Procore Announces Third Quarter 2022 Financial Results
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Procore Announces Third Quarter 2022 Financial Results

Hosting Inaugural Investor Day on Wednesday, November 9

CARPINTERIA, Calif. — (BUSINESS WIRE) — November 2, 2022Procore Technologies, Inc. (NYSE: PCOR), a leading global provider of construction management software, today announced financial results for the third quarter ended September 30, 2022.

“Our excellent third quarter performance reflects the value that our investments in our platform continue to deliver to our customers,” said Tooey Courtemanche, Founder, President, and CEO of Procore. “Procore is designed to solve real problems while driving better business outcomes for our customers.”

“We delivered another quarter of impressive results on the top and bottom line, highlighted by growth across stakeholders and customer sizes, as well as operating margin improvement,” said Paul Lyandres, CFO of Procore. “These results are a testament to our deepening partnership with the industry, our focus on scaling efficiently, and the significant opportunity ahead of us. We look forward to sharing more at our upcoming Investor Day.”

Third Quarter 2022 Financial Highlights:

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:

Leadership Updates:

On August 15, 2022, Procore announced the appointment of Steve Davis as Procore’s President of Product & Technology. In this role, Mr. Davis will lead Procore’s product, design, and engineering organizations.

Effective as of October 31, 2022, Dennis Lyandres resigned from his position as Procore’s Chief Revenue Officer and transitioned to a new position as Special Advisor to the CEO. In this new role, Mr. Lyandres will focus on certain areas of strategic importance to Procore’s future success, including international expansion and scale.

Fourth Quarter and Full Year 2022 Outlook:

Procore is providing the following guidance for the fourth quarter and full year 2022:

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 third quarter results at 2:00 p.m., Pacific Time, on Wednesday, November 2, 2022. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com.

November 9, 2022 Investor Day

Procore Technologies, Inc. will host its inaugural Investor Day on Wednesday, November 9, 2022 from 9:00 a.m. to 1:00 p.m., Central Time. The event will be held in-person in conjunction with Groundbreak 2022, Procore’s leading construction technology conference, taking place at the Ernest N. Morial Convention Center in New Orleans, Louisiana.

A live webcast of the event will begin at 9:00 a.m., Central Time, on November 9, 2022. Interested parties can access the webcast by registering here. A replay of the webcast will also be made available on Procore's investor relations website at http://investors.procore.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Procore and its industry that involve substantial risks and uncertainties. All statements in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or future financial or operating performance, and may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would,” or the negative of these words, or other similar terms or expressions that concern Procore’s expectations, strategy, plans, or intentions.

Procore has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that Procore believes may affect its business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors that could cause results to differ materially from Procore’s current expectations, including, but not limited to, our expectations regarding our financial performance, including revenues, expenses, and margins, and our ability to achieve or maintain future profitability, economic, and industry trends (in particular, the rate of adoption of construction management software and digitization of the construction industry, inflation, and challenging geopolitical conditions), our ability to attract new customers and retain and increase sales to existing customers, the performance of our corporate investments, our ability to expand internationally, our estimated total addressable market, and as set forth in Procore’s filings with the Securities and Exchange Commission. You should not place undue reliance on Procore’s forward-looking statements. Procore assumes no obligation to update any forward-looking statements to reflect events or circumstances that exist or change after the date on which they were made, except as required by law.

Non-GAAP Financial Measures

Procore believes that the use of certain non-GAAP financial measures as described below, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, and may assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. These non-GAAP financial measures are not prepared in accordance with U.S. generally accepted accounting principles, or GAAP.

Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Loss from Operations, Non-GAAP Operating Margin, Non-GAAP Net Loss, and Non-GAAP Net Loss per Share: Procore defines these non-GAAP financial measures as the respective GAAP measures, excluding stock-based compensation expense, amortization of acquired intangible assets, employer payroll tax related to employee stock transactions, acquisition-related expenses, and the income tax effect of non-GAAP items. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by total revenue. Non-GAAP operating margin is the ratio calculated by dividing non-GAAP loss from operations by total revenue.

Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company's non-cash expenses, Procore believes that providing non-GAAP financial measures that exclude stock-based compensation expense allow for meaningful comparisons between its operating results from period to period. The expense related to amortization of acquired intangible assets is dependent upon estimates and assumptions, which can vary significantly and are unique to each asset acquired; therefore, Procore believes non-GAAP measures that adjust for the amortization of acquired intangible assets provide investors a consistent basis for comparison across accounting periods. The amount of employer payroll tax-related items on employee stock transactions is dependent on restricted stock unit settlements, option exercises, related stock price, and other factors that are beyond Procore’s control and that do not correlate to the operation of the business. When evaluating the performance of its business and making operating plans, Procore does not consider these items (for example, when considering the impact of equity award grants, the company places a greater emphasis on overall stockholder dilution than the accounting charges associated with such grants). Additionally, acquisition-related expenses, such as transaction costs and retention payments, are expenses that are not necessarily reflective of operational performance during a period. Procore believes that the exclusion of acquisition-related expenses provides for a useful comparison of our operating results to prior periods and to its peer companies, which commonly exclude these expenses. Income tax benefits relate to the release of a portion of our valuation allowance as a result of deferred tax liabilities recorded related to acquisitions that are available sources of income to realize our deferred tax assets. We exclude the income tax effect associated with our acquisitions from certain of our non-GAAP financial measures because we believe that excluding this provides meaningful supplemental information regarding our operational performance. Overall, Procore believes it is useful to exclude these expenses in order to better understand the long-term performance of its core business and to facilitate comparison of its results period-over-period and to those of peer companies. All of these non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Procore's own operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to information provided by other companies in Procore's industry, as other companies in the industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on Procore's reported financial results. Further, stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in Procore's business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Procore's business.

Free Cash Flow: Procore defines free cash flow as net cash provided by (used in) operating activities, less purchases of property and equipment and capitalized software development costs. Procore believes free cash flow is an important liquidity measure of the cash (if any) that is available, after our operating activities and capital expenditures. Procore uses free cash flow in conjunction with traditional GAAP measures to assess its liquidity and evaluate the effectiveness of its business strategies. Once Procore’s business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.

About Procore

Procore is a leading global provider of construction management software. Over 1 million projects and more than $1 trillion USD in construction volume have run on Procore's platform. Procore’s platform connects key project stakeholders to solutions Procore has built specifically for the construction industry—for the owner, the general contractor, and the specialty contractor. Procore's App Marketplace has a multitude of partner solutions that integrate seamlessly with Procore’s platform, giving construction professionals the freedom to connect with what works best for them. Headquartered in Carpinteria, California, Procore has offices around the globe. Learn more at Procore.com.

PROCORE-IR

Category: Earnings

 

Procore Technologies, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

 
 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

(in thousands, except share and per share amounts)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

$

186,429

 

 

$

131,990

 

 

$

518,150

 

 

$

368,718

 

Cost of revenue (1)(2)(3)

 

 

37,779

 

 

 

22,693

 

 

 

107,846

 

 

 

68,545

 

Gross profit

 

 

148,650

 

 

 

109,297

 

 

 

410,304

 

 

 

300,173

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing (1)(2)(3)(4)

 

 

109,608

 

 

 

70,356

 

 

 

306,806

 

 

 

224,226

 

Research and development (1)(2)(3)(4)

 

 

71,493

 

 

 

53,447

 

 

 

195,569

 

 

 

176,619

 

General and administrative (1)(3)(4)

 

 

39,362

 

 

 

35,051

 

 

 

123,181

 

 

 

110,805

 

Total operating expenses

 

 

220,463

 

 

 

158,854

 

 

 

625,556

 

 

 

511,650

 

Loss from operations

 

 

(71,813

)

 

 

(49,557

)

 

 

(215,252

)

 

 

(211,477

)

Interest income

 

 

2,143

 

 

 

51

 

 

 

2,895

 

 

 

100

 

Interest expense

 

 

(504

)

 

 

(572

)

 

 

(1,636

)

 

 

(1,759

)

Other expense, net

 

 

(698

)

 

 

(653

)

 

 

(1,045

)

 

 

(880

)

Loss before provision for income taxes

 

 

(70,872

)

 

 

(50,731

)

 

 

(215,038

)

 

 

(214,016

)

Provision for income taxes

 

 

333

 

 

 

11

 

 

 

709

 

 

 

177

 

Net loss

 

$

(71,205

)

 

$

(50,742

)

 

$

(215,747

)

 

$

(214,193

)

Net loss per share attributable to common stockholders,

basic and diluted

 

$

(0.52

)

 

$

(0.39

)

 

$

(1.59

)

 

$

(2.71

)

Weighted-average shares used in computing net loss per

share attributable to common stockholders, basic and

diluted

 

 

137,180,639

 

 

 

131,438,987

 

 

 

135,888,952

 

 

 

79,145,139

 

