Procore Technologies, Inc. · NYSE:PCOR
Procore Technologies — Investor Day (November 2022)
113 slides from Procore Technologies's investor day presentation, Nov 9, 2022
Slide 1: 2022 Investor Day
2022 Investor Day New Orleans, LA | November 9, 2022
Slide 2: Agenda
Agenda Wednesday, November 9 | 9:00am - 1:00pm CST 9:00a - 9:05a Opening Remarks Matthew Puljiz - VP, FP&A & Investor Relations Vivian Wu - Senior Manager of Investor Relations 9:05a - 9:30a Procore’s Opportunity Tooey Courtemanche - Founder, President, & CEO 9:30a - 10:15a Business & Financial Evol
Slide 3: Disclaimer
Disclaimer Forward-Looking Statements This presentation 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 Technologies, Inc. (“Procore”) and its industry t
Slide 4: Procore's Opportunity
— INVESTOR DAY 2022 Procore’s Opportunity Tooey Courtemanche | Founder, President, & CEO
Slide 5: The Construction Industry Is Massive
The Construction Industry Is Massive … $11T 13% 7% 2.5Tft² $15T global construction of global GDP of global workforce est. square footage of est. global construction spend in 2020 in 2017 in 2017 new construction in the spend in 2030 next 40 years Source: Oxford Economics: Future of Construction (Se
Slide 6: And Has Continued to Grow
… And Has Continued to Grow Global Construction Spend (Indexed) Dot-Com Bubble Great Financial Crisis COVID-19 Index: 1995 = 100 (8 months) (18 months) (2 months) Jun 1998: Feb 2009: ~$217B ~$48B1 transportation ARRA bill Nov 2021: bill ~$1.2T infrastructure bill Total Construction Spend Note: Globa
Slide 7: Construction Is Not a Monolith
Procore Focus Areas Construction Is Not a Monolith Commercial Infrastructure Multi-Family / Mixed-Use Residential U.S. Construction Spend (Indexed) Dot-Com Bubble Great Financial Crisis COVID-19 Index: 1993 = 100 (8 months) (18 months) (2 months) Jun 1998: Feb 2009: ~$217B ~$48B1 transportation ARRA
Slide 8: GCs & SCs Manage Diverse Portfolios
GCs & SCs Manage Diverse Portfolios U.S. General Contractor Electrical Specialty Contractor Multinational Based in the Northeast in Western Canada Fortune 500 Retail Owner Historic building renovation for a Outdoor university stadium with Ground-up construction of new hospital campus 1,800 capacity
Slide 9: End Demand > Industry Supply
End Demand > Industry Supply U.S. Construction Spend vs. U.S. Construction Employment Dot-Com Bubble Great Financial Crisis COVID-19 Index: 1993 = 100 (8 months) (18 months) (2 months) Supply gap widening, partially attributed to technology advancement U.S. Construction Spend U.S. Construction Emplo
Slide 10: Construction Is Highly Complex & Dynamic
Construction Is Highly Complex & Dynamic Residential Custom / Prototype Business Architect Owner Financier Multi-Family Mobile / Decentralized Workforce Engineer Complex Stakeholder Dynamics Retail General Insurer Contractor Working Capital Constraints Commercial Slow Payment Speed Mechanical Concre
Slide 11: We Are Still in the Early Stages of Digitization
We Are Still in the Early Stages of Digitization Construction SECTORS INDUSTRY DIGITIZATION INDEX 11 Pharmaceuticals Communication & Warehousing Local Services Transportation Manufacturing Manufacturing Entertainment Information & Agriculture & & Recreation Basic Goods Chemicals & Professional Gover
Slide 12: Lack of Digitization Has Led to Inefficiencies
Lack of Digitization Has Led to Inefficiencies $500B+ 35% 20 mo. 80% 47% cost of rework spent time construction avg. delay beyond avg. budget overrun of global CO2 emissions globally in 2018, professionals spend on original schedule for a typical large generated by buildings and 52% of which was non
Slide 13: Catalysts Driving Construction to Digitize
Catalysts Driving Construction to Digitize Widespread Mobile of construction workers surveyed use a Accessibility ~91% smartphone every day1 Labor Shortage Necessitates ~375K unfilled U.S. construction jobs2 Increased Productivity additional workers needed on top of normal ~650K pace of hiring in 20
Slide 14: It All Starts With Our Mission & Vision
It All Starts With Our Mission & Vision OUR MISSION + VISION Improve the lives of everyone in construction Connect everyone in construction on a global platform 14
