[April 25, 2019] |
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PROS Holdings, Inc. Reports First Quarter 2019 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 first quarter ended March 31, 2019.
"I'm incredibly pleased with our strong start to 2019," stated CEO
Andres Reiner. "We are seeing a tailwind in our market as companies are
creating strategic initiatives around AI and digital transformation. Our
sales funnel is growing as companies are seeking out our AI solutions to
transform how they sell in the digital economy, and our strong market
momentum contributed to more than a 40% increase in year-over-year deal
volume. The strength of our people and product strategy has positioned
us exceptionally well to take advantage of the attractive market
opportunity in front of us."
First Quarter 2019 Financial Highlights
Key financial results for the first quarter 2019 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
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Non-GAAP
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Q1 2019
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Q1 2018
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Change
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Q1 2019
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Q1 2018
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Change
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Revenue:
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Total Revenue
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$56.1
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$47.9
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17%
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n/a
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n/a
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n/a
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Subscription Revenue
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$30.4
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$21.0
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45%
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n/a
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n/a
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n/a
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Subscription and Maintenance Revenue
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$45.7
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$37.5
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22%
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n/a
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n/a
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n/a
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Profitability:
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Gross Profit
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$35.3
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$28.4
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24%
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$37.1
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$30.1
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23%
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Operating Loss
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$(13.6)
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$(14.7)
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$1.1
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$(5.4)
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$(6.7)
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$1.3
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Net Loss
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$(16.9)
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$(18.9)
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$1.9
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$(4.2)
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$(6.0)
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$1.8
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Net Loss Per Share
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$(0.45)
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$(0.58)
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$0.13
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$(0.11)
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$(0.19)
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$0.08
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Adjusted EBITDA
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n/a
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n/a
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n/a
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$(4.6)
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$(6.7)
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$2.1
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Cash:
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Net Cash Used in Operating Activities
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$(8.1)
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$(4.7)
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$(3.4)
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n/a
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n/a
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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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n/a
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$(9.6)
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$(6.8)
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$(2.8)
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The attached tables provide a summary of PROS results for the period,
including a reconciliation of GAAP to non-GAAP metrics.
Recent Business Highlights
Financial Outlook
PROS anticipates the following based on an estimated 38.0 million basic
weighted average shares outstanding for the second quarter of 2019 and a
22% non-GAAP estimated tax rate for the second quarter and full year
2019:
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Q2 2019 Guidance
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v. Q2 2018 at Mid-Point
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Full Year 2019 Guidance
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v. Prior Year at Mid-Point
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Total Revenue
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$61.0 to $62.0
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30%
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$241.0 to $242.0
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23%
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Subscription Revenue
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$32.5 to $33.0
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49%
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$135.0 to $136.0
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42%
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ARR
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n/a
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n/a
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$219.0 to $221.0
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16%
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Non-GAAP Loss Per Share
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$(0.11) to $(0.09)
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$0.06
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n/a
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n/a
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Adjusted EBITDA
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$(4.0) to $(3.0)
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$1.9
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$(9.5) to $(8.5)
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$10.0
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Free Cash Flow
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n/a
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n/a
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$0.0 to $2.0
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$1.5
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Conference Call
In conjunction with this announcement, PROS Holdings, Inc. will host a
conference call on Thursday, April 25, 2019, 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, May 9, 2019, at
1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass
code 13688636.
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, including
statements about our future financial performance; positioning;
management's confidence and optimism; customer successes; demand for
enterprise sales, pricing, configure-price-quote, revenue management,
shopping and merchandising generally and our modern commerce software
solutions in particular; business expansion; business predictability;
ARR; 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) threats to the security of our or our
customer's data, (b) potential business or service disruptions from our
third party data centers, cloud platform providers or other unrelated
service providers, (c) evolving data privacy, cyber security and data
localization laws and regulations, (d) our ability to manage our cloud
operations, (e) our ability to migrate customers with on-premise
software licenses to our latest cloud solutions; (f) our ability to
return to profitability following our transition to a cloud strategy;
(g) the risk that the markets for our software do not grow as
anticipated, (h) the length of our sales cycles, (i) the risk that we
will not be able to maintain historical subscription, maintenance, and
support renewal rates, (j) competition from vendors of sales, pricing,
revenue management, shopping and merchandising, and
configure-price-quote solutions, (k) potential unauthorized or improper
actions of our personnel, (l) 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, (m) any downturn in sales to our target markets,
(n) potential delays or other challenges related to the implementation
of our solutions, (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 non-GAAP financial measures,
including non-GAAP income (loss) from operations, annual recurring
revenue, adjusted EBITDA, free cash flow, tax rate, net income (loss)
and diluted earnings (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.
