# EDGAR Filing Document

**Accession Number:** 0001392972
**File Stem:** 0001392972-23-000020
**Filing Date:** 2023-2
**Character Count:** 75953
**Document Hash:** 1510b6d01221784f6a1227631c5d711a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001392972-23-000020.hdr.sgml**: 20230209

**ACCESSION NUMBER**: 0001392972-23-000020

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 51

**CONFORMED PERIOD OF REPORT**: 20230209

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230209

**DATE AS OF CHANGE**: 20230209

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PROS Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001392972
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING SERVICES [7371]
- **IRS NUMBER:** 760168604
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33554
- **FILM NUMBER:** 23606486

**BUSINESS ADDRESS:**
- **STREET 1:** 3200 KIRBY DR.
- **STREET 2:** SUITE 600
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77098
- **BUSINESS PHONE:** 713-335-5151

**MAIL ADDRESS:**
- **STREET 1:** 3200 KIRBY DR.
- **STREET 2:** SUITE 600
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77098

?xml version="1.0" ? pro-20230209

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

Date of Report (Date of earliest event reported): February 9, 2023

![pro-20230209_g1.jpg](pro-20230209_g1.jpg)

**PROS Holdings, Inc.** 

(Exact Name of Registrant as Specified in Charter)

---

| | |
|:---|:---|
| **Delaware** | **Delaware** |
| (State or Other Jurisdiction of Incorporation) | (State or Other Jurisdiction of Incorporation) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**001-33554** | **76-0168604** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Commission File Number) | (IRS Employer Identification No.) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3200 Kirby Drive, Suite 600** | **Houston** | **TX** | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**77098** |
| (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Address of Principal Executive Offices) |  | (Zip Code) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registrant's telephone number, including area code | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registrant's telephone number, including area code | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registrant's telephone number, including area code | **(713)** | **335-5151** |
| (Former Name or Former Address, if Changed Since Last Report) | (Former Name or Former Address, if Changed Since Last Report) | (Former Name or Former Address, if Changed Since Last Report) | (Former Name or Former Address, if Changed Since Last Report) | (Former Name or Former Address, if Changed Since Last Report) |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading symbol(s)** | **Name of each exchange on which registered** |
| Common stock $0.001 par value per share | PRO | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

------

---

| | |
|:---|:---|
| ***Item 2.02.*** | ***Results of Operations and Financial Condition.***  |

---

On February 9, 2023, PROS Holdings, Inc. (the "Company") issued a press release announcing financial results for its quarter and year ended December 31, 2022. A copy of the press release, dated as of February 9, 2023, is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The press release contains forward looking statements regarding the Company and includes cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.

The information in this Current Report, including Exhibit 99.1 attached hereto, shall not be deemed "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any registration statement or other document filed with the Securities and Exchange Commission ("SEC") by the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

---

| | |
|:---|:---|
| ***Item 7.01.*** | ***Regulation FD Disclosure.***  |

---

On February 9, 2023, the Company published the Q4 2022 Investor Presentation ("Investor Presentation") on the Investor Relations section of the Company's website located at https://ir.pros.com/. From time to time, the Company may also present and/or distribute the Investor Presentation to the investment community to provide updates and summaries of its business. Copy of the Q4 2022 Investor Presentation is furnished herewith as Exhibits 99.2. Investors should note that the Company uses the Investor Relations section of its corporate website to announce material information to investors and the marketplace. While not all of the information that the Company posts on its corporate website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in the Company to review the information that it shares on the Investor Relations section of our website.

The information contained in the Investor Presentation is summary information that is intended to be considered in the context of the Company's SEC filings and other public announcements that the Company may make, by press release or otherwise, from time to time. The Company undertakes no duty or obligation to publicly update or revise the information contained in this report, although it may do so from time to time as its management believes is warranted. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosure.

The information in this Current Report, including Exhibits 99.2 attached hereto, shall not be deemed "filed" for the purpose of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. The information contained herein and in the accompanying exhibits shall not be incorporated by reference into any registration statement or other document filed with the SEC by the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

---

| | |
|:---|:---|
| ***Item 9.01.*** | ***Financial Statements and Exhibits.***  |

---

(d) Exhibits&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| 99.1 | <u>[Press release dated February 9, 2023.](a2022q4ex991prosearningsre.htm)</u> |
| 99.2 | <u>[Investor Presentation dated February 9, 2023.](q42022irdeck.htm)</u> |
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101). |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | PROS HOLDINGS, INC. | PROS HOLDINGS, INC. |
| February 9, 2023 | | /s/ Stefan Schulz |
| | | Stefan Schulz |
| | | Executive Vice President and Chief Financial Officer |

---

## Exhibit 99.1

**<u>EXHIBIT 99.1</u>**

![proslogo.jpg](proslogo.jpg)

**PROS HOLDINGS, INC. REPORTS FOURTH QUARTER AND**

**FULL YEAR 2022 FINANCIAL RESULTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Subscription revenue of $204.0 million, up 15% year-over-year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Subscription gross margin of 73% and non-GAAP subscription gross margin of 77%, up over 500 basis points year-over-year.

**HOUSTON – February 9, 2023** — PROS Holdings, Inc. (NYSE: PRO), the CFO's best-kept secret for profitable growth, today announced financial results for the fourth quarter and full year ended December 31, 2022.

"I'm proud of our team for their strong execution in delivering 15% subscription revenue growth in 2022 while driving greater efficiencies in our business," stated CEO Andres Reiner. "Our market-leading profit and revenue optimization solutions are mission critical for businesses looking to thrive in economic uncertainty and fuel profitable growth. We enter this year well positioned to capitalize on the market opportunity in front of us."

CFO Stefan Schulz said, "In 2022 we consistently drove revenue outperformance while delivering positive adjusted EBITDA in the second half of the year, despite a challenging economic environment. We are now projecting to generate positive adjusted EBITDA and free cash flow in 2023, accelerating our path to our long-term profitability goals."

**Fourth Quarter and Full Year 2022 Financial Highlights**

Key financial results for the fourth quarter and full year 2022 are shown below. Throughout this press release all dollar figures are in millions, except net (loss) earnings per share. Unless otherwise noted, all results are on a reported basis and are compared with the prior-year period.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **GAAP** | **GAAP** | **GAAP** | **Non-GAAP** | **Non-GAAP** | **Non-GAAP** |
| | **Q4 2022** | **Q4 2021** | **Change** | **Q4 2022** | **Q4 2021** | **Change** |
| ***Revenue:*** | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Revenue | $70.9 | $65.0 | 9% | n/a | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription Revenue | $53.1 | $47.0 | 13% | n/a | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription and Maintenance Revenue | $59.5 | $55.4 | 7% | n/a | n/a | n/a |
| ***Profitability:*** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross Profit | $43.5 | $39.0 | 11% | $46.2 | $40.7 | 14% |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating (Loss) Income | $(14.9) | $(21.6) | $6.8 | $1.2 | $(8.2) | $9.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (Loss) Income | $(17.3) | $(23.6) | $6.3 | $1.1 | $(7.2) | $8.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (Loss) Earnings Per Share | $(0.38) | $(0.53) | $0.15 | $0.02 | $(0.16) | $0.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | n/a | n/a | n/a | $2.4 | $(6.4) | $8.7 |
| ***Cash:*** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Cash Used in Operating Activities | $(2.0) | $(1.0) | $(1.0) | n/a | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Free Cash Flow | n/a | n/a | n/a | $1.1 | $(1.3) | $2.4 |

