PROS Holdings, Inc. Experiences Third Quarter 2022 Monetary Outcomes

HOUSTON–(BUSINESS WIRE)–PROS Holdings, Inc. (NYSE: PRO), the CFO’s best-kept secret for worthwhile development, at this time introduced monetary outcomes for the third quarter ended September 30, 2022.

“I’m happy with our workforce for delivering 17% subscription income development together with robust enhancements to profitability within the quarter,” said CEO Andres Reiner. “12 months-to-date we greater than doubled our deal depend as in comparison with final yr; the momentum we’re seeing in our enterprise displays the distinctive worth proposition of the PROS Platform which generates important income uplift and margin enhancements for our prospects, fueling worthwhile development.”

Third Quarter 2022 Monetary Highlights

Key monetary outcomes for the third quarter 2022 are proven under. All through this press launch all greenback figures are in hundreds of thousands, besides web loss per share. Until in any other case famous, all outcomes are on a reported foundation and are in contrast with the prior-year interval.

The hooked up desk offers a abstract of PROS outcomes for the interval, together with a reconciliation of GAAP to non-GAAP metrics.

Current Enterprise Highlights

• Welcomed new prospects who’re adopting PROS options akin to ABB, GE Healthcare, Phillips Pet Meals, Rapido Group, Summit Electrical Provide, and Vistara, amongst others.

• Printed our buyer worth evaluation outcomes on professionals.com, highlighting that our options generate for our prospects, on common, 8% income uplift, 200 foundation factors of margin enchancment, and 67% enchancment in effectivity acquire.

• Prolonged our digital supply advertising and marketing options with the launch of the EveryMundo Market, an utility retailer that connects third get together builders constructing eCommerce purposes on the EveryMundo platform to enterprise prospects.

• Launched buildwith.professionals.com, our new developer portal, to offer prospects and companions entry to our library of PROS APIs empowering them to combine with and embed PROS information, insights, and companies inside enterprise purposes, lowering growth time and accelerating time-to-market. Study extra by watching this YouTube video.

Monetary Outlook

PROS presently anticipates the next primarily based on an estimated 45.5 million primary weighted common shares excellent for the fourth quarter of 2022 and a 22% non-GAAP estimated tax fee for the fourth quarter and full yr 2022. For the total yr 2022, we’re elevating our steering for whole income, subscription income, and adjusted EBITDA.

Convention Name

Along side this announcement, PROS Holdings, Inc. will host a convention name on Tuesday, November 1, 2022, at 4:45 p.m. EDT to debate the Firm’s monetary outcomes and enterprise outlook. To entry this name, dial 1-877-407-9039 (toll-free) or 1-201-689-8470. The dwell and archived webcasts of this name could be accessed beneath the “Investor Relations” part of the Firm’s web site at www.professionals.com.

A phone replay will probably be out there till Tuesday, November 15, 2022, 11:59 PM EDT at 1-844-512-2921 (toll-free) or 1-412-317-6671 utilizing the move code 13733111.

About PROS

PROS Holdings, Inc. (NYSE: PRO) is your organization’s best-kept secret for worthwhile development. Considered as a market-leader by each Gartner and IDC for its CPQ and value optimization capabilities, PROS superior AI delivers outcomes to the world’s prime manufacturers together with Cargill, Etihad, Honeywell, HP, Lenovo, Lufthansa, Siemens and extra. With greater than 30 million AI fashions, PROS award successful AI is the driving drive in processing greater than 2 trillion transactions per yr. PROS prospects report as much as 96% effectivity acquire, as much as 5% margin enchancment and as much as 20% income elevate, in accordance with a current ROI examine. To study extra, go to www.professionals.com.

