Curious about Procore net worth? As a leading provider of construction management software, Procore’s financial performance reflects its SaaS revenue model.
In this article, we’ll dive into Procore’s financial growth and how its operations impact its bottom line.
As Ando Money, we aim to offer insightful financial analysis that helps you stay informed about this industry giant.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Procore Technologies, Inc. |
| Full Name | Procore Technologies, Inc. |
| Website | https://www.procore.com |
| Industry | Software (Construction Management Software) |
| Traded as | NYSE: PCOR |
| ISIN | US74340B1026 |
| Founded | 2002 |
| Founders | Craig “Tooey” Courtemanche |
| Country/Territory | United States |
| Headquarters | Carpinteria, California, USA |
| Chief Executive Officer | Craig “Tooey” Courtemanche |
| Number of Employees | ~3,000 |
| Market Cap | $9.29 billion |
| Total Assets | $1.97 billion |
| Total Equity | $1.26 billion |
| Revenue | $553.8 million (first half of 2024) |
| Net Income | -$17.3 million (first half of 2024) |
What is the Net Worth/Market Cap of Procore in 2024?
As of October 2024, Procore has a market cap of $9.29 billion. This positions it as a competitive player in the software industry, specifically in construction management.
While it’s not as massive as some of the richest companies, Procore continues to show growth due to the high demand for construction technology solutions.
Some companies and brands related to Procore include:
You can explore more companies in the industry by checking out our analysis of the largest global corporations.
Procore Financial Performance Overview
Key Revenue Streams and Financial Breakdown
Procore’s revenue in the first six months of 2024 reached $553.8 million, a strong growth from $442.1 million in the same period of 2023. This increase stems from its focus on software services for the construction industry.
Procore’s primary source of revenue is its subscription-based SaaS model, allowing customers to access its construction management platform.
Software as a Service (SaaS) Revenue Model
A significant portion of Procore’s financial performance comes from its SaaS subscription services.
These recurring revenues, generated through subscriptions to Procore’s software suite, provide consistent cash flow, contributing to the company’s $459.9 million gross profit in the first half of 2024.
The consistent subscription revenue is one of the key reasons Procore continues to thrive.
Construction Industry Demand and Its Impact on Revenue
The demand for construction technology tools has grown substantially, especially as companies seek digital solutions to improve project management. Procore’s software is uniquely positioned to meet this need, fueling revenue growth.
The 16% increase in remaining performance obligations (contracts for future revenue) also suggests that the industry is set to bring even more value to Procore’s bottom line.
Research and Development as a Financial Investment
Procore allocated $142.9 million to research and development (R&D) in the first half of 2024.
This investment in innovation enables the company to refine and expand its product offerings, making its software more attractive to clients.
Despite the high cost of R&D, Procore’s commitment to improvement directly supports its ability to secure new contracts and retain customers.
Sales and Marketing Strategies Affecting Revenue
Sales and marketing expenses amounted to $248.9 million in the first six months of 2024.
This strategic investment is essential for expanding Procore’s global footprint and entering new markets.
These campaigns target large construction firms, which significantly contribute to the company’s financial growth.
Procore’s sales and marketing efforts help it stay competitive against other industry giants like Autodesk and Trimble.
Strategic Acquisitions and Partnerships
Procore has also made strategic acquisitions to boost its revenue streams.
These acquisitions, like the purchase of Levelset, integrate complementary services into Procore’s ecosystem, enhancing the value it delivers to clients.
Additionally, partnerships with large construction firms help Procore tap into more extensive projects, further growing its financial impact.
Employee Productivity and Stock-Based Compensation
Procore’s performance is supported by its highly skilled employees, who benefit from stock-based compensation programs.
In the first half of 2024, stock-based compensation expenses reached $92.6 million, incentivizing employees to contribute to the company’s long-term financial success.
This compensation structure ties employee productivity directly to the company’s financial outcomes.
Global Expansion and Revenue Diversification
Procore’s international expansion is another key driver of its financial performance.
The company’s strategy to penetrate new geographic markets has started to pay off, as seen in its $1.03 billion in remaining performance obligations (future revenue contracts).
By diversifying into regions outside of the U.S., Procore ensures it remains financially resilient even in volatile domestic markets.
Customer Retention and Contract Renewals
Customer retention is vital for Procore’s revenue stability.
Many of its clients sign multi-year contracts, and contract renewals are a crucial part of the company’s recurring revenue model.
The high retention rates, supported by Procore’s excellent customer service, keep the company’s financial foundation solid.
Operational Efficiency and Cost Management
Procore’s efforts to manage costs while boosting operational efficiency have paid off.
Despite its rapid growth, the company remains focused on optimizing internal processes.
This efficiency allows Procore to reinvest savings into other areas like R&D, enhancing its long-term financial health.
FAQs about Procore
What industry does Procore operate in?
It operates in the construction management software industry, offering tools for project management and collaboration.
How many employees does Procore have?
As of 2024, Procore employs approximately 3,000 people globally, supporting its various operations and expansions.
What is Procore’s revenue for the first half of 2024?
It reported a revenue of $553.8 million for the first half of 2024, marking a significant year-over-year growth from 2023.
What are Procore’s total assets?
As of June 2024, its total assets amount to $1.97 billion, indicating its substantial market presence and financial strength.
How does Procore generate most of its revenue?
It generates the majority of its revenue through its SaaS (Software as a Service) subscription model, which provides construction companies with digital tools for managing projects.
Conclusion
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