---

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **GAAP** | **GAAP** | **GAAP** | **Non-GAAP** | **Non-GAAP** | **Non-GAAP** |
| | **FY 2022** | **FY 2021** | **Change** | **FY 2022** | **FY 2021** | **Change** |
| ***Revenue:*** | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Revenue | $276.1 | $251.4 | 10% | n/a | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription Revenue | $204.0 | $178.0 | 15% | n/a | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription and Maintenance Revenue | $232.6 | $213.1 | 9% | n/a | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Annual Recurring Revenue ("ARR") | n/a | n/a | n/a | $245.3 | $226.7 | 8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Annual Recurring Revenue in constant currency | n/a | n/a | n/a | $247.5 | $226.7 | 9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription ARR | n/a | n/a | n/a | $227.0 | $195.1 | 16% |
| &nbsp;&nbsp;&nbsp;&nbsp;Subscription ARR in constant currency | n/a | n/a | n/a | $229.0 | $195.1 | 17% |
| ***Profitability:*** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross Profit | $166.1 | $146.5 | 13% | $176.9 | $152.1 | 16% |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating Loss | $(78.1) | $(74.3) | $(3.8) | $(20.1) | $(32.9) | $12.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Loss | $(82.2) | $(81.2) | $(1.0) | $(18.0) | $(29.1) | $11.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Loss Per Share | $(1.82) | $(1.83) | $0.01 | $(0.40) | $(0.66) | $0.26 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | n/a | n/a | n/a | $(14.9) | $(24.8) | $10.0 |
| ***Cash:*** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Cash Used in Operating Activities | $(23.9) | $(18.6) | $(5.4) | n/a | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Free Cash Flow | n/a | n/a | n/a | $(21.7) | $(20.2) | $(1.5) |

---

The attached table provides a summary of PROS results for the period, including a reconciliation of GAAP to non-GAAP metrics.

**Recent Business Highlights**

• Welcomed new customers who are adopting PROS solutions such as Aegean Airlines, Air Albania, Auto Wares, GE Power, Greater Bay Airlines, Sidel, Signature Aviation, Unlimited Technology and Vector Security, among others.

• Continued to be recognized for our innovation leadership with 15 awards and accolades received in 2022, including being named a leader again in the Gartner 2022 Magic Quadrant for Configure, Price, and Quote Application Suites; together with our leadership position in the IDC MarketScape, PROS continues to be the only platform with a leadership position in both Price Optimization and Management and CPQ.

• Announced an Analyst Day event to take place on Tuesday, May 23, 2023, during our 2023 Outperform user conference in Denver, CO; investors who wish to attend the full conference will receive a discounted conference rate - register today.

• Recognized as one of PEOPLE's 2022 Companies that Care, a list of the top 100 US companies that have succeeded in business while demonstrating outstanding respect, care, and concern for their employees.

**Financial Outlook**

PROS currently anticipates the following based on an estimated 46.0 million basic weighted average shares outstanding for the first quarter of 2023 and a 22% non-GAAP estimated tax rate for the first quarter and full year 2023.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Q1 2023 Guidance** | **v. Q1 2022 at Mid-Point** | **Full Year 2023 Guidance** | **v. Prior Year at Mid-Point** |
| Total Revenue | $70.4 to $71.4 | 7% | $293.0 to $296.0 | 7% |
| Subscription Revenue | $54.0 to $54.5 | 11% | $230.7 to $232.7 | 14% |
| Subscription ARR | n/a | n/a | $250.0 to $253.0 | 11% |
| Non-GAAP Loss Per Share | $(0.12) to $(0.09) | $0.11 | n/a | n/a |
| Adjusted EBITDA | $(4.0) to $(3.0) | $5.6 | $3.0 to $6.0 | $19.4 |
| Free Cash Flow | n/a | n/a | $2.0 to $6.0 | $25.7 |

---

**Conference Call**

In conjunction with this announcement, PROS Holdings, Inc. will host a conference call on Thursday, February 9, 2023, at 4:45 p.m. EST to discuss the Company's financial results and business outlook. To access this call, dial 1-877-407-9039 (toll-free) or 1-201-689-8470. The live and archived webcasts of this call can be accessed under the "Investor Relations" section of the Company's website at <u>www.pros.com</u>.

A telephone replay will be available until Thursday, February 16, 2023, 11:59 PM EST at 1-844-512-2921 (toll-free) or 1-412-317-6671 using the pass code 13735564.

**About PROS**

PROS Holdings, Inc. (NYSE: PRO) is your company's best-kept secret for profitable growth. Viewed as a market-leader by both Gartner and IDC for its CPQ and price optimization capabilities, PROS advanced AI delivers results to the world's top brands including Cargill, Etihad, Honeywell, HP, Lenovo, Lufthansa, Siemens and more. With more than 30 million AI models, PROS award winning AI is the driving force in processing more than 2 trillion transactions per year. PROS customers report up to 96% efficiency gain, up to 5% margin improvement and up to 20% revenue lift, according to a recent ROI study. To learn more, visit <u>www.pros.com.</u>

**Forward-looking Statements** 

<br>This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about our financial outlook; expectations; ability to achieve future growth and profitability; management's confidence and optimism; positioning; customer successes; demand for our software solutions; pipeline; business expansion; revenue; subscription revenue; ARR; non-GAAP earnings (loss) per share; adjusted EBITDA; free cash flow; shares outstanding and effective tax rate. The forward-looking statements contained in this press release are based upon our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates or expectations will be achieved. Factors that could cause actual results to differ materially from those described herein include, among others, risks related to: (a) the macroeconomic environment, (b) the effects of inflation, (c) the impact of the COVID-19 pandemic, (d) cyberattacks, data breaches and breaches of security measures within our products, systems and infrastructure or products, systems and infrastructure of third parties upon whom we rely, (e) increasing business from customers and maintaining subscription renewal rates, (f) managing our growth and profit objectives effectively, (g) disruptions from our third party data center, software, data, and other unrelated service providers, (h) implementing our solutions, (i) cloud operations, (j) intellectual property and third-party software, (k) acquiring and integrating businesses and/or technologies, (l) catastrophic events, (m) operating globally, including economic and commercial disruptions, (n) potential downturns in sales and lengthy sales cycles, (o) software innovation, (p) competition, (q) market acceptance of our software innovations, (r) maintaining our corporate culture, (s) personnel risks including loss of any key employees and competition for talent, (t) expanding and training our direct and indirect sales force, (u) evolving data privacy, cyber security and data localization laws, (v) our debt repayment obligations, (w) the timing of revenue recognition and cash flow from operations, (x) migrating customers to our latest cloud solutions, and (y) returning to profitability. Additional information relating to the risks and uncertainties affecting our business is contained in our filings with the SEC. These forward-looking statements represent our expectations as of the date hereof. Subsequent events may

