PROS Holdings Beats on Both Top and Bottom Lines

PROS Holdings (NYSE: PRO  ) reported earnings on Feb. 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PROS Holdings beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.

Margins dropped across the board.

Revenue details
PROS Holdings notched revenue of $32.7 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $31.7 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $26.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.11. The seven earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. GAAP EPS of $0.05 for Q4 were 38% lower than the prior-year quarter's $0.08 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 70.4%, 200 basis points worse than the prior-year quarter. Operating margin was 6.9%, 340 basis points worse than the prior-year quarter. Net margin was 4.4%, 370 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $32.1 million. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $137.8 million. The average EPS estimate is $0.48.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 129 members out of 149 rating the stock outperform, and 20 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give PROS Holdings a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PROS Holdings is outperform, with an average price target of $21.50.

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