PROS also presents certain information in "constant currency," which is
also a non-GAAP financial measure. Since PROS has operations outside of
the United States reporting in currencies other than the U.S. dollar,
the comparability of our operating results reported in U.S. Dollars is
affected by foreign currency exchange rate fluctuations because the
underlying currencies in which we transact change in value over time
compared to the U.S. Dollar. These fluctuations may have a significant
effect on our reported results. As such, this release contains
references to constant currency measures, which are calculated based on
currency rates set at the start of a year and held constant throughout
the year. Management believes this supplemental information is useful to
investors as a framework for facilitating period-to-period comparisons
of our business performance excluding the effects of foreign currency
exchange rate fluctuations.
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, 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, acquisition-related
expenses, amortization of debt discount and issuance costs, new
headquarters noncash rent expense and related taxes. Non-GAAP income
(loss) 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.
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Acquisition-Related Expenses: Acquisition-related expenses
include integration costs and other one-time direct costs associated
with our acquisitions. These amounts are unrelated to our core
performance during any particular period and are impacted by the
timing and size of the acquisitions. We exclude acquisition-related
expenses to provide investors a method to compare our operating
results to prior periods and to peer companies because such amounts
can vary significantly based on the frequency of acquisitions and
magnitude of acquisition expenses.
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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.
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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.
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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, 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, integration costs and other one-time
direct costs associated with our acquisitions, 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.
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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, 2019
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December 31, 2018
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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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272,636
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$
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295,476
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Trade and other receivables, net of allowance of $974 and $978,
respectively
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45,598
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41,822
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Deferred costs, current
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4,494
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4,089
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Prepaid and other current assets
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6,444
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4,756
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Total current assets
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329,172
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346,143
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Property and equipment, net
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15,922
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14,676
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Operating lease right-of-use assets
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25,003
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-
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Deferred costs, noncurrent
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13,861
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13,373
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Intangibles, net
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17,475
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19,354
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Goodwill
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38,028
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38,231
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Other assets, noncurrent
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5,530
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5,190
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Total assets
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$
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444,991
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$
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436,967
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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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$
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7,562
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$
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6,934
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Accrued liabilities
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12,352
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9,506
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Accrued payroll and other employee benefits
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10,746
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22,519
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Operating lease liabilities, current
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5,688
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-
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Deferred revenue, current
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112,439
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99,262
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Current portion of convertible debt, net
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138,442
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136,529
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Total current liabilities
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287,229
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274,750
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Deferred revenue, noncurrent
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16,352
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17,903
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Convertible debt, net, noncurrent
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89,854
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88,661
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Operating lease liabilities, noncurrent
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20,346
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-
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Other liabilities, noncurrent
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740
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754
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Total liabilities
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414,521
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382,068
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Stockholders' equity:
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Preferred stock, $0.001 par value, 5,000,000 shares authorized; none
issued
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-
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-
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Common stock, $0.001 par value, 75,000,000 shares authorized;
42,290,246
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and 41,573,491 shares issued, respectively; 37,872,661 and 37,155,906
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shares outstanding, respectively
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42
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42
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Additional paid-in capital
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357,635
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364,877
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Treasury stock, 4,417,585 common shares, at cost
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(13,938
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)
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(13,938
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)
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Accumulated deficit
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(309,625
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)
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(292,708
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)
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Accumulated other comprehensive loss
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(3,644
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)
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(3,374
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)
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Total stockholders' equity
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30,470
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|
|
|
54,899
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Total liabilities and stockholders' equity
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$
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444,991
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|
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$
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436,967
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PROS Holdings, Inc.
