小蓝视频色情网页版

Construction management software provider has put off its plans to go public in favor of raising more funding, sources close to the matter say.

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Bloomberg on the news yesterday, which I confirmed with people who have firsthand knowledge of the decision this morning.

In late February, I covered how Procore had filed an with the . The company outlined its plans, which we previewed here, last September for an initial public offering of its common stock.

But presumably in light of the unexpected economic downturn that has resulted from the COVID-19 crisis, the Southern California-based company has had a change of heart.

People familiar with the decision said that Procore has closed on more than $150 million in funding at a valuation of about $5 billion. New investors in the round include D1 Capital Partners, the investment firm run by Dan Sundheim, according to Bloomberg, which also reported that 鈥淧rocore could still go public this year if markets stabilize.鈥�

The numbers

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 小蓝视频色情网页版 data.

Other previous backers include 听补苍诲

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.

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 acknowledged a couple of things. Notably, it admitted 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 acknowledged 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, although now we may be seeing less IPOs and more M&As.

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