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NYSE:PRO Company Overview - 21Nov11
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NYSE:PRO Company Overview - 21Nov11

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PROS Holdings, Inc. (NYSE:PRO) Company Overview Presentation. …

PROS Holdings, Inc. (NYSE:PRO) Company Overview Presentation.

PROS is a leading provider of prescriptive pricing and revenue management software for companies in the manufacturing, distribution, services and travel industries. PROS gives customers far greater confidence and agility in their pricing strategies by providing data-driven insights into transaction profitability, forecasting demand, recommending optimal prices for each product and deal, and streamlining pricing processes with enhanced controls and compliance. With $468 billion in revenues under management, PROS has implemented more than 500 solutions in more than 50 countries. The PROS team comprises more than 500 professionals, including 100 with advanced degrees and 25 with Ph.D.s.
StockTwits - http://stocktwits.com/PROSHoldings
Twitter - http://twitter.com/#!/mattbal4
IR Website - http://phx.corporate-ir.net/phoenix.zhtml?c=211158&p=irol-irhome
Corporate Blog - http://www.pricingleadership.com/

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  • 1. “Powering Profitability” November 21, 2011 ® Leading Provider of Enterprise Pricing Software ® ©2011 PROS Holdings, Inc. All rights reserved.
  • 2. Forward-looking StatementsIncluded in this material are forward-looking statements including,but not limited to, those related to earnings and other financialprojections. These predictions, estimates, and other forward-looking statements involve known and unknown risks anduncertainties that may cause actual results to differ materiallyfrom those expressed or implied in this presentation. We referyou to the documents we file with the Securities and ExchangeCommission, which identify and discuss important factors thatcould cause actual results to differ materially from thosediscussed in these forward-looking statements. All statementsincluded in these materials are based upon information known atthe time, and PROS Holdings assumes no obligation to updateany such statements. ® ©2011 PROS Holdings, Inc. All rights reserved. 2
  • 3. Company Overview to leverage the power of pricing to improve million revenue FY 2010, L&I growth up implementations in countries over year history Serve four major verticals across B2B & B2C Introduced two cloud product offerings in 2Q11 man-years of pricing science R&D investment ® ©2011 PROS Holdings, Inc. All rights reserved. 3
  • 4. PROS Serves B2B and B2C Markets Fortune 500 : 4 of top 20 Healthcare Wholesalers: 3 of top 7 Office & Electronics Wholesalers: 2 of top 6 Airlines: 8 of top 10 (most profitable) Automotive Services: 2 of top 5 Heavy Equipment: 2 of top 5 ® ©2011 PROS Holdings, Inc. All rights reserved. 4
  • 5. Global Partner Ecosystem System Technology ResellerIntegrators Partners Partners ® ©2011 PROS Holdings, Inc. All rights reserved. 5
  • 6. Investing for Long-term Growth sales and marketing innovation, cloud partner ecosystem, M&A ® ©2011 PROS Holdings, Inc. All rights reserved. 6
  • 7. Investment Highlights  Differentiated product leadership with proven results  Large underpenetrated global market – ~7,500 enterprise targets*  Increasing awareness of need for pricing software  Strong revenue visibility  Mid 90% maintenance renewal rate  Strong balance sheet, solid $66.4 million cash position, no debt  Q3 2011 record revenue of $25.2 million *Source: Hoovers - December 2010 ® ©2011 PROS Holdings, Inc. All rights reserved. 7
  • 8. Large Market Opportunity Enterprise ~7,500 $500M+ Targets Mid-Market $100-500M ~ 18,000 Targets Enterprise B2B Market Penetration: 3% to 5% ® Market Data Source: Hoovers December 2010 ©2011 PROS Holdings, Inc. All rights reserved. 8
  • 9. PROS Prescriptive Pricing SoftwareImprove Market Share Improve ® ©2011 PROS Holdings, Inc. All rights reserved. 9
  • 10. Prescriptive Pricing Solution Across EntirePricing Lifecycle Pocket Margin Pocket Price Willingness to Pay Cost to Serve Win/Loss Forecasting Segmentation ® ©2011 PROS Holdings, Inc. All rights reserved. 10
  • 11. Increased Visibility of Pricing Success“Successful price increases in all our segments The Price Is (More) Right: Improvedcontributed 14 percentage points to sales technology – and leadership from finance –growth.” may help companies optimize their margins. – BASF, Oct 27, 2011 – CFO Magazine, June 1, 2011 Top Concerns of CFOs for 2011 • Ability to maintain margins • Ability to forecast results • Deal with price pressure from competitors February 2011 “The single most important decision in evaluating a business is PRICING POWER.” Warren Buffett Financial Crisis Inquiry Commission Interview May 2010 ® ©2011 PROS Holdings, Inc. All rights reserved. 11
  • 12. Intensifying Market Dynamics Maximizing Profit Capture for Medical Device Manufacturers: Gain Control Over Pricing Strategies, Value Stories, and Profit Visibility Medical Design Technology July 13, 2011Fuel Intentions - Volatile fuel prices are creatingnew opportunities for some firms.CFO MagazineJuly 15, 2011 Price volatility is here to stay Financial TimesKimberly-Clark misses profit mark, will raise prices May 23, 2011The Dallas Morning NewsApril 25, 2011 Threat Builds on the Margins Companies’ Profitability Comes Under Pressure From Rising Commodity Prices Wall Street Journal Feb 11, 2011 ® ©2011 PROS Holdings, Inc. All rights reserved. 12
  • 13. Financial Model Historically High Revenue Visibility  Revenue recognized using percentage of completion  No revenue recognized at contract signing  Total FYE 2010 record backlog $107M, up 27% YOY  Mid 40% recurring revenue Diversified Revenue Mix Across Industries and Geography  Manufacturing, Distribution, Services, Travel  ~60% revenue outside US  Customers in 50 countries Strong History of Profitability and Cash Flow  12 years of non-GAAP* profitability and positive cash flow  Long-term leverage in model ® * Reconciliations of GAAP to non-GAAP financial information are included in our earnings releases ©2011 PROS Holdings, Inc. All rights reserved. available on our website. 13
  • 14. Growth Trends Non-GAAP, $ in millions PROS Revenue Trend $25.2  2010 Non-GAAP* revenue $74.2 million $23.8 $21.4 $20.2 $18.8  Record $107M backlog YE 2010  45% L&I growth 3Q11 YOY  3Q11 Operating income 16.8%  3Q11 Maintenance revenue up 17% YOY 3Q10 4Q10 1Q11 2Q11 3Q11  YTD 2011 Operating cash flow 15.7%YOY ∆ 14% 19% 24% 33% 34% ® * Reconciliations of GAAP to non-GAAP financial information are included in our earnings releases ©2011 PROS Holdings, Inc. All rights reserved. available on our website. 14
  • 15. Why We’re ConfidentPROS received a “Strong Positive” rating from Gartner.Report clearly underscores why pricing software hasbecome a strategic and mainstream business tool. MarketScope for Price Optimization and Management Software for B2B, 2011 Michael Dunne 7/29/11 ® ©2011 PROS Holdings, Inc. All rights reserved. 15

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