PROS Holdings, Inc. (NYSE:PRO) Q2 2024 Earnings Conference Call July 30, 2024 4:45 AM ET

Company Participants

Belinda Overdeput - Head of IR
Andres Reiner - President and CEO
Stefan Schulz - CFO

Conference Call Participants

Parker Lane - Stifel
Scott Berg - Needham & Company
Nehal Chokshi - Northland Capital Markets

Operator

Greetings. Welcome to the PROS Holding Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. As a reminder, this conference is being recorded.

I would now like to turn the conference call over to Belinda Overdeput, Senior Director of Investor Relations.

Belinda Overdeput

Thank you, Operator. Good afternoon, everyone, and thank you for joining us. Our earnings press release, SEC filings, and a replay of today's call can be found on the Investor Relations section of our website at pros.com. Our prepared remarks are also available on our website and will be replaced by the official transcript, which includes participant questions once available. With me on today's call is, Andres Reiner, President and Chief Executive Officer, and Stefan Schulz, Chief Financial Officer.

Please note that some of the commentary today will include forward-looking statements, including, without limitation, those about our strategy, future business prospects, and market opportunities, and our financial projections and guidance. Actual results could differ materially from such statements in our forecast. For more information, please refer the risk factors described in our SEC filings. PROS assumes no obligation to update any forward-looking statements to reflect future events or circumstances.

As a reminder, during the call, we will discuss non-GAAP metrics. Reconciliations between each non-GAAP measure and the most directly comparable GAAP measure, to the extent available without unreasonable effort, are available in our earnings press release.

With that, I'll turn the call over to you, Andres.

Andres Reiner

Thank you, Belinda. Good afternoon, everyone, and thank you for joining us on today's call. We delivered a solid second quarter, exceeding the high end of our guidance ranges across all metrics. We grew subscription revenue by 14% and total revenue by 8% while achieving significant profitability milestones.

Year-to-date, we've delivered a 554% improvement in adjusted EBITDA, and a 112% improvement in free cash flow year-over-year, with both metrics yielding positive first half results despite seasonally high expenses.

In Q2, we also achieved our long-term goal of 80% non-GAAP subscription gross margin. I'm extremely proud of our team for building the market-leading profit and revenue optimization platform, which drives immense value for customers powering 4.1 trillion transactions a year while delivering expanded subscription gross margins.