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Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

PROS Holdings, Inc. Reports Third Quarter 2021 Financial Results

November 2, 2021 GMT

HOUSTON--(BUSINESS WIRE)--Nov 2, 2021--

PROS Holdings, Inc. (NYSE: PRO), a provider of SaaS solutions optimizing shopping and selling experiences, today announced financial results for the third quarter ended September 30, 2021.

“The market dynamics that companies are experiencing today only heighten the need for adaptive, AI-powered digital selling technology,” stated CEO Andres Reiner. “We’re encouraged by the new customers we continue to welcome to PROS and the industry recognition we’ve received making PROS the only platform with a leader position in both the CPQ and Price Optimization and Management markets.”

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Third Quarter 2021 Financial Highlights

Key financial results for the third quarter 2021 are shown below. Throughout this press release all dollar figures are in millions, except net loss per share. Unless otherwise noted, all results are on a reported basis and are compared with the prior-year period.

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GAAP

 

Non-GAAP

 

Q3 2021

 

Q3 2020

 

Change

 

Q3 2021

 

Q3 2020

 

Change

Revenue:

 

 

 

 

 

 

 

 

 

 

 

Total Revenue

$62.7

 

$61.5

 

2%

 

n/a

 

n/a

 

n/a

Subscription Revenue

$44.1

 

$42.0

 

5%

 

n/a

 

n/a

 

n/a

Subscription and Maintenance Revenue

$52.6

 

$52.8

 

—%

 

n/a

 

n/a

 

n/a

Profitability:

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

$36.6

 

$36.9

 

(1)%

 

$38.0

 

$38.4

 

(1)%

Operating Loss

$(15.8)

 

$(16.2)

 

$0.4

 

$(6.3)

 

$(8.0)

 

$1.7

Net Loss

$(17.5)

 

$(18.9)

 

$1.3

 

$(5.9)

 

$(6.6)

 

$0.6

Net Loss Per Share

$(0.39)

 

$(0.44)

 

$0.05

 

$(0.13)

 

$(0.15)

 

$0.02

Adjusted EBITDA

n/a

 

n/a

 

n/a

 

$(4.4)

 

$(6.2)

 

$1.8

Cash:

 

 

 

 

 

 

 

 

 

 

 

Net Cash Used in Operating Activities

$(8.2)

 

$(14.9)

 

$6.7

 

n/a

 

n/a

 

n/a

Free Cash Flow

n/a

 

n/a

 

n/a

 

$(8.5)

 

$(15.7)

 

$7.2

 

The attached table provides a summary of PROS results for the period, including a reconciliation of GAAP to non-GAAP metrics.

Recent Business Highlights

  • Named a Leader once again in the IDC 2021 MarketScape: Worldwide B2B Price Optimization and Management Applications, due to the flexibility, ease of use, and real-time, omnichannel capabilities of the PROS Platform.

  • Selected as the “Best Price Optimization Solution” in the annual MarTech Breakthrough Awards program in recognition of our AI-powered, real-time pricing capabilities that help businesses drive winning offers across channels.

  • Named to the 2021/2022 Inner Circle for Microsoft Business Applications, continued proof of our successful partnership.

  • Certified as a Great Place to Work® for the second year in a row; this year’s certification extends to all eligible countries, recognizing our inclusive, people-first culture globally.

  • Welcomed new customers who are adopting our digital selling technology such as Air Transat, Emirates SkyCargo, Korian, Marken, Radiometer Medical, Scoot, and Skyscanner, among others.

  • Announced a virtual Investor Fireside Chat featuring a panel of PROS customers and members of the executive team that will take place during the PROS Outperform 2021 Conference from 1:30 PM to 3:00 PM CST on Wednesday, November 17, 2021.

  • Appointed Ajay Damani as Executive Vice President, Engineering and Sunil John as Chief Product Officer to further accelerate innovation of the PROS Platform, anticipate the needs of our customers, and exceed market requirements for transformational digital selling solutions.

