Please ensure Javascript is enabled for purposes of website accessibility

Why Pros Holdings Shares Jumped Today

By Evan Niu, CFA - Updated Apr 26, 2019 at 11:21AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The e-commerce software maker delivered a beat and raise.

What happened

Shares of Pros Holdings (PRO 3.88%) have jumped today, up by 12% as of 10:50 a.m. EDT, after the e-commerce software specialist reported first-quarter earnings results. Both top- and bottom-line figures topped analysts' expectations.

So what

Revenue in the first quarter increased 17% to $56.1 million, ahead of the $54.7 million in sales that analysts were modeling for. That all led to a non-GAAP net loss of $4.2 million, or $0.11 per share. The consensus estimate had called for an adjusted loss of $0.14 per share. Subscription revenue grew 45% to $30.4 million, with non-GAAP subscription gross margin expanding by 7.5 percentage points to 71%.

Rising blue and orange stock chart

Image source: Getty Images.

"I'm incredibly pleased with our strong start to 2019," CEO Andres Reiner said in a statement. He continued:

We are seeing a tailwind in our market as companies are creating strategic initiatives around AI and digital transformation. Our sales funnel is growing as companies are seeking out our AI solutions to transform how they sell in the digital economy, and our strong market momentum contributed to more than a 40% increase in year-over-year deal volume. The strength of our people and product strategy has positioned us exceptionally well to take advantage of the attractive market opportunity in front us.

Now what

In addition to better-than-expected results in the first quarter, Pros also issued upbeat guidance for the second quarter and raised its outlook for the year.

Total revenue in the second quarter is expected to be $61 million to $62 million, compared to the Street's forecast of $56.3 million in sales. Within total revenue, subscription revenue should be $32.5 million to $33 million. Non-GAAP loss per share is expected to be $0.09 to $0.11, with adjusted EBITDA of negative $3 million to negative $4 million.

For the full year, revenue is forecast at $241 million to $242 million, up from prior guidance issued in February of $231 million to $233 million. Subscription revenue for 2019 is now expected to be $135 million to $136 million, up from $130 million to $131 million.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

PROS Holdings Stock Quote
PROS Holdings
$27.28 (3.88%) $1.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.