Procore Technologies , Inc. (NYSE:PCOR), a leading provider of construction management software, reported a robust fourth quarter, surpassing analysts' expectations with an adjusted EPS of $0.17, higher by 10 cents than the estimated $0.07.
The company's revenue for the quarter also exceeded forecasts, coming in at $260.04 million against a consensus estimate of $248.34 million, marking a 29% increase YoY. This financial performance, coupled with a positive forecast for the upcoming year, sent Procore's shares soaring by 13.5%.
The company's financial health was further highlighted by a 32% YoY increase in full-year revenue, reaching $950 million. Procore's adjusted gross margin remained strong at 85%, and the company achieved an adjusted operating margin of 2% for the full year. The fourth quarter saw an operating cash inflow of $41 million and a free cash inflow of $29 million.
Procore's CEO, Tooey Courtemanche, expressed optimism about the company's trajectory, attributing the success to milestones such as surpassing $1 billion in total annual recurring revenue and delivering platform innovations. CFO Howard Fu emphasized the company's commitment to operational improvement, which has resulted in significant margin enhancement.
Looking ahead, Procore provided guidance for the first quarter of 2024, with revenue expected to be between $262 million and $264 million, representing a 23% to 24% YoY growth. This forecast is above the consensus of $257.4 million. The company also anticipates an adjusted operating margin of 7% to 8% for Q1 2024.
For the full year 2024, Procore expects revenue to range from $1.137 billion to $1.142 billion, indicating a 20% YoY growth and surpassing the consensus of $1.125 billion. The adjusted operating margin for the year is also projected to be between 7% and 8%.
The company's recent business achievements include a 27% YoY increase in the number of customers contributing more than $100,000 of annual recurring revenue, and a 32% increase in those contributing over $1,000,000.
Procore ended the year with a total of 16,367 organic customers and maintained a gross revenue retention rate of 95% and a net revenue retention rate of 114%.
The company's leadership team has also been strengthened with the appointment of Larry Stack as Chief Revenue Officer, who will be responsible for the company's revenue growth strategy.