PROS Holdings Inc. (PRO, Financial) filed Quarterly Report for the period ended 2012-03-31.
Pros Holdings has a market cap of $529.6 million; its shares were traded at around $16.11 with a P/E ratio of 84.9 and P/S ratio of 5.5.
License and implementation revenue includes revenue from both term licenses and hosting services. Revenue from term licenses represented approximately 5.5% and 5.4% of total revenue for the three months ended March 31, 2012 and 2011, respectively. Revenue from hosting services represented approximately 2.5% and 1.4% of total revenue for the three months ended March 31, 2012 and 2011, respectively.
Maintenance and support. Maintenance and support revenue increased $1.6 million to $9.2 million for the three months ended March 31, 2012 from $7.6 million for the three months ended March 31, 2011, representing a 21% increase. The increase in maintenance and support revenue is principally the result of an increase in the number of customers for which we are providing maintenance and support services.
Cost of maintenance and support. Cost of maintenance and support increased $0.2 million to $1.9 million for the three months ended March 31, 2012 from $1.7 million for the three months ended March 31, 2011, representing a 13% increase. The increase in cost of maintenance in the first three months of 2012 when compared to the corresponding period in 2011 is attributable to an increase in expenses associated with the continued growth in our customer maintenance and support function commensurate with maintenance and support revenue growth. Maintenance and support gross margins were 79% for the three months ended March 31, 2012 as compared to 78% for the three months ended March 31, 2011.
Selling, marketing, general and administrative expenses. Selling, marketing, general and administrative expenses increased $2.4 million to $10.3 million for the three months ended March 31, 2012 from $7.9 million for the three months ended March 31, 2011, representing a 30% increase. The increase was principally due to an increase of $1.5 million in sales, marketing, general and administrative human resources costs and third party contractor expenses as a result of an increase in headcount to support our planned growth objectives. In addition, there was an increase of $0.6 million of marketing expenses resulting from increases in marketing initiatives, an increase of $0.3 million of travel expense and an increase of $0.2 million of overhead and other expenses. These increases were partially offset by a $0.2 million decrease in bad debt expense.
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Pros Holdings has a market cap of $529.6 million; its shares were traded at around $16.11 with a P/E ratio of 84.9 and P/S ratio of 5.5.
Highlight of Business Operations:
License and implementation. License and implementation revenue increased $4.0 million to $17.8 million for the three months ended March 31, 2012 from $13.8 million for the three months ended March 31, 2011, representing a 29% increase. The increase in license and implementation revenue in the three months ended March 31, 2012 was principally due to a 8% increase in the number of implementations from 78 to 84, and a 33% increase in the average revenue recognized per man-day as compared to the corresponding period of 2011. These increases were offset be a 3% decrease in the number of man-days expended that generated license and implementation revenue.License and implementation revenue includes revenue from both term licenses and hosting services. Revenue from term licenses represented approximately 5.5% and 5.4% of total revenue for the three months ended March 31, 2012 and 2011, respectively. Revenue from hosting services represented approximately 2.5% and 1.4% of total revenue for the three months ended March 31, 2012 and 2011, respectively.
Maintenance and support. Maintenance and support revenue increased $1.6 million to $9.2 million for the three months ended March 31, 2012 from $7.6 million for the three months ended March 31, 2011, representing a 21% increase. The increase in maintenance and support revenue is principally the result of an increase in the number of customers for which we are providing maintenance and support services.
Cost of maintenance and support. Cost of maintenance and support increased $0.2 million to $1.9 million for the three months ended March 31, 2012 from $1.7 million for the three months ended March 31, 2011, representing a 13% increase. The increase in cost of maintenance in the first three months of 2012 when compared to the corresponding period in 2011 is attributable to an increase in expenses associated with the continued growth in our customer maintenance and support function commensurate with maintenance and support revenue growth. Maintenance and support gross margins were 79% for the three months ended March 31, 2012 as compared to 78% for the three months ended March 31, 2011.
Selling, marketing, general and administrative expenses. Selling, marketing, general and administrative expenses increased $2.4 million to $10.3 million for the three months ended March 31, 2012 from $7.9 million for the three months ended March 31, 2011, representing a 30% increase. The increase was principally due to an increase of $1.5 million in sales, marketing, general and administrative human resources costs and third party contractor expenses as a result of an increase in headcount to support our planned growth objectives. In addition, there was an increase of $0.6 million of marketing expenses resulting from increases in marketing initiatives, an increase of $0.3 million of travel expense and an increase of $0.2 million of overhead and other expenses. These increases were partially offset by a $0.2 million decrease in bad debt expense.
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