Procore Technologies (PCOR) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 14.29%. A quarter ago, it was expected that this construction management software would post earnings of $0.24 per share when it actually produced earnings of $0.39, delivering a surprise of 62.50%. Over the ...

Exhibit 99.1 Procore Announces Third Quarter 2024 Financial Results CARPINTERIA, CA – October 30, 2024 – Procore Technologies, Inc. (NYSE: PCOR), the leading global provider of construction management software, today announced financial results for the third quarter ended September 30, 2024. "We have made good progress on our go-to-market transition we announced last quarter," said Tooey Courtemanche, Founder, President, and CEO of Procore. "We believe this evolution will position us to become a multi-billi ...

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...

Bert Hochfeld graduated with a degree in economics from the University of Pennsylvania and received an MBA from Harvard. Mr. Hochfeld has enjoyed a long career in the tech world, working for IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software. Starting in the 1990s, Mr. Hochfeld worked as a sell-side analyst and won awards from the Wall Street Journal for his coverage of the software space. In 2001, Mr. Hochfeld formed his own independent research company, Hochfeld Independent Research Group, which ...

Core Viewpoint - Procore Technologies is undergoing significant strategic changes aimed at enhancing customer relationships and operational efficiency, despite facing short-term challenges reflected in its stock performance and profitability [1][2][3]. Strategic Changes - Procore is shifting its go-to-market operating model, placing general managers in specific regions to foster deeper customer relationships and improve retention and expansion rates [2]. - The CEO believes this model will enhance product adoption and usage, ultimately increasing the lifetime value of customers [2]. - The company maintains its full-year 2024 revenue guidance of $1,141 to $1,144 million, indicating a year-over-year growth of 20% [2]. Financial Performance - In Q2 2024, Procore reported sales of approximately $284 million, a 24% increase year-over-year, with GAAP gross margins at 83% [8]. - The company added 152 net new customers, bringing the total to 2,191 customers contributing over $100,000 in annual recurring revenue, a 20% increase year-over-year [10]. - Operating cash flow for the quarter was $59 million, and free cash flow was $47 million, showing improvement compared to the previous year [10]. Challenges and Outlook - The CFO indicated that CRPO growth is not expected to accelerate in Q4, and the strategic changes may lead to lower operating margins in Q3 and Q4 of 2024 [3]. - Despite these challenges, the strategic changes are viewed as necessary for long-term growth, particularly in international markets [4][14]. - The company is still unprofitable and is expected to remain so through 2024 and likely into 2025 [5]. Valuation - Procore's valuation grade is a "C+" with a forward price-to-sales (P/S) ratio that has become more reasonable compared to competitors, indicating potential for continued revenue growth of 15% to 20% in the coming years [12][13].

Customer Growth - The number of customers contributing more than $100,000 of annual recurring revenue (ARR) increased from 1,820 as of June 30, 2023, to 2,191 as of June 30, 2024, reflecting a year-over-year growth rate of 20%[106] - The total number of customers on the platform grew from 15,704 as of June 30, 2023, to 16,750 as of June 30, 2024, representing a year-over-year growth rate of 7%[106] - Approximately 89% of the revenue increase was attributable to existing customers, while 11% came from new customers acquired during the same period[138] - Revenue for the six months ended June 30, 2024, increased by $111.7 million, or 25%, compared to the same period in 2023, with approximately 80% from existing customers and 20% from new customers[145] Financial Performance - Revenue for the three months ended June 30, 2024, was $284.3 million, an increase of $55.8 million or 24% compared to $228.5 million for the same period in 2023[138] - Gross profit for the six months ended June 30, 2024, was $459.951 million, a 28% increase from $359.556 million in the same period of 2023[146] - Gross profit margin improved to 83% in the three months ended June 30, 2024, compared to 81% in the same period of 2023[133] - Non-GAAP gross profit for the three months ended June 30, 2024, was $246.2 million, compared to $194.7 million for the same period in 2023, reflecting a 26.4% increase[158] - The company reported a loss from operations of $14.8 million for the three months ended June 30, 2024, compared to a loss of $58.7 million for the same period in 2023[161] - The net loss for the three months ended June 30, 2024, was $6.3 million, a significant improvement from a net loss of $52.9 million in the same period of 2023[132] Expenses and Investments - Sales and marketing expenses are expected to increase on an absolute dollar basis as the company continues to invest in customer growth[121] - Research and development expenses for the three months ended June 30, 2024, were $72.3 million, slightly down from $73.2 million in the same period of 2023[132] - General and administrative expenses increased to $50.8 million for the three months ended June 30, 2024, compared to $46.4 million in the same period of 2023[132] - The company expects research and development expenses to increase in absolute dollar terms as it continues to enhance its products and services[122] - General and administrative expenses are also expected to rise as the business grows, particularly with international expansion efforts[123] Performance Obligations - The current remaining performance obligations (cRPO) increased by $102.2 million, or 16%, year-over-year, reaching $724.8 million as of June 30, 2024[111] - The total remaining performance obligations (RPO) reached $1,035.2 million as of June 30, 2024, an increase of $185.7 million, or 22%, from the previous year[111] Acquisitions and Market Strategy - The company acquired Intelliwave Technologies Inc. in May 2024 and Unearth Technologies Inc. in September 2023 to enhance its product offerings and market reach[113] - The company plans to continue investing in technology innovation and product development to enhance platform capabilities and attract a broader set of stakeholders[112] - The company is evolving its go-to-market operating model to build stronger customer relationships and improve operational efficiency, which may impact near-term financial results[109] Cash Flow and Financial Position - As of June 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $780.8 million[163] - For the six months ended June 30, 2024, net cash provided by operating activities was $127.8 million, compared to $17.6 million for the same period in 2023[167][169] - The company reported an accumulated deficit of $1.2 billion as of June 30, 2024, indicating ongoing operational losses despite positive cash flows from operations[165] - Cash requirements primarily cover operating expenses, including personnel-related costs and capital expenditures for strategic business growth[164] Risk and Compliance - The company does not anticipate material risks from interest rate changes due to the short-term nature of its investments[179] - Inflation has not materially affected the company's business or financial condition, although it may impact construction costs and personnel-related expenses[180] - There have been no significant changes to critical accounting policies for the six months ended June 30, 2024[176] - The company's disclosure controls and procedures are effective and designed to provide reasonable assurance of compliance with SEC rules[183] - The company is not currently involved in any legal proceedings that would materially affect its business or financial condition[187]

Procore Technologies (PCOR) came out with quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 62.50%. A quarter ago, it was expected that this construction management software would post earnings of $0.16 per share when it actually produced earnings of $0.30, delivering a surprise of 87.50%. Over the ...

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 1. On the other hand, if they miss, the stock may move lower. Zacks Consensus Estimate Revenues are expected to be $275.45 million, up 20.5% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.35% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reasse ...

Core Insights - Procore Technologies is positioned well to continue its streak of beating earnings estimates, making it a strong candidate for investors [1][4]. Earnings Performance - Procore Technologies has a history of positive earnings surprises, with an average surprise of 115.18% over the last two quarters [6]. - In the most recent quarter, the company reported earnings of $0.30 per share against an expectation of $0.16, resulting in a surprise of 87.50% [7]. - For the previous quarter, Procore exceeded the consensus estimate of $0.07 per share by reporting $0.17, achieving a surprise of 142.86% [7]. Earnings ESP and Predictions - The company currently has an Earnings ESP of +5.42%, indicating a bullish outlook from analysts regarding its earnings prospects [4]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat in the upcoming report [4][3]. Importance of Earnings ESP - Monitoring a company's Earnings ESP before quarterly releases is crucial for increasing the chances of successful investment decisions [5].

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) For Q1 2024, Procore Technologies, Inc. reported a 26% revenue increase to $269.4 million, significantly narrowing its net loss to $11.0 million, with total assets at $1.88 billion and operating cash flow improving to $69.1 million [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets slightly decreased to $1.88 billion, total liabilities decreased to $685.0 million, and total stockholders' equity increased to $1.19 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$1,878,710** | **$1,893,568** | | Total Current Assets | $954,940 | $955,734 | | Goodwill | $539,131 | $539,354 | | **Total Liabilities** | **$685,029** | **$737,958** | | Total Current Liabilities | $594,983 | $642,430 | | Deferred Revenue (Current) | $487,944 | $501,903 | | **Total Stockholders' Equity** | **$1,193,681** | **$1,155,610** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) In Q1 2024, revenue grew 26% year-over-year to $269.4 million, gross profit increased to $223.7 million with an 83% margin, and net loss significantly decreased to $11.0 million from $63.4 million Q1 2024 vs. Q1 2023 Statement of Operations (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $269,428 | $213,526 | | Gross Profit | $223,705 | $173,324 | | Loss from Operations | $(18,906) | $(69,263) | | Net Loss | $(10,966) | $(63,447) | | Net Loss Per Share | $(0.08) | $(0.45) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended March 31, 2024, net cash provided by operating activities significantly increased to $69.1 million, with net cash used in investing activities at $4.7 million, and net cash provided by financing activities at $6.7 million, leading to a cash and cash equivalents balance of $427.7 million Cash Flow Summary (in thousands) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $69,145 | $29,275 | | Net cash used in investing activities | $(4,670) | $(79) | | Net cash provided by financing activities | $6,676 | $3,312 | | **Net increase in cash** | **$71,151** | **$32,508** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail accounting policies, investments, and remaining performance obligations (RPO) at $1.0 billion, along with $40.1 million in stock-based compensation and $4.2 million in restructuring costs from a 4% workforce reduction, with U.S. revenue at 86% - Total Remaining Performance Obligations (RPO) as of March 31, **2024**, was **$1.0 billion**, with **$704.7 million** (**70%**) expected to be recognized as revenue in the next **12** months[47](index=47&type=chunk) - In January **2024**, the company executed a **4%** global workforce reduction, incurring **$4.2 million** in restructuring-related costs during the quarter[91](index=91&type=chunk)[92](index=92&type=chunk) Revenue by Geographic Region (in thousands) | Region | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | U.S. | $230,433 (86%) | $183,925 (86%) | | Rest of the world | $38,995 (14%) | $29,601 (14%) | | **Total Revenue** | **$269,428** | **$213,526** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 