Procore Technologies, Inc., the leading global provider of construction management software, announced financial results for the second quarter ended June 30, 2024.
“We are in the early innings of transforming one of the largest and least digitized industries in the world,” said Tooey Courtemanche, Founder, President, and CEO of Procore. “I am excited about the future of Procore as we embark on the next phase of our journey by connecting everyone in construction on a global platform.”
“We delivered a record operating margin in Q2 as we continue to demonstrate improved operating leverage in the business,” said Howard Fu, CFO of Procore. “Our financial model gives us the flexibility to accelerate our investment in go-to-market and capture the long-term growth opportunity ahead.”
Second Quarter 2024 Financial Highlights:
- Revenue was $284 million, an increase of 24% year-over-year.
- GAAP gross margin was 83% and non-GAAP gross margin was 87%.
- GAAP operating margin was (5%) and non-GAAP operating margin was 17.6%.
- Operating cash inflow for the second quarter was $59 million.
- Free cash inflow for the second quarter was $47 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:
- Achieved a gross revenue retention rate of 94% in the second quarter.
- Number of organic customers contributing more than $100,000 of annual recurring revenue totaled 2,191 as of June 30, 2024, an increase of 20% year-over-year.
- Added 152 net new organic customers in the second quarter, ending with a total of 16,750 organic customers.
- Announced a number of innovations to the Procore platform to deepen access to AI, improve field productivity, and drive efficient cost management, including enhancements to Maps and Locations and a new integration of Procore Copilot via Microsoft Teams.
- Announced the launch of the FedRAMP authorization process to strengthen cloud security for Federal customers.
- Recognized by U.S. News as one of the Best Companies to Work For.
Third Quarter and Full Year 2024 Outlook:
Procore is providing the following guidance for the third quarter and full year 2024:
- Third Quarter 2024 Outlook:
- Revenue is expected to be in the range of $286 million to $288 million, representing year-over-year growth of 15% to 16%.
- Non-GAAP operating margin is expected to be in the range of 9% to 10%.
- Full Year 2024 Outlook:
- Revenue is expected to be in the range of $1,141 million to $1,144 million, representing year-over-year growth of 20%.
- Non-GAAP operating margin is expected to be in the range of 10% to 11%.
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 Thursday, August 1, 2024. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com .
