The following table presents our current and non-current remaining performance obligations at the end of each period:
|
December 31, |
|
Change |
|||||||||
|
2023 |
|
2022 |
|
Dollar |
|
Percent |
|||||
|
(dollars in thousands) |
|||||||||||
Remaining performance obligations |
|
|
|
|
|
|
|
|||||
Current |
$ |
698,284 |
|
$ |
561,200 |
|
$ |
137,084 |
|
24 |
% |
|
Non-current |
|
302,215 |
|
|
236,300 |
|
|
65,915 |
|
28 |
% |
|
Total remaining performance obligations |
$ |
1,000,499 |
|
$ |
797,500 |
|
$ |
202,999 |
|
25 |
% |
|
Procore Technologies, Inc. |
||||||||||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) |
||||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
|
(in thousands) |
|||||||||||||||
Operating activities |
|
|
|
|
|
|
|
|||||||||
| Net loss |
$ |
(29,519 |
) |
|
$ |
(71,184 |
) |
|
$ |
(189,694 |
) |
|
$ |
(286,931 |
) |
|
| Adjustments to reconcile net loss to net cash provided by operating activities |
|
|
|
|
|
|
|
|||||||||
| Stock-based compensation |
|
42,601 |
|
|
|
47,005 |
|
|
|
174,835 |
|
|
|
162,886 |
|
|
| Depreciation and amortization |
|
19,690 |
|
|
|
16,586 |
|
|
|
71,633 |
|
|
|
63,039 |
|
|
| Accretion of discounts on marketable debt securities, net |
|
(3,175 |
) |
|
|
(1,359 |
) |
|
|
(9,790 |
) |
|
|
(2,009 |
) |
|
| Abandonment of long-lived assets |
|
676 |
|
|
|
280 |
|
|
|
1,488 |
|
|
|
1,344 |
|
|
| Noncash operating lease expense |
|
5,160 |
|
|
|
2,611 |
|
|
|
13,092 |
|
|
|
10,170 |
|
|
| Unrealized foreign currency gain, net |
|
(1,263 |
) |
|
|
(1,232 |
) |
|
|
(524 |
) |
|
|
(351 |
) |
|
| Deferred income taxes |
|
(776 |
) |
|
|
67 |
|
|
|
(769 |
) |
|
|
(283 |
) |
|
| Provision for credit losses |
|
1,170 |
|
|
|
1,247 |
|
|
|
8,052 |
|
|
|
2,584 |
|
|
| Decrease in fair value of strategic investments |
|
132 |
|
|
|
519 |
|
|
|
287 |
|
|
|
483 |
|
|
| Changes in operating assets and liabilities, net of effect of asset acquisitions and business combinations |
|
|
|
|
|
|
|
|||||||||
| Accounts receivable |
|
(60,636 |
) |
|
|
(42,196 |
) |
|
|
(57,492 |
) |
|
|
(35,817 |
) |
|
| Deferred contract cost assets |
|
(4,207 |
) |
|
|
(9,385 |
) |
|
|
(9,306 |
) |
|
|
(21,974 |
) |
|
| Prepaid expenses and other assets |
|
(4,490 |
) |
|
|
4,456 |
|
|
|
(6,368 |
) |
|
|
(3,754 |
) |
|
| Accounts payable |
|
(3,196 |
) |
|
|
(1,682 |
) |
|
|
(938 |
) |
|
|
459 |
|
|
| Accrued expenses and other liabilities |
|
6,734 |
|
|
|
11,559 |
|
|
|
4,759 |
|
|
|
34,623 |
|
|
| Deferred revenue |
|
77,510 |
|
|
|
67,180 |
|
|
|
106,590 |
|
|
|
97,029 |
|
|
| Operating lease liabilities |
|
(5,668 |
) |
|
|
(1,780 |
) |
|
|
(13,840 |
) |
|
|
(8,890 |
) |
|
| Net cash provided by operating activities |
|
40,743 |
|
|
|
22,692 |
|
|
|
92,015 |
|
|
|
12,608 |
|
|
| Investing activities |
|
|
|
|
|
|
|
|||||||||
| Purchases of property and equipment |
|
(2,252 |
) |
|
|
(2,112 |
) |
|
|
(10,325 |
) |
|
|
(15,782 |
) |
|
| Capitalized software development costs |
|
(9,498 |
) |
|
|
(8,865 |
) |
|
|
(34,685 |
) |
|
|
(33,648 |
) |
|
| Purchases of strategic investments |
|
(238 |
) |
|
|
(306 |
) |
|
|
(764 |
) |
|
|
(3,959 |
) |
|
| Purchases of marketable securities |
|
(93,142 |
) |
|
|
(76,128 |
) |
|
|
(402,424 |
) |
|
|
(369,206 |
) |
|
| Maturities of marketable securities |
