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PowerSchool (PWSC) investor relations material
PowerSchool Q2 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q2 2024 revenue increased 10% year-over-year to $191.6 million, driven by subscriptions and support, meeting guidance.
Net loss attributable to PowerSchool Holdings, Inc. was $20.0 million; GAAP net loss was $25.7 million (13% of revenue).
Subscriptions and support revenue grew 16% year-over-year to $170.1 million.
Announced definitive merger agreement with Bain Capital Private Equity, expected to close in H2 2024.
Launched MyPowerHub and expanded AI-powered PowerBuddy platform.
Financial highlights
Q2 2024 gross profit: $111.8 million (58% margin); adjusted gross profit: $133.6 million (70% margin).
Adjusted EBITDA for Q2 2024: $66.6 million (34.7% margin), up 9% year-over-year.
Free cash flow for the first six months: $(159.2) million; Q2 2024 free cash flow: $(56.7) million.
Weighted average diluted shares outstanding: 203.7 million (GAAP), 205.0 million (Non-GAAP).
Deferred revenue at June 30, 2024: $213.4 million, with 97% expected to be recognized in the next 12 months.
Outlook and guidance
Merger with Bain Capital expected to close in H2 2024, subject to customary conditions.
Management suspended financial guidance and will not hold an earnings call due to the pending transaction.
Focus remains on cross-selling, innovation, and international expansion, but uncertainties persist due to the merger.
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