[ Back ]   [ More News ]   [ Home ]
Procore Announces Fourth Quarter and Full Year 2021 Financial Results

CARPINTERIA, Calif. — (BUSINESS WIRE) — February 22, 2022Procore Technologies, Inc. (NYSE: PCOR), a leading global provider of construction management software, today announced financial results for the fourth quarter and full year ended December 31, 2021.

“Our deep commitment to the construction industry continues to drive efficiency, sustainability and growth for our clients,“ said Tooey Courtemanche, Founder, President and CEO of Procore. “Our excellent fourth quarter results reflect the strength of our technology, partnership and brand, and an increasing appetite for digitization across the construction industry,” said Tooey Courtemanche, Founder, President and CEO of Procore.

“We delivered outstanding Q4 results to close out an important year for Procore,” said Paul Lyandres, CFO of Procore. “The investments we made set us up for a strong year of accelerated revenue growth throughout 2021. As we enter 2022, we are in a great position to deliver on key initiatives this year and over the longer term.”

Fourth Quarter 2021 Financial Highlights:

Full Year 2021 Financial Highlights:

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Recent Business Highlights:

First Quarter and Full Year 2022 Outlook:

Procore is providing the following guidance for the first quarter and full year 2022:

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Procore’s future GAAP financial results.

Quarterly Conference Call

Procore Technologies, Inc. will hold a conference call to discuss its fourth quarter and full year results at 2:00 p.m., Pacific Time, on Tuesday, February 22, 2022. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com.

Forward-Looking Statements

Statements Procore makes in this press release may include statements which are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” "outlook", “seeks,” “should,” “will,” and variations of such words or similar expressions.

Procore intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are making this statement for purposes of complying with those safe harbor provisions.

This press release contains forward-looking statements about Procore and its industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including, but not limited to, statements regarding the expected performance of Procore’s business and objectives of management for future operations, are forward-looking statements. Procore has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that Procore believes may affect its business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors that could cause results to differ materially from Procore’s current expectations. You should not place undue reliance on Procore’s forward-looking statements. Procore assumes no obligation to update any forward-looking statements to reflect events or circumstances that exist or change after the date on which they were made, except as required by law.

Non-GAAP Financial Measures

Procore believes that the use of certain non-GAAP financial measures as described below, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, and may assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. These non-GAAP financial measures are not prepared in accordance with U.S. generally accepted accounting principles, or GAAP.

Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Loss from Operations, Non-GAAP Operating Margin, Non-GAAP Net Loss and Non-GAAP Net Loss per Share: Procore defines these non-GAAP financial measures as the respective GAAP measures, excluding stock-based compensation expense, amortization of acquired intangible assets, employer payroll tax related to employee stock transactions, acquisition-related expenses, restructuring-related charges, and the income tax effect of non-GAAP items. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by total revenue. Non-GAAP operating margin is the ratio calculated by dividing non-GAAP loss from operations by total revenue.

Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company's non-cash expenses, Procore believes that providing non-GAAP financial measures that exclude stock-based compensation expense allow for meaningful comparisons between its operating results from period to period. The expense related to amortization of acquired intangible assets is dependent upon estimates and assumptions, which can vary significantly and are unique to each asset acquired; therefore, Procore believes non-GAAP measures that adjust for the amortization of acquired intangible assets provide investors a consistent basis for comparison across accounting periods. The amount of employer payroll tax-related items on employee stock transactions is dependent on restricted stock unit settlements, option exercises, related stock price, and other factors that are beyond Procore’s control and that do not correlate to the operation of the business. When evaluating the performance of its business and making operating plans, Procore does not consider these items (for example, when considering the impact of equity award grants, the company places a greater emphasis on overall stockholder dilution than the accounting charges associated with such grants). Additionally, acquisition-related expenses, such as transaction costs and retention payments, are expenses that are not necessarily reflective of operational performance during a period. Procore believes that the exclusion of acquisition-related expenses provides for a useful comparison of our operating results to prior periods and to its peer companies, which commonly exclude these expenses. Income tax benefits relate to the release of a portion of our valuation allowance as a result of deferred tax liabilities recorded related to acquisitions that are available sources of income to realize our deferred tax assets. We exclude the income tax effect associated with our acquisitions from certain of our non-GAAP financial measures because we believe that excluding this provides meaningful supplemental information regarding our operational performance. Lastly, we exclude the restructuring-related charges because these charges are not reflective of ongoing business and operating results. We believe it is useful for investors to understand its effects on our total operating expenses. Overall, Procore believes it is useful to exclude these expenses in order to better understand the long-term performance of its core business and to facilitate comparison of its results period-over-period and to those of peer companies. All of these non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Procore's own operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to information provided by other companies in Procore's industry, as other companies in the industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on Procore's reported financial results. Further, stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in Procore's business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Procore's business.

