Businessmodel of Procore

Customer Segments

Procore provides a broad range of construction management solutions to commercial and individual customers across multiple business sectors. The Company categories its customers in three principal groups:

• Contractors, comprising global, national, regional, and local contracting firms;
• Owners, comprising educational institutions such as schools and universities, state and national government bodies and agencies, healthcare providers and medical institutions, and various multinational enterprises; and
• Professionals, comprising architects and engineers, and construction managers. Procore provides services to a number of high-profile organisations and companies, including General Electric, DTE Energy, Donna Karan New York, Metropolitan Nashville Airport Authority, Las Vegas Valley Water District, Commodore Builders, Mayer Najem, and WL Butler Construction.

Procore is headquartered in the US, which remains the Company’s principal market. The Company does not appear to have any significant operations outside of the US.

Value Propositions

Procore provides value to its customers in the following ways:

• The accessibility and flexibility of its products, with the Company providing products that can access through the cloud both on desktop browsers and through mobile applications, enabling customers to manage their operations from anywhere;
• Its broad range of products and functionality, with the Company providing a broad range of products and online tools that allow customers to manage documents and drawings, track emails, manage submittals and transmittals, record meeting minutes, and more, all in one place;
• Its industry expertise and experience, with the Company employing both technical engineering and software personnel, as well as employees with experience of the construction and contracting industry, including its executives; and
• Its proprietary technologies, with the Company utilising a range of proprietary technologies that set its solutions apart from those offered by its competitors. ### Channels

Procore operates a website at www.procore.com, through which it provides information on its various products and services. The Company also operates an online channel that allows customers to request a free trial of the Procore software through its website. Once customers have acquired Procore products they can be accessed through the Company’s online platform, where customers can utilise the Company’s full suite of tools and resources.

Procore makes its sales through an in-house direct sales force which is organised by geographic region: Northwestern US, Southern California, Northern California, Midwestern US, Eastern US, Northeastern US, and Southwestern US. These sales personnel deal directly with customers out of its network of nine offices across the US, including its headquarters in California.

Procore operates its own sales and distribution channels, and does not appear to utilise the services of third party channel partners to any significant degree.

Customer Relationships

Procore does not operate an online, self-service sales channel. The Company does, however, operate a channel through which potential customers can request a free trial of the Company’s software online, without interacting directly with sales personnel. Once products have been purchased, Procore’s platform is available to customers through its website on a self-service basis, with customers able to utilise various tools and resources and manage their accounts independently.

Procore makes its sales through its own in-house sales personnel, who consult directly with customers in order to fully establish their unique requirements and circumstances. The Company is then able to provide solutions that appropriately fit the needs of each individual client. In this way Procore seeks to secure recurring business and longstanding relationships.

Customers are able to access a range of online support resources through the Procore website, including case studies, webinars, and testimonials. The Company also provides a Procore TV service, where customers can access a range of videos relating to the Company and its operations, and provides information in its attendance at various industry events and roadshows, enabling customers to attend and interact with the Company in person.

Procore also provides ongoing support services, with customers able to contact members of the Company’s support staff directly through an online contact form. Additionally, customers can interact with the Company through its social media accounts, including with LinkedIn, Facebook, Twitter, Google+, Instagram, and YouTube.

Key Activities

Procore is a technology company that provides construction management solutions.  provides cloud-based construction management software. Its various software products are designed to manage multiple types of construction projects that include industrial plants, office buildings, apartment complexes, university facilities, retail centres, and more.

The Company consequently serves a broad spectrum of commercial and institutional clients, including customers in the construction, retail, industrial, real estate, and transportation industries in the US and internationally.

The Company’s solutions and products are built around its proprietary cloud-based construction project management platform, that enables users to review, create, edit, and share project data with team members from various locations, and manage various aspects of the project from a single place.

Key Partners

Procore collaborates with a range of companies, primarily from within the technology sector, throughout the development and distribution of its solutions. These partners include:

• Supplier and Vendor Partners, comprising suppliers of tools, resources, and service that assists in support the Company’s development and distribution operations, as well as certain companies to which functions can be outsourced;
• Technology and Software Partners, comprising technology companies, software developers, and systems integrators that assist in developing, delivering and implementing the Company’s solutions, as well as integrating third-party functionality into its offerings; and
• