SA国际传媒

Late Friday afternoon, construction management software provider filed an with the . The company outlined its plans, which we previewed here, last September for an initial public offering of its common stock.

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Southern California-based Procore said it has yet to determine neither the number of shares it plans to offer nor the price range. But it did list a proposed maximum offering price of $100 million. It also noted that it will list its common stock on the under the ticker symbol 鈥淧COR.鈥�

and J.P. Morgan Securities LLC are serving as joint lead book-running managers for the proposed offering.

Last September, we reported that an IPO could value 17-year-old Procore at more than $4 billion, according to , which cited 鈥減eople with knowledge of the matter.鈥� In December, we covered how the company had tripled its valuation to nearly $3 billion after raising a $75 million Series H from . That was up from a $1 billion valuation just two years prior when Procore raised $50 million in a round from . Since it was founded in 2003, Procore has , according to SA国际传媒 data.

Other previous backers include 听补苍诲

Last August, I reported on Procore acquiring its third startup in 12 months as part of its plan to broaden its offerings through mergers and acquisitions.

The numbers

Procore, which operates as a SaaS company, has seen impressive growth in recent years. As of August 2019, it had more than 1,800 employees, up 600 compared to a year ago, across 13 offices globally. Procore saw its annual recurring revenue surge from under $10 million in 2014 last August.聽

Last year, I talked with Procore Founder and CEO by phone about the company鈥檚 M&A strategy, and he told me then that was 鈥渏ust the beginning.鈥�

In its S-1, Procore shed more light on its financials. It revealed both increased revenue and net loss in 2019.聽 Specifically, the company鈥檚 revenue surged 55 percent in 2019 to $289.2 million compared with $186.4 million in 2018. At the same time, its net loss was up by 46.5 percent to $83.1 million in 2019 compared to $56.7 million in 2018.

Also, Procore revealed it had an accumulated deficit of $300.8 million at the end of last year.

Meanwhile, customer count nearly doubled from 4,310 at the end of 2017 to 8,506 at the end of 2019. It also has more than 1.3 million users.

Elusive profitability

Like other SaaS operators, Procore sells its products on a subscription basis for a fixed fee with pricing generally based on the number and mix of products and the annual construction volume contracted to run on its platform. As its customers subscribe to additional products, or increase the annual construction volume contracted to run on Procore鈥檚 platform, the company generates more revenue.

In citing its risk factors, Procore acknowledges a couple of things. Notably, it admits 鈥渢o a history of losses,鈥� and that it 鈥渕ay not be able to achieve or sustain profitability in the future.鈥� It also acknowledges that its business may be 鈥渟ignificantly impacted鈥� by changes in the 鈥渞elated reductions in spend across the construction industry.鈥� No doubt that a downturn resulting in a slowdown in development would be harmful to Procore鈥檚 business.

As we鈥檝e reported extensively, construction tech is one of those spaces that has not been considered traditionally sexy. It is, however, an industry that is growing both in terms of the number of companies receiving funding in the space and in terms of more mainstream investor interest. It鈥檚 also seeing more exits, as evidenced by this latest news.

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