The 10-second takeaway
For the quarter ended March 31 (Q1), PROS Holdings beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew.
Gross margins dropped, operating margins contracted, net margins grew.
PROS Holdings reported revenue of $33.6 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $33.0 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $27.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The six earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. Non-GAAP EPS of $0.15 for Q1 were 50% higher than the prior-year quarter's $0.10 per share. GAAP EPS of $0.06 for Q1 were 50% higher than the prior-year quarter's $0.04 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 68.6%, 210 basis points worse than the prior-year quarter. Operating margin was 2.0%, 600 basis points worse than the prior-year quarter. Net margin was 5.2%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $34.6 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $144.2 million. The average EPS estimate is $0.50.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 131 members out of 152 rating the stock outperform, and 21 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 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 $26.25.
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