The following table presents our current and non-current RPO at the end of each period:
|
September 30, |
|
Change |
||||||||
|
|
2024 |
|
|
2023 |
|
Dollar |
|
Percent |
||
|
(dollars in thousands) |
||||||||||
Remaining performance obligations |
|
|
|
|
|
|
|
||||
Current |
$ |
738,856 |
|
$ |
635,000 |
|
$ |
103,856 |
|
16 |
% |
Non-current |
|
334,560 |
|
|
255,381 |
|
|
79,179 |
|
31 |
% |
Total remaining performance obligations |
$ |
1,073,416 |
|
$ |
890,381 |
|
$ |
183,035 |
|
21 |
% |
Procore Technologies, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(in thousands) |
||||||||||||||
| Operating activities |
|
|
|
|
|
|
|
||||||||
| Net loss |
$ |
(26,388 |
) |
|
$ |
(43,847 |
) |
|
$ |
(43,665 |
) |
|
$ |
(160,175 |
) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities |
|
|
|
|
|
|
|
||||||||
| Stock-based compensation |
|
48,175 |
|
|
|
44,809 |
|
|
|
137,532 |
|
|
|
132,234 |
|
| Depreciation and amortization |
|
24,233 |
|
|
|
17,733 |
|
|
|
65,127 |
|
|
|
51,943 |
|
| Accretion of discounts on marketable debt securities, net |
|
(3,382 |
) |
|
|
(2,953 |
) |
|
|
(10,131 |
) |
|
|
(6,615 |
) |
| Abandonment of long-lived assets |
|
238 |
|
|
|
277 |
|
|
|
818 |
|
|
|
812 |
|
| Noncash operating lease expense |
|
2,913 |
|
|
|
2,700 |
|
|
|
7,906 |
|
|
|
7,932 |
|
| Unrealized foreign currency loss, net |
|
(419 |
) |
|
|
182 |
|
|
|
295 |
|
|
|
739 |
|
| Deferred income taxes |
|
2 |
|
|
|
2 |
|
|
|
4 |
|
|
|
7 |
|
| Provision for credit losses |
|
243 |
|
|
|
3,152 |
|
|
|
648 |
|
|
|
6,882 |
|
| Decrease (increase) in fair value of strategic investments |
|
184 |
|
|
|
149 |
|
|
|
(457 |
) |
|
|
155 |
|
| Changes in operating assets and liabilities, net of effect of asset acquisitions and business combinations |
|
|
|
|
|
|
|
||||||||
| Accounts receivable |
|
(14,698 |
) |
|
|
(20,433 |
) |
|
|
34,296 |
|
|
|
3,144 |
|
| Deferred contract cost assets |
|
(1,128 |
) |
|
|
(1,469 |
) |
|
|
(3,217 |
) |
|
|
(5,099 |
) |
| Prepaid expenses and other assets |
|
(11,931 |
) |
|
|
(3,579 |
) |
|
|
(12,121 |
) |
|
|
(1,878 |
) |
| Accounts payable |
|
(2,250 |
) |
|
|
1,109 |
|
|
|
11,029 |
|
|
|
2,258 |
|
| Accrued expenses and other liabilities |
|
21,972 |
|
|
|
29,135 |
|
|
|
(8,475 |
) |
|
|
(1,975 |
) |
| Deferred revenue |
|
4,609 |
|
|
|
9,498 |
|
|
|
(6,268 |
) |
|
|
29,080 |
|
| Operating lease liabilities |
|
(3,097 |
) |
|
|
(2,791 |
) |
|
|
(6,205 |
) |
|
|
(8,172 |
) |
| Net cash provided by (used in) operating activities |
|
39,276 |
|
|
|
33,674 |
|
|
|
167,116 |
|
|
|
51,272 |
|
| Investing activities |
|
|
|
|
|
|
|
||||||||
| Purchases of property and equipment |
|
(3,547 |
) |
|
|
(3,379 |
) |
|
|
(7,510 |
) |
|
|
(8,073 |
) |
| Capitalized software development costs |
|
(12,721 |
) |
|
|
(7,836 |
) |
|
|
(32,453 |
) |
|
|
(25,187 |
) |
| Purchases of strategic investments |
|
(845 |
) |
|
|
(84 |
) |
|
|
(1,917 |
) |
|
|
(526 |
) |
| Purchases of marketable securities |
|
(86,245 |
) |
|
|
(80,000 |
) |
|
|
(410,619 |
) |
|
|
(309,282 |
) |
| Maturities of marketable securities |
|
