Procore Technologies, Inc., a leading global provider of construction management software, announced financial results for the third quarter ended September 30, 2022.
“Our excellent third quarter performance reflects the value that our investments in our platform continue to deliver to our customers,” said Tooey Courtemanche, Founder, President, and CEO of Procore. “Procore is designed to solve real problems while driving better business outcomes for our customers.”
“We delivered another quarter of impressive results on the top and bottom line, highlighted by growth across stakeholders and customer sizes, as well as operating margin improvement,” said Paul Lyandres, CFO of Procore. “These results are a testament to our deepening partnership with the industry, our focus on scaling efficiently, and the significant opportunity ahead of us. We look forward to sharing more at our upcoming Investor Day.”
Third Quarter 2022 Financial Highlights:
- Revenue was $186 million, an increase of 41% year-over-year.
- Including an $8.5 million contribution from Levelset.
- GAAP gross margin was 80% and non-GAAP gross margin was 84%.
- GAAP operating margin was (39%) and non-GAAP operating margin was (7%).
- Operating cash inflow for the third quarter was $7 million.
- Free cash outflow for the third quarter was $6 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:
- Added 683 net new organic customers in the third quarter, including 189 customers from LaborChart, which was integrated into our sales process in the third quarter, ending with a total of 14,086 organic customers.
- Excluding over 3,000 customers from Levelset.
- Added 683 net new organic customers in the third quarter, including 189 customers from LaborChart, which was integrated into our sales process in the third quarter, ending with a total of 14,086 organic customer
- Launched Procore Workforce Management, a new end-to-end solution for the construction industry.
- Partnered with FMI Corp. to release The State of Global Preconstruction Report, discussing the current environment for preconstruction and the characteristics of organizations that do it well.
- Opened a new Middle East and North Africa officein Dubai, UAE following our successful launch in the region last year.
Leadership Updates:
On August 15, 2022, Procore announced the appointment of Steve Davis as Procore’s President of Product & Technology. In this role, Mr. Davis will lead Procore’s product, design, and engineering organizations.
Effective as of October 31, 2022, Dennis Lyandres resigned from his position as Procore’s Chief Revenue Officer and transitioned to a new position as Special Advisor to the CEO. In this new role, Mr. Lyandres will focus on certain areas of strategic importance to Procore’s future success, including international expansion and scale.
Fourth Quarter and Full Year 2022 Outlook:
Procore is providing the following guidance for the fourth quarter and full year 2022:
- Fourth Quarter 2022 Outlook:
- Revenue is expected to be in the range of $189 million to $191 million, representing year-over-year growth of 29% to 31%.
- Non-GAAP operating margin is expected to be in the range of (10%) to (11%).
- Full Year 2022 Outlook:
- Revenue is expected to be in the range of $707 million to $709 million, representing year-over-year growth of 37% to 38%.
Including $30 million from Levelset.
- Non-GAAP operating margin is expected to be in the range of (11%) to (12%).
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 third quarter results at 2:00 p.m., Pacific Time, on Wednesday, November 2, 2022. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com.
November 9, 2022 Investor Day
Procore Technologies, Inc. will host its inaugural Investor Day on Wednesday, November 9, 2022 from 9:00 a.m. to 1:00 p.m., Central Time. The event will be held in-person in conjunction with Groundbreak 2022, Procore’s leading construction technology conference, taking place at the Ernest N. Morial Convention Center in New Orleans, Louisiana.
A live webcast of the event will begin at 9:00 a.m., Central Time, on November 9, 2022. Interested parties can access the webcast by registering here. A replay of the webcast will also be made available on Procore's investor relations website at http://investors.procore.com.