Slide 15: Business Model Designed for the Industry
Business Model Designed for the Industry VOLUME-BASED UNLIMITED USER MODEL SUBSCRIPTION PRICING ＋ Subscription basis for a fixed fee with pricing based on: ＋ No per-seat or per-user fee, so customers can invite all ＋ Number and mix of products project participants to our platform ＋ Annual constructi
Slide 16: The Construction Management Platform
The Construction Management Platform 16
Slide 17: Change Orders Illustrate the Need for Connectivity
Change Orders Illustrate the Need for Connectivity STOP PROGRESS IN THE FIELD GO Make Owner Decision Draft Create Review Revise Release SC General GC Bills Request for Request Change Budget & to Work on Contractor Information for Quote Order Schedule Change Owner Revise Budget & Specialty Identify P
Slide 18: Connecting Everyone on a Single Platform
Connecting Everyone on a Single Platform Prequalification Bid Management Estimating Project Management Design Coordination Quality & Safety BIM Field Productivity Workforce Planning Project Financials Procore Pay (Coming in 2023) Invoice Management Accounting Integrations Construction Intelligence A
Slide 19: Open API
Accounting Analytics BIM Climate Tech CRM Devices Document Management APP MARKETPLACE Open API Drones Estimating & Takeoff access for customers and developers Facilities Field 400+ Management Communications App Marketplace integrations Field IT Productivity 95% of customers use at least one integrat
Slide 20: Our Commitment to the Industry
Our Commitment to the Industry Investing through advocacy, education, and technology Prepare The Future Advocate For Provide Free Donate Workforce Inclusion Construction Education Product + Services 97% 13K+ 100K+ 800+ of accredited construction WiC champions on-demand Continuing nonprofit builders,
Slide 21: Why Construction Chooses Procore
Why Construction Chooses Procore Construction Focus Easy Adoption We’re solely committed to this Our simple, mobile-enabled industry and the success experience will get your team of its people. up and running fast. Agility Open Platform Plan, improve, and measure success Build with confidence and un
Slide 22: Delivering Powerful Customer Value
Delivering Powerful Customer Value Improving the Lives of Everyone in Construction 75% of customers surveyed agree Procore helps reduce rework 90% 48% of customers agree Procore improves field-to-office communication average increase in 15 days construction volume managed per person saved on the ove
Slide 23: Best-In-Class Across the Board
Best-In-Class Across the Board TrustRadius 2022 #1 in Project 2022 Best Construction Top 100 Software 2022 Best Places to Top Rated Award Management Management Companies of 2022 Work in 2021 Software Source: TrustRadius | JBKnowledge | G2 | The Software Report | Glassdoor. 23
Slide 24: Procore's Evolution
Procore’s Evolution Early Years Today Single App Platform 1 Stakeholder 3 Stakeholders 2021 1 Country Expanded to ASEAN Global 2019 & MENA 2018 Expanded to LATAM Expanded to UK 2021 2019 Launched global ERP 2016 and Prior 2018 Announced Procore for Connector platform Focused on the Announced Procore
Slide 25: Business & Financial Evolution
— INVESTOR DAY 2022 Business & Financial Evolution Paul Lyandres | CFO
Slide 26: Business Evolution
Business Evolution Early Years Today Comprehensive Product & Tech Single App Platform Stakeholder 1 Stakeholder 3 Stakeholders Enterprise Customer Size Mid-Market Mid-Market SMB Geography 1 Country Global 26
Slide 27: Product & Technology Evolution
Product & Technology Evolution Single App Platform 2021 Launched global ERP Connector platform 2021 2019 Launched Procore 2018 Acquired Construction Network Launched Honest Buildings Field Productivity 2021 2020 Launched 2019 2018 Acquired Esticom Procore Estimating 2016 Launched Invoice Launched Sa
Slide 28: Our Platform Investments
2022 Product & Technology Resource Allocation Our Platform Investments… For every 1 resource on Project Management: 3x resources on Financial Management ~2x ~1x ~1x ~3x $500M+ Cumulative Non-GAAP R&D expense since 2017 8 Acquisitions over five years ~3x Note: All statistics as of September 30, 2022.