|
84,620 |
|
|
|
85,632 |
|
|
|
372,240 |
|
|
|
85,632 |
|
|
| Sales of marketable securities |
|
— |
|
|
|
— |
|
|
|
5,452 |
|
|
|
— |
|
|
| Originations of materials financing |
|
(387 |
) |
|
|
(6,739 |
) |
|
|
(23,972 |
) |
|
|
(23,489 |
) |
|
| Customer repayments of materials financing |
|
5,189 |
|
|
|
6,688 |
|
|
|
26,242 |
|
|
|
18,685 |
|
|
| Asset acquisitions, net of cash acquired |
|
(1,814 |
) |
|
|
— |
|
|
|
(7,825 |
) |
|
|
— |
|
|
| Settlement of post-close working capital adjustments from business combinations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,291 |
|
|
| Net cash used in investing activities |
$ |
(17,522 |
) |
|
$ |
(1,830 |
) |
|
$ |
(76,061 |
) |
|
$ |
(340,476 |
) |
|
| Procore Technologies, Inc. |
||||||||||||||||
| Condensed Consolidated Statements of Cash Flows (unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
|
|
(in thousands) |
|||||||||||||||
| Financing activities |
|
|
|
|
|
|
|
|||||||||
| Proceeds from stock option exercises |
$ |
2,524 |
|
|
$ |
3,019 |
|
|
$ |
17,618 |
|
|
$ |
22,364 |
|
|
| Proceeds from employee stock purchase plan |
|
12,394 |
|
|
|
10,620 |
|
|
|
25,400 |
|
|
|
22,133 |
|
|
| Payments of deferred offering costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(270 |
) |
|
| Payments of deferred business acquisition consideration |
|
— |
|
|
|
(3,870 |
) |
|
|
— |
|
|
|
(3,870 |
) |
|
| Principal payments under finance lease agreements, net of proceeds from lease incentives |
|
(403 |
) |
|
|
(375 |
) |
|
|
(1,853 |
) |
|
|
(1,705 |
) |
|
| Net cash provided by financing activities |
|
14,515 |
|
|
|
9,394 |
|
|
|
41,165 |
|
|
|
38,652 |
|
|
| Net increase (decrease) in cash, cash equivalents and restricted cash |
|
37,736 |
|
|
|
30,256 |
|
|
|
57,119 |
|
|
|
(289,216 |
) |
|
| Effect of exchange rate changes on cash |
|
1,736 |
|
|
|
1,834 |
|
|
|
855 |
|
|
|
(180 |
) |
|
| Cash, cash equivalents and restricted cash, beginning of period |
|
318,318 |
|
|
|
267,726 |
|
|
|
299,816 |
|
|
|
589,212 |
|
|
| Cash, cash equivalents and restricted cash, end of period |
$ |
357,790 |
|
|
$ |
299,816 |
|
|
$ |
357,790 |
|
|
$ |
299,816 |
|
|
| 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
|
|
Year Ended
|
|||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
|
|
(dollars in thousands) |
|||||||||||||||
| Revenue |
$ |
260,041 |
|
|
$ |
202,053 |
|
|
$ |
950,010 |
|
|
$ |
720,203 |
|
|
| Gross profit |
|
212,210 |
|
|
|
161,483 |
|
|
|
775,548 |
|
|
|
571,787 |
|
|
| Stock-based compensation expense |
|
3,134 |
|
|
|
1,914 |
|
|
|
11,491 |
|
|
|
7,253 |
|
|
| Amortization of acquired technology intangible assets |
|
5,904 |
|
|
|
5,493 |
|
|
|
22,396 |
|
|
|
22,428 |
|
|
| Employer payroll tax on employee stock transactions |
|
101 |
|
|
|
60 |
|
|
|
540 |
|
|
|
308 |
|
|
| Non-GAAP gross profit |
$ |
221,349 |
|
|
$ |
168,950 |
|
|
$ |
809,975 |
|
|
$ |
601,776 |
|
|
| Gross margin |
|
82 |
% |
|
|
80 |
% |
|
|
82 |
% |
|
|
79 |
% |
|
| Non-GAAP gross margin |
|
85 |
% |
|
|
84 |
% |
|
|
85 |
% |
|
|
84 |
% |
|
| Reconciliation of operating expenses to non-GAAP operating expenses: |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
|
|
(dollars in thousands) |
|||||||||||||||
| Revenue |
$ |
260,041 |
|
|
$ |
202,053 |