 

(1) Includes stock-based compensation expense as follows:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Cost of revenue

 

$

1,835

 

 

$

679

 

 

$

5,339

 

 

$

6,758

 

Sales and marketing

 

 

15,483

 

 

 

11,178

 

 

 

38,351

 

 

 

57,285

 

Research and development

 

 

17,758

 

 

 

15,064

 

 

 

43,910

 

 

 

69,627

 

General and administrative

 

 

9,701

 

 

 

11,262

 

 

 

28,281

 

 

 

52,259

 

Total stock-based compensation expense

 

$

44,777

 

 

$

38,183

 

 

$

115,881

 

 

$

185,929

 

(2) Includes amortization of acquired intangible assets as follows:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Cost of revenue

 

$

5,627

 

 

$

1,086

 

 

$

16,935

 

 

$

3,258

 

Sales and marketing

 

 

3,106

 

 

 

404

 

 

 

9,318

 

 

 

1,349

 

Research and development

 

 

877

 

 

 

907

 

 

 

2,674

 

 

 

1,770

 

Total amortization of acquired intangible assets

 

$

9,610

 

 

$

2,397

 

 

$

28,927

 

 

$

6,377

 

(3) Includes employer payroll tax on employee stock transactions as follows:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Cost of revenue

 

$

99

 

 

$

66

 

 

$

248

 

 

$

400

 

Sales and marketing

 

 

682

 

 

 

473

 

 

 

1,607

 

 

 

1,830

 

Research and development

 

 

638

 

 

 

386

 

 

 

2,188

 

 

 

2,208

 

General and administrative

 

 

304

 

 

 

170

 

 

 

1,031

 

 

 

885

 

Total employer payroll tax on employee stock

transactions

 

$

1,723

 

 

$

1,095

 

 

$

5,074

 

 

$

5,323

 

(4) Includes acquisition-related expenses as follows:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Sales and marketing

 

$

655

 

 

$

-

 

 

$

1,070

 

 

$

110

 

Research and development

 

 

1,679

 

 

 

251

 

 

 

3,870

 

 

 

442

 

General and administrative

 

 

3

 

 

 

2,472

 

 

 

2,122

 

 

 

2,914

 

Total acquisition-related expenses

 

$

2,337

 

 

$

2,723

 

 

$

7,062

 

 

$

3,466

 

Procore Technologies, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

 
 

(in thousands)

 

September 30,
2022

 

 

December 31,
2021

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

264,622

 

 

$

586,108

 

Marketable securities

 

 

293,430

 

 

 

-

 

Accounts receivable, net

 

 

106,749

 

 

 

113,977

 

Contract cost asset, current

 

 

20,658

 

 

 

17,030

 

Prepaid expenses and other current assets

 

 

49,913

 

 

 

35,173

 

Total current assets

 

 

735,372

 

 

 

752,288

 

Capitalized software development costs, net

 

 

51,376

 

 

 

27,062

 

Property and equipment, net

 

 

40,666

 

 

 

36,837

 

Right of use assets - finance leases

 

 

37,459

 

 

 

39,623

 

Right of use assets - operating leases

 

 

45,494

 

 

 

44,052

 

Contract cost asset, non-current

 

 

33,528

 

 

 

25,889

 

Intangible assets, net

 

 

172,303

 

 

 

201,977

 

Goodwill

 

 

539,016

 

 

 

540,922

 

Other assets

 

 

22,090

 

 

 

22,007

 

Total assets

 

$

1,677,304

 

 

$

1,690,657

 

Liabilities, Redeemable Convertible Preferred Stock and Stockholders’

Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

16,277

 

 

$

15,490

 

Accrued expenses

 

 

83,079

 

 

 

65,907

 

Deferred revenue, current

 

 

329,072

 

 

 

301,557

 

Other current liabilities

 

 

30,475

 

 

 

20,750

 

Total current liabilities

 

 

458,903

 

 

 

403,704

 

Deferred revenue, non-current

 

 

5,023

 

 

 

4,024

 

Finance lease liabilities, non-current

 

 

45,790

 

 

 

47,344

 

Operating lease liabilities, non-current

 

 

39,935

 

 

 

41,573

 

Other liabilities, non-current

 

 

3,352

 

 

 

4,723

 

Total liabilities

 

 

553,003

 

 

 

501,368

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Common stock

 

 

14

 

 

 

13

 

Additional paid-in capital

 

 

2,004,995

 

 

 

1,852,071

 

Accumulated other comprehensive loss

 

 

(2,749

)

 

 

(583

)

Accumulated deficit

 

 

(877,959

)

 

 

(662,212

)

Total stockholders’ equity

 

 

1,124,301

 

 

 

1,189,289

 

Total liabilities, redeemable convertible preferred stock and stockholders’

equity

 

$

1,677,304

 

 

$

1,690,657

 

Remaining performance obligation:

The remaining performance obligation was $714.9 million as of September 30, 2022, approximately 70% of which is expected to be recognized as revenue within 12 months. The remaining performance obligation was $497.3 million as of September 30, 2021, approximately 72% of which was expected to be recognized as revenue within 12 months.