Slide 29: Have Evolved Our ARR Mix
… Have Evolved Our ARR Mix 80%+ Growth YoY in Invoice Management 17% of ARR from 50%+ Growth YoY Other in Analytics Other 15% Quality & Project 30%+ Growth YoY of ARR from Safety Management Quality & Safety 51% 30%+ Growth YoY of ARR from Project Management Project Financials 30%+ Growth YoY 16% of
Slide 30: Customers Adopting More Products
Customers Adopting More Products Customers with 4+ Products Represent 44% of Total Customers, Driving 70% of ARR Products per Customer 44% of 70% of customers ARR % of Customers % of Annual Recurring Revenue (ARR) Note: All statistics as of September 30, 2022. Percent of customers adopting products
Slide 31: Higher ARR via Additional Products
Higher ARR via Additional Products Assuming No Additional Volume, No New Logos, No New Countries… 12% of customers Potential to Increase Products per Customer Total Annual Recurring Revenue (ARR) by 50%+ By Moving Customers from 1-5 Products to 6+ Products % of Customers Note: All statistics as of S
Slide 32: Stakeholder Evolution
Stakeholder Evolution 1 Stakeholder 3 Stakeholders 2021 2019 Launched global ERP 2018 Announced Procore for Connector platform Announced Procore for Owners Specialty Contractors 2021 2019 Launched Procore 2018 Acquired Construction Network 2016 and Prior Launched Honest Buildings Serving General Fie
Slide 33: New Products Attract New Stakeholders
New Products Attract New Stakeholders General Contractors Specialty Contractors Owners Delivering projects on time Getting labor, equipment, and materials in Creating value across and on budget the right place at the right time a portfolio of investments Top 5 Pain Points Addressed by Procore Produc
Slide 34: GTM Investments in Stakeholders
GTM Investments in Stakeholders … Early Days Today 100% ~55% of Sales Team of Sales Team General Contractors Focused on Focused on General Contractors General Contractors ~20% Specialty Contractors of Sales Team Focused on Specialty Contractors ~25% Owners of Sales Team Focused on Owners Note: Repre
Slide 35: Have Evolved Our ARR Mix
… Have Evolved Our ARR Mix 3% of ARR from Other 22% Other ~40% Growth YoY of ARR from Owners Owners General Specialty Contractors 61% 30%+ Growth YoY ~40% Growth YoY 14% Contractors of ARR from General Contractors of ARR from Specialty Contractors Note: All statistics as of September 30, 2022. Growt
Slide 36: Connecting All Stakeholders in Construction
Connecting All Stakeholders in Construction GENERAL CONTRACTORS SPECIALTY CONTRACTORS OWNERS 36
Slide 37: GTM Investments Upmarket & Downmarket
GTM Investments Upmarket & Downmarket … Annual Construction Volume (ACV) Today ~30% Enterprise of Sales Team $100M+ Focused on Early Days Enterprise $100M 100% ~40% Mid-Market of Sales Team of Sales Team $20M - $100M Focused on Focused on Mid-Market Mid-Market $20M ~30% SMB of Sales Team $2.5M - $20
Slide 38: Have Evolved Our ARR Mix
… Have Evolved Our ARR Mix … 15% 35%+ Growth YoY of ARR from SMB Customers SMB (ACV: $2.5-20M) Enterprise (ACV: $100M+) Mid-Market 55% 30% (ACV: $20-100M) of ARR from 35%+ Growth YoY 35%+ Growth YoY of ARR from Enterprise Mid-Market Customers Customers Note: All statistics as of September 30, 2022.
