What is Competitive Landscape of PROS Company?

PROS Bundle

Get Full Bundle:

	5 FORCES	$15	$10
	BCG	$15	$10
	CANVAS	$15	$10
	4P's MIX	$15	$10
	PESTLE	$15	$10
	SWOT	$15	$10

TOTAL:

ADD TO CART

What is the Competitive Landscape of PROS Company?

PROS Holdings, Inc. is a significant player in AI-powered pricing and selling solutions. Its Q1 2025 results showed strong subscription revenue growth of 10% year-over-year to $70.8 million, with total revenue at $86.3 million, up 7%.

The company's strategic focus on AI and cloud-based solutions, bolstered by acquisitions, has solidified its market position. This includes a 14% subscription revenue growth and a 400% improvement in adjusted EBITDA for the full year 2024.

How does PROS stack up against its competitors in the dynamic enterprise software market?

PROS Holdings, Inc. is a significant player in the AI-powered SaaS pricing and selling solutions market. The company is particularly noted for its specialized offerings within the travel and transportation sectors.

Market Leadership in Niche Segments

PROS holds a strong position, especially in AI-powered pricing and revenue management for travel and transportation. In this specific segment, PROS commands an estimated 15% market share.

Key Product Offerings

The company's core products include Smart Price Optimization and Management, Smart Configure Price Quote (CPQ), and specialized solutions for the airline industry focused on revenue management and dynamic pricing.

Global Reach and Diversified Customer Base

PROS operates globally, with a notable presence in the US, UK, Germany, France, Ireland, and Australia. Its customer base spans manufacturing, distribution, services, travel, and technology, among others.

Strategic Shift to Cloud Solutions

The company has strategically transitioned its focus to cloud-based solutions, enhancing scalability and accessibility. This move, coupled with strategic acquisitions, supports digital transformation across various industries.

PROS has demonstrated consistent financial growth, reinforcing its market standing. For the full year 2024, total revenue reached $330.4 million, a 9% increase year-over-year, with subscription revenue climbing 14% to $266.3 million. The company's adjusted EBITDA saw a significant 400% improvement, reaching $30.0 million in 2024, and its free cash flow margin expanded to 8%. In the first quarter of 2025, PROS reported total revenue of $86.3 million, up 7% year-over-year, with subscription revenue growing 10% to $70.8 million. The subscription gross margin reached 79% in Q1 2025, an improvement of over 160 basis points. Looking ahead, PROS anticipates full-year 2025 total revenue to be between $360.0 million and $362.0 million, with subscription revenue projected between $295.5 million and $297.5 million. This sustained growth, including a 28% CAGR in subscription revenue from 2015 to 2024, highlights the company's robust market position and effective pricing strategy.

Competitive Positioning and Financial Strength

Understanding the PROS company market position analysis involves looking at its financial performance and competitive advantages. Key PROS competitors in the broader market include SAP and Oracle, though PROS holds a leading share in specific niches.

• PROS holds approximately 15% market share in AI-powered pricing and revenue management for travel and transportation.
• Competitors like SAP and Oracle hold 12% and 10% respectively in this specific segment.
• Subscription revenue grew 14% year-over-year in 2024, reaching $266.3 million.
• Adjusted EBITDA improved by 400% in 2024.
• The company projects 2025 total revenue between $360.0 million and $362.0 million.

PROS SWOT Analysis

• Complete SWOT Breakdown
• Fully Customizable
• Editable in Excel & Word
• Professional Formatting
• Investor-Ready Format

GET TEMPLATE ➔

The PROS company competitive landscape is shaped by a mix of specialized AI providers and broad enterprise software vendors. Understanding these PROS competitors is crucial for a comprehensive PROS market analysis.

Direct Competitors in AI Pricing and CPQ

Companies like Pricefx and Zilliant are key direct competitors, offering advanced AI-powered pricing and Configure, Price, Quote (CPQ) solutions. Pricefx emphasizes rapid deployment and adaptability in its cloud-native platform, directly challenging PROS in dynamic pricing. Zilliant focuses on intelligent pricing and sales guidance, targeting similar enterprise clients for revenue management.

