Delaware | 001-40396 | 73-1636261 | ||||||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
||||||
6309 Carpinteria Avenue Carpinteria, CA |
93013 | |||||||
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) |
Name of each exchange on which registered | ||||||||||||
Common stock, $0.0001 par value | PCOR | The New York Stock Exchange |
Exhibit Number |
Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Procore Technologies, Inc. | ||||||||
Date: February 15, 2024 |
By: | /s/ Benjamin C. Singer | ||||||
Benjamin C. Singer Chief Legal Officer and Corporate Secretary |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||||||||||
Revenue | $ | 260,041 | $ | 202,053 | $ | 950,010 | $ | 720,203 | |||||||||||||||
Cost of revenue(1)(2)(3) |
47,831 | 40,570 | 174,462 | 148,416 | |||||||||||||||||||
Gross profit | 212,210 | 161,483 | 775,548 | 571,787 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Sales and marketing(1)(2)(3)(4) |
122,511 | 118,170 | 494,908 | 424,976 | |||||||||||||||||||
Research and development(1)(2)(3)(4) |
74,611 | 75,413 | 300,571 | 270,982 | |||||||||||||||||||
General and administrative(1)(3)(4) |
52,422 | 43,102 | 195,746 | 166,283 | |||||||||||||||||||
Total operating expenses | 249,544 | 236,685 | 991,225 | 862,241 | |||||||||||||||||||
Loss from operations | (37,334) | (75,202) | (215,677) | (290,454) | |||||||||||||||||||
Interest income | 5,167 | 3,152 | 19,779 | 5,826 | |||||||||||||||||||
Interest expense | (480) | (499) | (1,957) | (2,135) | |||||||||||||||||||
Accretion income, net | 3,179 | 1,369 | 9,794 | 2,035 | |||||||||||||||||||
Other income (expense), net | 649 | (247) | (360) | (1,737) | |||||||||||||||||||
Loss before provision for (benefit from) income taxes | (28,819) | (71,427) | (188,421) | (286,465) | |||||||||||||||||||
Provision for (benefit from) income taxes | 700 | (243) | 1,273 | 466 | |||||||||||||||||||
Net loss | $ | (29,519) | $ | (71,184) | $ | (189,694) | $ | (286,931) | |||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.20) | $ | (0.51) | $ | (1.34) | $ | (2.10) | |||||||||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 144,074,303 | 138,415,280 | 141,961,467 | 136,525,728 |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Cost of revenue | $ | 3,134 | $ | 1,914 | $ | 11,491 | $ | 7,253 | |||||||||||||||
Sales and marketing | 13,198 | 15,046 | 55,162 | 53,397 | |||||||||||||||||||
Research and development | 15,874 | 19,352 | 68,275 | 63,262 | |||||||||||||||||||
General and administrative | 11,769 | 10,693 | 44,406 | 38,974 | |||||||||||||||||||
Total stock-based compensation expense* | $ | 43,975 | $ | 47,005 | $ | 179,334 | $ | 162,886 |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Cost of revenue | $ | 5,904 | $ | 5,493 | $ | 22,396 | $ | 22,428 | |||||||||||||||
Sales and marketing | 3,106 | 3,107 | 12,425 | 12,425 | |||||||||||||||||||
Research and development | 670 | 854 | 2,757 | 3,528 | |||||||||||||||||||
Total amortization of acquired intangible assets | $ | 9,680 | $ | 9,454 | $ | 37,578 | $ | 38,381 |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Cost of revenue | $ | 101 | $ | 60 | $ | 540 | $ | 308 | |||||||||||||||
Sales and marketing | 383 | 348 | 2,766 | 1,955 | |||||||||||||||||||
Research and development | 332 | 286 | 3,217 | 2,474 | |||||||||||||||||||
General and administrative | 274 | 171 | 1,910 | 1,202 | |||||||||||||||||||
Total employer payroll tax on employee stock transactions | $ | 1,090 | $ | 865 | $ | 8,433 | $ | 5,939 |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Sales and marketing | $ | 481 | $ | 655 | $ | 2,483 | $ | 1,725 | |||||||||||||||
Research and development | 46 | 1,679 | 6,370 | 5,549 | |||||||||||||||||||
General and administrative | 16 | 6 | 35 | 2,128 | |||||||||||||||||||
Total acquisition-related expenses | $ | 543 | $ | 2,340 | $ | 8,888 | $ | 9,402 |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 357,790 | $ | 296,712 | |||||||
Marketable securities | 320,161 | 285,493 | |||||||||
Accounts receivable, net | 206,644 | 148,683 | |||||||||
Contract cost asset, current | 28,718 | 23,600 | |||||||||