145,619 |
|
|
|
64,894 |
|
|
|
371,718 |
|
|
|
287,620 |
|
| Sales of marketable securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,452 |
|
| Originations of materials financing |
|
— |
|
|
|
(6,578 |
) |
|
|
— |
|
|
|
(23,585 |
) |
| Customer repayments of materials financing |
|
88 |
|
|
|
8,057 |
|
|
|
1,571 |
|
|
|
21,053 |
|
| Acquisition of a business, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(25,945 |
) |
|
|
— |
|
| Asset acquisitions, net of cash acquired |
|
— |
|
|
|
(6,011 |
) |
|
|
(3,792 |
) |
|
|
(6,011 |
) |
| Net cash used in investing activities |
|
42,349 |
|
|
|
(30,937 |
) |
|
|
(108,947 |
) |
|
|
(58,539 |
) |
| Financing activities |
|
|
|
|
|
|
|
||||||||
| Proceeds from stock option exercises |
|
2,456 |
|
|
|
4,155 |
|
|
|
12,371 |
|
|
|
15,094 |
|
| Proceeds from employee stock purchase plan |
|
— |
|
|
|
— |
|
|
|
13,187 |
|
|
|
13,006 |
|
| Payment of deferred business combination consideration |
|
(1,470 |
) |
|
|
— |
|
|
|
(1,470 |
) |
|
|
— |
|
| Payment of deferred asset acquisition consideration |
|
(81 |
) |
|
|
— |
|
|
|
(81 |
) |
|
|
— |
|
| Principal payments under finance lease agreements, net of proceeds from lease incentives |
|
(900 |
) |
|
|
(520 |
) |
|
|
(1,569 |
) |
|
|
(1,450 |
) |
| Net cash provided by financing activities |
|
5 |
|
|
|
3,635 |
|
|
|
22,438 |
|
|
|
26,650 |
|
| Net increase in cash and cash equivalents |
|
81,630 |
|
|
|
6,372 |
|
|
|
80,607 |
|
|
|
19,383 |
|
| Effect of exchange rate changes on cash |
|
1,429 |
|
|
|
(572 |
) |
|
|
901 |
|
|
|
(881 |
) |
| Cash and cash equivalents, beginning of period |
|
356,239 |
|
|
|
312,518 |
|
|
|
357,790 |
|
|
|
299,816 |
|
| Cash and cash equivalents, end of period |
$ |
439,298 |
|
|
$ |
318,318 |
|
|
$ |
439,298 |
|
|
$ |
318,318 |
|
| Procore Technologies, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited) |
|||||||||||||||
| Reconciliation of gross profit and gross margin to non-GAAP gross profit and non-GAAP gross margin: |
|||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(dollars in thousands) |
||||||||||||||
| Revenue |
$ |
295,885 |
|
|
$ |
247,907 |
|
|
$ |
849,660 |
|
|
$ |
689,969 |
|
| Gross profit |
|
240,931 |
|
|
|
203,782 |
|
|
|
700,882 |
|
|
|
563,338 |
|
| Stock-based compensation expense |
|
4,188 |
|
|
|
2,981 |
|
|
|
11,056 |
|
|
|
8,357 |
|
| Amortization of acquired technology intangible assets |
|
6,698 |
|
|
|
5,506 |
|
|
|
18,739 |
|
|
|
16,492 |
|
| Employer payroll tax on employee stock transactions |
|
113 |
|
|
|
133 |
|
|
|
485 |
|
|
|
439 |
|
| Non-GAAP gross profit |
$ |
251,930 |
|
|
$ |
212,402 |
|
|
$ |
731,162 |
|
|
$ |
588,626 |
|
| Gross margin |
|
81 |
% |
|
|
82 |
% |
|
|
82 |
% |
|
|
82 |
% |
| Non-GAAP gross margin |
|
85 |
% |
|
|
86 |
% |
|
|
86 |
% |
|
|
85 |
% |
| Reconciliation of operating expenses to non-GAAP operating expenses: |
|||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(dollars in thousands) |
||||||||||||||
| Revenue |
$ |
295,885 |
|
|
$ |
247,907 |
|
|
$ |
849,660 |
|
|
$ |
689,969 |
|
| GAAP sales and marketing |