Condensed Consolidated Statements of Income (Loss)
(In thousands, except per share data)
(Unaudited)
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Three Months Ended March 31,
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2019
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2018
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Revenue:
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Subscription
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$
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30,415
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$
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20,950
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Maintenance and support
|
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15,327
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|
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16,574
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Total subscription, maintenance and support
|
|
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45,742
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37,524
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License
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|
506
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1,066
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Services
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9,883
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|
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9,320
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Total revenue
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56,131
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47,910
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Cost of revenue:
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Subscription
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9,725
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|
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8,764
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Maintenance and support
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2,802
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|
|
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2,957
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Total cost of subscription, maintenance and support
|
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12,527
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|
|
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11,721
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License
|
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|
61
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|
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73
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Services
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8,202
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7,727
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Total cost of revenue
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20,790
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19,521
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Gross profit
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35,341
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28,389
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Operating expenses:
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Selling and marketing
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21,485
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17,568
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General and administrative
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11,667
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10,689
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Research and development
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15,799
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14,784
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Acquisition-related
|
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-
|
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|
95
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Loss from operations
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(13,610
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)
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(14,747
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)
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Convertible debt interest and amortization
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|
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(4,356
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)
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(4,179
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)
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Other income, net
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|
|
1,271
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|
|
|
202
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Loss before income tax provision
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(16,695
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)
|
|
|
(18,724
|
)
|
Income tax provision
|
|
|
222
|
|
|
|
132
|
|
Net loss
|
|
|
$
|
(16,917
|
)
|
|
|
$
|
(18,856
|
)
|
|
|
|
|
|
|
|
Net loss per share:
|
|
|
|
|
|
|
Basic and diluted
|
|
|
$
|
(0.45
|
)
|
|
|
$
|
(0.58
|
)
|
Weighted average number of shares:
|
|
|
|
|
|
|
Basic and diluted
|
|
|
37,623
|
|
|
|
32,378
|
|
|
|
|
|
PROS Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2019
|
|
|
2018
|
Operating activities:
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(16,917
|
)
|
|
|
$
|
(18,856
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