Prepaid expenses and other current assets | 42,421 | 44,731 | |||||||||
Total current assets | 955,734 | 799,219 | |||||||||
Capitalized software development costs, net | 83,045 | 58,577 | |||||||||
Property and equipment, net | 36,258 | 39,193 | |||||||||
Right of use assets - finance leases | 34,375 | 37,026 | |||||||||
Right of use assets - operating leases | 44,141 | 41,934 | |||||||||
Contract cost asset, non-current | 44,564 | 40,477 | |||||||||
Intangible assets, net | 137,546 | 162,953 | |||||||||
Goodwill | 539,354 | 539,128 | |||||||||
Other assets | 18,551 | 21,903 | |||||||||
Total assets | $ | 1,893,568 | $ | 1,740,410 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 13,177 | $ | 14,282 | |||||||
Accrued expenses | 100,075 | 99,182 | |||||||||
Deferred revenue, current | 501,903 | 396,535 | |||||||||
Other current liabilities | 27,275 | 21,639 | |||||||||
Total current liabilities | 642,430 | 531,638 | |||||||||
Deferred revenue, non-current | 7,692 | 5,278 | |||||||||
Finance lease liabilities, non-current | 43,581 | 45,578 | |||||||||
Operating lease liabilities, non-current | 37,923 | 38,087 | |||||||||
Other liabilities, non-current | 6,332 | 3,049 | |||||||||
Total liabilities | 737,958 | 623,630 | |||||||||
Stockholders’ equity | |||||||||||
Common stock | 15 | 14 | |||||||||
Additional paid-in capital | 2,295,807 | 2,068,225 | |||||||||
Accumulated other comprehensive loss | (1,375) | (2,316) | |||||||||
Accumulated deficit | (1,138,837) | (949,143) | |||||||||
Total stockholders’ equity | 1,155,610 | 1,116,780 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,893,568 | $ | 1,740,410 |
December 31, | Change | ||||||||||||||||||||||
2023 | 2022 | Dollar | Percent | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Remaining performance obligations | |||||||||||||||||||||||
Current | $ | 698,284 | $ | 561,200 | $ | 137,084 | 24 | % | |||||||||||||||
Non-current | 302,215 | 236,300 | 65,915 | 28 | % | ||||||||||||||||||
Total remaining performance obligations | $ | 1,000,499 | $ | 797,500 | $ | 202,999 | 25 | % |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Operating activities | |||||||||||||||||||||||
Net loss | $ | (29,519) | $ | (71,184) | $ | (189,694) | $ | (286,931) | |||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities | |||||||||||||||||||||||
Stock-based compensation | 42,601 | 47,005 | 174,835 | 162,886 | |||||||||||||||||||
Depreciation and amortization | 19,690 | 16,586 | 71,633 | 63,039 | |||||||||||||||||||
Accretion of discounts on marketable debt securities, net | (3,175) | (1,359) | (9,790) | (2,009) | |||||||||||||||||||
Abandonment of long-lived assets | 676 | 280 | 1,488 | 1,344 | |||||||||||||||||||
Noncash operating lease expense | 5,160 | 2,611 | 13,092 | 10,170 | |||||||||||||||||||
Unrealized foreign currency gain, net | (1,263) | (1,232) | (524) | (351) | |||||||||||||||||||
Deferred income taxes | (776) | 67 | (769) | (283) | |||||||||||||||||||
Provision for credit losses | 1,170 | 1,247 | 8,052 | 2,584 | |||||||||||||||||||
Decrease in fair value of strategic investments | 132 | 519 | 287 | 483 | |||||||||||||||||||
Changes in operating assets and liabilities, net of effect of asset acquisitions and business combinations | |||||||||||||||||||||||
Accounts receivable | (60,636) | (42,196) | (57,492) | (35,817) | |||||||||||||||||||
Deferred contract cost assets | (4,207) | (9,385) | (9,306) | (21,974) | |||||||||||||||||||
Prepaid expenses and other assets | (4,490) | 4,456 | (6,368) | (3,754) | |||||||||||||||||||
Accounts payable | (3,196) | (1,682) | (938) | 459 | |||||||||||||||||||
Accrued expenses and other liabilities | 6,734 | 11,559 | 4,759 | 34,623 | |||||||||||||||||||
Deferred revenue | 77,510 | 67,180 | 106,590 | 97,029 | |||||||||||||||||||
Operating lease liabilities | (5,668) | (1,780) | (13,840) | (8,890) | |||||||||||||||||||
Net cash provided by operating activities | 40,743 | 22,692 | 92,015 | 12,608 | |||||||||||||||||||
Investing activities | |||||||||||||||||||||||
Purchases of property and equipment | (2,252) | (2,112) | (10,325) | (15,782) | |||||||||||||||||||
