Jun 30, 2024

Procore Q2 2024 Earnings Report

Procore's Q2 2024 earnings demonstrated strong revenue growth and improved operating efficiency.

Key Takeaways

Procore announced its Q2 2024 financial results, reporting a revenue of $284 million, a 24% increase year-over-year, and a record operating margin. The company added 152 net new organic customers, ending the quarter with a total of 16,750 organic customers.

Revenue increased by 24% year-over-year, reaching $284 million.

GAAP gross margin was 83%, and non-GAAP gross margin was 87%.

GAAP operating margin was (5%), while non-GAAP operating margin was 17.6%.

Free cash inflow for the second quarter was $47 million.

Total Revenue
$284M
Previous year: $229M
+24.4%
EPS
$0.39
Previous year: $0.02
+1850.0%
Total Customers
16.75K
Previous year: 15.7K
+6.7%
Net New Customers
152
Previous year: 615
-75.3%
Gross Profit
$236M
Previous year: $186M
+26.9%
Cash and Equivalents
$356M
Previous year: $313M
+14.0%
Free Cash Flow
$47M
Previous year: -$24M
-295.8%
Total Assets
$1.97B
Previous year: $1.73B
+14.0%

Procore

Procore

Forward Guidance

Procore is providing the following guidance for the third quarter and full year 2024.

Positive Outlook

  • Third Quarter 2024 Revenue is expected to be in the range of $286 million to $288 million, representing year-over-year growth of 15% to 16%.
  • Third Quarter 2024 Non-GAAP operating margin is expected to be in the range of 9% to 10%.
  • Full Year 2024 Revenue is expected to be in the range of $1,141 million to $1,144 million, representing year-over-year growth of 20%.
  • Full Year 2024 Non-GAAP operating margin is expected to be in the range of 10% to 11%.
  • Procore is in the early innings of transforming one of the largest and least digitized industries in the world

Challenges Ahead

  • 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
  • These factors could be material to Procore’s future GAAP financial 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
  • 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.
  • Increased competition in our markets and our ability to compete effectively