Sep 30, 2024

Procore Q3 2024 Earnings Report

Procore's Q3 2024 performance reflected a 19% year-over-year revenue increase and progress in operating margin expansion.

Key Takeaways

Procore Technologies reported a revenue of $296 million for Q3 2024, representing a 19% increase year-over-year. The company achieved a GAAP gross margin of 81% and a non-GAAP gross margin of 85%. Procore is focused on expanding operating margins and investing in long-term growth.

Revenue increased by 19% year-over-year, reaching $296 million.

GAAP gross margin was 81%, while non-GAAP gross margin reached 85%.

GAAP operating margin was (12%), and non-GAAP operating margin was 9%.

The company added 225 net new organic customers, bringing the total to 16,975.

Total Revenue
$296M
Previous year: $248M
+19.4%
EPS
$0.24
Previous year: $0.09
+166.7%
Total Customers
16.98K
Previous year: 16.07K
+5.7%
Net New Customers
225
Previous year: 363
-38.0%
Gross Profit
$241M
Previous year: $204M
+18.2%
Cash and Equivalents
$439M
Previous year: $318M
+38.0%
Free Cash Flow
$23M
Previous year: $22M
+4.5%
Total Assets
$2.02B
Previous year: $1.78B
+13.2%

Procore

Procore

Forward Guidance

Procore provided revenue and non-GAAP operating margin guidance for Q4 2024, Full Year 2024, and Full Year 2025.

Positive Outlook

  • Q4 2024 revenue is expected to be in the range of $296 million to $298 million, representing year-over-year growth of 14% to 15%.
  • Q4 2024 non-GAAP operating margin is expected to be in the range of 3% to 4%.
  • Full year 2024 revenue is expected to be in the range of $1,146 million to $1,148 million, representing year-over-year growth of 21%.
  • Full year 2024 non-GAAP operating margin is expected to be in the range of 10.5% to 11%.
  • Full year 2025 revenue is expected to be at least $1,275 million, representing year-over-year growth of 11%.

Challenges Ahead

  • 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.
  • Factors could be material to Procore’s future GAAP financial results.
  • Stock repurchase program does not obligate Procore to acquire any particular amount of common stock, and may be suspended or discontinued at any time at Procore’s discretion.
  • The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.