Procore Announces Fourth Quarter and Full Year 2022 Financial Results

Rhea-AI Summary

Procore Technologies, Inc. (NYSE: PCOR) reported strong financial results for Q4 and full year 2022, showcasing a 38% increase in revenue to $202 million and a year-over-year revenue growth of 40% for the full year, reaching $720 million. The company’s gross margin stood at 80% (GAAP) and 84% (non-GAAP), while short-term RPO grew 34% year-over-year, totaling $798 million. Leadership changes were announced, with Paul Lyandres transitioning to President of Fintech and Howard Fu stepping up as CFO. For 2023, Procore anticipates revenue growth of 24-25%, projecting $895-$900 million, while maintaining a non-GAAP operating margin of (6.5%) to (7.5%).

Positive

• Q4 revenue increased 38% year-over-year to $202 million.
• Full year revenue reached $720 million, a 40% increase.
• Short-term RPO grew 34% year-over-year, totaling $798 million.
• Achieved a gross revenue retention rate of 95% in 2022.
• Added 402 net new organic customers in Q4, totaling 14,488 customers.

Negative

• GAAP operating margin was (37%) in Q4 and (40%) for the full year.
• Free cash outflow for 2022 was $37 million.

Fifth Consecutive Quarter of Short Term RPO Year-Over-Year Growth Above 30%

CARPINTERIA, Calif.--(BUSINESS WIRE)-- Procore Technologies, Inc. (NYSE: PCOR), a leading global provider of construction management software, today announced financial results for the fourth quarter and full year ended December 31, 2022.

“Our strong fourth quarter performance reflects the power of our platform, our leadership position and our trusted partnership with the construction industry. We look forward to continuing this momentum as we enter 2023,” said Tooey Courtemanche, founder, president and CEO of Procore. “I’m also thrilled to share that CFO, Paul Lyandres, will be transitioning to a newly established role as President of Fintech in early May, at which time, our SVP of Finance, Howard Fu, will be promoted to CFO. These changes reinforce the incredible caliber of leadership we have as we look towards our next phase of efficient growth and continue advancing our vision of improving the lives of everyone in construction.”

“Our year-end results reflect Procore’s consistent performance and strength across multiple facets of the business,” said Paul Lyandres, CFO of Procore. “It has been an honor serving in the role of CFO, and I’m excited for the next chapter of leading the Fintech organization at Procore.”

Fourth Quarter 2022 Financial Highlights:

• Revenue was $202 million, an increase of 38% year-over-year.
  • Including a $9 million contribution from Levelset.
• GAAP gross margin was 80% and non-GAAP gross margin was 84%.
• GAAP operating margin was (37%) and non-GAAP operating margin was (8%).
• Operating cash inflow for the fourth quarter was $23 million.
• Free cash inflow for the fourth quarter was $12 million.
• Total remaining performance obligation (“RPO”) was $798 million, an increase of 32% year-over-year.
  • Short term RPO was approximately 70% of total RPO, representing an increase of 34% year-over-year.

Full Year 2022 Financial Highlights:

• Revenue was $720 million, an increase of 40% year-over-year.
  • Including a $32 million contribution from Levelset.
• GAAP gross margin was 79% and non-GAAP gross margin was 84%.
• GAAP operating margin was (40%) and non-GAAP operating margin was (10%).
• Operating cash inflow for 2022 was $13 million.
• Free cash outflow for 2022 was $37 million.

The financial results included in this press release are preliminary and will not be final until Procore files its Annual Report on Form 10-K for the period. A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Recent Business Highlights:

• Added 402 net new organic customers in the fourth quarter, ending with a total of 14,488 organic customers.
• Achieved a gross revenue retention rate of 95% for 2022.
• Ended 2022 with 3,568 full-time employees, an increase of 24% year-over-year.
• Announced a number of innovations to the Procore platform addressing challenges associated with payments, labor, preconstruction, communication and more.
• Partnered with Dodge Construction Network to release the 2022 Top Business Issues for Specialty Contractors Report, highlighting key issues impacting specialty contractors.
• Announced our expansion to Germany.
• Released inaugural 2022 Environmental, Social and Governance (“ESG”) Report, highlighting the company’s guiding principles, efforts and aspirations related to ESG.
• Named one of Construction Executive’s 2022 Top Construction Technology Firms.
• Awarded the TrustRadius 2022 Tech Cares Award.

Leadership Updates:

Today, Procore announced that Paul Lyandres, CFO of Procore, will be assuming a new role at Procore as President of Fintech. In this role, Mr. Lyandres will lead the strategic planning, direction, innovation and overall execution of Procore’s fintech initiatives. Mr. Lyandres will remain CFO until early May 2023, at which time Howard Fu, Procore’s SVP of Finance, will succeed Mr. Lyandres as CFO.

Effective as of February 21, 2023, Sarah Hodges will be joining Procore as Chief Marketing Officer (CMO). As CMO of Procore, Ms. Hodges will be responsible for the development of the strategic marketing plan and execution of all marketing activities globally in support of Procore’s financial and strategic business objectives.

First Quarter and Full Year 2023 Outlook:

Procore is providing the following guidance for the first quarter and full year 2023:

• First Quarter 2023 Outlook:
  • Revenue is expected to be in the range of $202 million to $204 million, representing year-over-year growth of 27% to 28%.
  • Non-GAAP operating margin is expected to be in the range of (8.5%) to (9.5%).
• Full Year 2023 Outlook:
  • Revenue is expected to be in the range of $895 million to $900 million, representing year-over-year growth of 24% to 25%.
  • Non-GAAP operating margin is expected to be in the range of (6.5%) to (7.5%).

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Procore’s future GAAP financial results.

Quarterly Conference Call

Procore Technologies, Inc. will hold a conference call to discuss its fourth quarter and full year results at 2:00 p.m., Pacific Time, on Thursday, February 16, 2023. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Procore and its industry that involve substantial risks and uncertainties. All statements in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or future financial or operating performance, and may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would,” or the negative of these words, or other similar terms or expressions that concern Procore’s expectations, strategy, plans, or intentions.

Procore has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that Procore believes may affect its business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors that could cause results to differ materially from Procore’s current expectations, including, but not limited to, our expectations regarding our financial performance, including revenues, expenses, and margins, and our ability to achieve or maintain future profitability, economic, and industry trends (in particular, the rate of adoption of construction management software and digitization of the construction industry, inflation, and challenging geopolitical conditions), our ability to attract new customers and retain and increase sales to existing customers, the performance of our corporate investments, our ability to expand internationally, our estimated total addressable market, and as set forth in Procore’s filings with the Securities and Exchange Commission. You should not place undue reliance on Procore’s forward-looking statements. Procore assumes no obligation to update any forward-looking statements to reflect events or circumstances that exist or change after the date on which they were made, except as required by law.

Non-GAAP Financial Measures

Procore believes that the use of certain non-GAAP financial measures as described below, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, and may assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. These non-GAAP financial measures are not prepared in accordance with U.S. generally accepted accounting principles, or GAAP.

Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Loss from Operations, Non-GAAP Operating Margin, Non-GAAP Net Loss, and Non-GAAP Net Loss per Share: Procore defines these non-GAAP financial measures as the respective GAAP measures, excluding stock-based compensation expense, amortization of acquired intangible assets, employer payroll tax related to employee stock transactions, acquisition-related expenses, and the income tax effect of non-GAAP items. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by total revenue. Non-GAAP operating margin is the ratio calculated by dividing non-GAAP loss from operations by total revenue.

Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company's non-cash expenses, Procore believes that providing non-GAAP financial measures that exclude stock-based compensation expense allow for meaningful comparisons between its operating results from period to period. The expense related to amortization of acquired intangible assets is dependent upon estimates and assumptions, which can vary significantly and are unique to each asset acquired; therefore, Procore believes non-GAAP measures that adjust for the amortization of acquired intangible assets provide investors a consistent basis for comparison across accounting periods. The amount of employer payroll tax-related items on employee stock transactions is dependent on restricted stock unit settlements, option exercises, related stock price, and other factors that are beyond Procore’s control and that do not correlate to the operation of the business. When evaluating the performance of its business and making operating plans, Procore does not consider these items (for example, when considering the impact of equity award grants, the company places a greater emphasis on overall stockholder dilution than the accounting charges associated with such grants). Additionally, acquisition-related expenses, such as transaction costs and retention payments, are expenses that are not necessarily reflective of operational performance during a period. Procore believes that the exclusion of acquisition-related expenses provides for a useful comparison of our operating results to prior periods and to its peer companies, which commonly exclude these expenses. Income tax benefits relate to the release of a portion of our valuation allowance as a result of deferred tax liabilities recorded related to prior year acquisitions that are available sources of income to realize our deferred tax assets. We exclude the income tax effect associated with our prior year acquisitions from certain of our non-GAAP financial measures because we believe that excluding this provides meaningful supplemental information regarding our operational performance. Overall, Procore believes it is useful to exclude these expenses in order to better understand the long-term performance of its core business and to facilitate comparison of its results period-over-period and to those of peer companies. All of these non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Procore's own operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to information provided by other companies in Procore's industry, as other companies in the industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on Procore's reported financial results. Further, stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in Procore's business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Procore's business.

Free Cash Flow: Procore defines free cash flow as net cash provided by (used in) operating activities, less purchases of property and equipment and capitalized software development costs. Procore believes free cash flow is an important liquidity measure of the cash (if any) that is available, after our operating activities and capital expenditures. Procore uses free cash flow in conjunction with traditional GAAP measures to assess its liquidity and evaluate the effectiveness of its business strategies. Once Procore’s business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.

About Procore

Procore is a leading global provider of construction management software. Over 1 million projects and more than $1 trillion USD in construction volume have run on Procore's platform. Procore’s platform connects key project stakeholders to solutions Procore has built specifically for the construction industry—for the owner, the general contractor, and the specialty contractor. Procore's App Marketplace has a multitude of partner solutions that integrate seamlessly with Procore’s platform, giving construction professionals the freedom to connect with what works best for them. Headquartered in Carpinteria, California, Procore has offices around the globe. Learn more at Procore.com.

PROCORE-IR

Category: Earnings

Procore Technologies, Inc. Condensed Consolidated Statements of Operations (unaudited)
	Three Months Ended December 31,								Year Ended December 31,
(in thousands, except share and per share amounts)	2022				2021				2022				2021
Revenue	$	202,053			$	146,103			$	720,203			$	514,821
Cost of revenue (1)(2)(3)(4)		40,570				29,767				148,416				98,312
Gross profit		161,483				116,336				571,787				416,509
Operating expenses:
Sales and marketing (1)(2)(3)(4)		118,170				84,285				424,976				308,511
Research and development (1)(2)(3)(4)		75,413				60,671				270,982				237,290
General and administrative (1)(3)(4)		43,102				45,830				166,283				156,635
Total operating expenses		236,685				190,786				862,241				702,436
Loss from operations		(75,202	)			(74,450	)			(290,454	)			(285,927	)
Interest income		4,966				74				7,861				175
Interest expense		(499	)			(568	)			(2,135	)			(2,328	)
Other (expense) income, net		(692	)			37				(1,737	)			(843	)
Loss before (benefit from) provision for income taxes		(71,427	)			(74,907	)			(286,465	)			(288,923	)
(Benefit from) provision for income taxes		(243	)			(23,935	)			466				(23,758	)
Net loss	$	(71,184	)		$	(50,972	)		$	(286,931	)		$	(265,165	)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.51	)		$	(0.38	)		$	(2.10	)		$	(2.86	)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted		138,415,280				132,892,072				136,525,728				92,673,453

(1) Includes stock-based compensation expense as follows:
		Three Months Ended December 31,								Year Ended December 31,
		2022				2021				2022				2021
		(in thousands)
Cost of revenue		$	1,914			$	1,336			$	7,253			$	8,094
Sales and marketing			15,046				11,470				53,397				68,755
Research and development			19,352				15,413				63,262				85,040
General and administrative			10,693				13,013				38,974				65,272
Total stock-based compensation expense		$	47,005			$	41,232			$	162,886			$	227,161

(2) Includes amortization of acquired intangible assets as follows:
		Three Months Ended December 31,								Year Ended December 31,
		2022				2021				2022				2021
		(in thousands)
Cost of revenue		$	5,493			$	4,264			$	22,428			$	7,522
Sales and marketing			3,107				2,251				12,425				3,600
Research and development			854				904				3,528				2,674
Total amortization of acquired intangible assets		$	9,454			$	7,419			$	38,381			$	13,796

(3) Includes employer payroll tax on employee stock transactions as follows:
		Three Months Ended December 31,								Year Ended December 31,
		2022				2021				2022				2021
		(in thousands)
Cost of revenue		$	60			$	57			$	308			$	457
Sales and marketing			348				495				1,955				2,325
Research and development			286				398				2,474				2,606
General and administrative			171				242				1,202				1,127
Total employer payroll tax on employee stock transactions		$	865			$	1,192			$	5,939			$	6,515

(4) Includes acquisition-related expenses as follows:
		Three Months Ended December 31,								Year Ended December 31,
		2022				2021				2022				2021
		(in thousands)
Cost of revenue		$	-			$	2			$	-			$	2
Sales and marketing			655				378				1,725				488
Research and development			1,679				906				5,549				1,348
General and administrative			6				4,528				2,128				7,442
Total acquisition-related expenses		$	2,340			$	5,814			$	9,402			$	9,280

Procore Technologies, Inc. Condensed Consolidated Balance Sheets (unaudited)
		December 31,
(in thousands)		2022				2021
Assets
Current assets
Cash and cash equivalents		$	296,712			$	586,108
Marketable securities			285,493				-
Accounts receivable, net			148,683				113,977
Contract cost asset, current			23,600				17,030
Prepaid expenses and other current assets			44,731				35,173
Total current assets			799,219				752,288
Capitalized software development costs, net			58,577				27,062
Property and equipment, net			39,193				36,837
Right of use assets - finance leases			37,026				39,623
Right of use assets - operating leases			41,934				44,052
Contract cost asset, non-current			40,477				25,889
Intangible assets, net			162,953				201,977
Goodwill			539,128				540,922
Other assets			21,903				22,007
Total assets		$	1,740,410			$	1,690,657
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable		$	14,282			$	15,490
Accrued expenses			99,182				65,907
Deferred revenue, current			396,535				301,557
Other current liabilities			21,639				20,750
Total current liabilities			531,638				403,704
Deferred revenue, non-current			5,278				4,024
Finance lease liabilities, non-current			45,578				47,344
Operating lease liabilities, non-current			38,087				41,573
Other liabilities, non-current			3,049				4,723
Total liabilities			623,630				501,368
Stockholders' equity
Common stock			14				13
Additional paid-in capital			2,068,225				1,852,071
Accumulated other comprehensive loss			(2,316	)			(583	)
Accumulated deficit			(949,143	)			(662,212	)
Total stockholders' equity			1,116,780				1,189,289
Total liabilities and stockholders' equity		$	1,740,410			$	1,690,657

Remaining performance obligation:

The remaining performance obligation was $797.5 million as of December 31, 2022, approximately 70% of which is expected to be recognized as revenue within 12 months. The remaining performance obligation was $602.6 million as of December 31, 2021, approximately 70% of which was expected to be recognized as revenue within 12 months.

Procore Technologies, Inc. Condensed Consolidated Statements of Cash Flows (unaudited)
	Three Months Ended December 31,								Year Ended December 31,
(in thousands)	2022				2021				2022				2021
Operating activities
Net loss	$	(71,184	)		$	(50,972	)		$	(286,931	)		$	(265,165	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Stock-based compensation		47,005				41,232				162,886				227,161
Depreciation and amortization		16,586				13,107				63,039				36,376
Accretion of discounts on marketable debt securities, net		(1,359	)			-				(2,009	)			-
Abandonment of long-lived assets		280				-				1,344				554
Noncash operating lease expense		2,611				1,969				10,170				7,569
Unrealized foreign currency (gain) loss, net		(1,232	)			(190	)			(351	)			685
Deferred income taxes		67				(24,586	)			(283	)			(24,493	)
Provision for credit losses		1,247				532				2,584				129
Decrease (increase) in fair value of strategic investments		519				-				483				(32	)
Changes in operating assets and liabilities, net of effect of business combinations
Accounts receivable		(42,196	)			(37,970	)			(35,817	)			(34,184	)
Deferred contract cost assets		(9,385	)			(3,084	)			(21,974	)			(10,157	)
Prepaid expenses and other assets		4,456				(9,088	)			(3,754	)			(16,811	)
Accounts payable		(1,682	)			4,082				459				3,954
Accrued expenses and other liabilities		11,559				9,492				34,623				38,176
Deferred revenue		67,180				53,950				97,029				78,671
Operating lease liabilities		(1,780	)			(2,049	)			(8,890	)			(5,703	)
Net cash provided by (used in) operating activities		22,692				(3,575	)			12,608				36,730
Investing activities
Purchases of property and equipment		(2,112	)			(3,978	)			(15,782	)			(12,383	)
Capitalized software development costs		(8,865	)			(5,073	)			(33,648	)			(15,248	)
Purchases of strategic investments		(306	)			(850	)			(3,959	)			(4,300	)
Purchases of marketable securities		(76,128	)			-				(369,206	)			-
Maturities of marketable securities		85,632				-				85,632				-
Originations of materials financing		(6,739	)			-				(23,489	)			-
Customer repayments of materials financing		6,688				-				18,685				-
Acquisition of businesses, net of cash acquired		-				(489,847	)			-				(509,837	)
Settlement of post-close working capital adjustments from business combinations		-				-				1,291				-
Net cash used in investing activities		(1,830	)			(499,748	)			(340,476	)			(541,768	)
Financing activities
Proceeds from initial public offering		-				-				-				665,129
Proceeds from stock option exercises		3,019				7,773				22,364				43,086
Proceeds from employee stock purchase plan		10,620				9,475				22,133				9,475
Payments of deferred offering costs		-				(34	)			(270	)			(3,880	)
Payments of deferred business acquisition consideration		(3,870	)			-				(3,870	)			(475	)
Principal payments under finance lease agreements, net of proceeds from lease incentives		(375	)			(334	)			(1,705	)			(1,509	)
Net cash provided by financing activities		9,394				16,880				38,652				711,826
Net increase (decrease) in cash, cash equivalents and restricted cash		30,256				(486,443	)			(289,216	)			206,788
Effect of exchange rate changes on cash		1,834				211				(180	)			(829	)
Cash, cash equivalents and restricted cash, beginning of period		267,726				1,075,444				589,212				383,253
Cash, cash equivalents and restricted cash, end of period	$	299,816			$	589,212			$	299,816			$	589,212

Procore Technologies, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)
Reconciliation of gross profit and gross margin to non-GAAP gross profit and non-GAAP gross margin:
		Three Months Ended December 31,								Year Ended December 31,
		2022				2021				2022				2021
		(dollars in thousands)
Revenue		$	202,053			$	146,103			$	720,203			$	514,821
Gross profit			161,483				116,336				571,787				416,509
Stock-based compensation expense			1,914				1,336				7,253				8,094
Amortization of acquired technology intangible assets			5,493				4,264				22,428				7,522
Employer payroll tax on employee stock transactions			60				57				308				457
Acquisition-related expenses			-				2				-				2
Non-GAAP gross profit		$	168,950			$	121,995			$	601,776			$	432,584
Gross margin			80	%			80	%			79	%			81	%
Non-GAAP gross margin			84	%			83	%			84	%			84	%

Reconciliation of operating expenses to non-GAAP operating expenses:
		Three Months Ended December 31,								Year Ended December 31,
		2022				2021				2022				2021
		(dollars in thousands)
Revenue		$	202,053			$	146,103			$	720,203			$	514,821
GAAP sales and marketing			118,170				84,285				424,976				308,511
Stock-based compensation expense			(15,046	)			(11,470	)			(53,397	)			(68,755	)
Amortization of acquired intangible assets			(3,107	)			(2,251	)			(12,425	)			(3,600	)
Employer payroll tax on employee stock transactions			(348	)			(495	)			(1,955	)			(2,325	)
Acquisition-related expenses			(655	)			(378	)			(1,725	)			(488	)
Non-GAAP sales and marketing		$	99,014			$	69,691			$	355,474			$	233,343
GAAP sales and marketing as a percentage of revenue			58	%			58	%			59	%			60	%
Non-GAAP sales and marketing as a percentage of revenue			49	%			48	%			49	%			45	%

GAAP research and development			75,413				60,671				270,982				237,290
Stock-based compensation expense			(19,352	)			(15,413	)			(63,262	)			(85,040	)
Amortization of acquired intangible assets			(854	)			(904	)			(3,528	)			(2,674	)
Employer payroll tax on employee stock transactions			(286	)			(398	)			(2,474	)			(2,606	)
Acquisition-related expenses			(1,679	)			(906	)			(5,549	)			(1,348	)
Non-GAAP research and development		$	53,242			$	43,050			$	196,169			$	145,622
GAAP research and development as a percentage of revenue			37	%			42	%			38	%			46	%
Non-GAAP research and development as a percentage of revenue			26	%			29	%			27	%			28	%

GAAP general and administrative			43,102				45,830				166,283				156,635
Stock-based compensation expense			(10,693	)			(13,013	)			(38,974	)			(65,272	)
Employer payroll tax on employee stock transactions			(171	)			(242	)			(1,202	)			(1,127	)
Acquisition-related expenses			(6	)			(4,528	)			(2,128	)			(7,442	)
Non-GAAP general and administrative		$	32,232			$	28,047			$	123,979			$	82,794
GAAP general and administrative as a percentage of revenue			21	%			31	%			23	%			30	%
Non-GAAP general and administrative as a percentage of revenue			16	%			19	%			17	%			16	%

Reconciliation of loss from operations and operating margin to non-GAAP loss from operations and non-GAAP operating margin:
		Three Months Ended December 31,								Year Ended December 31,
		2022				2021				2022				2021
		(dollars in thousands)
Revenue		$	202,053			$	146,103			$	720,203			$	514,821
Loss from operations			(75,202	)			(74,450	)			(290,454	)			(285,927	)
Stock-based compensation expense			47,005				41,232				162,886				227,161
Amortization of acquired intangible assets			9,454				7,419				38,381				13,796
Employer payroll tax on employee stock transactions			865				1,192				5,939				6,515
Acquisition-related expenses			2,340				5,814				9,402				9,280
Non-GAAP loss from operations		$	(15,538	)		$	(18,793	)		$	(73,846	)		$	(29,175	)
Operating margin			(37	%)			(51	%)			(40	%)			(56	%)
Non-GAAP operating margin			(8	%)			(13	%)			(10	%)			(6	%)

Reconciliation of net loss and net loss per share to non-GAAP net loss and non-GAAP net loss per share:
		Three Months Ended December 31,								Year Ended December 31,
		2022				2021				2022				2021
		(dollars in thousands)
Revenue		$	202,053			$	146,103			$	720,203			$	514,821
Net loss			(71,184	)			(50,972	)			(286,931	)			(265,165	)
Stock-based compensation expense			47,005				41,232				162,886				227,161
Amortization of acquired intangible assets			9,454				7,419				38,381				13,796
Employer payroll tax on employee stock transactions			865				1,192				5,939				6,515
Acquisition-related expenses			2,340				5,814				9,402				9,280
Income tax effect of non-GAAP items			-				(24,151	)			62				(24,151	)
Non-GAAP net loss		$	(11,520	)		$	(19,466	)		$	(70,261	)		$	(32,564	)
Numerator:
Non-GAAP net loss		$	(11,520	)		$	(19,466	)		$	(70,261	)		$	(32,564	)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted			138,415,280				132,892,072				136,525,728				92,673,453
GAAP net loss per share, basic and diluted		$	(0.51	)		$	(0.38	)		$	(2.10	)		$	(2.86	)
Non-GAAP net loss per share, basic and diluted		$	(0.08	)		$	(0.15	)		$	(0.51	)		$	(0.35	)

Computation of free cash flow:
		Three Months Ended December 31,								Year Ended December 31,
		2022				2021				2022				2021
		(dollars in thousands)
Net cash provided by (used in) operating activities		$	22,692			$	(3,575	)		$	12,608			$	36,730
Purchases of property and equipment			(2,112	)			(3,978	)			(15,782	)			(12,383	)
Capitalized software development costs			(8,865	)			(5,073	)			(33,648	)			(15,248	)
Non-GAAP free cash flow		$	11,715			$	(12,626	)		$	(36,822	)		$	9,099

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230216005718/en/

Media Contact

Elizabeth Locke

press@procore.com

Investor Contact

Matthew Puljiz

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Source: Procore Technologies Inc.

FAQ

What were Procore's Q4 2022 earnings results for PCOR?

Procore reported Q4 2022 revenue of $202 million, a 38% increase year-over-year.

What is the outlook for Procore in 2023?

Procore expects revenue in the range of $895 million to $900 million for 2023, reflecting a growth of 24-25%.

How much did Procore grow its short-term RPO in 2022?

Procore's short-term RPO grew 34% year-over-year, reaching $798 million.

Who is the new CFO of Procore?

Howard Fu will succeed Paul Lyandres as CFO in May 2023.

What was Procore's non-GAAP operating margin in Q4 2022?

Procore's non-GAAP operating margin was (8%) in Q4 2022.