Slide 39: And Expanded Large Customers
… And Expanded Large Customers 1,436 $100K+ ARR Customers 41 $1M+ ARR Customers Other Owners Owners Specialty Specialty General General Contractors Contractors Contractors Contractors Growing 40%+ YoY Growing 70%+ YoY Comprising ~10% of Total Customers Comprising <1% of Total Customers Note: All sta
Slide 40: Geographic Evolution
Geographic Evolution 1 Country Global 2021 Expanded to ASEAN 2019 & MENA 2018 Expanded to LATAM Expanded to UK 2021 2019 Launched global ERP 2016 and Prior 2018 Announced Procore for Connector platform Focused on the Announced Procore for Owners U.S. Specialty Contractors 2021 2019 Launched Procore
Slide 41: GTM Investments to Expand Internationally
GTM Investments to Expand Internationally … International Non-GAAP Sales & Marketing (S&M) Expense and Revenue (as % of Total) ion s Reg trie s& ip le C o u n 44%+ g to Mult Growth YoY in and i n 2022 YTD Exp on a constant currency basis1 Int’l S&M (as % of Total) Int’l Revenue (as % of Total) Note:
Slide 42: Have Evolved Our ARR Mix
… Have Evolved Our ARR Mix Canada Europe 85% 15% LATAM International U.S. ARR ARR SE Asia ANZ MENA Other 40%+ Growth YoY on a constant currency basis1 Note: All statistics as of September 30, 2022. ARR breakdown by geography excludes Levelset. See the appendix at the end of this presentation for def
Slide 43: Significant Market Opportunity
Significant Market Opportunity Pursuing a $9T+ Annual Construction Volume (ACV) Opportunity Region U.S. Europe APAC Canada LATAM MENA Primary Countries Served* Annual Construction $1.4T+ $1.1T+ $740B+ $180B+ $150B+ $150B+ Volume “Triple TAM” X 2.5 (GC + SC + Owner) (Majority of Spend Flows Through A
Slide 44: Early Innings of Market Penetration
Early Innings of Market Penetration <1% of Logos and <6% of Annual Construction Volume (ACV) Captured in Primary Countries Served Logo Capture Volume Capture U.S. GC Logo Capture Volume Capture Volume Capture: <25% <2% <14% <1% <2% U.S. TAM Volume: ~$3.6T+ International TAM Volume: ~$5.9T+ Note: Pen
Slide 45: New Logo vs. Expansion: Balanced Growth
New Logo vs. Expansion → Balanced Growth 2022 YTD Gross New ARR ~50% ~50% Expansion New Logo Note: All statistics as of September 30, 2022. Gross new ARR breakdown by new logo and expansion excludes Levelset. See the appendix at the end of this presentation for definition of ARR. 45
Slide 46: We Can Land-And-Expand With GCs
We Can Land-And-Expand With GCs … U.S. Enterprise General Contractor Based in the Midwest ~$3M ARR 55% CAGR Since Land +$850K Volume 9 total products expansion 4 to 9 Products in 4 Years +$910K Volume ~$3M expansion + Added Analytics, Prequalification & Premier Support +$75K +$450K Added Design ~$32
Slide 47: As Well As With Owners
… As Well As With Owners … Global Provider of Large-Scale Data Center Campuses +$540K 200% CAGR Since Land Volume expansion + Added ~$2M ARR Design Coordination, Bid 9 total products 1 to 9 Products in 3 Years Management, Training Center +$820K ~$2M Volume expansion + Added Analytics, Project Financ
Slide 48: Which Improves Retention Rates
… Which Improves Retention Rates NRR Headwind Strong expansion 2018: COVID momentum Introduction of “pooled” volume contracts Note: All statistics as of September 30, 2022. See the appendix at the end of this presentation for definition of retention rates. 48
Slide 49: Durable Revenue Model
Durable Revenue Model $715M Illustrative Annual Customer Contract: Total RPO as of Q3’22, ＋ Total Contract Value / ARR: $1M 70% of which is short-term ＋ 1-year annual contract Q1 Q2 Q3 Q4 TOTAL % of Volume Deployed 5% 10% 40% 45% 100% Revenue Recognized $250K $250K $250K $250K $1M 38% Illustrative M
Slide 50: cRPO More Accurate Than External Indicators
cRPO More Accurate Than External Indicators Index: Q1’20 = 100 Procore Revenue & cRPO vs. U.S. Construction Indicators (Indexed) Short-Term RPO Correlation to Revenue: r2 = 0.99 Median U.S. Construction Indicators Correlation to Revenue: r2 = 0.60 Revenue Short-Term RPO AIA ABI Dodge Momentum Dodge
Slide 51: Improving Unit Economics
U.S. ~11x LTV:CAC Improving ~9x Unit Economics LTV:CAC International ~4x LTV:CAC Note: We calculate the lifetime value of our customers and associated customer acquisition costs for a particular year by comparing (i) Non-GAAP gross margin for the year * (one divided by the churn rate) to (ii) Non-GA
