Procore Technologies Inc (PCOR) Reports 33% YoY Revenue Increase in Q3 2023

• Procore Technologies Inc (NYSE:PCOR) reported Q3 2023 revenue of $248 million, a 33% increase YoY.

• The company returned to non-GAAP operating profitability in Q3 2023.

• Procore added 363 net new organic customers in Q3, ending with a total of 16,067 organic customers.

• Procore's Q3 2023 GAAP gross margin was 82% and non-GAAP gross margin was 86%.

Procore Technologies Inc (NYSE:PCOR), a leading global provider of construction management software, announced its financial results for the third quarter ended September 30, 2023, on November 1, 2023. The company reported a 33% year-over-year increase in revenue, reaching $248 million. Despite a challenging demand environment, Procore continued to innovate its platform and improve its efficiency profile, returning to non-GAAP operating profitability in Q3 2023.

Financial Highlights

Procore's GAAP gross margin for Q3 2023 was 82%, while the non-GAAP gross margin was 86%. The GAAP operating margin was (20%), and the non-GAAP operating margin was 3%. The company reported an operating cash inflow of $34 million and a free cash inflow of $22 million for the third quarter.

Business Highlights

Procore added 363 net new organic customers in the third quarter, bringing the total to 16,067 organic customers. The company also achieved a gross revenue retention rate of 95% in the third quarter. Procore introduced several innovations to its platform, including Procore Copilot and Procore Pay, and was recognized as a Silver Stevie Winner in The 20th Annual International Business Awards in 2023 for the Most Innovative Tech Company of the Year.

Outlook for Q4 and Full Year 2023

For the fourth quarter of 2023, Procore expects revenue to be in the range of $247 million to $249 million, representing year-over-year growth of 22% to 23%. The non-GAAP operating margin is expected to be in the range of 2% to 3%. For the full year 2023, the company expects revenue to be in the range of $937 million to $939 million, representing year-over-year growth of 30%. The non-GAAP operating margin is expected to be in the range of 0.5% to 1%.

Conclusion

Despite facing a challenging demand environment, Procore Technologies Inc (NYSE:PCOR) has demonstrated resilience and adaptability. The company's return to non-GAAP operating profitability and its continued customer growth underscore its commitment to delivering innovative technology solutions that drive efficiency and productivity in the construction industry.

Explore the complete 8-K earnings release (here) from Procore Technologies Inc for further details.

This article first appeared on GuruFocus.