------

cause these expectations to change, and PROS disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

**Non-GAAP Financial Measures**

PROS has provided in this release certain non-GAAP financial measures, including non-GAAP gross profit and margin, non-GAAP income (loss) from operations or non-GAAP operating income (loss), annual recurring revenue, adjusted EBITDA, free cash flow, non-GAAP tax rate, non-GAAP net income (loss), and earnings (loss) per share or non-GAAP earnings (loss) per share. PROS uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating PROS' ongoing operational performance and cloud transition. Non-GAAP gross margin can be compared to gross margin which can be calculated from the condensed consolidated statements of loss by dividing gross profit by total revenue. Non-GAAP gross margin is similarly calculated but first adds back to gross profit the portion of certain of the non-GAAP adjustments described below attributable to cost of revenue. Non-GAAP subscription margin can be compared to subscription margin which can be calculated from the condensed consolidated statements of loss by dividing subscription gross profit (subscription revenue minus subscription cost) by subscription revenue. Non-GAAP subscription margin is similarly calculated but first subtracts out from subscription cost the portion of certain of the non-GAAP adjustments described below attributable to cost of subscription. These items and amounts are presented in the Supplemental Schedule of Non-GAAP Financial Measures.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure as detailed above. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release, and can be found, along with other financial information, in the investor relations portion of our website. PROS' use of non-GAAP financial measures may not be consistent with the presentations by similar companies in PROS' industry. PROS has also provided in this release certain forward-looking non-GAAP financial measures, including non-GAAP income (loss) from operations, annual recurring revenue, non-GAAP earnings (loss) per share, adjusted EBITDA, free cash flow, non-GAAP tax rates, and calculated billings (collectively the "non-GAAP financial measures") as follows:

**Non-GAAP income (loss) from operations:** Non-GAAP income (loss) from operations excludes the impact of share-based compensation, amortization of acquisition-related intangibles and severance. Non-GAAP income (loss) from operations excludes the following items from non-GAAP estimates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Share-Based Compensation**: Although share-based compensation is an important aspect of compensation for our employees and executives, our share-based compensation expense can vary because of changes in our stock price and market conditions at the time of grant, varying valuation methodologies, and the variety of award types. Since share-based compensation expense can vary for reasons that are generally unrelated to our performance during any particular period, we believe this could make it difficult for investors to compare our current financial results to previous and future periods. Therefore, we believe it is useful to exclude share-based compensation in order to better understand our business performance and allow investors to compare our operating results with peer companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Amortization of Acquisition-Related Intangibles**: We view amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company's research and development efforts, trade names, customer lists and customer relationships, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Severance:** Severance costs relate to the separation of our Chief Operations Officer in Q1 2022 and costs related to other internal role consolidations as well as severance cost incurred in Q4 2022 as the Company reprioritized its investments to focus on supporting key growth areas of its business. As a result of this reprioritization, the Company incurred severance, employee benefits, outplacement and related costs. These amounts are unrelated to our core performance during any particular period, and therefore, we believe it is useful to exclude these amounts in order to better understand our business performance and allow investors to compare our results with peer companies.

**Non-GAAP earnings (loss) per share**: Non-GAAP net income (loss) excludes the items listed above as excluded from non-GAAP income (loss) from operations and also excludes amortization of debt issuance costs, loss (gain) on equity investments, net and the taxes related to these items and the items excluded from non-GAAP income (loss) from operations. Estimates of non-GAAP earnings (loss) per share are calculated by dividing estimates for non-GAAP net income (loss) by our estimate of

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weighted average shares outstanding for the future period. In addition to the items listed above as excluded from non-GAAP income (loss) from operations, non-GAAP net income (loss) excludes the following items from non-GAAP estimates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Amortization of Debt Issuance Costs:** Amortization of debt issuance costs are related to our convertible notes. These amounts are unrelated to our core performance during any particular period, and therefore, we believe it is useful to exclude these amounts in order to better understand our business performance and allow investors to compare our results with peer companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Loss (Gain) on Equity Investments, net:** Loss (gain) on equity investments, net relate to observable price changes for equity investments without a readily determinable fair value identified during the quarters ended September 30, 2022 and December 31, 2022, including other-than-temporary loss. These amounts are unrelated to our core performance during any particular period, and therefore, we believe it is useful to exclude these amounts in order to better understand our business performance and allow investors to compare our results with peer companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Taxes**: We exclude the tax consequences associated with non-GAAP items to provide investors with a useful comparison of our operating results to prior periods and to our peer companies because such amounts can vary significantly. In the fourth quarter of 2014, we concluded that it is more likely than not that we will be unable to fully realize our deferred tax assets and accordingly, established a valuation allowance against those assets. The ongoing impact of the valuation allowance on our non-GAAP effective tax rate has been eliminated to allow investors to better understand our business performance and compare our operating results with peer companies.

**Annual Recurring Revenue:** Annual Recurring Revenue ("ARR") is used to assess the trajectory of our cloud business. ARR means, as of a specified date, the contracted recurring revenue, including contracts with a future start date, together with annualized overage fees incurred above contracted minimum transactions, and excluding perpetual and term license agreements. ARR should be viewed independently of revenue and any other GAAP measure. Subscription ARR is calculated in the same manner, but excludes maintenance and support ARR.

**Non-GAAP Tax Rate**: The estimated non-GAAP effective tax rate adjusts the tax effect to quantify the impact of the excluded non-GAAP items.

**Adjusted EBITDA:** Adjusted EBITDA is defined as GAAP net income (loss) before interest expense, provision for income taxes, depreciation and amortization, as adjusted to eliminate the effect of stock-based compensation cost, severance, amortization of acquisition-related intangibles, and depreciation and amortization. Adjusted EBITDA should not be considered as an alternative to net income (loss) as an indicator of our operating performance.

**Free Cash Flow:** Free cash flow is a non-GAAP financial measure which is defined as net cash provided by (used in) operating activities, excluding severance payments, less capital expenditures (excluding expenditures for PROS new headquarters), purchases of other (non-acquisition-related) intangible assets and capitalized internal-use software development costs.

**Calculated Billings:** Calculated billings is defined as total subscription, maintenance and support revenue plus the change in recurring deferred revenue in a given period.

These non-GAAP estimates are not measurements of financial performance prepared in accordance with GAAP, and we are unable to reconcile these forward-looking non-GAAP financial measures to their directly comparable GAAP financial measures because the information described above which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.