Slide 52: Financial Trajectory
Financial Trajectory 2019-2020 COVID 2021 Recovery 2020-2021 Growth Acceleration Growth impact Revenue growth trough Additional “catch up” investments Margin expansion Investment “catch up” from COVID Levelset integration Revenue ($M) Revenue YoY Growth 6 pts revenue growth contribution from Levelse
Slide 53: Building Blocks of Value Creation
Building Blocks of Value Creation Customer Value Creation l i er FinTech u ltip wth m e M r o ol u A M o G V T L og ction ption w u o Ne onstr ct Ad ffects Shareholder Value Creation d C d u k E cs International a n P ro o r m i x p n d e t w n o Expansion E p a e N co E x t it E e ra U n n Ge rove
Slide 54: Our Next Evolution
— INVESTOR DAY 2022 Our Next Evolution Tooey Courtemanche | Founder, President, & CEO
Slide 55: Well-Positioned For the Next Evolution
Well-Positioned For the Next Evolution Today Future Comprehensive MORE DATA Connected Platform Platform 3 Stakeholders MORE USERS GREATER VALUE Payments FOR CUSTOMERS Enterprise Materials Mid-Market Financing SMB MORE PROJECTS MORE CUSTOMERS Global Insurance 55
Slide 56: Payments
Procore’s Unique Advantages Payments All-Inclusive, Integrated Platform (Coming in 2023) End-to-end platform capturing all information & documentation required to pay & get paid Problem Statement: Invoicing & Compliance Solutions Existing capabilities in invoicing & lien rights Creating & managing i
Slide 57: Materials Financing
Procore’s Unique Advantages Materials Financing (Recently Launched) Large, Captive Audience Huge audience of cash-strapped contractors across our customer and collaborator base Problem Statement: Mismatch in payment timing creates working capital constraints Data-Driven Underwriting Proprietary data
Slide 58: Insurance
Procore’s Unique Advantages Insurance (Future Opportunity) Distribution & Brand Trusted brand and relationships with 14K+ customers and millions of users Problem Statement: Insurance processes are still highly manual and time-consuming Risk Intelligence Data Industry data from software that is propr
Slide 59: Connected Platform Strategy
Connected Platform Strategy 59
Slide 60: Break
Break
Slide 61: Connected Platform
— INVESTOR DAY 2022 Connected Platform Wyatt Jenkins | SVP, Product
Slide 62: Connected Platform Strategy
Connected Platform Strategy Architects & General Specialty Material Owners Engineers Contractors Contractors Suppliers PROCORE CONSTRUCTION NETWORK Project Workforce Financial Preconstruction Execution Management Management PARTNER ECOSYSTEM Connected Workflows Through Integrations & Services CONSTR
Slide 63: Every Project Is Increasingly Complex & Unique
Every Project Is Increasingly Complex & Unique Residential Custom / Prototype Business Architect Owner Financier Multi-Family Mobile / Decentralized Workforce Engineer Complex Stakeholder Dynamics Retail General Insurer Contractor Working Capital Constraints Commercial Slow Payment Speed Mechanical
Slide 64: The Construction Value Chain
The Construction “Value Chain” Construction Project in Procore Models Photos Drawings Specifications Data Prime Sub Contract Contract Bids Bids Bid Bid General Specialty Owner Contractor Contractors Bid Bid Bid Bid Private Company Budget Project Budget Private Company Budget Private Company Budget 6
Slide 65: The Construction Value Chain
The Construction “Value Chain” Construction Project in Procore Models Photos Drawings Specifications Data Prime Sub Contract Contract Bids Bids General Specialty Owner Bid Bid Contractor Contractors Bid Bid Project Financials Project Management Project Management Project Financials Workforce Plannin
Slide 66: Construction Flywheel
Construction Flywheel Everything we do powers the construction flywheel Invite Collaborators Bidding Network Invoicing Design Coordination 66
Slide 67: Collaborator Conversion: Growing Your Business as a Specialty Contractor
Illustrative Customer Story Collaborator Conversion John Growing Your Business as a Superintendent | ECO Concrete Specialty Contractor The journey of a collaborator going from discovery to becoming a lifelong customer 67
Slide 68: Discovering the Procore Construction Network
Day 1 Specialty Contractor ECO Concrete Discovering the Procore Construction Network ECO Concrete discovers the Search by trade or business (e.g ‘Plumbing’ or ‘Concrete’) Clermont, FL List Your Business Login Procore Construction Network (PCN) Industrial Concrete SC Send Message COMMERCIAL RESIDENTI
