Q1 2024 Pros Holdings Inc Earnings Call Transcript
Key Points
- Subscription revenue increased by 15% year over year, and total revenue grew by 10%, both exceeding guidance ranges.
- Adjusted EBITDA improved nearly 300% year over year, reflecting strong operational efficiency and focus on profitability.
- Non-GAAP subscription gross margin improved by over 140 basis points year over year, contributing to an overall non-GAAP gross margin increase of 315 basis points.
- Strong customer wins and expansions across various industries, including new customers like Air India and expansions with companies like Hyatt and Air Baltic.
- Successful launch of PROS copilot for sales plug-in in partnership with Microsoft, enhancing the PROS platform's integration and functionality.
- Calculated billings in the first quarter increased only 3% year over year, showing modest growth.
- Expectation of flat services revenue in Q2 due to outsized growth in the same quarter of the previous year, impacting total revenue growth rate.
- Free cash flow burn in the first quarter was $4.9 million, roughly in line with the previous year, indicating ongoing cash burn.
- Guidance for Q2 adjusted EBITDA shows only a slight improvement year over year, suggesting modest profitability growth.
- Concerns about the back-end loaded nature of the fiscal year, with stronger performance expected in the latter half, which may introduce variability and uncertainty in financial performance.
Greetings and welcome to the PROS Holdings first-quarter 2024 earnings conference call. (Operator Instructions)
As a reminder, this conference is being recorded. I would now like to turn the conference over to Belinda Overdeput, Head of Investor Relations. Please go ahead.
Thank you, operator. Good afternoon, everyone, and thank you for joining us. Our earnings press release, SEC filings and a replay of today's call can be found on the Investor Relations section of our website at PROS.com. Our prepared remarks are also available on our website and will be replaced by the official transcript, which includes participant questions once available.
With me on today's call is Andres Reiner, President and Chief Executive Officer; and Stefan Schulz, Chief Financial Officer. Please note that some of the commentary today will include forward-looking statements, including without limitation, those about our strategy, future business prospects and market opportunities and our financial
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