2018 Q1 Form 10-Q Financial Statement

#000139297218000094 Filed on May 01, 2018

View on sec.gov

Income Statement

Concept 2018 Q1 2017 Q1
Revenue $47.91M $40.13M
YoY Change 19.39% 5.8%
Cost Of Revenue $19.52M $16.61M
YoY Change 17.53% 5.72%
Gross Profit $28.39M $23.52M
YoY Change 20.7% 5.86%
Gross Profit Margin 59.25% 58.61%
Selling, General & Admin $28.26M $26.88M
YoY Change 5.12% -0.66%
% of Gross Profit 99.54% 114.29%
Research & Development $14.78M $14.31M
YoY Change 3.33% 8.95%
% of Gross Profit 52.08% 60.83%
Depreciation & Amortization $3.364M $2.033M
YoY Change 65.47% -17.53%
% of Gross Profit 11.85% 8.64%
Operating Expenses $43.04M $41.19M
YoY Change 4.5% 2.48%
Operating Profit -$14.75M -$17.67M
YoY Change -16.53% -1.7%
Interest Expense -$4.180M -$2.390M
YoY Change 74.9% 4.37%
% of Operating Profit
Other Income/Expense, Net $202.0K $32.00K
YoY Change 531.25% -155.17%
Pretax Income -$18.72M -$20.03M
YoY Change -6.52% -1.42%
Income Tax $132.0K $177.0K
% Of Pretax Income
Net Earnings -$18.86M -$20.21M
YoY Change -6.69% -1.32%
Net Earnings / Revenue -39.36% -50.36%
Basic Earnings Per Share -$0.58 -$0.65
Diluted Earnings Per Share -$0.58 -$0.65
COMMON SHARES
Basic Shares Outstanding 32.38M shares 31.10M shares
Diluted Shares Outstanding 32.38M shares 31.10M shares

Balance Sheet

Concept 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $148.1M $117.9M
YoY Change 25.61% -23.29%
Cash & Equivalents $148.1M $111.9M
Short-Term Investments $6.000M
Other Short-Term Assets $10.00M $6.800M
YoY Change 47.06% 9.68%
Inventory
Prepaid Expenses
Receivables $29.00M $32.70M
Other Receivables $0.00 $0.00
Total Short-Term Assets $187.2M $157.4M
YoY Change 18.9% -20.43%
LONG-TERM ASSETS
Property, Plant & Equipment $14.80M $14.79M
YoY Change 0.07% -3.2%
Goodwill $38.76M $20.25M
YoY Change 91.47% -2.89%
Intangibles $25.06M $12.07M
YoY Change 107.53% -11.96%
Long-Term Investments
YoY Change
Other Assets $4.239M $6.202M
YoY Change -31.65% 129.28%
Total Long-Term Assets $93.29M $53.31M
YoY Change 75.0% 1.46%
TOTAL ASSETS
Total Short-Term Assets $187.2M $157.4M
Total Long-Term Assets $93.29M $53.31M
Total Assets $280.5M $210.7M
YoY Change 33.1% -15.84%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.606M $6.253M
YoY Change -42.33% -6.38%
Accrued Expenses $5.329M $7.483M
YoY Change -28.79% 39.61%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $101.1M $94.43M
YoY Change 7.11% 3.05%
LONG-TERM LIABILITIES
Long-Term Debt $216.1M $124.0M
YoY Change 74.27% 5.62%
Other Long-Term Liabilities $853.0K $628.0K
YoY Change 35.83% -33.05%
Total Long-Term Liabilities $853.0K $628.0K
YoY Change 35.83% -33.05%
TOTAL LIABILITIES
Total Short-Term Liabilities $101.1M $94.43M
Total Long-Term Liabilities $853.0K $628.0K
Total Liabilities $335.6M $230.6M
YoY Change 45.54% 7.94%
SHAREHOLDERS EQUITY
Retained Earnings -$247.3M -$180.5M
YoY Change 37.04% 71.04%
Common Stock $37.00K $36.00K
YoY Change 2.78% 2.86%
Preferred Stock
YoY Change
Treasury Stock (at cost) $13.94M $13.94M
YoY Change 0.0% 0.0%
Treasury Stock Shares 4.418M shares 4.418M shares
Shareholders Equity -$55.14M -$19.87M
YoY Change
Total Liabilities & Shareholders Equity $280.5M $210.7M
YoY Change 33.1% -15.84%

