PRO Earnings Prediction
The chart below shows how PRO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PRO sees a -0.88% change in stock price 10 days leading up to the earnings, and a +2.17% change 10 days following the report. On the earnings day itself, the stock moves by +0.12%. This data can give you a slight idea of what to expect for the next quarter's release.
PRO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
82.70M
7.06%
0.84%
Gross Margin
65.78%
4.16%
1.42%
Operating Margin
0.04%
100.40%
-100.46%
Net Margin
0.28%
101.56%
-103.11%
EPS
0.00
-100.00%
-100.00%
No Data Available
PRO Earnings Analysis
Pros Holdings, Inc. Corporation (PRO.N) Earnings Conference Call
Positive
Subscription Revenue Surge: 1. Strong Subscription Revenue Growth: PROS Holdings reported a 12% year-over-year increase in subscription revenue for Q3 2024, totaling $67.1 million, exceeding guidance expectations.
Adjusted EBITDA Surge: 2. Significant Adjusted EBITDA Improvement: The company achieved adjusted EBITDA of $9.3 million in Q3 2024, representing a 65% year-over-year increase and exceeding guidance.
Free Cash Flow Improvement: 3. Free Cash Flow Surge: PROS generated free cash flow of $1.4 million in Q3 2024, leading to a year-to-date total of $2.6 million, marking a remarkable 217% improvement year-over-year.
Non-GAAP Subscription Margin Improvement: 4. High Non-GAAP Subscription Margin: The non-GAAP subscription margin reached 80% in Q3 2024, an improvement of over 190 basis points year-over-year, reflecting enhanced operational efficiency.
Customer Loyalty and Satisfaction: 5. Strong Customer Retention: The trailing 12-month gross revenue retention rate remained robust at 93% or better, indicating strong customer loyalty and satisfaction.
Negative
Travel Sector Weakness: 1. Weak Travel Sector Performance: The company acknowledged that the travel industry is experiencing a weak demand environment, which has not significantly improved compared to previous quarters, impacting overall growth expectations.
Professional Services Disconnect: 2. Stagnant Professional Services Growth: Professional services growth has been lower than subscription growth, indicating a disconnect in revenue streams, which is expected to continue into 2025 as the company focuses on simplifying implementations.
Subscription ARR Caution: 3. Cautious Guidance on Subscription ARR: Despite raising subscription revenue guidance, the company held back on subscription ARR guidance due to ongoing uncertainties in the travel sector and geopolitical tensions, indicating potential risks ahead.
M&A Strategy Outlook: 4. Limited M&A Activity: The company expressed that while they remain open to M&A opportunities, they do not need to pursue acquisitions to achieve growth projections, suggesting a lack of aggressive expansion plans.
Travel IT Investment Lag: 5. Operational Challenges in Travel IT Spending: The company noted that the pace of investment in travel IT is lagging, with airlines still not fully committing to spending, which could hinder future revenue growth in that segment.
PRO FAQs
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PRO Earning Call Sentiment
PROS Holdings, Inc. (PRO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
PRO.N
-1.44%Positive
The earnings call summary shows strong financial performance with significant improvements in revenue, EBITDA, and cash flow. The guidance is optimistic, especially with raised subscription revenue and EBITDA projections. Although there are risks like geopolitical uncertainties and competitive pressures, the company's strategic initiatives and AI-driven efficiencies are promising. The Q&A section reflects confidence in the business outlook, despite some management evasiveness. Overall, the strong financial metrics and optimistic guidance suggest a positive stock price movement.
