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.
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 loss, annual
recurring revenue, adjusted EBITDA, free cash flow, non-GAAP
subscription revenue, non-GAAP tax rate, non-GAAP net income (loss)
or non-GAAP net loss, and diluted 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 income (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
income (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 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
new headquarters noncash rent expense. 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.
- New Headquarters Noncash Rent Expense: Noncash rent
expense is related to our new corporate headquarters and is
incurred prior to occupation of this facility. These amounts are
unrelated to our core performance during any particular period and
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 the noncash rent
expense on the preoccupied new headquarters in order for investors
to better understand our business performance and allow investors
to compare our operating results with peer companies.
Non-GAAP 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
discount and issuance costs and the taxes related to these items
and the items excluded from non-GAAP income (loss) from operations.
Estimates of non-GAAP loss per share are calculated by dividing
estimates for non-GAAP loss by our estimate of 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 Discount and Issuance Costs:
Amortization of debt discount and 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
recognized as license revenue in accordance with GAAP. ARR should
be viewed independently of revenue and any other GAAP measure.
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, amortization of
acquisition-related intangibles, depreciation and amortization, new
headquarters noncash rent expense, and capitalized internal-use
software development costs. 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, 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, 2021
December 31, 2020
Assets:
Current assets:
Cash and cash equivalents
$
308,642
$
329,134
Trade and other receivables, net of
allowance of $1,043 and $4,122, respectively
43,125
49,578
Deferred costs, current
5,850
5,941
Prepaid and other current assets
10,513
9,647
Total current assets
368,130
394,300
Property and equipment, net
32,395
36,504
Operating lease right-of-use assets
25,926
30,689
Deferred costs, noncurrent
10,339
12,544
Intangibles, net
5,738
8,341
Goodwill
49,439
50,044
Other assets, noncurrent
9,053
7,549
Total assets
$
501,020
$
539,971
Liabilities and Stockholders’
Equity:
Current liabilities:
Accounts payable and other liabilities
$
4,998
$
4,246
Accrued liabilities
12,233
13,065
Accrued payroll and other employee
benefits
25,741
25,514
Operating lease liabilities, current
6,286
5,937
Deferred revenue, current
99,300
99,156
Total current liabilities
148,558
147,918
Deferred revenue, noncurrent
6,464
11,372
Convertible debt, net, noncurrent
287,914
218,028
Operating lease liabilities,
noncurrent
39,000
44,099
Other liabilities, noncurrent
1,150
1,517
Total liabilities
483,086
422,934
Stockholders' 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; 49,072,852 and 48,142,267 shares issued,
respectively; 44,392,129 and 43,461,544 shares outstanding,
respectively
49
48
Additional paid-in capital
537,058
589,040
Treasury stock, 4,680,723 common shares,
at cost
(29,847
)
(29,847
)
Accumulated deficit
(485,043
)
(438,773
)
Accumulated other comprehensive loss
(4,283
)
(3,431
)
Total stockholders’ equity
17,934
117,037
Total liabilities and stockholders’
equity
$
501,020
$
539,971
PROS Holdings, Inc. Condensed
Consolidated Statements of Income (Loss) (In thousands, except
per share data) (Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Revenue:
Subscription
$
44,119
