PROS Holdings Inc (NYSE:PRO): Are Analysts Optimistic?

PROS Holdings Inc's (NYSE:PRO): PROS Holdings, Inc., a cloud software company, provides solutions for companies to price, configure, and sell their products and services to their customers. With the latest financial year loss of -US$77.93m and a trailing-twelve month of -US$76.57m, the US$1.18b market-cap alleviates its loss by moving closer towards its target of breakeven. As path to profitability is the topic on PRO’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for PRO’s growth and when analysts expect the company to become profitable.

According to the industry analysts covering PRO, breakeven is near. They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in . PRO is therefore projected to breakeven around a few months from now. How fast will PRO have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow 8.87% year-on-year, on average, which is a somewhat cautious outlook. If this rate turns out to be too low, PRO may become profitable faster than analysts expect.

Underlying developments driving PRO’s growth isn’t the focus of this broad overview, however, bear in mind that typically periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.

One thing I would like to bring into light with PRO is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on PRO, so if you are interested in understanding the company at a deeper level, take a look at PRO’s company page on Simply Wall St. I’ve also compiled a list of important factors you should look at:

1. Valuation: What is PRO worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether PRO is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on PROS Holdings’s board and the CEO’s back ground.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.