Procore Technologies, Inc., a leading global provider of construction management software, announced financial results for the fourth quarter and full year ended December 31, 2021.
“Our deep commitment to the construction industry continues to drive efficiency, sustainability and growth for our clients,“ said Tooey Courtemanche, Founder, President and CEO of Procore. “Our excellent fourth quarter results reflect the strength of our technology, partnership and brand, and an increasing appetite for digitization across the construction industry,” said Tooey Courtemanche, Founder, President and CEO of Procore.
“We delivered outstanding Q4 results to close out an important year for Procore,” said Paul Lyandres, CFO of Procore. “The investments we made set us up for a strong year of accelerated revenue growth throughout 2021. As we enter 2022, we are in a great position to deliver on key initiatives this year and over the longer term.”
Fourth Quarter 2021 Financial Highlights:
- Revenue was $146 million, an increase of 33% year-over-year.
- Including a $4 million contribution from Levelset
- GAAP gross margin was 80% and non-GAAP gross margin was 83%.
- GAAP operating margin was (51%) and non-GAAP operating margin was (13%).
- GAAP operating margin includes approximately 690 bps of headwind from Levelset
- Non-GAAP operating margin includes approximately 130 bps of headwind from Levelset
- Operating cash outflow for the fourth quarter was $4 million.
- Free cash outflow for the fourth quarter was $13 million.
- Total Remaining Performance Obligation (“RPO”) was $603 million, an increase of 38% year-over-year.
- Short Term RPO was approximately 70% of Total RPO, representing an increase of 35% year-over-year
Full Year 2021 Financial Highlights:
- Revenue was $515 million, an increase of 29% year-over-year.
- GAAP gross margin was 81% and non-GAAP gross margin was 84%.
- GAAP operating margin was (56%) and non-GAAP operating margin was (6%).
- Operating cash flow for 2021 was $37 million, up 68% year-over-year.
- Free cash flow for 2021 was $9 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 588 net new organic customers in the fourth quarter, ending with a total of 12,193 organic customers.
- Excluding over 3,000 customers from Levelset
- Number of organic customers contributing more than $100,000 of annual recurring revenue totaled 1,111 as of December 31, 2021, an increase of 32% year-over-year.
- Number of organic customers contributing more than $1,000,000 of annual recurring revenue totaled 30 as of December 31, 2021, an increase of 50% year-over-year.
- Achieved a gross revenue retention rate of over 95% for 2021.
- Ended 2021 with 2,572 employees, an increase of 34% year-over-year.
- Excluding over 300 employees from Levelset
- As of December 31, 2021, 71% of total annual recurring revenue was generated from customers using four or more products, an increase of 300 bps year-over-year.
- As of December 31, 2021, 37% of total annual recurring revenue was generated from customers using six or more products, an increase of 500 bps year-over-year.
- Appointed Microsoft executive Erin Chappleto Procore’s Board of Directors.
- Named 2021 Philanthropist of the Yearby the United States Minority Contractors Association.
- Completed the acquisition of Levelsetto simplify lien management workflows for construction.
First Quarter and Full Year 2022 Outlook:
Procore is providing the following guidance for the first quarter and full year 2022:
- First Quarter 2022 Outlook:
- Revenue is expected to be in the range of $149 million to $151 million, representing year-over-year growth of 31% to 33%.
- Non-GAAP operating margin is expected to be in the range of (15%) to (16%).
- Full Year 2022 Outlook:
- Revenue is expected to be in the range of $661 million to $666 million, representing year-over-year growth of 28% to 29%.
- Including $25 million from Levelset
- Non-GAAP operating margin is expected to be in the range of (15%) to (16%).
- Including 400 basis points of headwind from acquisition of Levelset
- Revenue is expected to be in the range of $661 million to $666 million, representing year-over-year growth of 28% to 29%.
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 Tuesday, February 22, 2022. A live audio webcast will be accessible on Procore's investor relations website.
