Pros

To help people and companies outdo themselves by creating a smarter way to sell in the digital economy.

Pros SWOT Analysis

Updated: October 4, 2025 • 2025-Q4 Analysis

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This analysis for Pros was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

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The PROS SWOT Analysis reveals a company at a critical inflection point. Its core strengths—a loyal enterprise base, deep vertical expertise, and proven AI—provide a solid foundation. However, persistent unprofitability, brand awareness gaps, and intense competition from suite vendors are significant hurdles. The primary opportunity lies in capitalizing on the B2B digital commerce wave and achieving profitability as its cloud business scales. The key strategic imperative must be to leverage its technological depth to create clear differentiation against 'good enough' bundled offerings from larger rivals. Successfully unifying the platform and diversifying revenue will be crucial for long-term, sustainable growth and achieving its mission to power smarter selling. The path forward requires disciplined execution on both go-to-market messaging and operational efficiency to finally translate its top-line momentum into bottom-line success.

Salesforce Oracle SAP Vendavo Zilliant

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To help people and companies outdo themselves by creating a smarter way to sell in the digital economy.

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Strengths

LOYALTY: High net revenue retention (~105%) in enterprise accounts.
VERTICALS: Dominant, deep expertise in airline revenue optimization.
TECHNOLOGY: Proven pricing science and AI models with 35+ years of data.
PARTNERSHIPS: Strong Microsoft alliance, leveraging Azure infrastructure.
CLOUD: Successful transition to a primarily recurring revenue model.

Weaknesses

PROFITABILITY: History of GAAP net losses despite revenue growth.
COMPLEXITY: Long sales/implementation cycles reported by some customers.
AWARENESS: Lower brand recognition vs. Salesforce, Oracle, and SAP.
INTEGRATION: Perceived difficulty integrating with non-Microsoft stacks.
DIVERSIFICATION: Heavy reliance on travel industry, poses cyclical risk.

Opportunities

RECOVERY: Continued rebound in global travel boosts core airline segment.
DIGITIZATION: B2B companies accelerating investment in digital commerce.
EXPANSION: Cross-sell/up-sell CPQ into pricing base & vice-versa.
PARTNERS: Growing system integrator channel can accelerate deployments.
PROFIT: Scale of cloud business reaching a profitability inflection point.

Threats

COMPETITION: CRM giants bundling CPQ/pricing for free or at low cost.
ECONOMY: Macroeconomic uncertainty may delay large enterprise projects.
INNOVATION: AI-native startups offering more agile, specialized tools.
TALENT: Intense competition for skilled AI/ML and enterprise sales talent.
CONSOLIDATION: Market consolidation could create more powerful competitors.

Key Priorities

PLATFORM: Accelerate platform unification to boost cross-sell and TCV.
PROFITABILITY: Drive cloud gross margins and op-ex leverage to reach GAAP profit.
GTM: Sharpen competitive differentiation against large suite vendors.
VERTICALS: Expand GTM focus beyond travel to diversify revenue streams.

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Pros OKR

Updated: October 4, 2025 • 2025-Q4 Analysis

The PROS OKR plan is a focused and potent blueprint for achieving profitable growth. It correctly prioritizes the most critical strategic levers: unifying the platform to increase deal size, driving operational discipline to reach profitability, sharpening the competitive message to win against giant rivals, and diversifying into new verticals to de-risk the business. The key results are specific, outcome-oriented, and directly address the weaknesses and threats identified in the SWOT analysis. This plan provides the clarity and alignment needed to rally the organization. Executing this PROS OKR with relentless focus will not only drive shareholder value but also accelerate the company's progress toward its vision of creating a smarter way to sell.

Salesforce Oracle SAP Vendavo Zilliant

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To help people and companies outdo themselves by creating a smarter way to sell in the digital economy.

WIN THE PLATFORM

Become the undisputed, unified B2B commerce leader.

UNIFY: Increase multi-product customer adoption by 25% by unifying the user experience across CPQ and Pricing.
CROSS-SELL: Launch three targeted cross-sell campaigns from pricing to CPQ, generating $10M in new pipeline.
INTEGRATE: Reduce core ERP/CRM integration time by 30% through pre-built connectors and improved APIs.
GEN-AI: Ship a generative AI co-pilot for proposal creation, used by 50% of new CPQ customers within 6 months.

DRIVE PROFITABILITY

Achieve sustainable, profitable growth for our future.

MARGINS: Increase cloud subscription gross margins from 70% to 75% through infrastructure optimization.
LEVERAGE: Reduce Sales & Marketing expense as a percentage of revenue by 5 points while hitting ARR targets.
CASHFLOW: Generate a record $25M in positive free cash flow for the fiscal year through operational discipline.
EFFICIENCY: Decrease average implementation time for new customers by 20% to accelerate time-to-value.

BEAT THE SUITES

Establish clear market differentiation and win our lane.

MESSAGING: Launch a new competitive marketing campaign, increasing win rates against CRM vendors by 15%.
VALUE: Publish 5 new vertical-specific ROI case studies showing >250% return vs. generic suite tools.
PARTNERS: Onboard and certify 10 new system integrator partners to expand our reach and implementation capacity.
BRAND: Secure a 'Leader' position in two additional key analyst reports (e.g., Gartner, Forrester) this year.

EXPAND OUR REACH

Diversify revenue by winning in new growth verticals.

VERTICALS: Increase non-travel new ACV bookings from 40% to 55% of the total for the year.
MANUFACTURING: Land 10 net-new logos in the automotive and industrial equipment manufacturing sub-verticals.
DISTRIBUTION: Grow pipeline in the technology distribution vertical by 40% through a targeted ABM program.
PRODUCT: Release a new solution package tailored for the B2B services industry, signing 5 beta customers.

METRICS

Cloud Annual Recurring Revenue (ARR) Growth: 15%+
Free Cash Flow: >$25M
Net Revenue Retention: >105%

VALUES

Be a Challenger
Care About People
Own Your Outcomes
Embrace Diversity

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Pros Retrospective

AI-Powered Insights

Claude

Gemini

GPT

PROS Q1 2024 Earnings Call Transcript and 10-Q Report
PROS Investor Day Presentations (latest available)
Gartner Magic Quadrant for CPQ Application Suites
Forrester Wave for B2B Pricing Platforms
PROS Corporate Website (Investor Relations, Leadership)
Public financial data from Yahoo Finance and Seeking Alpha

Salesforce Oracle SAP Vendavo Zilliant

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To help people and companies outdo themselves by creating a smarter way to sell in the digital economy.

Toggle Theme

What Went Well

CLOUD: Delivered consistent double-digit cloud ARR growth (~15%).
RETENTION: Maintained strong net revenue retention above 100%.
MARGINS: Improved cloud subscription gross margins year-over-year.
TRAVEL: Saw strong demand from the recovering airline industry.
CASHFLOW: Achieved positive free cash flow for the trailing twelve months.

Not So Well

PROFITABILITY: Still reporting a GAAP net loss, pressuring stock value.
SERVICES: Lower-margin professional services revenue declined.
BOOKINGS: Total bookings growth was modest, indicating longer sales cycles.
GUIDANCE: Forward-looking guidance was conservative, citing macro headwinds.
OPEX: Operating expenses remain high relative to revenue growth.

Learnings

LEVERAGE: The SaaS model is showing operating leverage as it scales.
MACRO: Large enterprise deals are facing increased scrutiny and delays.
PLATFORM: Customers buying the full platform have higher LTV.
DIVERSIFICATION: Non-travel industry growth is key to smoother results.
PROFIT: Market is now prioritizing profitability over growth-at-all-costs.

