[May 03, 2016] |
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PROS Holdings, Inc. Reports First Quarter 2016 Financial Results
PROS Holdings, Inc. (NYSE: PRO), a revenue and profit realization
company, today announced financial results for the first quarter ended
March 31, 2016.
CEO Andres Reiner stated, "We are off to a strong start in 2016, and
pleased that bookings, ARR, and free cash flow all came in above our
guidance and expectations. We are thrilled to help more customers
outperform as we continue to drive our transformation to the cloud and
deliver market-leading innovation. We are excited to see our strategic
vision unfold, and the unique value we are delivering puts us in a
strong position to capitalize on our large market opportunity."
First Quarter 2016 Financial Highlights
Key financial results for the fiscal first quarter 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 to the prior year period.
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GAAP
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Non-GAAP
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Q1 2016
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Q1 2015
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% Change
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Q1 2016
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Q1 2015
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% Change
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Revenue and Bookings:
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Annual Recurring Revenue ("ARR")
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n/a
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n/a
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n/a
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$
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103.2
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$
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84.9
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22
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%
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Annual Contract Value ("ACV") bookings
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n/a
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n/a
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n/a
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7.3
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4.1
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76
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%
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Revenue
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37.9
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43.7
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(13
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)%
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37.9
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44.8
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(15
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)%
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Subscription Revenue
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8.2
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7.3
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12
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%
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8.2
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7.4
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11
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%
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Profitability:
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Operating Loss
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(18.0
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)
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(11.7
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)
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nm
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(11.8
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)
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(3.1
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)
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nm
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Net Loss
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(20.5
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)
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(14.2
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)
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nm
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(8.1
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(2.6
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nm
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Net Loss Per Share
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(0.68
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)
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(0.48
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)
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nm
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(0.27
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(0.09
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nm
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Adjusted EBITDA
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n/a
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n/a
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n/a
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(10.1
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)
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(1.9
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)
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nm
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Cash:
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Free Cash Flow
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n/a
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n/a
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n/a
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(6.3
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(2.7
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nm
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Recent Business Highlights
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Grew attendance more than 40% at PROS Outperform conferences in the Americas
and Europe,
where guests heard from customers, partners and experts from
Accenture, AXA Assistance, Cargill DSO, Emirates, McCain Foods,
McKesson Medical-Surgical, St. Gobain, SWISS, and Toyota Material
Handling Europe, among others.
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Continued to drive differentiation and value to customers through
partnerships with CRM providers. Showcased PROS cloud solutions for
Microsoft Dynamics CRM at Microsoft
Envision, highlighting innovations that accelerate sales through
prescriptive guidance delivered in the Microsoft Azure cloud and
powered by Microsoft Cortana Intelligence Suite. For Salesforce.com
customers, introduced innovations on prescriptive guidance for
contract renewals and achieved Lightning Ready designation for PROS
Smart CPQ solution.
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Named a winner of the prestigious CRM
Watchlist Award for the third consecutive year in recognition of
the impact PROS is making with customers.
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Opened office in Australia
as PROS continues to expand business in the region.
The attached tables provide a summary of PROS results for the period,
including a reconciliation of GAAP to non-GAAP revenue, gross profit,
income (loss) from operations, and net income (loss), as well as
earnings (loss) per share.