**Investor Contact:**

PROS Investor Relations <br>Belinda Overdeput

713-335-5879

ir@pros.com

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**PROS Holdings, Inc.**

**Condensed Consolidated Balance Sheets**

(In thousands, except share and per share amounts)

(Unaudited)

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2021** |
| **Assets:** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $203627 | $227553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other receivables, net of allowance of $609 and $1,206, respectively | 48178 | 40581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred costs, current | 6032 | 5772 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid and other current assets | 9441 | 9623 |
| Total current assets | 267278 | 283529 |
| Property and equipment, net | 25012 | 30958 |
| Operating lease right-of-use assets | 17474 | 25732 |
| Deferred costs, noncurrent | 8764 | 9510 |
| Intangibles, net | 17851 | 27618 |
| Goodwill | 107561 | 108133 |
| Other assets, noncurrent | 9012 | 9003 |
| Total assets | $452952 | $494483 |
| **Liabilities and Stockholders' (Deficit) Equity:** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | $7964 | $4034 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 12854 | 12631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and other employee benefits | 23797 | 31994 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, current | 7662 | 8457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue, current | 108659 | 97713 |
| Total current liabilities | 160936 | 154829 |
| Deferred revenue, noncurrent | 8298 | 8553 |
| Convertible debt, net, noncurrent | 289779 | 288287 |
| Operating lease liabilities, noncurrent | 28184 | 38034 |
| Other liabilities, noncurrent | 1228 | 1196 |
| Total liabilities | 488425 | 490899 |
| Stockholders' (deficit) equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.001 par value, 75,000,000 shares authorized; 50,318,726<br>and 49,201,265 shares issued, respectively; 45,638,003 and 44,520,542 shares outstanding, respectively | 50 | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 590475 | 546693 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, 4,680,723 common shares, at cost | (29847) | (29847) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (590898) | (508652) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (5253) | (4659) |
| Total stockholders' (deficit) equity | (35473) | 3584 |
| Total liabilities and stockholders' (deficit) equity | $452952 | $494483 |

---

------

**PROS Holdings, Inc.**

**Condensed Consolidated Statements of Loss**

(In thousands, except per share data)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Revenue:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscription | $53127 | $47015 | $204041 | $178006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maintenance and support | 6417 | 8390 | 28592 | 35111 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total subscription, maintenance and support | 59544 | 55405 | 232633 | 213117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Services | 11391 | 9568 | 43504 | 38306 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 70935 | 64973 | 276137 | 251423 |
| **Cost of revenue:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscription | 13685 | 12906 | 55039 | 53418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maintenance and support | 1897 | 2053 | 8004 | 8512 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cost of subscription, maintenance and support | 15582 | 14959 | 63043 | 61930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Services | 11886 | 11018 | 47037 | 42995 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 27468 | 25977 | 110080 | 104925 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 43467 | 38996 | 166057 | 146498 |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing | 23458 | 22666 | 94986 | 86445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 22241 | 21422 | 93412 | 82268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 12641 | 14161 | 54202 | 49742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related |  | 2386 |  | 2386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of fixed assets |  |  | 1551 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (14873) | (21639) | (78094) | (74343) |
| &nbsp;&nbsp;&nbsp;&nbsp;Convertible debt interest and amortization | (1576) | (1576) | (6304) | (6304) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (expense) income, net | (654) | 89 | 3084 | 308 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss before income tax provision | (17103) | (23126) | (81314) | (80339) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax provision | 244 | 483 | 932 | 870 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(17347) | $(23609) | $(82246) | $(81209) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | $(0.38) | $(0.53) | $(1.82) | $(1.83) |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average number of shares: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted | 45456 | 44438 | 45269 | 44348 |

---

------

**PROS Holdings, Inc.**

**Condensed Consolidated Statements of Cash Flows**

(In thousands)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Operating activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss  | $(17347) | $(23609) | $(82246) | $(81209) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 3124 | 3232 | 14967 | 12060 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 372 | 372 | 1491 | 1491 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 10097 | 9665 | 42714 | 35075 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 91 | 168 | (280) | (1910) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of fixed assets |  |  | 1551 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on equity investments, net | 2000 |  | (1308) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts and unbilled receivables | (2430) | 4039 | (7330) | 12560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred costs | (244) | 906 | 486 | 3202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 2283 | 1431 | 1712 | 1828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets and liabilities | (250) | 1499 | (2175) | 1534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | 1053 | (1108) | 3964 | (515) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | (791) | 113 | 26 | (426) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and other employee benefits | (803) | 4478 | (8191) | 4693 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 875 | (2156) | 10713 | (6938) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (1970) | (970) | (23906) | (18555) |
| **Investing activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (16) | (364) | (861) | (2796) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of EveryMundo, net of cash acquired |  | (79482) |  | (79482) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of equity securities | (112) | (225) | (281) | (2895) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (128) | (80071) | (1142) | (85173) |
| **Financing activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from employee stock plans |  |  | 2722 | 3111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax withholding related to net share settlement of stock awards | (1441) |  | (1653) | (352) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of notes payable |  |  |  | (288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | (1441) |  | 1069 | 2471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of foreign currency rates on cash | 342 | (48) | 53 | (324) |
| Net change in cash and cash equivalents | (3197) | (81089) | (23926) | (101581) |
| **Cash and cash equivalents:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period | 206824 | 308642 | 227553 | 329134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period | $203627 | $227553 | $203627 | $227553 |

---

------

**PROS Holdings, Inc.**

**Reconciliation of GAAP to Non-GAAP Financial Measures**

(In thousands, except per share data)

(Unaudited)

We use these non-GAAP financial measures to assist in the management of the Company because we believe that this information provides a more consistent and complete understanding of the underlying results and trends of the ongoing business due to the uniqueness of these charges.

See breakdown of the reconciling line items on page 10.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | | **Year Ended December 31,** | **Year Ended December 31,** | |
| | **2022** | **2021** | **Quarter over Quarter**<br>**% change** | **2022** | **2021** | **Year over Year**<br>**% change** |
| GAAP gross profit | $43467 | $38996 | 11% | $166057 | $146498 | 13% |
| Non-GAAP adjustments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangibles | 1441 | 752 |  | 6664 | 1948 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance | 245 |  |  | 245 |  |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 1017 | 926 |  | 3898 | 3679 |  |
| Non-GAAP gross profit | $46170 | $40674 | 14% | $176864 | $152125 | 16% |
| Non-GAAP gross margin | 65.1% | 62.6% |  | 64.0% | 60.5% |  |
| GAAP loss from operations | $(14873) | $(21639) | (31)% | $(78094) | $(74343) | 5% |
| Non-GAAP adjustments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Acquisition-related expenses |  | 2386 |  |  | 2386 |  |
| &nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangibles | 1973 | 1420 |  | 9766 | 4017 |  |
| &nbsp;&nbsp;&nbsp;Severance | 4034 |  |  | 5542 |  |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 10097 | 9665 |  | 42714 | 35075 |  |
| &nbsp;&nbsp;&nbsp;Total Non-GAAP adjustments | 16104 | 13471 |  | 58022 | 41478 |  |
| Non-GAAP income (loss) from operations | $1231 | $(8168) | (115)% | $(20072) | $(32865) | (39)% |
| Non-GAAP income (loss) from operations % of total revenue | 1.7% | (12.6)% |  | (7.3)% | (13.1)% |  |
| GAAP net loss | $(17347) | $(23609) | (27)% | $(82246) | $(81209) | 1% |
| Non-GAAP adjustments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total Non-GAAP adjustments affecting income (loss) from operations | 16104 | 13471 |  | 58022 | 41478 |  |
| &nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 372 | 372 |  | 1491 | 1491 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on equity investments, net | 2000 |  |  | (1308) |  |  |
| &nbsp;&nbsp;&nbsp;Tax impact related to non-GAAP adjustments | (62) | 2529 |  | 6016 | 9098 |  |
| Non-GAAP net income (loss) | $1067 | $(7237) | (115)% | $(18025) | $(29142) | (38)% |
| Non-GAAP diluted earnings (basic loss) per share | $0.02 | $(0.16) |  | $(0.40) | $(0.66) |  |
| Shares used in computing non-GAAP loss per share | 45833 | 44438 |  | 45269 | 44348 |  |