Indirect Competition from Enterprise Software Giants

Larger players such as SAP, Oracle, and Salesforce represent significant indirect competition. SAP integrates pricing and CPQ functionalities within its extensive ERP and CRM suites, leveraging its vast customer base. Oracle offers scalable cloud solutions that support pricing applications, appealing to those seeking integrated cloud ecosystems. Salesforce, with its CRM and CPQ Cloud, provides streamlined sales automation and quoting capabilities.

Emerging Players and Niche Solutions

The market also sees disruption from venture-backed startups offering specialized AI applications. These agile players often introduce innovative, focused solutions that can quickly gain traction. The broader AI sales tools market includes platforms like Salesforce Einstein and HubSpot Sales Hub, which contribute to the overall sales optimization ecosystem, though they are not direct pricing competitors.

Strategic Partnerships and Market Dynamics

Strategic partnerships are increasingly important in shaping the competitive landscape. Collaborations, such as PROS's alliance with Commerce to enhance B2B digital commerce, allow companies to combine strengths and address market gaps. These alliances are critical for maintaining and expanding PROS market share in a dynamic environment.

PROS Pricing Strategy and Market Position

PROS's pricing strategy often centers on delivering advanced AI-driven profit optimization and sales solutions. Understanding how PROS pricing compares to its competitors is key to assessing its market position. The company aims to differentiate through sophisticated analytics and a comprehensive suite of tools for B2B pricing and CPQ software.

Competitive Advantage and SWOT Analysis

To understand what is PROS company's competitive advantage, a PROS company SWOT analysis focusing on competitors is essential. This involves evaluating strengths against rivals in areas like PROS software competitive analysis and PROS sales and operations pricing competitors. The ability to adapt to evolving market demands and leverage AI advancements is a significant factor.

The PROS company competitive landscape is characterized by intense competition, with both direct and indirect rivals vying for market share in the AI-powered pricing and sales optimization sectors. Understanding who are PROS company's main competitors requires looking at specialized firms and larger enterprise software providers alike. The PROS pricing optimization software competitive landscape, for instance, is populated by companies that offer similar capabilities, making a detailed PROS market position analysis vital. The PROS profit optimization software market is also a key area where the company faces significant competition. For a deeper dive into the customer base these companies serve, consider the Target Market of PROS.

Key Differentiators in the PROS Market

Key differentiators in the PROS software competitive analysis often revolve around the depth of AI integration, the user-friendliness of the platform, and the ability to provide tangible ROI for clients. Companies are looking for solutions that not only optimize pricing but also enhance sales efficiency and customer experience. The PROS dynamic pricing software market share is influenced by how effectively these factors are addressed.

• Advanced AI and machine learning capabilities for predictive pricing.
• Comprehensive CPQ functionalities for complex sales processes.
• Integration with existing CRM and ERP systems.
• Scalability and flexibility to adapt to diverse business needs.
• Customer support and implementation services.

PROS PESTLE Analysis

• Covers All 6 PESTLE Categories
• No Research Needed – Save Hours of Work
• Built by Experts, Trusted by Consultants
• Instant Download, Ready to Use
• 100% Editable, Fully Customizable

GET TEMPLATE ➔

The PROS company competitive landscape is defined by its advanced AI capabilities and specialized industry focus. Its primary competitive advantage lies in its leadership in revenue and pricing science, utilizing predictive AI and real-time analytics to optimize offers and pricing dynamically. This is crucial in today's market, where a significant majority of B2B buyers expect dynamic pricing, yet a smaller percentage of brands currently offer it.

AI-Powered Pricing Science Leadership

PROS leverages neural networks for sophisticated price optimization, enabling real-time adjustments based on demand, competitor pricing, and customer behavior. This advanced AI is a key differentiator in its pricing strategy.

Proprietary Cloud-Based Platform

The PROS Platform integrates AI agents, NLP, and generative AI to automate critical sales tasks like quote generation and pricing adjustments. Solutions such as Smart CPQ and Smart Price Optimization enhance sales productivity.

Continuous Innovation and Industry Recognition

The company consistently releases new features, with over 560 new innovations in 2024, including AI advancements. This commitment has led to recognition as a Leader in key industry analyst reports for CPQ applications.