Ahead-looking Statements

This press launch comprises forward-looking statements inside the that means of the Non-public Securities Litigation Reform Act of 1995, together with statements about macroeconomic situations, the influence of the coronavirus (COVID-19) pandemic; our monetary outlook; expectations; capability to attain future development and profitability; administration’s confidence and optimism; positioning; buyer successes; demand for our software program options; pipeline; enterprise growth; income; subscription income; ARR; non-GAAP loss per share; adjusted EBITDA; free money circulation; shares excellent and efficient tax fee. The forward-looking statements contained on this press launch are primarily based upon our historic efficiency and our present plans, estimates and expectations and should not a illustration that such plans, estimates or expectations will probably be achieved. Elements that might trigger precise outcomes to vary materially from these described herein embody, amongst others, dangers associated to: (a) the influence of the COVID-19 pandemic, such because the scope and length of the outbreak, together with variants, and, amongst different results, the timeframe for restoration of the journey business, (b) cyberattacks, information breaches and breaches of safety measures inside our merchandise, programs and infrastructure or merchandise, programs and infrastructure of third events upon whom we rely, (c) rising enterprise from prospects and sustaining subscription renewal charges, (d) managing our development successfully, (e) disruptions from our third get together information middle, software program, information, and different unrelated service suppliers, (f) implementing our options, (g) cloud operations, (h) mental property and third-party software program, (i) buying and integrating companies and/or applied sciences, (j) catastrophic occasions, (ok) working globally, together with financial and industrial disruptions, (l) potential downturns in gross sales and prolonged gross sales cycles, (m) software program innovation, (n) competitors, (o) market acceptance of our software program improvements, (p) sustaining our company tradition, (q) personnel dangers together with lack of any key workers and competitors for expertise, (r) increasing and coaching our direct and oblique gross sales drive, (s) evolving information privateness, cyber safety and information localization legal guidelines, (t) our debt compensation obligations, (u) the timing of income recognition and money circulation from operations, (v) migrating prospects to our newest cloud options, and (w) returning to profitability. Extra data regarding the dangers and uncertainties affecting our enterprise is contained in our filings with the SEC. These forward-looking statements characterize our expectations as of the date hereof. Subsequent occasions might trigger these expectations to alter, and PROS disclaims any obligations to replace or alter these forward-looking statements sooner or later, whether or not on account of new data, future occasions or in any other case.

Non-GAAP Monetary Measures

PROS has offered on this launch sure non-GAAP monetary measures, together with non-GAAP gross revenue and margin, non-GAAP loss from operations or non-GAAP working loss, annual recurring income, adjusted EBITDA, free money circulation, non-GAAP tax fee, non-GAAP web loss, and primary earnings (loss) per share or non-GAAP web loss per share. PROS makes use of these non-GAAP monetary measures internally in analyzing its monetary outcomes and believes they’re helpful to traders, as a complement to GAAP measures, in evaluating PROS’ ongoing operational efficiency and cloud transition. Non-GAAP gross margin could be in comparison with gross margin which could be calculated from the condensed consolidated statements of loss by dividing gross revenue by whole income. Non-GAAP gross margin is equally calculated however first provides again to gross revenue the portion of sure of the non-GAAP changes described under attributable to price of income. Non-GAAP subscription margin could be in comparison with subscription margin which could be calculated from the condensed consolidated statements of loss by dividing subscription gross revenue (subscription income minus subscription price) by subscription income. Non-GAAP subscription margin is equally calculated however first subtracts out from subscription price the portion of sure of the non-GAAP changes described under attributable to price of subscription. This stuff and quantities are introduced within the Supplemental Schedule of Non-GAAP Monetary Measures.

Non-GAAP monetary measures shouldn’t be thought-about in isolation from, or as an alternative to, monetary data ready in accordance with GAAP. Traders are inspired to assessment the reconciliation of those non-GAAP measures to their most instantly comparable GAAP monetary measure as detailed above. A reconciliation of GAAP to the non-GAAP monetary measures has been offered within the tables included as a part of this press launch, and could be discovered, together with different monetary data, within the investor relations portion of our web site. PROS’ use of non-GAAP monetary measures will not be per the shows by related corporations in PROS’ business. PROS has additionally offered on this launch sure forward-looking non-GAAP monetary measures, together with non-GAAP loss from operations, annual recurring income, non-GAAP loss per share, adjusted EBITDA, free money circulation, non-GAAP tax charges, and calculated billings (collectively the “non-GAAP monetary measures”) as follows:

Non-GAAP loss from operations: Non-GAAP loss from operations excludes the influence of share-based compensation, amortization of acquisition-related intangibles and severance. Non-GAAP loss from operations excludes the next gadgets from non-GAAP estimates:

• Share-Based mostly Compensation: Though share-based compensation is a vital side of compensation for our workers and executives, our share-based compensation expense can differ due to adjustments in our inventory value and market situations on the time of grant, various valuation methodologies, and the number of award sorts. Since share-based compensation expense can differ for causes which are typically unrelated to our efficiency throughout any explicit interval, we imagine this might make it tough for traders to check our present monetary outcomes to earlier and future durations. Subsequently, we imagine it’s helpful to exclude share-based compensation with a view to higher perceive our enterprise efficiency and permit traders to check our working outcomes with peer corporations.

