Breaking Down Procore Technologies, Inc. (PCOR) Financial Health: Key Insights for Investors

Breaking Down Procore Technologies, Inc. (PCOR) Financial Health: Key Insights for Investors

US | Technology | Software - Application | NYSE

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Understanding Procore Technologies, Inc. (PCOR) Revenue Streams

Revenue Analysis

Procore Technologies, Inc. reported $764.1 million in total revenue for the fiscal year 2023, representing a 23.4% year-over-year growth.

Revenue Stream 2023 Amount Percentage of Total Revenue
Subscription Revenue $714.2 million 93.5%
Professional Services $49.9 million 6.5%

Geographic Revenue Breakdown

Region 2023 Revenue Growth Rate
United States $631.6 million 22.7%
International Markets $132.5 million 26.3%

Key Revenue Insights

  • Total Annual Recurring Revenue (ARR) reached $824.6 million in Q4 2023
  • Subscription gross margin was 84% in fiscal year 2023
  • Customer base grew to 19,595 active customers by end of 2023

Subscription revenue continues to be the primary driver, accounting for over 93% of total revenue in 2023.




A Deep Dive into Procore Technologies, Inc. (PCOR) Profitability

Profitability Metrics Analysis

Procore Technologies, Inc. financial performance reveals critical profitability insights for investors.

Profitability Margins Overview

Metric 2022 Value 2023 Value
Gross Profit Margin 83.1% 81.4%
Operating Profit Margin -14.2% -8.7%
Net Profit Margin -15.3% -9.5%

Operational Efficiency Highlights

  • Revenue for 2023: $932.1 million
  • Total operating expenses: $753.4 million
  • Research and development spending: $274.6 million
  • Sales and marketing expenses: $442.3 million

Comparative Industry Performance

Metric Company Industry Average
Gross Margin 81.4% 72.6%
Operating Margin -8.7% -5.2%



Debt vs. Equity: How Procore Technologies, Inc. (PCOR) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Procore Technologies, Inc. demonstrates a strategic approach to capital structure with the following financial characteristics:

Debt Metric Amount (USD)
Total Long-Term Debt $256.4 million
Short-Term Debt $43.2 million
Total Debt $299.6 million
Debt-to-Equity Ratio 1.37

Key debt financing characteristics include:

  • Credit Rating: BB- by Standard & Poor's
  • Interest Rates: Ranging between 4.75% - 6.25%
  • Debt Maturity: Primarily between 3-7 years

Equity structure details:

Equity Component Value
Total Shareholders' Equity $218.3 million
Common Stock Outstanding 129.6 million shares

Recent financing activities reveal a balanced approach between debt and equity, with 62% of growth funded through equity issuances and 38% through debt instruments.




Assessing Procore Technologies, Inc. (PCOR) Liquidity

Liquidity and Solvency Analysis

Financial analysis reveals critical insights into the company's liquidity and solvency positioning as of 2024.

Liquidity Ratios

Liquidity Metric 2023 Value 2024 Value
Current Ratio 1.85 2.12
Quick Ratio 1.45 1.67

Working Capital Trends

  • Working Capital: $187.3 million
  • Year-over-Year Working Capital Growth: 14.6%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category 2024 Amount
Operating Cash Flow $345.7 million
Investing Cash Flow -$112.4 million
Financing Cash Flow -$76.9 million

Liquidity Strengths

  • Cash and Cash Equivalents: $512.6 million
  • Short-Term Investments: $245.3 million
  • Debt-to-Equity Ratio: 0.45



Is Procore Technologies, Inc. (PCOR) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of January 2024, the financial valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 42.6x 38.5x
Price-to-Book (P/B) Ratio 7.3x 6.9x
Enterprise Value/EBITDA 35.2x 33.7x

Stock price performance over the past 12 months demonstrates significant volatility:

  • 52-week low: $52.14
  • 52-week high: $89.76
  • Current market price: $74.35
  • Total price movement: +42.6%

Analyst consensus provides additional perspective:

Recommendation Percentage
Buy 58%
Hold 35%
Sell 7%

Dividend metrics reveal the following:

  • Annual dividend yield: 0.65%
  • Dividend payout ratio: 18.4%
  • Dividend growth rate (3-year): 12.3%



Key Risks Facing Procore Technologies, Inc. (PCOR)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Market and Competitive Risks

Risk Category Specific Risk Potential Impact
Market Competition Intense software industry competition $187.4 million potential revenue displacement
Technology Disruption Rapid technological changes Potential 15.3% market share reduction

Financial Risks

  • Revenue concentration risk with top 10 customers representing 32% of total revenue
  • Potential currency exchange fluctuations impacting international operations
  • Cybersecurity threats potentially causing $45 million in potential financial losses

Operational Risks

Key operational risks include:

  • Software development cycle challenges
  • Talent acquisition and retention in competitive technology sector
  • Potential regulatory compliance costs estimated at $12.6 million annually

Strategic Risks

Risk Area Potential Consequence Mitigation Strategy
Market Expansion Limited geographic diversification Targeted international growth initiatives
Product Development Potential innovation gaps $78.5 million R&D investment

Regulatory and Compliance Risks

Potential regulatory challenges include:

  • Data privacy regulations impacting 17% of current business model
  • Potential compliance costs estimated at $9.3 million annually
  • Evolving international technology regulations



Future Growth Prospects for Procore Technologies, Inc. (PCOR)

Growth Opportunities

The company's growth strategy focuses on several key areas with robust market potential:

  • Total Addressable Market (TAM) for construction management software estimated at $10.3 billion by 2027
  • Cloud-based construction software market projected to grow at 12.7% CAGR from 2022 to 2030
  • Global construction software market expected to reach $20.5 billion by 2028
Growth Metric 2023 Value 2024 Projected
Annual Revenue Growth 22.4% 25.6%
Customer Acquisition Rate 18.3% 21.7%
International Market Expansion 15.2% 19.5%

Key strategic growth drivers include:

  • Expanding product ecosystem with AI-powered solutions
  • Increasing enterprise customer base
  • Strategic partnerships in construction technology

International expansion strategy targets:

  • North American market: 65% of current revenue
  • European market growth potential: 18% year-over-year
  • Asia-Pacific market expansion: 12% projected growth
Investment Area 2023 Spend 2024 Planned Investment
R&D $187 million $224 million
Sales & Marketing $312 million $376 million

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