The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PROS Holdings beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins dropped, net margins expanded.
PROS Holdings logged revenue of $26.2 million. The seven analysts polled by S&P Capital IQ expected to see sales of $25.9 million. GAAP sales were 30% higher than the prior-year quarter's $20.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.11. The six earnings estimates compiled by S&P Capital IQ predicted $0.09 per share on the same basis. GAAP EPS of $0.08 for Q4 were 167% higher than the prior-year quarter's $0.03 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 72.4%, 1,450 basis points worse than the prior-year quarter. Operating margin was 10.3%, 1,200 basis points worse than the prior-year quarter. Net margin was 8.1%, 500 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $26.8 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $115.0 million. The average EPS estimate is $0.43.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 140 members out of 162 rating the stock outperform, and 22 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give PROS Holdings a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PROS Holdings is buy, with an average price target of $19.67.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not PROS Holdings makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add PROS Holdings to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.