Free Cash Flow: Procore defines free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized software development costs. Procore believes free cash flow is an important liquidity measure of the cash (if any) that is available, after our operating activities and capital expenditures. Procore uses free cash flow in conjunction with traditional GAAP measures to assess its liquidity and evaluate the effectiveness of its business strategies. Once Procore’s business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.

About Procore

Procore is a leading global provider of construction management software. Over 1 million projects and more than $1 trillion USD in construction volume have run on Procore's platform. Procore’s platform connects key project stakeholders to solutions Procore has built specifically for the construction industry—for the owner, the general contractor, and the specialty contractor. Procore's App Marketplace has a multitude of partner solutions that integrate seamlessly with Procore’s platform, giving construction professionals the freedom to connect with what works best for them. Headquartered in Carpinteria, California, Procore has offices around the globe. Learn more at Procore.com.

PROCORE-IR

Procore Technologies, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

 
 

 

Three Months Ended
December 31,

 

 

Year Ended
December 31,

 

(in thousands, except share and per share amounts)

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

$

146,103

 

 

$

109,510

 

 

$

514,821

 

 

$

400,291

 

Cost of revenue (1)(2)(3)(4)(5)

 

29,767

 

 

 

19,074

 

 

 

98,312

 

 

 

71,663

 

Gross profit

 

116,336

 

 

 

90,436

 

 

 

416,509

 

 

 

328,628

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing (1)(2)(3)(4)(5)

 

84,285

 

 

 

50,922

 

 

 

308,511

 

 

 

189,032

 

Research and development (1)(2)(3)(4)(5)

 

60,671

 

 

 

35,406

 

 

 

237,290

 

 

 

124,661

 

General and administrative (1)(3)(4)(5)

 

45,830

 

 

 

25,695

 

 

 

156,635

 

 

 

73,465

 

Total operating expenses

 

190,786

 

 

 

112,023

 

 

 

702,436

 

 

 

387,158

 

Loss from operations

 

(74,450

)

 

 

(21,587

)

 

 

(285,927

)

 

 

(58,530

)

Interest expense, net

 

(494

)

 

 

(567

)

 

 

(2,153

)

 

 

(2,060

)

Change in fair value of Series I redeemable convertible

convertible preferred stock warrant liability

 

-

 

 

 

(27,387

)

 

 

-

 

 

 

(36,990

)

Other income (expense), net

 

37

 

 

 

649

 

 

 

(843

)

 

 

420

 

Loss before benefit from income taxes

 

(74,907

)

 

 

(48,892

)

 

 

(288,923

)

 

 

(97,160

)

Benefit from income taxes

 

(23,935

)

 

 

(1,461

)

 

 

(23,758

)

 

 

(993

)

Net loss

$

(50,972

)

 

$

(47,431

)

 

$

(265,165

)

 

$

(96,167

)

Less: Recognition of beneficial conversion feature on

preferred stock as a deemed dividend

 

-

 

 

 

(2,477

)

 

 

-

 

 

 

(3,024

)

Net loss attributable to common stockholders

$

(50,972

)

 

$

(49,908

)

 

$

(265,165

)

 

$

(99,191

)

Net loss per share attributable to common stockholders,

basic and diluted

$

(0.38

)

 

$

(1.72

)

 

$

(2.86

)

 

$

(3.56

)

Weighted-average shares used in computing net loss

per share attributable to common stockholders, basic

and diluted

 

132,892,072

 

 

