# EDGAR Filing Document

**Accession Number:** 0001611052
**File Stem:** 0001564590-23-002008
**Filing Date:** 2023-2
**Character Count:** 44234
**Document Hash:** 72ac9f2e63075a880e1dac0fc3abf41f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001564590-23-002008.hdr.sgml**: 20230216

**ACCESSION NUMBER**: 0001564590-23-002008

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230215

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230216

**DATE AS OF CHANGE**: 20230216

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PROCORE TECHNOLOGIES, INC.
- **CENTRAL INDEX KEY:** 0001611052
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **IRS NUMBER:** 731636261
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40396
- **FILM NUMBER:** 23638557

**BUSINESS ADDRESS:**
- **STREET 1:** 6309 CARPINTERIA AVE.
- **CITY:** CARPINTERIA
- **STATE:** CA
- **ZIP:** 93013
- **BUSINESS PHONE:** 866-477-6267

**MAIL ADDRESS:**
- **STREET 1:** 6309 CARPINTERIA AVE.
- **CITY:** CARPINTERIA
- **STATE:** CA
- **ZIP:** 93013

?xml version="1.0" encoding="utf-8"? pcor-8k_20230215.htm

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### WASHINGTON, D.C. 20549

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### FORM 8-K

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#### CURRENT REPORT

#### Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

#### Date of Report (Date of earliest event reported): February 15, 2023

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## Procore Technologies, Inc.

#### (Exact name of Registrant as Specified in Its Charter)

------

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-40396** | **73-1636261** |
| **(State or Other Jurisdiction**<br> **of Incorporation)** | **(Commission File Number)** | **(IRS Employer**<br> **Identification No.)** |
| **6309 Carpinteria Avenue,**<br> **Carpinteria, CA** |  | **93013** |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

---

#### Registrant's Telephone Number, Including Area Code: (866) 477-6267

#### Not Applicable

#### (Former Name or Former Address, if Changed Since Last Report)

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br> **Symbol(s)** | **Name of each exchange on which registered** |
| Common stock, $0.0001 par value | PCOR | The New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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#### Item 2.02 Results of Operations and Financial Condition.
On February 16, 2023, Procore Technologies, Inc. (the "Company") issued a press release announcing its results for the fiscal quarter ended December 31, 2022. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

The information in each item of this Current Report on Form 8-K and the exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

#### Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(b) On February 15, 2023, the board of directors (the "Board") of the Company approved the transition of Paul E. Lyandres from his current position as Chief Financial Officer and Treasurer of the Company to a newly established position as President of Fintech of the Company, effective as of the first business day immediately following the filing of the Company's Quarterly Report on Form 10-Q (the "Form 10-Q") for the quarter ended March 31, 2023 (the "Effective Date"). The Form 10-Q is estimated to be filed on May 5, 2023. Until the Effective Date, Mr. Lyandres will continue to serve as Chief Financial Officer and Treasurer of the Company. The transition of Mr. Lyandres to his new position at the Company was not the result of a disagreement with the Company or on any matter relating to the Company's operations, policies, or practices.

(c) In connection with Mr. Lyandres's transition to President of Fintech of the Company, on February 15, 2023, the Board approved the appointment of Howard Fu, age 49, to serve as Chief Financial Officer and Treasurer of the Company, effective concurrently with the transition of Mr. Lyandres on the Effective Date. Until the Effective Date, Mr. Fu will continue to serve as Senior Vice President, Finance of the Company.

Since February 2021, Mr. Fu has served as Senior Vice President, Finance of the Company. From October 2015 to February 2021, Mr. Fu served as the Vice President of FP&A at DocuSign, Inc., an electronic signature technology company, where he managed the financial planning and analysis organization and was responsible for fiscal planning, ensuring cross-functional alignment and execution, monthly and quarterly financial forecasts, and partnering with accounting, investor relations, and revenue operations. Mr. Fu has more than 20 years of experience in finance leadership positions with companies including Visa Inc., Salesforce, Inc., and LinkedIn Corporation. Mr. Fu holds a B.S. in Civil Engineering from University of California, Berkeley, an MBA in Finance from Yale University and an M.S. in Management Science and Engineering from Stanford University.

Mr. Fu will enter into an indemnification agreement with the Company, in the form previously approved by the Board and filed with the Securities and Exchange Commission, as of the Effective Date.

