pros analyst meeting · note: all financial metrics are non-gaap; recurring revenue includes...

©2015 PROS, Inc. All rights reserved. Confidential and Proprietary.

PROS Analyst Meeting

March 12, 2015

2 ©2015 PROS, Inc. All rights reserved. Confidential and Proprietary. 2

Included in this material are forward-looking statements including, but not limited to, those related to earnings and other financial projections. These predictions, estimates, and other forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied in this presentation. We refer you to the documents we file with the Securities and Exchange Commission, which identify and discuss important factors that could cause actual results to differ materially from those discussed in these forward-looking statements. All statements included in these materials are based upon information known at the time, and PROS Holdings assumes no obligation to update any such statements.

Forward-looking Statements


Agenda

1 Strategy – Andres Reiner, President and Chief Executive Officer

2 Finance – Stefan Schulz, Chief Financial Officer

3 Go-to-Market – Blair Crump, Chief Operating Officer

4 Product – Craig Zawada, Chief Visionary Officer

5 Q & A



Strategy -

Andres Reiner


Accelerate Awareness & Adoption sales and marketing

Extend Product Leadership Position innovation,, M&A

Increase Global Reach & Scale partner ecosystem

Accelerate Awareness & Adoption sales and marketing

Extend Product Leadership Position innovation, M&A

Increase Global Reach & Scale partner ecosystem

Investing in Growth


Growth Strategy is Working

52% 56%

49%

Note: All financial metrics are Non-GAAP; Recurring revenue includes revenue from maintenance, SaaS, cloud-based and term license offerings;

$33.1 $42.1 $49.2 $55.3 $ 81.5

$74.2

$96.6

$117.8

$144.8

$193.6

2010 2011 2012 2013 2014

Recurring Revenue Perpetual License and Services Revenue

Non-GAAP Revenue ($mm)


$33.0 $41.1 $58.6

$35.6

$48.4

$53.5

$9.1

$9.2

$25.9

$40.1

$46.1

$55.6

$117.8

$144.8

$193.6

2012 2013 2014

License Revenue Services Revenue Subscription Revenue Maintenance Revenue

Selling More Software

Note: All financial metrics are Non-GAAP

Annual Growth 2012 2013 2014

License 17% 25% 42%

Subscription 16% 2% 181%

Maintenance 19% 15% 21%

Services 32% 36% 11%

Total 22% 23% 34%

Non-GAAP Revenue ($mm)


Why We Are Confident

People Products

Customers Partners



Finance -

Stefan Schulz


Professional Experience

• Arthur Andersen (5 years)

• BMC Software (12 years)

• Lawson Software (6 years)

• Digital River (4 years)

Priorities at PROS

• Leverage solid foundation in finance

• Improve efficiency and scale to support growth

• Continue to enhance revenue model transparency

Introduction


Impacts from a strengthening US Dollar and PROS decision to lower company-performed Professional Services have the effect of lowering Total Revenue growth by approximately 500 basis points

2015 Revenue Growth – Better Than First Glance

analyst consensus

5%



Go-to-Market Strategy -

Blair Crump


2014 Highlights

Record New & Existing Customers

< 6 Month Sales Cycles, 90-120 Day Implementations

on Packaged Offerings

2X New B2B Customers Added

34% Revenue Growth

42% License Growth

>30% Bookings Growth


Investing in Scale

People

Process Programs


2015 Focus

Extend Lead in Revenue

Management & Price Optimization

Accelerate CPQ

Industry Solutions

Scale Through Partners


TECHNOLOGY PARTNERS SERVICES PARTNERS



Product Vision -

Craig Zawada


Science is proven Foundations established Right governance

structure is emerging Rightful focus on

front-line adoption

Why The Future Is Bright For Pricing


Sales Management Efficiency Front-line enablement

to grow revenue

Sales Performance Management SaaS Sales Performance Management

Mobile-Based Selling Applications

Voice of the Customer

Sales Appraisal and Evaluation Management

IMC-Enabled, Packaged CRM/ERP/CPM Applications

Speech-Driven Sales Force Automation

Strategic Account Management

Sales Coaching Solutions

Configure, Price, Quote Application Suites

Sales Analytics

Social for Sales

Mobile SFA for CPQ

Sales Objective and Quota Management

Proposal Generation Systems

Mobile Sales Force Automation for Orders/Inventory

Sales Content Management

Sales Contract Management

E-Commerce SaaS

MDM of Customer Data

Mobile Sales Force Automation for Opportunity Management

Sales Force Automation SaaS

Lead Management

Sales Training Solutions Sales Incentive Compensation Management

Territory Management

Partner Relationship Management

Price Optimization and Management

Sales Information Services

Most Sales Tools Focused On Management Or Efficiency


DATA-DRIVEN

Intelligence

Analytics

Automation

SMARTER IS BETTER

Smart Applications


PROS Unique Position: Outcomes + Execution

Win new customers

Target high

potential opps

Configure offers

that win

Close deals faster

Gain more revenue from existing customers

Sell more product

Price smarter

Reduce attrition

Predict Outcome

Deliver Guidance

Data Science

Outcomes:

• Sales growth • Profit growth • Improved

customer experience

• Salesperson

success



Q & A

pros analyst meeting · note: all financial metrics are non-gaap; recurring revenue includes...

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