Action Items

SALES: Focus messaging on ROI and TCO to overcome budget scrutiny.
FINANCE: Continue disciplined cost management to accelerate path to profit.
PRODUCT: Bundle products to drive platform adoption and higher ACV.
MARKETING: Launch targeted campaigns in high-growth non-travel verticals.
SUCCESS: Proactively engage customers to secure renewals and find upsells.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Pros Market

AI-Powered Insights

Claude

Gemini

GPT

PROS Q1 2024 Earnings Call Transcript and 10-Q Report
PROS Investor Day Presentations (latest available)
Gartner Magic Quadrant for CPQ Application Suites
Forrester Wave for B2B Pricing Platforms
PROS Corporate Website (Investor Relations, Leadership)
Public financial data from Yahoo Finance and Seeking Alpha

Founded: 1985
Market Share: Leader in Airline Revenue Management; Challenger in B2B CPQ/Pricing.
Customer Base: Global enterprises in travel, manufacturing, distribution, services.
Category:
CPQ, Pricing Software
SIC Code: 7372 Prepackaged Software
NAICS Code: 511210 InformationT
Location: Houston, Texas
Zip Code: 77046
Congressional District: TX-7 HOUSTON
Employees: 1200

Competitors

Salesforce View Analysis

Oracle View Analysis

SAP View Analysis

Vendavo Request Analysis

Zilliant Request Analysis

Products & Services

No products or services data available

Distribution Channels

Pros Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

PROS Q1 2024 Earnings Call Transcript and 10-Q Report
PROS Investor Day Presentations (latest available)
Gartner Magic Quadrant for CPQ Application Suites
Forrester Wave for B2B Pricing Platforms
PROS Corporate Website (Investor Relations, Leadership)
Public financial data from Yahoo Finance and Seeking Alpha

Problem

B2B sales complexity leads to revenue leakage.
Manual pricing causes margin erosion.
Inconsistent quoting slows deal velocity.

Solution

Unified platform for pricing, quoting, commerce.
AI-driven price optimization and guidance.
Automated configure-price-quote (CPQ).

Key Metrics

Cloud ARR Growth
Net Revenue Retention
Free Cash Flow

Unique

35+ years of pricing science & algorithms.
Deep, proven expertise in specific verticals.
Scalable AI purpose-built for commerce.

Advantage

Proprietary data sets for training AI models.
High switching costs for embedded customers.
Strong brand reputation in airline industry.

Channels

Direct enterprise sales force
System integrator partners (Accenture, etc.)
Digital marketing and inside sales

Customer Segments

Airlines (Revenue Management)
B2B Manufacturing (Pricing, CPQ)
B2B Distribution & Services (Pricing, CPQ)

Costs

R&D for software and AI development
Sales and Marketing expenses
Cloud hosting infrastructure (Azure)

Pros Product Market Fit Analysis

Updated: October 4, 2025

PROS provides an AI-powered platform that helps large enterprises accelerate revenue and optimize profits. It replaces slow, manual quoting and pricing with a smart, digitized selling process that boosts win rates and eliminates margin leakage. This creates a superior, consistent buying experience for their customers in the digital economy, delivering measurable revenue and profit growth.

ACCELERATE revenue with faster, smarter quoting that boosts win rates.

OPTIMIZE profits with AI-powered pricing that eliminates margin leakage.

DIGITIZE selling with a unified platform for a superior buying experience.

