Attached files
| file | filename |
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| EX-99.3 - EX-99.3 - PROS Holdings, Inc. | irdeckq22020.htm |
| EX-99.1 - EX-99.1 - PROS Holdings, Inc. | a2020q2ex991prosearnin.htm |
| 8-K - 8-K - PROS Holdings, Inc. | pro-20200730.htm |
Our Vision To be the AI platform powering commerce INVESTOR RELATIONS FACT SHEET in the digital economy PROS Holdings, Inc. (NYSE: PRO) provides AI-powered solutions that optimize selling in the digital economy. PROS solutions bring intelligence to commerce by providing companies 2020 with predictive and prescriptive guidance that enables them to dynamically price, configure, Second Quarter and sell their products and services across all channels with speed, precision, and consistency. 2020 SECOND QUARTER EARNINGS Our customers, who are leaders in their markets, (Refer to Appendix for GAAP to Non-GAAP Reconciliation) benefit from decades of data science expertise infused into our industry solutions. Q2 Q2 LTM LT M $mm 2020 2019 Delta 6/30/20 6/30/19 Delta Total 63.7 63.9 - 260.4 221.7 17% Revenue Highly Visible Subscription 42.4 35.1 21% 164.8 120.0 37% Revenue SaaS Growth Model Adjusted (5.7) (1.8) (3.9) (24.0) (13.3) (10.7) EBITDA + Free (23.5) (5.2) (18.3) (35.1) (3.4) (31.7) $ mm Cash Flow TOTAL260 REVENUE LTM Market Opportunity With the rise of digital commerce, consumers have been trained to expect a more dynamic buying experience — they want the freedom to buy what % they want, whenever they desire, and expect to move seamlessly across 37SUBSCRIPTION REVENUE channels during the process. GROWTH LTM The need for PROS AI solutions is more acute than ever as companies grapple with how to meet the real-time needs of today’s consumer. Our algorithmic approach to generating personalized, dynamic offers, + prices, and experiences to buyers can be accessed across our customers’ % direct sales, online, mobile, and partner channels. This seamless 93GROSS REVENUE RETENTION experience is helping companies across industries rethink how they sell RATE IN 2019 in the digital economy. This market environment creates the backdrop for the $30 billion estimated TAM opportunity that we see in front of us. We focus our go-to-market efforts on a subset of strategic industries and geographies in which we % have a proven track record of success. We believe our market is highly 85Q2 RECURRING REVENUE AS underpenetrated and that we are well positioned to capture it. A % OF TOTAL REVENUE Copyright © 2020 PROS Holdings, Inc. pros.com | IR@pros.com 1
We Power Digital Commerce for Leading Businesses Across Strategic Industries Automotive & Industrial INVESTOR RELATIONS FACT SHEET B2B Services ANNUAL RECURRING REVENUE ($mm) Cargo, Freight, & Logistics Energy & Chemicals 22% CAGR $220 Food & Consumables $189 Healthcare Technology $161 Travel $122 PROS Solutions 2016 2017 2018 2019 Our AI solutions and science make it possible for companies to provide fast, frictionless and SUBSCRIPTION REVENUE ($MM) personalized buying experiences for their customers. The data science and AI embedded 43% CAGR $145 in our solutions provide our customers with predictive and prescriptive guidance on key $99 business decisions that drive improved growth and profitability, including offer optimization, product $66 mix optimization, demand forecasting, price $50 optimization, cross-sell and upsell recommendations, attrition detection, product configuration recommendations, and willingness to pay. 2016 2017 2018 2019 NOTE: Our software operates in large and complex As of 1/1/2020, license revenue and license cost of revenue are now combined information technology environments. with subscription revenue and subscription cost of revenue, respectively. Our high-performance software architecture supports real-time, high-volume transaction Globally Diversified processing and handles requirements of global Business enterprise customers who may need sub-second response times. We provide standardized configurations of our software based on the UNITED STATES EUROPE OTHER REGIONS 34% 30% 36% industries we serve and offer professional services of 2019 of 2019 of 2019 to configure innovative solutions to meet the revenue revenue revenue specific needs of each customer. Included in this Fact Sheet are forward-looking statements including, but not limited to, those related to total addressable market and other financial projections. These predictions, estimates, and other forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied in this Fact Sheet. We refer you to the documents we file with the Securities and Exchange Commission, which identify and discuss important factors that could cause actual results to differ materially from those discussed in these forward-looking statements. All statements included in these materials are based upon information known as of the date hereof, and PROS Holdings assumes no obligation to update any such statements, except as required by law. This Fact Sheet includes certain supplemental non-GAAP financial measures, that we believe are useful to investors as useful tools for assessing the comparability between periods as well as company by company. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, our financial information and results prepared in accordance with U.S. GAAP included in our periodic filings made with the SEC. Copyright © 2020 PROS Holdings, Inc. pros.com | IR@pros.com 2
INVESTOR RELATIONS FACT SHEET Appendix PROS Holdings, Inc. Supplemental Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 GAAP Loss from Operations $ (15,139) $ (12,145) $ (36,491) $ (25,755) Amortization of acquisition-related intangibles 1,375 1,425 2,758 3,008 New headquarters noncash rent expense 554 555 1,109 1,109 Debt extinguishment fees — 319 — 319 Share-based compensation 5,752 5,979 12,099 12,025 Depreciation and other amortization 2,138 2,079 4,175 3,821 Capitalized internal-use software development costs (394) — (806) (868) Adjusted EBITDA $ (5,714) $ (1,788) $ (17,156) $ (6,341) Net cash used in operating activities $ (22,782) $ (3,549) $ (46,955) $ (11,644) Purchase of property and equipment (excluding new headquarters) (306) (1,658) (1,263) (2,269) Purchase of intangible asset — — — (50) Capitalized internal-use software development costs (394) — (806) (868) Free Cash Flow $ (23,482) $ (5,207) $ (49,024) $ (14,831) Included in this Fact Sheet are forward-looking statements including, but not limited to, those related to total addressable market and other financial projections. These predictions, estimates, and other forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied in this Fact Sheet. We refer you to the documents we file with the Securities and Exchange Commission, which identify and discuss important factors that could cause actual results to differ materially from those discussed in these forward-looking statements. All statements included in these materials are based upon information known as of the date hereof, and PROS Holdings assumes no obligation to update any such statements, except as required by law. This Fact Sheet includes certain supplemental non-GAAP financial measures, that we believe are useful to investors as useful tools for assessing the comparability between periods as well as company by company. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, our financial information and results prepared in accordance with U.S. GAAP included in our periodic filings made with the SEC. Copyright © 2020 PROS Holdings, Inc. pros.com | IR@pros.com FS072020v01 3