Financial Outlook

PROS currently anticipates the following based on an estimated 44.4 million basic weighted average shares outstanding for the fourth quarter of 2021 and a 22% non-GAAP estimated tax rate for the fourth quarter and full year 2021.

 

Q4 2021

Guidance

 

v. Q4 2020 at

Mid-Point

 

Full Year 2021

Guidance

 

v. Prior Year at

Mid-Point

Total Revenue

$63.0 to $64.0

 

4%

 

$249.5 to $250.5

 

(1)%

Subscription Revenue

$45.0 to $45.5

 

5%

 

$176.0 to $176.5

 

3%

ARR

n/a

 

n/a

 

$214.0 to $217.0

 

3%

Non-GAAP Loss Per Share

$(0.24) to $(0.22)

 

$(0.09)

 

n/a

 

n/a

Adjusted EBITDA

$(10.0) to $(9.0)

 

$(5.3)

 

$(28.3) to $(27.3)

 

$(0.2)

Free Cash Flow

n/a

 

n/a

 

$(25.0) to $(22.0)

 

$29.8

 

Conference Call

In conjunction with this announcement, PROS Holdings, Inc. will host a conference call on Tuesday, November 2, 2021, at 4:45 p.m. ET to discuss the Company’s financial results and business outlook. To access this call, dial 1-877-407-9039 (toll-free) or 1-201-689-8470. The live and archived webcasts of this call can be accessed under the “Investor Relations” section of the Company’s website at www.pros.com.

A telephone replay will be available until Tuesday, November 16, 2021, at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13724008.

About PROS

PROS Holdings, Inc. (NYSE: PRO) is a leading provider of SaaS solutions that optimize shopping and selling experiences. Built on the PROS Platform, these intelligent solutions leverage business AI, intuitive user experiences and process automation to deliver frictionless, personalized purchasing experiences designed to meet the real-time demands of today’s B2B and B2C omnichannel shoppers, regardless of industry. To learn more, visit www.pros.com.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the business impact and duration of the coronavirus (COVID-19) pandemic; our financial outlook; expectations; ability to achieve future growth and profitability; management’s confidence and optimism; positioning; customer successes; demand for our software solutions; pipeline; business expansion; revenue; subscription revenue; ARR; non-GAAP loss per share; adjusted EBITDA; free cash flow; shares outstanding and effective tax rate. The forward-looking statements contained in this press release are based upon our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates or expectations will be achieved. Factors that could cause actual results to differ materially from those described herein include, among others, risks related to: (a) the impact of the COVID-19 pandemic, such as the scope and duration of the outbreak and, among other effects, the timeframe for recovery of the travel industry, (b) cyberattacks, data breaches and breaches of security measures within our products, systems and infrastructure or products, systems and infrastructure of third parties upon whom we rely, (c) increasing business from customers and maintaining subscription renewal rates, (d) managing our growth effectively, (e) disruptions from our third party data center, software, data, and other unrelated service providers, (f) implementing our solutions, (g) cloud operations, (h) intellectual property and third-party software, (i) acquiring and integrating businesses and/or technologies, (j) catastrophic events, (k) operating globally, including economic and commercial disruptions, (l) potential downturns in sales, (m) software innovation, (n) competition, (o) market acceptance of our software innovations, (p) maintaining our corporate culture, (q) personnel risks including loss of any key employees, (r) expanding and training our direct and indirect sales force, (s) evolving data privacy, cyber security and data localization laws, (t) our debt repayment obligations, (u) the timing of revenue recognition and cash flow from operations, (v) migrating customers to our latest cloud solutions, and (w) returning to profitability. Additional information relating to the risks and uncertainties affecting our business is contained in our filings with the SEC. These forward-looking statements represent our expectations as of the date hereof. Subsequent events may cause these expectations to change, and PROS disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

PROS has provided in this release certain non-GAAP financial measures, including non-GAAP gross profit and margin, non-GAAP income (loss) from operations or non-GAAP operating loss, annual recurring revenue, adjusted EBITDA, free cash flow, non-GAAP subscription revenue, non-GAAP tax rate, non-GAAP net income (loss) or non-GAAP net loss, and diluted earnings (loss) per share or non-GAAP net loss per share. PROS uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating PROS’ ongoing operational performance and cloud transition. Non-GAAP gross margin can be compared to gross margin which can be calculated from the condensed consolidated statements of income (loss) by dividing gross profit by total revenue. Non-GAAP gross margin is similarly calculated but first adds back to gross profit the portion of certain of the non-GAAP adjustments described below attributable to cost of revenue. Non-GAAP subscription margin can be compared to subscription margin which can be calculated from the condensed consolidated statements of income (loss) by dividing subscription gross profit (subscription revenue minus subscription cost) by subscription revenue. Non-GAAP subscription margin is similarly calculated but first subtracts out from subscription cost the portion of certain of the non-GAAP adjustments described below attributable to cost of subscription. These items and amounts are presented in the Supplemental Schedule of Non-GAAP Financial Measures.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure as detailed above. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release, and can be found, along with other financial information, in the investor relations portion of our website. PROS’ use of non-GAAP financial measures may not be consistent with the presentations by similar companies in PROS’ industry. PROS has also provided in this release certain forward-looking non-GAAP financial measures, including non-GAAP income (loss) from operations, annual recurring revenue, non-GAAP loss per share, adjusted EBITDA, free cash flow, non-GAAP tax rates, and calculated billings (collectively the “non-GAAP financial measures”) as follows:

Non-GAAP income (loss) from operations: Non-GAAP income (loss) from operations excludes the impact of share-based compensation, amortization of acquisition-related intangibles and new headquarters noncash rent expense. Non-GAAP income (loss) from operations excludes the following items from non-GAAP estimates:

  • Share-Based Compensation: Although share-based compensation is an important aspect of compensation for our employees and executives, our share-based compensation expense can vary because of changes in our stock price and market conditions at the time of grant, varying valuation methodologies, and the variety of award types. Since share-based compensation expense can vary for reasons that are generally unrelated to our performance during any particular period, we believe this could make it difficult for investors to compare our current financial results to previous and future periods. Therefore, we believe it is useful to exclude share-based compensation in order to better understand our business performance and allow investors to compare our operating results with peer companies.
  • Amortization of Acquisition-Related Intangibles: We view amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.
  • New Headquarters Noncash Rent Expense: Noncash rent expense is related to our new corporate headquarters and is incurred prior to occupation of this facility. These amounts are unrelated to our core performance during any particular period and we believe this could make it difficult for investors to compare our current financial results to previous and future periods. Therefore, we believe it is useful to exclude the noncash rent expense on the preoccupied new headquarters in order for investors to better understand our business performance and allow investors to compare our operating results with peer companies.

Non-GAAP loss per share: Non-GAAP net income (loss) excludes the items listed above as excluded from non-GAAP income (loss) from operations and also excludes amortization of debt discount and issuance costs and the taxes related to these items and the items excluded from non-GAAP income (loss) from operations. Estimates of non-GAAP loss per share are calculated by dividing estimates for non-GAAP loss by our estimate of shares outstanding for the future period. In addition to the items listed above as excluded from non-GAAP income (loss) from operations, non-GAAP net income (loss) excludes the following items from non-GAAP estimates:

  • Amortization of Debt Discount and Issuance Costs: Amortization of debt discount and issuance costs are related to our convertible notes. These amounts are unrelated to our core performance during any particular period, and therefore, we believe it is useful to exclude these amounts in order to better understand our business performance and allow investors to compare our results with peer companies.
  • Taxes: We exclude the tax consequences associated with non-GAAP items to provide investors with a useful comparison of our operating results to prior periods and to our peer companies because such amounts can vary significantly. In the fourth quarter of 2014, we concluded that it is more likely than not that we will be unable to fully realize our deferred tax assets and accordingly, established a valuation allowance against those assets. The ongoing impact of the valuation allowance on our non-GAAP effective tax rate has been eliminated to allow investors to better understand our business performance and compare our operating results with peer companies.