Financial Outlook
PROS anticipates the following for the second quarter and full year
2016, based on an estimated 30.3 million and 30.4 million basic weighted
average shares outstanding, respectively, and a 36% non-GAAP estimated
tax rate:
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Q2 2016 Guidance
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v. Q2 2015 at Mid-Point
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Full Year 2016 Guidance
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v. Prior Year at Mid-Point
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ARR
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n/a
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n/a
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$117 to $119
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20%
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ACV Bookings
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$5 to $7
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(7%)
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$25 to $27
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21%
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Total Revenue
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$35 to $36
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(17%)
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$150 to $153
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(12)%
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Subscription Revenue
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$8.5 to $8.7
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25%
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$34 to $36
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20%
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Non-GAAP Loss Per Share
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$(0.34) to $(0.32)
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n/a
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n/a
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n/a
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Adjusted EBITDA
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$(13) to $(12)
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n/a
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$(46) to $(44)
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n/a
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Free Cash Flow
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n/a
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n/a
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$(37) to $(35)
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n/a
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Conference Call
In conjunction with this announcement, PROS Holdings, Inc. will host a
conference call on Tuesday, May 3, 2016, at 4:45 p.m. (EDT) to discuss
the company's financial results and business outlook. To access this
call, dial 888-430-8705 (toll-free) or 719-325-2458, and enter pass code
9421990. The live webcast of the conference call can be accessed under
the "Investor Relations" section of the Company's website at www.pros.com.
Following the call, an archived webcast will be available in the
"Investor Relations" section of the Company's website at www.pros.com.
A telephone replay will be available until Tuesday, May 10, 2016, at
877-870-5176 (toll-free) or 858-384-5517 using the pass code 9421990. An
archived webcast of this conference call will also be available in the
"Investor Relations" section of the Company's website at www.pros.com.
About PROS
PROS Holdings, Inc. (NYSE: PRO) is a revenue and profit realization
company that helps customers realize their potential through the blend
of simplicity and data science. PROS offers solutions to help accelerate
sales, formulate winning pricing strategies and align product, demand
and availability. PROS revenue and profit realization solutions are
designed to allow customers to experience meaningful revenue growth,
sustained profitability and modernized business processes. To learn
more, visit www.pros.com.
Forward-looking Statements
This press release contains forward-looking statements, including
statements about our future financial performance; positioning;
management's confidence and optimism; customer successes; demand for
enterprise revenue and profit realization software solutions; business
expansion; business predictability; ARR; ACV bookings; revenue; 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 risks related
to: (a) our ability to execute on our cloud-first strategy, (b) reduced
revenue and cash flow resulting from our transition to a cloud-first
strategy, (c) threats to the security of our or our customer's data, (d)
potential business or service disruptions from our third party data
centers, cloud platform providers or other unrelated service providers,
(e) market acceptance of our new products and product enhancements, (f)
the risk that the markets for our software does not grow as anticipated,
(g) the length of our sales cycles, (h) the risk that we will not be
able to maintain historical maintenance, support and subscription
renewal rates, (i) competition from vendors of sales, pricing, revenue
management and configure-price-quote solutions as well as from companies
internally developing their own solutions, (j) potential unauthorized or
improper actions of our personnel, (k) the risk that acquisitions we
have and may enter into in the future may be difficult to integrate,
fail to achieve our objectives, disrupt our business, dilute stockholder
value or divert management attention, (l) any downturn in sales to our
target markets, (m) potential delays or other challenges related to the
implementation of our solutions, (n) the difficulties of making accurate
estimates necessary to complete a project and recognize revenue, (o)
personnel risks associated with growing a business generally, (p) the
impact that a slowdown in the world or any particular economy has on our
business sales cycles, prospects' and customers' spending decisions,
timing of implementation decisions, payment and renewal decision, (q)
our debt repayment obligations, (r) the impact of currency fluctuations
on our results of operations, and (s) civil and political unrest in
geographic regions in which we operate. Additional information relating
to the uncertainty affecting PROS' business is contained in our filings
with the Securities and Exchange Commission. These forward-looking
statements represent PROS' expectations as of the date of this press
release. 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 financial information that has
not been prepared in accordance with GAAP. This information includes
non-GAAP (loss) income from operations, annual recurring revenue, annual
contract value bookings, total contract value bookings, adjusted EBITDA
margin, amortization of convertible debt discount and debt issue costs,
tax rate, net income and diluted earnings 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-first transition.