Cashflow Statement

Concept 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income -$18.86M -$20.21M
YoY Change -6.69% -1.32%
Depreciation, Depletion And Amortization $3.364M $2.033M
YoY Change 65.47% -17.53%
Cash From Operating Activities -$4.732M -$12.19M
YoY Change -61.19% 341.14%
INVESTING ACTIVITIES
Capital Expenditures $778.0K $484.0K
YoY Change 60.74% -86.26%
Acquisitions
YoY Change
Other Investing Activities $0.00 $9.980M
YoY Change -100.0% -130.76%
Cash From Investing Activities -$2.094M $8.927M
YoY Change -123.46% -124.82%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$5.604M -$2.866M
YoY Change 95.53% -34.34%
NET CHANGE
Cash From Operating Activities -$4.732M -$12.19M
Cash From Investing Activities -$2.094M $8.927M
Cash From Financing Activities -$5.604M -$2.866M
Net Change In Cash -$12.43M -$6.132M
YoY Change 102.71% -85.77%
FREE CASH FLOW
Cash From Operating Activities -$4.732M -$12.19M
Capital Expenditures $778.0K $484.0K
Free Cash Flow -$5.510M -$12.68M
YoY Change -56.54% 101.67%

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CY2018Q1 us-gaap Liabilities
Liabilities
335608000 USD
CY2017Q4 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
288683000 USD
CY2018Q1 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
280469000 USD
CY2017Q4 us-gaap Liabilities Current
LiabilitiesCurrent
102025000 USD
CY2018Q1 us-gaap Liabilities Current
LiabilitiesCurrent
101147000 USD
CY2017Q1 us-gaap License Costs
LicenseCosts
65000 USD
CY2018Q1 us-gaap License Costs
LicenseCosts
73000 USD
CY2017Q1 us-gaap Licenses Revenue
LicensesRevenue
2190000 USD
CY2018Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-4732000 USD
CY2017Q1 us-gaap Net Income Loss
NetIncomeLoss
-20207000 USD
CY2018Q1 us-gaap Net Income Loss
NetIncomeLoss
-18856000 USD
CY2017Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-17668000 USD
CY2018Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-14747000 USD
CY2018Q1 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
3352000 USD
CY2018Q1 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
46000 USD
CY2017Q1 us-gaap Other Amortization Of Deferred Charges
OtherAmortizationOfDeferredCharges
0 USD
CY2018Q1 us-gaap Other Amortization Of Deferred Charges
OtherAmortizationOfDeferredCharges
238000 USD
CY2017Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
4039000 USD
CY2018Q1 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
4239000 USD
CY2018Q1 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
9820000 USD
CY2018Q1 us-gaap Operating Leases Future Minimum Payments Due In Five Years
OperatingLeasesFutureMinimumPaymentsDueInFiveYears
707000 USD
CY2018Q1 us-gaap Operating Leases Future Minimum Payments Due In Four Years
OperatingLeasesFutureMinimumPaymentsDueInFourYears
1005000 USD
CY2018Q1 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
1725000 USD
CY2018Q1 us-gaap Licenses Revenue
LicensesRevenue
1066000 USD
CY2018Q1 us-gaap Line Of Credit
LineOfCredit
0 USD
CY2018Q1 us-gaap Line Of Credit Facility Maximum Borrowing Capacity
LineOfCreditFacilityMaximumBorrowingCapacity
50000000 USD
CY2018Q1 us-gaap Long Term Debt Percentage Bearing Fixed Interest Rate
LongTermDebtPercentageBearingFixedInterestRate
0.02
CY2017Q1 us-gaap Maintenance Costs
MaintenanceCosts
3146000 USD
CY2018Q1 us-gaap Maintenance Costs
MaintenanceCosts
2957000 USD
CY2017Q1 us-gaap Maintenance Revenue
MaintenanceRevenue
18076000 USD
CY2018Q1 us-gaap Maintenance Revenue
MaintenanceRevenue
16574000 USD
CY2017Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-2866000 USD
CY2018Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-5604000 USD
CY2017Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
8927000 USD
CY2018Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-2094000 USD
CY2017Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-12193000 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
260000 USD
CY2018Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
527000 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
247000 USD
CY2018Q1 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
527000 USD
CY2017Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
-13000 USD
CY2018Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
0 USD
CY2017Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
843000 USD
CY2018Q1 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
853000 USD
CY2017Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
32000 USD
CY2018Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
202000 USD
CY2017Q3 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
34100000 USD
CY2017Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
484000 USD
CY2018Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
778000 USD
CY2017Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2018Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2017Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2018Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2018Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2017Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2018Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2018Q1 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2017Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
5930000 USD
CY2018Q1 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
7294000 USD
CY2017Q1 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
9983000 USD
CY2018Q1 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
0 USD
CY2017Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
2198000 USD
CY2018Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
875000 USD
CY2017Q1 us-gaap Proceeds From Stock Plans
ProceedsFromStockPlans
776000 USD
CY2018Q1 us-gaap Proceeds From Stock Plans
ProceedsFromStockPlans
834000 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
14007000 USD
CY2018Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
14799000 USD
CY2018Q1 us-gaap Purchase Obligation
PurchaseObligation
17800000 USD
CY2017Q1 us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
50000 USD
CY2018Q1 us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
