On August 1, 2024, Procore Technologies Inc (PCOR, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Procore Technologies Inc is a cloud-based construction management software company that generates revenue through subscriptions for access to its software products. The company's offerings include Design Coordination, BIM, Field Productivity, Project Financials, Invoice Management, Portfolio Financials, Capital Planning, Accounting Integrations, and Analytics.
Performance Overview
Procore Technologies Inc (PCOR, Financial) reported revenue of $284 million for Q2 2024, surpassing the analyst estimate of $275.25 million and marking a 24% increase year-over-year. The company also reported a GAAP gross margin of 83% and a non-GAAP gross margin of 87%. Despite a GAAP operating margin of -5%, the non-GAAP operating margin stood at 17.6%, reflecting improved operational efficiency.
Financial Achievements
Procore Technologies Inc (PCOR, Financial) achieved several notable financial milestones in Q2 2024:
- Operating cash inflow of $59 million
- Free cash inflow of $47 million
- Gross revenue retention rate of 94%
- Number of organic customers contributing more than $100,000 of annual recurring revenue increased by 20% year-over-year to 2,191
These achievements are significant as they demonstrate the company's ability to generate consistent cash flow and retain high-value customers, which is crucial for sustaining growth in the competitive software industry.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $284,347,000 | $228,536,000 |
| Gross Profit | $236,246,000 | $186,232,000 |
| Operating Expenses | $251,022,000 | $244,961,000 |
| Net Loss | $(6,311,000) | $(52,881,000) |
The income statement reveals a significant reduction in net loss from $52.88 million in Q2 2023 to $6.31 million in Q2 2024, indicating improved financial health and operational efficiency.
Balance Sheet and Cash Flow
Procore Technologies Inc (PCOR, Financial) reported total assets of $1.97 billion as of June 30, 2024, up from $1.89 billion at the end of 2023. The company's cash and cash equivalents stood at $356.24 million, with marketable securities amounting to $424.55 million. Total liabilities were reported at $711.24 million, resulting in a strong stockholders' equity of $1.26 billion.
Commentary and Outlook
"We delivered a record operating margin in Q2 as we continue to demonstrate improved operating leverage in the business," said Howard Fu, CFO of Procore. "Our financial model gives us the flexibility to accelerate our investment in go-to-market and capture the long-term growth opportunity ahead."
Looking ahead, Procore Technologies Inc (PCOR, Financial) provided guidance for Q3 2024, expecting revenue to be in the range of $286 million to $288 million, representing year-over-year growth of 15% to 16%. For the full year 2024, the company anticipates revenue between $1,141 million and $1,144 million, reflecting a 20% year-over-year growth.
Procore Technologies Inc (PCOR, Financial) continues to show robust financial performance, driven by strong revenue growth, high customer retention, and improved operational efficiency. These factors position the company well for sustained growth in the competitive construction management software industry.
Explore the complete 8-K earnings release (here) from Procore Technologies Inc for further details.
