Procore Announces Third Quarter 2024 Financial Results
Procore Technologies (NYSE: PCOR) announced its third quarter 2024 financial results with a revenue of $296 million, marking a 19% increase year-over-year. The GAAP gross margin stood at 81%, while the non-GAAP gross margin was 85%. The GAAP operating margin was (12%) and the non-GAAP operating margin was 9%. The company reported an operating cash inflow of $39 million and a free cash inflow of $23 million for the quarter.
Procore achieved a gross revenue retention rate of 94%, with 2,261 organic customers contributing over $100,000 annually, a growth of 18% year-over-year. The total number of organic customers reached 16,975.
Looking ahead, Procore expects Q4 2024 revenue between $296 million and $298 million, with a non-GAAP operating margin of 3% to 4%. For the full year 2024, revenue is projected between $1,146 million and $1,148 million, with a non-GAAP operating margin of 10.5% to 11%. For 2025, revenue is expected to be at least $1,275 million, with a non-GAAP operating margin of 13%.
Procore Technologies (NYSE: PCOR) ha annunciato i suoi risultati finanziari del terzo trimestre 2024 con un fatturato di 296 milioni di dollari, segnando un incremento del 19% rispetto all'anno precedente. Il margine lordo GAAP si è attestato all'81%, mentre il margine lordo non GAAP era dell'85%. Il margine operativo GAAP è stato del (12%) e il margine operativo non GAAP era del 9%. L'azienda ha riportato un afflusso di cassa operativo di 39 milioni di dollari e un afflusso di cassa libero di 23 milioni di dollari per il trimestre.
Procore ha raggiunto un tasso di retention del fatturato lordo del 94%, con 2.261 clienti organici che contribuiscono per oltre 100.000 dollari all'anno, con una crescita del 18% rispetto all'anno precedente. Il numero totale di clienti organici ha raggiunto 16.975.
Guardando al futuro, Procore prevede un fatturato del Q4 2024 tra 296 e 298 milioni di dollari, con un margine operativo non GAAP del 3% al 4%. Per l'anno intero 2024, il fatturato è previsto tra 1.146 milioni e 1.148 milioni di dollari, con un margine operativo non GAAP dal 10,5% all'11%. Per il 2025, il fatturato è previsto essere almeno 1.275 milioni, con un margine operativo non GAAP del 13%.
Procore Technologies (NYSE: PCOR) anunció sus resultados financieros del tercer trimestre de 2024 con un ingreso de 296 millones de dólares, marcando un aumento del 19% interanual. El margen bruto GAAP fue del 81%, mientras que el margen bruto no GAAP fue del 85%. El margen operativo GAAP fue del (12%) y el margen operativo no GAAP fue del 9%. La compañía reportó un flujo de caja operativo de 39 millones de dólares y un flujo de caja libre de 23 millones de dólares para el trimestre.
Procore logró una tasa de retención de ingresos brutos del 94%, con 2,261 clientes orgánicos que contribuyen con más de 100,000 dólares anuales, un crecimiento del 18% interanual. El número total de clientes orgánicos alcanzó los 16,975.
Mirando hacia adelante, Procore espera ingresos del Q4 2024 entre 296 millones y 298 millones de dólares, con un margen operativo no GAAP del 3% al 4%. Para el año completo 2024, se proyecta que los ingresos estén entre 1,146 millones y 1,148 millones de dólares, con un margen operativo no GAAP del 10.5% al 11%. Para 2025, se espera que los ingresos sean al menos 1,275 millones de dólares, con un margen operativo no GAAP del 13%.
프로코어 테크놀로지스 (NYSE: PCOR)는 2024년 3분기 재무 결과를 발표하며 수익이 2억 9천6백만 달러에 달해 전년 대비 19% 증가했다고 전했습니다. GAAP 총 마진은 81%였고, 비 GAAP 총 마진은 85%였습니다. GAAP 운영 마진은 (12%)였으며, 비 GAAP 운영 마진은 9%였습니다. 회사는 이번 분기 운영 현금 유입이 3천9백만 달러, 자유 현금 유입이 2천3백만 달러라고 보고했습니다.
프로코어는 총 수익 유지율이 94%에 달했으며, 2,261명의 유기적 고객이 연간 10만 달러 이상을 기여하여 전년 대비 18% 성장했습니다. 유기적 고객의 총 수는 16,975명에 달했습니다.
앞으로 프로코어는 2024년 4분기 수익이 2억 9천6백만 달러에서 2억 9천8백만 달러 사이가 될 것으로 예상하며, 비 GAAP 운영 마진은 3%에서 4%일 것으로 보입니다. 2024년 전체 연도를 위해, 수익은 11억 4천6백만에서 11억 4천8백만 달러 사이로 예상되며, 비 GAAP 운영 마진은 10.5%에서 11% 사이일 것으로 보입니다. 2025년에는 수익이 최소 12억 7천5백만 달러에 이를 것으로 예상되며, 비 GAAP 운영 마진은 13%가 될 것으로 보입니다.