 

29,074,828

 

 

 

92,673,453

 

 

 

27,895,546

 

 

(1) Includes stock-based compensation expense as follows:

 

 

Three Months Ended
December 31,

 

 

Year Ended
December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Cost of revenue

 

$

1,336

 

 

$

554

 

 

$

8,094

 

 

$

1,722

 

Sales and marketing

 

 

11,470

 

 

 

4,741

 

 

 

68,755

 

 

 

13,385

 

Research and development

 

 

15,413

 

 

 

6,183

 

 

 

85,040

 

 

 

12,930

 

General and administrative

 

 

13,013

 

 

 

10,141

 

 

 

65,272

 

 

 

15,923

 

Total stock-based compensation expense

 

$

41,232

 

 

$

21,619

 

 

$

227,161

 

 

$

43,960

 

(2) Includes amortization of acquired intangible assets as follows:

 

 

Three Months Ended
December 31,

 

 

Year Ended
December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Cost of revenue

 

$

4,264

 

 

$

1,032

 

 

$

7,522

 

 

$

3,315

 

Sales and marketing

 

 

2,251

 

 

 

516

 

 

 

3,600

 

 

 

1,728

 

Research and development

 

 

904

 

 

 

233

 

 

 

2,674

 

 

 

721

 

Total amortization of acquired intangible

assets

 

$

7,419

 

 

$

1,781

 

 

$

13,796

 

 

$

5,764

 

(3) Includes employer payroll tax on employee stock transactions as follows:

 

 

Three Months Ended
December 31,

 

 

Year Ended
December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Cost of revenue

 

$

57

 

 

$

7

 

 

$

457

 

 

$

7

 

Sales and marketing

 

 

495

 

 

 

93

 

 

 

2,325

 

 

 

205

 

Research and development

 

 

398

 

 

 

45

 

 

 

2,606

 

 

 

88

 

General and administrative

 

 

242

 

 

 

187

 

 

 

1,127

 

 

 

272

 

Total employer payroll tax on employee stock

transactions

 

$

1,192

 

 

$

332

 

 

$

6,515

 

 

$

572

 

(4) Includes acquisition-related expenses as follows:

 

 

Three Months Ended
December 31,

 

 

Year Ended
December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Cost of revenue

 

$

2

 

 

$

-

 

 

$

2

 

 

$

-

 

Sales and marketing

 

 

378

 

 

 

-

 

 

 

488

 

 

 

-

 

Research and development

 

 

906

 

 

 

-

 

 

 

1,348

 

 

 

-

 

General and administrative

 

 

4,528

 

 

 

133

 

 

 

7,442

 

 

 

792

 

Total acquisition-related expenses

 

$

5,814

 

 

$

133

 

 

$

9,280

 

 

$

792

 

(5) Includes restructuring-related charges as follows:

 

 

Three Months Ended
December 31,

 

 

Year Ended
December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Cost of revenue

 

$

-

 

 

$

-

 

 

$

-

 

 

$

127

 

Sales and marketing

 

 

-

 

 

 

61

 

 

 

-

 

 

 

1,824

 

Research and development

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,681

 

General and administrative

 

 

-

 

 

 

-

 

 

 

-

 

 

 

801

 

Total restructuring-related charges

 

$

-

 

 

$

61

 

 

$

-

 

 

$

4,433

 

Procore Technologies, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

 
 

 

 

December 31,

 

(in thousands)

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

586,108

 

 

$

379,907

 

Accounts receivable, net

 

 

113,977

 

 

 

77,692

 

Contract cost asset, current

 

 

17,030

 

 

 

13,598

 

Prepaid expenses and other current assets

 

 

35,173

 

 

 

16,772

 

Total current assets

 

 

752,288

 

 

 

487,969

 

Capitalized software development costs, net

 

 

27,062

 

 

 

18,538

 

Property and equipment, net

 

 

36,837

 

 

 

30,252

 

Right of use assets - finance leases

 

 

39,623

 

 

 

42,108

 

Right of use assets - operating leases

 

 

44,052

 

 

 

49,756

 

Contract cost asset, non-current

 

 

25,889

 

 

 

19,454

 

