On February 13, 2025, Procore Technologies Inc (PCOR, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year ending December 31, 2024. Procore Technologies Inc, a leading provider of cloud-based construction management software, reported a revenue of $302 million for Q4 2024, surpassing the analyst estimate of $297.80 million. The company also reported a net loss per share of $0.42, which was above the estimated loss of $0.24 per share.
Company Overview
Procore Technologies Inc specializes in cloud-based construction management software, generating revenue through subscriptions to its software products. These products include Design Coordination, BIM, Field Productivity, Project Financials, and more, all hosted on its SaaS platform. Revenue is recognized over the subscription term, providing a steady income stream.
Performance and Challenges
Procore Technologies Inc's performance in Q4 2024 was marked by a 16% year-over-year increase in revenue, reaching $302 million. This growth reflects the company's strong market position and customer trust, as highlighted by CEO Tooey Courtemanche. However, the company reported a GAAP operating margin of -22% and a net loss of $62.3 million, indicating ongoing challenges in achieving profitability.
Financial Achievements
For the full year 2024, Procore Technologies Inc reported a revenue of $1,152 million, a 21% increase from the previous year. The company achieved a non-GAAP operating margin of 10%, showing significant margin expansion. CFO Howard Fu emphasized the company's commitment to becoming a high-margin business, with plans for further improvements in 2025.
Key Financial Metrics
Procore Technologies Inc's financial statements reveal important metrics:
| Metric | Q4 2024 | Full Year 2024 |
|---|---|---|
| Revenue | $302 million | $1,152 million |
| GAAP Gross Margin | 81% | 82% |
| Non-GAAP Gross Margin | 85% | 86% |
| Operating Cash Inflow | $29 million | $196 million |
| Free Cash Inflow | $0.3 million | $128 million |
Analysis of Performance
Procore Technologies Inc's strong revenue growth and margin expansion are significant achievements in the competitive software industry. The company's ability to increase its customer base, particularly those contributing over $1 million in annual recurring revenue, underscores its market strength. However, the persistent net losses highlight the challenges in balancing growth with profitability.
Commentary
"Our strong topline performance exceeded expectations, reinforcing our momentum heading into FY25," said Tooey Courtemanche, Founder, President, and CEO of Procore.
"2024 was another year of strong margin expansion delivering 800 basis points of non-GAAP operating margin improvement," said Howard Fu, CFO of Procore.
Procore Technologies Inc's outlook for 2025 includes a revenue range of $1,285 million to $1,290 million, with a non-GAAP operating margin of 13% to 13.5%, indicating continued growth and margin improvement efforts.
Explore the complete 8-K earnings release (here) from Procore Technologies Inc for further details.
