive in ever-changing markets.
- Hosted PROS 2023 Analyst Day on May 23, 2023 at the 2023
Outperform with PROS Conference where PROS executive management
team presented PROS vision, strategy, and three-year financial
projections.
- Named as one of three Global Independent Software Vendor
finalists for Business Transformation in the 2023 Microsoft US
Partner of the Year Award for the second year in a row, placing
PROS in the top 1% of Microsoft partners globally; PROS was
recognized for our seamlessly integrated Smart CPQ offering which
enhances and extends Microsoft Dynamics 365 Sales to help
businesses fuel profitable growth through AI-powered, digital sales
experiences.
Financial Outlook
PROS currently anticipates the following based on an estimated
46.7 million diluted weighted average shares outstanding for the
third quarter of 2023 and a 22% non-GAAP estimated tax rate for the
third quarter and full year 2023.
Q3 2023 Guidance
v. Q3 2022 at Mid-
Point
Full Year 2023
Guidance
v. Prior Year at Mid-
Point
Total Revenue
$75.0 to $76.0
7%
$300.0 to $302.0
9%
Subscription Revenue
$58.6 to $59.1
14%
$231.7 to $233.7
14%
Subscription ARR
n/a
n/a
$251.0 to $254.0
11%
Non-GAAP Earnings Per Share
$0.03 to $0.04
$0.10
n/a
n/a
Adjusted EBITDA
$2.5 to $3.5
$5.2
$5.5 to $7.5
$21.4
Free Cash Flow
n/a
n/a
$2.5 to $6.5
$26.2
Conference Call
In conjunction with this announcement, PROS Holdings, Inc. will
host a conference call on Tuesday, July 25, 2023, 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, August 1,
2023, 11:59 PM ET at 1-844-512-2921 (toll-free) or 1-412-317-6671
using the pass code 13739818.
About PROS
PROS Holdings, Inc. (NYSE: PRO) is a leading provider of
AI-powered SaaS pricing, CPQ, revenue management, and digital offer
marketing solutions. Our vision is to optimize every shopping and
selling experience. With over 30 years of industry expertise and a
proven track record of success, PROS helps B2B and B2C companies
across the globe, in a variety of industries, including airlines,
manufacturing, distribution, and services, drive profitable growth.
The PROS Platform leverages AI to provide real-time predictive
insights that enable businesses to drive revenue and margin
improvements. To learn more about PROS and our innovative SaaS
solutions, please visit our website at 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 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 earnings
(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 macroeconomic environment, (b) the effects of
inflation, (c) the impact of the COVID-19 pandemic, (d)
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, (e)
increasing business from customers and maintaining subscription
renewal rates, (f) managing our growth and profit objectives
effectively, (g) disruptions from our third party data center,
software, data, and other unrelated service providers, (h)
implementing our solutions, (i) cloud operations, (j) intellectual
property and third-party software, (k) acquiring and integrating
businesses and/or technologies, (l) catastrophic events, (m)
operating globally, including economic and commercial disruptions,
(n) potential downturns in sales and lengthy sales cycles, (o)
software innovation, (p) competition, (q) market acceptance of our
software innovations, (r) maintaining our corporate culture, (s)
personnel risks including loss of any key employees and competition
for talent, (t) expanding and training our direct and indirect
sales force, (u) evolving data privacy, cyber security and data
localization laws, (v) our debt repayment obligations, (w) the
timing of revenue recognition and cash flow from operations, (x)
migrating customers to our latest cloud solutions, and (y)
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
income (loss) from operations or non-GAAP operating income (loss),
annual recurring revenue, adjusted EBITDA, free cash flow, non-GAAP
tax rate, non-GAAP net income (loss), and non-GAAP earnings (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 income (loss) from operations, annual recurring
revenue, non-GAAP earnings (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 income (loss) from operations: Non-GAAP income
(loss) from operations excludes the impact of share-based
compensation, amortization of acquisition-related intangibles and
severance. Non-GAAP income (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 as well as severance cost incurred in
Q4 2022 and Q1 2023 as the Company reprioritized its investments to
focus on supporting key growth areas of its business. As a result
of this reprioritization, the Company incurred severance, employee
benefits, outplacement and related costs. 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 earnings (loss) per share: Non-GAAP net income
(loss) excludes the items listed above as excluded from non-GAAP
income (loss) from operations and also excludes amortization of
debt issuance costs and the taxes related to these items and the
items excluded from non-GAAP income (loss) from operations.
Estimates of non-GAAP earnings (loss) per share are calculated by
dividing estimates for non-GAAP net income (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 income
(loss) from operations, non-GAAP net income (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.
- 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.
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
income (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, and depreciation and amortization.
Adjusted EBITDA should not be considered as an alternative to net
income (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, excluding severance payments, less capital
expenditures, 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)
June 30, 2023
December 31, 2022
Assets:
Current assets:
Cash and cash equivalents
$
184,567
$
203,627
Trade and other receivables, net of
allowance of $679 and $609, respectively
54,163
48,178
Deferred costs, current
6,221
6,032
Prepaid and other current assets
11,413
9,441
Total current assets
256,364
267,278
Property and equipment, net
24,659
25,012
Operating lease right-of-use assets
14,050
17,474
Deferred costs, noncurrent
8,234
8,764
Intangibles, net
14,425
17,851
Goodwill
107,724
107,561
Other assets, noncurrent
8,508
9,012
Total assets
$
433,964
$
452,952
Liabilities and Stockholders’ (Deficit)
Equity:
Current liabilities:
Accounts payable and other liabilities
$
6,874
$
7,964
Accrued liabilities
13,784
12,854
Accrued payroll and other employee
benefits
20,109
23,797
Operating lease liabilities, current
4,863
7,662
Deferred revenue, current
116,365
108,659
Current portion of convertible debt,
net
143,003
—
Total current liabilities
304,998
160,936
Deferred revenue, noncurrent
5,218
8,298
Convertible debt, net, noncurrent
147,522
289,779
Operating lease liabilities,
noncurrent
26,456
28,184
Other liabilities, noncurrent
1,224
1,228
Total liabilities
485,418
488,425
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; 50,821,459 and 50,318,726 shares issued,
respectively; 46,140,736 and 45,638,003 shares outstanding,
respectively
51
50
Additional paid-in capital
606,599
590,475
Treasury stock, 4,680,723 common shares,
at cost
(29,847
)
(29,847
)
Accumulated deficit
(623,189
)
(590,898
)
Accumulated other comprehensive loss
(5,068
)
(5,253
)
Total stockholders’ (deficit) equity
(51,454
)
(35,473
)
Total liabilities and stockholders’
(deficit) equity
$
433,964
$
452,952
PROS Holdings, Inc.
Condensed Consolidated
Statements of Loss
(In thousands, except per share
data)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenue:
Subscription
$
57,304
$
50,386
$
113,273
$
99,151
Maintenance and support
5,093
7,249
10,805
15,104
Total subscription, maintenance and
support
62,397
57,635
124,078
114,255
Services
13,395
10,727
24,896
20,599
Total revenue
75,792
68,362
148,974
134,854
Cost of revenue:
Subscription
14,059
13,746
28,152
27,525
Maintenance and support
1,876
1,988
4,158
4,155
Total cost of subscription, maintenance
and support
15,935
15,734
32,310
31,680
Services
12,636
11,907
25,803
23,322
Total cost of revenue
28,571
27,641
58,113
55,002
Gross profit
47,221
40,721
90,861
79,852
Operating expenses:
Selling and marketing
24,880
24,020
50,890
49,307
Research and development
21,847
23,401
44,138
47,868
General and administrative
13,849
13,837
27,984
28,166
Impairment of fixed assets
—
—
—
1,551
Loss from operations
(13,355
)
(20,537
)
(32,151
)
(47,040
)
Convertible debt interest and
amortization
(1,576
)
(1,576
)
(3,152
)
(3,152
)
Other income (expense), net
1,791
(2
)
3,242
(420
)
Loss before income tax provision
(13,140
)
(22,115
)
(32,061
)
(50,612
)
Income tax provision
149
291
230
434
Net loss
$
(13,289
)
$
(22,406
)
$
(32,291
)
$
(51,046
)
Net loss per share:
Basic and diluted
$
(0.29
)
$
(0.50
)
$
(0.70
)
$
(1.13
)
Weighted average number of shares:
Basic and diluted
46,101
45,222
46,013
45,154
PROS Holdings, Inc.
Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Operating activities:
Net loss
$
(13,289
)
$
(22,406
)
$
(32,291
)
$
(51,046
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
2,751
3,801
5,752
8,448
Amortization of debt issuance costs
373
373
746
746
Share-based compensation
10,752
10,766
20,656
21,991
Provision for credit losses
(20
)
(209
)
88
(300
)
Loss on disposal of assets
—
—
35
—
Impairment of fixed assets
—
—
—
1,551
Changes in operating assets and
liabilities:
Accounts and unbilled receivables
(8,309
)
18,571
(6,070
)
6,441
Deferred costs
(84
)
180
341
132
Prepaid expenses and other assets
1,056
(1,133
)
(1,449
)
(1,395
)
Operating lease right-of-use assets and
liabilities
(646
)
(378
)
(1,237
)
(1,117
)
Accounts payable and other liabilities
2,541
(2,274
)
(1,252
)
1,629
Accrued liabilities
573
41
1,077
(68
)
Accrued payroll and other employee
benefits
4,486
4,102
(3,688
)
(9,144
)
Deferred revenue
(6,726
)
(13,365
)
4,607
9,187
Net cash used in operating activities
(6,542
)
(1,931
)
(12,685
)
(12,945
)
Investing activities:
Purchases of property and equipment
(277
)
(308
)
(1,823
)
(769
)
Purchase of equity securities
—
(169
)
—
(169
)
Net cash used in investing activities
(277
)
(477
)
(1,823
)
(938
)
Financing activities:
Proceeds from employee stock plans
—
—
1,137
1,443
Tax withholding related to net share
settlement of stock awards
(958
)
—
(5,668
)
(212
)
Net cash (used in) provided by financing
activities
(958
)
—
(4,531
)
1,231
Effect of foreign currency rates on
cash
(32
)
193
(21
)
277
Net change in cash and cash
equivalents
(7,809
)
(2,215
)
(19,060
)
(12,375
)
Cash and cash equivalents:
Beginning of period
192,376
217,393
203,627
227,553
End of period
$
184,567
$
215,178
$
184,567
$
215,178
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 June
30,
Quarter over Quarter
Six Months Ended June
30,
Year over Year
2023
2022
% change
2023
2022
% change
GAAP gross profit
$
47,221
$
40,721
16
%
$
90,861
$
79,852
14
%
Non-GAAP adjustments:
Amortization of acquisition-related
intangibles
1,243
1,685
2,580
3,668
Severance
—
—
749
—
Share-based compensation
985
1,006
1,817
1,831
Non-GAAP gross profit
$
49,449
$
43,412
14
%
$
96,007
$
85,351
12
%
Non-GAAP gross margin
65.2
%
63.5
%
64.4
%
63.3
%
GAAP loss from operations
$
(13,355
)
$
(20,537
)
(35
)%
$
(32,151
)
$
(47,040
)
(32
)%
Non-GAAP adjustments:
Amortization of acquisition-related
intangibles
1,620
2,597
3,426
5,572
Severance
—
—
3,586
1,508
Share-based compensation
10,752
10,766
20,656
21,991
Total Non-GAAP adjustments
12,372
13,363
27,668
29,071
Non-GAAP loss from operations
$
(983
)
$
(7,174
)
(86
)%
$
(4,483
)
$
(17,969
)
(75
)%
Non-GAAP loss from operations % of total
revenue
(1.3
)%
(10.5
)%
(3.0
)%
(13.3
)%
GAAP net loss
$
(13,289
)
$
(22,406
)
(41
)%
$
(32,291
)
$
(51,046
)
(37
)%
Non-GAAP adjustments:
Total Non-GAAP adjustments affecting loss
from operations
12,372
13,363
27,668
29,071
Amortization of debt issuance costs
373
373
746
746
Tax impact related to non-GAAP
adjustments
235
2,132
1,032
5,012
Non-GAAP net loss
$
(309
)
$
(6,538
)
(95
)%
$
(2,845
)
$
(16,217
)
(82
)%
Non-GAAP loss per share
$
(0.01
)
$
(0.14
)
$
(0.06
)
$
(0.36
)
Shares used in computing non-GAAP loss per
share
46,101
45,222
46,013
45,154
PROS Holdings, Inc.
Supplemental Schedule of
Non-GAAP Financial Measures
Increase (Decrease) in GAAP
Amounts Reported
(In thousands)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Cost of Subscription Items
Amortization of acquisition-related
intangibles
1,243
1,685
2,580
3,668
Severance
—
—
125
—
Share-based compensation
169
185
294
336
Total cost of subscription items
$
1,412
$
1,870
$
2,999
$
4,004
Cost of Maintenance Items
Severance
—
—
307
—
Share-based compensation
98
98
178
189
Total cost of maintenance items
$
98
$
98
$
485
$
189
Cost of Services Items
Severance
—
—
317
—
Share-based compensation
718
723
1,345
1,306
Total cost of services items
$
718
$
723
$
1,662
$
1,306
Sales and Marketing Items
Amortization of acquisition-related
intangibles
377
912
846
1,904
Severance
—
—
1,595
1,444
Share-based compensation
3,103
3,276
6,031
6,516
Total sales and marketing items
$
3,480
$
4,188
$
8,472
$
9,864
Research and Development Items
Severance
—
—
1,008
—
Share-based compensation
2,673
2,899
5,023
6,612
Total research and development items
$
2,673
$
2,899
$
6,031
$
6,612
General and Administrative
Items
Severance
—
—
234
64
Share-based compensation
3,991
3,585
7,785
7,032
Total general and administrative items
$
3,991
$
3,585
$
8,019
$
7,096
PROS Holdings, Inc.
Supplemental Reconciliation of
GAAP to Non-GAAP Financial Measures
(In thousands)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Adjusted EBITDA
GAAP Loss from Operations
$
(13,355
)
$
(20,537
)
$
(32,151
)
$
(47,040
)
Amortization of acquisition-related
intangibles
1,620
2,597
3,426
5,572
Severance
—
—
3,586
1,508
Share-based compensation
10,752
10,766
20,656
21,991
Depreciation and other amortization
1,131
1,204
2,326
2,876
Adjusted EBITDA
$
148
$
(5,970
)
$
(2,157
)
$
(15,093
)
Net cash used in operating
activities
$
(6,542
)
$
(1,931
)
$
(12,685
)
$
(12,945
)
Severance
579
—
3,749
—
Purchase of property and equipment
(277
)
(308
)
(1,823
)
(769
)
Free Cash Flow
$
(6,240
)
$
(2,239
)
$
(10,759
)
$
(13,714
)
Guidance
Q3 2023 Guidance
Full Year 2023
Guidance
Low
High
Low
High
Adjusted EBITDA
GAAP Loss from Operations
$
(11,400
)
$
(10,400
)
$
(51,900
)
$
(49,900
)
Amortization of acquisition-related
intangibles
1,400
1,400
6,100
6,100
Severance
—
—
3,600
3,600
Share-based compensation
11,300
11,300
43,000
43,000
Depreciation and other amortization
1,200
1,200
4,700
4,700
Adjusted EBITDA
$
2,500
$
3,500
$
5,500
$
7,500
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230725631299/en/
PROS Investor Relations Belinda Overdeput 713-335-5879
ir@pros.com
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