PROS Holdings, Inc. Reports Third Quarter 2011 Financial Results

November 3, 2011-

• Record revenue of $25.2 million, exceeded the high end of revenue guidance
• GAAP operating income of $2.6 million. Non-GAAP operating income was $4.2 million, an increase of 75% over the third quarter of 2010
• GAAP earnings per share of $0.07 per share, non-GAAP earnings per share of $0.11 per share, also above guided range

Total GAAP revenue for the third quarter of 2011 was $25.2 million, which was above the high end of the Company’s revenue guidance for the quarter, and an increase of 61% over the third quarter 2010.

CEO Andres Reiner stated, “We are pleased to see our momentum continue with our fourth straight quarter of record revenue and non-GAAP earnings that were above expectations. During the third quarter, we increased our global footprint with the addition of new customers and deepened our partnerships with existing customers. For the second year in a row one of our customers named PROS vendor of the year, reflecting our commitment to form partnerships with customers that produce exceptional results. At a time when the power of pricing is receiving increased attention, we believe PROS has never been stronger, and we are confident that our success in 2011 will drive continued momentum heading into 2012.”

For the quarter ended September 30, 2011, income from operations in accordance with GAAP, was $2.6 million, which exceeded the high end of the guidance for the quarter, compared with a loss from operations of $3.8 million in the third quarter of 2010. GAAP net income in the quarter was $1.9 million, or $0.07 per share, compared with GAAP net loss of $2.4 million, or ($0.09) per share, in the third quarter of 2010.

For the quarter ended September 30, 2011, non-GAAP income from operations was $4.2 million, which exceeded the high end of the guidance for the quarter, an increase of 75% from $2.4 million in the third quarter of 2010. Non-GAAP net income was $3.0 million, or $0.11 per share, compared with $1.5 million, or $0.06 per share, in the third quarter of 2010.

Recent Business Highlights

• Customer wins in the quarter included Air Europa, Autodesk, Kemira and Nok Air, among others
• Awarded strategic 2011 Vendor of the Year by 3663, a leading food service distributor in the United Kingdom
• Selected by Microsoft to participate in its Chemical Reference Architecture Initiative

Executive Vice President and Chief Financial Officer Charles Murphy stated, “During the third quarter we saw record revenue, marking our eighth consecutive quarter of sequential revenue growth and are proud to have reached the $100 million annual revenue run-rate. Our strong performance was the result of continued execution of our growth strategies and provides us with confidence to slightly increase our revenue expectations for the full year to the range of $96.0 to $96.5 million, which represents approximately 30% growth from 2010 at the midpoint, with increasing operating margins over last year while continuing to invest in our long-term growth.”

The attached table provides a reconciliation of GAAP to non-GAAP income from operations and net income as well as net income per share available to common stockholders for the quarter and nine months ended September 30, 2011 and 2010.

Financial Outlook

Based on information as of today, PROS anticipates the following performance for the fourth quarter of 2011:

• Total revenue in the range of $25.6 million to $26.1 million
• GAAP income from operations of $2.1 million to $2.6 million and GAAP earnings per share of $0.05 to $0.06
• Non-GAAP income from operations of $3.8 million to $4.3 million and non-GAAP earnings per share of $0.09 to $0.10, which exclude estimated non-cash share-based compensation charges of approximately $1.7 million
• GAAP and non-GAAP estimated tax rate of approximately 32%
• Estimated weighted average of 28.1 million diluted shares outstanding

Conference Call

In conjunctionwith this announcement, PROS Holdings, Inc. will host a conference call on November 3, 2011, at 4:30 p.m. (EDT) to discuss the company’s financial results. To access this call, dial (866) 700-6293 (domestic) or (617) 213-8835 (international). The pass code for the call is 82739066. Additionally, a live webcast of the conference call will be available in the “Investor Relations” section of the Company’s web site at www.pros.com.

Following the conference call, a replay will be available at (617) 801-6888 (domestic) or (888) 286-8010 (international). The replay pass code is 92030728. An archived web cast of this conference call will also be available in the “Investor Relations” section of the Company’s web site at www.pros.com.