Intangible assets, net

 

 

201,977

 

 

 

33,241

 

Goodwill

 

 

540,922

 

 

 

125,966

 

Restricted cash, non-current

 

 

3,104

 

 

 

3,104

 

Other assets

 

 

18,903

 

 

 

10,379

 

Total assets

 

$

1,690,657

 

 

$

820,767

 

Liabilities, Redeemable Convertible Preferred Stock and Stockholders'

Equity (Deficit)

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

15,490

 

 

$

9,012

 

Accrued expenses

 

 

65,907

 

 

 

28,492

 

Deferred revenue, current

 

 

301,557

 

 

 

213,438

 

Other current liabilities

 

 

20,750

 

 

 

10,768

 

Total current liabilities

 

 

403,704

 

 

 

261,710

 

Deferred revenue, non-current

 

 

4,024

 

 

 

6,373

 

Finance lease liabilities, non-current

 

 

47,344

 

 

 

48,835

 

Operating lease liabilities, non-current

 

 

41,573

 

 

 

46,558

 

Other liabilities, non-current

 

 

4,723

 

 

 

1,919

 

Total liabilities

 

 

501,368

 

 

 

365,395

 

Redeemable convertible preferred stock

 

 

-

 

 

 

727,474

 

Stockholders' equity (deficit)

 

 

 

 

 

 

 

 

Common stock

 

 

13

 

 

 

3

 

Additional paid-in capital

 

 

1,852,071

 

 

 

124,755

 

Accumulated other comprehensive (loss) income

 

 

(583

)

 

 

187

 

Accumulated deficit

 

 

(662,212

)

 

 

(397,047

)

Total stockholders' equity (deficit)

 

 

1,189,289

 

 

 

(272,102

)

Total liabilities, redeemable convertible preferred stock and

stockholders' equity (deficit)

 

$

1,690,657

 

 

$

820,767

 

Remaining performance obligation:

The remaining performance obligation was $602.6 million as of December 31, 2021, approximately 70% of which is expected to be recognized as revenue within 12 months. The remaining performance obligation was $435.5 million as of December 31, 2020, approximately 71% of which was expected to be recognized as revenue within 12 months.

Procore Technologies, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

 
 

 

Three Months Ended
December 31,

 

 

Year Ended
December 31,

 

(in thousands)

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(50,972

)

 

$

(47,431

)

 

$

(265,165

)

 

$

(96,167

)

Adjustments to reconcile net loss to net cash (used in)

provided by operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

41,232

 

 

 

21,619

 

 

 

227,161

 

 

 

43,960

 

Depreciation and amortization

 

13,107

 

 

 

7,096

 

 

 

36,376

 

 

 

25,994

 

Change in fair value of Series I redeemable convertible

preferred stock warrant liability

 

-

 

 

 

27,387

 

 

 

-

 

 

 

36,990

 

Abandonment of long-lived assets

 

-

 

 

 

654

 

 

 

554

 

 

 

3,505

 

Noncash operating lease expense

 

1,969

 

 

 

1,771

 

 

 

7,569

 

 

 

6,578

 

Unrealized foreign currency (gain) loss, net

 

(190

)

 

 

(494

)

 

 

685

 

 

 

(832

)

Deferred income taxes

 

(24,586

)

 

 

(1,283

)

 

 

(24,493

)

 

 

(1,311

)

Changes in operating assets and liabilities, net of effect of

business combinations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(37,540

)

 

 

(22,933

)

 

 

(34,157

)

 

 

(19,570

)

Deferred contract cost assets

 

(3,084

)

 

 

(2,615

)

 

 

(10,157

)

 

 

(2,023

)

Prepaid expenses and other assets

 

(8,986

)

 

 

(4,630

)

 

 

(16,741

)

 

 

(6,183

)

Accounts payable

 

4,082

 

 

 

3,175

 

 

 

3,954

 

 

 

724

 

Accrued expenses and other liabilities

 

9,492

 

 

 

(6,534

)

 

 

38,176

 

 

 

(5,433

)

Deferred revenue

 

53,950

 

 

 

38,473

 

 

 

78,671

 

 

 