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 revenue, non-GAAP (loss) income from
operations, annual recurring revenue, total contract value bookings,
annual contract value bookings, and non-GAAP tax rates (collectively the
"non-GAAP financial measures") as follows:
Non-GAAP revenue: Business combination accounting principles
under GAAP require us to recognize the fair value of software
subscription, maintenance and professional services contracts assumed in
our acquisitions of SignalDemand, Inc. and Cameleon Software SA. A
portion of these software subscription and professional services are
deferred and typically recognized over the term of the software
subscription contract, so our GAAP revenues during the term of the
contract after the acquisition do not reflect the full amount of
revenues that would have been reported if the acquired deferred software
subscription and professional services revenues were not written down to
fair value. The revenue for maintenance is deferred and typically
recognized over a one-year period, so our GAAP revenues for the one-year
period after the acquisition do not reflect the full amount of revenues
that would have been reported if the acquired deferred maintenance
revenue was not written down to fair value. The non-GAAP revenue
adjustments eliminate the effect of the deferred revenue write-down and
include the costs associated with the revenue adjustment. We believe
these adjustments to the revenue from these contracts and to the
associated costs are useful to investors as an additional means to
reflect revenue trends of our business.
Non-GAAP income from operations: Non-GAAP (loss) income from
operations includes the non-GAAP revenue discussed above and also
excludes the impact of stock-based compensation, amortization of
acquisition-related intangibles, amortization of debt discount and
issuance costs, recovery of bankruptcy claims, severance, as well as the
tax consequences associated with stock-based compensation costs arising
from our acquisitions. Non-GAAP (loss) income from operations excludes
the following items from non-GAAP estimates:
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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.
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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.
-
Amortization of Debt Discount and Issuance Costs: Amortization
of debt discount and issuance costs are related to our Senior Notes
due 2019. 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.
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Impairment of Internal-Use Software: We review the software
that has been capitalized for impairment when events or changes in
circumstances indicate the software might be impaired. From time to
time, we may determine that an impairment is required under GAAP.
Since the impairment of internal-use software 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 any such impairments in
order to better understand our business performance and allow
investors to compare our operating results with peer companies.
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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 which includes both
subscription and maintenance contracts, and excludes perpetual license,
term license and service agreements, that are current and contracted
with a future start date. ARR should be viewed independently of revenue
and any other GAAP measure.
Annual Contract Value Bookings: Annual Contract Value ("ACV")
bookings are comprised of the estimated annual value of our Total
Contract Value ("TCV") bookings. ACV bookings are comprised of annual
maintenance and subscriptions, one seventh of the license TCV, and
excludes services and subscription renewals. ACV should be viewed
independently of revenue and any other GAAP measure. TCV bookings are
comprised of the total value of new customer contracts closed during a
specified period, excluding maintenance in excess of one year, and
including license, maintenance, services, term license and subscription
renewals, that we believe to be firm commitments to provide our software
solutions and related services. Bookings by their nature are
significantly based on estimates and judgments that we make regarding
total contract values, and our bookings growth projections are not meant
as a substitute measure for revenue in accordance with GAAP. We believe
our bookings growth projection is useful to investors as an additional
means to evaluate our business performance.
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 (loss)
income before interest expense, provision for income taxes, depreciation
and amortization, as adjusted to eliminate the effect of the deferred
revenue write-down from our acquisitions of SignalDemand, Inc. and
Cameleon Software SA, tax consequences associated with the stock-based
compensation costs arising from our acquisitions, amortization of
acquisition-related intangibles, depreciation and amortization,
impairment of internal-use software and capitalized internal-use
software development costs. Adjusted EBITDA should not be considered as
an alternative to net (loss) income 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 operating activities, less
additions to property, plant and equipment and capitalized internal-use
software development costs.
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.