$
42,029
$
130,991
$
127,576
Maintenance and support
8,477
10,765
26,721
35,029
Total subscription, maintenance and
support
52,596
52,794
157,712
162,605
Services
10,075
8,714
28,738
28,961
Total revenue
62,671
61,508
186,450
191,566
Cost of revenue:
Subscription
13,122
12,897
40,512
38,153
Maintenance and support
2,044
2,177
6,459
7,577
Total cost of subscription, maintenance
and support
15,166
15,074
46,971
45,730
Services
10,886
9,563
31,977
33,584
Total cost of revenue
26,052
24,637
78,948
79,314
Gross profit
36,619
36,871
107,502
112,252
Operating expenses:
Selling and marketing
21,025
21,951
63,779
67,882
Research and development
19,022
19,135
59,575
56,668
General and administrative
12,380
11,948
36,852
40,356
Loss from operations
(15,808
)
(16,163
)
(52,704
)
(52,654
)
Convertible debt interest and
amortization
(1,576
)
(2,498
)
(4,728
)
(6,645
)
Other (expense) income, net
(71
)
122
219
1,099
Loss before income tax provision
(17,455
)
(18,539
)
(57,213
)
(58,200
)
Income tax provision
70
318
387
600
Net loss
$
(17,525
)
$
(18,857
)
$
(57,600
)
$
(58,800
)
Net loss per share:
Basic and diluted
$
(0.39
)
$
(0.44
)
$
(1.30
)
$
(1.36
)
Weighted average number of shares:
Basic and diluted
44,386
43,347
44,318
43,251
PROS Holdings, Inc. Condensed
Consolidated Statements of Cash Flows (In thousands)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Operating activities:
Net loss
$
(17,525
)
$
(18,857
)
$
(57,600
)
$
(58,800
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
2,736
3,651
8,828
10,584
Amortization of debt discount and issuance
costs
373
2,008
1,119
5,456
Share-based compensation
8,634
6,378
25,410
18,477
Provision for doubtful accounts
(388
)
263
(2,078
)
5,549
Changes in operating assets and
liabilities:
Accounts and unbilled receivables
(1,398
)
(13,700
)
8,521
(8,584
)
Deferred costs
887
717
2,296
2,343
Prepaid expenses and other assets
(698
)
(192
)
397
131
Operating lease right-of-use assets and
liabilities
9
1,047
35
7,169
Accounts payable and other liabilities
(306
)
4,700
593
2,175
Accrued liabilities
(338
)
(4,877
)
(539
)
(11,500
)
Accrued payroll and other employee
benefits
3,190
4,378
215
(10,601
)
Deferred revenue
(3,347
)
(402
)
(4,782
)
(24,240
)
Net cash used in operating activities
(8,171
)
(14,886
)
(17,585
)
(61,841
)
Investing activities:
Purchases of property and equipment
(347
)
(4,353
)
(2,432
)
(23,551
)
Capitalized internal-use software
development costs
—
(459
)
—
(1,265
)
Purchase of equity securities
(2,169
)
(113
)
(2,670
)
(113
)
Net cash used in investing activities
(2,516
)
(4,925
)
(5,102
)
(24,929
)
Financing activities:
Proceeds from employee stock plans
1,515
1,460
3,111
2,824
Tax withholding related to net share
settlement of stock awards
—
(113
)
(352
)
(20,334
)
Payments of notes payable
(288
)
—
(288
)
—
Proceeds from issuance of convertible
debt, net
—
146,925
—
146,925
Debt issuance costs related to convertible
debt
—
(675
)
—
(675
)
Purchase of capped call
—
(25,335
)
—
(25,335
)
Net cash provided by financing
activities
1,227
122,262
2,471
103,405
Effect of foreign currency rates on
cash
(224
)
(256
)
(276
)
(360
)
Net change in cash and cash
equivalents
(9,684
)
102,195
(20,492
)
16,275
Cash and cash equivalents:
Beginning of period
318,326
220,157
329,134
306,077
End of period
$
308,642
$
322,352
$
308,642
$
322,352
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
2021
2020
% change
2021
2020
% change
GAAP gross profit
$
36,619
$
36,871
(1
)%
$
107,502
$
112,252
(4
)%
Non-GAAP adjustments:
New headquarters noncash rent expense
—
99
—
417
Amortization of acquisition-related
intangibles
384
910
1,196
2,700
Share-based compensation
951
519
2,753
1,545
Non-GAAP gross profit
$
37,954
$
38,399
(1
)%
$
111,451
$
116,914
(5
)%
Non-GAAP gross margin
60.6
%
62.4
%
59.8
%
61.0
%
GAAP loss from operations
$
(15,808
)
$
(16,163
)
(2
)%
$
(52,704
)
