PROS Holdings, Inc. reported a total revenue of $330.4 million for the fiscal year ending December 31, 2024, marking a 9% increase from $303.7 million in 2023. The company's subscription revenue, which constitutes 81% of total revenue, rose by 14% to $266.3 million, driven by an increase in new and existing customer contracts. However, maintenance and support revenue declined by 32% to $13.5 million, primarily due to customers migrating to cloud solutions. The gross profit for the year was $217.0 million, reflecting a gross margin of 66%, up from 62% in the previous year.
In terms of operational metrics, PROS achieved a gross revenue retention rate of over 93% for the year, indicating strong customer loyalty. The company also reported a significant improvement in net operating cash flow, which increased by 177% to $27.4 million, attributed to enhanced operational efficiency despite a challenging macroeconomic environment. As of December 31, 2024, PROS had 1,501 full-time employees, a slight increase from the previous year, and approximately 66% of its revenue was generated from international customers.
Strategically, PROS has focused on expanding its product offerings and enhancing its AI capabilities. The company continues to invest in research and development, with expenses amounting to $89.7 million in 2024, slightly up from $89.4 million in 2023. This investment is aimed at improving existing solutions and developing new applications to meet evolving market demands. Additionally, PROS is shifting towards a broader ecosystem of implementation partners to scale its professional services, which are essential for customer success.
Looking ahead, PROS anticipates continued growth in subscription revenue and operating profit, supported by its land-realize-expand strategy. The company plans to reinvest a portion of its incremental revenues into sales and marketing efforts while maintaining a focus on product innovation. However, PROS acknowledges the potential impact of macroeconomic factors, including inflation and geopolitical tensions, on customer purchasing behavior and overall market conditions. The company remains committed to navigating these challenges while driving long-term value for its stakeholders.
About PROS Holdings, Inc.
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