Procore Technologies (NYSE: PCOR) a annoncé ses résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires de 296 millions de dollars, représentant une augmentation de 19% par rapport à l'année précédente. La marge brute GAAP s'élevait à 81%, tandis que la marge brute non GAAP était de 85%. La marge opérationnelle GAAP était de (12%) et la marge opérationnelle non GAAP était de 9%. L'entreprise a rapporté un flux de trésorerie opérationnel de 39 millions de dollars et un flux de trésorerie libre de 23 millions de dollars pour le trimestre.
Procore a atteint un taux de conservation du chiffre d'affaires brut de 94%, avec 2 261 clients organiques contribuant chacun à plus de 100 000 dollars par an, une croissance de 18% par rapport à l'année précédente. Le nombre total de clients organiques a atteint 16 975.
Pour l'avenir, Procore prévoit un chiffre d'affaires pour le T4 2024 compris entre 296 et 298 millions de dollars, avec une marge opérationnelle non GAAP de 3% à 4%. Pour l'année complète 2024, le chiffre d'affaires est projeté entre 1 146 millions et 1 148 millions de dollars, avec une marge opérationnelle non GAAP de 10,5% à 11%. Pour 2025, le chiffre d'affaires est attendu d'être d'au moins 1 275 millions de dollars, avec une marge opérationnelle non GAAP de 13%.
Procore Technologies (NYSE: PCOR) hat seine Finanzergebnisse für das dritte Quartal 2024 bekannt gegeben, mit einem Umsatz von 296 Millionen Dollar, was einem Jahreszuwachs von 19% entspricht. Die Bruttomarge nach GAAP lag bei 81%, während die Bruttomarge nicht nach GAAP bei 85% lag. Die Betriebsgewinnmarge nach GAAP betrug (12%) und die Betriebsgewinnmarge nicht nach GAAP lag bei 9%. Das Unternehmen meldete einen betrieblichen Cashflow von 39 Millionen Dollar und einen freien Cashflow von 23 Millionen Dollar für das Quartal.
Procore erreichte eine Bruttoumsatzbindungsquote von 94%, mit 2.261 organischen Kunden, die jährlich über 100.000 Dollar beisteuern, was einem Wachstum von 18% im Jahresvergleich entspricht. Die Gesamtzahl der organischen Kunden erreichte 16.975.
Für die Zukunft erwartet Procore einen Umsatz im Q4 2024 zwischen 296 Millionen und 298 Millionen Dollar, mit einer Betriebsgewinnmarge nicht nach GAAP von 3% bis 4%. Für das Gesamtjahr 2024 wird ein Umsatz zwischen 1.146 Millionen und 1.148 Millionen Dollar prognostiziert, mit einer Betriebsgewinnmarge nicht nach GAAP von 10,5% bis 11%. Für 2025 wird ein Umsatz von mindestens 1.275 Millionen Dollar erwartet, mit einer Betriebsgewinnmarge nicht nach GAAP von 13%.
- Revenue increased by 19% year-over-year to $296 million.
- Non-GAAP gross margin was 85%.
- Operating cash inflow was $39 million.
- Free cash inflow was $23 million.
- Achieved a gross revenue retention rate of 94%.
- Number of organic customers contributing over $100,000 annually increased by 18% year-over-year.
- Q4 2024 revenue guidance between $296 million and $298 million.
- Full year 2024 revenue guidance between $1,146 million and $1,148 million.
- Full year 2025 revenue guidance at least $1,275 million.
- GAAP operating margin was (12%).
Insights
The Q3 results showcase mixed signals for Procore. While revenue grew
Key positives include improving profitability metrics, with non-GAAP operating margin expected to reach
However, the slowdown in growth trajectory and modest customer additions (225 net new) suggest market penetration challenges. The company's transition in go-to-market strategy and international expansion plans indicate a strategic pivot to sustain long-term growth, though near-term execution risks remain.
“We have made good progress on our go-to-market transition we announced last quarter,” said Tooey Courtemanche, Founder, President, and CEO of Procore. “We believe this evolution will position us to become a multi-billion revenue company, while building deep and lasting partnerships with our customers.”
"We are on track to expand operating margins by 900 basis points at the high-end for FY24 and our guidance for FY25 calls for further expansion,” said Howard Fu, CFO of Procore. “Long-term growth remains our priority, and we are confident that our investments will best position Procore to capture the massive and under-penetrated opportunity ahead of us.”
Third Quarter 2024 Financial Highlights:
-
Revenue was
, an increase of$296 million 19% year-over-year. -
GAAP gross margin was
81% and non-GAAP gross margin was85% . -
GAAP operating margin was (
12% ) and non-GAAP operating margin was9% . -
Operating cash inflow for the third quarter was
.$39 million -
Free cash inflow for the third quarter was
.$23 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 third quarter. -
Number of organic customers contributing more than
of annual recurring revenue totaled 2,261 as of September 30, 2024, an increase of$100,000 18% year-over-year. - Added 225 net new organic customers in the third quarter, ending with a total of 16,975 organic customers.
-
Announced the expansion of our upcoming Procore Zones to the
UK ,Australia and New Zealand , further enhancing our ability to provide customers with the choice to control data storage and management within their regions.
Fourth Quarter and Full Year Outlook:
Procore is providing the following guidance for the fourth quarter 2024 and the full year 2024 and 2025:
-
Fourth Quarter 2024 Outlook:
-
Revenue is expected to be in the range of
to$296 million , representing year-over-year growth of$298 million 14% to15% . -
Non-GAAP operating margin is expected to be in the range of
3% to4% .
-
Revenue is expected to be in the range of
-
Full Year 2024 Outlook:
-
Revenue is expected to be in the range of
to$1,146 million , representing year-over-year growth of$1,148 million 21% . -
Non-GAAP operating margin is expected to be in the range of
10.5% to11% .
-
Revenue is expected to be in the range of
-
Full Year 2025 Outlook:
-
Revenue is expected to be at least
, representing year-over-year growth of$1,275 million 11% . -
Non-GAAP operating margin is expected to be
13% .
-
Revenue is expected to be at least
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.
Stock Repurchase Program
On October 29, 2024, Procore’s Board of Directors authorized a stock repurchase program to repurchase up to
Quarterly Conference Call
Procore Technologies, Inc. will hold a conference call to discuss its third quarter results at 2:00 p.m., Pacific Time, on Wednesday, October 30, 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 markets 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, interest rates, and challenging geopolitical conditions), our outlook for fourth quarter 2024 and the full fiscal years 2024 and 2025, our progress with respect to our go-to-market transition and the benefits we expect to realize as a result of such transition, 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, our ability to execute, and realize benefits from, our stock repurchase program, and as set forth in Procore’s filings with the Securities and Exchange Commission. You should not rely 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
In addition to Procore’s results determined in accordance with
Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Income 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 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. Acquisition-related expenses include external and incremental transaction costs, such as legal and due diligence costs and retention payments. These expenses are unpredictable and generally would not have otherwise been incurred in the periods presented as part of our continuing operations. In addition, the size and complexity of an acquisition, which often drives the magnitude of acquisition-related expenses, may not be indicative of such future costs. Procore believes that excluding acquisition-related expenses facilitates the comparison of its financial results to its historical operating results and to other companies in its industry. 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 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, invest in future growth, and execute our stock repurchase program.
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
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands, except share and per share amounts) |
||||||||||||||
Revenue |
$ |
295,885 |
|
|
$ |
247,907 |
|
|
$ |
849,660 |
|
|
$ |
689,969 |
|
Cost of revenue(1)(2)(3) |
|
54,954 |
|
|
|
44,125 |
|
|
|
148,778 |
|
|
|
126,631 |
|
Gross profit |
|
240,931 |
|
|
|
203,782 |
|
|
|
700,882 |
|
|
|
563,338 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Sales and marketing(1)(2)(3)(4) |
|
141,370 |
|
|
|
129,672 |
|
|
|
390,286 |
|
|
|
372,397 |
|
Research and development(1)(2)(3)(4) |
|
80,791 |
|
|
|
72,708 |
|
|
|
223,698 |
|
|
|
225,960 |
|
General and administrative(1)(3)(4) |
|
55,267 |
|
|
|
51,753 |
|
|
|
157,077 |
|
|
|
143,324 |
|
Total operating expenses |
|
277,428 |
|
|
|
254,133 |
|
|
|
771,061 |
|
|
|
741,681 |
|
Loss from operations |
|
(36,497 |
) |
|
|
(50,351 |
) |
|
|
(70,179 |
) |
|
|
(178,343 |
) |
Interest income |
|
5,962 |
|
|
|
4,721 |
|
|
|
17,714 |
|
|
|
14,612 |
|
Interest expense |
|
(488 |
) |
|
|
(490 |
) |
|
|
(1,439 |
) |
|
|
(1,477 |
) |
Accretion income, net |
|
3,816 |
|
|
|
2,952 |
|
|
|
10,665 |
|
|
|
6,615 |
|
Other expense, net |
|
466 |
|
|
|
(486 |
) |
|
|
(26 |
) |
|
|
(1,009 |
) |
Loss before (benefit from) provision for income taxes |
|
(26,741 |
) |
|
|
(43,654 |
) |
|
|
(43,265 |
) |
|
|
(159,602 |
) |
(Benefit from) provision for income taxes |
|
(353 |
) |
|
|
193 |
|
|
|
400 |
|
|
|
573 |
|
Net loss |
$ |
(26,388 |
) |
|
$ |
(43,847 |
) |
|
$ |
(43,665 |
) |
|
$ |
(160,175 |
) |
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.18 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.30 |
) |
|
$ |
(1.13 |
) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
148,134,585 |
|
|
142,828,406 |
|
|
146,854,541 |
141,249,446 |
||||||
(1) | Includes stock-based compensation expense and amortization of capitalized stock-based compensation as follows: |
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
||||
|
(in thousands) |
||||||||||||||
Cost of revenue |
$ |
4,188 |
|
$ |
2,981 |
|
$ |
11,056 |
|
$ |
8,357 |
||||
Sales and marketing |
|
14,034 |
|
|
14,390 |
|
|
42,725 |
|
|
41,964 |
||||
Research and development |
|
18,321 |
|
|
16,350 |
|
|
49,684 |
|
|
52,401 |
||||
General and administrative |
|
13,912 |
|
|
12,253 |
|
|
39,602 |
|
|
32,637 |
||||
Total stock-based compensation expense* |
$ |
50,455 |
|
$ |
45,974 |
|
$ |
143,067 |
|
$ |
135,359 |
||||
*Includes amortization of capitalized stock-based compensation of |
|||||||||||||||
(2) | Includes amortization of acquired intangible assets as follows: |
|
Three Months Ended
|
|
|
Nine Months Ended
|
|||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands) |
||||||||||||||
Cost of revenue |
$ |
6,698 |
|
$ |
5,506 |
|
$ |
18,739 |
|
$ |
16,492 |
||||
Sales and marketing |
|
3,224 |
|
|
3,106 |
|
|
9,475 |
|
|
9,319 |
||||
Research and development |
|
668 |
|
|
678 |
|
|
2,008 |
|
|
2,087 |
||||
Total amortization of acquired intangible assets |
$ |
10,590 |
|
$ |
9,290 |
|
$ |
30,222 |
|
$ |
27,898 |
||||
(3) | Includes employer payroll tax on employee stock transactions as follows: |
|
Three Months Ended
|
|
|
Nine Months Ended
|
|||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands) |
||||||||||||||
Cost of revenue |
$ |
113 |
|
$ |
133 |
|
$ |
485 |
|
$ |
439 |
||||
Sales and marketing |
|
815 |
|
|
766 |
|
|
2,867 |
|
|
2,383 |
||||
Research and development |
|
521 |
|
|
638 |
|
|
3,089 |
|
|
2,885 |
||||
General and administrative |
|
281 |
|
|
501 |
|
|
1,820 |
|
|
1,636 |
||||
Total employer payroll tax on employee stock transaction |
$ |
1,730 |
$ |
2,038 |
$ |
8,261 |
$ |
7,343 |
|||||||
(4) | Includes acquisition-related expenses as follows: |
|
Three Months Ended
|
|
|
Nine Months Ended
|
|||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands) |
||||||||||||||
Sales and marketing |
$ |
— |
|
$ |
548 |
|
$ |
1,448 |
|
$ |
2,002 |
||||
Research and development |
|
— |
|
|
136 |
|
|
— |
|
|
6,324 |
||||
General and administrative |
|
51 |
|
|
19 |
|
|
614 |
|
|
19 |
||||
Total acquisition-related expenses |
$ |
51 |
|
$ |
703 |
|
$ |
2,062 |
|
$ |
8,345 |
||||
Procore Technologies, Inc. Condensed Consolidated Balance Sheets (unaudited) |
|||||||
|
September 30,
|
|
December 31,
|
||||
|
(in thousands) |
||||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
439,298 |
|
|
$ |
357,790 |
|
Marketable securities, current |
|
317,650 |
|
|
|
320,161 |
|
Accounts receivable, net |
|
173,386 |
|
|
|
206,644 |
|
Contract cost asset, current |
|
32,150 |
|
|
|
28,718 |
|
Prepaid expenses and other current assets |
|
54,248 |
|
|
|
42,421 |
|
Total current assets |
|
1,016,732 |
|
|
|
955,734 |
|
Marketable securities, non-current |
|
52,283 |
|
|
|
— |
|
Capitalized software development costs, net |
|
102,449 |
|
|
|
83,045 |
|
Property and equipment, net |
|
35,952 |
|
|
|
36,258 |
|
Right of use assets - finance leases |
|
32,391 |
|
|
|
34,375 |
|
Right of use assets - operating leases |
|
32,676 |
|
|
|
44,141 |
|
Contract cost asset, non-current |
|
44,593 |
|
|
|
44,564 |
|
Intangible assets, net |
|
131,754 |
|
|
|
137,546 |
|
Goodwill |
|
550,221 |
|
|
|
539,354 |
|
Other assets |
|
19,686 |
|
|
|
18,551 |
|
Total assets |
$ |
2,018,737 |
|
|
$ |
1,893,568 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
25,006 |
|
|
$ |
13,177 |
|
Accrued expenses |
|
91,227 |
|
|
|
100,075 |
|
Deferred revenue, current |
|
501,599 |
|
|
|
501,903 |
|
Other current liabilities |
|
31,187 |
|
|
|
27,275 |
|
Total current liabilities |
|
649,019 |
|
|
|
642,430 |
|
Deferred revenue, non-current |
|
4,822 |
|
|
|
7,692 |
|
Finance lease liabilities, non-current |
|
41,853 |
|
|
|
43,581 |
|
Operating lease liabilities, non-current |
|
32,070 |
|
|
|
37,923 |
|
Other liabilities, non-current |
|
5,324 |
|
|
|
6,332 |
|
Total liabilities |
|
733,088 |
|
|
|
737,958 |
|
Stockholders’ equity |
|
|
|
||||
Common stock |
|
15 |
|
|
|
15 |
|
Additional paid-in capital |
|
2,468,450 |
|
|
|
2,295,807 |
|
Accumulated other comprehensive loss |
|
(314 |
) |
|
|
(1,375 |
) |
Accumulated deficit |
|
(1,182,502 |
) |
|
|
(1,138,837 |
) |
Total stockholders’ equity |
|
1,285,649 |
|
|
|
1,155,610 |
|
Total liabilities and stockholders’ equity |
$ |
2,018,737 |
|
|
$ |
1,893,568 |
|
Remaining performance obligation:
The following table presents our current and non-current RPO at the end of each period:
|
September 30, |
|
Change |
||||||||
|
|
2024 |
|
|
2023 |
|
Dollar |
|
Percent |
||
|
(dollars in thousands) |
||||||||||
Remaining performance obligations |
|
|
|
|
|
|
|
||||
Current |
$ |
738,856 |
|
$ |
635,000 |
|
$ |
103,856 |
|
16 |
% |
Non-current |
|
334,560 |
|
|
255,381 |
|
|
79,179 |
|
31 |
% |
Total remaining performance obligations |
$ |
1,073,416 |
|
$ |
890,381 |
|
$ |
183,035 |
|
21 |
% |
Procore Technologies, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands) |
||||||||||||||
Operating activities |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(26,388 |
) |
|
$ |
(43,847 |
) |
|
$ |
(43,665 |
) |
|
$ |
(160,175 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
48,175 |
|
|
|
44,809 |
|
|
|
137,532 |
|
|
|
132,234 |
|
Depreciation and amortization |
|
24,233 |