41,810

 

Operating lease liabilities

 

(2,049

)

 

 

(2,474

)

 

 

(5,703

)

 

 

(6,189

)

Net cash flow (used in) provided by operating

activities

 

(3,575

)

 

 

11,781

 

 

 

36,730

 

 

 

21,853

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

(3,978

)

 

 

(484

)

 

 

(12,383

)

 

 

(7,202

)

Capitalized software development costs

 

(5,073

)

 

 

(2,361

)

 

 

(15,248

)

 

 

(11,764

)

Strategic investments

 

(850

)

 

 

-

 

 

 

(4,300

)

 

 

-

 

Acquisition of businesses, net of cash acquired

 

(489,847

)

 

 

(11,220

)

 

 

(509,837

)

 

 

(14,545

)

Net cash flow used in investing activities

 

(499,748

)

 

 

(14,065

)

 

 

(541,768

)

 

 

(33,511

)

Financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of redeemable convertible preferred

stock, net of issuance costs

 

-

 

 

 

9,985

 

 

 

-

 

 

 

177,916

 

Proceeds from issuance of Series I redeemable

convertible preferred stock warrant

 

-

 

 

 

-

 

 

 

-

 

 

 

11,923

 

Proceeds from initial public offering

 

-

 

 

 

-

 

 

 

665,129

 

 

 

-

 

Proceeds from stock option exercises

 

7,773

 

 

 

15,516

 

 

 

43,086

 

 

 

31,176

 

Proceeds from exercise of Series I redeemable

convertible preferred stock warrant

 

-

 

 

 

55,000

 

 

 

-

 

 

 

55,000

 

Payment of debt issuance costs

 

-

 

 

 

-

 

 

 

-

 

 

 

(93

)

Proceeds from employee stock purchase plan

 

9,475

 

 

 

-

 

 

 

9,475

 

 

 

-

 

Payments of deferred offering costs

 

(34

)

 

 

(20

)

 

 

(3,880

)

 

 

(2,300

)

Payment of deferred business acquisition consideration

 

-

 

 

 

(165

)

 

 

(475

)

 

 

(165

)

Principal payments under finance lease agreements, net

of proceeds from lease incentives

 

(334

)

 

 

(290

)

 

 

(1,509

)

 

 

(1,340

)

Net cash flows provided by financing activities

 

16,880

 

 

 

80,026

 

 

 

711,826

 

 

 

272,117

 

Net (decrease) increase in cash, cash equivalents and restricted

cash

 

(486,443

)

 

 

77,742

 

 

 

206,788

 

 

 

260,459

 

Effect of exchange rate changes on cash

 

211

 

 

 

579

 

 

 

(829

)

 

 

966

 

Cash, cash equivalents and restricted cash, beginning

of period

 

1,075,444

 

 

 

304,932

 

 

 

383,253

 

 

 

121,828

 

Cash, cash equivalents and restricted cash, end of period

$

589,212

 

 

$

383,253

 

 

$

589,212

 

 

$

383,253

 

Procore Technologies, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited)

 
 

Reconciliation of gross profit and gross margin to non-GAAP gross profit and non-GAAP gross margin:

 

 

 

Three Months Ended
December 31,

 

 

Year Ended
December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Revenue

 

$

146,103

 

 

$

109,510

 

 

$

514,821

 

 

$

400,291

 

Gross profit

 

 

116,336

 

 

 

90,436

 

 

 

416,509

 

 

 

328,628

 

Stock-based compensation expense

 

 

1,336

 

 

 

554

 

 

 

8,094

 

 

 

1,722

 

Amortization of acquired intangible assets

 

 

4,264

 

 

 

1,032

 

 

 

7,522

 

 

 

3,315

 

Employer payroll tax on employee stock

transactions

 

 

57

 

 

 

7

 

 

 

457

 

 

 

7

 

Acquisition-related expenses

 

 

2

 

 

 

-

 

 

 

2

 

 

 

-

 

Restructuring-related charges

 

 

-

 

 

 

-

 

 

 

-

 

 

 

127

 

Non-GAAP gross profit

 

$

121,995

 

 

$

92,029

 

 

