Summary
Procore closed fiscal 2021 with fourth-quarter revenue of $146.1 million, up 33.4% from the prior-year quarter. Full-year revenue reached $514.8 million, up 28.6%. The company reported fourth-quarter GAAP gross margin of 79.6%, down 3.0 percentage points from the prior-year quarter. GAAP operating margin was negative 51.0%, down 31.2 percentage points. Operating loss was $74.45 million, wider than the prior-year quarter. Net loss was $50.97 million, also a wider loss than a year earlier. For the full year, net loss was $265.16 million, wider than the prior year, and diluted EPS was negative $2.86.
Cash flow was mixed. Fourth-quarter operating cash flow was negative $3.6 million, down from positive operating cash flow a year earlier. For the full year, operating cash flow was $36.7 million, up 68.1%. Free cash flow, a non-GAAP measure, was negative $13 million in the fourth quarter and $9 million for the full year. Capital expenditures were $4.0 million in the quarter and $12.4 million for the full year, up 71.9%. Deferred revenue was $301.6 million, up 41.3% from a year earlier. Remaining performance obligations were $602.6 million, with about 70% expected to be recognized as revenue within 12 months.
Operational metrics showed steady customer growth. Procore added 588 net new organic customers in the fourth quarter and ended 2021 with 12,193 organic customers. That customer count excludes more than 3,000 customers from Levelset. The number of organic customers contributing more than $100,000 of annual recurring revenue reached 1,111, up 32% year-over-year. Customers contributing more than $1 million of annual recurring revenue totaled 30, up 50%. Gross revenue retention was over 95% for 2021. Procore ended the year with 2,572 employees, up 34%, excluding over 300 employees from Levelset. Product adoption also broadened: 71% of total annual recurring revenue came from customers using four or more products, up 300 basis points, and 37% came from customers using six or more products, up 500 basis points.
Guidance points to continued growth with no near-term profit. For the first quarter of 2022, Procore expects revenue of $149 million to $151 million, representing year-over-year growth of 31% to 33%, and a non-GAAP operating margin of negative 15% to negative 16%. For the full fiscal year 2022, the company expects revenue of $661 million to $666 million, representing year-over-year growth of 28% to 29%, including $25 million from Levelset. Full-year 2022 non-GAAP operating margin is expected to be negative 15% to negative 16%, including a 400 basis point headwind from the Levelset acquisition.
Risks remain significant. The COVID-19 pandemic continues to create uncertainty for construction activity and for the company's hybrid workforce plans. Procore also faces execution risk from its international expansion and from integrating recent acquisitions, including Levelset and LaborChart. The materials finance business acquired with Levelset is immaterial today but could grow and affect liquidity. Procore has an accumulated deficit, expects to keep investing heavily, and may need additional capital. Its Credit Facility matures on May 7, 2022, and the company maintains a full valuation allowance for its net U.S. and U.K. deferred tax assets. The company's guidance depends on its ability to add customers, expand product use, and realize benefits from acquisitions while managing costs.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2021 | Q3 FY2021 | QoQ | Q4 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $146.1M | $132.0M | +10.7% | — | — |
| Gross profit | $116.3M | $109.3M | +6.4% | — | — |
| Gross margin | 79.6% | 82.8% | -3.2 pp | — | — |
| Research & development | $60.7M | $53.4M | +13.5% | — | — |
| Sales & marketing | $84.3M | $70.4M | +19.8% | — | — |
| General & administrative | $45.8M | $35.1M | +30.8% | — | — |
| Total operating expenses | $190.8M | $158.9M | +20.1% | — | — |
| Operating income (loss) | -$74.5M | -$49.6M | -50.2% | — | — |
| Operating margin | -51.0% | -37.5% | -13.4 pp | — | — |
| Net income (loss) | -$51.0M | -$50.7M | -0.5% | — | — |
| Net margin | -34.9% | -38.4% | +3.5 pp | — | — |
| Customers | 3,000 | — | — | — | — |
Risks
The company incurred net losses of $265.2 million in 2021 and has an accumulated deficit of $662.2 million as of December 31, 2021. It expects expenses to increase as it continues to invest in growth, which could prevent it from achieving or sustaining profitability.
The construction management software market is highly competitive, and competitors may have advantages such as better name recognition, larger marketing budgets, and greater resources. They may offer lower-priced or bundled products, forcing the company to engage in price-cutting initiatives or increase marketing expenses.
The company is highly dependent on the services of Mr. Courtemanche, founder, President, and CEO, and relies on its management team. The loss of key personnel could materially adversely affect the business.
The company is subject to stringent data privacy and security obligations, including CCPA, CPRA, GDPR, and PCI DSS. Noncompliance could result in significant fines, such as up to $7,500 per violation under CCPA, up to 20 million euros or 4% of annual global revenue under GDPR, and penalties of $5,000 to $100,000 per month under PCI DSS.
The company faces evolving cybersecurity threats, including ransomware and supply chain attacks. A security incident could disrupt operations, result in loss of sensitive information, and lead to regulatory investigations, litigation, and reputational harm.
The COVID-19 pandemic has caused business disruption and may continue to adversely affect demand for the platform, lengthen sales cycles, reduce subscription renewals, and negatively impact collections, with potential impacts in 2022 and future periods.
The company completed the acquisitions of LaborChart for $76.2 million and Levelset for $484.1 million in Q4 2021. Integration risks include failure to realize anticipated benefits, potential impairment of goodwill, and diversion of management attention.
The construction industry is impacted by economic slowdowns, inflation, supply chain disruptions, labor shortages, and reduced government spending. A decrease in construction volume could reduce the amount customers pay, as pricing is based on annual construction volume.
The company had 15% of revenue from customers outside the US in 2021 and plans further international expansion. Risks include compliance with diverse laws, foreign exchange, and political instability.
The company experienced rapid revenue growth, from $289.2 million in 2019 to $514.8 million in 2021, but expects its revenue growth rate to decline in the future. Failure to maintain revenue growth or accurately forecast future growth could cause the stock price to decline.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Non-GAAP Operating Margin
Total Organic Customers
Free Cash Flow
Net New Organic Customers Added
Levelset Customers
Summary, forecast, risks and KPIs are extracted from PROCORE TECHNOLOGIES, INC.'s SEC filings for Q4 FY2021 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.