Pros (PRO) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2024 results, with 14% subscription revenue growth and 10% total revenue growth in Q4, and 14% and 9% respectively for the year.

• Adjusted EBITDA reached $30 million for the year, a 400% improvement over 2023, and free cash flow margin expanded by four points to 8%.

• AI-driven innovation and operational efficiency were key drivers, with record-high non-GAAP subscription gross margin and significant customer wins across industries.

• Recognized as a leader in major industry analyst reports, including Gartner and IDC, for Configure, Price, Quote (CPQ) applications.

• Net loss narrowed significantly: Q4 GAAP net loss was $2.0M vs. $10.2M prior year; full-year net loss was $20.5M vs. $56.4M.

Financial highlights

• Q4 subscription revenue: $69.3M (up 14% YoY); full-year: $266.3M (up 14% YoY).

• Q4 total revenue: $85M (up 10% YoY); full-year: $330.4M (up 9% YoY).

• Q4 adjusted EBITDA: $10.9M; full-year: $30M (up $24M YoY).

• Q4 free cash flow: $23.5M; full-year: $26.2M (up $14.8M YoY, up 130%).

• Q4 non-GAAP EPS: $0.16; full-year: $0.41.

• Exited year with $172M in cash and investments.

Outlook and guidance

• 2025 guidance: Subscription ARR of $308–311M (10% YoY growth), subscription revenue of $294–296M (11% YoY growth), total revenue of $360–362M (9% YoY growth).

• Adjusted EBITDA expected at $42–44M (up $13M YoY, up 43%); free cash flow $40–44M (up $15.8M YoY, up 61%).

• Q1 2025 guidance: Subscription revenue $70.25–70.75M (up 10% YoY), total revenue $85–86M (up 6% YoY), adjusted EBITDA $7.5–8.5M.

• Expect subscription revenue growth to accelerate through 2025, especially from travel sector.

• Long-term goal to achieve "Rule of 40" with 16–21% total revenue growth and 19–24% free cash flow margin.