$

432,584

 

 

$

333,799

 

Gross margin

 

 

80

%

 

 

83

%

 

 

81

%

 

 

82

%

Non-GAAP gross margin

 

 

83

%

 

 

84

%

 

 

84

%

 

 

83

%

Reconciliation of operating expenses to non-GAAP operating expenses:

 

 

 

Three Months Ended
December 31,

 

 

Year Ended
December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Revenue

 

$

146,103

 

 

$

109,510

 

 

$

514,821

 

 

$

400,291

 

GAAP sales and marketing

 

 

84,285

 

 

 

50,922

 

 

 

308,511

 

 

 

189,032

 

Stock-based compensation expense

 

 

(11,470

)

 

 

(4,741

)

 

 

(68,755

)

 

 

(13,385

)

Amortization of acquired intangible assets

 

 

(2,251

)

 

 

(516

)

 

 

(3,600

)

 

 

(1,728

)

Employer payroll tax on employee stock transactions

 

 

(495

)

 

 

(93

)

 

 

(2,325

)

 

 

(205

)

Acquisition-related expenses

 

 

(378

)

 

 

-

 

 

 

(488

)

 

 

-

 

Restructuring-related charges

 

 

-

 

 

 

(61

)

 

 

-

 

 

 

(1,824

)

Non-GAAP sales and marketing

 

$

69,691

 

 

$

45,511

 

 

$

233,343

 

 

$

171,890

 

GAAP sales and marketing as a percentage of revenue

 

 

58

%

 

 

46

%

 

 

60

%

 

 

47

%

Non-GAAP sales and marketing as a percentage

of revenue

 

 

48

%

 

 

42

%

 

 

45

%

 

 

43

%

GAAP research and development

 

 

60,671

 

 

 

35,406

 

 

 

237,290

 

 

 

124,661

 

Stock-based compensation expense

 

 

(15,413

)

 

 

(6,183

)

 

 

(85,040

)

 

 

(12,930

)

Amortization of acquired intangible assets

 

 

(904

)

 

 

(233

)

 

 

(2,674

)

 

 

(721

)

Employer payroll tax on employee stock transactions

 

 

(398

)

 

 

(45

)

 

 

(2,606

)

 

 

(88

)

Acquisition-related expenses

 

 

(906

)

 

 

-

 

 

 

(1,348

)

 

 

-

 

Restructuring-related charges

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,681

)

Non-GAAP research and development

 

$

43,050

 

 

$

28,945

 

 

$

145,622

 

 

$

109,241

 

GAAP research and development as a percentage of revenue

 

 

42

%

 

 

32

%

 

 

46

%

 

 

31

%

Non-GAAP research and development as a

percentage of revenue

 

 

29

%

 

 

26

%

 

 

28

%

 

 

27

%

GAAP general and administrative

 

 

45,830

 

 

 

25,695

 

 

 

156,635

 

 

 

73,465

 

Stock-based compensation expense

 

 

(13,013

)

 

 

(10,141

)

 

 

(65,272

)

 

 

(15,923

)

Employer payroll tax on employee stock transactions

 

 

(242

)

 

 

(187

)

 

 

(1,127

)

 

 

(272

)

Acquisition-related expenses

 

 

(4,528

)

 

 

(133

)

 

 

(7,442

)

 

 

(792

)

Restructuring-related charges

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(801

)

Non-GAAP general and administrative

 

$

28,047

 

 

$

15,234

 

 

$

82,794

 

 

$

55,677

 

GAAP general and administrative as a percentage of

revenue

 

 

31

%

 

 

23

%

 

 

30

%

 

 

18

%

Non-GAAP general and administrative as a

percentage of revenue

 

 

19

%

 

 

14

%

 

 

16

%

 

 

14

%

Reconciliation of loss from operations and operating margin to non-GAAP (loss) profit from operations and non-GAAP operating margin:

 

 

 

Three Months Ended
December 31,

 

 

Year Ended
December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Revenue

 

$

146,103

 

 

$

109,510

 

 

$

514,821

 

 

$

400,291

 

Loss from operations

 

 

(74,450

)

 

 

(21,587

)

 

 

(285,927

)

