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Sep 30, 2022
Pros Q3 2022 Earnings Report
Reported 17% subscription revenue growth and improvements to profitability.
Key Takeaways
PROS Holdings, Inc. announced financial results for the third quarter ended September 30, 2022, with a 17% year-over-year increase in subscription revenue and strong improvements in profitability. Year-to-date deal count more than doubled compared to last year, reflecting the value proposition of the PROS Platform.
Subscription revenue of $51.8 million, up 17% year-over-year.
Subscription gross margin of 73% and non-GAAP subscription gross margin of 77%, up over 500 basis points year-over-year.
Welcomed new customers including ABB, GE Healthcare, and Phillips Pet Food.
Solutions generate an average of 8% revenue uplift, 200 basis points of margin improvement, and 67% efficiency gain for customers.
Revenue by Segment
Forward Guidance
PROS anticipates total revenue between $68.5 to $69.5 million and subscription revenue between $52.1 to $52.6 million for Q4 2022. The company is also raising its full year 2022 guidance for total revenue, subscription revenue, and adjusted EBITDA.
Positive Outlook
- Total Revenue: $68.5 to $69.5 million (Q4 2022)
- Subscription Revenue: $52.1 to $52.6 million (Q4 2022)
- Full Year 2022 Total Revenue: $273.75 to $274.75 million
- Full Year 2022 Subscription Revenue: $203.0 to $203.5 million
- Full Year 2022 Adjusted EBITDA: $(22.5) to $(21.5) million
Challenges Ahead
- Non-GAAP Loss Per Share: $(0.14) to $(0.11) (Q4 2022)
- Adjusted EBITDA: $(5.2) to $(4.2) million (Q4 2022)
- Free Cash Flow: $(25.0) to $(21.0) million (Q4 2022)
- Full Year 2022 Free Cash Flow: $(25.0) to $(21.0) million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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