---

------

**PROS Holdings, Inc.**

**Supplemental Schedule of Non-GAAP Financial Measures**

**Increase (Decrease) in GAAP Amounts Reported**

(In thousands)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Cost of Subscription Items** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangibles | 1441 | 752 | 6664 | 1935 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance | 8 |  | 8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 148 | 207 | 658 | 715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of subscription items | $1597 | $959 | $7330 | $2650 |
| **Cost of Maintenance Items** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangibles |  |  |  | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 118 | 136 | 416 | 498 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of maintenance items | $118 | $136 | $416 | $511 |
| **Cost of Services Items** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance | 237 |  | 237 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 751 | 583 | 2824 | 2466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of services items | $988 | $583 | $3061 | $2466 |
| **Sales and Marketing Items** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangibles | 532 | 668 | 3102 | 2069 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance | 1503 |  | 2947 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 2947 | 3073 | 12360 | 10407 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total sales and marketing items | $4982 | $3741 | $18409 | $12476 |
| **Research and Development Items** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance | 1845 |  | 1845 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 2889 | 2421 | 12496 | 8288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total research and development items | $4734 | $2421 | $14341 | $8288 |
| **General and Administrative Items** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance | 441 |  | 505 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 3244 | 3245 | 13960 | 12701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total general and administrative items | $3685 | $3245 | $14465 | $12701 |
| **Acquisition-related expenses** | $— | $2386 | $— | $2386 |

---

------

**PROS Holdings, Inc.**

**Supplemental Reconciliation of GAAP to Non-GAAP Financial Measures**

(In thousands)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Adjusted EBITDA** |  |  |  |  |
| **GAAP Loss from Operations** | $(14873) | $(21639) | $(78094) | $(74343) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related expenses |  | 2386 |  | 2386 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangibles | 1973 | 1420 | 9766 | 4017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance | 4034 |  | 5542 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 10097 | 9665 | 42714 | 35075 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and other amortization | 1151 | 1812 | 5201 | 8043 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjusted EBITDA** | $2382 | $(6356) | $(14871) | $(24822) |
| **Net cash used in operating activities** | $(1970) | $(970) | $(23906) | $(18555) |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance | 3058 |  | 3058 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment (excluding new headquarters) | (16) | (364) | (861) | (1655) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Free Cash Flow** | $1072 | $(1334) | $(21709) | $(20210) |
| **Guidance** |  |  |  |  |
|  | **Q1 2023 Guidance** | **Q1 2023 Guidance** | **Full Year 2023 Guidance** | **Full Year 2023 Guidance** |
|  | **Low** | **High** | **Low** | **High** |
| **Adjusted EBITDA** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**GAAP Loss from Operations** | $(19900) | $(18900) | $(54400) | $(51400) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangibles | 1800 | 1800 | 6100 | 6100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance | 3000 | 3000 | 3000 | 3000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 10000 | 10000 | 43900 | 43900 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and other amortization | 1100 | 1100 | 4400 | 4400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjusted EBITDA** | $(4000) | $(3000) | $3000 | $6000 |

---

## Exhibit 99.2

![](q42022irdeck001.jpg)

PROS Holdings, Inc. Fourth Quarter 2022 Investor Presentation Updated February 9, 2023 ir@pros.com

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![](q42022irdeck002.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 2 Disclaimer / Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about our financial outlook; expectations; ability to achieve future growth and profitability; management's confidence and optimism; positioning; customer successes; demand for our software solutions; pipeline; business expansion; revenue; subscription revenue; ARR; non-GAAP earnings (loss) per share; adjusted EBITDA; free cash flow; shares outstanding and effective tax rate. The forward-looking statements contained in this presentation are based upon our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates or expectations will be achieved. Factors that could cause actual results to differ materially from those described herein include, among others, risks related to: (a) the macroeconomic environment, (b) the effects of inflation, (c) the impact of the COVID-19 pandemic, (d) cyberattacks, data breaches and breaches of security measures within our products, systems and infrastructure or products, systems and infrastructure of third parties upon whom we rely, (e) increasing business from customers and maintaining subscription renewal rates, (f) managing our growth and profit objectives effectively, (g) disruptions from our third party data center, software, data, and other unrelated service providers, (h) implementing our solutions, (i) cloud operations, (j) intellectual property and third-party software, (k) acquiring and integrating businesses and/or technologies, (l) catastrophic events, (m) operating globally, including economic and commercial disruptions, (n) potential downturns in sales and lengthy sales cycles, (o) software innovation, (p) competition, (q) market acceptance of our software innovations, (r) maintaining our corporate culture, (s) personnel risks including loss of any key employees and competition for talent, (t) expanding and training our direct and indirect sales force, (u) evolving data privacy, cyber security and data localization laws, (v) our debt repayment obligations, (w) the timing of revenue recognition and cash flow from operations, (x) migrating customers to our latest cloud solutions, and (y) returning to profitability. Additional information relating to the risks and uncertainties affecting our business is contained in our filings with the SEC. These forward-looking statements represent our expectations as of the date hereof. Subsequent events may cause these expectations to change, and PROS disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise. This presentation includes certain supplemental non-GAAP financial measures, that we believe are useful to investors as tools for assessing the comparability between periods as well as company by company. Our computation of these measures may not be comparable to other similarly titled measures computed by other companies. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, our financial information and results prepared in accordance with U.S. GAAP included in our periodic filings made with the SEC. Further information relevant to the interpretation of non-GAAP financial measures, and reconciliations of these non-GAAP financial measures to the most comparable GAAP measures, may be found in the Appendix to this presentation.

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![](q42022irdeck003.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 3 To optimize every shopping and selling experience. Our vision…

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![](q42022irdeck004.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 4 PROS at a Glance $276mm+ Total Revenue FY 2022 84% Recurring Revenue as a % of FY 2022 Total Revenue $30B+ Underpenetrated, Addressable Market Subscription Revenue Growth YoY FY 2022 60+ Countries with Customers 15% 93%+ Customer Gross Revenue Retention Rate FY 2022 Avg. Revenue Uplift Customers Generate Using PROS 8% 2T+ Transactions Processed Annually

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![](q42022irdeck005.jpg)

Business Overview

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![](q42022irdeck006.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 6 We believe the combination of artificial intelligence and omnichannel, digital selling technology is critical for businesses to meet buyers' expectations and thrive in today's everchanging markets.

