Procore, the construction management software company, has been rumored to be interested in filing for an IPO since at least 2019. In the Spring of 2020, Procore ended up delaying its plans to go public after it received $150 million in funding and a valuation of around $5 billion, citing interest in raising more money amidst an uncertain economy during the heart of the coronavirus pandemic.
That turned out to be a pretty good move for the company, as Procore officially went public on May 20, raising $634.5 million on a $8.5 billion evaluation. As of the close of the NYSE on May 25, Procore’s (NYSE: PCOR) stood around $82 per share.
“Procore’s IPO is a significant moment in our journey. Even though I founded Procore nearly twenty years ago, it feels like we're just getting started. The construction industry is in the early stages of massive digital transformation. We are proud to be at the forefront of this shift, partnering with the industry that builds the world around us,” Procore Founder & CEO Tooey Courtemanche said in a statement following the announcement.
courtesy of Procore
Despite some continued uncertainty surrounding recent IPOs, Procore’s has been regarded as successful one. Reuters stated that strong debuts from both Procore and Oatly Group AB helped to “ease investor concerns.”
The Motley Fool broke down the numbers behind Procore’s current business standing. The software company currently has over 1.6 million users globally spread across 10,000 business customers. Over the past 3 years, Procore has seen a 256% increase in revenue, amassing $400 million in 2020 alone.
Even at a revenue of that size and an 82% gross margin, Motley says, Procore is still unprofitable as it spent 78% of it’s revenue last year to help grow its customer base through sales, marketing, research, and development.
To check out highlights of Procore at its NYSE debut, check out the video below:
Shane is the creator of Construction Junkie and an active construction project manager. In his career, he has managed interior remodel projects, site development, construction safety, governmental project compliance, and facility maintenance. He has a strong passion for construction technology and safety, as well as sharing the knowledge or insights he has gained throughout his career.