Annual Recurring Revenue: Annual Recurring Revenue (“ARR”) is used to assess the trajectory of our cloud business. ARR means, as of a specified date, the contracted recurring revenue, including contracts with a future start date, together with annualized overage fees incurred above contracted minimum transactions, and excluding perpetual and term license agreements recognized as license revenue in accordance with GAAP. ARR should be viewed independently of revenue and any other GAAP measure.

Non-GAAP Tax Rate: The estimated non-GAAP effective tax rate adjusts the tax effect to quantify the impact of the excluded non-GAAP items.

Adjusted EBITDA: Adjusted EBITDA is defined as GAAP net income (loss) before interest expense, provision for income taxes, depreciation and amortization, as adjusted to eliminate the effect of stock-based compensation cost, amortization of acquisition-related intangibles, depreciation and amortization, new headquarters noncash rent expense, and capitalized internal-use software development costs. Adjusted EBITDA should not be considered as an alternative to net income (loss) as an indicator of our operating performance.

Free Cash Flow: Free cash flow is a non-GAAP financial measure which is defined as net cash provided by (used in) operating activities, less capital expenditures (excluding expenditures for PROS new headquarters), purchases of other (non-acquisition-related) intangible assets and capitalized internal-use software development costs.

Calculated Billings: Calculated billings is defined as total subscription, maintenance and support revenue plus the change in recurring deferred revenue in a given period.

These non-GAAP estimates are not measurements of financial performance prepared in accordance with GAAP, and we are unable to reconcile these forward-looking non-GAAP financial measures to their directly comparable GAAP financial measures because the information described above which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.

 
 
 
 

PROS Holdings, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)

 

 

 

September 30, 2021

 

December 31, 2020

Assets:

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

308,642

 

 

$

329,134

 

Trade and other receivables, net of allowance of $1,043 and $4,122, respectively

 

43,125

 

 

49,578

 

Deferred costs, current

 

5,850

 

 

5,941

 

Prepaid and other current assets

 

10,513

 

 

9,647

 

Total current assets

 

368,130

 

 

394,300

 

Property and equipment, net

 

32,395

 

 

36,504

 

Operating lease right-of-use assets

 

25,926

 

 

30,689

 

Deferred costs, noncurrent

 

10,339

 

 

12,544

 

Intangibles, net

 

5,738

 

 

8,341

 

Goodwill

 

49,439

 

 

50,044

 

Other assets, noncurrent

 

9,053

 

 

7,549

 

Total assets

 

$

501,020

 

 

$

539,971

 

Liabilities and Stockholders’ Equity:

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable and other liabilities

 

$

4,998

 

 

$

4,246

 

Accrued liabilities

 

12,233

 

 

13,065

 

Accrued payroll and other employee benefits

 

25,741

 

 

25,514

 

Operating lease liabilities, current

 

6,286

 

 

5,937

 

Deferred revenue, current

 

99,300

 

 

99,156

 

Total current liabilities

 

148,558

 

 

147,918

 

Deferred revenue, noncurrent

 

6,464

 

 

11,372

 

Convertible debt, net, noncurrent

 

287,914

 

 

218,028

 

Operating lease liabilities, noncurrent

 

39,000

 

 

44,099

 

Other liabilities, noncurrent

 

1,150

 

 

1,517

 

Total liabilities

 

483,086

 

 

422,934

 

Stockholders' equity:

 

 

 

 

Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued

 

 

 

 

Common stock, $0.001 par value, 75,000,000 shares authorized; 49,072,852 and 48,142,267 shares issued, respectively; 44,392,129 and 43,461,544 shares outstanding, respectively