• Amortization of Acquisition-Associated Intangibles: We view amortization of acquisition-related intangible belongings, such because the amortization of the associated fee related to an acquired firm’s analysis and growth efforts, commerce names, buyer lists and buyer relationships, as gadgets arising from pre-acquisition actions decided on the time of an acquisition. Whereas these intangible belongings are regularly evaluated for impairment, amortization of the price of bought intangibles is a static expense, one that isn’t usually affected by operations throughout any explicit interval.

• Severance: Severance prices relate to the separation of our Chief Operations Officer in Q1 2022 and prices associated to different inside position consolidations. These quantities are unrelated to our core efficiency throughout any explicit interval, and due to this fact, we imagine it’s helpful to exclude these quantities with a view to higher perceive our enterprise efficiency and permit traders to check our outcomes with peer corporations.

Non-GAAP loss per share: Non-GAAP web loss excludes the gadgets listed above as excluded from non-GAAP loss from operations and likewise excludes amortization of debt issuance prices, acquire on fairness funding and the taxes associated to those gadgets and the gadgets 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 common shares excellent for the long run interval. Along with the gadgets listed above as excluded from non-GAAP loss from operations, non-GAAP web loss excludes the next gadgets from non-GAAP estimates:

• Amortization of Debt Issuance Prices: Amortization of debt issuance prices are associated to our convertible notes. These quantities are unrelated to our core efficiency throughout any explicit interval, and due to this fact, we imagine it’s helpful to exclude these quantities with a view to higher perceive our enterprise efficiency and permit traders to check our outcomes with peer corporations.

• Acquire on Fairness Funding: Acquire on fairness funding relate to an observable value change for an fairness funding and not using a readily determinable honest worth recognized in the course of the quarter ended September 30, 2022. These quantities are unrelated to our core efficiency throughout any explicit interval, and due to this fact, we imagine it’s helpful to exclude these quantities with a view to higher perceive our enterprise efficiency and permit traders to check our outcomes with peer corporations.

• Taxes: We exclude the tax penalties related to non-GAAP gadgets to supply traders with a helpful comparability of our working outcomes to prior durations and to our peer corporations as a result of such quantities can differ considerably. Within the fourth quarter of 2014, we concluded that it’s extra doubtless than not that we’ll be unable to completely notice our deferred tax belongings and accordingly, established a valuation allowance towards these belongings. The continuing influence of the valuation allowance on our non-GAAP efficient tax fee has been eradicated to permit traders to raised perceive our enterprise efficiency and examine our working outcomes with peer corporations.

Annual Recurring Income: Annual Recurring Income (“ARR”) is used to evaluate the trajectory of our cloud enterprise. ARR means, as of a specified date, the contracted recurring income, together with contracts with a future begin date, along with annualized overage charges incurred above contracted minimal transactions, and excluding perpetual and time period license agreements acknowledged as license income in accordance with GAAP. ARR needs to be seen independently of income and some other GAAP measure. Subscription ARR is calculated in the identical method, however excludes upkeep and help ARR.

Non-GAAP Tax Price: The estimated non-GAAP efficient tax fee adjusts the tax impact to quantify the influence of the excluded non-GAAP gadgets.

Adjusted EBITDA: Adjusted EBITDA is outlined as GAAP web loss earlier than curiosity expense, provision for earnings taxes, depreciation and amortization, as adjusted to get rid of the impact of stock-based compensation price, severance, amortization of acquisition-related intangibles, depreciation and amortization and capitalized internal-use software program growth prices. Adjusted EBITDA shouldn’t be thought-about as a substitute for web loss as an indicator of our working efficiency.

Free Money Move: Free money circulation is a non-GAAP monetary measure which is outlined as web money offered by (utilized in) working actions, much less capital expenditures (excluding expenditures for PROS new headquarters), purchases of different (non-acquisition-related) intangible belongings and capitalized internal-use software program growth prices.

Calculated Billings: Calculated billings is outlined as whole subscription, upkeep and help income plus the change in recurring deferred income in a given interval.

These non-GAAP estimates should not measurements of economic efficiency ready in accordance with GAAP, and we’re unable to reconcile these forward-looking non-GAAP monetary measures to their instantly comparable GAAP monetary measures as a result of the data described above which is required to finish a reconciliation is unavailable presently with out unreasonable effort.