3,325
|
|
|
|
3,364
|
|
Amortization of debt discount and issuance costs
|
|
|
3,116
|
|
|
|
2,941
|
|
Share-based compensation
|
|
|
6,046
|
|
|
|
5,936
|
|
Loss on disposal of assets
|
|
|
-
|
|
|
|
35
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts and unbilled receivables
|
|
|
(3,773
|
)
|
|
|
3,454
|
|
Deferred costs
|
|
|
(893
|
)
|
|
|
238
|
|
Prepaid expenses and other assets
|
|
|
(2,065
|
)
|
|
|
(1,575
|
)
|
Accounts payable and other liabilities
|
|
|
565
|
|
|
|
690
|
|
Accrued liabilities
|
|
|
2,634
|
|
|
|
(1,415
|
)
|
Accrued payroll and other employee benefits
|
|
|
(11,779
|
)
|
|
|
(8,181
|
)
|
Deferred revenue
|
|
|
11,646
|
|
|
|
8,637
|
|
Net cash used in operating activities
|
|
|
(8,095
|
)
|
|
|
(4,732
|
)
|
Investing activities:
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(611
|
)
|
|
|
(778
|
)
|
Capitalized internal-use software development costs
|
|
|
(868
|
)
|
|
|
(1,316
|
)
|
Purchase of intangible asset
|
|
|
(50
|
)
|
|
|
-
|
|
Net cash used in investing activities
|
|
|
(1,529
|
)
|
|
|
(2,094
|
)
|
Financing activities:
|
|
|
|
|
|
|
Exercise of stock options
|
|
|
-
|
|
|
|
875
|
|
Proceeds from employee stock plans
|
|
|
943
|
|
|
|
834
|
|
Tax withholding related to net share settlement of stock awards
|
|
|
(14,239
|
)
|
|
|
(7,255
|
)
|
Payments of notes payable
|
|
|
-
|
|
|
|
(58
|
)
|
Net cash used in financing activities
|
|
|
(13,296
|
)
|
|
|
(5,604
|
)
|
Effect of foreign currency rates on cash
|
|
|
80
|
|
|
|
71
|
|
Net change in cash and cash equivalents
|
|
|
(22,840
|
)
|
|
|
(12,359
|
)
|
Cash and cash equivalents:
|
|
|
|
|
|
|
Beginning of period
|
|
|
295,476
|
|
|
|
160,505
|
|
End of period
|
|
|
$
|
272,636
|
|
|
|
$
|
148,146
|
|
|
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 March 31,
|
|
|
Year over Year
|
|
|
|
2019
|
|
|
2018
|
|
|
% change
|
GAAP gross profit
|
|
|
$
|
35,341
|
|
|
|
$
|
28,389
|
|
|
|
24
|
%
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
New headquarters noncash rent expense
|
|
|
153
|
|
|
|
-
|
|
|
|
|
Amortization of acquisition-related intangibles
|
|
|
1,034
|
|
|
|
1,241
|
|
|
|
|
Share-based compensation
|
|
|
538
|
|
|
|
482
|
|
|
|
|
Non-GAAP gross profit
|
|
|
$
|
37,066
|
|
|
|
$
|
30,112
|
|
|
|
23
|
%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross margin
|
|
|
66.0
|
%
|
|
|
62.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from operations
|
|
|
$
|
(13,610
|
)
|
|
|
$
|
(14,747
|
)
|
|
|
(8
|
)%
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses
|
|
|
-
|
|
|
|
95
|
|
|
|
|
New headquarters noncash rent expense
|
|
|
554
|
|
|
|
-
|
|
|
|
|
Amortization of acquisition-related intangibles
|
|
|
1,583
|
|
|
|
2,015
|
|
|
|
|
Share-based compensation
|
|
|
6,046
|
|
|
|
5,936
|
|
|
|
|
Total Non-GAAP adjustments
|
|
|
8,183
|
|
|
|
8,046
|
|
|
|
|
Non-GAAP loss from operations
|
|
|
$
|
(5,427
|
)
|
|
|
$
|
(6,701
|
)
|
|
|
(19
|
)%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP loss from operations % of total revenue
|
|
|
(9.7
|
)%
|
|
|
(14.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
|
$
|
(16,917
|
)
|
|
|
$
|
(18,856
|
)
|
|
|
(10
|
)%
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
Total Non-GAAP adjustments affecting loss from operations
|
|
|
8,183
|
|
|
|
8,046
|
|
|
|
|
Amortization of debt discount and issuance costs
|
|
|
3,106
|
|
|
|
2,929
|
|
|
|
|
Tax impact related to non-GAAP adjustments
|
|
|
1,411
|
|
|
|
1,837
|
|
|
|
|
Non-GAAP net loss
|
|
|
$
|
(4,217
|
)
|
|
|
$
|
(6,044
|
)
|
|
|
(30
|
)%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted loss per share
|
|
|
$
|
(0.11
|
)
|
|
|
$
|
(0.19
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing non-GAAP loss per share
|
|
|
37,623
|
|
|
|
32,378
|
|
|
|
|
|
|
|
|
PROS Holdings, Inc.
Supplemental Schedule of Non-GAAP Financial Measures
Increase (Decrease) in GAAP Amounts Reported
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2019
|
|
|
2018
|
Cost of Subscription Items
|
|
|
|
|
|
|
New headquarters noncash rent expense
|
|
|
16
|
|
|
|
-
|
Amortization of acquisition-related intangibles
|
|
|
859
|
|
|
|
1,053
|
Share-based compensation
|
|
|
71
|
|
|
|
53
|
Total cost of subscription items
|
|
|
$
|
946
|
|
|
|
$
|
1,106
|
|
|
|
|
|
|
|
Cost of Maintenance Items
|
|
|
|
|
|
|
New headquarters noncash rent expense
|
|
|
28
|
|
|
|
-
|
Amortization of acquisition-related intangibles
|
|
|
164
|
|
|
|
177
|
Share-based compensation
|
|
|
60
|
|
|
|
78
|
Total cost of maintenance items
|
|
|
$
|
252
|
|
|
|
$
|
255
|
|
|
|
|
|
|
|
Cost of License Items
|
|
|
|
|
|
|
Amortization of acquisition-related intangibles
|
|
|
11
|
|
|
|
11
|
Total cost of license items
|
|
|
$
|
11
|
|
|
|
$
|
11
|
|
|
|
|
|
|
|
Cost of Services Items
|
|
|
|
|
|
|
New headquarters noncash rent expense
|
|
|
109
|
|
|
|
-
|
Share-based compensation
|
|
|
407
|
|
|
|
351
|
Total cost of services items
|
|
|
$
|
516
|
|
|
|
$
|
351
|
|
|
|
|
|
|
|
Sales and Marketing Items
|
|
|
|
|
|
|
New headquarters noncash rent expense
|
|
|
103
|
|
|
|
-
|
Amortization of acquisition-related intangibles
|
|
|
549
|
|
|
|
774
|
Share-based compensation
|
|
|
1,400
|
|
|
|
1,284
|
Total sales and marketing items
|
|
|
$
|
2,052
|
|
|
|
$
|
2,058
|
|
|
|
|
|
|
|
General and Administrative Items
|
|
|
|
|
|
|
New headquarters noncash rent expense
|
|
|
93
|
|
|
|
-
|
Share-based compensation
|
|
|
2,812
|
|
|
|
2,879
|
Total general and administrative items
|
|
|
$
|
2,905
|
|
|
|
$
|
2,879
|
|
|
|
|
|
|
|
Research and Development Items
|
|
|
|
|
|
|
New headquarters noncash rent expense
|
|
|
205
|
|
|
|
-
|
Share-based compensation
|
|
|
1,296
|
|
|
|
1,291
|
Total research and development items
|
|
|
$
|
1,501
|
|
|
|
$
|
1,291
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses
|
|
|
$
|
-
|
|
|
|
$
|
95
|
|
|
|
|
PROS Holdings, Inc.
