Tech firm PROS Holdings beats Q2 Adjusted EPS estimates

Overview

• PROS Q2 subscription rev grows 12% yr/yr to $73.3 mln

• Adjusted EPS for Q2 beats analyst expectations, per LSEG data

• Co raises full-year outlook for subscription revenue and ARR

Outlook

• PROS Holdings raises full-year subscription revenue outlook to $295.5 to $297.5 mln

• Company expects full-year subscription ARR between $310.0 mln and $313.0 mln

• PROS Holdings forecasts Q3 total revenue of $90.5 to $91.5 mln

• Company anticipates full-year adjusted EBITDA between $42 mln and $44 mln

Result Drivers

• SUBSCRIPTION REVENUE - Subscription revenue increased 12% yr/yr to $73.3 mln, driving overall revenue growth

• GROSS MARGIN EXPANSION - Subscription gross margin expanded by more than 50 basis points yr/yr, achieving a non-GAAP margin of 80%

• CUSTOMER EXPANSION - Welcomed new customers and expanded platform adoption among existing clients, indicating strong demand for AI-powered solutions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Pros Holdings Inc is $25.00, about 36.6% above its July 30 closing price of $15.84

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: