EX-99.2 3 a2019q4ex992prosfactshee.htm EXHIBIT 99.2
Investor Relations Fact Sheet Q4 2019 PROS Holdings, Inc. (NYSE: PRO) provides AI powered solutions that optimize commerce in the digital economy. PROS solutions bring intelligence to commerce by providing companies with predictive and prescriptive guidance that enables them to dynamically price, configure and sell their products and services across all channels with speed, precision and consistency. Our customers, who are leaders in their markets, benefit from decades of data science expertise infused into our industry solutions. To learn more, visit www.pros.com. Market Opportunity FY 2019 and Q4 2019 Earnings Recap (Refer to Appendix for GAAP to Non-GAAP reconciliation) With the rise of digital commerce, consumers YoY YoY have been trained to expect a more dynamic $mm Q4 2019 Q4 2018 FY 2019 FY 2018 buying experience - they want to buy what they Change Change want, when they want, and they want to be able to move seamlessly across channels. Total Revenue $66.2 $52.6 26% $250.3 $197.0 27% Subscription The need for PROS AI solutions is more acute $40.2 $28.3 42% $141.2 $95.2 48% than ever as companies grapple with how to Revenue meet the real-time needs of today’s consumer. Adjusted $(4.6) $(2.0) $(2.6) $(13.2) $(19.0) $5.9 Our algorithmic approach to generating EBITDA personalized, dynamic offers, prices and experiences that buyers can access across our Free Cash Flow $11.0 $14.1 $(3.1) $(0.9) $(0.5) $(0.4) customers’ direct sales, online, mobile and partner channels, is helping companies across industries rethink how they sell in the digital Efficient Expansion economy. Recurring Compounded by This market environment creates the backdrop for Revenue Growth Margin Improvement the $30 billion estimated TAM that we see in front of us. We focus our go-to-market efforts on a subset of strategic industries and geographies in which we have a proven track record of 550+ bps success, which narrows our target market to $9 25% billion. These strategic industries are automotive Improvement in YoY Increase non-GAAP Subscription and industrial; B2B services; cargo, freight and in Recurring Gross Margin logistics; chemicals and energy; food and Revenue FY 2019 vs FY 2018 consumables; healthcare; technology and travel. FY 2019 vs. FY 2018 (734 bps improvement in GAAP Subscription GM) We believe that our market is highly underpenetrated and that we are well positioned to capture it. Our vision is to be the leading AI platform powering commerce in the digital economy across all the industries that we serve Copyright © 2020 | PROS Holdings, Inc. | 3100 Main Street, Suite 900, Houston, TX 77002 | www.pros.com

Investor Relations Fact Sheet Q4 2019 Transition to the Cloud We embarked upon a “cloud first” strategy in May 2015 and % %+ rapidly transformed how we create, sell and deliver our AI 48 93 2019 Subscription 2019 Customer Gross solutions. Today, we are a SaaS business. In 2019, 99% Revenue YoY Growth Revenue Retention Rate of our total bookings were cloud, which led us to increase our recurring revenue as a percent of total revenue from 54% in 2015 to 80% in 2019. Annual Recurring Revenue $ + ~1.7T 30B 22% CAGR Transactions processed Total Estimated in n2019 Addressable Market 220 189 161 122 % 80 $ 250MM+ 2019 Recurring Revenue 2019 as a % of Total Revenue Total Revenue PROS AI Solutions 2016 2017 2018 2019 Our AI solutions make it possible for companies to provide fast, frictionless and personalized buying experiences for their customers. The data science and AI embedded in our solutions Subscription Revenue provide our customers with predictive and prescriptive guidance on key business decisions that drive improved growth and 48% CAGR 141 profitability, including offer optimization, product mix optimization, demand forecasting, price optimization, product configuration recommendations, cross-sell and upsell recommendations, 95 attrition detection and willingness to pay. Our software operates in large and complex information 61 technology environments. Our high-performance software 38 architecture supports real-time, high-volume transaction processing and handles requirements of global enterprise customers who may need sub-second response times. We provide standardized configurations of our software based on the 2016 2017 2018 2019 industries we serve and offer professional services to configure these solutions to meet the specific needs of each customer. Included in this Fact Sheet are forward-looking statements including, but not limited to, those related to total addressable market and other financial projections. These predictions, estimates, and other forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied in this Fact Sheet. We refer you to the documents we file with the Securities and Exchange Commission, which identify and discuss important factors that could cause actual results to differ materially from those discussed in these forward-looking statements. All statements included in these materials are based upon information known as of the date hereof, and PROS Holdings assumes no obligation to update any such statements, except as required by law. This Fact Sheet includes certain supplemental non-GAAP financial measures, that we believe are useful to investors as useful tools for assessing the comparability between periods as well as company by company. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, our financial information and results prepared in accordance with U.S. GAAP included in our periodic filings made with the SEC. Copyright © 2020 | PROS Holdings, Inc. | 3100 Main Street, Suite 900, Houston, TX 77002 | www.pros.com

Investor Relations Fact Sheet Q4 2019 APPENDIX PROS Holdings, Inc. Supplemental Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands) (Unaudited) Three Months Ended December 31, Year Ended December 31, 2019 2018 2019 2018 Adjusted EBITDA GAAP Loss from Operations $ (15,071) $ (9,609) $ (53,338) $ (49,215) Acquisition-related expenses 254 — 502 95 Amortization of acquisition-related intangibles 1,398 1,694 5,831 7,396 New headquarters noncash rent expense 555 185 2,218 185 Debt extinguishment fees — — 319 — Share-based compensation 6,446 5,098 24,680 21,453 Depreciation and other amortization 2,208 1,576 8,039 5,659 Capitalized internal-use software development costs (415) (927) (1,436) (4,613) Adjusted EBITDA $ (4,625) $ (1,983) $ (13,185) $ (19,040) Free Cash Flow Net cash provided by operating activities $ 12,852 $ 15,188 $ 5,245 $ 5,703 Purchase of property and equipment (excluding new headquarters) (1,481) (69) (4,626) (1,475) Purchase of intangible asset — (125) (50) (125) Capitalized internal-use software development costs (415) (927) (1,436) (4,613) Free Cash Flow $ 10,956 $ 14,067 $ (867) $ (510) Copyright © 2020 | PROS Holdings, Inc. | 3100 Main Street, Suite 900, Houston, TX 77002 | www.pros.com