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![](q42022irdeck007.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 7 Customer Buying Experience, The New Battlefield 89% of businesses expect to compete mainly on customer experience, up from just 36% in 2010 Source: Gartner

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![](q42022irdeck008.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 8 Customer Buying Experience, The New Battlefield • Speed • Transparency • Personalization • Consistency

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![](q42022irdeck009.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 9 THE CUSTOMER ECOMMERCECRM API+ Robust Product Catalogs Product and Service Configuration Performance Quoting Streamlined Sales Agreements Sales Opportunity Insights Omnichannel Price Management Customer-Specific Price Optimization Real-Time Price Delivery Common Data Model Connected Selling Workflows Shared UX Design System Artificial Intelligence ACTIONABLE INSIGHTS ACTIONABLE INSIGHTS Learn more about The PROS Platform. Marketplace

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![](q42022irdeck010.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 10 THE PASSENGER MobileAirline.com NDC API Revenue Management Dynamic Pricing Ancillary Pricing & Merchandising Bundling & Segmentation Group, Cargo & Corporate Sales Pricing & Shopping Digital Retailing Booking, Ticketing & Servicing Traditional Channels For Travel Common Data Model Connected Selling Workflows Shared UX Design System Artificial Intelligence Digital Offer Marketing ACTIONABLE INSIGHTS ACTIONABLE INSIGHTS Learn more about The PROS Platform for Travel. Marketplace

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![](q42022irdeck011.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 11 The Industry-Leading PROS Platform ✓The only single, fully connected platform in our space • B2B: PROS is the only vendor to be ranked as a Leader by industry analysts in the Price Optimization & Management and Configure-Price- Quote categories. • Travel: PROS is uniquely able to deliver an end-to-end solution that enables airlines as retailers to optimize every shopping and selling experience an airline owns. ✓A high-performance price delivery architecture PROS technology and architecture is featured as a use case of the scale cube in The Art of Scalability, showcasing extreme performance, reliability, and scalability of a distributed real-time platform. ✓Experienced, proven AI Our SaaS native solutions process over 2 trillion transactions per year to generate AI-based outcomes for our customers – that's more than 12x the number of transactions processed by Visa in a year.

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![](q42022irdeck012.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 12 Platform Strategy Provides Numerous Vectors for Growth LAND EXPAND EXTEND Highly differentiated, modularized capabilities with proven ROI and rapid time-to-value drive customer acquisition. Many expansion paths; customers can adopt new modules or capabilities, add new divisions or geographies, or expand in usage volume. Extensible platform empowers PROS partner ecosystem and customers to bring new digital selling innovations to market.

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![](q42022irdeck013.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 13 PROS is a Proven Leader in AI and Machine Learning AI and Machine Learning Solutions International Business Award 2022 Best AI-based Solution for Sales AI Breakthrough Awards 2022 Silver Globee for Business Intelligence Innovation 14th Annual Golden Bridge Business and Innovation Awards 2022 Artificial Intelligence Excellence Award for Automated Reasoning Artificial Intelligence Excellence Awards 2022 Learn more about PROS AI Neural Networks Deep Learning Reinforcement Learning Pricing Optimization Demand Forecasting Explainable AI Extensible AI

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![](q42022irdeck014.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 14 PROS Delivers Significant ROI Learn more about PROS ROI study. +8% +200 bp +67% Revenue Uplift Margin Improvement Efficiency Gain A study of 131 customers' self-reported results showed, on average, …from the use of PROS solutions.

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![](q42022irdeck015.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 15 Leading Companies Across Industries Choose PROS to Power Commerce Travel TechnologyHealthcare Chemicals & Energy Food & ConsumablesB2B Services Automotive & Industrial

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![](q42022irdeck016.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 16 Hear What PROS Customers Have to Say This is the first time in our company's recorded history that we've had inflationary pressures and actually been able to increase our margins – and that's because of PROS." VP of Pricing Fortune 500 Distributor Our industry certainly has been faced with rising material costs, transportation costs, constraints of supply, throw in a global pandemic, why don't you. The need for technology that's dynamic and flexible, it's critical for businesses in today's day and age. And having PROS be part of our technology ecosystem. That solution has allowed us to continue to be flexible. Senior Director, Pricing Solutions WESCO Anixter In the emerging digital selling landscape, customers are looking for frictionless buying experiences, with immediate responses about pricing and delivery. PROS has proved to be an excellent partner, committed to our success. Jean-Phillippe Bitouzet Saint Gobain Director, Supply Chain & Business Model See all our customer case studies and testimonials on pros.com. Our revenue management team using our new revenue management system did a fantastic job of improving yield for these markets. Well, it's only been six months since we cut over to our new RM system, the team is adapting well, the technology is clearly superior, and we have more that we can do in this space going forward. Brent Overbeek Hawaiian Airlines Chief Revenue Officer Q3 2022 Earnings Call

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![](q42022irdeck017.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 17 PROS TAM is Massive, Global and Growing $30B+ Underpenetrated, Addressable Market(1) Strategic Industries and Geographies +$9B Emerging Industries and Geographies$21B $2.4B Automotive & Industrial $1.6B Food & Consumables $1.3B Healthcare $1.2B Travel $1.0B B2B Services $800mm Technology $700mm Chemicals & Energy (1) TAM represents our estimated global total revenue and market opportunity but 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.

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![](q42022irdeck018.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 18 Go-To-Market Strategy to Drive Market Penetration Direct Sales Model Partner Ecosystem Quota-Carrying Personnel Target Industry Alignment Americas \| EMEA \| APAC Technology Partners System Integrators

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Financial Overview

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![](q42022irdeck020.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 20 Subscription Revenue Growth Trajectory ($mm, % YoY Growth) • 25% 5-Year CAGR (2017 through 2022) • Continued growth through the COVID-19 pandemic 1) 2023 dollar value and growth rate based on the mid-point of the Subscription Revenue 2023 Guidance. 2023 expectations are forward-looking statements. Given the risks, uncertainties and assumptions related to PROS' business and operations, PROS' actual future results may differ materially from these expectations. Investors should review the Company's cautionary statements and risk factors referred to in this presentation. 66.1 98.7 145.3 170.5 178.0 204.0 231.7 2017 2018 2019 2020 2021 2022 2023E 49% 17% 47% 4% 15% 1 14%

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![](q42022irdeck021.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 21 Driving Consistent Margin1 Expansion 1) For definitions of non-GAAP measures or reconciliation of non-GAAP to GAAP measures, please refer to the appendix of this presentation. 830 basis point improvement in 8 quarters 620+ basis point improvement in 8 quarters 69% 71% 72% 75% 76% 76% 77% 77% 59% 60% 61% 63% 63% 64% 64% 65% 50% 55% 60% 65% 70% 75% 80% Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Non-GAAP Subscription Gross Margin Non-GAAP Gross Margin

