2021 Q2 Form 10-Q Financial Statement

#000139297221000089 Filed on August 03, 2021

View on sec.gov

Income Statement

Concept 2021 Q2 2020 Q2 2020 Q1
Revenue $62.40M $63.75M $66.31M
YoY Change -2.11% -0.21% 18.14%
Cost Of Revenue $26.40M $25.95M $28.73M
YoY Change 1.75% 10.04% 38.18%
Gross Profit $36.00M $37.80M $37.58M
YoY Change -4.76% -6.2% 6.35%
Gross Profit Margin 57.69% 59.29% 56.68%
Selling, General & Admin $31.85M $34.54M $39.80M
YoY Change -7.79% -1.27% 20.05%
% of Gross Profit 88.48% 91.38% 105.9%
Research & Development $20.45M $18.40M $19.14M
YoY Change 11.18% 5.4% 21.12%
% of Gross Profit 56.82% 48.67% 50.92%
Depreciation & Amortization $3.022M $3.510M $3.420M
YoY Change -13.9% 0.29% 2.86%
% of Gross Profit 8.4% 9.29% 9.1%
Operating Expenses $52.30M $52.94M $58.94M
YoY Change -1.2% 0.95% 20.4%
Operating Profit -$16.31M -$15.14M -$21.35M
YoY Change 7.71% 24.65% 56.88%
Interest Expense -$1.576M -$2.090M -$2.060M
YoY Change -24.59% -51.05% -52.75%
% of Operating Profit
Other Income/Expense, Net $4.000K $146.0K $831.0K
YoY Change -97.26% -116.94% -34.62%
Pretax Income -$17.88M -$17.08M -$22.58M
YoY Change 4.68% -1.17% 35.27%
Income Tax $168.0K $130.0K $152.0K
% Of Pretax Income
Net Earnings -$18.05M -$17.21M -$22.74M
YoY Change 4.87% -1.76% 34.39%
Net Earnings / Revenue -28.92% -26.99% -34.29%
Basic Earnings Per Share -$0.41 -$0.40 -$0.53
Diluted Earnings Per Share -$0.41 -$0.40 -$0.53
COMMON SHARES
Basic Shares Outstanding 44.32M shares 43.30M shares 43.10M shares
Diluted Shares Outstanding 44.32M shares 43.30M shares 43.10M shares

Balance Sheet

Concept 2021 Q2 2020 Q2 2020 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $318.3M $220.2M $251.8M
YoY Change 44.56% -33.19% -7.63%
Cash & Equivalents $318.3M $220.2M $251.8M
Short-Term Investments
Other Short-Term Assets $15.25M $14.50M $15.20M
YoY Change 5.21% 15.08% 39.45%
Inventory
Prepaid Expenses
Receivables $41.30M $54.70M $53.60M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $374.9M $289.3M $320.6M
YoY Change 29.57% -26.8% -2.61%
LONG-TERM ASSETS
Property, Plant & Equipment $34.27M $33.66M $26.70M
YoY Change 1.8% 122.51% 67.71%
Goodwill $49.70M $49.12M $48.91M
YoY Change 1.18% 28.71% 28.62%
Intangibles $6.596M $11.40M $12.95M
YoY Change -42.13% -28.07% -25.87%
Long-Term Investments
YoY Change
Other Assets $7.238M $6.900M $7.163M
YoY Change 4.9% 18.31% 29.53%
Total Long-Term Assets $136.6M $138.0M $136.1M
YoY Change -0.97% 22.47% 17.49%
TOTAL ASSETS
Total Short-Term Assets $374.9M $289.3M $320.6M
Total Long-Term Assets $136.6M $138.0M $136.1M
Total Assets $511.5M $427.3M $456.7M
YoY Change 19.71% -15.87% 2.63%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.265M $8.506M $12.76M
YoY Change -38.1% 22.42% 68.7%
Accrued Expenses $12.79M $17.70M $18.73M
YoY Change -27.76% 32.94% 51.67%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $148.0M $158.7M $177.8M
YoY Change -6.7% -11.37% -38.1%
LONG-TERM LIABILITIES
Long-Term Debt $287.5M $114.1M $112.4M
YoY Change 152.01% -42.49% 25.03%
Other Long-Term Liabilities $1.468M $1.282M $1.260M
YoY Change 14.51% 70.71% 70.27%
Total Long-Term Liabilities $1.468M $1.282M $1.260M
YoY Change 14.51% 70.71% 70.27%
TOTAL LIABILITIES
Total Short-Term Liabilities $148.0M $158.7M $177.8M
Total Long-Term Liabilities $1.468M $1.282M $1.260M
Total Liabilities $485.8M $309.1M $327.1M
YoY Change 57.15% -25.05% -21.1%
SHAREHOLDERS EQUITY
Retained Earnings -$467.5M -$401.7M -$384.5M
YoY Change 16.38% 22.8% 24.19%
Common Stock $49.00K $48.00K $48.00K
YoY Change 2.08% 6.67% 14.29%
Preferred Stock
YoY Change
Treasury Stock (at cost) $29.85M $29.85M $29.85M
YoY Change 0.0% 114.14% 114.14%
Treasury Stock Shares 4.681M shares 4.681M shares 4.681M shares
Shareholders Equity $25.73M $118.2M $129.6M
YoY Change
Total Liabilities & Shareholders Equity $511.5M $427.3M $456.7M
YoY Change 19.71% -15.87% 2.63%