Slide 69: Prequalifying Your Free Procore Account
Day 1 Specialty Contractor ECO Concrete Prequalifying Your Free Procore Account Home Projects Bid Board Directory ECO Concrete ECO Concrete uses their Procore account to complete their Become Procore Prequalified Prequalify Stand out from the rest by filling out an online from in 10 minutes or less
Slide 70: Unlocking the Power of Bid Board
Day 1 Specialty Contractor ECO Concrete Unlocking the Power of Bid Board ECO Concrete can respond to any bid from other Procore users Home Projects Bid Board Directory ECO Concrete They can also add and manage Bid Board any of their bids outside of Procore Invitations Submitted Archived Search Filte
Slide 71: More Bids from the Network
Day 4 Specialty Contractor ECO Concrete More Bids from the Network Now, ECO Concrete is searchable on Procore Vertigo Construction HMA Medical Center More companies are inviting the company to bid on work Invited to Bid Targeted bid from a company ECO has not Vertigo Construction has invited you to
Slide 72: Test Driving Automated Takeoff
Day 6 Specialty Contractor ECO Concrete Test Driving Automated Takeoff Procore contextually offers ECO Concrete a chance to try its new estimating tool Estimating, please wait... Step 3 / 16: Analyzing specifications Home Projects Bid Board Directory ECO Constructi ECO Concrete is eligible for Run i
Slide 73: The Upsell – In Just a Few Clicks
Day 6 Specialty Contractor ECO Concrete The Upsell – In Just a Few Clicks After trying Auto Take Off, ECO Concrete is impressed ECO Concrete buys Estimating Procore Estimating Faster takeoff, more accurate estimating, and more competitive bids. Buy Procore Estimating Upsell Features Bid Management P
Slide 74: Winning a Major Bid with Procore
Day 12 Specialty Contractor ECO Concrete Winning a Major Bid with Procore ECO Concrete accelerates their bidding process with Procore Vertigo Construction ECO Concrete wins a bid with HMA Medical Center HMA Medical Center Procore contextually promotes Levelset’s financial services Awarded Bid for Co
Slide 75: Connecting Drawings to Drive Work Forward
Day 14 Specialty Contractor ECO Concrete Connecting Drawings to Drive Work Forward Work kicks off on the HMA Project ECO Concrete uses Procore to Home Projects Medical Center Bid Board Directory Drawings ECO Concrete connect the project drawings to their Source Drawing Update account Issue of constr
Slide 76: Offering Drawing Features Everyone Needs
Day 14 Specialty Contractor ECO Concrete Offering Drawing Features Everyone Needs ECO Concrete needs a more robust markup tool Drawings Create Search Drawings RFI Procore offers a Markup option Downloaded Status Type Punch Item that allows everyone on the team Observation Sort by to see changes quic
Slide 77: Three Months Later… Procore Pay Speeds Up the Process
Day 60 Specialty Contractor ECO Concrete Three Months Later… Procore Pay Speeds Up the Process Once the HMA build is complete, it’s time to get paid Home Projects Bid Board Directory Drawings ECO Concrete Procore Wallet Transfer Money ECO Concrete submits an invoice Balance Transfer Money To Account
Slide 78: Targeting Specialty Contractors for Workforce Management
Day 60 Specialty Contractor ECO Concrete Targeting Specialty Contractors for Workforce Management Data on ECO Concrete’s bid volume and activity helps Procore More smart recommendations - like Workforce Management - can be made throughout the experience All of the recommendations are contextual – an
Slide 79: Benefits To Our Customer Stakeholders
Benefits To Our Customer Stakeholders Owners General Contractors Specialty Contractors MICHAEL TURNER | Oxford Properties Group JIM RUBEL | Summit Design + Build NORMA GOMEZ | Dolan Concrete Creating value across a portfolio Delivering projects on time and Getting labor, equipment, and materials of
Slide 80: Deep Dive: Specialty Contractors
— INVESTOR DAY 2022 Deep Dive: Specialty Contractors Will Lehrmann | VP, Product
Slide 81: Specialty Contractor Market
Specialty Contractor Market Specialty contractors are the “backbone” for the industry (e.g., electrical, plumbing, concrete) Specialty contractors make up the majority of the companies and workforce in construction Specialty contractors are responsible for labor, equipment, materials, and project ex