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PROS Holdings, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)
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March 31, 2016
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December 31, 2015
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Assets:
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Current assets:
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Cash and cash equivalents
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$
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118,700
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$
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161,770
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Short-term investments
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34,951
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2,500
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Accounts and unbilled receivables, net of allowance of $490 and
$586, respectively
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37,985
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39,115
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Prepaid and other current assets
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6,203
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7,540
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Total current assets
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197,839
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210,925
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Property and equipment, net
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15,278
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15,777
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Intangibles, net
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13,714
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|
14,191
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Goodwill
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20,847
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20,445
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Other long-term assets
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2,705
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1,873
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Total assets
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$
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250,383
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$
|
263,211
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Liabilities and Stockholders' Equity:
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Current liabilities:
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Accounts payable and other liabilities
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$
|
6,679
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|
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$
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8,273
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Accrued liabilities
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|
|
5,360
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|
4,333
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Accrued payroll and other employee benefits
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|
|
9,847
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|
|
13,084
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Deferred revenue
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|
|
69,755
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|
|
|
60,664
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Total current liabilities
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|
91,641
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|
|
|
86,354
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Long-term deferred revenue
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|
|
3,621
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|
|
|
4,665
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Convertible debt, net
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|
|
117,428
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|
|
|
115,860
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|
Other long-term liabilities
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|
|
938
|
|
|
|
918
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|
Total liabilities
|
|
|
213,628
|
|
|
|
207,797
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|
Stockholders' equity:
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 5,000,000 shares authorized; none
issued
|
|
|
-
|
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|
-
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Common stock, $0.001 par value, 75,000,000 shares authorized;
34,737,801 and 34,156,561 shares issued, respectively; 30,320,216
and 29,738,976 shares outstanding, respectively
|
|
|
35
|
|
|
|
34
|
|
Additional paid-in capital
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|
|
159,730
|
|
|
|
158,674
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|
Treasury stock, 4,417,585 common shares, at cost
|
|
|
(13,938
|
)
|
|
|
(13,938
|
)
|
Accumulated deficit
|
|
|
(105,511
|
)
|
|
|
(85,034
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)
|
Accumulated other comprehensive loss
|
|
|
(3,561
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)
|
|
|
(4,322
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)
|
Total stockholders' equity
|
|
|
36,755
|
|
|
|
55,414
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|
Total liabilities and stockholders' equity
|
|
|
$
|
250,383
|
|
|
|
$
|
263,211
|
|
|
|
|
|
PROS Holdings, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(In thousands, except per share data)
(Unaudited)
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Three Months Ended March 31,
|
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2016
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|
2015
|
Revenue:
|
|
|
|
|
|
License
|
|
|
$
|
3,302
|
|
|
$
|
11,192
|
|
Services
|
|
|
9,763
|
|
|
9,631
|
|
Subscription
|
|
|
8,201
|
|
|
7,300
|
|
Total license, services and subscription
|
|
|
21,266
|
|
|
28,123
|
|
Maintenance and support
|
|
|
16,662
|
|
|
15,556
|
|
Total revenue
|
|
|
37,928
|
|
|
43,679
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|
Cost of revenue:
|
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|
|
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License
|
|
|
62
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|
|
50
|
|
Services
|
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|
8,931
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|
|
8,939
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|
Subscription
|
|
|
3,446
|
|
|
3,075
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|
Total license, services and subscription
|
|
|
12,439
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|
|
12,064
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|
Maintenance and support
|
|
|
3,272
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|
|
2,937
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|
Total cost of revenue
|
|
|
15,711
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|
|
15,001
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Gross profit
|
|
|
22,217
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|
|
28,678
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|
Operating expenses:
|
|
|
|
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Selling and marketing
|
|
|
18,018
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|
|
18,193
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|
General and administrative
|
|
|
9,041
|
|
|
10,598
|
|
Research and development
|
|
|
13,132
|
|
|
11,610
|
|
Loss from operations
|
|
|
(17,974
|
)
|
|
(11,723
|
)
|
Convertible debt interest and amortization
|
|
|
(2,287
|
)
|
|
(2,185
|
)
|
Other expense, net
|
|
|
(58
|
)
|
|
(212
|
)
|
Loss before income tax provision
|
|
|
(20,319
|
)
|
|
(14,120
|
)
|
Income tax provision
|
|
|
158
|
|
|
110
|
|
Net loss
|
|
|
(20,477
|
)
|
|
(14,230
|
)
|
Net loss per share:
|
|
|
|
|
|
Basic and diluted
|
|
|
$
|
(0.68
|
)
|
|
$
|
(0.48
|
)
|
Weighted average number of shares:
|
|
|
|
|
|
Basic and diluted
|
|
|
30,226
|
|
|
29,375
|
|
|
|
|
|
PROS Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2016
|
|
2015
|
Operating activities:
|
|
|
|
|
|
Net loss
|
|
|
$
|
(20,477
|
)
|
|
$
|
(14,230
|
)
|