Cashflow Statement

Concept 2021 Q2 2020 Q2 2020 Q1
OPERATING ACTIVITIES
Net Income -$18.05M -$17.21M -$22.74M
YoY Change 4.87% -1.76% 34.39%
Depreciation, Depletion And Amortization $3.022M $3.510M $3.420M
YoY Change -13.9% 0.29% 2.86%
Cash From Operating Activities -$4.984M -$22.79M -$24.17M
YoY Change -78.13% 543.79% 198.62%
INVESTING ACTIVITIES
Capital Expenditures -$785.0K -$8.590M $10.99M
YoY Change -90.86% 405.29% 1699.18%
Acquisitions
YoY Change
Other Investing Activities -$1.000K $0.00
YoY Change -100.0%
Cash From Investing Activities -$786.0K -$8.590M -$11.41M
YoY Change -90.85% 388.07% 645.91%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 4.000K -50.00K -$18.81M
YoY Change -108.0% -100.08% 41.46%
NET CHANGE
Cash From Operating Activities -4.984M -22.79M -$24.17M
Cash From Investing Activities -786.0K -8.590M -$11.41M
Cash From Financing Activities 4.000K -50.00K -$18.81M
Net Change In Cash -5.766M -31.43M -$54.30M
YoY Change -81.65% -155.16% 137.72%
FREE CASH FLOW
Cash From Operating Activities -$4.984M -$22.79M -$24.17M
Capital Expenditures -$785.0K -$8.590M $10.99M
Free Cash Flow -$4.199M -$14.20M -$35.17M
YoY Change -70.43% 671.74% 303.93%

Facts In Submission

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Organization and Nature of Operations    PROS Holdings, Inc., a Delaware corporation, through its operating subsidiaries (collectively, the "Company"), provides software-as-a-service ("SaaS") solutions that optimize shopping and selling experiences. Built on the PROS platform, these intelligent solutions leverage business artificial intelligence ("AI"), intuitive user experiences and process automation to deliver frictionless, personalized purchasing experiences designed to meet the real-time demands of today’s business-to-business ("B2B") and business-to-consumer ("B2C") omnichannel shoppers, regardless of industry. Companies can use these solutions to assess their market environments in real time to deliver customized prices and offers. The Company's solutions enable buyers to move fluidly across its customers’ direct sales, partner, online, mobile and emerging channels with personalized experiences regardless of which channel those buyers choose. The Company's decades of data science and AI expertise are infused into its solutions and are designed to reduce time and complexity through actionable intelligence.
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<div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Deferred costs</span></div><div style="text-indent:36pt"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">    Sales commissions earned by the Company's sales representatives are considered incremental and recoverable costs of obtaining a customer contract. Sales commissions are deferred and amortized on a straight-line basis over the period of benefit, which the Company has determined to be five to eight years. The Company determined the period of benefit by taking into consideration its customer contracts, expected renewals of those customer contracts (as the Company currently does not pay an incremental sales commission for renewals), the Company's technology and other factors. The Company also defers amounts earned by employees other than sales representatives who earn incentive payments under compensation plans that are also tied to the value of customer contracts acquired. Deferred costs were </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">$17.1 million</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> and $18.5 million as of June 30, 2021 and December 31, 2020, respectively. Amortization expense for the deferred costs was </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">$1.5 million </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">and $1.4 million for the three months ended June 30, 2021 and 2020, respectively, and </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">$3.1 million </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">and $2.9 million for the six months ended June 30, 2021 and 2020, respectively. Amortization of deferred costs is included in selling and marketing expense in the accompanying unaudited condensed consolidated statements of comprehensive income (loss).</span></div>
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