      cloudedjudgement.substack.com · 2021-03-08
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Clouded Judgement: Procore S-1 Benchmarking Analysis

This article provides a detailed financial analysis of Procore's S-1 filing, benchmarking the construction software company's key metrics against public SaaS peers. Key findings include 38% YoY revenue growth, exceptional 82% gross margins, 29-month CAC payback, and a Rule of 40 score of 39%, though the company faced net revenue retention headwinds from COVID-19 impact on customer construction volumes.

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Metrics in this report

Average Contract Value

43thousands

average

Procore across 10,166 customers

CAC Payback Period

29months

average

Procore four quarters preceding IPO

Gross Margin

82percent

average

Procore LTM GAAP

LTM Revenue

400millions

average

Procore at IPO filing

Net Revenue Retention

113percent

average

Procore 2020 (declined from 121% in 2018, 117% in 2019 due to COVID)

Operating Margin

-15percent

average

Procore LTM GAAP

Procore Addressable Market Opportunity

9.4billions

estimate

Procore's current product categories across target geographies

Revenue Growth Rate (YoY)

38percent

average

Procore LTM trailing twelve months

Rule of 40 Score

39percent

average

Procore LTM revenue growth plus LTM FCF margin

Total Addressable Market

10.4billions

estimate

Global construction industry annual application software spending