PROS Holdings, Inc. (PRO) saw its loss narrow to $15.71 million, or $0.52 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $18.18 million, or $0.61 a share. On the other hand, adjusted net loss for the quarter widened to $5.67 million, or $0.19 a share from a loss of $4.68 million or $0.16 a share, a year ago.
Revenue during the quarter dropped 6.07 percent to $38.38 million from $40.87 million in the previous year period. Gross margin for the quarter contracted 340 basis points over the previous year period to 59.25 percent. Operating margin for the quarter stood at negative 34.17 percent as compared to a negative 38.82 percent for the previous year period.
Operating loss for the quarter was $13.12 million, compared with an operating loss of $15.87 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $8.12 million compared to operating loss of $6.45 million in prior year period.
Chief executive officer Andres Reiner stated, "With another solid performance in the third quarter, we are pleased to see that our innovation and cloud strategies continue to help us drive growth and deliver great value to our customers. This has been a breakthrough year for PROS as we have passed several key milestones in our cloud transformation, reflected in our momentum in subscription revenue and annual recurring revenue. We are excited to see our strategic vision unfold as PROS solutions empower our customers to outperform in this era of modern commerce."
For the fourth-quarter 2016, PROS Holdings, Inc. expects revenue to be in the range of $37 million to $38.50 million. The company expects operating loss to be in the range of $18.85 million to $17.35 million. On an adjusted basis, the company projects diluted loss per share to be in the range of $0.27 to $0.24.
For financial year 2016, PROS Holdings, Inc. expects revenue to be in the range of $150.30 million to $151.80 million. The company expects operating loss to be in the range of $67.92 million to $66.42 million.
Operating cash flow turns negative
PROS Holdings, Inc. has spent $7.16 million cash to meet operating activities during the nine month period as against cash inflow of $6.80 million in the last year period.
The company has spent $55.53 million cash to meet investing activities during the nine month period as against cash outgo of $27.56 million in the last year period.
The company has spent $3.93 million cash to carry out financing activities during the nine month period as against cash outgo of $5.62 million in the last year period.
Cash and cash equivalents stood at $95.21 million as on Sep. 30, 2016, down 29.45 percent or $39.74 million from $134.95 million on Sep. 30, 2015.
Working capital drops significantly
PROS Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $89.61 million as at Sep. 30, 2016, down 32.47 percent or $43.09 million from $132.69 million on Sep. 30, 2015. Current ratio was at 2 as on Sep. 30, 2016, down from 2.57 on Sep. 30, 2015.
Days sales outstanding went down to 104 days for the quarter compared with 125 days for the same period last year.
Debt moves up
PROS Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $120.65 million as on Sep. 30, 2016, up 5.05 percent or $5.80 million from $114.85 million on Sep. 30, 2015. PROS Holdings, Inc. has witnessed an increase in long-term debt over the last one year. It stood at $120.65 million as on Sep. 30, 2016, up 5.05 percent or $5.80 million from $114.85 million on Sep. 30, 2015. Total debt was 52.24 percent of total assets as on Sep. 30, 2016, compared with 42.35 percent on Sep. 30, 2015. Debt to equity ratio was at 12.09 as on Sep. 30, 2016, up from 1.71 as on Sep. 30, 2015.
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