Before State

Manual, spreadsheet-driven pricing
Inconsistent quotes across sales teams
Slow response to market changes
Revenue leakage and margin erosion

After State

AI-driven, optimized price guidance
Fast, accurate, and approved quotes
Dynamic response to market signals
Protected margins and maximized revenue

Negative Impacts

Lost deals due to slow, inaccurate quotes
Leaving money on the table; low profits
Poor customer experience, channel conflict
Inability to scale sales operations

Positive Outcomes

Increased win rates and deal velocity
2-5% revenue lift, 10-30% margin gain
Consistent omnichannel buying experience
Efficient and scalable selling process

Key Metrics

Cloud Subscription ARR Growth

~15% YoY

Net Revenue Retention

~105%

Gross Margin (Cloud)

~70%

G2 Reviews

200+ with a 4.4/5 star average rating

Requirements

Executive sponsorship for pricing initiatives
Clean master data (product, customer)
Willingness to change sales processes
Integration with existing CRM/ERP systems

Why Pros

AI-powered platform unifies pricing/selling
Vertical-specific solutions and expertise
Expert services for implementation success
Seamless integration with core tech stack

Pros Competitive Advantage

Superior pricing science and algorithms
Deep vertical expertise vs. generic tools
Unified platform for pricing and CPQ
Proven scalability for global enterprises

Proof Points

HP increased deal velocity by 30%
Lufthansa optimizes fares in real-time
Cargill standardized global pricing
Top rankings in Gartner & Forrester reports

Pros Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

PROS Q1 2024 Earnings Call Transcript and 10-Q Report
PROS Investor Day Presentations (latest available)
Gartner Magic Quadrant for CPQ Application Suites
Forrester Wave for B2B Pricing Platforms
PROS Corporate Website (Investor Relations, Leadership)
Public financial data from Yahoo Finance and Seeking Alpha

Strategic pillars derived from our vision-focused SWOT analysis

Deliver a unified, AI-powered B2B commerce platform.

Deepen penetration in travel, manufacturing, services.

Expand partnerships with SIs and technology vendors.

Drive sustainable profitable growth via cloud scale.

What You Do

AI-powered platform for pricing, quoting, and digital commerce.

Target Market

Large B2B enterprises seeking to optimize revenue and profits.

Differentiation

Deep vertical expertise, especially in airlines and manufacturing.
Proven, scalable AI and pricing science with 35+ years of data.

Revenue Streams

SaaS subscriptions for cloud software.
Professional services for implementation.
Maintenance for legacy on-premise customers.

Pros Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

PROS Q1 2024 Earnings Call Transcript and 10-Q Report
PROS Investor Day Presentations (latest available)
Gartner Magic Quadrant for CPQ Application Suites
Forrester Wave for B2B Pricing Platforms
PROS Corporate Website (Investor Relations, Leadership)
Public financial data from Yahoo Finance and Seeking Alpha

Company Operations

Organizational Structure: Functional structure with regional sales and delivery teams.
Supply Chain: Primarily digital; relies on cloud infrastructure (e.g., Microsoft Azure).
Tech Patents: Holds numerous patents in pricing science, AI, and optimization.
Website: https://pros.com

Top Clients

Board Members

Pros Competitive Forces

Threat of New Entry

MEDIUM: High barriers exist due to R&D costs, need for proprietary data, and established enterprise relationships. However, AI-native startups pose a new threat.

Supplier Power

LOW-MEDIUM: Key supplier is Microsoft for Azure cloud hosting. While a critical partner, cloud infrastructure is becoming more of a commodity.

Buyer Power

HIGH: Enterprise buyers have significant leverage, scrutinizing large deals and demanding clear ROI. They often compare against 'free' bundled tools.

Threat of Substitution

HIGH: Businesses can opt for 'good enough' solutions within their existing CRM/ERP, use consultants, or attempt to build in-house pricing tools.

Competitive Rivalry

HIGH: Intense rivalry from large suite vendors (Salesforce, Oracle, SAP) offering bundled, cheaper tools and niche specialists (Vendavo, Zilliant).