|
|
$ |
950,010 |
|
|
$ |
720,203 |
|
|
| GAAP sales and marketing |
|
122,511 |
|
|
|
118,170 |
|
|
|
494,908 |
|
|
|
424,976 |
|
|
| Stock-based compensation expense |
|
(13,198 |
) |
|
|
(15,046 |
) |
|
|
(55,162 |
) |
|
|
(53,397 |
) |
|
| Amortization of acquired intangible assets |
|
(3,106 |
) |
|
|
(3,107 |
) |
|
|
(12,425 |
) |
|
|
(12,425 |
) |
|
| Employer payroll tax on employee stock transactions |
|
(383 |
) |
|
|
(348 |
) |
|
|
(2,766 |
) |
|
|
(1,955 |
) |
|
| Acquisition-related expenses |
|
(481 |
) |
|
|
(655 |
) |
|
|
(2,483 |
) |
|
|
(1,725 |
) |
|
| Non-GAAP sales and marketing |
$ |
105,343 |
|
|
$ |
99,014 |
|
|
$ |
422,072 |
|
|
$ |
355,474 |
|
|
| GAAP sales and marketing as a percentage of revenue |
|
47 |
% |
|
|
58 |
% |
|
|
52 |
% |
|
|
59 |
% |
|
| Non-GAAP sales and marketing as a percentage of revenue |
|
41 |
% |
|
|
49 |
% |
|
|
44 |
% |
|
|
49 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||||
| GAAP research and development |
$ |
74,611 |
|
|
$ |
75,413 |
|
|
$ |
300,571 |
|
|
$ |
270,982 |
|
|
| Stock-based compensation expense |
|
(15,874 |
) |
|
|
(19,352 |
) |
|
|
(68,275 |
) |
|
|
(63,262 |
) |
|
| Amortization of acquired intangible assets |
|
(670 |
) |
|
|
(854 |
) |
|
|
(2,757 |
) |
|
|
(3,528 |
) |
|
| Employer payroll tax on employee stock transactions |
|
(332 |
) |
|
|
(286 |
) |
|
|
(3,217 |
) |
|
|
(2,474 |
) |
|
| Acquisition-related expenses |
|
(46 |
) |
|
|
(1,679 |
) |
|
|
(6,370 |
) |
|
|
(5,549 |
) |
|
| Non-GAAP research and development |
$ |
57,689 |
|
|
$ |
53,242 |
|
|
$ |
219,952 |
|
|
$ |
196,169 |
|
|
| GAAP research and development as a percentage of revenue |
|
29 |
% |
|
|
37 |
% |
|
|
32 |
% |
|
|
38 |
% |
|
| Non-GAAP research and development as a percentage of revenue |
|
22 |
% |
|
|
26 |
% |
|
|
23 |
% |
|
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|||||||||
| GAAP general and administrative |
$ |
52,422 |
|
|
$ |
43,102 |
|
|
$ |
195,746 |
|
|
$ |
166,283 |
|
|
| Stock-based compensation expense |
|
(11,769 |
) |
|
|
(10,693 |
) |
|
|
(44,406 |
) |
|
|
(38,974 |
) |
|
| Employer payroll tax on employee stock transactions |
|
(274 |
) |
|
|
(171 |
) |
|
|
(1,910 |
) |
|
|
(1,202 |
) |
|
| Acquisition-related expenses |
|
(16 |
) |
|
|
(6 |
) |
|
|
(35 |
) |
|
|
(2,128 |
) |
|
| Non-GAAP general and administrative |
$ |
40,363 |
|
|
$ |
32,232 |
|
|
$ |
149,395 |
|
|
$ |
123,979 |
|
|
| GAAP general and administrative as a percentage of revenue |
|
20 |
% |
|
|
21 |
% |
|
|
21 |
% |
|
|
23 |
% |
|
| Non-GAAP general and administrative as a percentage of revenue |
16 |
% |
|
|
16 |
% |
|
|
16 |
% |
17 |
% |
||||
| Reconciliation of loss from operations and operating margin to non-GAAP income (loss) from operations and non-GAAP operating margin: |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
|
|
(dollars in thousands) |
|||||||||||||||
| Revenue |
$ |
260,041 |
|
|
$ |
202,053 |
|
|
$ |
950,010 |
|
|
$ |
720,203 |
|
|
| Loss from operations |
|
(37,334 |
) |
|
|
(75,202 |
) |
|
|
(215,677 |
) |
|
|
(290,454 |
) |
|
| Stock-based compensation expense |
|
43,975 |
|
|
|
47,005 |
|
|
|
179,334 |
|
|
|
162,886 |
|
|
| Amortization of acquired intangible assets |
|
9,680 |
|
|
|
9,454 |
|
|
|
37,578 |
|
|
|
38,381 |
|
|