$
(52,654
)
—
%
Non-GAAP adjustments:
New headquarters noncash rent expense
—
370
—
1,479
Amortization of acquisition-related
intangibles
845
1,386
2,597
4,144
Share-based compensation
8,634
6,378
25,410
18,477
Total Non-GAAP adjustments
9,479
8,134
28,007
24,100
Non-GAAP loss from operations
$
(6,329
)
$
(8,029
)
(21
)%
$
(24,697
)
$
(28,554
)
(14
)%
Non-GAAP loss from operations % of total
revenue
(10.1
)%
(13.1
)%
(13.2
)%
(14.9
)%
GAAP net loss
$
(17,525
)
$
(18,857
)
(7
)%
$
(57,600
)
$
(58,800
)
(2
)%
Non-GAAP adjustments:
Total Non-GAAP adjustments affecting loss
from operations
9,479
8,134
28,007
24,100
Amortization of debt discount and issuance
costs
373
1,998
1,119
5,426
Tax impact related to non-GAAP
adjustments
1,744
2,168
6,569
6,908
Non-GAAP net loss
$
(5,929
)
$
(6,557
)
(10
)%
$
(21,905
)
$
(22,366
)
(2
)%
Non-GAAP diluted loss per share
$
(0.13
)
$
(0.15
)
$
(0.49
)
$
(0.52
)
Shares used in computing non-GAAP loss per
share
44,386
43,347
44,318
43,251
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,
2021
2020
2021
2020
Cost of Subscription Items
New headquarters noncash rent expense
—
13
—
42
Amortization of acquisition-related
intangibles
384
742
1,183
2,214
Share-based compensation
182
119
508
297
Total cost of subscription items
$
566
$
874
$
1,691
$
2,553
Cost of Maintenance Items
New headquarters noncash rent expense
—
13
—
64
Amortization of acquisition-related
intangibles
—
168
13
486
Share-based compensation
131
50
362
178
Total cost of maintenance items
$
131
$
231
$
375
$
728
Cost of Services Items
New headquarters noncash rent expense
—
73
—
311
Share-based compensation
638
350
1,883
1,070
Total cost of services items
$
638
$
423
$
1,883
$
1,381
Sales and Marketing Items
New headquarters noncash rent expense
—
73
—
283
Amortization of acquisition-related
intangibles
461
476
1,401
1,444
Share-based compensation
2,600
1,727
7,334
5,558
Total sales and marketing items
$
3,061
$
2,276
$
8,735
$
7,285
Research and Development Items
New headquarters noncash rent expense
—
133
—
517
Share-based compensation
1,924
1,539
5,867
4,414
Total research and development items
$
1,924
$
1,672
$
5,867
$
4,931
General and Administrative
Items
New headquarters noncash rent expense
—
65
—
262
Share-based compensation
3,159
2,593
9,456
6,960
Total general and administrative items
$
3,159
$
2,658
$
9,456
$
7,222
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,
2021
2020
2021
2020
Adjusted EBITDA
GAAP Loss from Operations
$
(15,808
)
$
(16,163
)
$
(52,704
)
$
(52,654
)
Amortization of acquisition-related
intangibles
845
1,386
2,597
4,144
New headquarters noncash rent expense
—
370
—
1,479
Share-based compensation
8,634
6,378
25,410
18,477
Depreciation and other amortization
1,891
2,265
6,231
6,440
Capitalized internal-use software
development costs
—
(459
)
—
(1,265
)
Adjusted EBITDA
$
(4,438
)
$
(6,223
)
$
(18,466
)
$
(23,379
)
Net cash used in operating
activities
$
(8,171
)
$
(14,886
)
$
(17,585
)
$
(61,841
)
Purchase of property and equipment
(excluding new headquarters)
(347
)
(384
)
(1,291
)
(1,647
)
Capitalized internal-use software
development costs
—
(459
)
—
(1,265
)
Free Cash Flow
$
(8,518
)
$
(15,729
)
$
(18,876
)
$
(64,753
)
Guidance
Q4 2021 Guidance
Full Year 2021
Guidance
Low
High
Low
High
Adjusted EBITDA
GAAP Loss from Operations
$
(21,900
)
$
(20,900
)
$
(74,500
)
$
(73,500
)
Amortization of acquisition-related
intangibles
800
800
3,400
3,400
Share-based compensation
9,300
9,300
34,700
34,700
Depreciation and other amortization
1,800
1,800
8,100
8,100
Adjusted EBITDA
$
(10,000
)
$
(9,000
)
$
(28,300
)
$
(27,300
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211102006182/en/
Investor Contact: PROS Investor Relations Belinda
Overdeput 713-335-5895 ir@pros.com
Media Contact: Amy Sachrison 713-335-5141
asachrison@pros.com
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