Adjustments to reconcile net loss to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
2,465
|
|
|
2,395
|
|
Amortization of debt discount and issuance costs
|
|
|
1,568
|
|
|
1,466
|
|
Share-based compensation
|
|
|
5,384
|
|
|
7,745
|
|
Deferred income tax, net
|
|
|
27
|
|
|
-
|
|
Provision for doubtful accounts
|
|
|
(96
|
)
|
|
(154
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts and unbilled receivables
|
|
|
1,257
|
|
|
13,065
|
|
Prepaid expenses and other assets
|
|
|
458
|
|
|
754
|
|
Accounts payable and other liabilities
|
|
|
801
|
|
|
(1,918
|
)
|
Accrued liabilities
|
|
|
1,034
|
|
|
474
|
|
Accrued payroll and other employee benefits
|
|
|
(3,203
|
)
|
|
(9,304
|
)
|
Deferred revenue
|
|
|
8,018
|
|
|
(1,727
|
)
|
Net cash used in operating activities
|
|
|
(2,764
|
)
|
|
(1,434
|
)
|
Investing activities:
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(3,522
|
)
|
|
(1,110
|
)
|
Capitalized internal-use software development costs
|
|
|
-
|
|
|
(118
|
)
|
Purchases of short-term investments
|
|
|
(34,946
|
)
|
|
(12,487
|
)
|
Proceeds from maturities of short-term investments
|
|
|
2,500
|
|
|
-
|
|
Net cash used in investing activities
|
|
|
(35,968
|
)
|
|
(13,715
|
)
|
Financing activities:
|
|
|
|
|
|
Exercise of stock options
|
|
|
-
|
|
|
256
|
|
Proceeds from employee stock plans
|
|
|
470
|
|
|
382
|
|
Tax withholding related to net share settlement of stock awards
|
|
|
(4,797
|
)
|
|
(4,319
|
)
|
Payments of notes payable
|
|
|
(38
|
)
|
|
(107
|
)
|
Debt issuance costs related to convertible debt
|
|
|
-
|
|
|
(408
|
)
|
Net cash used in financing activities
|
|
|
(4,365
|
)
|
|
(4,196
|
)
|
Effect of foreign currency rates on cash
|
|
|
27
|
|
|
(14
|
)
|
Net change in cash and cash equivalents
|
|
|
(43,070
|
)
|
|
(19,359
|
)
|
Cash and cash equivalents:
|
|
|
|
|
|
Beginning of period
|
|
|
161,770
|
|
|
161,019
|
|
End of period
|
|
|
$
|
118,700
|
|
|
$
|
141,660
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
Quarter over Quarter
|
|
|
|
2016
|
|
2015
|
|
% change
|
GAAP revenue
|
|
|
$
|
37,928
|
|
|
$
|
43,679
|
|
|
(13
|
)%
|
Non-GAAP adjustment:
|
|
|
|
|
|
|
|
Acquisition-related deferred revenue write-down
|
|
|
|
-
|
|
|
$
|
1,164
|
|
|
|
Non-GAAP revenue
|
|
|
$
|
37,928
|
|
|
$
|
44,843
|
|
|
(15
|
)%
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
|
$
|
22,217
|
|
|
$
|
28,678
|
|
|
(23
|
)%
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
Acquisition-related deferred revenue write-down, net of cost of
revenue
|
|
|
|
-
|
|
|
|
421
|
|
|
|
Amortization of intangible assets
|
|
|
|
491
|
|
|
|
557
|
|
|
|
Share-based compensation
|
|
|
|
599
|
|
|
|
1,013
|
|
|
|
Non-GAAP gross profit
|
|
|
$
|
23,307
|
|
|
$
|
30,669
|
|
|
(24
|
)%
|
|
|
|
|
|
|
|
|
Non-GAAP gross margin
|
|
|
|
61.5
|
%
|
|
|
68.4
|
%
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from operations
|
|
|
$
|
(17,974
|
)
|
|
$
|
(11,723
|
)
|
|
53
|
%
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
Acquisition-related deferred revenue write-down, net of cost of
revenue
|
|
|
|
-
|
|
|
|
421
|
|
|
|
Amortization of intangible assets
|
|
|
|
785
|
|
|
|
1,100
|
|
|
|
Accretion expense for acquisition-related contingent consideration
|
|
|
|
-
|
|
|
|
11
|
|
|
|
Recovery of bankruptcy claim
|
|
|
|
-
|
|
|
|
(626
|
)
|
|
|
Share-based compensation
|
|
|
|
5,384
|
|
|
|
7,745
|
|
|
|
Total Non-GAAP adjustments
|
|
|
$
|
6,169
|
|
|
$
|
8,651
|
|
|
|
Non-GAAP loss from operations
|
|
|
$
|
(11,805
|
)
|
|
$
|
(3,072
|
)
|
|
284
|
%
|
|
|
|
|
|
|
|
|
Non-GAAP loss from operations % of total revenue
|
|
|
|
(31.1
|
)%
|
|
|
(6.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
|
$
|
(20,477
|
)
|
|
$
|
(14,230
|
)
|
|
44
|
%
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
Total Non-GAAP adjustments affecting loss from operations
|
|
|
|
6,169
|
|
|
|
8,651
|
|
|
|
Amortization of debt discount and issuance costs
|
|
|
|
1,568
|
|
|
|
1,466
|
|
|
|
Tax impact related to non-GAAP adjustments
|
|
|
|
4,688
|
|
|
|
1,534
|
|
|
|
Non-GAAP net loss
|
|
|
$
|
(8,052
|
)
|
|
$
|
(2,579
|
)
|
|
212
|
%
|
|
|
|
|
|
|
|
|
Non-GAAP diluted loss per share
|
|
|
$
|
(0.27
|
)
|
|
$
|
(0.09
|
)
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing non-GAAP loss per share
|
|
|
|
30,226
|
|
|
|
29,375
|
|
|
|
|
PROS Holdings, Inc.
