Procore Technologies, Inc., the leading global provider of construction management software, announced financial results for the third quarter ended September 30, 2024.
“We have made good progress on our go-to-market transition we announced last quarter,” said Tooey Courtemanche, Founder, President, and CEO of Procore. “We believe this evolution will position us to become a multi-billion revenue company, while building deep and lasting partnerships with our customers.”
"We are on track to expand operating margins by 900 basis points at the high-end for FY24 and our guidance for FY25 calls for further expansion,” said Howard Fu, CFO of Procore. “Long-term growth remains our priority, and we are confident that our investments will best position Procore to capture the massive and under-penetrated opportunity ahead of us.”
Third Quarter 2024 Financial Highlights:
- Revenue was $296 million, an increase of 19% year-over-year.
- GAAP gross margin was 81% and non-GAAP gross margin was 85%.
- GAAP operating margin was (12%) and non-GAAP operating margin was 9%.
- Operating cash inflow for the third quarter was $39 million.
- Free cash inflow for the third quarter was $23 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 third quarter.
- Number of organic customers contributing more than $100,000 of annual recurring revenue totaled 2,261 as of September 30, 2024, an increase of 18% year-over-year.
- Added 225 net new organic customers in the third quarter, ending with a total of 16,975 organic customers.
- Announced the expansion of our upcoming Procore Zones to the UK, Australia and New Zealand, further enhancing our ability to provide customers with the choice to control data storage and management within their regions.
Fourth Quarter and Full Year Outlook:
Procore is providing the following guidance for the fourth quarter 2024 and the full year 2024 and 2025:
- Fourth Quarter 2024 Outlook:
- Revenue is expected to be in the range of $296 million to $298 million, representing year-over-year growth of 14% to 15%.
- Non-GAAP operating margin is expected to be in the range of 3% to 4%.
- Full Year 2024 Outlook:
- Revenue is expected to be in the range of $1,146 million to $1,148 million, representing year-over-year growth of 21%.
- Non-GAAP operating margin is expected to be in the range of 10.5% to 11%.
- Full Year 2025 Outlook:
- Revenue is expected to be at least $1,275 million, representing year-over-year growth of 11%.
- Non-GAAP operating margin is expected to be 13%.
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.
Stock Repurchase Program
On October 29, 2024, Procore’s Board of Directors authorized a stock repurchase program to repurchase up to $300 million of Procore’s outstanding common stock. Procore intends to opportunistically repurchase shares based on market conditions through the open market (including via pre-set trading plans), or other transactions in accordance with applicable securities laws. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities. The program does not obligate Procore to acquire any particular amount of common stock, and may be suspended or discontinued at any time at Procore’s discretion. The program will be funded using Procore’s working capital and will expire on October 29, 2025.
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, October 30, 2024. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com.