There are no arrangements or understandings between Mr. Fu and any other person pursuant to which Mr. Fu was appointed as Chief Financial Officer and Treasurer, and there are no family relationships between Mr. Fu and any director or other executive officer of the Company, and he has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.

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#### Item 9.01 Financial Statements and Exhibits.
(d) <u>Exhibits</u>.

The exhibit listed below is being furnished with this Current Report on Form 8-K.

---

| | |
|:---|:---|
| **Exhibit**<br> **Number** | **Description** |
| 99.1 | [<u>Press Release dated February 16, 2023</u>](pcor-ex991_6.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | Procore Technologies, Inc. | Procore Technologies, Inc. |
| Date: February 16, 2023 | By: | /s/ Benjamin C. Singer |
|  |  | **Benjamin C. Singer** |
|  |  | **Chief Legal Officer and Corporate Secretary** |

---

## Exhibit 99.1

#### Exhibit 99.1

#### Procore Announces Fourth Quarter and Full Year 2022 Financial Results

#### Fifth Consecutive Quarter of Short Term RPO Year-Over-Year Growth Above 30%
CARPINTERIA, CA – February 16, 2023 -- Procore Technologies, Inc. (NYSE: PCOR), a leading global provider of construction management software, today announced financial results for the fourth quarter and full year ended December 31, 2022.

"Our strong fourth quarter performance reflects the power of our platform, our leadership position and our trusted partnership with the construction industry. We look forward to continuing this momentum as we enter 2023," said Tooey Courtemanche, founder, president and CEO of Procore. "I'm also thrilled to share that CFO, Paul Lyandres, will be transitioning to a newly established role as President of Fintech in early May, at which time, our SVP of Finance, Howard Fu, will be promoted to CFO. These changes reinforce the incredible caliber of leadership we have as we look towards our next phase of efficient growth and continue advancing our vision of improving the lives of everyone in construction."

"Our year-end results reflect Procore's consistent performance and strength across multiple facets of the business," said Paul Lyandres, CFO of Procore. "It has been an honor serving in the role of CFO, and I'm excited for the next chapter of leading the Fintech organization at Procore."

#### Fourth Quarter 2022 Financial Highlights:
• Revenue was $202 million, an increase of 38% year-over-year.

o Including a $9 million contribution from Levelset.

• GAAP gross margin was 80% and non-GAAP gross margin was 84%.

• GAAP operating margin was (37%) and non-GAAP operating margin was (8%).

• Operating cash inflow for the fourth quarter was $23 million.

• Free cash inflow for the fourth quarter was $12 million.

• Total remaining performance obligation ("RPO") was $798 million, an increase of 32% year-over-year.

o Short term RPO was approximately 70% of total RPO, representing an increase of 34% year-over-year.

#### Full Year 2022 Financial Highlights:
• Revenue was $720 million, an increase of 40% year-over-year.

o Including a $32 million contribution from Levelset.

• GAAP gross margin was 79% and non-GAAP gross margin was 84%.

• GAAP operating margin was (40%) and non-GAAP operating margin was (10%).

• Operating cash inflow for 2022 was $13 million.

• Free cash outflow for 2022 was $37 million.

The financial results included in this press release are preliminary and will not be final until Procore files its Annual Report on Form 10-K for the period. A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

#### Recent Business Highlights:
• Added 402 net new organic customers in the fourth quarter, ending with a total of 14,488 organic customers.

• Achieved a gross revenue retention rate of 95% for 2022.

• Ended 2022 with 3,568 full-time employees, an increase of 24% year-over-year.

• Announced a number of innovations to the Procore platform addressing challenges associated with payments, labor, preconstruction, communication and more.

• Partnered with Dodge Construction Network to release the 2022 Top Business Issues for Specialty Contractors Report, highlighting key issues impacting specialty contractors.

• Announced our expansion to Germany.

• Released inaugural 2022 Environmental, Social and Governance ("ESG") Report, highlighting the company's guiding principles, efforts and aspirations related to ESG.

• Named one of Construction Executive's 2022 Top Construction Technology Firms.

• Awarded the TrustRadius 2022 Tech Cares Award.

