Procore Technologies, Inc., a leading global provider of construction management software, announced financial results for the second quarter ended June 30, 2023.
“I’m proud of the results we delivered this quarter as we continued to work toward our vision of improving the lives of everyone in construction,” said Tooey Courtemanche, founder, president and CEO of Procore. “We’re delivering solutions that help the construction industry find valuable efficiencies in an uncertain environment. I am excited to showcase what digital and cultural transformation means for the industry at large at Groundbreak 2023.”
“Although the demand environment remains challenging, we delivered solid results in the second quarter, highlighted by continued growth on the topline and improving operating leverage,” said Howard Fu, CFO of Procore. “Looking ahead, we remain focused on our pursuit of efficient growth and are on track to reach positive and sustainable free cash flow this year. We look forward to sharing more at our upcoming Investor Day.”
Second Quarter 2023 Financial Highlights:
- Revenue was $229 million, an increase of 33% year-over-year.
- GAAP gross margin was 81% and non-GAAP gross margin was 85%.
- GAAP operating margin was (26%) and non-GAAP operating margin was (1%).
- Operating cash outflow for the second quarter was $12 million.
- Free cash outflow for the second quarter was $24 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 615 net new organic customers in the second quarter, ending with a total of 15,704 organic customers.
- Achieved a gross revenue retention rate of 94% in the second quarter.
- In the G2 2023 Summer Report, Procore maintained its #1 ranking across 11 categories, including construction project management, jobsite management, bid management, construction estimating, construction accounting, and more.
- Announced partnership with The B1M, a leading construction video channel, to raise awareness about mental health in the construction industry through a global campaign, "Get Construction Talking."
Third Quarter and Full Year 2023 Outlook:
Procore is providing the following guidance for the third quarter and full year 2023:
- Third Quarter 2023 Outlook:
- Revenue is expected to be in the range of $232 million to $234 million, representing year-over-year growth of 24% to 26%.
- Non-GAAP operating margin is expected to be in the range of (6%) to (5%).
- Full Year 2023 Outlook:
- Revenue is expected to be in the range of $921 million to $924 million, representing year-over-year growth of 28%.
- Non-GAAP operating margin is expected to be in the range of (4.5%) to (4%).
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 second quarter results at 2:00 p.m., Pacific Time, on Wednesday, August 2, 2023. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com.
September 20, 2023 Investor Day
Procore Technologies, Inc. will host its 2023 Investor Day on Wednesday, September 20, 2023 from 9:00 a.m. to 12:00 p.m., Central Time. The event will be held in-person in conjunction with Groundbreak 2023, Procore’s leading construction technology conference, taking place at the McCormick Place Conference Center in Chicago, Illinois.
A live webcast of the event will begin at 9:00 a.m., Central Time, on September 20, 2023. 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
