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Sep 30, 2023
Pros Q3 2023 Earnings Report
PROS exceeded its Q3 guidance, delivering strong subscription revenue growth and improved free cash flow.
Key Takeaways
PROS Holdings, Inc. reported a strong third quarter, exceeding guidance ranges across all metrics. Subscription revenue increased by 16% year-over-year, and there was a significant improvement in free cash flow. The company also raised its revenue and profitability outlook for the full year 2023.
Subscription revenue increased by 16% year-over-year, reaching $60.0 million.
Total revenue increased by 10% year-over-year, reaching $77.3 million.
Subscription gross margin improved to 76%, with a non-GAAP subscription gross margin of 78%.
Free cash flow improved by more than $17 million year-over-year.
Revenue by Segment
Forward Guidance
PROS anticipates total revenue between $76.0 to $77.0 million and non-GAAP earnings per share between $0.03 to $0.05 for Q4 2023. For the full year 2023, the company anticipates total revenue between $302.2 to $303.2 million and adjusted EBITDA between $6.5 to $7.5 million.
Positive Outlook
- Total revenue is expected to grow by 8% compared to Q4 2022 at the midpoint.
- Subscription revenue is expected to grow by 13% compared to Q4 2022 at the midpoint.
- Non-GAAP earnings per share are projected to be $0.03 to $0.05.
- Adjusted EBITDA is expected to be $3.0 to $4.0 million.
- Free cash flow is expected to be $3.5 to $6.5 million.
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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