58000 USD
CY2017Q1 us-gaap Research And Development Expense Software Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseSoftwareExcludingAcquiredInProcessCost
14307000 USD
CY2018Q1 us-gaap Research And Development Expense Software Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseSoftwareExcludingAcquiredInProcessCost
14784000 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-238185000 USD
CY2018Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-247317000 USD
CY2017Q1 us-gaap Revenues
Revenues
40129000 USD
CY2018Q1 us-gaap Revenues
Revenues
47910000 USD
CY2017Q1 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
7649000 USD
CY2018Q1 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
9320000 USD
CY2017Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
16473000 USD
CY2018Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
17568000 USD
CY2017Q1 us-gaap Share Based Compensation
ShareBasedCompensation
6162000 USD
CY2018Q1 us-gaap Share Based Compensation
ShareBasedCompensation
5936000 USD
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Discount From Market Price Offering Date
ShareBasedCompensationArrangementByShareBasedPaymentAwardDiscountFromMarketPriceOfferingDate
0.15
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Maximum Employee Subscription Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardMaximumEmployeeSubscriptionRate
0.10
CY2018Q1 us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans
37115 shares
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
-46979000 USD
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
-55139000 USD
CY2017Q1 us-gaap Subscription Revenue
SubscriptionRevenue
12214000 USD
CY2018Q1 us-gaap Subscription Revenue
SubscriptionRevenue
20950000 USD
CY2018Q1 us-gaap Tangible Asset Impairment Charges
TangibleAssetImpairmentCharges
0 USD
CY2017Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
4417585 shares
CY2018Q1 us-gaap Treasury Stock Shares
TreasuryStockShares
4417585 shares
CY2017Q4 us-gaap Treasury Stock Value
TreasuryStockValue
13938000 USD
CY2018Q1 us-gaap Treasury Stock Value
TreasuryStockValue
13938000 USD
CY2018Q1 us-gaap Unamortized Debt Issuance Expense
UnamortizedDebtIssuanceExpense
173000 USD
CY2017Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2017Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
31099000 shares
CY2018Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
32378000 shares
CY2017Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
31099000 shares
CY2018Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
32378000 shares
CY2018Q1 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Organization and Nature of Operations</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">PROS Holdings, Inc., a Delaware corporation, through its operating subsidiaries (collectively, the "Company"), provides cloud-based solutions to power the shift to modern commerce by helping companies create personalized and frictionless buying experiences for their customers. Fueled by artificial intelligence, machine learning and proven science, the Company's solutions make it possible for companies to price, configure and sell their products and services in an omnichannel environment with speed, precision and consistency. The Company's customers benefit from decades of data science expertise infused into its purpose-built industry solutions. The Company provides its solutions to enterprises across the manufacturing, distribution and services industries, including automotive and industrial, business-to-business ("B2B") services, cargo, chemicals and energy, consumer goods, insurance, food and beverage, healthcare, high tech, and travel. The Company also provides professional services to implement its software applications. In addition, the Company provides product maintenance and support to its customers through which they receive unspecified upgrades, maintenance releases and bug fixes during the term of the support period on a when-and-if-available basis.</font></div></div>
CY2018Q1 us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Deferred revenue</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Deferred revenue primarily consists of customer invoicing in advance of revenues being recognized. The Company generally invoices its customers annually in advance for subscription services and maintenance and support services. Deferred revenue that is anticipated to be recognized during the next twelve-month period is recorded as current deferred revenue and the remaining portion is recorded as long-term.</font></div></div>
CY2018Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of estimates</font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company makes estimates and assumptions in the preparation of its unaudited condensed consolidated financial statements, and its estimates and assumptions may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. The complexity and judgment required in the Company's estimation process, as well as issues related to the assumptions, risks and uncertainties inherent in the application of the percentage-of-completion method of accounting, affect the amounts of revenue, expenses, unbilled receivables and deferred revenue. Estimates are also used for, but not limited to, receivables, allowance for doubtful accounts, useful lives of assets, depreciation and amortization, income taxes and deferred tax asset valuation, valuation of stock options, other current liabilities and accrued liabilities. Numerous internal and external factors can affect estimates. The critical accounting policies related to estimates and judgments are discussed in the Annual Report under management's discussion and analysis of financial condition and results of operations and are also discussed under Item 2 </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Management's discussion and analysis of financial condition and results of operations</font><font style="font-family:inherit;font-size:10pt;">".</font></div></div>

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