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![](q42022irdeck022.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 22 Fourth Quarter and Full Year 2022 Earnings Recap $mm (Except Per Share) Q4 2022 Q4 2021 Delta FY 2022 FY 2021 Delta Total Revenue $70.9 $65.0 9% $276.1 $251.4 10% Subscription Revenue $53.1 $47.0 13% $204.0 $178.0 15% Adjusted EBITDA $2.4 ($6.4) $8.7 ($14.9) ($24.8) $10.0 Free Cash Flow $1.1 ($1.3) $2.4 ($21.7) ($20.2) ($1.5) Non-GAAP (Loss) Earnings Per Share $0.02 ($0.16) $0.18 ($0.40) ($0.66) $0.26

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![](q42022irdeck023.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 23 Guidance Summary $mm (Except Per Share) Q1 2023 Guidance v. Q1 2022 at Mid-Point Full Year 2023 Guidance v. Prior Year at Mid-Point Total Revenue $70.4 to $71.4 7% $293.0 to $296.0 7% Subscription Revenue $54.0 to $54.5 11% $230.7 to $232.7 14% Subscription ARR n/a n/a $250.0 to $253.0 11% Non-GAAP Loss Per Share $(0.12) to $(0.09) $0.11 n/a n/a Adjusted EBITDA $(4.0) to $(3.0) $5.6 $3.0 to $6.0 $19.4 Free Cash Flow n/a n/a $2.0 to $6.0 $25.7 Notes: • The 2023 Guidance shown here are forward-looking statements. Given the risks, uncertainties and assumptions related to PROS' business and operations, PROS' actual future results may differ materially from these expectations. Investors should review the Company's cautionary statements and risk factors referred to in this presentation. • Based on an estimated 46 million basic weighted average shares outstanding for the first quarter of 2023 and a 22% non-GAAP estimated tax rate for the first quarter and full year 2023. • Please see appendix for a reconciliation of these non-GAAP metrics to GAAP metrics.

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![](q42022irdeck024.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 24 Supplemental Business Metrics Revenue Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Subscription $42,648 $44,224 $44,119 $47,015 $48,765 $50,386 $51,763 $53,127 Maintenance and Support $9,674 $8,570 $8,477 $8,390 $7,855 $7,249 $7,071 $6,417 Recurring Revenue $52,322 $52,794 $52,596 $55,405 $56,620 $57,635 $58,834 $59,544 Services $9,056 $9,607 $10,075 $9,568 $9,872 $10,727 $11,514 $11,391 Total Revenue $61,378 $62,401 $62,671 $64,973 $66,492 $68,362 $70,348 $70,935 Recurring Revenue % 85% 85% 84% 85% 85% 84% 84% 84% Revenue by Geography Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 United States $20,876 $21,875 $23,275 $22,866 $23,194 $23,908 $24,952 $26,307 Europe $18,692 $18,562 $18,571 $20,659 $20,823 $20,865 $20,816 $20,981 Rest of World $21,810 $21,964 $20,825 $21,448 $22,475 $23,589 $24,580 $23,647 $ in 000s

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![](q42022irdeck025.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 25 Supplemental Business Metrics Financial & Operating Metrics Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Non-GAAP Gross Margin1 59% 60% 61% 63% 63% 64% 64% 65% Non-GAAP Subscription Gross Margin1 69% 71% 72% 75% 76% 76% 77% 77% Non-GAAP Recurring Revenue Gross Margin1 71% 71% 72% 75% 76% 76% 76% 77% Adjusted EBITDA1 $(9,352) $(4,676) $(4,438) $(6,356) $(9,123) $(5,970) $(2,160) $2,382 Cash and Cash Equivalents $323,929 $318,326 $308,642 $227,553 $217,393 $215,178 $206,824 $203,627 Recurring Deferred Revenue $109,504 $97,510 $95,774 $96,133 $116,948 $103,510 $105,650 $105,468 Total Deferred Revenue $122,006 $109,131 $105,764 $106,266 $128,802 $115,485 $116,191 $116,957 TTM Recurring Calculated Billings1 $196,329 $203,468 $200,748 $213,699 $224,858 $228,255 $238,370 $241,968 Remaining Performance Obligations2 $401,300 $390,500 $373,000 $360,500 $433,100 $434,900 $442,300 $441,500 Remaining Performance Obligations - Current $191,000 $190,300 $180,500 $184,600 $201,100 $197,400 $199,300 $206,300 Free Cash Flow1 $(4,632) $(5,726) $(8,518) $(1,334) $(11,475) $(2,239) $(9,067) $1,072 Total Headcount (including contractors) 1,409 1,409 1,401 1,545 1,541 1,597 1,626 1,528 Quota-carrying Personnel – New Business 54 56 64 67 64 58 62 71 1) For definitions of non-GAAP measures or reconciliation of non-GAAP to GAAP measures, please refer to the appendix of this presentation. 2) Remaining performance obligation represents contracted revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods. $ in 000s

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Our Values

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![](q42022irdeck027.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 27 Our Mission: To Help People and Companies Outperform We are INNOVATORS Thinking creatively to find new paths to success for our people, our customers, and our business. We CARE Putting people first - our customers, employees, partners, and community - it's how our company was started, and how we'll always run it. Looking for every opportunity to create a better PROS and a better experience for our customers, and we hold ourselves accountable. We are OWNERS Learn more about our incredible culture

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![](q42022irdeck028.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 28 Governance, Security, & Environmental Sustainability Governance • LEED Silver certified global HQ • Sustainable data centers worldwide through our partnership with Microsoft • Recycling program in all offices Security PROS Board of Directors and Executive team are committed to adhering to the highest ethical values and promoting transparency. For more detail and a complete list of governance documents and charters, visit the governance page of our website. For further disclosures, read our ESG report. At PROS, security is the responsibility of everyone. We take data security and privacy seriously. ✓ ISO 27001 Certified ✓ ISO 27018 Certified ✓ SOC1 Type 2 Certified ✓ SOC2 Type 2 Certified ✓ Cloud Security Alliance Compliant ✓ GDPR Compliant For more detail on security and compliance, including detail on all certifications we hold, visit the trust and security page of our website. Environmental Sustainability

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![](q42022irdeck029.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 29 25% 25% 27% 26% 26% 29% 17% 21% 23% 24% 25% 33% 2017 2018 2019 2020 2021 2022 27% 30% 30% 29% 33% 37% 32% 35% 35% 36% 36% 2017 2018 2019 2020 2021 2022 Diversity & Inclusion PROS Employee Resource Groups (ERGs) Our ERGs are formed and led by employees, with company support, and any interested employee may join any group. Organized around common life experiences and backgrounds, they serve to champion our diversity initiatives and facilitate a workplace culture of equity and inclusion. Committed to a Diverse & Inclusive Environment We welcome and celebrate diverse perspectives, cultures and experiences. We are truly a 'people first' culture where every person is encouraged to bring their authentic selves to work and feel they belong and are valued. Our diversity in thought and action is what makes PROS a special place. Learn more Overall Representation % of All Employees Globally Management % of All Managers Globally Overall Representation % of All Employees U.S. Management % of All Managers U.S. Women at PROS Underrepresented Minorities in the U.S. 2022 figures based on 1,357 global employees as of 12/31/22 2022 figures based on 845 employees in the U.S. as of 12/31/22 Note: Underrepresented Minorities include AA, Hispanic and Multicultural For further disclosures on D&I at PROS, read our ESG report.

