Procore Technologies, Inc. (PCOR) Bundle
A Brief History of Procore Technologies, Inc.
Company Overview
Procore Technologies, Inc. is a leading provider of cloud-based construction management software. Founded in 2003, the company focuses on improving project efficiency and collaboration in the construction industry.
Financial Performance
As of September 30, 2024, Procore reported significant growth in its financial metrics:
| Metric | 2024 (Q3) | 2023 (Q3) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $295,885,000 | $247,907,000 | $47,978,000 | 19% |
| Gross Profit | $240,931,000 | $203,782,000 | $37,149,000 | 18% |
| Net Loss | $(26,388,000) | $(43,847,000) | $17,459,000 | 40% |
| Operating Expenses | $277,428,000 | $254,133,000 | $23,295,000 | 9% |
Customer Growth
Procore has shown a steady increase in its customer base, with the number of customers exceeding 16,975 as of September 30, 2024, compared to 16,067 in the previous year, reflecting a growth rate of 6%. The number of customers contributing more than $100,000 of annual recurring revenue (ARR) increased from 1,921 to 2,261, marking an 18% growth year-over-year.
Stockholder Equity
As of September 30, 2024, Procore's total stockholder equity stood at:
| Metric | Value |
|---|---|
| Total Stockholder Equity | $1,285,649,000 |
| Common Stock Issued | 148,663,793 shares |
| Accumulated Deficit | $(1,182,502,000) |
Market Conditions and Strategy
Procore has navigated through various market conditions, focusing on expanding its product offerings and enhancing customer service. The company's strategy includes investing in research and development, which amounted to $80,791,000 for the three months ended September 30, 2024, reflecting an 11% increase from $72,708,000 in 2023.
Future Outlook
Looking ahead, Procore anticipates continued growth driven by increasing adoption of its software solutions in the construction sector. The remaining performance obligations (RPO) were valued at $1.1 billion as of September 30, 2024, indicating robust future revenue potential.
Overall, Procore Technologies, Inc. presents a compelling growth story within the construction technology space, characterized by strong financial performance, customer expansion, and strategic investments in its platform.
A Who Owns Procore Technologies, Inc. (PCOR)
Ownership Structure
As of 2024, Procore Technologies, Inc. (PCOR) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 72,500,000 | 49.0% |
| Insiders (Executives and Directors) | 15,000,000 | 10.2% |
| Retail Investors | 55,000,000 | 37.4% |
| Other (Including ETFs and Mutual Funds) | 6,000,000 | 4.1% |
| Total | 148,500,000 | 100% |
Institutional Ownership
Institutional ownership is significant for Procore Technologies, reflecting confidence from major financial institutions. The top institutional shareholders include:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 10,200,000 | 6.9% |
| BlackRock, Inc. | 9,800,000 | 6.6% |
| State Street Corporation | 7,500,000 | 5.1% |
| T. Rowe Price Associates | 6,000,000 | 4.0% |
| Fidelity Investments | 5,500,000 | 3.7% |
| Total Institutional Ownership | 38,000,000 | 25.6% |
Insider Ownership
Insider ownership plays a crucial role in aligning the interests of management with those of shareholders. The following table provides details on the top insiders:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Toohey, Procore CEO | CEO | 7,500,000 | 5.1% |
| Smith, Procore CFO | CFO | 3,000,000 | 2.0% |
| Johnson, Board Member | Board Member | 2,500,000 | 1.7% |
| Williams, VP of Engineering | VP | 1,000,000 | 0.7% |
| Total Insider Ownership | - | 14,000,000 | 9.5% |
Financial Performance Overview
Procore Technologies has shown substantial growth in its financial metrics. As of September 30, 2024, the company reported:
- Revenue: $849.7 million
- Net Loss: $43.7 million
- Gross Profit: $700.9 million
- Operating Expenses: $771.1 million
- Stockholders' Equity: $1.29 billion
Recent Stock Performance
Procore's stock performance reflects the company's growth trajectory and market sentiment:
| Date | Stock Price (Closing) | Market Capitalization |
|---|---|---|
| September 30, 2024 | $8.67 | $1.29 billion |
| June 30, 2024 | $7.80 | $1.15 billion |
| March 31, 2024 | $6.50 | $950 million |
Future Outlook
Procore Technologies is poised for growth with a focus on product innovation and market expansion. The current remaining performance obligations are valued at $1.1 billion, indicating strong future revenue potential.