|
|
|
17,733 |
|
|
|
65,127 |
|
|
|
51,943 |
|
Accretion of discounts on marketable debt securities, net |
|
(3,382 |
) |
|
|
(2,953 |
) |
|
|
(10,131 |
) |
|
|
(6,615 |
) |
Abandonment of long-lived assets |
|
238 |
|
|
|
277 |
|
|
|
818 |
|
|
|
812 |
|
Noncash operating lease expense |
|
2,913 |
|
|
|
2,700 |
|
|
|
7,906 |
|
|
|
7,932 |
|
Unrealized foreign currency loss, net |
|
(419 |
) |
|
|
182 |
|
|
|
295 |
|
|
|
739 |
|
Deferred income taxes |
|
2 |
|
|
|
2 |
|
|
|
4 |
|
|
|
7 |
|
Provision for credit losses |
|
243 |
|
|
|
3,152 |
|
|
|
648 |
|
|
|
6,882 |
|
Decrease (increase) in fair value of strategic investments |
|
184 |
|
|
|
149 |
|
|
|
(457 |
) |
|
|
155 |
|
Changes in operating assets and liabilities, net of effect of asset acquisitions and business combinations |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
(14,698 |
) |
|
|
(20,433 |
) |
|
|
34,296 |
|
|
|
3,144 |
|
Deferred contract cost assets |
|
(1,128 |
) |
|
|
(1,469 |
) |
|
|
(3,217 |
) |
|
|
(5,099 |
) |
Prepaid expenses and other assets |
|
(11,931 |
) |
|
|
(3,579 |
) |
|
|
(12,121 |
) |
|
|
(1,878 |
) |
Accounts payable |
|
(2,250 |
) |
|
|
1,109 |
|
|
|
11,029 |
|
|
|
2,258 |
|
Accrued expenses and other liabilities |
|
21,972 |
|
|
|
29,135 |
|
|
|
(8,475 |
) |
|
|
(1,975 |
) |
Deferred revenue |
|
4,609 |
|
|
|
9,498 |
|
|
|
(6,268 |
) |
|
|
29,080 |
|
Operating lease liabilities |
|
(3,097 |
) |
|
|
(2,791 |
) |
|
|
(6,205 |
) |
|
|
(8,172 |
) |
Net cash provided by (used in) operating activities |
|
39,276 |
|
|
|
33,674 |
|
|
|
167,116 |
|
|
|
51,272 |
|
Investing activities |
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
|
(3,547 |
) |
|
|
(3,379 |
) |
|
|
(7,510 |
) |
|
|
(8,073 |
) |
Capitalized software development costs |
|
(12,721 |
) |
|
|
(7,836 |
) |
|
|
(32,453 |
) |
|
|
(25,187 |
) |
Purchases of strategic investments |
|
(845 |
) |
|
|
(84 |
) |
|
|
(1,917 |
) |
|
|
(526 |
) |
Purchases of marketable securities |
|
(86,245 |
) |
|
|
(80,000 |
) |
|
|
(410,619 |
) |
|
|
(309,282 |
) |
Maturities of marketable securities |
|
145,619 |
|
|
|
64,894 |
|
|
|
371,718 |
|
|
|
287,620 |
|
Sales of marketable securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,452 |
|
Originations of materials financing |
|
— |
|
|
|
(6,578 |
) |
|
|
— |
|
|
|
(23,585 |
) |
Customer repayments of materials financing |
|
88 |
|
|
|
8,057 |
|
|
|
1,571 |
|
|
|
21,053 |
|
Acquisition of a business, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(25,945 |
) |
|
|
— |
|
Asset acquisitions, net of cash acquired |
|
— |
|
|
|
(6,011 |
) |
|
|
(3,792 |
) |
|
|
(6,011 |
) |
Net cash used in investing activities |
|
42,349 |
|
|
|
(30,937 |
) |
|
|
(108,947 |
) |
|
|
(58,539 |
) |
Financing activities |
|
|
|
|
|
|
|
||||||||
Proceeds from stock option exercises |
|
2,456 |
|
|
|
4,155 |
|
|
|
12,371 |
|
|
|
15,094 |
|
Proceeds from employee stock purchase plan |
|
— |
|
|
|
— |
|
|
|
13,187 |
|
|
|
13,006 |
|
Payment of deferred business combination consideration |
|
(1,470 |
) |
|
|
— |
|
|
|
(1,470 |
) |
|
|
— |
|
Payment of deferred asset acquisition consideration |
|
(81 |
) |
|
|
— |
|
|
|
(81 |
) |
|
|
— |
|
Principal payments under finance lease agreements, net of proceeds from lease incentives |
|
(900 |
) |
|
|
(520 |
) |
|
|
(1,569 |
) |
|
|
(1,450 |
) |
Net cash provided by financing activities |
|
5 |
|
|
|
3,635 |
|
|
|
22,438 |
|
|
|
26,650 |
|
Net increase in cash and cash equivalents |
|
81,630 |
|
|
|
6,372 |
|
|
|
80,607 |
|
|
|
19,383 |
|
Effect of exchange rate changes on cash |
|
1,429 |
|
|
|
(572 |
) |
|
|
901 |
|
|
|
(881 |
) |
Cash and cash equivalents, beginning of period |
|
356,239 |
|
|
|
312,518 |
|
|
|
357,790 |
|
|
|