------

#### Leadership Updates:
Today, Procore announced that Paul Lyandres, CFO of Procore, will be assuming a new role at Procore as President of Fintech. In this role, Mr. Lyandres will lead the strategic planning, direction, innovation and overall execution of Procore's fintech initiatives. Mr. Lyandres will remain CFO until early May 2023, at which time Howard Fu, Procore's SVP of Finance, will succeed Mr. Lyandres as CFO.

Effective as of February 21, 2023, Sarah Hodges will be joining Procore as Chief Marketing Officer (CMO). As CMO of Procore, Ms. Hodges will be responsible for the development of the strategic marketing plan and execution of all marketing activities globally in support of Procore's financial and strategic business objectives.

#### First Quarter and Full Year 2023 Outlook:
Procore is providing the following guidance for the first quarter and full year 2023:

• First Quarter 2023 Outlook:

o Revenue is expected to be in the range of $202 million to $204 million, representing year-over-year growth of 27% to 28%.

o Non-GAAP operating margin is expected to be in the range of (8.5%) to (9.5%).

• Full Year 2023 Outlook:

o Revenue is expected to be in the range of $895 million to $900 million, representing year-over-year growth of 24% to 25%.

o Non-GAAP operating margin is expected to be in the range of (6.5%) to (7.5%).

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Procore's future GAAP financial results.

#### Quarterly Conference Call
Procore Technologies, Inc. will hold a conference call to discuss its fourth quarter and full year results at 2:00 p.m., Pacific Time, on Thursday, February 16, 2023. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com.

#### Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Procore and its industry that involve substantial risks and uncertainties. All statements in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or future financial or operating performance, and may be identified by the use of 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 Procore's expectations, strategy, plans, or intentions.

Procore has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that Procore believes may affect its business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors that could cause results to differ materially from Procore's current expectations, including, but not limited to, our expectations regarding our financial performance, including revenues, expenses, and margins, and our ability to achieve or maintain future profitability, economic, and industry trends (in particular, the rate of adoption of construction management software and digitization of the construction industry, inflation, and challenging geopolitical conditions), our ability to attract new customers and retain and increase sales to existing customers, the performance of our corporate investments, our ability to expand internationally, our estimated total addressable market, and as set forth in Procore's filings with the Securities and Exchange Commission. You should not place undue reliance on Procore's forward-looking statements. Procore assumes no obligation to update any forward-looking statements to reflect events or circumstances that exist or change after the date on which they were made, except as required by law.

------

#### Non-GAAP Financial Measures
Procore believes that the use of certain non-GAAP financial measures as described below, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, and may assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. These non-GAAP financial measures are not prepared in accordance with U.S. generally accepted accounting principles, or GAAP.

**Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Loss from Operations, Non-GAAP Operating Margin, Non-GAAP Net Loss, and Non-GAAP Net Loss per Share: Procore defines these non-GAAP financial measures as the respective GAAP measures, excluding stock-based compensation expense, amortization of acquired intangible assets, employer payroll tax related to employee stock transactions, acquisition-related expenses, and the income tax effect of non-GAAP items. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by total revenue. Non-GAAP operating margin is the ratio calculated by dividing non-GAAP loss from operations by total revenue.** 

Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company's non-cash expenses, Procore believes that providing non-GAAP financial measures that exclude stock-based compensation expense allow for meaningful comparisons between its operating results from period to period. The expense related to amortization of acquired intangible assets is dependent upon estimates and assumptions, which can vary significantly and are unique to each asset acquired; therefore, Procore believes non-GAAP measures that adjust for the amortization of acquired intangible assets provide investors a consistent basis for comparison across accounting periods. The amount of employer payroll tax-related items on employee stock transactions is dependent on restricted stock unit settlements, option exercises, related stock price, and other factors that are beyond Procore's control and that do not correlate to the operation of the business. When evaluating the performance of its business and making operating plans, Procore does not consider these items (for example, when considering the impact of equity award grants, the company places a greater emphasis on overall stockholder dilution than the accounting charges associated with such grants). Additionally, acquisition-related expenses, such as transaction costs and retention payments, are expenses that are not necessarily reflective of operational performance during a period. Procore believes that the exclusion of acquisition-related expenses provides for a useful comparison of our operating results to prior periods and to its peer companies, which commonly exclude these expenses. Income tax benefits relate to the release of a portion of our valuation allowance as a result of deferred tax liabilities recorded related to prior year acquisitions that are available sources of income to realize our deferred tax assets. We exclude the income tax effect associated with our prior year acquisitions from certain of our non-GAAP financial measures because we believe that excluding this provides meaningful supplemental information regarding our operational performance. Overall, Procore believes it is useful to exclude these expenses in order to better understand the long-term performance of its core business and to facilitate comparison of its results period-over-period and to those of peer companies. All of these non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Procore's own operating results over different periods of time.

