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Press Release: PROS Holdings, Inc. Reports Fourth Quarter and Full Year 2020 Financial Results

· 02/04/2021 16:15
Q1 2021 Guidance v. Q1 2020 at Mid-Point ------------------- ----------------------- Total Revenue $59.7 to $60.7 (9)% Subscription Revenue $42.0 to $42.5 (2)% Non-GAAP Loss Per Share $(0.29) to $(0.27) $(0.05) Adjusted EBITDA $(13.0) to $(12.0) $(1.1)-- Designated as a 2020-2021 Great Place to Work-Certified(TM) company in recognition of PROS commitment to fostering a workplace culture that creates meaningful experiences for employees and impactful leadership. -- Expanded our partnership with SAP with the launch of PROS B2B pricing solutions on the SAP App Center, providing the SAP ecosystem with dynamic pricing capabilities that accelerate digital and omnichannel selling. -- Ranked as the top small-to-mid cap company in RBC Capital Markets' ESG Software Scorecard in recognition of the quantity and quality of our environmental, social, and governance (ESG) disclosures and practices. -- Named Gold winner in the 2020 Best in Biz Awards for Sales Software Enterprise Product of the Year for PROS Smart CPQ in recognition of our market-leading digital selling technology. -- Appointed Martin Simoncic as Chief Customer Officer and Sherry Lautenbach as Senior Vice President of Global B2B Sales to drive end-to-end customer engagement and continued market adoption of PROS digital selling solutions. -- Welcomed new customers that are adopting our digital selling technology such as Breeze Airways, Carrier, Nippon Gases, among others.GAAP Non-GAAP ------------------------- ------------------------- Q4 2020 Q4 2019 Change Q4 2020 Q4 2019 Change ------- ------- ------- ------- ------- ------- Revenue: Total Revenue $60.9 $66.2 (8)% n/a n/a n/a Subscription Revenue $42.9 $40.7 5% n/a n/a n/a Subscription and Maintenance Revenue $52.6 $54.1 (3)% n/a n/a n/a Profitability: Gross Profit $35.5 $37.8 (6)% $37.0 $39.4 (6)% Operating Loss $(13.4) $(15.1) $1.6 $(6.1) $(6.4) $0.3 Net Loss $(18.2) $(17.3) $(0.9) $(5.9) $(4.7) $(1.2) Net Loss Per Share $(0.42) $(0.41) $(0.01) $(0.14) $(0.11) $(0.03) Adjusted EBITDA n/a n/a n/a $(4.2) $(4.6) $0.5 Cash: Net Cash Provided by Operating Activities $12.5 $12.9 $(0.4) n/a n/a n/a Free Cash Flow n/a n/a n/a $11.4 $11.0 $0.5 GAAP Non-GAAP ------------------------- ------------------------- FY 2020 FY 2019 Change FY 2020 FY 2019 Change ------- ------- ------- ------- ------- ------- Revenue: Total Revenue $252.4 $250.3 1% n/a n/a n/a Subscription Revenue $170.5 $145.3 17% n/a n/a n/a Subscription and Maintenance Revenue $215.2 $203.5 6% n/a n/a n/a Annual Recurring Revenue ("ARR") n/a n/a n/a $209.7 $219.8 (5)% Profitability: Gross Profit $147.8 $151.2 (2)% $153.9 $157.8 (2)% Operating Loss $(66.1) $(53.3) $(12.7) $(34.7) $(19.8) $(14.9) Net Loss $(77.0) $(69.1) $(7.9) $(28.3) $(14.2) $(14.1) Net Loss Per Share $(1.78) $(1.72) $(0.06) $(0.65) $(0.35) $(0.30) Adjusted EBITDA n/a n/a n/a $(27.6) $(13.2) $(14.4) Cash: Net Cash (Used In) Provided by Operating Activities $(49.4) $5.2 $(71.7) n/a n/a n/a Free Cash Flow n/a n/a n/a $(53.3) $(0.9) $(52.5)-- Subscription revenue of $170.5 million for the full year 2020, up 17% year-over-year. -- Full year recurring revenue as a percentage of total revenue of 85%, up more than 350 basis points year-over-year. HOUSTON--(BUSINESS WIRE)--February 04, 2021--

PROS Holdings, Inc. Reports Fourth Quarter and Full Year 2020 Financial Results

PROS Holdings, Inc. (NYSE: PRO), a provider of AI-powered solutions that optimize selling in the digital economy, today announced financial results for the fourth quarter and full year ended December 31, 2020.

"I'm incredibly proud of our global team who helped grow our business and delivered a record number of customer go-lives during this challenging year," stated CEO Andres Reiner. "We've been innovating on our platform to ensure companies are prepared for the shift to digital selling. Industry analysts expect that by 2025, 80% of B2B sales interactions will occur in digital channels, and we're well-positioned to capture the large market opportunity in front of us."

Fourth Quarter and Full Year 2020 Financial Highlights

Key financial results for the fourth quarter and full year 2020 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.

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

Recent Business Highlights

Financial Outlook

PROS currently anticipates the following based on an estimated 44.2 million basic weighted average shares outstanding and a 22% non-GAAP estimated tax rate for the first quarter ending March 31, 2021.

Conference Call

In conjunction with this announcement, PROS Holdings, Inc. will host a conference call on Thursday, February 4, 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 Thursday, February 18, 2021, at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13714219.

About PROS

PROS Holdings, Inc. (NYSE: PRO) provides AI solutions that power commerce in the digital economy. PROS solutions bring intelligence to commerce by providing companies with predictive and prescriptive guidance that enables them to dynamically price, configure and sell their products and services across all channels with speed, precision and consistency. 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 timeframe for recovery of the travel industry, (b) cybersecurity, (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

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February 04, 2021 16:15 ET (21:15 GMT)