PROS Holdings Q PROS Holdings, Inc. All rights reserved.

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1 PROS Holdings Q

2 Disclaimer / Forward-looking Statements Included in this material are forward-looking statements including, but not limited to, those related to earnings and other financial projections. These predictions, estimates, and other forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied in this presentation. We refer you to the documents we file with the Securities and Exchange Commission, which identify and discuss important factors that could cause actual results to differ materially from those discussed in these forward-looking statements. All statements included in these materials are based upon information known at the time, and PROS Holdings assumes no obligation to update any such statements. 2

3 Business Overview 3

4 Our Vision: To be the dynamic AI platform powering sales in the digital economy 4

5 PROS at a Glance $ 184mm 95 %+ 68 % LTM 6/30/18 Revenue Customer Gross Revenue Retention Rate Subscription revenue growth LTM 6/30/18 79 % Recurring Revenue 6 mo. ended 6/30/18 $ 30B + Total Addressable Market 1Tn+ Transactions processed annually 5

6 Our Heritage of Innovation and Execution Product Science Platform & Integration B2B Common Platform Revenue Management & Forecasting Person Years of Science Investment Cutting Edge use of Platform Technology and Compute Power Proprietary Algorithms Accelerated Innovation in the Cloud Zero Code Platform Application of Machine Learning, Proprietary Algorithms, and Bayesian Forecasting ERP Integration Real-Time Dynamic Pricing Deal Optimization CRM Integration 1st Cloud Offerings Cloud First Platform Group Sales Optimization Supply and Network Optimization Configure, Price, Quote Omnichannel Optimization E-commerce Monet-AI Personal Assistant Shopping & Merchandising Cognitive Computing Opportunity Detection Constraint Satisfaction, Dynamic and Linear Programming 1980s

7 Expectations for Customer Experience 7

8 ...Are Converging in the Digital Economy C H A N N E L F L U I D I T Y 8

9 The Digital Economy has Brought About an Inflection Point Historical Commerce Challenges Today s market has trained us to expect more Lack of customer insights, preferences and buying patterns Negotiated pricing with limited transparency 74 % 68 % of B2B buyers prefer to buy online when they have decided what to buy prefer to conduct research online as opposed to with a sales rep and modern data science is finally able to deliver at scale: Complex quoting process with little visibility Labor intensive AI uses vast user-data to influence choices Enables predictive suggestions and price intelligence Results in a better informed marketplace Source: Make Omnichannel Real In B2B Commerce, July 2018, Forrester 9

10 PROS Solutions Power Companies to Compete and Win in Today s Digital Economy 10

11 DIGITAL CHANNELS Social Web CRM PROS Provides Intelligence to Commerce Mobile Tablet ecommerce Cross-sell Configuration Products and Offers Opportunity Identification Merchandising Quoting & Shopping Cart Dynamic Pricing Stores Price Optimization Price Management Buyer Sales Partners ERP Supply Optimization Demand Forecasting 11 TRADITIONAL CHANNELS

12 With Powerful, Flexible, Self-learning AI Cross-industry capabilities Automotive & Industrial B2B Services Chemicals & Energy Food & Consumables Healthcare Technology Travel Without manual intervention Understands a user s context Personalizes and adapts Predicts, prescribes, and automates Learns from data and actions Improves continuously Monet TM Enables users to make better decisions based on All the information available Computational power of the cloud Machine learning and other algorithms PROS Artificial Intelligence Analyst 12

13 And Industry Leaders are Taking Note Automotive & Industrial B2B Services Chemicals & Energy Food & Consumables Healthcare Technology Travel 1 of top 3 global heavy equipment manufacturer 2 of top 4 U.S. auto parts companies 1 of top 3 sanitary services companies 1 of top 3 European insurance companies 2 of top 3 US car rental companies 1 of top 3 chemicals companies 2 of top 5 global oil and gas companies 1 of top 3 privately held companies in US 1 of top 3 paper producing companies 2 of top 5 global pharma companies 3 of top 10 global medical device companies 2 of top 20 global technology companies 1 of top 5 US electronics components distributors 17 out of 20 of the best global airlines 1 of top 3 global railway companies Top provider of intercity bus transportation S E L E C T C U S T O M E R S Data current as of 9/1/18 13

14 PROS drives Tangible Results for Customers HP Inc. $400mm 19% revenue improvement, resulting in $400mm incremental revenue Fonterra ~$80mm Avg. per year We've improved the value of optimization by somewhere around $20 million dollars per quarter Greyhound 2-3% 2-3% lift compared to control groups 14

15 PROS TAM is Massive, Global, and Growing $30B+ Underpenetrated, addressable market (estimated) Strategic Industries and Geographies $9B Automotive & Industrial $2.4B Chemicals & Energy $700mm Healthcare $1.3B B2B Services $1.0B Food & Consumables $1.6B Technology $800mm Emerging Industries and Geographies $21B+ Travel $1.2B 15 Note: TAM represents our estimated global total revenue and market opportunity and does not represent the actual market opportunity that we may target or ultimately service or otherwise derive revenue from. Our estimate of TAM may be revised in the future depending on a variety of factors, including competitive dynamics, our sales efforts, customer needs, industry shifts and other economic factors.