Procore Technologies, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

(in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(71,205

)

 

$

(50,742

)

 

$

(215,747

)

 

$

(214,193

)

Adjustments to reconcile net loss to net cash provided by

(used in) operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

44,777

 

 

 

38,183

 

 

 

115,881

 

 

 

185,929

 

Depreciation and amortization

 

 

15,903

 

 

 

8,149

 

 

 

46,453

 

 

 

23,269

 

Accretion of discounts on marketable debt securities, net

 

 

(650

)

 

 

-

 

 

 

(650

)

 

 

-

 

Abandonment of long-lived assets

 

 

177

 

 

 

-

 

 

 

1,064

 

 

 

554

 

Noncash lease expense

 

 

2,751

 

 

 

1,865

 

 

 

7,559

 

 

 

5,600

 

Unrealized foreign currency loss, net

 

 

526

 

 

 

184

 

 

 

881

 

 

 

875

 

Deferred income taxes

 

 

288

 

 

 

192

 

 

 

(350

)

 

 

93

 

Changes in operating assets and liabilities, net of effect of

business combinations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(17,611

)

 

 

(7,730

)

 

 

6,726

 

 

 

3,383

 

Deferred contract cost assets

 

 

(5,228

)

 

 

(2,011

)

 

 

(12,589

)

 

 

(7,073

)

Prepaid expenses and other assets

 

 

(2,721

)

 

 

(2,032

)

 

 

(7,256

)

 

 

(7,755

)

Accounts payable

 

 

(3,785

)

 

 

2,780

 

 

 

2,141

 

 

 

(128

)

Accrued expenses and other liabilities

 

 

31,973

 

 

 

14,149

 

 

 

23,064

 

 

 

28,684

 

Deferred revenue

 

 

14,143

 

 

 

13,876

 

 

 

29,849

 

 

 

24,721

 

Operating lease liabilities

 

 

(2,751

)

 

 

(1,725

)

 

 

(7,110

)

 

 

(3,654

)

Net cash flow provided by (used in) operating activities

 

 

6,587

 

 

 

15,138

 

 

 

(10,084

)

 

 

40,305

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(4,237

)

 

 

(4,211

)

 

 

(13,670

)

 

 

(8,405

)

Capitalized software development costs

 

 

(8,531

)

 

 

(4,459

)

 

 

(24,783

)

 

 

(10,175

)

Purchases of strategic investments

 

 

(635

)

 

 

-

 

 

 

(3,653

)

 

 

(3,450

)

Purchases of marketable securities

 

 

(293,078

)

 

 

-

 

 

 

(293,078

)

 

 

-

 

Originations of materials financing

 

 

(7,491

)

 

 

-

 

 

 

(16,750

)

 

 

-

 

Customer repayments of materials financing

 

 

5,736

 

 

 

-

 

 

 

11,997

 

 

 

-

 

Acquisition of a business, net of cash acquired

 

 

-

 

 

 

(8

)

 

 

-

 

 

 

(19,990

)

Settlement of post-close working capital adjustments from

business combinations

 

 

-

 

 

 

-

 

 

 

1,291

 

 

 

-

 

Net cash flow used in investing activities

 

 

(308,236

)

 

 

(8,678

)

 

 

(338,646

)

 

 

(42,020

)

Financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from initial public offering, net of underwriting

commissions and discounts

 

 

-

 

 

 

-

 

 

 

-

 

 

 

665,129

 

Proceeds from stock option exercises

 

 

4,741

 

 

 

6,187

 

 

 

19,345

 

 

 

35,313

 

Payments of deferred offering costs

 

 

-

 

 

 

(319

)

 

 

(270

)

 

 

(3,846

)

Proceeds from employee stock purchase plan

 

 

-

 

 

 

-

 

 

 

11,513

 

 

 

-

 

Payment of deferred business acquisition consideration

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(475

)