Capitalized software development costs | (9,498) | (8,865) | (34,685) | (33,648) | |||||||||||||||||||
Purchases of strategic investments | (238) | (306) | (764) | (3,959) | |||||||||||||||||||
Purchases of marketable securities | (93,142) | (76,128) | (402,424) | (369,206) | |||||||||||||||||||
Maturities of marketable securities | 84,620 | 85,632 | 372,240 | 85,632 | |||||||||||||||||||
Sales of marketable securities | — | — | 5,452 | — | |||||||||||||||||||
Originations of materials financing | (387) | (6,739) | (23,972) | (23,489) | |||||||||||||||||||
Customer repayments of materials financing | 5,189 | 6,688 | 26,242 | 18,685 | |||||||||||||||||||
Asset acquisitions, net of cash acquired | (1,814) | — | (7,825) | — | |||||||||||||||||||
Settlement of post-close working capital adjustments from business combinations | — | — | — | 1,291 | |||||||||||||||||||
Net cash used in investing activities | $ | (17,522) | $ | (1,830) | $ | (76,061) | $ | (340,476) |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Financing activities | |||||||||||||||||||||||
Proceeds from stock option exercises | $ | 2,524 | $ | 3,019 | $ | 17,618 | $ | 22,364 | |||||||||||||||
Proceeds from employee stock purchase plan | 12,394 | 10,620 | 25,400 | 22,133 | |||||||||||||||||||
Payments of deferred offering costs | — | — | — | (270) | |||||||||||||||||||
Payments of deferred business acquisition consideration | — | (3,870) | — | (3,870) | |||||||||||||||||||
Principal payments under finance lease agreements, net of proceeds from lease incentives | (403) | (375) | (1,853) | (1,705) | |||||||||||||||||||
Net cash provided by financing activities | 14,515 | 9,394 | 41,165 | 38,652 | |||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 37,736 | 30,256 | 57,119 | (289,216) | |||||||||||||||||||
Effect of exchange rate changes on cash | 1,736 | 1,834 | 855 | (180) | |||||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 318,318 | 267,726 | 299,816 | 589,212 | |||||||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 357,790 | $ | 299,816 | $ | 357,790 | $ | 299,816 |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenue | $ | 260,041 | $ | 202,053 | $ | 950,010 | $ | 720,203 | |||||||||||||||
Gross profit | 212,210 | 161,483 | 775,548 | 571,787 | |||||||||||||||||||
Stock-based compensation expense | 3,134 | 1,914 | 11,491 | 7,253 | |||||||||||||||||||
Amortization of acquired technology intangible assets | 5,904 | 5,493 | 22,396 | 22,428 | |||||||||||||||||||
Employer payroll tax on employee stock transactions | 101 | 60 | 540 | 308 | |||||||||||||||||||
Non-GAAP gross profit | $ | 221,349 | $ | 168,950 | $ | 809,975 | $ | 601,776 | |||||||||||||||
Gross margin | 82 | % | 80 | % | 82 | % | 79 | % | |||||||||||||||
Non-GAAP gross margin | 85 | % | 84 | % | 85 | % | 84 | % |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenue | $ | 260,041 | $ | 202,053 | $ | 950,010 | $ | 720,203 | |||||||||||||||
GAAP sales and marketing | 122,511 | 118,170 | 494,908 | 424,976 | |||||||||||||||||||
Stock-based compensation expense | (13,198) | (15,046) | (55,162) | (53,397) | |||||||||||||||||||
Amortization of acquired intangible assets | (3,106) | (3,107) | (12,425) | (12,425) | |||||||||||||||||||
Employer payroll tax on employee stock transactions | (383) | (348) | (2,766) | (1,955) | |||||||||||||||||||
Acquisition-related expenses | (481) | (655) | (2,483) | (1,725) | |||||||||||||||||||
Non-GAAP sales and marketing | $ | 105,343 | $ | 99,014 | $ | 422,072 | $ | 355,474 | |||||||||||||||
GAAP sales and marketing as a percentage of revenue | 47 | % | 58 | % | 52 | % | 59 | % | |||||||||||||||
Non-GAAP sales and marketing as a percentage of revenue | 41 | % | 49 | % | 44 | % | 49 | % | |||||||||||||||
GAAP research and development | $ | 74,611 | $ | 75,413 | $ | 300,571 | $ | 270,982 | |||||||||||||||
Stock-based compensation expense | (15,874) | (19,352) | (68,275) | (63,262) | |||||||||||||||||||
Amortization of acquired intangible assets | (670) | (854) | (2,757) | (3,528) | |||||||||||||||||||
Employer payroll tax on employee stock transactions | (332) | (286) | (3,217) | (2,474) | |||||||||||||||||||
Acquisition-related expenses | (46) | (1,679) | (6,370) | (5,549) | |||||||||||||||||||
Non-GAAP research and development | $ | 57,689 | $ | 53,242 | $ | 219,952 | $ | 196,169 | |||||||||||||||
GAAP research and development as a percentage of revenue | 29 | % | 37 | % | 32 | % | 38 | % | |||||||||||||||
Non-GAAP research and development as a percentage of revenue | 22 | % | 26 | % | 23 | % | 27 | % | |||||||||||||||
GAAP general and administrative | $ | 52,422 | $ | 43,102 | $ | 195,746 | $ | 166,283 | |||||||||||||||
Stock-based compensation expense | (11,769) | (10,693) | (44,406) | (38,974) | |||||||||||||||||||
Employer payroll tax on employee stock transactions | (274) | (171) | (1,910) | (1,202) | |||||||||||||||||||
Acquisition-related expenses | (16) | (6) | (35) | (2,128) | |||||||||||||||||||
Non-GAAP general and administrative | $ | 40,363 | $ | 32,232 | $ | 149,395 | $ | 123,979 | |||||||||||||||
GAAP general and administrative as a percentage of revenue | 20 | % | 21 | % | 21 | % | 23 | % | |||||||||||||||
Non-GAAP general and administrative as a percentage of revenue | 16 | % | 16 | % | 16 | % | 17 | % |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenue | $ | 260,041 | $ | 202,053 | $ | 950,010 | $ | 720,203 | |||||||||||||||
Loss from operations | (37,334) | (75,202) | (215,677) | (290,454) | |||||||||||||||||||
Stock-based compensation expense | 43,975 | 47,005 | 179,334 | 162,886 | |||||||||||||||||||
Amortization of acquired intangible assets | 9,680 | 9,454 | 37,578 | 38,381 | |||||||||||||||||||
Employer payroll tax on employee stock transactions | 1,090 | 865 | 8,433 | 5,939 | |||||||||||||||||||
Acquisition-related expenses | 543 | 2,340 | 8,888 | 9,402 | |||||||||||||||||||
Non-GAAP income (loss) from operations | $ | 17,954 | $ | (15,538) | $ | 18,556 | $ | (73,846) | |||||||||||||||
Operating margin | (14 | %) | (37 | %) | (23 | %) | (40 | %) | |||||||||||||||
Non-GAAP operating margin | 7 | % | (8 | %) | 2 | % | (10 | %) |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||||||||||
Revenue | $ | 260,041 | $ | 202,053 | $ | 950,010 | $ | 720,203 | |||||||||||||||
Net loss | (29,519) | (71,184) | (189,694) | (286,931) | |||||||||||||||||||
Stock-based compensation expense | 43,975 | 47,005 | 179,334 | 162,886 | |||||||||||||||||||
Amortization of acquired intangible assets | 9,680 | 9,454 | 37,578 | 38,381 | |||||||||||||||||||
Employer payroll tax on employee stock transactions | 1,090 | 865 | 8,433 | 5,939 | |||||||||||||||||||
Acquisition-related expenses | 543 | 2,340 | 8,888 | 9,402 | |||||||||||||||||||
Income tax effect of non-GAAP items | — | — | — | 62 | |||||||||||||||||||
Non-GAAP net income (loss) | $ | 25,769 | $ | (11,520) | $ | 44,539 | $ | (70,261) | |||||||||||||||
Numerator: | |||||||||||||||||||||||
Non-GAAP net income (loss) | $ | 25,769 | $ | (11,520) | $ | 44,539 | $ | (70,261) | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic | 144,074,303 | 138,415,280 | 141,961,467 | 136,525,728 | |||||||||||||||||||
Effect of dilutive securities: Employee stock awards | 5,329,311 | — | 6,591,783 | — | |||||||||||||||||||
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted | 149,403,614 | 138,415,280 | 148,553,250 | 136,525,728 | |||||||||||||||||||
GAAP net loss per share, basic | $ | (0.20) | $ | (0.51) | $ | (1.34) | $ | (2.10) | |||||||||||||||
GAAP net loss per share, diluted | $ | (0.20) | $ | (0.51) | $ | (1.34) | $ | (2.10) | |||||||||||||||
Non-GAAP net income (loss) per share, basic | $ | 0.18 | $ | (0.08) | $ | 0.31 | $ | (0.51) | |||||||||||||||
Non-GAAP net income (loss) per share, diluted | $ | 0.17 | $ | (0.08) | $ | 0.30 | $ | (0.51) |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 40,743 | $ | 22,692 | $ | 92,015 | $ | 12,608 | |||||||||||||||
Purchases of property, plant, and equipment | (2,252) | (2,112) | (10,325) | (15,782) | |||||||||||||||||||
Capitalized software development costs | (9,498) | (8,865) | (34,685) | (33,648) | |||||||||||||||||||
Non-GAAP free cash flow | $ | 28,993 | $ | 11,715 | $ | 47,005 | $ | (36,822) |