16 Numerous Vectors for Growth Continued Product Innovation Strategic M&A Land New Logos Migrate Legacy Customers to Cloud Cross/Up-Sell Existing Customers 16

17 Summary Business Highlights Leading end-to-end AI platform powering digital commerce Massive market opportunity at inflection point Real-time, mission critical solutions delivering powerful customer ROI Loyal customer base consisting of leading blue-chip companies Deep competitive moat built through 30 years of AI leadership Rapidly growing, highly visible subscription revenue Strong culture of innovation and execution 17

18 Financial Overview 18

19 Then vs. Now 2013 LTM 6/30/18 Subscription 6% Services 19% License 2% Revenue License 28% Maintenance + support 32% Subscription 42% Services 33% $145mm Recurring 38% Maintenance + support 36% $184mm Recurring 79% YoY Subscription revenue growth 2% 68% Sales motion Upfront perpetual license / maintenance 95% of all software bookings in the cloud Land-and-Expand Implementation cycle (B2B) 6-9 months 1 4 months 19

20 Firing on All Cylinders Revenue growth Subscription growth % Recurring Non-GAAP Subscription gross margin Adj. EBITDA margin 20% 13% 18% 75% 68% 68% 80% 78% 79% 65% 65% 0% 5% 7% 40% 48% 75% 76% 60% 55% 56% 57% 60% -15% (20%) (16%) (13%) -10% (6%) 25% 70% 71% 50% -30% (24%) 2H 16 1H 17 2H 17 1H 18 2H 16 1H 17 2H 17 1H 18 2H 16 1H 17 2H 17 1H 18 2H 16 1H 17 2H 17 1H 18 2H 16 1H 17 2H 17 1H 18 20

21 Financial Trends Summary ($mm) YoY Growth Quarterly Revenue Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 7% (6%) (13%) (22%) (13%) (11%) (6%) (5%) 6% 9% 9% 16% 19% 17% Quarterly Adj. EBITDA YoY Growth Annual Revenue LTM 6/30/2018 (9%) (9%) 10% 16% Annual Adj. EBITDA (2) (3) (5) (2) (10) (10) (7) (9) (10) (10) (9) (5) (7) (5) (12) (35) (34) (26) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Adj. EBITDA Margin (4%) (8%) (12%) (5%) (27%) (26%) (18%) (22%) (25%) (24%) (22%) (11%) (14%) (11%) Adj. EBITDA Margin LTM 6/30/2018 (7%) (23%) (20%) (14%) 21

22 Strong and Consistent Trajectory ($mm) Subscription Revenue 48% CAGR 78 ARR 28% CAGR 161 Recurring Revenue 20% CAGR LTM LTM Note: ARR is one of PROS key performance metrics and should be viewed independently of revenue or other similar GAAP measure. ARR is defined as contracted recurring revenue, including contracts with a future start date, together with annualized overage fees incurred above contracted minimum transactions, and excludes license agreements recognized as license revenue in accordance with GAAP. Estimated ARR does not represent actual market or revenue opportunity, and such estimates may be revised in the future depending on a variety of factors, including competitive dynamics, our sales efforts, customer needs, industry shifts and other economic factors. 22

23 Second Quarter Earnings Recap 2Q-18 Financial Results Efficient Expansion $mm (except per share) 2Q-18 2Q-17 Delta 2Q 2018 Guidance Delta Top line velocity Total Revenue % % Subscription Revenue % % 32% Increase in deal volume 1H 18 vs 1H 17 Adj. EBITDA (5.4) (9.5) +43% (7.2) +25% Compounded by Margin Improvement Free Cash Flow (5.2) (10.1) +49% na na Non-GAAP Loss Per Share $(0.16) $(0.22) +27% $(0.20) +20% 1,214 bps Quarterly Adj. EBITDA margin improvement YoY 23 Source: 7/26/18 8K Note: Q Guidance is taken from the midpoint of company provided guidance as published in 4/26/18 8K

24 Path Toward Long-Term Model Business Model to Provide Operating Leverage (Non-GAAP 1 ) LTM (6/30/18) Long-Term Targets Total Revenue Growth (9%) 10% 16% 20% or better Recurring Revenue as a % of Total Revenue 70% 77% 79% Up to 90% Recurring Gross Margin 73% 72% 73% Approximately 75% Adj. Operating Expense as a % of Total Revenue 88% 84% 78% Low 50% s range Free Cash Flow Margin (16%) (17%) (10%) Approximately 20% 1 For a reconciliation of GAAP to Non-GAAP metrics refer to the appendix 24

25 Summary Financial Highlights High Visibility Business Model with Increasingly Recurring Revenue Accelerating Top Line Growth Driven by Subscription Revenue Industry Leading Retention Rates Strong Operating Leverage in the Business and Improving FCF Profile Consistent Performance and Execution on Guidance 25

26 Leadership Team Executing on the Opportunity Andres Reiner President & CEO 25+ years in enterprise technology including 19 years at PROS Stefan Schulz Chief Financial Officer 20+ years in enterprise technology including PROS, BMC, Lawson, & Digital River Tom Dziersk EVP of Worldwide Sales 25+ years in enterprise technology including PROS, JDA & NICE Celia Fleischaker Chief Marketing Officer 20+ years in enterprise technology including PROS & Epicor Michael Jahoda SVP, Professional Services Nearly 4 years at PROS, 13+ years at Accenture in Pricing & Strategy Damian Olthoff General Counsel and Secretary 15+ years in corporate law including 7 years at PROS Rob Reiner Chief Technology Officer 20+ years in enterprise technology including PROS, BMC & NetIQ Wagner Williams Chief People Officer Nearly 15 years at PROS in HR, Professional Services, and International Operations 26

27 Helping People and Companies Outperform We Are OWNERS We look for every opportunity to create a better PROS and a better experience for our customers and we hold ourselves accountable. We Are INNOVATORS We think creatively to find new paths to success for our people, our customers, and our business. We CARE We put people first our customers, our employees, our partners, and our community. It s how our company was started, and how we ll always run it. 27