CARPINTERIA, Calif. — (BUSINESS WIRE) — February 22, 2022 — Procore 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:

• Revenue was $146 million, an increase of 33% year-over-year.
  • Including a $4 million contribution from Levelset
• GAAP gross margin was 80% and non-GAAP gross margin was 83%.
• GAAP operating margin was (51%) and non-GAAP operating margin was (13%).
  • GAAP operating margin includes approximately 690 bps of headwind from Levelset
  • Non-GAAP operating margin includes approximately 130 bps of headwind from Levelset
• Operating cash outflow for the fourth quarter was $4 million.
• Free cash outflow for the fourth quarter was $13 million.
• Total Remaining Performance Obligation (“RPO”) was $603 million, an increase of 38% year-over-year.
  • Short Term RPO was approximately 70% of Total RPO, representing an increase of 35% year-over-year

Full Year 2021 Financial Highlights:

• Revenue was $515 million, an increase of 29% year-over-year.
• GAAP gross margin was 81% and non-GAAP gross margin was 84%.
• GAAP operating margin was (56%) and non-GAAP operating margin was (6%).
• Operating cash flow for 2021 was $37 million, up 68% year-over-year.
• Free cash flow for 2021 was $9 million.

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:

• Added 588 net new organic customers in the fourth quarter, ending with a total of 12,193 organic customers.
  • Excluding over 3,000 customers from Levelset
• Number of organic customers contributing more than $100,000 of annual recurring revenue totaled 1,111 as of December 31, 2021, an increase of 32% year-over-year.
• Number of organic customers contributing more than $1,000,000 of annual recurring revenue totaled 30 as of December 31, 2021, an increase of 50% year-over-year.
• Achieved a gross revenue retention rate of over 95% for 2021.
• Ended 2021 with 2,572 employees, an increase of 34% year-over-year.
  • Excluding over 300 employees from Levelset
• As of December 31, 2021, 71% of total annual recurring revenue was generated from customers using four or more products, an increase of 300 bps year-over-year.
• As of December 31, 2021, 37% of total annual recurring revenue was generated from customers using six or more products, an increase of 500 bps year-over-year.
• Appointed Microsoft executive Erin Chapple to Procore’s Board of Directors.
• Named 2021 Philanthropist of the Year by the United States Minority Contractors Association.
• Completed the acquisition of Levelset to simplify lien management workflows for construction.

First Quarter and Full Year 2022 Outlook:

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

• First Quarter 2022 Outlook:
  • Revenue is expected to be in the range of $149 million to $151 million, representing year-over-year growth of 31% to 33%.
  • Non-GAAP operating margin is expected to be in the range of (15%) to (16%).
• Full Year 2022 Outlook:
  • Revenue is expected to be in the range of $661 million to $666 million, representing year-over-year growth of 28% to 29%.
    • Including $25 million from Levelset
  • Non-GAAP operating margin is expected to be in the range of (15%) to (16%).
    • Including 400 basis points of headwind from acquisition of Levelset

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.