Non-GAAP financial measures may not provide information that is directly comparable to information provided by other companies in Procore's industry, as other companies in the industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on Procore's reported financial results. Further, stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in Procore's business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Procore's business.
Free Cash Flow: Procore defines free cash flow as net cash provided by 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 Levelset and Esticom that have not yet been renewed onto standard Procore annual contracts. Remaining Levelset and Esticom legacy customers will be included in our customer metrics once they are renewed onto standard Procore annual contracts or upon integration of the sales process.
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 March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands, except share and per share amounts) |
||||||
Revenue |
$ |
269,428 |
|
|
$ |
213,526 |
|
Cost of revenue(1)(2)(3) |
|
45,723 |
|
|
|
40,202 |
|
Gross profit |
|
223,705 |
|
|
|
173,324 |
|
Operating expenses |
|
|
|
||||
Sales and marketing(1)(2)(3)(4) |
|
120,994 |
|
|
|
117,363 |
|
Research and development(1)(2)(3)(4) |
|
70,599 |
|
|
|
80,036 |
|
General and administrative(1)(3) |
|
51,018 |
|
|
|
45,188 |
|
| Total operating expenses |
|
242,611 |
|
|
|
242,587 |
|
| Loss from operations |
|
(18,906 |
) |
|
|
(69,263 |
) |
| Interest income |
|
5,938 |
|
|
|
4,948 |
|
| Interest expense |
|
(479 |
) |
|
|
(496 |
) |
| Accretion income, net |
|
3,088 |
|
|
|
1,632 |
|
| Other expense, net |
|
(344 |
) |
|
|
(210 |
) |
| Loss before provision for income taxes |
|
(10,703 |
) |
|
|
(63,389 |
) |
| Provision for income taxes |
|
263 |
|
|
|
58 |
|
| Net loss |
$ |
(10,966 |
) |
|
$ |
(63,447 |
) |
| Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.08 |
) |
|
$ |
(0.45 |
) |
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
145,476,006 |
|
|
|
139,646,465 |
|
| (1) |
Includes stock-based compensation expense and amortization of capitalized stock-based compensation as follows: |
|
|
Three Months Ended March 31, |
||||||
|
|
|
2024 |
|
|
2023 |
||
|
|
(in thousands) |
||||||
| Cost of revenue |
$ |
3,185 |
|
$ |
2,496 |
||
| Sales and marketing |
|
13,020 |
|
|
13,104 |
||
| Research and development |
|
13,735 |
|
|
19,781 |
||
| General and administrative |
|
11,729 |
|
|
10,475 |
||
| Total stock-based compensation expense* |
$ |
41,669 |
|
$ |
45,856 |
||
| *Includes amortization of capitalized stock-based compensation of $1.5 million and $0.9 million, respectively, for the three months ended March 31, 2024 and 2023 which was initially capitalized as capitalized software and cloud-computing arrangement implementation costs. |
|||||||
| (2) |
Includes amortization of acquired intangible assets as follows: |
|
|
Three Months Ended March 31, |
||||||
|
|
|
2024 |
|
|
2023 |
||
|
|
(in thousands) |
||||||
| Cost of revenue |
$ |
5,885 |
|
$ |
5,493 |
||
| Sales and marketing |
|
3,106 |
|
|
3,107 |
||
| Research and development |
|
675 |
|
|
734 |
||
| Total amortization of acquired intangible assets |
$ |
9,666 |
|
$ |
9,334 |
||
| (3) |
Includes employer payroll tax on employee stock transactions as follows: |
|
|
Three Months Ended March 31, |
||||||
|
|
|
2024 |
|
|
2023 |
||
|
|
(in thousands) |
||||||
| Cost of revenue |
$ |
212 |
|
$ |
167 |
||
| Sales and marketing |
|
1,264 |
|
|
999 |
||
| Research and development |
|
1,668 |
|
|
1,356 |
||
| General and administrative |
|
1,045 |
|
|
632 |
||
| Total employer payroll tax on employee stock transactions |
$ |
4,189 |
|
$ |
3,154 |
||
| (4) | Includes acquisition-related expenses as follows: |
|
|
Three Months Ended March 31, |
||||||
|
|
|
2024 |
|
|
2023 |
||
|
|
(in thousands) |
||||||
| Sales and marketing |
$ |
448 |
|
$ |
906 |
||
| Research and development |
|
— |
|
|
5,984 |
||
| Total acquisition-related expenses |
$ |
448 |
|
$ |
6,890 |
||
| Procore Technologies, Inc. Condensed Consolidated Balance Sheets (unaudited) |
|||||||
|
|
March 31, 2024 |
|
December 31, 2023 |
||||
|
|
(in thousands) |
||||||
| Assets |
|
|
|
||||
| Current assets |
|
|
|
||||
| Cash and cash equivalents |
$ |
427,656 |
|
|
$ |
357,790 |
|
| Marketable securities |
|
316,963 |
|
|
|
320,161 |
|
| Accounts receivable, net |
|
138,996 |
|
|
|
206,644 |
|
| Contract cost asset, current |
|
29,618 |
|
|
|
28,718 |
|
| Prepaid expenses and other current assets |
|
41,707 |
|
|
|
42,421 |
|
| Total current assets |
|
954,940 |
|
|
|
955,734 |
|
| Capitalized software development costs, net |
|
88,409 |
|
|
|
83,045 |
|
| Property and equipment, net |
|
35,417 |
|
|
|
36,258 |
|
| Right of use assets - finance leases |
|
33,712 |
|
|
|
34,375 |
|
| Right of use assets - operating leases |
|
36,727 |
|
|
|
44,141 |
|
| Contract cost asset, non-current |
|
43,757 |
|
|
|
44,564 |
|
| Intangible assets, net |
|
127,747 |
|
|
|
137,546 |
|
| Goodwill |
|
539,131 |
|
|
|
539,354 |
|
| Other assets |
|
18,870 |
|
|
|
18,551 |
|
| Total assets |
$ |
1,878,710 |
|
|
$ |
1,893,568 |
|
| Liabilities and Stockholders’ Equity |
|
|
|
||||
| Current liabilities |
|
|
|
||||
| Accounts payable |
$ |
16,446 |
|
|
$ |
13,177 |
|
| Accrued expenses |
|
67,008 |
|
|
|
100,075 |
|
| Deferred revenue, current |
|
487,944 |
|
|
|
501,903 |
|
| Other current liabilities |
|
23,585 |
|
|
|
27,275 |
|
| Total current liabilities |
|
594,983 |
|
|
|
642,430 |
|
| Deferred revenue, non-current |
|
7,403 |
|
|
|
7,692 |
|
| Finance lease liabilities, non-current |
|
43,076 |
|
|
|
43,581 |
|
| Operating lease liabilities, non-current |
|
33,691 |
|
|
|
37,923 |
|
| Other liabilities, non-current |
|
5,876 |
|
|
|
6,332 |
|
| Total liabilities |
|
685,029 |
|
|
|
737,958 |
|
| Stockholders’ equity |
|
|
|
||||
| Common stock |
|
15 |
|
|
|
15 |
|
| Additional paid-in capital |
|
2,345,537 |
|
|
|
2,295,807 |
|
| Accumulated other comprehensive loss |
|
(2,068 |
) |
|
|
(1,375 |
) |
| Accumulated deficit |
|
(1,149,803 |
) |
|
|
(1,138,837 |
) |
| Total stockholders’ equity |
|
1,193,681 |
|
|
|
1,155,610 |
|
| Total liabilities and stockholders’ equity |
$ |
1,878,710 |
|
|
$ |
1,893,568 |
|