Principal payments under finance lease agreements, net of

proceeds from lease incentives

 

 

(486

)

 

 

(433

)

 

 

(1,330

)

 

 

(1,175

)

Net cash flow provided by financing activities

 

 

4,255

 

 

 

5,435

 

 

 

29,258

 

 

 

694,946

 

Net (decrease) increase in cash, cash equivalents and

restricted cash

 

 

(297,394

)

 

 

11,895

 

 

 

(319,472

)

 

 

693,231

 

Effect of exchange rate changes on cash

 

 

(1,208

)

 

 

(309

)

 

 

(2,014

)

 

 

(1,040

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

566,328

 

 

 

1,063,858

 

 

 

589,212

 

 

 

383,253

 

Cash, cash equivalents and restricted cash, end of period

 

$

267,726

 

 

$

1,075,444

 

 

$

267,726

 

 

$

1,075,444

 

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
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(dollars in thousands)

 

Revenue

 

$

186,429

 

 

$

131,990

 

 

$

518,150

 

 

$

368,718

 

Gross profit

 

 

148,650

 

 

 

109,297

 

 

 

410,304

 

 

 

300,173

 

Stock-based compensation expense

 

 

1,835

 

 

 

679

 

 

 

5,339

 

 

 

6,758

 

Amortization of acquired technology intangible assets

 

 

5,627

 

 

 

1,086

 

 

 

16,935

 

 

 

3,258

 

Employer payroll tax on employee stock transactions

 

 

99

 

 

 

66

 

 

 

248

 

 

 

400

 

Non-GAAP gross profit

 

$

156,211

 

 

$

111,128

 

 

$

432,826

 

 

$

310,589

 

Gross margin

 

 

80

%

 

 

83

%

 

 

79

%

 

 

81

%

Non-GAAP gross margin

 

 

84

%

 

 

84

%

 

 

84

%

 

 

84

%

Reconciliation of operating expenses to non-GAAP operating expenses:

 
 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(dollars in thousands)

 

Revenue

 

$

186,429

 

 

$

131,990

 

 

$

518,150

 

 

$

368,718

 

GAAP sales and marketing

 

 

109,608

 

 

 

70,356

 

 

 

306,806

 

 

 

224,226

 

Stock-based compensation expense

 

 

(15,483

)

 

 

(11,178

)

 

 

(38,351

)

 

 

(57,285

)

Amortization of acquired intangible assets

 

 

(3,106

)

 

 

(404

)

 

 

(9,318

)

 

 

(1,349

)

Employer payroll tax on employee stock transactions

 

 

(682

)

 

 

(473

)

 

 

(1,607

)

 

 

(1,830

)

Acquisition-related expenses

 

 

(655

)

 

 

-

 

 

 

(1,070

)

 

 

(110

)

Non-GAAP sales and marketing

 

$

89,682

 

 

$

58,301

 

 

$

256,460

 

 

$

163,652

 

GAAP sales and marketing as a percentage of revenue

 

 

59

%

 

 

53

%

 

 

59

%

 

 

61

%

Non-GAAP sales and marketing as a

percentage of revenue

 

 

48

%

 

 

44

%

 

 

49

%

 

 

44

%

GAAP research and development

 

$

71,493

 

 

$

53,447

 

 

$

195,569

 

 

$

176,619

 

Stock-based compensation expense

 

 

(17,758

)

 

 

(15,064

)

 

 

(43,910

)

 

 

(69,627

)

Amortization of acquired intangible assets

 

 

(877

)

 

 

(907

)

 

 

(2,674

)

 

 

(1,770

)

Employer payroll tax on employee stock transactions

 

 

(638

)

 

 

(386

)

 

 

(2,188

)

 

 

(2,208

)

Acquisition-related expenses

 

 

(1,679

)

 

 

(251

)

 

 

(3,870

)

 

 

(442

)

Non-GAAP research and development

 

$

50,541

 

 

$

36,839

 

 

$

142,927

 

 

$

102,572

 

GAAP research and development as a percentage of

revenue

 

 

38

%

 

 

40

%

 

 

38

%

 

 

48

%

Non-GAAP research and development as a

percentage of revenue

 

 

27

%

 

 

28

%

 

 

28

%

 

 

28

%

GAAP general and administrative

 

$

39,362

 

 

$

35,051

 

 

$

123,181

 

 

$

110,805

 

Stock-based compensation expense

 

 

(9,701

)

 

 

(11,262

)

 

 

(28,281

)