Non-GAAP financial measures may not provide information that is directly comparable to information provided by other companies in Procore's industry, as other companies in the industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on Procore's reported financial results. Further, stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in Procore's business and an important part of the compensation provided to its employees. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Procore's business.

**Free Cash Flow: Procore defines free cash flow as net cash provided by (used in) operating activities, less purchases of property and equipment and capitalized software development costs. Procore believes free cash flow is an important liquidity measure of the cash (if any) that is available, after our operating activities and capital expenditures. Procore uses free cash flow in conjunction with traditional GAAP measures to assess its liquidity and evaluate the effectiveness of its business strategies. Once Procore's business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.**

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#### About Procore
Procore is a leading global provider of construction management software. Over 1 million projects and more than $1 trillion USD in construction volume have run on Procore's platform. Procore's platform connects key project stakeholders to solutions Procore has built specifically for the construction industry—for the owner, the general contractor, and the specialty contractor. Procore's App Marketplace has a multitude of partner solutions that integrate seamlessly with Procore's platform, giving construction professionals the freedom to connect with what works best for them. Headquartered in Carpinteria, California, Procore has offices around the globe. Learn more at <u>Procore.com</u>.

#### Media Contact
Elizabeth Locke

press@procore.com

#### Investor Contact
Matthew Puljiz

ir@procore.com

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#### Procore Technologies, Inc.

#### Condensed Consolidated Statements of Operations
(unaudited)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31,** | **Three Months Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** |
| *(in thousands, except share and per share amounts)* | **2022** | **2021** | **2022** | **2021** |
| Revenue | $202053 | $146103 | $720203 | $514821 |
| Cost of revenue <sup>(1)(2)(3)(4)</sup> | 40570 | 29767 | 148416 | 98312 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross profit | 161483 | 116336 | 571787 | 416509 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales and marketing <sup>(1)(2)(3)(4)</sup> | 118170 | 84285 | 424976 | 308511 |
| &nbsp;&nbsp;&nbsp;&nbsp; Research and development <sup>(1)(2)(3)(4)</sup> | 75413 | 60671 | 270982 | 237290 |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative <sup>(1)(3)(4)</sup> | 43102 | 45830 | 166283 | 156635 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 236685 | 190786 | 862241 | 702436 |
| Loss from operations | (75202) | (74450) | (290454) | (285927) |
| Interest income | 4966 | 74 | 7861 | 175 |
| Interest expense | (499) | (568) | (2135) | (2328) |
| Other (expense) income, net | (692) | 37 | (1737) | (843) |
| Loss before (benefit from) provision for income taxes | (71427) | (74907) | (286465) | (288923) |
| &nbsp;&nbsp;&nbsp;&nbsp; (Benefit from) provision for income taxes | (243) | (23935) | 466 | (23758) |
| Net loss | $(71184) | $(50972) | $(286931) | $(265165) |
| Net loss per share attributable to common stockholders,<br> &nbsp;&nbsp;&nbsp;&nbsp;basic and diluted | $(0.51) | $(0.38) | $(2.10) | $(2.86) |
| Weighted-average shares used in computing net loss<br> &nbsp;&nbsp;&nbsp;&nbsp;per share attributable to common stockholders, basic<br> &nbsp;&nbsp;&nbsp;&nbsp;and diluted | 138415280 | 132892072 | 136525728 | 92673453 |

---

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(1) Includes stock-based compensation expense as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31,** | **Three Months Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Cost of revenue | $1914 | $1336 | $7253 | $8094 |
| Sales and marketing | 15046 | 11470 | 53397 | 68755 |
| Research and development | 19352 | 15413 | 63262 | 85040 |
| General and administrative | 10693 | 13013 | 38974 | 65272 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total stock-based compensation expense | $47005 | $41232 | $162886 | $227161 |

