Summary
Procore closed fiscal 2023 with $260.04 million in fourth-quarter revenue, an increase of 28.7% from the prior-year quarter. Full-year revenue reached $950.01 million, up 31.9%. Gross profit for the quarter was $212.21 million, up 31.4%. Current-quarter gross margin was 81.6%, up 1.7 percentage points, and full-year gross margin was 81.6%, up 2.2 percentage points. Non-GAAP gross margin was 85% for both the quarter and the full year. The company still posted a GAAP operating loss of $37.33 million in the quarter, narrower than the $75.20 million loss a year earlier. The full-year operating loss was $215.68 million, narrower than $290.45 million. Operating margin was -14.4% in the quarter, up 22.9 percentage points, and -22.7% for the full year, up 17.6 percentage points. Net loss was $29.52 million in the quarter, narrower than $71.18 million. The full-year net loss was $189.69 million, narrower than $286.93 million. Full-year diluted EPS was -$1.34, an improvement from -$2.10.
Cash generation improved. Operating cash flow was $40.74 million in the quarter, up 79.5%, and $92.02 million for the full year, up 629.8%. Capital expenditures were $2.25 million in the quarter, up 6.6%, and $10.32 million for the full year, down 34.6%. The press release reports non-GAAP free cash inflow of $29 million for the quarter and $47 million for the year. Current deferred revenue was $501.90 million, up 26.6% from the prior-year quarter. Total remaining performance obligations were $1.00 billion, up 25.4%.
Operational metrics showed a business scaling past $1 billion in annual recurring revenue. Procore ended 2023 with 2,008 customers contributing more than $100,000 of ARR, up 27%, and 62 customers contributing more than $1,000,000 of ARR, up 32%. It added 300 net new organic customers in the fourth quarter, ending with 16,367. Gross revenue retention was 95% for 2023, while net revenue retention was 114%. As of December 31, 2023, 74% of total ARR came from customers using four or more products, and 45% came from customers using six or more products. The company had 3,694 full-time employees, up 4% year-over-year. Procore also announced the appointment of Larry Stack as Chief Revenue Officer and ranked #5 on Glassdoor's 100 Best Places to Work in 2024. On the product front, the company launched Procore Risk Advisors in March 2023, launched Procore Pay in September 2023, and acquired Unearth in September 2023.
Guidance for 2024 is now available. For the first quarter, revenue is expected to be in the range of $262 million to $264 million, representing year-over-year growth of 23% to 24%, and non-GAAP operating margin is expected to be in the range of 7% to 8%. For the full year 2024, revenue is expected to be in the range of $1,137 million to $1,142 million, representing year-over-year growth of 20%, and non-GAAP operating margin is expected to be in the range of 7% to 8%. The company says a reconciliation of non-GAAP guidance to GAAP measures is not available without unreasonable effort. Non-GAAP operating margin was 7% in the fourth quarter and 2% for the full year.
Risks remain. Management said macroeconomic factors and cautious customer spending contributed to a decline in the cRPO annual growth rate. The company has continued to generate losses from operations and may not achieve profitability in the foreseeable future. It also maintains a full valuation allowance for net U.S. deferred tax assets. International expansion requires considerable management attention and resources, and the filing cites increased competition as a risk.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2023 | Q3 FY2023 | QoQ | Q4 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $260.0M | $247.9M | +4.9% | $202.1M | +28.7% |
| Gross profit | $212.2M | $203.8M | +4.1% | $161.5M | +31.4% |
| Gross margin | 81.6% | 82.2% | -0.6 pp | 79.9% | +1.7 pp |
| Research & development | $74.6M | $72.7M | +2.6% | $75.4M | -1.1% |
| Sales & marketing | $122.5M | $129.7M | -5.5% | $118.2M | +3.7% |
| General & administrative | $52.4M | $51.8M | +1.3% | $43.1M | +21.6% |
| Total operating expenses | $249.5M | $254.1M | -1.8% | $236.7M | +5.4% |
| Operating income (loss) | -$37.3M | -$50.4M | +25.9% | -$75.2M | +50.4% |
| Operating margin | -14.4% | -20.3% | +5.9 pp | -37.2% | +22.9 pp |
| Net income (loss) | -$29.5M | -$43.8M | +32.7% | -$71.2M | +58.5% |
| Net margin | -11.3% | -17.7% | +6.3 pp | -35.2% | +23.9 pp |
| Diluted EPS | -$0.21 | -$0.31 | +$0.10 | -$0.52 | +$0.31 |
| Net retention rate | 114.0% | — | — | — | — |
Risks
MD&A states the cRPO annual growth rate declined to 24% in 2023 from 34% in 2022, attributing part of the decline to cautious customer spending. Risk factors also warn that revenue growth rate will decline as the business matures, and customer count growth slowed to 13% in 2023 from 19% in 2022.