 

49

 

 

48

 

Additional paid-in capital

 

537,058

 

 

589,040

 

Treasury stock, 4,680,723 common shares, at cost

 

(29,847

)

 

(29,847

)

Accumulated deficit

 

(485,043

)

 

(438,773

)

Accumulated other comprehensive loss

 

(4,283

)

 

(3,431

)

Total stockholders’ equity

 

17,934

 

 

117,037

 

Total liabilities and stockholders’ equity

 

$

501,020

 

 

$

539,971

 

 
 
 
 

PROS Holdings, Inc.
Condensed Consolidated Statements of Income (Loss)
(In thousands, except per share data)
(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2021

 

2020

 

2021

 

2020

Revenue:

 

 

 

 

 

 

 

 

Subscription

 

$

44,119

 

 

$

42,029

 

 

$

130,991

 

 

$

127,576

 

Maintenance and support

 

8,477

 

 

10,765

 

 

26,721

 

 

35,029

 

Total subscription, maintenance and support

 

52,596

 

 

52,794

 

 

157,712

 

 

162,605

 

Services

 

10,075

 

 

8,714

 

 

28,738

 

 

28,961

 

Total revenue

 

62,671

 

 

61,508

 

 

186,450

 

 

191,566

 

Cost of revenue:

 

 

 

 

 

 

 

 

Subscription

 

13,122

 

 

12,897

 

 

40,512

 

 

38,153

 

Maintenance and support

 

2,044

 

 

2,177

 

 

6,459

 

 

7,577

 

Total cost of subscription, maintenance and support

 

15,166

 

 

15,074

 

 

46,971

 

 

45,730

 

Services

 

10,886

 

 

9,563

 

 

31,977

 

 

33,584

 

Total cost of revenue

 

26,052

 

 

24,637

 

 

78,948

 

 

79,314

 

Gross profit

 

36,619

 

 

36,871

 

 

107,502

 

 

112,252

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling and marketing

 

21,025

 

 

21,951

 

 

63,779

 

 

67,882

 

Research and development

 

19,022

 

 

19,135

 

 

59,575

 

 

56,668

 

General and administrative

 

12,380

 

 

11,948

 

 

36,852

 

 

40,356

 

Loss from operations

 

(15,808

)

 

(16,163

)

 

(52,704

)

 

(52,654

)

Convertible debt interest and amortization

 

(1,576

)

 

(2,498

)

 

(4,728

)

 

(6,645

)

Other (expense) income, net

 

(71

)

 

122

 

 

219

 

 

1,099

 

Loss before income tax provision

 

(17,455

)

 

(18,539

)

 

(57,213

)

 

(58,200

)

Income tax provision

 

70

 

 

318

 

 

387

 

 

600

 

Net loss

 

$

(17,525

)

 

$

(18,857

)

 

$

(57,600

)

 

$

(58,800

)

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.39

)

 

$

(0.44

)

 

$

(1.30

)

 

$

(1.36

)

Weighted average number of shares:

 

 

 

 

 

 

 

 

Basic and diluted

 

44,386

 

 

43,347

 

 

44,318

 

 

43,251

 

 
 
 
 
 

PROS Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2021

 

2020

 

2021

 

2020

Operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(17,525

)

 

$

(18,857

)

 

$

(57,600

)

 

$

(58,800

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

2,736

 

 

3,651

 

 

8,828

 

 

10,584

 

Amortization of debt discount and issuance costs

 

373

 

 

2,008

 

 

1,119

 

 

5,456

 

Share-based compensation

 

8,634

 

 

6,378

 

 

25,410

 

 

18,477

 

Provision for doubtful accounts

 

(388

)

 

263

 

 

(2,078

)

 

5,549

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts and unbilled receivables

 

(1,398

)

 

(13,700

)

 

8,521

 

 

(8,584

)

Deferred costs

 

887

 

 

