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Jun 30, 2023
Pros Q2 2023 Earnings Report
Delivered strong results driven by subscription revenue growth and improved profitability.
Key Takeaways
PROS Holdings, Inc. reported an outstanding second quarter, exceeding guidance ranges across all metrics. Subscription revenue grew by 14% year-over-year, and adjusted EBITDA showed a significant improvement.
Total revenue reached $75.8 million, an 11% increase year-over-year.
Subscription revenue was $57.3 million, reflecting a 14% growth year-over-year.
Subscription gross margin stood at 75%, with a non-GAAP subscription gross margin of 78%, up 150 basis points year-over-year.
The company welcomed several new customers to the PROS Platform, including Condor, JSX, Novolex, and Singapore Airlines Cargo.
Revenue by Segment
Forward Guidance
PROS anticipates total revenue between $75.0 to $76.0 million and non-GAAP earnings per share between $0.03 and $0.04 for Q3 2023. For the full year 2023, the company expects total revenue between $300.0 to $302.0 million.
Positive Outlook
- Total revenue is projected to grow by 7% in Q3 2023 compared to Q3 2022.
- Subscription revenue is expected to increase by 14% in Q3 2023 compared to Q3 2022.
- Subscription ARR is anticipated to reach between $251.0 to $254.0 million.
- Adjusted EBITDA is forecasted to be between $2.5 to $3.5 million in Q3 2023.
- Free cash flow is projected to be between $2.5 to $6.5 million in Q3 2023.
Challenges Ahead
- The macroeconomic environment could pose risks.
- Inflation may have adverse effects.
- The COVID-19 pandemic's impact remains a concern.
- Cyberattacks and data breaches are potential threats.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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