26% revenue growth in Q1 2024 primarily to existing customer expansion, highlighting a 10% customer count increase to 16,598, a 95% gross retention rate, and a non-GAAP operating income of $37.1 million, reflecting improved efficiency - The number of customers increased by **10%** year-over-year, from **15,089** as of March 31, **2023**, to **16,598** as of March 31, **2024**[102](index=102&type=chunk) - The Gross Retention Rate (GRR) was **95%** as of March 31, **2024**, an improvement from **94%** as of March 31, **2023**[104](index=104&type=chunk) Remaining Performance Obligations (in thousands) | RPO Type | March 31, 2024 | March 31, 2023 | % Change | | :--- | :--- | :--- | :--- | | Current (cRPO) | $704,656 | $586,158 | 20% | | Non-current | $302,159 | $219,316 | 38% | | **Total RPO** | **$1,006,815** | **$805,474** | **25%** | Reconciliation to Non-GAAP Income (Loss) from Operations (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP Loss from operations | $(18,906) | $(69,263) | | Stock-based compensation | $41,669 | $45,856 | | Amortization of intangibles | $9,666 | $9,334 | | Other adjustments | $4,637 | $10,044 | | **Non-GAAP Income (Loss) from operations** | **$37,066** | **$(4,029)** | [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Revenue for Q1 2024 increased by $55.9 million (26%) YoY, primarily from existing customers, with gross margin improving to 83% and total operating expenses remaining flat due to decreased R&D, leading to a reduced operating loss - Revenue increased **26%** YoY, with approximately **90%** of the increase attributable to existing customers and **10%** from new customers[133](index=133&type=chunk) - Research and development expenses decreased by **12%** YoY, primarily due to a **$6.0 million** decrease in acquisition-related expenses and a **$6.1 million** decrease in stock-based compensation expense[136](index=136&type=chunk) - Sales and marketing expenses increased by only **3%** YoY, despite the **26%** revenue growth, indicating improved efficiency[135](index=135&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, Procore's liquidity totaled $744.6 million in cash and marketable securities, with $69.1 million generated from operations, deemed sufficient for the next 12 months despite an accumulated deficit of $1.1 billion - Principal sources of liquidity totaled **$744.6 million** as of March 31, **2024**, consisting of cash, cash equivalents, and marketable securities[147](index=147&type=chunk) - The company has an accumulated deficit of **$1.1 billion** as of March 31, **2024**, but believes its existing cash will be sufficient for at least the next **12** months[150](index=150&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies foreign currency exchange, interest rate, and inflation as primary market risks, with minimal material impact due to U.S. Dollar revenue, short-term investments, and no significant inflation effects to date - The company's primary market risks are foreign currency exchange, interest rate, and inflation risk[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) - Due to the short-term nature of its **$744.6 million** investment portfolio, a hypothetical **100 basis point** change in interest rates would not have a material impact[167](index=167&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[171](index=171&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, **2024**[171](index=171&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any legal proceedings expected to have a material adverse effect on its business, financial condition, or results of operations - Procore is not presently a party to any legal proceedings that would be reasonably expected to have a material adverse effect on the business[175](index=175&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes have been made to the risk factors disclosed in the company's **2023** Form **10-K**[176](index=176&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities and no issuer purchases of equity securities during the quarter - There were no unregistered sales of equity securities or issuer purchases of equity securities in the period[177](index=177&type=chunk)[178](index=178&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) During the quarter, Steven S. Davis, President of Product & Technology, adopted a Rule 10b5-1 trading plan on March 15, 2024, for the potential sale of up to 64,802 shares of common stock - On March **15**, **2024**, Steven S. Davis, President, Product & Technology, adopted a Rule **10b5-1** trading arrangement for the sale of up to **64,802** shares[181](index=181&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO, and various incentive plan documents