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Appendix

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![](q42022irdeck031.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 31 Supplemental Information – Explanation of Non-GAAP Measures PROS has provided certain financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP gross profit, non-GAAP gross margin, non-GAAP subscription gross margin, non-GAAP recurring revenue gross margin, adjusted EBITDA and free cash flow. PROS uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating PROS' ongoing operational performance and cloud transition. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure. A reconciliation of GAAP to the non-GAAP financial measures has been provided in these tables and in the earnings press release. PROS' use of non-GAAP financial measures may not be consistent with the presentations by similar companies in PROS' industry. Non-GAAP gross profit: Non-GAAP gross profit is defined as GAAP gross profit less amortization of acquisition-related intangibles, severance and share-based compensation costs allocated to cost of subscription, maintenance and support, and services. Non-GAAP gross margin is calculated as the percentage of non-GAAP gross profit divided by total revenue. Non-GAAP subscription gross margin and recurring revenue gross margin are similarly calculated to compare the non-GAAP gross profit of subscritpion revenue and recurring revenue (subscription, maintenance and support revenue), respectively, to total subscription and recurring revenue, respectively. In calculating the non-GAAP gross profit of subscription revenue, the total costs of subscription are adjusted to reduce such costs by the portion of amortization of acquisition-related intangibles, severance and share-based compensation costs allocated to cost of subscription. In calculating the non-GAAP gross profit of recurring revenue, the total costs of subscription, maintenance and support are adjusted to reduce such costs by the portion of amortization of acquisition-related intangibles, severance and share-based compensation costs allocated to cost of subscription and cost of maintenance and support. Adjusted EBITDA: Adjusted EBITDA is defined as GAAP net income (loss) before interest expense, provision for income taxes, depreciation and amortization, as adjusted to eliminate the effect of stock-based compensation cost, severance, acquisition-related expenses, amortization of acquisition-related intangibles, and depreciation and amortization. Adjusted EBITDA should not be considered as an alternative to net income (loss) as an indicator of our operating performance. Free Cash Flow: Free cash flow is a non-GAAP financial measure which is defined as net cash provided by (used in) operating activities, excluding severance payments, less capital expenditures (excluding expenditures for PROS new headquarters), purchases of other (non-acquisition-related) intangible assets and capitalized internal-use software development costs. Calculated Billings: Calculated billings is defined as total subscription, maintenance and support revenue plus the change in recurring deferred revenue in a given period.

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![](q42022irdeck032.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 32 Supplemental Reconciliation of GAAP to Non-GAAP Financial Measures – Guidance (In thousands, Unaudited) Low High Adjusted EBITDA GAAP Loss from Operations $(19,900) $(18,900) Amortization of acquisition-related intangibles 1,800 1,800 Severance 3,000 3,000 Share-based compensation 10,000 10,000 Depreciation and other amortization 1,100 1,100 Adjusted EBITDA $(4,000) $(3,000) Q1 2023 Guidance Low High Adjusted EBITDA GAAP Loss from Operations $(54,400) $(51,400) Amortization of acquisition-related intangibles 6,100 6,100 Severance 3,000 3,000 Share-based compensation 43,900 43,900 Depreciation and other amortization 4,400 4,400 Adjusted EBITDA $3,000 $6,000 Full Year 2023 Guidance

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![](q42022irdeck033.jpg)©2023 PROS, Inc. All rights reserved. Confidential and Proprietary page 33 Supplemental Information - GAAP to Non-GAAP Reconciliations (In thousands, Unaudited) Gross Profit Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 GAAP Gross Profit $34,886 $35,997 $36,619 $38,996 $39,131 $40,721 $42,738 $43,467 Amortization of acquisition-related intangibles 421 391 384 752 1,983 1,685 1,555 1,441 Severance - - - - - - - 245 Share-based compensation 826 976 951 926 825 1,006 1,050 1,017 Non-GAAP Gross Profit $36,133 $37,364 $37,954 $40,674 $41,939 $43,412 $45,343 $46,170 Non-GAAP Gross Margin 59% 60% 61% 63% 63% 64% 64% 65% Subscription Gross Profit Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 GAAP Subscription Gross Profit $28,847 $30,635 $30,997 $34,109 $34,986 $36,640 $37,934 $39,442 Amortization of acquisition-related intangibles 408 391 384 752 1,983 1,685 1,555 1,441 Severance - - - - - - - 8 Share-based compensation 148 178 182 207 151 185 174 148 Non-GAAP Subscription Gross Profit $29,403 $31,204 $31,563 $35,068 $37,120 $38,510 $39,663 $41,039 Non-GAAP Subscription Gross Margin 69% 71% 72% 75% 76% 76% 77% 77% Recurring Revenue Gross Profit Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 GAAP Recurring Revenue Gross Profit $36,263 $37,048 $37,430 $40,446 $40,674 $41,901 $43,053 $43,962 Amortization of acquisition-related intangibles 421 391 384 752 1,983 1,685 1,555 1,441 Severance - - - - - - - 8 Share-based compensation 252 305 313 343 242 283 283 266 Non-GAAP Recurring Revenue Gross Profit $36,936 $37,744 $38,127 $41,541 $42,899 $43,869 $44,981 $45,677 Non-GAAP Recurring Revenue Gross Margin 71% 71% 72% 75% 76% 76% 76% 77% Adjusted EBITDA Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 GAAP Loss From Operations $(20,590) $(16,306) $(15,808) $(21,639) $(26,503) $(20,537) $(16,181) $(14,873) Acquisition-related expenses - - - 2,386 - - - - Amortization of acquisition-related intangibles 867 885 845 1,420 2,975 2,597 2,221 1,973 Severance - - - - 1,508 - - 4,034 Share-based compensation 8,170 8,606 8,634 9,665 11,225 10,766 10,626 10,097 Depreciation and other amortization 2,201 2,139 1,891 1,812 1,672 1,204 1,174 1,151 Adjusted EBITDA $(9,352) $(4,676) $(4,438) $(6,356) $(9,123) $(5,970) $(2,160) $2,382 Free Cash Flow Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Cash Flow From Operations $(4,429) $(4,985) $(8,171) $(970) $(11,014) $(1,931) $(8,991) $(1,970) Severance - - - - - - - 3,058 Purchase of property and equipment (excluding new headquarters) (203) (741) (347) (364) (461) (308) (76) (16) Free Cash Flow $(4,632) $(5,726) $(8,518) $(1,334) $(11,475) $(2,239) $(9,067) $1,072

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Thank You pros.com

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