Shares of Pros Holdings (PRO) surged 15.65% in the pre-market session on Friday, following the company's impressive fourth-quarter 2024 earnings report and positive outlook for 2025. The stock price movement underscores the market's enthusiasm for Pros Holdings' strong performance, recovery in the travel business, and strategic focus on AI-driven innovation.
In the fourth quarter of 2024, Pros Holdings reported a 14% year-over-year increase in subscription revenue and a 10% growth in total revenue. The company achieved significant profitability improvements, delivering adjusted EBITDA of $10.9 million and generating $23.5 million in free cash flow during the quarter. For the full year 2024, Pros Holdings reported adjusted EBITDA of $30 million, a remarkable $24 million improvement compared to 2023, and free cash flow of $26.2 million, a $14.8 million increase from the previous year.
A key driver for Pros Holdings' strong performance was the recovery in the travel business. The company witnessed solid improvement in the fourth quarter, driven by airlines focusing on offer optimization and revenue management capabilities. Pros Holdings' innovative solutions like dynamic offers, continuous pricing, and dynamic ancillary pricing resonated well with customers like Air Canada and Lufthansa, who adopted these solutions to capture revenue growth and enhance the customer experience.
Pros Holdings' leadership position in the Configure Price Quote (CPQ) space was also a significant contributor to its success. The company was recently named a leader in the Gartner Magic Quadrant for Configure Price Quote applications, making a significant upward move and achieving its highest leadership ranking. This recognition highlights Pros Holdings' deep and broad platform capabilities, including advanced pricing capabilities, seamless integration with ecosystem partners, and innovative features like digital collaboration and embedded AI.
Furthermore, Pros Holdings secured impressive new customer wins and expansions across various industries, including travel, distribution, and manufacturing. These wins, combined with the company's focus on embedding AI across its platform and operations to drive innovation and efficiency, position Pros Holdings for continued growth and success in 2025 and beyond.
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