Slide 82: Industry Challenges
Managing process & systems change Industry Challenges Tighter timelines & increased complexity Decrease in ~650K DIGITAL TRANSFORMATION productivity additional workers needed on top of Leading to higher PROJECT normal pace of hiring in material costs COMPLEXITY 2022 to meet demand1 LABOR SHORTAGE SU
Slide 83: Predictability & Profitability from Day One
— TOP PRIORITIES FOR SPECIALTY CONTRACTORS Predictability & Profitability from Day One + Project pursuit & winning work + Streamline takeoff & estimating + Build accurate estimates + Free up time & win more bids + Forecast labor & material needs + Seamlessly transition to Project Execution “Without
Slide 84: Project Execution & Empowering the Field
— TOP PRIORITIES FOR SPECIALTY CONTRACTORS Project Execution & Empowering the Field + Get the right information to the field + Ensure quality construction + Simplify daily reporting & jobsite tracking + Manage project change + Optimize labor productivity “There is no roaming the jobsite in search of
Slide 85: Managing the Workforce & Labor Productivity
— TOP PRIORITIES FOR SPECIALTY CONTRACTORS Managing the Workforce & Labor Productivity + Jobsite safety + Labor scheduling & allocation + Tracking labor productivity & costs + Effective communication with the workforce “With just the Timesheets Tool alone, I'm able to save 6 different project manage
Slide 86: Financial Oversight & Profitability
— TOP PRIORITIES FOR SPECIALTY CONTRACTORS Financial Oversight & Profitability + Gain financial visibility + Control project budgets + Identify financial insights & risks + Ensure project profitability + Seamless financial data flow “The data that we're getting now makes us so much more dangerous, e
Slide 87: Specialty Contractors Are Important for Our Mission & Vision
Specialty Contractors Are Important for Our Mission & Vision OUR MISSION + VISION Improve the lives of everyone in construction Connect everyone in construction on a global platform 87
Slide 88: Construction Flywheel
Construction Flywheel Procore is well-positioned to grow with Specialty Contractors Invite Collaborators Bidding Network Invoicing Design Coordination 88
Slide 89: Built on a Single, Connected Platform
Built on a Single, Connected Platform 89
Slide 90: Monterey Mechanical Leverages Construction Tech to Attract and Retain Top Talent
CASE STUDY Monterey Mechanical Leverages Construction Tech to Attract and Retain Top Talent CHALLENGE SOLUTION Monterey Mechanical used a software solution to Procore offered a centralized platform that was manage projects but it didn’t offer mobile functionality accessible to all collaborators—from
Slide 91: DCO Commercial Floors Nearly Doubles Growth With Construction Management Platform
CASE STUDY DCO Commercial Floors Nearly Doubles Growth With Construction Management Platform CHALLENGE SOLUTION DCO Commercial Floors was growing rapidly and Procore offered a single platform for all project needed to streamline its tech stack in order to information. Plus, with an unlimited user li
Slide 92: MEP Contractor Humphrey & Associates Discovers Procore
CASE STUDY MEP Contractor Humphrey & Associates Discovers Procore Is Not Just a Tool for General Contractors Humphrey & Associates collaborated with project teams through their client’s Procore accounts. They liked the convenience and easy-to-use tools that automate processes such as RFIs and submit
Slide 93: Deep Dive: Owners
— INVESTOR DAY 2022 Deep Dive: Owners Geoff Lewis | VP, Product
Slide 94: Every Project Begins With An Owner
Every Project Begins With An Owner Residential Architect Owner Financier Multi-Family Engineer Retail General Insurer Contractor Commercial Institutional Mechanical Concrete Electrical Contractor Contractor Contractor Material Equipment Industrial Supplier Supplier Plumbing Finishing Site Prep Contr
Slide 95: Top Challenges for Owners
Top Challenges for Owners 1 1 Finishing projects on budget 2 2 Finishing projects on time 3 Ensuring projects are done with high 3 quality 4 Collecting information from other parties (GCs, architects) 4 5 Managing these tasks at scale, typically across many different regions 5 95
Slide 96: Owners have not been well-served by technology
Owners have not been well-served by technology. 96 96
Slide 97: Different Owners Have Different Needs