717

 

 

2,296

 

 

2,343

 

Prepaid expenses and other assets

 

(698

)

 

(192

)

 

397

 

 

131

 

Operating lease right-of-use assets and liabilities

 

9

 

 

1,047

 

 

35

 

 

7,169

 

Accounts payable and other liabilities

 

(306

)

 

4,700

 

 

593

 

 

2,175

 

Accrued liabilities

 

(338

)

 

(4,877

)

 

(539

)

 

(11,500

)

Accrued payroll and other employee benefits

 

3,190

 

 

4,378

 

 

215

 

 

(10,601

)

Deferred revenue

 

(3,347

)

 

(402

)

 

(4,782

)

 

(24,240

)

Net cash used in operating activities

 

(8,171

)

 

(14,886

)

 

(17,585

)

 

(61,841

)

Investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

(347

)

 

(4,353

)

 

(2,432

)

 

(23,551

)

Capitalized internal-use software development costs

 

 

 

(459

)

 

 

 

(1,265

)

Purchase of equity securities

 

(2,169

)

 

(113

)

 

(2,670

)

 

(113

)

Net cash used in investing activities

 

(2,516

)

 

(4,925

)

 

(5,102

)

 

(24,929

)

Financing activities:

 

 

 

 

 

 

 

 

Proceeds from employee stock plans

 

1,515

 

 

1,460

 

 

3,111

 

 

2,824

 

Tax withholding related to net share settlement of stock awards

 

 

 

(113

)

 

(352

)

 

(20,334

)

Payments of notes payable

 

(288

)

 

 

 

(288

)

 

 

Proceeds from issuance of convertible debt, net

 

 

 

146,925

 

 

 

 

146,925

 

Debt issuance costs related to convertible debt

 

 

 

(675

)

 

 

 

(675

)

Purchase of capped call

 

 

 

(25,335

)

 

 

 

(25,335

)

Net cash provided by financing activities

 

1,227

 

 

122,262

 

 

2,471

 

 

103,405

 

Effect of foreign currency rates on cash

 

(224

)

 

(256

)

 

(276

)

 

(360

)

Net change in cash and cash equivalents

 

(9,684

)

 

102,195

 

 

(20,492

)

 

16,275

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Beginning of period

 

318,326

 

 

220,157

 

 

329,134

 

 

306,077

 

End of period

 

$

308,642

 

 

$

322,352

 

 

$

308,642

 

 

$

322,352

 

 
 
 
 
 

PROS Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)

 
We use these non-GAAP financial measures to assist in the management of the Company because we believe that this information provides a more consistent and complete understanding of the underlying results and trends of the ongoing business due to the uniqueness of these charges.

See breakdown of the reconciling line items on page 10.

 

 

 

Three Months Ended

September 30,

 

Quarter

over

Quarter

 

Nine Months Ended

September 30,

 

Year over

Year

 

 

2021

 

2020

 

% change

 

2021

 

2020

 

% change

GAAP gross profit

 

$

36,619

 

 

$

36,871

 

 

(1

)%

 

$

107,502

 

 

$

112,252

 

 

(4

)%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

New headquarters noncash rent expense

 

 

 

99

 

 

 

 

 

 

417

 

 

 

Amortization of acquisition-related intangibles

 

384

 

 

910

 

 

 

 

1,196

 

 

2,700

 

 

 

Share-based compensation

 

951

 

 

519

 

 

 

 

2,753

 

 

1,545

 

 

 

Non-GAAP gross profit

 

$

37,954

 

 

$

38,399

 

 

(1

)%

 

$

111,451

 

 

$

116,914

 

 

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP gross margin

 

60.6

%

 

62.4

%

 

 

 

59.8

%

 

61.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP loss from operations

 

$

(15,808

)

 

$

(16,163

)

 

(2

)%

 

$

(52,704

)

 

$

(52,654

)

 

%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

New headquarters noncash rent expense

 

 

