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Mar 31, 2024
Pros Q1 2024 Earnings Report
Delivered strong results, exceeding guidance across all metrics, with significant improvement to adjusted EBITDA.
Key Takeaways
PROS Holdings, Inc. reported a strong start to 2024 with subscription revenue growth of 15% and a near 300% improvement to adjusted EBITDA year-over-year.
Subscription revenue increased by 15% year-over-year, reaching $64.3 million.
Subscription gross margin improved to 77%, with a non-GAAP subscription gross margin of 79%, up by more than 140 basis points year-over-year.
Total gross margin increased to 64%, and non-GAAP gross margin reached 67%, showing an improvement of 315 basis points year-over-year.
PROS launched the PROS Copilot for Sales Plugin in partnership with Microsoft.
Revenue by Segment
Forward Guidance
PROS anticipates total revenue between $80.5 million and $81.5 million and subscription revenue between $64.0 million and $64.5 million for Q2 2024. Full year 2024 guidance includes total revenue between $332.5 million and $334.5 million and subscription revenue between $263.5 million and $265.5 million.
Positive Outlook
- Total revenue is expected to grow by 7% in Q2 2024 compared to Q2 2023 at Mid-Point.
- Subscription revenue is projected to increase by 12% in Q2 2024 compared to Q2 2023 at Mid-Point.
- Subscription ARR is anticipated to be between $289.0 million and $292.0 million, representing a 12% growth.
- Adjusted EBITDA is forecasted to be between $1.0 million and $2.0 million.
- Free Cash Flow is expected to be between $22.0 million and $26.0 million for the full year 2024.
Challenges Ahead
- Non-GAAP Earnings Per Share is expected to be between $0.00 and $0.02 for Q2 2024.
- Full year 2024 Adjusted EBITDA is projected to be between $17.0 million and $20.0 million, only a slight increase of $1.4 million at mid point.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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