Different Owners Have Different Needs Low Need for Construction Management Software High “One-Off” Owners Owners Managing Large-Scale Construction Volumes ＋ Low need for software ＋ High need for robust, comprehensive software ＋ Typically smaller in ＋ Typically upmarket size ＋ Ranges from commercial
Slide 98: Procore Is Used by Owners of All Types
Procore Is Used by Owners of All Types COMMERCIAL CORPORATIONS & INDUSTRIAL & PUBLIC REAL ESTATE HEALTHCARE ENERGY SECTOR 98
Slide 99: Owners Enhance Network Effects
Owners Enhance Network Effects … OWNER DECIDES TO OWNER MANDATES BUY PROCORE PROCORE TO THE GC PROCORE OWNER FLYWHEEL GC INVITES OTHER OWNERS TO COLLABORATE IN GC USES PROCORE PROCORE 99
Slide 100: Which Drive Key Advantages for Procore
… Which Drive Key Advantages for Procore OWNER OWNER MANDATES DECIDES TO PROCORE TO THE GC BUY PROCORE GC INVITES OTHER GC USES OWNERS TO PROCORE COLLABORATE IN PROCORE STICKY CONNECTED COMPETITIVE PLATFORM ECOSYSTEM MOAT 100
Slide 101: Boston Children's Hospital Uses Procore to Reduce Risk and Increase Success
CASE STUDY Boston Children’s Hospital Uses Procore to Reduce Risk and Increase Success in Capital Project Delivery CHALLENGE SOLUTION BCH’s ten year, $3B expansion plan was at risk due to Procore organized, digitized, and standardized every manual processes, non-integrated project data, and facet of
Slide 102: ENGIE North America Uses Procore as It Transforms
CASE STUDY ENGIE North America Uses Procore as It Transforms to a New Business Centered Around Renewables CHALLENGE SOLUTION ENGIE NA has gone through a business transformation Implemented Procore to standardize the way all to become a renewable energy business and needed projects were run, includin
Slide 103: Whole Foods Speeds Up Renovation of Stores During COVID-19
CASE STUDY Whole Foods Speeds Up Renovation of Stores During COVID-19 CHALLENGE SOLUTION During the Pandemic, Whole Foods needed to Standardize on Procore for a consistent construction renovate and modernize its store experience across experience, no matter what construction needs to be all of its l
Slide 104: Procore Enables Owners to Scale, Collaborate, and Own Their Data
— PROCORE FOR OWNERS Procore Enables Owners to Scale, Collaborate, and Own Their Data in a Single Platform + Seamless collaboration in one platform + Data management across projects + Insights to improve decision making + Technology built for scale + Easy implementation & use 74% 45% 65% of Owners s
Slide 105: Executive Q&A
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Slide 106: Thank You
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Slide 107: Appendix
— INVESTOR DAY 2022 Appendix PROCORE
Slide 108: References and Definitions
References and Definitions CUSTOMERS We define the number of customers at the end of a particular period as the number of entities that have entered into one or more subscriptions with us that have recurring charges for which the term has not ended, or that which we are negotiating a subscription re
Slide 109: References and Definitions (Cont.)
References and Definitions (Cont.) TOTAL ADDRESSABLE MARKET (TAM) AND CAPTURE RATES ACV and logo estimates by region are calculated by Procore based on data from the U.S. Census Bureau and international government statistics agencies, Oxford Economics estimates, and D&B Hoovers data. ACV capture rat
Slide 110: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (dollars in thousands) FY18 FY19 FY20 FY21 Q1'22 Q2'22 Q3'22 Revenue $ 186,396 $ 289,194 $ 400,291 $ 514,821 $ 159,516 $ 172,205 $ 186,429 Reconciliation of gross profit and gross margin to non-GAAP gross profit and non-GAAP gross margin: GAAP gross profit $ 148,995 $
Slide 111: GAAP to Non-GAAP Reconciliation (Cont.)
GAAP to Non-GAAP Reconciliation (Cont.) (dollars in thousands) FY18 FY19 FY20 FY21 Q1'22 Q2'22 Q3'22 GAAP research and development $ 55,950 $ 87,022 $ 124,661 $ 237,290 $ 60,254 $ 63,822 $ 71,493 Stock-based compensation expense (2,380) (6,584) (12,930) (85,040) (13,008) (13,144) (17,758) Amortizati
Slide 112: Free Cash Flow Bridge
Free Cash Flow Bridge (dollars in thousands) FY18 FY19 FY20 FY21 Q1'22 Q2'22 Q3'22 Revenue $ 186,396 $ 289,194 $ 400,291 $ 514,821 $ 159,516 $ 172,205 $ 186,429 Computation of free cash flow and free cash flow margin: Net cash (used in) provided by operating activities $ (21,103) $ (7,004) $ 21,853
Slide 113: PROGCORE
PROGCORE