| Employer payroll tax on employee stock transactions |
|
1,090 |
|
|
|
865 |
|
|
|
8,433 |
|
|
|
5,939 |
|
|
| Acquisition-related expenses |
|
543 |
|
|
|
2,340 |
|
|
|
8,888 |
|
|
|
9,402 |
|
|
| Non-GAAP income (loss) from operations |
$ |
17,954 |
|
|
$ |
(15,538 |
) |
|
$ |
18,556 |
|
|
$ |
(73,846 |
) |
|
| Operating margin |
|
(14 |
%) |
|
|
(37 |
%) |
|
|
(23 |
%) |
|
|
(40 |
%) |
|
| Non-GAAP operating margin |
|
7 |
% |
|
|
(8 |
%) |
|
|
2 |
% |
|
|
(10 |
%) |
|
| Reconciliation of net loss and net loss per share to non-GAAP net income (loss) and non-GAAP net income (loss) per share: |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
|
|
(in thousands, except share and per share amounts) |
|||||||||||||||
| Revenue |
$ |
260,041 |
|
|
$ |
202,053 |
|
|
$ |
950,010 |
|
|
$ |
720,203 |
|
|
| Net loss |
|
(29,519 |
) |
|
|
(71,184 |
) |
|
|
(189,694 |
) |
|
|
(286,931 |
) |
|
| Stock-based compensation expense |
|
43,975 |
|
|
|
47,005 |
|
|
|
179,334 |
|
|
|
162,886 |
|
|
| Amortization of acquired intangible assets |
|
9,680 |
|
|
|
9,454 |
|
|
|
37,578 |
|
|
|
38,381 |
|
|
| Employer payroll tax on employee stock transactions |
|
1,090 |
|
|
|
865 |
|
|
|
8,433 |
|
|
|
5,939 |
|
|
| Acquisition-related expenses |
|
543 |
|
|
|
2,340 |
|
|
|
8,888 |
|
|
|
9,402 |
|
|
| Income tax effect of non-GAAP items |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
62 |
|
|
| Non-GAAP net income (loss) |
$ |
25,769 |
|
|
$ |
(11,520 |
) |
|
$ |
44,539 |
|
|
$ |
(70,261 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||
| Numerator: |
|
|
|
|
|
|
|
|||||||||
| Non-GAAP net income (loss) |
$ |
25,769 |
|
|
$ |
(11,520 |
) |
|
$ |
44,539 |
|
|
$ |
(70,261 |
) |
|
|
|
|
|
|
|
|
|
|
|||||||||
| Denominator: |
|
|
|
|
|
|
|
|||||||||
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic |
|
144,074,303 |
|
|
|
138,415,280 |
|
|
|
141,961,467 |
|
|
|
136,525,728 |
|
|
| Effect of dilutive securities: Employee stock awards |
|
5,329,311 |
|
|
|
— |
|
|
|
6,591,783 |
|
|
|
— |
|
|
| Weighted-average shares used in computing net income per share attributable to common stockholders, diluted |
|
149,403,614 |
|
|
|
138,415,280 |
|
|
|
148,553,250 |
|
|
|
136,525,728 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| GAAP net loss per share, basic |
$ |
(0.20 |
) |
|
$ |
(0.51 |
) |
|
$ |
(1.34 |
) |
|
$ |
(2.10 |
) |
|
| GAAP net loss per share, diluted |
$ |
(0.20 |
) |
|
$ |
(0.51 |
) |
|
$ |
(1.34 |
) |
|
$ |
(2.10 |
) |
|
| Non-GAAP net income (loss) per share, basic |
$ |
0.18 |
|
|
$ |
(0.08 |
) |
|
$ |
0.31 |
|
|
$ |
(0.51 |
) |
|
| Non-GAAP net income (loss) per share, diluted |
$ |
0.17 |
|
|
$ |
(0.08 |
) |
|
$ |
0.30 |
|
|
$ |
(0.51 |
) |
|
| Computation of free cash flow: |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
|
|
(in thousands) |
|||||||||||||||
| Net cash provided by operating activities |
$ |
40,743 |
|
|
$ |
22,692 |
|
|
$ |
92,015 |
|
|
$ |
12,608 |
|
|
| Purchases of property, plant, and equipment |
|
(2,252 |
) |
|
|
(2,112 |
) |
|
|
(10,325 |
) |
|
|
(15,782 |
) |
|
| Capitalized software development costs |
|
(9,498 |
) |
|
|
(8,865 |
) |
|
|
(34,685 |
) |
|
|
(33,648 |
) |
|
| Non-GAAP free cash flow |
$ |
28,993 |
|
|
$ |
11,715 |
|
|
$ |
47,005 |
|
|
$ |
(36,822 |
) |
|