Analysis of AI Strategy

Updated: October 4, 2025 • 2025-Q4 Analysis

The PROS AI SWOT Analysis highlights a powerful strategic asset: decades of proprietary data, which provides a significant moat. This data advantage is the key to developing vertical-specific AI that larger, horizontal competitors cannot easily replicate. The immediate opportunity is to harness generative AI to automate user workflows, moving beyond analytics to tangible efficiency gains. However, PROS must overcome internal data silos and the high cost of innovation to maintain its lead. The greatest threat is not AI itself, but the commoditization of AI by platform giants. Therefore, the strategic focus must be laser-sharp: use their unique data and domain expertise to solve complex industry problems that generic AI cannot. Success hinges on making AI adoption seamless and proving its value through clear, vertical-specific ROI, thereby solidifying their position as the intelligent choice in a crowded market.

Salesforce Oracle SAP Vendavo Zilliant

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To help people and companies outdo themselves by creating a smarter way to sell in the digital economy.

Strengths

DATA: 35+ years of proprietary pricing and transaction data to train models.
ALGORITHMS: Existing, proven AI/ML models for price optimization.
EXPERTISE: In-house data science talent with deep domain knowledge.
CUSTOMERS: Blue-chip customer base provides data and validation for new AI.
CLOUD: Scalable Azure-native architecture to support AI workloads.

Weaknesses

INTEGRATION: Difficulty embedding AI insights into legacy customer workflows.
ADOPTION: Customer change management is a barrier to adopting AI guidance.
COST: High R&D and cloud compute costs for developing cutting-edge AI.
SILOS: Data from different product lines (pricing, CPQ) not fully unified.
SPEED: Slower innovation cycles compared to nimble, AI-native startups.

Opportunities

GENERATIVE: Use GenAI to auto-generate quotes, proposals, and deal insights.
PREDICTIVE: Develop AI to forecast deal churn risk and identify cross-sells.
AUTOMATION: Automate complex configuration rules and approval workflows.
PERSONALIZATION: AI-driven dynamic bundling and personalized offer creation.
EFFICIENCY: Apply AI internally to optimize code generation and support.

Threats

COMMODITIZATION: Large language models (LLMs) may commoditize basic AI features.
COMPETITION: CRM/ERP vendors embedding their own powerful AI into their suites.
ETHICS: Risk of model bias, data privacy issues, and regulatory scrutiny.
COSTS: Arms race in AI talent and computing power driving up expenses.
SECURITY: New AI-driven cybersecurity threats targeting customer data.

Key Priorities

GENERATIVE: Prioritize GenAI features for quote & proposal automation.
UNIFICATION: Create a unified data lake for cross-platform AI insights.
DIFFERENTIATION: Focus AI on vertical-specific problems suites can't solve.
ADOPTION: Build AI tools that simplify, not complicate, user workflows.

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Pros Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

PROS Q1 2024 Earnings Call Transcript and 10-Q Report
PROS Investor Day Presentations (latest available)
Gartner Magic Quadrant for CPQ Application Suites
Forrester Wave for B2B Pricing Platforms
PROS Corporate Website (Investor Relations, Leadership)
Public financial data from Yahoo Finance and Seeking Alpha

Profit: Net Loss (TTM): -$47.5M

Market Cap: $1.52 Billion (as of late 2024)

Stock Performance

Annual Report: Available on PROS Investor Relations website.

Debt: Long-Term Debt: Approx. $320M

ROI Impact: CUSTOMER: ROI of 2-5% revenue lift, 10-30% margin improvement reported.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Challenger

ICM Index

STRATEGIC ADVISOR ASSESSMENT

PROS has a strong foundation with societal-level ambition and deep data assets. However, its achievability is tempered by intense competition and historical unprofitability. The SWOT factors are balanced, with significant opportunities matched by severe threats from suite vendors. The OKRs are solid but not world-shaping. The strategy is clear, but execution on profitability and competitive differentiation will determine if it can break out of its challenger status and realize its full potential.

SWOT Factors

Upside: 83.3 Risk: 80.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Achieve consistent GAAP profitability to unlock investor value.

Sharpen GTM to win deals vs. 'good-enough' bundled tools.

Accelerate platform unification to drive larger, stickier deals.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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