Procore technologies inc has announced an IPO date.
The first information that the company is going to have an IPO appeared in 2021 on February 28. In December 2018, the company was valued at $3 billion. In September 2019, Bloomberg reported that Procore could be valued at $4 billion at the IPO. To date, the capitalization at the IPO is $8 billion.
Procore Technologies is a leading provider of cloud-based construction management software that is helping transform one of the oldest, largest and least digitized industries in the world.
Procore Technologies focuses exclusively on building, connecting and empowering key industry stakeholders, such as owners, general contractors, specialty contractors, architects and engineers, to work together from anywhere, on any Internet-connected device.
Procore Technologies’ platform modernizes and digitizes construction management by providing real-time access to critical project information, simplifying complex workflows and facilitating seamless communication among key stakeholders, which Procore Technologies believes enables them to serve as a system of record for construction and industry.
Implementing the Procore Technologies platform helps customers increase productivity and efficiency, reduce rework and costly delays, improve security and compliance, and increase financial transparency and accountability.
- Procore Bid Management organizes the complex bid process, from bid package creation to bid award, allowing clients to track and evaluate the significant volume of bids that are typically submitted to work on a particular construction project.
- Procore Project Management gives every team member on a construction project real-time access to the information they need from a single, accurate, up-to-date source. Project Management centralizes and facilitates collaboration on schedules, specifications, submittals, drawings, RFIs, and pending tasks.
- Procore Quality & Safety allows field teams to continuously record, monitor, evaluate and improve procedures to maximize compliance with safety rules and quality specifications.
- Procore Design Coordination helps users identify and resolve structural and system plan conflicts in the building prior to construction, thereby reducing the need for change orders during construction.
- Procore Field Productivity allows specialized contractors to track hours worked and quantities set in real time so they can make daily decisions that help keep projects on schedule and on budget while maximizing profitability.
- Procore Capital Planning allows owners to track, analyze and forecast their entire portfolio budgets with a focus on long-term planning.
- Procore Portfolio Financials is specifically designed for owners, allowing these stakeholders to track and approve expenses for their construction portfolio.
- Procore Analytics gives clients a deeper understanding of the data combined across all projects, various products and integrated accounting software.
About the IPO
- Trade date: 20.05.2021
- Price range: $60-65
- Shares On offer: 9,500,000
- Total shares: 143,000,000
- Deal size: $592 million
- Market capitalization at IPO: $8.9 billion
- Company value at IPO: $8 bln
- Revenue forecast: + 42%
Comments from our company
Procore hopes to secure finances in the public capital market to continue expansion in the resilient construction industry.
The company’s financial figures show rapid growth in revenue and gross profit.
Marketing and sales expenses, remain relatively stable; the net retention rate is above 100%, which is a good sign.
In addition, Procore incurs large and increasing operating and net costs, while the cash flow involved in the core business remains negative.
The market opportunity for a company that provides database management services to companies in the construction industry is still impressive, although the industry is notoriously resistant to change. This means that sales and marketing activities will be costly for Procore.
Overall, the company looks good as an IPO candidate, although some of its metrics need improvement.
The main underwriters of the IPO are: Goldman Sachs, J.P. Morgan, Barclays, Jefferies, Canaccord Genuity, KeyBanc Capital Markets, Oppenheimer & Co.