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 ( PRO ) 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 ( PRO ) 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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $0.13 $0.06 (8

Adjusted Analysts

EPS )

Q2 EPS -$0.1

Q2 79.0%

Subscrip

tion

Gross

Margin

Q2 80.0%

Subscrip

tion

Adjusted

Gross

Margin

Q2 $73.30

Subscrip mln

tion

Revenue

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 ( PRO ) 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:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)