PROCORE(PCOR)2024-08-02 20:05Customer 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]