 

 

(52,259

)

Employer payroll tax on employee stock transactions

 

 

(304

)

 

 

(170

)

 

 

(1,031

)

 

 

(885

)

Acquisition-related expenses

 

 

(3

)

 

 

(2,472

)

 

 

(2,122

)

 

 

(2,914

)

Non-GAAP general and administrative

 

$

29,354

 

 

$

21,147

 

 

$

91,747

 

 

$

54,747

 

GAAP general and administrative as a percentage of

revenue

 

 

21

%

 

 

27

%

 

 

24

%

 

 

30

%

Non-GAAP general and administrative as a

percentage of revenue

 

 

16

%

 

 

16

%

 

 

18

%

 

 

15

%

Reconciliation of loss from operations and operating margin to non-GAAP loss from operations and non-GAAP operating margin:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(dollars in thousands)

 

Revenue

 

$

186,429

 

 

$

131,990

 

 

$

518,150

 

 

$

368,718

 

Loss from operations

 

 

(71,813

)

 

 

(49,557

)

 

 

(215,252

)

 

 

(211,477

)

Stock-based compensation expense

 

 

44,777

 

 

 

38,183

 

 

 

115,881

 

 

 

185,929

 

Amortization of acquired intangible assets

 

 

9,610

 

 

 

2,397

 

 

 

28,927

 

 

 

6,377

 

Employer payroll tax on employee stock transactions

 

 

1,723

 

 

 

1,095

 

 

 

5,074

 

 

 

5,323

 

Acquisition-related expenses

 

 

2,337

 

 

 

2,723

 

 

 

7,062

 

 

 

3,466

 

Non-GAAP loss from operations

 

$

(13,366

)

 

$

(5,159

)

 

$

(58,308

)

 

$

(10,382

)

Operating margin

 

 

(39

%)

 

 

(38

%)

 

 

(42

%)

 

 

(57

%)

Non-GAAP operating margin

 

 

(7

%)

 

 

(4

%)

 

 

(11

%)

 

 

(3

%)

Reconciliation of net loss and net loss per share to non-GAAP net loss and non-GAAP net loss per share:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(dollars in thousands)

 

Revenue

 

$

186,429

 

 

$

131,990

 

 

$

518,150

 

 

$

368,718

 

Net loss

 

 

(71,205

)

 

 

(50,742

)

 

 

(215,747

)

 

 

(214,193

)

Stock-based compensation expense

 

 

44,777

 

 

 

38,183

 

 

 

115,881

 

 

 

185,929

 

Amortization of acquired intangible assets

 

 

9,610

 

 

 

2,397

 

 

 

28,927

 

 

 

6,377

 

Employer payroll tax on employee stock transactions

 

 

1,723

 

 

 

1,095

 

 

 

5,074

 

 

 

5,323

 

Acquisition-related expenses

 

 

2,337

 

 

 

2,723

 

 

 

7,062

 

 

 

3,466

 

Income tax effect of non-GAAP items

 

 

(48

)

 

 

-

 

 

 

62

 

 

 

-

 

Non-GAAP net loss

 

$

(12,806

)

 

$

(6,344

)

 

$

(58,741

)

 

$

(13,098

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss

 

$

(12,806

)

 

$

(6,344

)

 

$

(58,741

)

 

$

(13,098

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing net loss per share

attributable to common stockholders, basic and diluted

 

 

137,180,639

 

 

 

131,438,987

 

 

 

135,888,952

 

 

 

79,145,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss per share, basic and diluted

 

$

(0.52

)

 

$

(0.39

)

 

$

(1.59

)

 

$

(2.71

)

Non-GAAP net loss per share, basic and

diluted

 

$

(0.09

)

 

$

(0.05

)

 

$

(0.43

)

 

$

(0.17

)

Computation of free cash flow:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Net cash provided by (used in) operating activities

 

$

6,587

 

 

$

15,138

 

 

$

(10,084

)

 

$

40,305

 

Purchases of property and equipment

 

 

(4,237

)

 

 

(4,211

)

 

 

(13,670

)

 

 

(8,405

)

Capitalized software development costs

 

 

(8,531

)

 

 

(4,459

)

 

 

(24,783

)

 

 

(10,175

)

Non-GAAP free cash flow

 

$

(6,181

)

 

$

6,468

 

 

$

(48,537

)

 

$

21,725

 

 



Contact:

Media Contact
Elizabeth Locke
press@procore.com

Investor Contact
Matthew Puljiz
ir@procore.com