2021 Q4 Form 10-Q Financial Statement

#000139297221000099 Filed on November 02, 2021

View on sec.gov

Income Statement

Concept 2021 Q4 2021 Q3 2020 Q3
Revenue $64.97M $62.67M $61.51M
YoY Change 6.76% 1.89% -4.12%
Cost Of Revenue $25.98M $26.05M $24.64M
YoY Change 2.59% 5.74% -6.62%
Gross Profit $39.00M $36.62M $36.87M
YoY Change 9.73% -0.68% -2.37%
Gross Profit Margin 60.02% 58.43% 59.95%
Selling, General & Admin $35.56M $33.41M $33.90M
YoY Change 18.44% -1.46% 2.25%
% of Gross Profit 91.18% 91.22% 91.94%
Research & Development $22.69M $19.02M $19.14M
YoY Change 19.75% -0.59% 13.37%
% of Gross Profit 58.19% 51.95% 51.9%
Depreciation & Amortization $3.232M $2.736M $3.650M
YoY Change -13.81% -25.04% 6.41%
% of Gross Profit 8.29% 7.47% 9.9%
Operating Expenses $58.25M $52.43M $53.03M
YoY Change 18.97% -1.14% 6.0%
Operating Profit -$19.25M -$15.81M -$16.16M
YoY Change 43.4% -2.2% 29.18%
Interest Expense -$1.576M -$1.576M -$2.500M
YoY Change -64.82% -36.96% -32.8%
% of Operating Profit
Other Income/Expense, Net $89.00K -$71.00K $122.0K
YoY Change -144.5% -158.2% -112.08%
Pretax Income -$23.13M -$17.46M -$18.54M
YoY Change 27.7% -5.85% 7.54%
Income Tax $483.0K $70.00K $318.0K
% Of Pretax Income
Net Earnings -$23.61M -$17.53M -$18.86M
YoY Change 29.83% -7.06% 8.7%
Net Earnings / Revenue -36.34% -27.96% -30.66%
Basic Earnings Per Share -$0.39 -$0.44
Diluted Earnings Per Share -$531.3K -$0.39 -$0.44
COMMON SHARES
Basic Shares Outstanding 44.39M shares 44.39M shares 43.35M shares
Diluted Shares Outstanding 44.39M shares 43.35M shares

Balance Sheet

Concept 2021 Q4 2021 Q3 2020 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $227.6M $308.6M $322.4M
YoY Change -30.86% -4.27% 1.0%
Cash & Equivalents $227.6M $308.6M $322.4M
Short-Term Investments
Other Short-Term Assets $15.40M $16.36M $14.90M
YoY Change -0.68% 9.82% 4.93%
Inventory
Prepaid Expenses
Receivables $40.58M $43.13M $67.90M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $283.5M $368.1M $405.2M
YoY Change -28.09% -9.15% 4.08%
LONG-TERM ASSETS
Property, Plant & Equipment $30.96M $32.40M $35.99M
YoY Change -15.19% -10.0% 157.62%
Goodwill $108.1M $49.44M $49.56M
YoY Change 116.08% -0.24% 1.4%
Intangibles $27.62M $5.738M $9.869M
YoY Change 231.11% -41.86% -39.05%
Long-Term Investments
YoY Change
Other Assets $9.003M $9.053M $6.796M
YoY Change 19.26% 33.21% 2.2%
Total Long-Term Assets $211.0M $132.9M $146.2M
YoY Change 44.82% -9.12% 12.99%
TOTAL ASSETS
Total Short-Term Assets $283.5M $368.1M $405.2M
Total Long-Term Assets $211.0M $132.9M $146.2M
Total Assets $494.5M $501.0M $551.4M
YoY Change -8.42% -9.14% 6.3%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.034M $4.998M $14.01M
YoY Change -4.99% -64.34% 100.11%
Accrued Expenses $12.63M $12.23M $11.91M
YoY Change -3.32% 2.75% -31.7%
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 $154.8M $148.6M $159.6M
YoY Change 4.67% -6.93% -25.71%
LONG-TERM LIABILITIES
Long-Term Debt $288.3M $287.9M $214.8M
YoY Change 32.24% 34.04% 97.06%
Other Long-Term Liabilities $1.196M $1.150M $1.330M
YoY Change -21.16% -13.53% 28.88%
Total Long-Term Liabilities $1.196M $1.150M $1.330M
YoY Change -21.16% -13.53% 28.88%
TOTAL LIABILITIES
Total Short-Term Liabilities $154.8M $148.6M $159.6M
Total Long-Term Liabilities $1.196M $1.150M $1.330M
Total Liabilities $490.9M $483.1M $422.4M
YoY Change 16.07% 14.36% 16.43%
SHAREHOLDERS EQUITY
Retained Earnings -$508.7M -$485.0M -$420.6M
YoY Change 15.93% 15.32% 22.09%
Common Stock $49.00K $49.00K $48.00K
YoY Change 2.08% 2.08% 2.13%
Preferred Stock
YoY Change
Treasury Stock (at cost) $29.85M $29.85M $29.85M
YoY Change 0.0% 0.0% 114.14%
Treasury Stock Shares 4.681M shares 4.681M shares 4.681M shares
Shareholders Equity $3.584M $17.93M $129.0M
YoY Change
Total Liabilities & Shareholders Equity $494.5M $501.0M $551.4M
YoY Change -8.42% -9.14% 6.3%

Cashflow Statement

Concept 2021 Q4 2021 Q3 2020 Q3
OPERATING ACTIVITIES
Net Income -$23.61M -$17.53M -$18.86M
YoY Change 29.83% -7.06% 8.7%
Depreciation, Depletion And Amortization $3.232M $2.736M $3.650M
YoY Change -13.81% -25.04% 6.41%
Cash From Operating Activities -$970.0K -$8.171M -$14.88M
YoY Change -107.79% -45.09% -469.23%
INVESTING ACTIVITIES
Capital Expenditures -$364.0K -$347.0K -$4.820M
YoY Change -93.21% -92.8% 301.67%
Acquisitions
YoY Change
Other Investing Activities -$79.71M -$2.169M -$110.0K
YoY Change 46786.47% 1871.82% -98.96%
Cash From Investing Activities -$80.07M -$2.516M -$4.930M
YoY Change 1347.94% -48.97% -58.33%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 1.227M 122.3M
YoY Change -100.0% -99.0% -5734.56%
NET CHANGE
Cash From Operating Activities -970.0K -8.171M -14.88M
Cash From Investing Activities -80.07M -2.516M -4.930M
Cash From Financing Activities 0.000 1.227M 122.3M
Net Change In Cash -81.04M -9.460M 102.5M
YoY Change -1362.32% -109.23% -1127.68%
FREE CASH FLOW
Cash From Operating Activities -$970.0K -$8.171M -$14.88M
Capital Expenditures -$364.0K -$347.0K -$4.820M
Free Cash Flow -$606.0K -$7.824M -$10.06M
YoY Change -103.4% -22.23% -292.35%

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 its customers to empower their 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%">$16.2 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 September 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%">$1.6 million </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">and $1.5 million for the three months ended September 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%">$4.6 million </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">and $4.3 million for the nine months ended September 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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