 

370

 

 

 

 

 

 

1,479

 

 

 

Amortization of acquisition-related intangibles

 

845

 

 

1,386

 

 

 

 

2,597

 

 

4,144

 

 

 

Share-based compensation

 

8,634

 

 

6,378

 

 

 

 

25,410

 

 

18,477

 

 

 

Total Non-GAAP adjustments

 

9,479

 

 

8,134

 

 

 

 

28,007

 

 

24,100

 

 

 

Non-GAAP loss from operations

 

$

(6,329

)

 

$

(8,029

)

 

(21

)%

 

$

(24,697

)

 

$

(28,554

)

 

(14

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP loss from operations % of total revenue

 

(10.1

)%

 

(13.1

)%

 

 

 

(13.2

)%

 

(14.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(17,525

)

 

$

(18,857

)

 

(7

)%

 

$

(57,600

)

 

$

(58,800

)

 

(2

)%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Total Non-GAAP adjustments affecting loss from operations

 

9,479

 

 

8,134

 

 

 

 

28,007

 

 

24,100

 

 

 

Amortization of debt discount and issuance costs

 

373

 

 

1,998

 

 

 

 

1,119

 

 

5,426

 

 

 

Tax impact related to non-GAAP adjustments

 

1,744

 

 

2,168

 

 

 

 

6,569

 

 

6,908

 

 

 

Non-GAAP net loss

 

$

(5,929

)

 

$

(6,557

)

 

(10

)%

 

$

(21,905

)

 

$

(22,366

)

 

(2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted loss per share

 

$

(0.13

)

 

$

(0.15

)

 

 

 

$

(0.49

)

 

$

(0.52

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing non-GAAP loss per share

 

44,386

 

 

43,347

 

 

 

 

44,318

 

 

43,251

 

 

 

 
 
 
 
 

PROS Holdings, Inc.
Supplemental Schedule of Non-GAAP Financial Measures
Increase (Decrease) in GAAP Amounts Reported
(In thousands)
(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2021

 

2020

 

2021

 

2020

Cost of Subscription Items

 

 

 

 

 

 

 

 

New headquarters noncash rent expense

 

 

 

13

 

 

 

 

42

 

Amortization of acquisition-related intangibles

 

384

 

 

742

 

 

1,183

 

 

2,214

 

Share-based compensation

 

182

 

 

119

 

 

508

 

 

297

 

Total cost of subscription items

 

$

566

 

 

$

874

 

 

$

1,691

 

 

$

2,553

 

 

 

 

 

 

 

 

 

 

Cost of Maintenance Items

 

 

 

 

 

 

 

 

New headquarters noncash rent expense

 

 

 

13

 

 

 

 

64

 

Amortization of acquisition-related intangibles

 

 

 

168

 

 

13

 

 

486

 

Share-based compensation

 

131

 

 

50

 

 

362

 

 

178

 

Total cost of maintenance items

 

$

131

 

 

$

231

 

 

$

375

 

 

$

728

 

 

 

 

 

 

 

 

 

 

Cost of Services Items

 

 

 

 

 

 

 

 

New headquarters noncash rent expense

 

 

 

73

 

 

 

 

311

 

Share-based compensation

 

638

 

 

350

 

 

1,883

 

 

1,070

 

Total cost of services items

 

$

638

 

 

$

423

 

 

$

1,883

 

 

$

1,381

 

 

 

 

 

 

 

 

 

 

Sales and Marketing Items

 

 

 

 

 

 

 

 

New headquarters noncash rent expense

 

 

 

73

 

 

 

 

283

 

Amortization of acquisition-related intangibles

 

461

 

 

476

 

 

1,401

 

 

1,444

 

Share-based compensation

 

2,600

 

 

1,727

 

 

7,334

 

 

5,558

 

Total sales and marketing items

 

$

3,061

 

 

$

2,276

 

 

$

8,735

 

 

$

7,285

 

 