 

 

(58,530

)

Stock-based compensation expense

 

 

41,232

 

 

 

21,619

 

 

 

227,161

 

 

 

43,960

 

Amortization of acquired intangible assets

 

 

7,419

 

 

 

1,781

 

 

 

13,796

 

 

 

5,764

 

Employer payroll tax on employee stock

transactions

 

 

1,192

 

 

 

332

 

 

 

6,515

 

 

 

572

 

Acquisition-related expenses

 

 

5,814

 

 

 

133

 

 

 

9,280

 

 

 

792

 

Restructuring-related charges

 

 

-

 

 

 

61

 

 

 

-

 

 

 

4,433

 

Non-GAAP (loss) profit from operations

 

$

(18,793

)

 

$

2,339

 

 

$

(29,175

)

 

$

(3,009

)

Operating margin

 

 

(51

%)

 

 

(20

%)

 

 

(56

%)

 

 

(15

%)

Non-GAAP operating margin

 

 

(13

%)

 

 

2

%

 

 

(6

%)

 

 

(1

%)

Reconciliation of net loss and net loss per share to non-GAAP net loss and non-GAAP net loss per share:

 

 

 

Three Months Ended
December 31,

 

 

Year Ended
December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Revenue

 

$

146,103

 

 

$

109,510

 

 

$

514,821

 

 

$

400,291

 

Net loss

 

 

(50,972

)

 

 

(47,431

)

 

 

(265,165

)

 

 

(96,167

)

Stock-based compensation expense

 

 

41,232

 

 

 

21,619

 

 

 

227,161

 

 

 

43,960

 

Amortization of acquired intangible assets

 

 

7,419

 

 

 

1,781

 

 

 

13,796

 

 

 

5,764

 

Employer payroll tax on employee stock

transactions

 

 

1,192

 

 

 

332

 

 

 

6,515

 

 

 

572

 

Acquisition-related expenses

 

 

5,814

 

 

 

133

 

 

 

9,280

 

 

 

792

 

Restructuring-related charges

 

 

-

 

 

 

61

 

 

 

-

 

 

 

4,433

 

Income tax effect of non-GAAP items

 

 

(24,151

)

 

 

(1,376

)

 

 

(24,151

)

 

 

(1,376

)

Non-GAAP net loss

 

$

(19,466

)

 

$

(24,881

)

 

$

(32,564

)

 

$

(42,022

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss

 

$

(19,466

)

 

$

(24,881

)

 

$

(32,564

)

 

$

(42,022

)

Less: Recognition of beneficial conversion feature on

preferred stock as a deemed dividend

 

 

-

 

 

 

(2,477

)

 

 

-

 

 

 

(3,024

)

Non-GAAP net loss attributable to common

stockholders

 

$

(19,466

)

 

$

(27,358

)

 

$

(32,564

)

 

$

(45,046

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing net loss per

share attributable to common stockholders, basic and

diluted

 

 

132,892,072

 

 

 

29,074,828

 

 

 

92,673,453

 

 

 

27,895,546

 

GAAP net loss per share, basic and diluted

 

$

(0.38

)

 

$

(1.72

)

 

$

(2.86

)

 

$

(3.56

)

Non-GAAP net loss per share, basic and diluted

 

$

(0.15

)

 

$

(0.94

)

 

$

(0.35

)

 

$

(1.61

)

Computation of free cash flow:

 

 

Three Months Ended
December 31,

 

 

Year Ended
December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Net cash (used in) provided by operating activities

 

$

(3,575

)

 

$

11,781

 

 

$

36,730

 

 

$

21,853

 

Purchases of property and equipment

 

 

(3,978

)

 

 

(484

)

 

 

(12,383

)

 

 

(7,202

)

Capitalized software development costs

 

 

(5,073

)

 

 

(2,361

)

 

 

(15,248

)

 

 

(11,764

)

Non-GAAP free cash flow

 

$

(12,626

)

 

$

8,936

 

 

$

9,099

 

 

$

2,887

 

 



Contact:

Media Contact
Elizabeth Locke
press@procore.com

Investor Contact
Matthew Puljiz
ir@procore.com