Q2 2024 Pros Holdings Inc Earnings Call Transcript
Key Points
- Pros Holdings Inc (PRO) exceeded the high end of their guidance ranges across all metrics for Q2 2024.
- Subscription revenue grew by 14% year-over-year, and total revenue increased by 8%.
- The company achieved a significant milestone with an 80% non-GAAP subscription gross margin.
- Adjusted EBITDA improved by 554% year-to-date, and free cash flow improved by 112% year-over-year.
- The company continues to see strong expansion activity, with notable customer wins and expansions, including partnerships with top global companies like BASF and Hertz.
- Pros Holdings Inc (PRO) is cautious about their Travel business, expecting travel bookings to be down year-over-year due to operational cost and supply chain challenges faced by airlines.
- Services revenue was down 3% year-over-year, slightly below expectations due to a higher portion of subscription bookings related to expansions.
- The company has revised its full-year guidance, anticipating lower services revenue and a slight impact on total revenue due to lower attached service revenue from expansions.
- The macroeconomic environment remains challenging, making it difficult to get deals through, particularly in the Travel sector.
- The company has pushed its Rule of 40 goal from 2026 to 2027 due to current conditions in the airline space, which will likely delay achieving this goal by approximately one year.
Greetings. Welcome to the PROS Holdings second-quarter 2024 earnings conference call. (Operator Instructions)
As a reminder, this conference is being recorded. I would now like to turn the conference call over to Belinda Overdeput, Senior Director of Investor Relations.
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 participation questions once available. With me on today's call is Andres Reiner, President & 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
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