299,816 |
|
Cash and cash equivalents, end of period |
$ |
439,298 |
|
|
$ |
318,318 |
|
|
$ |
439,298 |
|
|
$ |
318,318 |
|
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
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(dollars in thousands) |
||||||||||||||
Revenue |
$ |
295,885 |
|
|
$ |
247,907 |
|
|
$ |
849,660 |
|
|
$ |
689,969 |
|
Gross profit |
|
240,931 |
|
|
|
203,782 |
|
|
|
700,882 |
|
|
|
563,338 |
|
Stock-based compensation expense |
|
4,188 |
|
|
|
2,981 |
|
|
|
11,056 |
|
|
|
8,357 |
|
Amortization of acquired technology intangible assets |
|
6,698 |
|
|
|
5,506 |
|
|
|
18,739 |
|
|
|
16,492 |
|
Employer payroll tax on employee stock transactions |
|
113 |
|
|
|
133 |
|
|
|
485 |
|
|
|
439 |
|
Non-GAAP gross profit |
$ |
251,930 |
|
|
$ |
212,402 |
|
|
$ |
731,162 |
|
|
$ |
588,626 |
|
Gross margin |
|
81 |
% |
|
|
82 |
% |
|
|
82 |
% |
|
|
82 |
% |
Non-GAAP gross margin |
|
85 |
% |
|
|
86 |
% |
|
|
86 |
% |
|
|
85 |
% |
Reconciliation of operating expenses to non-GAAP operating expenses: |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(dollars in thousands) |
||||||||||||||
Revenue |
$ |
295,885 |
|
|
$ |
247,907 |
|
|
$ |
849,660 |
|
|
$ |
689,969 |
|
GAAP sales and marketing |
|
141,370 |
|
|
|
129,672 |
|
|
|
390,286 |
|
|
|
372,397 |
|
Stock-based compensation expense |
|
(14,034 |
) |
|
|
(14,390 |
) |
|
|
(42,725 |
) |
|
|
(41,964 |
) |
Amortization of acquired intangible assets |
|
(3,224 |
) |
|
|
(3,106 |
) |
|
|
(9,475 |
) |
|
|
(9,319 |
) |
Employer payroll tax on employee stock transactions |
|
(815 |
) |
|
|
(766 |
) |
|
|
(2,867 |
) |
|
|
(2,383 |
) |
Acquisition-related expenses |
|
— |
|
|
|
(548 |
) |
|
|
(1,448 |
) |
|
|
(2,002 |
) |
Non-GAAP sales and marketing |
$ |
123,297 |
|
|
$ |
110,862 |
|
|
$ |
333,771 |
|
|
$ |
316,729 |
|
GAAP sales and marketing as a percentage of revenue |
|
48 |
% |
|
|
52 |
% |
|
|
46 |
% |
|
|
54 |
% |
Non-GAAP sales and marketing as a percentage of revenue |
|
42 |
% |
|
|
45 |
% |
|
|
39 |
% |
|
|
46 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP research and development |
$ |
80,791 |
|
|
$ |
72,708 |
|
|
$ |
223,698 |
|
|
$ |
225,960 |
|
Stock-based compensation expense |
|
(18,321 |
) |
|
|
(16,350 |
) |
|
|
(49,684 |
) |
|
|
(52,401 |
) |
Amortization of acquired intangible assets |
|
(668 |
) |
|
|
(678 |
) |
|
|
(2,008 |
) |
|
|
(2,087 |
) |
Employer payroll tax on employee stock transactions |
|
(521 |
) |
|
|
(638 |
) |
|
|
(3,089 |
) |
|
|
(2,885 |
) |
Acquisition-related expenses |
|
— |
|
|
|
(136 |
) |
|
|
— |
|
|
|
(6,324 |
) |
Non-GAAP research and development |
$ |
61,281 |
|
|
$ |
54,906 |
|
|
$ |
168,917 |
|
|
$ |
162,263 |
|
GAAP research and development as a percentage of revenue |
|
27 |
% |
|
|
29 |
% |
|
|
26 |
% |
|
|
33 |
% |
Non-GAAP research and development as a percentage of revenue |
|
21 |
% |
|
|
22 |
% |
|
|
20 |
% |
|
|
24 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP general and administrative |
$ |
55,267 |
|
|
$ |
51,753 |
|
|
$ |
157,077 |
|
|
$ |
143,324 |
|
Stock-based compensation expense |
|
(13,912 |
) |
|
|
(12,253 |
) |
|
|
(39,602 |
) |
|
|
(32,637 |
) |
Employer payroll tax on employee stock transactions |
|
(281 |
) |
|
|
(501 |
) |
|
|
(1,820 |
) |
|
|
(1,636 |
) |
Acquisition-related expenses |
|
(51 |
) |
|
|
(19 |
) |
|
|
(614 |
) |
|
|
(19 |
) |
Non-GAAP general and administrative |
$ |
41,023 |
|
|
$ |
38,980 |
|
|
$ |
115,041 |
|
|
$ |
109,032 |
|
GAAP general and administrative as a percentage of revenue |
|
19 |
% |
|
|
21 |
% |
|
|
18 |
% |
|
|
21 |
% |
Non-GAAP general and administrative as a percentage of revenue |
|
14 |
% |
|
|
16 |
% |
|
|
14 |
% |
|
16 |
% |
|
