Procore Announces Second Quarter 2024 Financial Results
Procore Technologies (NYSE: PCOR) reported strong financial results for Q2 2024. Revenue increased 24% year-over-year to $284 million. The company achieved a non-GAAP gross margin of 87% and a non-GAAP operating margin of 17.6%. Procore's customer base grew, with 2,191 customers contributing over $100,000 in annual recurring revenue, up 20% year-over-year. The company added 152 net new organic customers, reaching a total of 16,750.
For Q3 2024, Procore expects revenue between $286-$288 million and a non-GAAP operating margin of 9-10%. The full-year 2024 outlook projects revenue of $1,141-$1,144 million, representing 20% growth, with a non-GAAP operating margin of 10-11%.
Procore Technologies (NYSE: PCOR) ha riportato risultati finanziari robusti per il secondo trimestre del 2024. Le entrate sono aumentate del 24% rispetto all'anno precedente, raggiungendo i 284 milioni di dollari. L'azienda ha ottenuto un margine lordo non-GAAP dell'87% e un margine operativo non-GAAP del 17,6%. La base clienti di Procore è cresciuta, con 2.191 clienti che contribuiscono con oltre 100.000 dollari di entrate ricorrenti annuali, un incremento del 20% rispetto all'anno precedente. L'azienda ha aggiunto 152 nuovi clienti organici, raggiungendo un totale di 16.750.
Per il terzo trimestre del 2024, Procore prevede entrate tra i 286 e i 288 milioni di dollari e un margine operativo non-GAAP del 9-10%. Le previsioni per l'intero anno 2024 indicano entrate tra 1.141 e 1.144 milioni di dollari, con una crescita del 20%, e un margine operativo non-GAAP del 10-11%.
Procore Technologies (NYSE: PCOR) reportó resultados financieros sólidos para el segundo trimestre de 2024. Los ingresos aumentaron un 24% interanual, alcanzando los 284 millones de dólares. La compañía logró un margen bruto no-GAAP del 87% y un margen operativo no-GAAP del 17.6%. La base de clientes de Procore creció, con 2.191 clientes que contribuyen con más de 100.000 dólares en ingresos recurrentes anuales, un aumento del 20% interanual. La empresa añadió 152 nuevos clientes orgánicos, alcanzando un total de 16.750.
Para el tercer trimestre de 2024, Procore espera ingresos entre 286 y 288 millones de dólares y un margen operativo no-GAAP del 9-10%. La perspectiva para todo el año 2024 proyecta ingresos de entre 1.141 y 1.144 millones de dólares, representando un crecimiento del 20%, con un margen operativo no-GAAP del 10-11%.
Procore Technologies (NYSE: PCOR)는 2024년 2분기 강력한 재무 결과를 발표했습니다. 수익이 전년 대비 24% 증가하여 2억 8,400만 달러에 달했습니다. 회사는 비GAAP 총 마진 87%와 비GAAP 운영 마진 17.6%을 달성했습니다. Procore의 고객 수가 증가하여 매년 반복되는 수익이 100,000달러 이상인 고객이 2,191명에 이르렀으며, 이는 전년 대비 20% 증가한 수치입니다. 회사는 152명의 신규 고객을 추가하여 총 16,750명의 고객에게 도달했습니다.
2024년 3분기에는 Procore가 2억 8,600만에서 2억 8,800만 달러의 수익을 예상하고 있으며 비GAAP 운영 마진은 9-10% 범위를 예상하고 있습니다. 2024년 전체 전망은 11억 4천만에서 11억 4천4백만 달러의 수익을 예상하며, 이는 20% 성장에 해당하고 비GAAP 운영 마진은 10-11%를 나타냅니다.
Procore Technologies (NYSE: PCOR) a rapporté de solides résultats financiers pour le deuxième trimestre 2024. Le chiffre d'affaires a crû de 24 % par rapport à l'année précédente, atteignant 284 millions de dollars. L'entreprise a affiché une marge brute non-GAAP de 87% et une marge opérationnelle non-GAAP de 17,6%. La base de clients de Procore a augmenté, avec 2 191 clients contribuant à plus de 100 000 dollars de revenus récurrents annuels, soit une hausse de 20 % par rapport à l'année précédente. L'entreprise a ajouté 152 nouveaux clients organiques, portant le total à 16 750.
Pour le troisième trimestre 2024, Procore prévoit un chiffre d'affaires compris entre 286 et 288 millions de dollars et une marge opérationnelle non-GAAP de 9 à 10 %. Les prévisions pour l'année entière 2024 indiquent un chiffre d'affaires de 1 141 à 1 144 millions de dollars, représentant une croissance de 20 %, avec une marge opérationnelle non-GAAP de 10 à 11 %.
Procore Technologies (NYSE: PCOR) berichtete über solide Ergebnisse für das zweite Quartal 2024. Der Umsatz stieg im Jahresvergleich um 24% auf 284 Millionen Dollar. Das Unternehmen erzielte eine nicht-GAAP Bruttomarge von 87% und eine nicht-GAAP Betriebsmarge von 17,6%. Die Kundenbasis von Procore wuchs, wobei 2.191 Kunden über 100.000 Dollar an wiederkehrendem Jahresumsatz beitrugen, was einem Anstieg von 20% im Jahresvergleich entspricht. Das Unternehmen fügte 152 neue organische Kunden hinzu und erreichte damit insgesamt 16.750.
Für das dritte Quartal 2024 erwartet Procore einen Umsatz zwischen 286 und 288 Millionen Dollar sowie eine nicht-GAAP Betriebsmarge von 9-10%. Die Prognose für das gesamte Jahr 2024 geht von einem Umsatz zwischen 1.141 und 1.144 Millionen Dollar aus, was einem Wachstum von 20% entspricht, mit einer nicht-GAAP Betriebsmarge von 10-11%.
- Revenue increased 24% year-over-year to $284 million
- Non-GAAP gross margin of 87% and operating margin of 17.6%
- Free cash inflow of $47 million in Q2
- 20% year-over-year increase in customers contributing over $100,000 in annual recurring revenue
- Added 152 net new organic customers, reaching a total of 16,750
- Projected 20% revenue growth for full-year 2024
- GAAP operating margin was negative at -5%
- Slight decrease in gross revenue retention rate to 94%
- Projected slowdown in revenue growth for Q3 2024 (15-16% YoY) compared to Q2 2024 (24% YoY)
Insights
Procore's Q2 2024 results showcase robust growth and improving profitability, signaling a positive trajectory for the construction management software provider. The 24% year-over-year revenue increase to
The company's financial health is further underscored by its free cash inflow of
However, investors should note the GAAP operating margin of
Procore's Q2 results and strategic initiatives highlight its commitment to innovation and market leadership in the construction technology sector. The company's focus on AI integration, as evidenced by the Procore Copilot via Microsoft Teams, aligns with industry trends towards increased automation and efficiency. This move could potentially drive user adoption and stickiness, contributing to the impressive
The launch of the FedRAMP authorization process is a strategic move to tap into the lucrative government sector, potentially opening up new revenue streams. However, this process can be lengthy and resource-intensive and investors should temper short-term expectations.
The addition of 152 net new organic customers, bringing the total to 16,750, shows steady growth but also hints at the challenges of scaling in a specialized market. The 20% year-over-year increase in customers contributing over
While Procore's growth remains strong, the slight deceleration projected for Q3 (15-16% YoY growth) warrants attention. This could be due to market saturation, economic headwinds in the construction industry, or increasing competition. Procore will need to continue innovating and expanding its platform capabilities to maintain its growth trajectory in an increasingly competitive landscape.
Procore's Q2 2024 results offer valuable insights into the state of the construction technology market. The company's strong performance, with 24% year-over-year revenue growth, suggests that the digitization trend in the construction industry remains robust. CEO Tooey Courtemanche's statement about being in the "early innings of transforming one of the largest and least digitized industries" indicates significant untapped potential in this market.
The increase in customers contributing over
However, the slight deceleration in growth projected for Q3 and full-year 2024 may indicate increasing market maturity or economic headwinds affecting construction activity. The construction industry is often sensitive to economic cycles and any slowdown could impact Procore's growth trajectory.
The company's initiatives in AI and cloud security (FedRAMP) align with broader technology trends and could help differentiate Procore in a competitive market. The construction tech sector is likely to see increased competition and potential consolidation as it matures, making such innovations important for maintaining market leadership.
Procore's performance and outlook provide a positive signal for the overall construction technology market, suggesting continued growth opportunities despite potential challenges ahead.
“We are in the early innings of transforming one of the largest and least digitized industries in the world,” said Tooey Courtemanche, Founder, President, and CEO of Procore. “I am excited about the future of Procore as we embark on the next phase of our journey by connecting everyone in construction on a global platform.”
“We delivered a record operating margin in Q2 as we continue to demonstrate improved operating leverage in the business,” said Howard Fu, CFO of Procore. “Our financial model gives us the flexibility to accelerate our investment in go-to-market and capture the long-term growth opportunity ahead.”
Second Quarter 2024 Financial Highlights:
-
Revenue was
, an increase of$284 million 24% year-over-year. -
GAAP gross margin was
83% and non-GAAP gross margin was87% . -
GAAP operating margin was (
5% ) and non-GAAP operating margin was17.6% . -
Operating cash inflow for the second quarter was
.$59 million -
Free cash inflow for the second quarter was
.$47 million
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:
-
Achieved a gross revenue retention rate of
94% in the second quarter. -
Number of organic customers contributing more than
of annual recurring revenue totaled 2,191 as of June 30, 2024, an increase of$100,000 20% year-over-year. - Added 152 net new organic customers in the second quarter, ending with a total of 16,750 organic customers.
- Announced a number of innovations to the Procore platform to deepen access to AI, improve field productivity, and drive efficient cost management, including enhancements to Maps and Locations and a new integration of Procore Copilot via Microsoft Teams.
- Announced the launch of the FedRAMP authorization process to strengthen cloud security for Federal customers.
-
Recognized by
U.S. News as one of the Best Companies to Work For.
Third Quarter and Full Year 2024 Outlook:
Procore is providing the following guidance for the third quarter and full year 2024:
-
Third Quarter 2024 Outlook:
-
Revenue is expected to be in the range of
to$286 million , representing year-over-year growth of$288 million 15% to16% . -
Non-GAAP operating margin is expected to be in the range of
9% to10% .
-
Revenue is expected to be in the range of
-
Full Year 2024 Outlook:
-
Revenue is expected to be in the range of
to$1,141 million , representing year-over-year growth of$1,144 million 20% . -
Non-GAAP operating margin is expected to be in the range of
10% to11% .
-
Revenue is expected to be in the range of
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 second quarter results at 2:00 p.m., Pacific Time, on Thursday, August 1, 2024. 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), our ability to effectively manage our growth, anticipated performance, trends, growth rates, and challenges in our business and in the market in which we operate or anticipate entering into, 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, our ability to expand internationally, the effects of increased competition in our markets and our ability to compete effectively, 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
Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Income (Loss) from Operations, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Net Income 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, and acquisition-related expenses. 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 income (loss) from operations by total revenue. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Non-GAAP diluted earnings per share is computed by giving effect to all potential weighted average dilutive common stock equivalents outstanding for the period, including options to purchase common stock, restricted stock units, and shares to be issued pursuant to the employee stock purchase plan. The dilutive effect of outstanding awards is reflected in non-GAAP diluted earnings per share by application of the treasury stock method.
Stock-based compensation expense includes the net effects of capitalization and amortization of stock-based compensation expense related to capitalized software and cloud-computing arrangement implementation costs. Stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of the compensation provided to our employees. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company’s non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows 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). Since the amount of employer payroll tax-related items on employee stock transactions is highly variable due to factors outside our control, and unrelated to Procore’s core operations, operating results, revenue-generating activities, business strategy, industry, or regulatory environment, management does not consider employer payroll tax on employee stock transactions in the evaluation of the business or in making operating plans. Accordingly, Procore believes this adjustment in arriving at our non-GAAP measures provides investors with a better understanding of the performance of its core business in a manner that is consistent with management’s view of the business. 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. 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. Unlike stock-based compensation expense, employer payroll tax related to employee stock transactions is a cash expense that we will continue to incur in the future. 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.
Other Metrics
Customer Count: The aforementioned customer count excludes customers acquired from business combinations that do not have standard Procore annual contracts.
About Procore
Procore Technologies, Inc. (NYSE: PCOR) creates software for people who build the world. With a focus on providing timely and accurate data for all, Procore transforms the construction industry one project at a time - from hospitals and skyscrapers to airports and stadiums. Beyond its connected, innovative technology, Procore empowers the industry and its communities through Procore.org. For more information, visit www.procore.com.
PROCORE-IR
Category: Earnings
Procore Technologies, Inc. Condensed Consolidated Statements of Operations (unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands, except share and per share amounts) |
||||||||||||||
Revenue |
$ |
284,347 |
|
|
$ |
228,536 |
|
|
$ |
553,775 |
|
|
$ |
442,062 |
|
Cost of revenue(1)(2)(3) |
|
48,101 |
|
|
|
42,304 |
|
|
|
93,824 |
|
|
|
82,506 |
|
Gross profit |
|
236,246 |
|
|
|
186,232 |
|
|
|
459,951 |
|
|
|
359,556 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Sales and marketing(1)(2)(3)(4) |
|
127,922 |
|
|
|
125,362 |
|
|
|
248,916 |
|
|
|
242,725 |
|
Research and development(1)(2)(3)(4) |
|
72,308 |
|
|
|
73,216 |
|
|
|
142,907 |
|
|
|
153,252 |
|
General and administrative(1)(3)(4) |
|
50,792 |
|
|
|
46,383 |
|
|
|
101,810 |
|
|
|
91,571 |
|
Total operating expenses |
|
251,022 |
|
|
|
244,961 |
|
|
|
493,633 |
|
|
|
487,548 |
|
Loss from operations |
|
(14,776 |
) |
|
|
(58,729 |
) |
|
|
(33,682 |
) |
|
|
(127,992 |
) |
Interest income |
|
5,814 |
|
|
|
4,943 |
|
|
|
11,752 |
|
|
|
9,891 |
|
Interest expense |
|
(472 |
) |
|
|
(491 |
) |
|
|
(951 |
) |
|
|
(987 |
) |
Accretion income, net |
|
3,761 |
|
|
|
2,031 |
|
|
|
6,849 |
|
|
|
3,663 |
|
Other expense, net |
|
(148 |
) |
|
|
(313 |
) |
|
|
(492 |
) |
|
|
(523 |
) |
Loss before provision for income taxes |
|
(5,821 |
) |
|
|
(52,559 |
) |
|
|
(16,524 |
) |
|
|
(115,948 |
) |
Provision for income taxes |
|
490 |
|
|
|
322 |
|
|
|
753 |
|
|
|
380 |
|
Net loss |
$ |
(6,311 |
) |
|
$ |
(52,881 |
) |
|
$ |
(17,277 |
) |
|
$ |
(116,328 |
) |
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.04 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.83 |
) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
146,938,942 |
|
|
|
141,238,489 |
|
|
|
146,207,469 |
|
|
|
140,446,873 |
(1) |
Includes stock-based compensation expense and amortization of capitalized stock-based compensation as follows: |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands) |
||||||||||||||
Cost of revenue |
$ |
3,683 |
|
$ |
2,880 |
|
$ |
6,868 |
|
$ |
5,376 |
||||
Sales and marketing |
|
15,671 |
|
|
|
14,470 |
|
|
|
28,691 |
|
|
|
27,574 |
|
Research and development |
|
17,628 |
|
|
|
16,270 |
|
|
|
31,363 |
|
|
|
36,051 |
|
General and administrative |
|
13,961 |
|
|
|
9,909 |
|
|
|
25,690 |
|
|
|
20,384 |
|
Total stock-based compensation expense* |
$ |
50,943 |
|
|
$ |
43,529 |
|
|
$ |
92,612 |
|
|
$ |
89,385 |
|
*Includes amortization of capitalized stock-based compensation of |
(2) |
Includes amortization of acquired intangible assets as follows: |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands) |
||||||||||||||
Cost of revenue |
$ |
6,156 |
|
$ |
5,493 |
|
$ |
12,041 |
|
$ |
10,986 |
||||
Sales and marketing |
|
3,145 |
|
|
|
3,106 |
|
|
|
6,251 |
|
|
|
6,213 |
|
Research and development |
|
665 |
|
|
|
675 |
|
|
|
1,340 |
|
|
|
1,409 |
|
Total amortization of acquired intangible assets |
$ |
9,966 |
|
|
$ |
9,274 |
|
|
$ |
19,632 |
|
|
$ |
18,608 |
|
(3) |
Includes employer payroll tax on employee stock transactions as follows: |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands) |
||||||||||||||
Cost of revenue |
$ |
161 |
|
$ |
139 |
|
$ |
373 |
|
$ |
306 |
||||
Sales and marketing |
|
788 |
|
|
|
618 |
|
|
|
2,052 |
|
|
|
1,617 |
|
Research and development |
|
900 |
|
|
|
891 |
|
|
|
2,568 |
|
|
|
2,247 |
|
General and administrative |
|
494 |
|
|
|
503 |
|
|
|
1,539 |
|
|
|
1,135 |
|
Total employer payroll tax on employee stock transactions |
$ |
2,343 |
|
|
$ |
2,151 |
|
|
$ |
6,532 |
|
|
$ |
5,305 |
|
(4) |
Includes acquisition-related expenses as follows: |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands) |
||||||||||||||
Sales and marketing |
$ |
1,000 |
|
$ |
548 |
|
$ |
1,448 |
|
$ |
1,454 |
||||
Research and development |
|
— |
|
|
|
204 |
|
|
|
— |
|
|
|
6,188 |
|
General and administrative |
|
563 |
|
|
|
— |
|
|
|
563 |
|
|
|
— |
|
Total acquisition-related expenses |
$ |
1,563 |
|
|
$ |
752 |
|
|
$ |
2,011 |
|
|
$ |
7,642 |
|
Procore Technologies, Inc. Condensed Consolidated Balance Sheets (unaudited) |
|||||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
|
(in thousands) |
||||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
356,239 |
|
|
$ |
357,790 |
|
Marketable securities, current |
|
379,120 |
|
|
|
320,161 |
|
Accounts receivable, net |
|
158,700 |
|
|
|
206,644 |
|
Contract cost asset, current |
|
30,946 |
|
|
|
28,718 |
|
Prepaid expenses and other current assets |
|
41,471 |
|
|
|
42,421 |
|
Total current assets |
|
966,476 |
|
|
|
955,734 |
|
Marketable securities, non-current |
|
45,430 |
|
|
|
— |
|
Capitalized software development costs, net |
|
95,763 |
|
|
|
83,045 |
|
Property and equipment, net |
|
34,895 |
|
|
|
36,258 |
|
Right of use assets - finance leases |
|
33,051 |
|
|
|
34,375 |
|
Right of use assets - operating leases |
|
35,255 |
|
|
|
44,141 |
|
Contract cost asset, non-current |
|
44,193 |
|
|
|
44,564 |
|
Intangible assets, net |
|
142,293 |
|
|
|
137,546 |
|
Goodwill |
|
550,363 |
|
|
|
539,354 |
|
Other assets |
|
19,316 |
|
|
|
18,551 |
|
Total assets |
$ |
1,967,035 |
|
|
$ |
1,893,568 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
26,951 |
|
|
$ |
13,177 |
|
Accrued expenses |
|
71,253 |
|
|
|
100,075 |
|
Deferred revenue, current |
|
494,680 |
|
|
|
501,903 |
|
Other current liabilities |
|
31,894 |
|
|
|
27,275 |
|
Total current liabilities |
|
624,778 |
|
|
|
642,430 |
|
Deferred revenue, non-current |
|
6,135 |
|
|
|
7,692 |
|
Finance lease liabilities, non-current |
|
42,468 |
|
|
|
43,581 |
|
Operating lease liabilities, non-current |
|
32,578 |
|
|
|
37,923 |
|
Other liabilities, non-current |
|
5,278 |
|
|
|
6,332 |
|
Total liabilities |
|
711,237 |
|
|
|
737,958 |
|
Stockholders’ equity |
|
|
|
||||
Common stock |
|
15 |
|
|
|
15 |
|
Additional paid-in capital |
|
2,414,224 |
|
|
|
2,295,807 |
|
Accumulated other comprehensive loss |
|
(2,327 |
) |
|
|
(1,375 |
) |
Accumulated deficit |
|
(1,156,114 |
) |
|
|
(1,138,837 |
) |
Total stockholders’ equity |
|
1,255,798 |
|
|
|
1,155,610 |
|
Total liabilities and stockholders’ equity |
$ |
1,967,035 |
|
|
$ |
1,893,568 |
|
Remaining performance obligation: |
||||||||||||||
The following table presents our current and non-current RPO at the end of each period: |
||||||||||||||
|
June 30, |
|
Change |
|||||||||||
|
2024 |
|
2023 |
|
Dollar |
|
Percent |
|||||||
|
(dollars in thousands) |
|||||||||||||
Remaining performance obligations |
|
|
|
|
|
|
|
|||||||
Current |
$ |
724,832 |
|
$ |
622,639 |
|
$ |
102,193 |
|
16 |
% |
|||
Non-current |
|
310,381 |
|
|
|
226,877 |
|
|
|
83,504 |
|
|
37 |
% |
Total remaining performance obligations |
$ |
1,035,213 |
|
|
$ |
849,516 |
|
|
$ |
185,697 |
|
|
22 |
% |
Procore Technologies, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands) |
||||||||||||||
Operating activities |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(6,311 |
) |
|
$ |
(52,881 |
) |
|
$ |
(17,277 |
) |
|
$ |
(116,328 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
49,225 |
|
|
|
42,487 |
|
|
|
89,357 |
|
|
|
87,425 |
|
Depreciation and amortization |
|
20,843 |
|
|
|
17,336 |
|
|
|
40,894 |
|
|
|
34,210 |
|
Accretion of discounts on marketable debt securities, net |
|
(3,661 |
) |
|
|
(2,030 |
) |
|
|
(6,749 |
) |
|
|
(3,662 |
) |
Abandonment of long-lived assets |
|
312 |
|
|
|
94 |
|
|
|
580 |
|
|
|
535 |
|
Noncash operating lease expense |
|
2,259 |
|
|
|
2,604 |
|
|
|
4,993 |
|
|
|
5,232 |
|
Unrealized foreign currency loss, net |
|
(365 |
) |
|
|
149 |
|
|
|
714 |
|
|
|
557 |
|
Deferred income taxes |
|
1 |
|
|
|
3 |
|
|
|
2 |
|
|
|
5 |
|
Provision for credit losses |
|
216 |
|
|
|
2,004 |
|
|
|
405 |
|
|
|
3,730 |
|
Increase (decrease) in fair value of strategic investments |
|
118 |
|
|
|
42 |
|
|
|
(641 |
) |
|
|
6 |
|
Changes in operating assets and liabilities, net of effect of asset acquisitions and business combinations |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
(19,019 |
) |
|
|
(19,371 |
) |
|
|
48,994 |
|
|
|
23,577 |
|
Deferred contract cost assets |
|
(1,662 |
) |
|
|
(3,170 |
) |
|
|
(2,089 |
) |
|
|
(3,630 |
) |
Prepaid expenses and other assets |
|
494 |
|
|
|
(2,848 |
) |
|
|
(190 |
) |
|
|
1,701 |
|
Accounts payable |
|
10,124 |
|
|
|
(3,499 |
) |
|
|
13,279 |
|
|
|
1,149 |
|
Accrued expenses and other liabilities |
|
3,707 |
|
|
|
(2,929 |
) |
|
|
(30,447 |
) |
|
|
(31,110 |
) |
Deferred revenue |
|
3,231 |
|
|
|
13,093 |
|
|
|
(10,877 |
) |
|
|
19,582 |
|
Operating lease liabilities |
|
(817 |
) |
|
|
(2,761 |
) |
|
|
(3,108 |
) |
|
|
(5,381 |
) |
Net cash provided by (used in) operating activities |
|
58,695 |
|
|
|
(11,677 |
) |
|
|
127,840 |
|
|
|
17,598 |
|
Investing activities |
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
|
(1,874 |
) |
|
|
(2,521 |
) |
|
|
(3,963 |
) |
|
|
(4,694 |
) |
Capitalized software development costs |
|
(10,218 |
) |
|
|
(9,400 |
) |
|
|
(19,732 |
) |
|
|
(17,351 |
) |
Purchases of strategic investments |
|
(862 |
) |
|
|
(293 |
) |
|
|
(1,072 |
) |
|
|
(442 |
) |
Purchases of marketable securities |
|
(222,940 |
) |
|
|
(139,286 |
) |
|
|
(324,374 |
) |
|
|
(229,282 |
) |
Maturities of marketable securities |
|
118,798 |
|
|
|
118,817 |
|
|
|
226,099 |
|
|
|
222,726 |
|
Sales of marketable securities |
|
— |
|
|
|
5,452 |
|
|
|
— |
|
|
|
5,452 |
|
Originations of materials financing |
|
— |
|
|
|
(7,930 |
) |
|
|
— |
|
|
|
(17,007 |
) |
Customer repayments of materials financing |
|
202 |
|
|
|
7,638 |
|
|
|
1,483 |
|
|
|
12,996 |
|
Acquisition of a business, net of cash acquired |
|
(25,945 |
) |
|
|
— |
|
|
|
(25,945 |
) |
|
|
— |
|
Asset acquisitions, net of cash acquired |
|
(3,787 |
) |
|
|
— |
|
|
|
(3,792 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(146,626 |
) |
|
|
(27,523 |
) |
|
|
(151,296 |
) |
|
|
(27,602 |
) |
Financing activities |
|
|
|
|
|
|
|
||||||||
Proceeds from stock option exercises |
|
2,790 |
|
|
|
7,217 |
|
|
|
9,915 |
|
|
|
10,939 |
|
Proceeds from employee stock purchase plan |
|
13,187 |
|
|
|
13,006 |
|
|
|
13,187 |
|
|
|
13,006 |
|
Principal payments under finance lease agreements, net of proceeds from lease incentives |
|
(220 |
) |
|
|
(520 |
) |
|
|
(669 |
) |
|
|
(930 |
) |
Net cash provided by financing activities |
|
15,757 |
|
|
|
19,703 |
|
|
|
22,433 |
|
|
|
23,015 |
|
Net increase in cash and cash equivalents |
|
(72,174 |
) |
|
|
(19,497 |
) |
|
|
(1,023 |
) |
|
|
13,011 |
|
Effect of exchange rate changes on cash |
|
757 |
|
|
|
(53 |
) |
|
|
(528 |
) |
|
|
(309 |
) |
Cash and cash equivalents, beginning of period |
|
427,656 |
|
|
|
332,068 |
|
|
|
357,790 |
|
|
|
299,816 |
|
Cash and cash equivalents, end of period |
$ |
356,239 |
|
|
$ |
312,518 |
|
|
$ |
356,239 |
|
|
$ |
312,518 |
|
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 June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(dollars in thousands) |
||||||||||||||
Revenue |
$ |
284,347 |
|
|
$ |
228,536 |
|
|
$ |
553,775 |
|
|
$ |
442,062 |
|
Gross profit |
|
236,246 |
|
|
|
186,232 |
|
|
|
459,951 |
|
|
|
359,556 |
|
Stock-based compensation expense |
|
3,683 |
|
|
|
2,880 |
|
|
|
6,868 |
|
|
|
5,376 |
|
Amortization of acquired technology intangible assets |
|
6,156 |
|
|
|
5,493 |
|
|
|
12,041 |
|
|
|
10,986 |
|
Employer payroll tax on employee stock transactions |
|
161 |
|
|
|
139 |
|
|
|
373 |
|
|
|
306 |
|
Non-GAAP gross profit |
$ |
246,246 |
|
|
$ |
194,744 |
|
|
$ |
479,233 |
|
|
$ |
376,224 |
|
Gross margin |
|
83 |
% |
|
|
81 |
% |
|
|
83 |
% |
|
|
81 |
% |
Non-GAAP gross margin |
|
87 |
% |
|
|
85 |
% |
|
|
87 |
% |
|
|
85 |
% |
Reconciliation of operating expenses to non-GAAP operating expenses: |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(dollars in thousands) |
||||||||||||||
Revenue |
$ |
284,347 |
|
|
$ |
228,536 |
|
|
$ |
553,775 |
|
|
$ |
442,062 |
|
GAAP sales and marketing |
|
127,922 |
|
|
|
125,362 |
|
|
|
248,916 |
|
|
|
242,725 |
|
Stock-based compensation expense |
|
(15,671 |
) |
|
|
(14,470 |
) |
|
|
(28,691 |
) |
|
|
(27,574 |
) |
Amortization of acquired intangible assets |
|
(3,145 |
) |
|
|
(3,106 |
) |
|
|
(6,251 |
) |
|
|
(6,213 |
) |
Employer payroll tax on employee stock transactions |
|
(788 |
) |
|
|
(618 |
) |
|
|
(2,052 |
) |
|
|
(1,617 |
) |
Acquisition-related expenses |
|
(1,000 |
) |
|
|
(548 |
) |
|
|
(1,448 |
) |
|
|
(1,454 |
) |
Non-GAAP sales and marketing |
$ |
107,318 |
|
|
$ |
106,620 |
|
|
$ |
210,474 |
|
|
$ |
205,867 |
|
GAAP sales and marketing as a percentage of revenue |
|
45 |
% |
|
|
55 |
% |
|
|
45 |
% |
|
|
55 |
% |
Non-GAAP sales and marketing as a percentage of revenue |
|
38 |
% |
|
|
47 |
% |
|
|
38 |
% |
|
|
47 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP research and development |
$ |
72,308 |
|
|
$ |
73,216 |
|
|
$ |
142,907 |
|
|
$ |
153,252 |
|
Stock-based compensation expense |
|
(17,628 |
) |
|
|
(16,270 |
) |
|
|
(31,363 |
) |
|
|
(36,051 |
) |
Amortization of acquired intangible assets |
|
(665 |
) |
|
|
(675 |
) |
|
|
(1,340 |
) |
|
|
(1,409 |
) |
Employer payroll tax on employee stock transactions |
|
(900 |
) |
|
|
(891 |
) |
|
|
(2,568 |
) |
|
|
(2,247 |
) |
Acquisition-related expenses |
|
— |
|
|
|
(204 |
) |
|
|
— |
|
|
|
(6,188 |
) |
Non-GAAP research and development |
$ |
53,115 |
|
|
$ |
55,176 |
|
|
$ |
107,636 |
|
|
$ |
107,357 |
|
GAAP research and development as a percentage of revenue |
|
25 |
% |
|
|
32 |
% |
|
|
26 |
% |
|
|
35 |
% |
Non-GAAP research and development as a percentage of revenue |
|
19 |
% |
|
|
24 |
% |
|
|
19 |
% |
|
|
24 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP general and administrative |
$ |
50,792 |
|
|
$ |
46,383 |
|
|
$ |
101,810 |
|
|
$ |
91,571 |
|
Stock-based compensation expense |
|
(13,961 |
) |
|
|
(9,909 |
) |
|
|
(25,690 |
) |
|
|
(20,384 |
) |
Employer payroll tax on employee stock transactions |
|
(494 |
) |
|
|
(503 |
) |
|
|
(1,539 |
) |
|
|
(1,135 |
) |
Acquisition-related expenses |
|
(563 |
) |
|
|
— |
|
|
|
(563 |
) |
|
|
— |
|
Non-GAAP general and administrative |
$ |
35,774 |
|
|
$ |
35,971 |
|
|
$ |
74,018 |
|
|
$ |
70,052 |
|
GAAP general and administrative as a percentage of revenue |
|
18 |
% |
|
|
20 |
% |
|
|
18 |
% |
|
|
21 |
% |
Non-GAAP general and administrative as a percentage of revenue |
|
13 |
% |
|
|
16 |
% |
|
|
13 |
% |
|
|
16 |
% |
Reconciliation of loss from operations and operating margin to non-GAAP income (loss) from operations and non-GAAP operating margin: |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(dollars in thousands) |
||||||||||||||
Revenue |
$ |
284,347 |
|
|
$ |
228,536 |
|
|
$ |
553,775 |
|
|
$ |
442,062 |
|
Loss from operations |
|
(14,776 |
) |
|
|
(58,729 |
) |
|
|
(33,682 |
) |
|
|
(127,992 |
) |
Stock-based compensation expense |
|
50,943 |
|
|
|
43,529 |
|
|
|
92,612 |
|
|
|
89,385 |
|
Amortization of acquired intangible assets |
|
9,966 |
|
|
|
9,274 |
|
|
|
19,632 |
|
|
|
18,608 |
|
Employer payroll tax on employee stock transactions |
|
2,343 |
|
|
|
2,151 |
|
|
|
6,532 |
|
|
|
5,305 |
|
Acquisition-related expenses |
|
1,563 |
|
|
|
752 |
|
|
|
2,011 |
|
|
|
7,642 |
|
Non-GAAP income (loss) from operations |
$ |
50,039 |
|
|
$ |
(3,023 |
) |
|
$ |
87,105 |
|
|
$ |
(7,052 |
) |
Operating margin |
|
(5 |
%) |
|
|
(26 |
%) |
|
|
(6 |
%) |
|
|
(29 |
%) |
Non-GAAP operating margin |
|
18 |
% |
|
|
(1 |
%) |
|
|
16 |
% |
|
|
(2 |
%) |
Reconciliation of net loss and net loss per share to non-GAAP net income and non-GAAP net income per share: |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands, except share and per share amounts) |
||||||||||||||
Revenue |
$ |
284,347 |
|
|
$ |
228,536 |
|
|
$ |
553,775 |
|
|
$ |
442,062 |
|
Net loss |
|
(6,311 |
) |
|
|
(52,881 |
) |
|
|
(17,277 |
) |
|
|
(116,328 |
) |
Stock-based compensation expense |
|
50,943 |
|
|
|
43,529 |
|
|
|
92,612 |
|
|
|
89,385 |
|
Amortization of acquired intangible assets |
|
9,966 |
|
|
|
9,274 |
|
|
|
19,632 |
|
|
|
18,608 |
|
Employer payroll tax on employee stock transactions |
|
2,343 |
|
|
|
2,151 |
|
|
|
6,532 |
|
|
|
5,305 |
|
Acquisition-related expenses |
|
1,563 |
|
|
|
752 |
|
|
|
2,011 |
|
|
|
7,642 |
|
Non-GAAP net income |
$ |
58,504 |
|
|
$ |
2,825 |
|
|
$ |
103,510 |
|
|
$ |
4,612 |
|
|
|
|
|
|
|
|
|
||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
Non-GAAP net income |
$ |
58,504 |
|
|
$ |
2,825 |
|
|
$ |
103,510 |
|
|
$ |
4,612 |
|
|
|
|
|
|
|
|
|
||||||||
Denominator: |
|
|
|
|
|
|
|
||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic |
|
146,938,942 |
|
|
|
141,238,489 |
|
|
|
146,207,469 |
|
|
|
140,446,873 |
|
Effect of dilutive securities: Employee stock awards |
|
4,653,396 |
|
|
|
6,117,368 |
|
|
|
5,349,382 |
|
|
|
6,537,556 |
|
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted |
|
151,592,338 |
|
|
|
147,355,857 |
|
|
|
151,556,851 |
|
|
|
146,984,429 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP net loss per share, basic |
$ |
(0.04 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.83 |
) |
GAAP net loss per share, diluted |
$ |
(0.04 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.83 |
) |
Non-GAAP net income per share, basic |
$ |
0.40 |
|
|
$ |
0.02 |
|
|
$ |
0.71 |
|
|
$ |
0.03 |
|
Non-GAAP net income per share, diluted |
$ |
0.39 |
|
|
$ |
0.02 |
|
|
$ |
0.68 |
|
|
$ |
0.03 |
|
Computation of free cash flow: |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(in thousands) |
||||||||||||||
Net cash provided by (used in) operating activities |
$ |
58,695 |
|
|
$ |
(11,677 |
) |
|
$ |
127,840 |
|
|
$ |
17,598 |
|
Purchases of property, plant, and equipment |
|
(1,874 |
) |
|
|
(2,521 |
) |
|
|
(3,963 |
) |
|
|
(4,694 |
) |
Capitalized software development costs |
|
(10,218 |
) |
|
|
(9,400 |
) |
|
|
(19,732 |
) |
|
|
(17,351 |
) |
Non-GAAP free cash flow |
$ |
46,603 |
|
|
$ |
(23,598 |
) |
|
$ |
104,145 |
|
|
$ |
(4,447 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240801037273/en/
Media Contact
press@procore.com
Investor Contact
ir@procore.com
Source: Procore Technologies Inc.
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