Strong Customer Loyalty and Vertical Focus

A proven track record of driving profitable growth and processing a substantial volume of transactions, up 29% year-over-year in 2024, demonstrates significant customer adoption. Its specialized focus on verticals like travel and transportation provides a distinct advantage.

Understanding PROS Company's Market Rivals

PROS's competitive edge is built on its deep technological expertise and market understanding. The company's continuous investment in research and development, as detailed in its Brief History of PROS, reinforces its market position against PROS competitors.

• Advanced AI for dynamic pricing and revenue management.
• Proprietary cloud platform with integrated AI, NLP, and generative AI.
• Strong focus on specific industry verticals, particularly travel and transportation.
• Proven track record of customer success and high transaction volumes.

PROS Business Model Canvas

• Complete 9-Block Business Model Canvas
• Effortlessly Communicate Your Business Strategy
• Investor-Ready BMC Format
• 100% Editable and Customizable
• Clear and Structured Layout

GET TEMPLATE ➔

The PROS company competitive landscape is significantly influenced by the rapid integration of artificial intelligence and machine learning within B2B sales and e-commerce. The global AI marketing industry is on a trajectory to reach $107.5 billion by 2028, with a projected CAGR of 36.6% from 2024 to 2030. This growth underscores the increasing demand for AI-powered solutions that deliver personalized, automated, and intuitive customer experiences, directly impacting the need for dynamic pricing and sales optimization tools. The expansive B2B e-commerce market, anticipated to reach $36.16 trillion by 2026, further amplifies the opportunities for companies offering intelligent commerce capabilities.

However, this dynamic environment presents considerable challenges. Continuous investment in research and development is paramount to maintaining a competitive edge against emerging players and evolving AI technologies. The increasing sophistication of AI, including advanced conversational AI and real-time analytics, requires constant innovation in product offerings. Key threats to market position include aggressive new entrants utilizing cutting-edge AI, the necessity of navigating complex data privacy and AI ethics regulations, and adapting to evolving business models such as the widespread adoption of subscription services in B2B transactions. The traditional, infrequent approach to pricing is becoming obsolete, as businesses now require multiple price adjustments annually to effectively respond to volatile market conditions, including tariff changes and geopolitical shifts.

Industry Trends Driving Demand

The accelerating adoption of AI and machine learning in B2B sales and e-commerce is a primary driver. B2B buyers now expect personalized, automated, and intuitive interactions, fueling the demand for AI-driven dynamic pricing and sales optimization tools.

Market Growth and Opportunity

The B2B e-commerce market is projected to reach $36.16 trillion by 2026, presenting a vast opportunity for companies that provide intelligent commerce solutions. The global AI marketing industry's growth further highlights the potential for AI-powered B2B sales tools.

Technological Advancement Challenges

Rapid technological advancements necessitate continuous R&D investment to stay ahead of new market entrants and evolving AI capabilities. The increasing sophistication of AI tools requires constant innovation to remain competitive.

Navigating Competitive Threats

Potential threats include aggressive new competitors leveraging advanced AI, the need to comply with complex data privacy and AI ethics regulations, and adapting to changing business models like subscription services in B2B.

Future Growth Opportunities

Significant growth opportunities lie in leveraging AI for enhanced customer engagement, improved sales efficiency, and optimized forecasting. Expanding AI-powered solutions into emerging markets and further innovating product portfolios, such as generative AI tools, are key strategic avenues.

• Capitalize on the growing demand for AI in sales to boost customer engagement and sales efficiency.
• Expand AI-powered solutions into new and emerging markets.
• Continue innovating the product portfolio, including generative AI capabilities.
• Form strategic partnerships to address market gaps and broaden reach, as seen in collaborations to redefine B2B digital commerce.
• Deploy AI agents that combine natural language and numerical reasoning for intelligent automation.

PROS Porter's Five Forces Analysis

• Covers All 5 Competitive Forces in Detail
• Structured for Consultants, Students, and Founders
• 100% Editable in Microsoft Word & Excel
• Instant Digital Download – Use Immediately
• Compatible with Mac & PC – Fully Unlocked

GET TEMPLATE ➔