|
141,370 |
|
|
|
129,672 |
|
|
|
390,286 |
|
|
|
372,397 |
|
| Stock-based compensation expense |
|
(14,034 |
) |
|
|
(14,390 |
) |
|
|
(42,725 |
) |
|
|
(41,964 |
) |
| Amortization of acquired intangible assets |
|
(3,224 |
) |
|
|
(3,106 |
) |
|
|
(9,475 |
) |
|
|
(9,319 |
) |
| Employer payroll tax on employee stock transactions |
|
(815 |
) |
|
|
(766 |
) |
|
|
(2,867 |
) |
|
|
(2,383 |
) |
| Acquisition-related expenses |
|
— |
|
|
|
(548 |
) |
|
|
(1,448 |
) |
|
|
(2,002 |
) |
| Non-GAAP sales and marketing |
$ |
123,297 |
|
|
$ |
110,862 |
|
|
$ |
333,771 |
|
|
$ |
316,729 |
|
| GAAP sales and marketing as a percentage of revenue |
|
48 |
% |
|
|
52 |
% |
|
|
46 |
% |
|
|
54 |
% |
| Non-GAAP sales and marketing as a percentage of revenue |
|
42 |
% |
|
|
45 |
% |
|
|
39 |
% |
|
|
46 |
% |
|
|
|
|
|
|
|
|
|
||||||||
| GAAP research and development |
$ |
80,791 |
|
|
$ |
72,708 |
|
|
$ |
223,698 |
|
|
$ |
225,960 |
|
| Stock-based compensation expense |
|
(18,321 |
) |
|
|
(16,350 |
) |
|
|
(49,684 |
) |
|
|
(52,401 |
) |
| Amortization of acquired intangible assets |
|
(668 |
) |
|
|
(678 |
) |
|
|
(2,008 |
) |
|
|
(2,087 |
) |
| Employer payroll tax on employee stock transactions |
|
(521 |
) |
|
|
(638 |
) |
|
|
(3,089 |
) |
|
|
(2,885 |
) |
| Acquisition-related expenses |
|
— |
|
|
|
(136 |
) |
|
|
— |
|
|
|
(6,324 |
) |
| Non-GAAP research and development |
$ |
61,281 |
|
|
$ |
54,906 |
|
|
$ |
168,917 |
|
|
$ |
162,263 |
|
| GAAP research and development as a percentage of revenue |
|
27 |
% |
|
|
29 |
% |
|
|
26 |
% |
|
|
33 |
% |
| Non-GAAP research and development as a percentage of revenue |
|
21 |
% |
|
|
22 |
% |
|
|
20 |
% |
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
||||||||
| GAAP general and administrative |
$ |
55,267 |
|
|
$ |
51,753 |
|
|
$ |
157,077 |
|
|
$ |
143,324 |
|
| Stock-based compensation expense |
|
(13,912 |
) |
|
|
(12,253 |
) |
|
|
(39,602 |
) |
|
|
(32,637 |
) |
| Employer payroll tax on employee stock transactions |
|
(281 |
) |
|
|
(501 |
) |
|
|
(1,820 |
) |
|
|
(1,636 |
) |
| Acquisition-related expenses |
|
(51 |
) |
|
|
(19 |
) |
|
|
(614 |
) |
|
|
(19 |
) |
| Non-GAAP general and administrative |
$ |
41,023 |
|
|
$ |
38,980 |
|
|
$ |
115,041 |
|
|
$ |
109,032 |
|
| GAAP general and administrative as a percentage of revenue |
|
19 |
% |
|
|
21 |
% |
|
|
18 |
% |
|
|
21 |
% |
| Non-GAAP general and administrative as a percentage of revenue |
|
14 |
% |
|
|
16 |
% |
|
|
14 |
% |
|
16 |
% |
|
| Reconciliation of loss from operations and operating margin to non-GAAP income (loss) from operations and non-GAAP operating margin: |
|||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(dollars in thousands) |
||||||||||||||
| Revenue |
$ |
295,885 |
|
|
$ |
247,907 |
|
|
$ |
849,660 |
|
|
$ |
689,969 |
|
| Loss from operations |
|
(36,497 |
) |
|
|
(50,351 |
) |
|
|
(70,179 |
) |
|
|
(178,343 |
) |
| Stock-based compensation expense |
|
50,455 |
|
|
|
45,974 |
|
|
|
143,067 |
|
|
|
135,359 |
|
| Amortization of acquired intangible assets |
|
10,590 |
|
|
|
9,290 |
