Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________ FORM 10-Q _________________________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ ...

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 ...

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures [1][2] Company and Industry Analysis - No relevant company or industry content is present in the provided documents [1][2]

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].