Supplemental Schedule of Non-GAAP Financial Measures
Increase (Decrease) in GAAP Amounts Reported
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
Revenue Items
|
|
|
|
|
|
|
|
|
Acquisition-related deferred revenue write-down - service revenue
|
|
|
|
-
|
|
|
|
|
1,045
|
|
Acquisition-related deferred revenue write-down - subscription
revenue
|
|
|
|
-
|
|
|
|
|
95
|
|
Acquisition-related deferred revenue write-down - maintenance revenue
|
|
|
|
-
|
|
|
|
|
24
|
|
Total revenue items
|
|
|
|
$
|
-
|
|
|
|
|
$
|
1,164
|
|
|
|
|
|
|
|
|
|
|
Cost of License Items
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
10
|
|
|
|
|
10
|
|
Total cost of license items
|
|
|
|
$
|
10
|
|
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
|
Cost of Services Items
|
|
|
|
|
|
|
|
|
Acquisition-related deferred cost write-down
|
|
|
|
-
|
|
|
|
|
(743
|
)
|
Share-based compensation
|
|
|
|
471
|
|
|
|
|
867
|
|
Total cost of services items
|
|
|
|
$
|
471
|
|
|
|
|
$
|
124
|
|
|
|
|
|
|
|
|
|
|
Cost of Subscription Items
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
322
|
|
|
|
|
384
|
|
Share-based compensation
|
|
|
|
51
|
|
|
|
|
80
|
|
Total cost of subscription items
|
|
|
|
$
|
373
|
|
|
|
|
$
|
464
|
|
|
|
|
|
|
|
|
|
|
Cost of Maintenance Items
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
159
|
|
|
|
|
163
|
|
Share-based compensation
|
|
|
|
77
|
|
|
|
|
66
|
|
Total cost of maintenance items
|
|
|
|
$
|
236
|
|
|
|
|
$
|
229
|
|
|
|
|
|
|
|
|
|
|
Sales and Marketing Items
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
288
|
|
|
|
|
458
|
|
Share-based compensation
|
|
|
|
1,780
|
|
|
|
|
2,032
|
|
Total sales and marketing items
|
|
|
|
$
|
2,068
|
|
|
|
|
$
|
2,490
|
|
|
|
|
|
|
|
|
|
|
General and Administrative Items
|
|
|
|
|
|
|
|
|
Accretion expense for acquisition-related contingent consideration
|
|
|
|
-
|
|
|
|
|
11
|
|
Amortization of intangible assets
|
|
|
|
6
|
|
|
|
|
85
|
|
Recovery of bankruptcy claim
|
|
|
|
-
|
|
|
|
|
(626
|
)
|
Share-based compensation
|
|
|
|
1,730
|
|
|
|
|
3,348
|
|
Total general and administrative items
|
|
|
|
$
|
1,736
|
|
|
|
|
$
|
2,818
|
|
|
|
|
|
|
|
|
|
|
Research and Development Items
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
|
|
1,275
|
|
|
|
|
1,352
|
|
Total research and development items
|
|
|
|
$
|
1,275
|
|
|
|
|
$
|
1,352
|
|
|
|
|
|
|
PROS Holdings, Inc.
Supplemental Reconciliation of GAAP to Non-GAAP Financial
Measures
(In thousands)
(Unaudited)
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
GAAP Loss from Operations
|
|
|
|
$
|
(17,974
|
)
|
|
|
|
$
|
(11,723
|
)
|
Acquisition-related deferred revenue write-down, net of cost of
revenue
|
|
|
|
-
|
|
|
|
|
421
|
|
Amortization of intangible assets
|
|
|
|
785
|
|
|
|
|
1,100
|
|
Accretion expense for acquisition-related contingent consideration
|
|
|
|
-
|
|
|
|
|
11
|
|
Recovery of bankruptcy claim
|
|
|
|
-
|
|
|
|
|
(626
|
)
|
Share-based compensation
|
|
|
|
5,384
|
|
|
|
|
7,745
|
|
Depreciation
|
|
|
|
1,680
|
|
|
|
|
1,295
|
|
Capitalized internal-use software development costs
|
|
|
|
-
|
|
|
|
|
(118
|
)
|
Adjusted EBITDA
|
|
|
|
$
|
(10,125
|
)
|
|
|
|
$
|
(1,895
|
)
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
|
$
|
(2,764
|
)
|
|
|
|
$
|
(1,434
|
)
|
Purchase of property and equipment
|
|
|
|
(3,522
|
)
|
|
|
|
(1,110
|
)
|
Capitalized internal-use software development costs
|
|
|
|
-
|
|
|
|
|
(118
|
)
|
Free Cash Flow
|
|
|
|
$
|
(6,286
|
)
|
|
|
|
$
|
(2,662
|
)
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160503006831/en/
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