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(2) Includes amortization of acquired intangible assets as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31,** | **Three Months Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Cost of revenue | $5493 | $4264 | $22428 | $7522 |
| Sales and marketing | 3107 | 2251 | 12425 | 3600 |
| Research and development | 854 | 904 | 3528 | 2674 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total amortization of acquired intangible assets | $9454 | $7419 | $38381 | $13796 |

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(3) Includes employer payroll tax on employee stock transactions as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31,** | **Three Months Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Cost of revenue | $60 | $57 | $308 | $457 |
| Sales and marketing | 348 | 495 | 1955 | 2325 |
| Research and development | 286 | 398 | 2474 | 2606 |
| General and administrative | 171 | 242 | 1202 | 1127 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total employer payroll tax on employee stock <br> &nbsp;&nbsp;&nbsp;&nbsp;transactions | $865 | $1192 | $5939 | $6515 |

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(4) Includes acquisition-related expenses as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31,** | **Three Months Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Cost of revenue | $- | $2 | $- | $2 |
| Sales and marketing | 655 | 378 | 1725 | 488 |
| Research and development | 1679 | 906 | 5549 | 1348 |
| General and administrative | 6 | 4528 | 2128 | 7442 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total acquisition-related expenses | $2340 | $5814 | $9402 | $9280 |

---

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#### Procore Technologies, Inc.

#### Condensed Consolidated Balance Sheets
(unaudited)

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| *(in thousands)* | **2022** | **2021** |
| **Assets** |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $296712 | $586108 |
| &nbsp;&nbsp;&nbsp;&nbsp; Marketable securities | 285493 | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 148683 | 113977 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contract cost asset, current | 23600 | 17030 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 44731 | 35173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 799219 | 752288 |
| Capitalized software development costs, net | 58577 | 27062 |
| Property and equipment, net | 39193 | 36837 |
| Right of use assets - finance leases | 37026 | 39623 |
| Right of use assets - operating leases | 41934 | 44052 |
| Contract cost asset, non-current | 40477 | 25889 |
| Intangible assets, net | 162953 | 201977 |
| Goodwill | 539128 | 540922 |
| Other assets | 21903 | 22007 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $1740410 | $1690657 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $14282 | $15490 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 99182 | 65907 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue, current | 396535 | 301557 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other current liabilities | 21639 | 20750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 531638 | 403704 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue, non-current | 5278 | 4024 |
| &nbsp;&nbsp;&nbsp;&nbsp; Finance lease liabilities, non-current | 45578 | 47344 |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, non-current | 38087 | 41573 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other liabilities, non-current | 3049 | 4723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 623630 | 501368 |
| Stockholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common stock | 14 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 2068225 | 1852071 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (2316) | (583) |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (949143) | (662212) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | 1116780 | 1189289 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and stockholders' equity | $1740410 | $1690657 |

---

#### Remaining performance obligation:
The remaining performance obligation was $797.5 million as of December 31, 2022, approximately 70% of which is expected to be recognized as revenue within 12 months. The remaining performance obligation was $602.6 million as of December 31, 2021, approximately 70% of which was expected to be recognized as revenue within 12 months.