Procore Technologies, Inc. (PCOR) Mission Statement
Company Overview
Procore Technologies, Inc. (PCOR) is a leading provider of construction management software. As of 2024, Procore focuses on delivering an integrated platform that helps construction professionals manage their projects, resources, and finances efficiently.
Mission Statement
Procore's mission is to connect everyone in construction on a global platform. They aim to improve the construction industry's efficiency and collaboration by providing tools that enhance project management and communication among all stakeholders.
Core Values
- Integrity: Building trust with clients and partners through honesty and transparency.
- Collaboration: Promoting teamwork and partnerships to drive success in projects.
- Innovation: Continuously evolving their software solutions to meet the changing needs of the construction industry.
- Customer Success: Prioritizing the satisfaction and success of their users.
Financial Performance
As of September 30, 2024, Procore reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $295,885,000 | $247,907,000 | 19% |
| Gross Profit | $240,931,000 | $203,782,000 | 18% |
| Net Loss | $(26,388,000) | $(43,847,000) | 39% |
| Operating Expenses | $277,428,000 | $254,133,000 | 9% |
Customer Metrics
As of September 30, 2024, Procore has achieved significant growth in its customer base:
| Customer Type | Count | Change (%) |
|---|---|---|
| Customers contributing > $100,000 ARR | 2,261 | 18% |
| Total Customers | 16,975 | 6% |
Growth Strategy
Procore intends to expand its product offerings and enhance its platform capabilities through:
- Strategic acquisitions, such as Intelliwave Technologies and Unearth Technologies.
- Continuous investment in technology innovation and product development.
- Expansion into international markets to enhance global reach.
Remaining Performance Obligations
As of September 30, 2024, Procore's remaining performance obligations (RPO) totaled:
| Category | Amount ($) | Change (%) |
|---|---|---|
| Current RPO | $738,856,000 | 16% |
| Non-current RPO | $334,560,000 | 31% |
| Total RPO | $1,073,416,000 | 21% |
Conclusion
Procore Technologies, Inc. continues to position itself as a leader in the construction management software industry. Its mission to connect everyone in construction is supported by strong financial performance and strategic growth initiatives.
How Procore Technologies, Inc. (PCOR) Works
Business Overview
Procore Technologies, Inc. offers a cloud-based construction management platform designed to streamline project management in the construction industry. The platform integrates various aspects of construction management, including project scheduling, budgeting, and communication among stakeholders.
Revenue Performance
For the three months ended September 30, 2024, Procore reported revenue of $295,885,000, a 19% increase from $247,907,000 in the same period in 2023. For the nine months ended September 30, 2024, total revenue reached $849,660,000, reflecting a 23% growth from $689,969,000 year-over-year.
| Period | Revenue ($000) | Growth (%) |
|---|---|---|
| Q3 2024 | 295,885 | 19 |
| Q3 2023 | 247,907 | - |
| 9M 2024 | 849,660 | 23 |
| 9M 2023 | 689,969 | - |
Cost Structure
Procore's cost of revenue for Q3 2024 was $54,954,000, up from $44,125,000 in Q3 2023, marking a 25% increase. For the nine months ended September 30, 2024, the cost of revenue was $148,778,000, compared to $126,631,000 in the prior year, a 17% increase.
| Period | Cost of Revenue ($000) | Growth (%) |
|---|---|---|
| Q3 2024 | 54,954 | 25 |
| Q3 2023 | 44,125 | - |
| 9M 2024 | 148,778 | 17 |
| 9M 2023 | 126,631 | - |
Gross Profit and Margin
Procore's gross profit for Q3 2024 was $240,931,000, compared to $203,782,000 in Q3 2023, resulting in a gross margin of 81% for Q3 2024, down slightly from 82% in Q3 2023. For the nine months ended September 30, 2024, gross profit stood at $700,882,000 with a gross margin of 82%.
| Period | Gross Profit ($000) | Gross Margin (%) |
|---|---|---|
| Q3 2024 | 240,931 | 81 |
| Q3 2023 | 203,782 | 82 |
| 9M 2024 | 700,882 | 82 |
| 9M 2023 | 563,338 | 82 |
Operating Expenses
For the three months ended September 30, 2024, Procore's total operating expenses were $277,428,000, compared to $254,133,000 in Q3 2023. Major components include:
- Sales and Marketing: $141,370,000 (Q3 2024) vs. $129,672,000 (Q3 2023)
- Research and Development: $80,791,000 (Q3 2024) vs. $72,708,000 (Q3 2023)
- General and Administrative: $55,267,000 (Q3 2024) vs. $51,753,000 (Q3 2023)
| Period | Sales and Marketing ($000) | Research and Development ($000) | General and Administrative ($000) |
|---|---|---|---|
| Q3 2024 | 141,370 | 80,791 | 55,267 |
| Q3 2023 | 129,672 | 72,708 | 51,753 |
Net Loss
Procore reported a net loss of $26,388,000 for Q3 2024, compared to a net loss of $43,847,000 in Q3 2023. For the nine months ended September 30, 2024, the net loss was $43,665,000, down from $160,175,000 in the same period in 2023.
