Company: PCOR
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-008121
Chunk: 99

Company: PROCORE TECHNOLOGIES, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 99
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Research and development3,535 3,217 2,474 General and administrative2,086 1,910 1,202 Total employer payroll tax on employee stock transactions$9,460 $8,433 $5,939 

(4)Includes acquisition-related expenses as follows: 

Year Ended December 31,202420232022(in thousands)Sales and marketing1,448 2,483 1,725 Research and development32 6,370 5,549 General and administrative808 35 2,128 Total acquisition-related expenses$2,288 $8,888 $9,402 

56

Comparison of the Years Ended December 31, 2024 and 2023

Revenue

Year Ended December 31,Change20242023DollarPercent(dollars in thousands)Revenue$1,151,708 $950,010 $201,698 21 %

In 2024, our revenue increased by $201.7 million, or 21%, compared to 2023, of which approximately 64% was attributable to revenue from existing customers and approximately 36% was attributable to revenue from new customers acquired during 2024. The increase in revenue from existing customers includes the net benefit of a full year of subscription revenue in 2024 from customers that were newly acquired in 2023 and continued their subscriptions in 2024, and customers that expanded their subscriptions in 2024 through the purchase of additional construction volume or products and services.

Cost of Revenue, Gross Profit, and Gross Margin

Year Ended December 31,Change20242023DollarPercent(dollars in thousands)Cost of revenue$205,612 $174,462 $31,150 18 %Gross profit946,096 775,548 170,548 22 %Gross margin82 %82 %

The increase in cost of revenue during 2024 was primarily attributable to an increase of $13.7 million in amortization of capitalized software development costs. The increase in cost of revenue was also attributable to a $9.6 million increase in third-party cloud hosting and related services as we grow our customer base; a $4.1 million increase in personnel-related expenses, including increases of $2.7 million in salaries and wages, $0.9 million in stock-based compensation expense, and $0.3 million in severance costs incurred related to the restructuring event in January