------

#### Procore Technologies, Inc.

#### Condensed Consolidated Statements of Cash Flows
(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31,** | **Three Months Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** |
| *(in thousands)* | **2022** | **2021** | **2022** | **2021** |
| **Operating activities** |  |  |  |  |
| Net loss | $(71184) | $(50972) | $(286931) | $(265165) |
| Adjustments to reconcile net loss to net cash provided by (used in)<br> &nbsp;&nbsp;&nbsp;&nbsp;operating activities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 47005 | 41232 | 162886 | 227161 |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 16586 | 13107 | 63039 | 36376 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accretion of discounts on marketable debt securities, net | (1359) | - | (2009) | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Abandonment of long-lived assets | 280 | - | 1344 | 554 |
| &nbsp;&nbsp;&nbsp;&nbsp; Noncash operating lease expense | 2611 | 1969 | 10170 | 7569 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized foreign currency (gain) loss, net | (1232) | (190) | (351) | 685 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | 67 | (24586) | (283) | (24493) |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for credit losses | 1247 | 532 | 2584 | 129 |
| &nbsp;&nbsp;&nbsp;&nbsp; Decrease (increase) in fair value of strategic investments | 519 | - | 483 | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities, net of effect of<br> &nbsp;&nbsp;&nbsp;&nbsp;business combinations |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (42196) | (37970) | (35817) | (34184) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred contract cost assets | (9385) | (3084) | (21974) | (10157) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other assets | 4456 | (9088) | (3754) | (16811) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | (1682) | 4082 | 459 | 3954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | 11559 | 9492 | 34623 | 38176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 67180 | 53950 | 97029 | 78671 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | (1780) | (2049) | (8890) | (5703) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | 22692 | (3575) | 12608 | 36730 |
| **Investing activities** |  |  |  |  |
| Purchases of property and equipment | (2112) | (3978) | (15782) | (12383) |
| Capitalized software development costs | (8865) | (5073) | (33648) | (15248) |
| Purchases of strategic investments | (306) | (850) | (3959) | (4300) |
| Purchases of marketable securities | (76128) | - | (369206) | - |
| Maturities of marketable securities | 85632 | - | 85632 | - |
| Originations of materials financing | (6739) | - | (23489) | - |
| Customer repayments of materials financing | 6688 | - | 18685 | - |
| Acquisition of businesses, net of cash acquired | - | (489847) | - | (509837) |
| Settlement of post-close working capital adjustments from business<br> &nbsp;&nbsp;&nbsp;&nbsp;combinations | - | - | 1291 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (1830) | (499748) | (340476) | (541768) |
| **Financing activities** |  |  |  |  |
| Proceeds from initial public offering | - | - | - | 665129 |
| Proceeds from stock option exercises | 3019 | 7773 | 22364 | 43086 |
| Proceeds from employee stock purchase plan | 10620 | 9475 | 22133 | 9475 |
| Payments of deferred offering costs | - | (34) | (270) | (3880) |
| Payments of deferred business acquisition consideration | (3870) | - | (3870) | (475) |
| Principal payments under finance lease agreements, net<br> &nbsp;&nbsp;&nbsp;&nbsp;of proceeds from lease incentives | (375) | (334) | (1705) | (1509) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | 9394 | 16880 | 38652 | 711826 |
| Net increase (decrease) in cash, cash equivalents and restricted<br> &nbsp;&nbsp;&nbsp;&nbsp;cash | 30256 | (486443) | (289216) | 206788 |
| Effect of exchange rate changes on cash | 1834 | 211 | (180) | (829) |
| Cash, cash equivalents and restricted cash, beginning of period | 267726 | 1075444 | 589212 | 383253 |
| Cash, cash equivalents and restricted cash, end of period | $299816 | $589212 | $299816 | $589212 |

---

------

#### Procore Technologies, Inc.

#### Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)

#### Reconciliation of gross profit and gross margin to non-GAAP gross profit and non-GAAP gross margin:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31,** | **Three Months Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Revenue | $202053 | $146103 | $720203 | $514821 |
| Gross profit | 161483 | 116336 | 571787 | 416509 |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 1914 | 1336 | 7253 | 8094 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of acquired technology intangible assets | 5493 | 4264 | 22428 | 7522 |
| &nbsp;&nbsp;&nbsp;&nbsp; Employer payroll tax on employee stock transactions | 60 | 57 | 308 | 457 |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition-related expenses | - | 2 | - | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP gross profit | $168950 | $121995 | $601776 | $432584 |
| Gross margin | 80% | 80% | 79% | 81% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP gross margin | 84% | 83% | 84% | 84% |

