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Procore has been used in more than 1 million projects, helping manage over $1 trillion in construction budgets. The company first filed an IPO with the SEC in February 2020, but the COVID-19 pandemic delayed their plans. However, the IPO is now on the table again, after a new S-1/A filing in March 2021, with updates in April and May.
On Monday May 10, Procore announced that it would sell 9.47 million shares in its IPO, with a price range of $60-$65 per share. Based on this price range, the Procore IPO could raise between $568 and $616 million. The total share count will be 128,134,774, giving the company a simple valuation between $7.69 billion and $8.33 billion. When employee stock and other restricted stock units are considered, the total valuation climbs to $9.4 billion.
Procore has raised an additional $150 million in private capital since the IPO was postponed in 2020. Some of the main private investors have been D1 Capital Partners, Dragoneer, ICONIQ and Tiger Global. The company had previously received a $5 billion valuation, according to Bloomberg.
According to MarketWatch, Procore’s revenue increased by almost 40% between 2019 and 2020, from $236.0 million to $328.6 million. The company’s customer base grew by 19%, as construction firms seek technology to improve their profit margins. However, Procore has also been operating with losses: $83.1 million in 2019 and $99.2 million in 2020.
Procore Is Also Investing in Artificial Intelligence for Construction
On Thursday May 6, Procore announced the acquisition of INDUS.AI, a construction analytics company that focuses on artificial intelligence. Founded in 2017, INDUS.AI is used to monitor over 100 million square feet of construction sites per day, using computer vision to detect issues and notify them automatically. Their platform has been trained with machine learning, using databases with millions of construction images and videos.
According to INDUS.AI, 96% of the data generated by construction firms is never used. Their AI engine can analyze data from sources like project management software, drawings, BIM files, sensors and cameras. This information can be used by owners and contractors to make better decisions, improving safety and profits while making compliance easier. The data analyzed by INDUS.AI can also be used to optimize labor and equipment, or to resolve disputes when projects are delayed by external factors.
Procore has acquired many construction technology firms in recent years, expanding its services and the capabilities of its platform. This includes the acquisition of Avata Intelligence, another construction AI firm, in February 2020.