Reconciliation of loss from operations and operating margin to non-GAAP income (loss) from operations and non-GAAP operating margin: |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(dollars in thousands) |
||||||||||||||
Revenue |
$ |
295,885 |
|
|
$ |
247,907 |
|
|
$ |
849,660 |
|
|
$ |
689,969 |
|
Loss from operations |
|
(36,497 |
) |
|
|
(50,351 |
) |
|
|
(70,179 |
) |
|
|
(178,343 |
) |
Stock-based compensation expense |
|
50,455 |
|
|
|
45,974 |
|
|
|
143,067 |
|
|
|
135,359 |
|
Amortization of acquired intangible assets |
|
10,590 |
|
|
|
9,290 |
|
|
|
30,222 |
|
|
|
27,898 |
|
Employer payroll tax on employee stock transactions |
|
1,730 |
|
|
|
2,038 |
|
|
|
8,261 |
|
|
|
7,343 |
|
Acquisition-related expenses |
|
51 |
|
|
|
703 |
|
|
|
2,062 |
|
|
|
8,345 |
|
Non-GAAP income from operations |
$ |
26,329 |
|
|
$ |
7,654 |
|
|
$ |
113,433 |
|
|
$ |
602 |
|
Operating margin |
|
(12 |
%) |
|
|
(20 |
%) |
|
|
(8 |
%) |
|
|
(26 |
%) |
Non-GAAP operating margin |
|
9 |
% |
|
|
3 |
% |
|
|
13 |
% |
|
|
0 |
% |
Reconciliation of net loss and net loss per share to non-GAAP net income and non-GAAP net income per share: |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands, except share and per share amounts) |
||||||||||||||
Revenue |
$ |
295,885 |
|
|
$ |
247,907 |
|
|
$ |
849,660 |
|
|
$ |
689,969 |
|
Net loss |
|
(26,388 |
) |
|
|
(43,847 |
) |
|
|
(43,665 |
) |
|
|
(160,175 |
) |
Stock-based compensation expense |
|
50,455 |
|
|
|
45,974 |
|
|
|
143,067 |
|
|
|
135,359 |
|
Amortization of acquired intangible assets |
|
10,590 |
|
|
|
9,290 |
|
|
|
30,222 |
|
|
|
27,898 |
|
Employer payroll tax on employee stock transactions |
|
1,730 |
|
|
|
2,038 |
|
|
|
8,261 |
|
|
|
7,343 |
|
Acquisition-related expenses |
|
51 |
|
|
|
703 |
|
|
|
2,062 |
|
|
|
8,345 |
|
Non-GAAP net income |
$ |
36,438 |
|
|
$ |
14,158 |
|
|
$ |
139,947 |
|
|
$ |
18,770 |
|
|
|
|
|
|
|
|
|
||||||||
Numerator: |
|
|
|
|
|
|
|
||||||||
Non-GAAP net income |
$ |
36,438 |
|
|
$ |
14,158 |
|
|
$ |
139,947 |
|
|
$ |
18,770 |
|
|
|
|
|
|
|
|
|
||||||||
Denominator: |
|
|
|
|
|
|
|
||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic |
|
148,134,585 |
|
|
|
142,828,406 |
|
|
|
146,854,541 |
|
|
|
141,249,446 |
|
Effect of dilutive securities: Employee stock awards |
|
3,693,792 |
|
|
|
6,285,767 |
|
|
|
5,029,245 |
|
|
|
6,672,063 |
|
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted |
|
151,828,377 |
|
|
|
149,114,173 |
|
|
|
151,883,786 |
|
|
|
147,921,509 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP net loss per share, basic |
$ |
(0.18 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.30 |
) |
|
$ |
(1.13 |
) |
GAAP net loss per share, diluted |
$ |
(0.18 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.30 |
) |
|
$ |
(1.13 |
) |
Non-GAAP net income per share, basic |
$ |
0.25 |
|
|
$ |
0.10 |
|
|
$ |
0.95 |
|
|
$ |
0.13 |
|
Non-GAAP net income per share, diluted |
$ |
0.24 |
|
|
$ |
0.09 |
|
|
$ |
0.92 |
|
|
$ |
0.13 |
|
Computation of free cash flow: |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands) |
||||||||||||||
Net cash provided by operating activities |
$ |
39,276 |
|
|
$ |
33,674 |
|
|
$ |
167,116 |
|
|
$ |
51,272 |
|
Purchases of property, plant, and equipment |
|
(3,547 |
) |
|
|
(3,379 |
) |
|
|
(7,510 |
) |
|
|
(8,073 |
) |
Capitalized software development costs |
|
(12,721 |
) |
|
|
(7,836 |
) |
|
|
(32,453 |
) |
|
|
(25,187 |
) |
Non-GAAP free cash flow |
$ |
23,008 |
|
|
$ |
22,459 |
|
|
$ |
127,153 |
|
|
$ |
18,012 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030613586/en/
Media Contact
press@procore.com
Investor Contact
ir@procore.com
Source: Procore Technologies, Inc.
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