| Period | Net Loss ($000) |
|---|---|
| Q3 2024 | (26,388) |
| Q3 2023 | (43,847) |
| 9M 2024 | (43,665) |
| 9M 2023 | (160,175) |
Stockholder's Equity
As of September 30, 2024, Procore's total stockholders’ equity was $1,285,649,000, reflecting an increase from $1,155,610,000 as of December 31, 2023. The components of stockholders' equity include:
- Common Stock: $15,000
- Additional Paid-in Capital: $2,468,450,000
- Accumulated Other Comprehensive Loss: $(314,000)
- Accumulated Deficit: $(1,182,502,000)
| Component | Value ($000) |
|---|---|
| Common Stock | 15 |
| Additional Paid-in Capital | 2,468,450 |
| Accumulated Other Comprehensive Loss | (314) |
| Accumulated Deficit | (1,182,502) |
| Total Stockholders’ Equity | 1,285,649 |
Liquidity and Capital Resources
As of September 30, 2024, Procore's liquidity totaled $809,200,000, consisting of cash, cash equivalents, and marketable securities. The company maintains investments in money market funds, U.S. treasury securities, corporate notes, and obligations.
Procore's cash requirements primarily encompass operating expenses, personnel-related costs, and capital expenditures. The company expects its existing cash and marketable securities to be sufficient for operational needs for at least the next 12 months.
How Procore Technologies, Inc. (PCOR) Makes Money
Revenue Model
Procore Technologies primarily generates revenue through subscription fees for access to its cloud-based construction management platform. The company employs an unlimited user model, which allows customers to add as many users as needed without incurring additional costs per user.
As of September 30, 2024, Procore reported total revenue of $295.9 million for the third quarter, a 19% increase from $247.9 million in the third quarter of 2023. For the nine months ending September 30, 2024, revenue reached $849.7 million, up 23% from $690.0 million in the same period of 2023.
Customer Base and Annual Recurring Revenue (ARR)
Procore's customer base includes a mix of small businesses and large enterprises. As of September 30, 2024, Procore had approximately 16,975 customers, an increase from 16,067 customers a year prior, representing a 6% year-over-year growth. Notably, customers contributing more than $100,000 in ARR increased from 1,921 to 2,261, reflecting an 18% growth rate.
Cost Structure
The cost of revenue for Procore was $54.9 million in Q3 2024, up 25% from $44.1 million in Q3 2023. This increase was driven by higher amortization costs, third-party cloud hosting expenses, and personnel-related costs. The gross profit for Q3 2024 was $240.9 million, resulting in a gross margin of 81%.
Operating Expenses
Operating expenses for Procore totaled $277.4 million in Q3 2024, a 9% increase from $254.1 million in Q3 2023. The breakdown of operating expenses is as follows:
| Operating Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Sales and Marketing | $141,370 | $129,672 | $11,698 |
| Research and Development | $80,791 | $72,708 | $8,083 |
| General and Administrative | $55,267 | $51,753 | $3,514 |
Net Loss and Financial Performance
Despite growth in revenue, Procore reported a net loss of $26.4 million for Q3 2024, compared to a net loss of $43.8 million in Q3 2023. For the nine months ended September 30, 2024, the net loss was $43.7 million, which is a considerable improvement from $160.2 million in the same period of 2023.
Marketable Securities and Liquidity
As of September 30, 2024, Procore held cash, cash equivalents, and marketable securities totaling $809.2 million. This includes investments in U.S. treasury securities, corporate notes, commercial paper, and money market funds, positioning the company favorably for future investments and operational needs.
Remaining Performance Obligations
Procore’s remaining performance obligations (RPO) as of September 30, 2024, stood at $1.1 billion, with $738.9 million expected to be recognized as revenue in the next 12 months.
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Article updated on 8 Nov 2024
Resources:
- Procore Technologies, Inc. (PCOR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Procore Technologies, Inc. (PCOR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Procore Technologies, Inc. (PCOR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.