Risk factors and MD&A say macroeconomic factors have resulted in cautious customer spending, contributing to a decline in the cRPO annual growth rate. Revenue is priced based on annual construction volume, exposing the company to construction industry slowdowns, inflation, interest rates, supply chain disruptions, and reduced government infrastructure spending.
Risk factors disclose that a large number of high and critical unremediated vulnerabilities exist in the company's IT systems and will exist until remediation efforts are completed. A security incident could result in unauthorized access to sensitive information, regulatory investigations, litigation, and loss of customers.
Risk factors describe generative AI use in products and by employees, and note emerging laws such as the EU AI Act and U.S. state AI rules. Compliance could require changing business practices, retraining AI, or incurring additional compliance costs and regulatory actions.
MD&A and risk factors highlight longer and unpredictable sales cycles for larger enterprises and owners, which involve significant evaluation and negotiation processes. These customers can require substantial upfront sales costs, and there is no assurance the efforts will produce sales or broad platform deployment.
Risk factors state the market is highly competitive and rapidly changing, with competition from aggregated construction management tools, accounting software vendors, point solutions, and in-house tools. Competitors may offer lower-priced or free products, bundle broader offerings, or acquire customers at lower cost, pressuring pricing and market share.
Risk factors state the company is highly dependent on founder, President, and CEO Craig F. Courtemanche, Jr., and that U.S. employees work at will. Competition for personnel with required skills and technical knowledge is significant, and failure to hire or integrate employees could harm efficiency and product development.
Non-U.S. revenue was 14% of total revenue in 2023 and 2022, with customers running projects in over 150 countries as of December 31, 2023. International expansion increases compliance, anti-corruption, tariff, sanctions, data protection, and foreign exchange risks, and the company does not hedge non-U.S. Dollar currency exposure.
Risk factors state the company may need to raise additional capital through equity or debt financings, which could dilute stockholders or impose restrictive covenants. The marketable securities portfolio of $678.0 million as of December 31, 2023 is exposed to credit, liquidity, market, and interest rate risks, and bank failures could limit access to cash exceeding FDIC insurance limits.
Risk factors describe stringent and changing data privacy obligations, including CCPA fines up to $7,500 per violation, EU GDPR fines up to 20 million euros or 4% of annual global revenue, and U.K. GDPR fines up to 17.5 million pounds sterling or 4% of annual global turnover. Cross-border data transfer restrictions could disrupt operations or require relocating data processing.
Risk factors state that acquisitions and changes in accounting principles create increased risk of deficiencies in disclosure controls and internal control over financial reporting. Failure to maintain effective controls could require revising financial statements or cause loss of investor confidence.
Risk factors note credit card chargebacks and the risk of losing the right to accept credit cards if excessive fraud or merchant standard noncompliance occurs. Procore Pay relies on a payment partner, and disruption in payment processing could lead to enforcement actions, fines, or litigation.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Non-GAAP Operating Margin
Total Organic Customers
Net New Organic Customers
Customers > $100K ARR
Non-GAAP Free Cash Flow
Current RPO (cRPO)
Customers > $1M ARR
Total RPO
Summary, forecast, risks and KPIs are extracted from PROCORE TECHNOLOGIES, INC.'s SEC filings for Q4 FY2023 (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.