|
|
|
30,222 |
|
|
|
27,898 |
|
| Employer payroll tax on employee stock transactions |
|
1,730 |
|
|
|
2,038 |
|
|
|
8,261 |
|
|
|
7,343 |
|
| Acquisition-related expenses |
|
51 |
|
|
|
703 |
|
|
|
2,062 |
|
|
|
8,345 |
|
| Non-GAAP income from operations |
$ |
26,329 |
|
|
$ |
7,654 |
|
|
$ |
113,433 |
|
|
$ |
602 |
|
| Operating margin |
|
(12 |
%) |
|
|
(20 |
%) |
|
|
(8 |
%) |
|
|
(26 |
%) |
| Non-GAAP operating margin |
|
9 |
% |
|
|
3 |
% |
|
|
13 |
% |
|
|
0 |
% |
| Reconciliation of net loss and net loss per share to non-GAAP net income and non-GAAP net income per share: |
|||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(in thousands, except share and per share amounts) |
||||||||||||||
| Revenue |
$ |
295,885 |
|
|
$ |
247,907 |
|
|
$ |
849,660 |
|
|
$ |
689,969 |
|
| Net loss |
|
(26,388 |
) |
|
|
(43,847 |
) |
|
|
(43,665 |
) |
|
|
(160,175 |
) |
| Stock-based compensation expense |
|
50,455 |
|
|
|
45,974 |
|
|
|
143,067 |
|
|
|
135,359 |
|
| Amortization of acquired intangible assets |
|
10,590 |
|
|
|
9,290 |
|
|
|
30,222 |
|
|
|
27,898 |
|
| Employer payroll tax on employee stock transactions |
|
1,730 |
|
|
|
2,038 |
|
|
|
8,261 |
|
|
|
7,343 |
|
| Acquisition-related expenses |
|
51 |
|
|
|
703 |
|
|
|
2,062 |
|
|
|
8,345 |
|
| Non-GAAP net income |
$ |
36,438 |
|
|
$ |
14,158 |
|
|
$ |
139,947 |
|
|
$ |
18,770 |
|
|
|
|
|
|
|
|
|
|
||||||||
| Numerator: |
|
|
|
|
|
|
|
||||||||
| Non-GAAP net income |
$ |
36,438 |
|
|
$ |
14,158 |
|
|
$ |
139,947 |
|
|
$ |
18,770 |
|
|
|
|
|
|
|
|
|
|
||||||||
| Denominator: |
|
|
|
|
|
|
|
||||||||
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic |
|
148,134,585 |
|
|
|
142,828,406 |
|
|
|
146,854,541 |
|
|
|
141,249,446 |
|
| Effect of dilutive securities: Employee stock awards |
|
3,693,792 |
|
|
|
6,285,767 |
|
|
|
5,029,245 |
|
|
|
6,672,063 |
|
| Weighted-average shares used in computing net income per share attributable to common stockholders, diluted |
|
151,828,377 |
|
|
|
149,114,173 |
|
|
|
151,883,786 |
|
|
|
147,921,509 |
|
|
|
|
|
|
|
|
|
|
||||||||
| GAAP net loss per share, basic |
$ |
(0.18 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.30 |
) |
|
$ |
(1.13 |
) |
| GAAP net loss per share, diluted |
$ |
(0.18 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.30 |
) |
|
$ |
(1.13 |
) |
| Non-GAAP net income per share, basic |
$ |
0.25 |
|
|
$ |
0.10 |
|
|
$ |
0.95 |
|
|
$ |
0.13 |
|
| Non-GAAP net income per share, diluted |
$ |
0.24 |
|
|
$ |
0.09 |
|
|
$ |
0.92 |
|
|
$ |
0.13 |
|
| Computation of free cash flow: |
|||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(in thousands) |
||||||||||||||
| Net cash provided by operating activities |
$ |
39,276 |
|
|
$ |
33,674 |
|
|
$ |
167,116 |
|
|
$ |
51,272 |
|
| Purchases of property, plant, and equipment |
|
(3,547 |
) |
|
|
(3,379 |
) |
|
|
(7,510 |
) |
|
|
(8,073 |
) |
| Capitalized software development costs |
|
(12,721 |
) |
|
|
(7,836 |
) |
|
|
(32,453 |
) |
|
|
(25,187 |
) |
| Non-GAAP free cash flow |
$ |
23,008 |
|
|
$ |
22,459 |
|
|
$ |
127,153 |
|
|
$ |
18,012 |
|
