PROS Holdings, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable improvements in revenue and profitability compared to the same periods in 2023. The company generated total revenue of $82.7 million for the third quarter, a 7% increase from $77.3 million in the prior year. For the nine months, revenue rose 8% to $245.4 million from $226.2 million. Subscription revenue, a key component of the business, increased by 12% in Q3 and 14% year-to-date, reflecting strong demand for the company's AI-driven solutions.
Gross profit for the third quarter was $54.4 million, up 12% from $48.8 million in Q3 2023, while gross profit for the nine months increased by 14% to $159.5 million. The gross profit margin for subscriptions improved to 78% for both the third quarter and the nine months, compared to 76% and 75% in the respective periods of 2023. The company achieved net income of $235,000 for the third quarter, a significant turnaround from a net loss of $13.9 million in Q3 2023. However, for the nine months, PROS reported a net loss of $18.5 million, an improvement from a loss of $46.2 million in the same period last year.
The company’s total assets decreased to $384.2 million as of September 30, 2024, down from $421.8 million at the end of 2023. Current assets also fell to $204.0 million from $234.7 million, while current liabilities decreased to $159.8 million from $197.3 million. This resulted in an improved stockholders' deficit equity of $(75.2 million) compared to $(77.9 million) at the end of 2023.
Cash and cash equivalents at the end of the reporting period were $140.6 million, down from $168.7 million at the end of 2023, primarily due to the repayment of $21.7 million related to maturing 2024 Notes. The company reported net cash provided by operating activities of $3.4 million for the nine months, a positive shift from cash used in operations of $4.0 million in the prior year.
Strategically, PROS Holdings has focused on enhancing its AI-driven solutions, which are increasingly in demand as businesses seek to optimize their sales and marketing efforts. The company has also seen a recovery in the travel industry, which is expected to drive further growth in its customer base. The company continues to manage its expenses effectively, with a decrease in selling and marketing costs attributed to lower employee-related expenses.
About PROS Holdings, Inc.
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