PROCORE(PCOR)2025-02-26 21:04Financial Performance - Revenue for 2024 reached $1,151.7 million, representing a year-over-year growth of 21% compared to $950.0 million in 2023[38] - Net losses for 2024 were reported at $106.0 million, an improvement from $189.7 million in 2023[38] - Revenue for 2024 was $1,151.7 million, up from $950.0 million in 2023 and $720.2 million in 2022, indicating significant growth but a declining growth rate[90] - The company incurred net losses of $106.0 million in 2024, $189.7 million in 2023, and $286.9 million in 2022, with an accumulated deficit of $1.2 billion as of December 31, 2024[93] Customer Growth and Engagement - As of December 31, 2024, the number of customers contributing more than $100,000 of annual recurring revenue (ARR) increased to 2,333, reflecting a year-over-year growth of 16%[38] - The number of customers on the platform grew to 17,088 as of December 31, 2024, showing a year-over-year increase of 4%[38] - Customers contributing more than $1,000,000 of ARR increased to 86, marking a year-over-year growth of 39%[38] - Customers that contributed more than $100,000 of ARR represented 63% of total ARR in 2024, up from 60% in 2023[38] Product and Technology Development - The platform's capabilities include AI features such as Copilot and Insights, aimed at increasing productivity and reducing risks[52] - The platform supports over 500 integrations through its App Marketplace, enhancing functionality for users[57] - The company aims to increase its business value through network expansion, product innovation, and data utilization, allowing unlimited users without per-seat fees[62] - The company has made acquisitions, including Intelliwave Technologies in 2024 and Unearth Technologies in 2023, to enhance its platform capabilities and integrate innovative features[66] Market Strategy and Expansion - The company plans to expand its sales and marketing efforts to drive awareness and grow its customer base, focusing on owners, general contractors, and specialty contractors[66] - The global market for construction management software is currently underpenetrated, representing a significant opportunity for expansion[66] - The company is investing in expanding its sales and marketing teams, technology infrastructure, and product development to drive future growth[93] - The company plans to hire sales and customer experience teams to expand its international presence and improve customer relationships[67] Operational Challenges and Risks - The overall sentiment in the construction industry remains uncertain, which poses challenges to future growth, particularly due to macroeconomic factors[91] - The company faces high customer acquisition costs due to intensive sales efforts, and any failure to convert these efforts into sales could adversely affect financial performance[108] - Disruptions and adverse impacts to financial and operating results are expected as the company implements its evolved GTM operating model[109] - Future growth is dependent on the ability to attract new customers and retain existing ones, as well as the successful introduction of new products and services[92] Compliance and Regulatory Risks - The company is subject to stringent data privacy and security regulations, which could lead to regulatory investigations, fines, and reputational harm if not complied with[141] - The California Consumer Privacy Act (CCPA) imposes specific obligations on the company regarding personal data, with potential fines for noncompliance[147] - The EU's General Data Protection Regulation (GDPR) allows for fines of up to €20 million or 4% of annual global revenue for certain violations, impacting the company's operations in Europe[148] - The company may face significant consequences if unable to lawfully transfer personal data from the EEA or the U.K. to the U.S., including operational disruptions and increased regulatory scrutiny[154] Cybersecurity and Data Protection - Cyberattacks and malicious activities pose a growing threat to the confidentiality and integrity of sensitive information processed by the company and its third-party partners[162] - The company is vulnerable to increased cyberattack risks during geopolitical conflicts, which could disrupt operations and supply chains[163] - The company faces a variety of evolving cybersecurity threats, including ransomware attacks, which can lead to significant operational interruptions and reputational harm[165] - A significant number of high and critical unremediated vulnerabilities exist in the company's IT systems, and delays in developing remedial measures could lead to exploitation[174] Intellectual Property - The company holds 80 issued patents and 93 pending patent applications in the U.S., with additional patents in foreign countries, indicating a strong focus on intellectual property[78] - As of December 31, 2024, the company held 80 issued patents and had 93 pending patent applications in the U.S.[218] Legal and Litigation Risks - The company may face litigation and disputes that could adversely affect its business and financial condition, with potential increases in operating expenses due to legal proceedings[191] - Increased government scrutiny of the technology industry could lead to investigations and legal actions that may require changes to the company's products and services, impacting business operations[194] - The company may experience reputational harm and financial consequences from potential lawsuits or investigations related to compliance failures[190]