Supplemental Reconciliation of GAAP to Non-GAAP Financial
Measures
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2019
|
|
|
2018
|
Adjusted EBITDA
|
|
|
|
|
|
|
GAAP Loss from Operations
|
|
|
$
|
(13,610
|
)
|
|
|
$
|
(14,747
|
)
|
Acquisition-related expenses
|
|
|
-
|
|
|
|
95
|
|
Amortization of acquisition-related intangibles
|
|
|
1,583
|
|
|
|
2,015
|
|
New headquarters noncash rent expense
|
|
|
554
|
|
|
|
-
|
|
Share-based compensation
|
|
|
6,046
|
|
|
|
5,936
|
|
Depreciation and other amortization
|
|
|
1,742
|
|
|
|
1,349
|
|
Capitalized internal-use software development costs
|
|
|
(868
|
)
|
|
|
(1,316
|
)
|
Adjusted EBITDA
|
|
|
$
|
(4,553
|
)
|
|
|
$
|
(6,668
|
)
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
$
|
(8,095
|
)
|
|
|
$
|
(4,732
|
)
|
Purchase of property and equipment
|
|
|
(611
|
)
|
|
|
(778
|
)
|
Purchase of intangible asset
|
|
|
(50
|
)
|
|
|
-
|
|
Capitalized internal-use software development costs
|
|
|
(868
|
)
|
|
|
(1,316
|
)
|
Free Cash Flow
|
|
|
$
|
(9,624
|
)
|
|
|
$
|
(6,826
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guidance
|
|
|
Q2 2019 Guidance
|
|
|
|
Low
|
|
|
High
|
Adjusted EBITDA
|
|
|
|
|
|
|
GAAP Loss from Operations
|
|
|
$
|
(13,600
|
)
|
|
|
$
|
(12,600
|
)
|
Amortization of acquisition-related intangibles
|
|
|
1,600
|
|
|
|
1,600
|
|
New headquarters noncash rent expense
|
|
|
600
|
|
|
|
600
|
|
Share-based compensation
|
|
|
6,000
|
|
|
|
6,000
|
|
Depreciation and other amortization
|
|
|
1,500
|
|
|
|
1,500
|
|
Capitalized internal-use software development costs
|
|
|
(100
|
)
|
|
|
(100
|
)
|
Adjusted EBITDA
|
|
|
$
|
(4,000
|
)
|
|
|
$
|
(3,000
|
)
|
|
|
|
|
|
|
|
|
|
|
Full Year 2019 Guidance
|
|
|
|
Low
|
|
|
High
|
Adjusted EBITDA
|
|
|
|
|
|
|
GAAP Loss from Operations
|
|
|
$
|
(47,100
|
)
|
|
|
$
|
(46,100
|
)
|
Amortization of acquisition-related intangibles
|
|
|
5,700
|
|
|
|
5,700
|
|
New headquarters noncash rent expense
|
|
|
2,000
|
|
|
|
2,000
|
|
Share-based compensation
|
|
|
24,000
|
|
|
|
24,000
|
|
Depreciation and other amortization
|
|
|
7,000
|
|
|
|
7,000
|
|
Capitalized internal-use software development costs
|
|
|
(1,100
|
)
|
|
|
(1,100
|
)
|
Adjusted EBITDA
|
|
|
$
|
(9,500
|
)
|
|
|
$
|
(8,500
|
)
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190425005831/en/
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