 

 

 

 

 

 

 

 

Research and Development Items

 

 

 

 

 

 

 

 

New headquarters noncash rent expense

 

 

 

133

 

 

 

 

517

 

Share-based compensation

 

1,924

 

 

1,539

 

 

5,867

 

 

4,414

 

Total research and development items

 

$

1,924

 

 

$

1,672

 

 

$

5,867

 

 

$

4,931

 

 

 

 

 

 

 

 

 

 

General and Administrative Items

 

 

 

 

 

 

 

 

New headquarters noncash rent expense

 

 

 

65

 

 

 

 

262

 

Share-based compensation

 

3,159

 

 

2,593

 

 

9,456

 

 

6,960

 

Total general and administrative items

 

$

3,159

 

 

$

2,658

 

 

$

9,456

 

 

$

7,222

 

 
 
 
 
 

PROS Holdings, Inc.
Supplemental Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands)
(Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2021

 

2020

 

2021

 

2020

Adjusted EBITDA

 

 

 

 

 

 

 

 

GAAP Loss from Operations

 

$

(15,808

)

 

$

(16,163

)

 

$

(52,704

)

 

$

(52,654

)

Amortization of acquisition-related intangibles

 

845

 

 

1,386

 

 

2,597

 

 

4,144

 

New headquarters noncash rent expense

 

 

 

370

 

 

 

 

1,479

 

Share-based compensation

 

8,634

 

 

6,378

 

 

25,410

 

 

18,477

 

Depreciation and other amortization

 

1,891

 

 

2,265

 

 

6,231

 

 

6,440

 

Capitalized internal-use software development costs

 

 

 

(459

)

 

 

 

(1,265

)

Adjusted EBITDA

 

$

(4,438

)

 

$

(6,223

)

 

$

(18,466

)

 

$

(23,379

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used in operating activities

 

$

(8,171

)

 

$

(14,886

)

 

$

(17,585

)

 

$

(61,841

)

Purchase of property and equipment (excluding new headquarters)

 

(347

)

 

(384

)

 

(1,291

)

 

(1,647

)

Capitalized internal-use software development costs

 

 

 

(459

)

 

 

 

(1,265

)

Free Cash Flow

 

$

(8,518

)

 

$

(15,729

)

 

$

(18,876

)

 

$

(64,753

)

 

 

 

 

 

 

 

 

 

Guidance

 

 

 

 

 

 

 

 

 

 

Q4 2021 Guidance

 

Full Year 2021 Guidance

 

 

Low

 

High

 

Low

 

High

Adjusted EBITDA

 

 

 

 

 

 

 

 

GAAP Loss from Operations

 

$

(21,900

)

 

$

(20,900

)

 

$

(74,500

)

 

$

(73,500

)

Amortization of acquisition-related intangibles

 

800

 

 

800

 

 

3,400

 

 

3,400

 

Share-based compensation

 

9,300

 

 

9,300

 

 

34,700

 

 

34,700

 

Depreciation and other amortization

 

1,800

 

 

1,800

 

 

8,100

 

 

8,100

 

Adjusted EBITDA

 

$

(10,000

)

 

$

(9,000

)

 

$

(28,300

)

 

$

(27,300

)

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211102006182/en/

CONTACT: Investor Contact:

PROS Investor Relations

Belinda Overdeput

713-335-5895

ir@pros.comMedia Contact:

Amy Sachrison

713-335-5141

asachrison@pros.com

KEYWORD: TEXAS UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: MOBILE/WIRELESS TECHNOLOGY SECURITY OTHER TECHNOLOGY SOFTWARE NETWORKS INTERNET DATA MANAGEMENT RETAIL ONLINE RETAIL

SOURCE: PROS Holdings, Inc.

Copyright Business Wire 2021.

PUB: 11/02/2021 04:15 PM/DISC: 11/02/2021 04:17 PM

http://www.businesswire.com/news/home/20211102006182/en