Procore Technologies, Inc., a leading global provider of construction management software, announced financial results for the fourth quarter and full year ended December 31, 2022.
“Our strong fourth quarter performance reflects the power of our platform, our leadership position and our trusted partnership with the construction industry. We look forward to continuing this momentum as we enter 2023,” said Tooey Courtemanche, founder, president and CEO of Procore. “I’m also thrilled to share that CFO, Paul Lyandres, will be transitioning to a newly established role as President of Fintech in early May, at which time, our SVP of Finance, Howard Fu, will be promoted to CFO. These changes reinforce the incredible caliber of leadership we have as we look towards our next phase of efficient growth and continue advancing our vision of improving the lives of everyone in construction.”
“Our year-end results reflect Procore’s consistent performance and strength across multiple facets of the business,” said Paul Lyandres, CFO of Procore. “It has been an honor serving in the role of CFO, and I’m excited for the next chapter of leading the Fintech organization at Procore.”
Fourth Quarter 2022 Financial Highlights:
- Revenue was $202 million, an increase of 38% year-over-year.
- Including a $9 million contribution from Levelset.
- GAAP gross margin was 80% and non-GAAP gross margin was 84%.
- GAAP operating margin was (37%) and non-GAAP operating margin was (8%).
- Operating cash inflow for the fourth quarter was $23 million.
- Free cash inflow for the fourth quarter was $12 million.
- Total remaining performance obligation (“RPO”) was $798 million, an increase of 32% year-over-year.
- Short term RPO was approximately 70% of total RPO, representing an increase of 34% year-over-year.
Full Year 2022 Financial Highlights:
- Revenue was $720 million, an increase of 40% year-over-year.
- Including a $32 million contribution from Levelset.
- GAAP gross margin was 79% and non-GAAP gross margin was 84%.
- GAAP operating margin was (40%) and non-GAAP operating margin was (10%).
- Operating cash inflow for 2022 was $13 million.
- Free cash outflow for 2022 was $37 million.
The financial results included in this press release are preliminary and will not be final until Procore files its Annual Report on Form 10-K for the period. 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 402 net new organic customers in the fourth quarter, ending with a total of 14,488 organic customers.
- Achieved a gross revenue retention rate of 95% for 2022.
- Ended 2022 with 3,568 full-time employees, an increase of 24% year-over-year.
- Announced a number of innovationsto the Procore platform addressing challenges associated with payments, labor, preconstruction, communication and more.
- Partnered with Dodge Construction Network to release the 2022 Top Business Issues for Specialty Contractors Report, highlighting key issues impacting specialty contractors.
- Announced our expansion to Germany.
- Released inaugural 2022 Environmental, Social and Governance (“ESG”) Report, highlighting the company’s guiding principles, efforts and aspirations related to ESG.
- Named one of Construction Executive’s 2022 Top Construction Technology Firms.
- Awarded the TrustRadius 2022 Tech Cares Award.
Leadership Updates:
Today, Procore announced that Paul Lyandres, CFO of Procore, will be assuming a new role at Procore as President of Fintech. In this role, Mr. Lyandres will lead the strategic planning, direction, innovation and overall execution of Procore’s fintech initiatives. Mr. Lyandres will remain CFO until early May 2023, at which time Howard Fu, Procore’s SVP of Finance, will succeed Mr. Lyandres as CFO.
Effective as of February 21, 2023, Sarah Hodges will be joining Procore as Chief Marketing Officer (CMO). As CMO of Procore, Ms. Hodges will be responsible for the development of the strategic marketing plan and execution of all marketing activities globally in support of Procore’s financial and strategic business objectives.
First Quarter and Full Year 2023 Outlook:
Procore is providing the following guidance for the first quarter and full year 2023:
- First Quarter 2023 Outlook:
- Revenue is expected to be in the range of $202 million to $204 million, representing year-over-year growth of 27% to 28%.
- Non-GAAP operating margin is expected to be in the range of (8.5%) to (9.5%).
- Full Year 2023 Outlook:
- Revenue is expected to be in the range of $895 million to $900 million, representing year-over-year growth of 24% to 25%.
- Non-GAAP operating margin is expected to be in the range of (6.5%) to (7.5%).
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 fourth quarter and full year results at 2:00 p.m., Pacific Time, on Thursday, February 16, 2023. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com.
