PROS Holdings, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $86.3 million, a 7% increase from $80.7 million in the same period last year. The company's subscription revenue, which constitutes a significant portion of its income, rose by 10% to $70.8 million, compared to $64.3 million in Q1 2024. The gross profit for the quarter was $58.4 million, reflecting a gross profit margin of 68%, up from 64% in the prior year. The net loss for the quarter was $3.7 million, or $(0.08) per share, a notable improvement from a net loss of $11.4 million, or $(0.24) per share, in Q1 2024.
The company experienced a decrease in maintenance and support revenue, which fell to $2.7 million from $3.6 million year-over-year, attributed to customer churn and the migration of existing maintenance customers to cloud solutions. Despite this decline, PROS Holdings reported a significant reduction in its loss from operations, which decreased by 63% to $3.8 million, compared to $10.3 million in the previous year. This improvement was driven by operational efficiencies and a focus on optimizing cloud infrastructure, which enhanced the cost of delivery.
In terms of operational metrics, PROS Holdings maintained a gross revenue retention rate above 93% over the past year. The company’s cash and cash equivalents stood at $160.0 million as of March 31, 2025, slightly down from $162.0 million at the end of 2024. The company also reported cash provided by operating activities of $1.2 million for the quarter, a turnaround from cash used in operations of $4.6 million in Q1 2024. This positive cash flow was primarily due to improved collections and a reduced net loss.
Strategically, PROS Holdings continues to leverage artificial intelligence in its solutions, which are designed to optimize shopping and selling experiences across various industries. The company is focused on expanding its market presence and enhancing product adoption rates, particularly in the context of increasing demand for digital purchasing solutions. The company’s employee headcount remained stable, with 47.8 million shares outstanding as of April 23, 2025. Looking ahead, PROS Holdings anticipates continued growth in subscription revenue and operational improvements, although it acknowledges the potential impact of macroeconomic factors and geopolitical uncertainties on its business performance.
About PROS Holdings, Inc.
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