---

#### Reconciliation of operating expenses to non-GAAP operating expenses:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31,** | **Three Months Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Revenue | $202053 | $146103 | $720203 | $514821 |
| GAAP sales and marketing | 118170 | 84285 | 424976 | 308511 |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | (15046) | (11470) | (53397) | (68755) |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of acquired intangible assets | (3107) | (2251) | (12425) | (3600) |
| &nbsp;&nbsp;&nbsp;&nbsp; Employer payroll tax on employee stock transactions | (348) | (495) | (1955) | (2325) |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition-related expenses | (655) | (378) | (1725) | (488) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP sales and marketing | $99014 | $69691 | $355474 | $233343 |
| GAAP sales and marketing as a percentage of revenue | 58% | 58% | 59% | 60% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP sales and marketing as a percentage of<br> &nbsp;&nbsp;&nbsp;&nbsp;revenue | 49% | 48% | 49% | 45% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| GAAP research and development | 75413 | 60671 | 270982 | 237290 |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | (19352) | (15413) | (63262) | (85040) |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of acquired intangible assets | (854) | (904) | (3528) | (2674) |
| &nbsp;&nbsp;&nbsp;&nbsp; Employer payroll tax on employee stock transactions | (286) | (398) | (2474) | (2606) |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition-related expenses | (1679) | (906) | (5549) | (1348) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP research and development | $53242 | $43050 | $196169 | $145622 |
| GAAP research and development as a percentage of <br> &nbsp;&nbsp;&nbsp;&nbsp;revenue | 37% | 42% | 38% | 46% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP research and development as a <br> &nbsp;&nbsp;&nbsp;&nbsp;percentage of revenue | 26% | 29% | 27% | 28% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| GAAP general and administrative | 43102 | 45830 | 166283 | 156635 |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | (10693) | (13013) | (38974) | (65272) |
| &nbsp;&nbsp;&nbsp;&nbsp; Employer payroll tax on employee stock transactions | (171) | (242) | (1202) | (1127) |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition-related expenses | (6) | (4528) | (2128) | (7442) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP general and administrative | $32232 | $28047 | $123979 | $82794 |
| GAAP general and administrative as a percentage of <br> &nbsp;&nbsp;&nbsp;&nbsp;revenue | 21% | 31% | 23% | 30% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP general and administrative as a<br> &nbsp;&nbsp;&nbsp;&nbsp;percentage of revenue | 16% | 19% | 17% | 16% |

---

------

#### Reconciliation of loss from operations and operating margin to non-GAAP loss from operations and non-GAAP operating margin:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31,** | **Three Months Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Revenue | $202053 | $146103 | $720203 | $514821 |
| Loss from operations | (75202) | (74450) | (290454) | (285927) |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 47005 | 41232 | 162886 | 227161 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of acquired intangible assets | 9454 | 7419 | 38381 | 13796 |
| &nbsp;&nbsp;&nbsp;&nbsp; Employer payroll tax on employee stock transactions | 865 | 1192 | 5939 | 6515 |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition-related expenses | 2340 | 5814 | 9402 | 9280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP loss from operations | $(15538) | $(18793) | $(73846) | $(29175) |
| Operating margin | (37%) | (51%) | (40%) | (56%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP operating margin | (8%) | (13%) | (10%) | (6%) |

---

#### Reconciliation of net loss and net loss per share to non-GAAP net loss and non-GAAP net loss per share:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31,** | **Three Months Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Revenue | $202053 | $146103 | $720203 | $514821 |
| Net loss | (71184) | (50972) | (286931) | (265165) |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 47005 | 41232 | 162886 | 227161 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of acquired intangible assets | 9454 | 7419 | 38381 | 13796 |
| &nbsp;&nbsp;&nbsp;&nbsp; Employer payroll tax on employee stock transactions | 865 | 1192 | 5939 | 6515 |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition-related expenses | 2340 | 5814 | 9402 | 9280 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax effect of non-GAAP items | - | (24151) | 62 | (24151) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP net loss | $(11520) | $(19466) | $(70261) | $(32564) |
| **Numerator:** |  |  |  |  |
| Non-GAAP net loss | $(11520) | $(19466) | $(70261) | $(32564) |
| **Denominator:** |  |  |  |  |
| Weighted-average shares used in computing net loss per<br> &nbsp;&nbsp;&nbsp;&nbsp;share attributable to common stockholders, basic and<br> &nbsp;&nbsp;&nbsp;&nbsp;diluted | 138415280 | 132892072 | 136525728 | 92673453 |
| GAAP net loss per share, basic and diluted | $(0.51) | $(0.38) | $(2.10) | $(2.86) |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP net loss per share, basic and diluted | $(0.08) | $(0.15) | $(0.51) | $(0.35) |

---

#### Computation of free cash flow:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br> **December 31,** | **Three Months Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Net cash provided by (used in) operating activities | $22692 | $(3575) | $12608 | $36730 |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchases of property and equipment | (2112) | (3978) | (15782) | (12383) |
| &nbsp;&nbsp;&nbsp;&nbsp; Capitalized software development costs | (8865) | (5073) | (33648) | (15248) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-GAAP free cash flow | $11715 | $(12626) | $(36822) | $9099 |

---