Procore Technologies, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Procore Technologies, Inc. has submitted its 2023 annual report on Form 10-K, detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

PROCORE TECHNOLOGIES, INC. (PCOR) filed a Annual Report (10-K) with the SEC on February 26, 2024. Procore Technologies, Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 6309 Carpinteria Ave., Carpinteria, CA 93013. Procore Technologies, Inc. is incorporated in Delaware. The filing number for this report is 001-40396.

Why It Matters

For investors and stakeholders tracking PROCORE TECHNOLOGIES, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Procore's financial health, operational strategies, and risk factors for investors and stakeholders. The detailed financial statements and disclosures within the report are crucial for understanding the company's performance and future outlook in the software industry.

Risk Assessment

Risk Level: medium — PROCORE TECHNOLOGIES, INC. shows moderate risk based on this filing. The company's reliance on customer concentration risk, as indicated by the mention of 'CustomerConcentrationRiskMember' for its software products, suggests a potential vulnerability if key customers reduce their business.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Procore's growth sustainability and potential customer-related risks.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-02-26 — Filing Date (Date filed)
• 001-40396 — SEC File Number (SEC filing identifier)

Key Players & Entities

• PROCORE TECHNOLOGIES, INC. (company) — Filer name
• PCOR (company) — Ticker symbol
• 10-K (document) — Form type
• 2024-02-26 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• 6309 CARPINTERIA AVE. (address) — Business address
• CARPINTERIA (location) — Business address city
• CA (location) — Business address state

FAQ

Risk Factors

• Customer Concentration Risk [medium — market]: The company faces risks related to customer concentration, particularly within its software products segment, which could impact revenue if key customers reduce their business.

Industry Context

Procore Technologies operates in the software industry, specifically providing cloud-based software for the construction industry. This sector is characterized by rapid technological advancements and increasing demand for integrated digital solutions.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and operations.

What Investors Should Do

1. Review Procore's detailed financial statements for the fiscal year ended December 31, 2023.
2. Analyze the risk factors section, paying close attention to customer concentration and market risks.
3. Compare Procore's performance and disclosures against industry peers and previous filings.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-26: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 31, 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.0001 — ange on which registered Common stock, $0.0001 par value PCOR The New York Stock Exch
• $100,000 — of customers that contributed more than $100,000 of annual recurring revenue ("ARR"), wh
• $1,000,000 — of customers that contributed more than $1,000,000 of ARR was 62, 47, and 30 as of Decembe
• $514.8 million — ificant growth. We generated revenue of $514.8 million in 2021, $720.2 million in 2022, and $9
• $720.2 million — ated revenue of $514.8 million in 2021, $720.2 million in 2022, and $950.0 million in 2023, re
• $950.0 million — on in 2021, $720.2 million in 2022, and $950.0 million in 2023, representing year-over-year gr
• $265.2 million — 2 and 32% in 2023. We had net losses of $265.2 million in 2021, $286.9 million in 2022, and $1
• $286.9 million — d net losses of $265.2 million in 2021, $286.9 million in 2022, and $189.7 million in 2023. O
• $189.7 million — on in 2021, $286.9 million in 2022, and $189.7 million in 2023. Our Industry The constructio

Filing Documents

• pcor-20231231.htm (10-K) — 2120KB
• pcor-fy23x10xkxexx103.htm (EX-10.3) — 379KB
• pcor-fy23x10xkxexx211.htm (EX-21.1) — 6KB
• pcor-fy23x10xkxexx231.htm (EX-23.1) — 2KB
• pcor-fy23x10xkxexx311.htm (EX-31.1) — 10KB
• pcor-fy23x10xkxexx312.htm (EX-31.2) — 10KB
• pcor-fy23x10xkxexx321.htm (EX-32.1) — 6KB
• pcor-fy23x10xkxexx322.htm (EX-32.2) — 6KB
• pcor-fy23x10xkxexx971.htm (EX-97.1) — 45KB
• pcor-20231231_g1.jpg (GRAPHIC) — 134KB
• 0001628280-24-006848.txt (&nbsp;) — 12001KB
• pcor-20231231.xsd (EX-101.SCH) — 76KB
• pcor-20231231_cal.xml (EX-101.CAL) — 145KB
• pcor-20231231_def.xml (EX-101.DEF) — 378KB
• pcor-20231231_lab.xml (EX-101.LAB) — 1058KB
• pcor-20231231_pre.xml (EX-101.PRE) — 696KB
• pcor-20231231_htm.xml (XML) — 1547KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 44 Item 1C. Cybersecurity 44 Item 2.

Properties

Properties 45 Item 3.

Legal Proceedings

Legal Proceedings 45 Item 4. Mine Safety Disclosures 45 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 46 Item 6. [Reserved] 47 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 48 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 66 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 67 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 108 Item 9A.

Controls and Procedures

Controls and Procedures 108 Item 9B. Other Information 109 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 109 PART III Item 10. Directors, Executive Officers, and Corporate Governance 110 Item 11.

Executive Compensation

Executive Compensation 110 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 110 Item 13. Certain Relationships and Related Transactions, and Director Independence 110 Item 14. Principal Accounting Fees and Services 110 PART IV Item 15. Exhibits, Financial Statement Schedules 111 Item 16 Form 10-K Summary 111 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this Annual Report on Form 10-K are forward-looking statements regarding our future operating results and financial position, our business strategy and plans, market growth and trends, and our objectives for future operations. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. These forward-looking statements include, but are not limited to, statements concerning the following: our expectations regarding our financial performance, including revenues, expenses, and margins, and our ability to achieve or maintain future profitability; our ability to effectively manage our growth; anticipated performance, trends, growth rates, and challenges in our business and in the markets in which we operate or

Business

Item 1. Business. Overview Our mission is to connect everyone in construction on a global platform. We are the leading global provider of cloud-based construction management software, and are helping transform one of the oldest, largest, and least digitized industries in the world. We focus exclusively on connecting and empowering the construction industry's key stakeholders, such as owners, general contractors, specialty contractors, architects, and engineers, to collaborate and access our capabilities from any location on any internet-connected device. Our platform is modernizing and digitizing construction management by enabling real-time access to critical project information, simplifying complex workflows, and facilitating seamless communication among key stakeholders, all of which we believe positions us to serve as the system of record for the construction industry. We are also continuing to develop other programs and services to address related challenges faced by the construction industry's key stakeholders. Adoption of our products, services, and platform helps our customers increase productivity and efficiency, reduce rework and costly delays, improve safety and compliance, and enhance financial transparency and accountability. In short, we build the software for the people that build the world. We have established our leading market position by focusing on serving the unique needs of the construction industry. We work directly with stakeholders to develop the products and services they need and to provide high-quality support, available to all users at no additional charge. Our five integrated product categories—Preconstruction, Project Execution, Workforce Management, Financial Management, and Construction Intelligence—automate workflows, provide real-time visibility, offer advanced analytics, and support collaboration across key stages of the construction project lifecycle. Each of our products can be accessed from the office or the jobsite on com