Procore posts loss in first post-IPO quarter
In its first earnings report since going public, Procore Technologies, a Carpinteria-based software company for the construction industry, delivered record revenue growth, but rising operating costs hurt overall earnings.
Revenue rose 27.7% for the quarter ended June 30, the company reported on Aug. 5. Procore generated $122.8 million, up from $96.5 million in the same quarter a year ago.
But operating expenses jumped nearly 200%, as the company spent $246.3 million in the second quarter, resulting in a net loss of $149.7 million, or $2.04 per share.
That is a much bigger loss than Procore had in the same quarter last year, when when it lost $13.7 million, or 50 cents per share.
Preparations for the May IPO contributed to the rise in expenses, Procore CFO Paul Lyandres said during the company’s Aug. 5 earnings call.
“We are in the early days of transforming this industry, and do not intend to slow down our investments in existing and new products, nor deepening the robustness of our platform as we look to further drive innovation,” Lyandres said.
The company said it added 481 new customers in the second quarter, for a total of 11,149 customers.
Procore closed the trading day Aug. 5 down about 3%. The company released its earnings report after the markets closed and shares were down another 1.1% after hours, with the stock price hovering around $97 a share.
Procore went public on May 24, selling 10.41 million shares at $67 per share and raising $665.1 million. The stock jumped 34% on its first day of trading and since then has gone as high as $105.94.
