Procore Technologies, Inc., the leading global provider of construction management software, announced financial results for the fourth quarter and full year ended December 31, 2023.
“2023 was a year of milestones at Procore as we surpassed $1B in total annual recurring revenue, reaffirmed our status as one of the best places to work in technology, and delivered numerous innovations on the platform,” said Tooey Courtemanche, Founder and CEO of Procore. “Our continued evolution leaves me optimistic about our ability to achieve our vision of improving the lives of everyone in construction.”
“Procore remains committed to continuously improving how we operate across all aspects of the business," said Howard Fu, CFO of Procore. "This resulted in significant margin improvement in 2023, setting a strong foundation for our next phase of efficient growth.”
Fourth Quarter 2023 Financial Highlights:
- Revenue was $260 million, an increase of 29% year-over-year.
- GAAP gross margin was 82% and non-GAAP gross margin was 85%.
- GAAP operating margin was (14%) and non-GAAP operating margin was 7%.
- Operating cash inflow for the fourth quarter was $41 million.
- Free cash inflow for the fourth quarter was $29 million.
Full Year 2023 Financial Highlights:
- Revenue was $950 million, an increase of 32% year-over-year.
- GAAP gross margin was 82% and non-GAAP gross margin was 85%.
- GAAP operating margin was (23%) and non-GAAP operating margin was 2%.
- Operating cash inflow for 2023 was $92 million.
- Free cash inflow for 2023 was $47 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:
- Number of organic customers contributing more than $100,000 of annual recurring revenue totaled 2,008 as of December 31, 2023, an increase of 27% year-over-year.
- Number of organic customers contributing more than $1,000,000 of annual recurring revenue totaled 62 as of December 31, 2023, an increase of 32% year-over-year.
- Added 300 net new organic customers in the fourth quarter, ending with a total of 16,367 organic customers.
- Achieved a gross revenue retention rate of 95% for 2023.
- Achieved a net revenue retention rate of 114% for 2023.
- As of December 31, 2023, 74% of total annual recurring revenue was generated from customers using four or more products.
- As of December 31, 2023, 45% of total annual recurring revenue was generated from customers using six or more products.
- Ended 2023 with 3,694 full-time employees, an increase of 4% year-over-year.
- Ranked #5 on Glassdoor’s 100 Best Places to Work in 2024.
Leadership Updates:
Procore announces the appointment of Larry Stack as Chief Revenue Officer. In this role, Stack will lead Procore’s Global Sales and Customer Success organizations and will be responsible for Procore’s revenue growth strategy. He will report to Procore Founder, President and CEO Tooey Courtemanche.
First Quarter and Full Year 2024 Outlook:
Procore is providing the following guidance for the first quarter and full year 2024:
- First Quarter 2024 Outlook:
- Revenue is expected to be in the range of $262 million to $264 million, representing year-over-year growth of 23% to 24%.
- Non-GAAP operating margin is expected to be in the range of 7% to 8%.
- Full Year 2024 Outlook:
- Revenue is expected to be in the range of $1,137 million to $1,142 million, representing year-over-year growth of 20%.
- Non-GAAP operating margin is expected to be in the range of 7% to 8%.
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 15, 2024. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com.
