Sep 30, 2022

Procore Q3 2022 Earnings Report

Procore's Q3 2022 financial results showcased impressive revenue growth and margin improvements.

Key Takeaways

Procore Technologies reported strong third-quarter results, with revenue reaching $186 million, a 41% increase year-over-year. The company added 683 net new organic customers, ending the quarter with 14,086 organic customers. While GAAP operating margin was (39%), non-GAAP operating margin improved to (7%).

Revenue increased by 41% year-over-year, reaching $186 million.

GAAP gross margin stood at 80%, while non-GAAP gross margin reached 84%.

The company added 683 net new organic customers, bringing the total to 14,086.

Procore launched Procore Workforce Management, a new end-to-end solution.

Total Revenue
$186M
Previous year: $132M
+41.2%
EPS
-$0.09
Previous year: -$0.05
+80.0%
Total Customers
14.09K
Previous year: 11.61K
+21.4%
Net New Customers
683
Previous year: 456
+49.8%
Gross Profit
$149M
Previous year: $109M
+36.0%
Cash and Equivalents
$265M
Previous year: $1.07B
-75.3%
Free Cash Flow
-$6M
Previous year: $6.5M
-192.3%
Total Assets
$1.68B
Previous year: $1.54B
+8.8%

Procore

Procore

Forward Guidance

Procore provided guidance for the fourth quarter and full year 2022.

Positive Outlook

  • Revenue is expected to be in the range of $189 million to $191 million for the fourth quarter of 2022.
  • Fourth quarter revenue represents year-over-year growth of 29% to 31%.
  • Revenue is expected to be in the range of $707 million to $709 million for the full year 2022.
  • Full year revenue represents year-over-year growth of 37% to 38%.
  • Full year revenue includes $30 million from Levelset.

Challenges Ahead

  • Non-GAAP operating margin is expected to be in the range of (10%) to (11%) for the fourth quarter of 2022.
  • Non-GAAP operating margin is expected to be in the range of (11%) to (12%) for the 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.
  • The uncertainty of expenses that may be incurred in the future cannot be reasonably determined or predicted at this time.
  • These factors could be material to Procore’s future GAAP financial results.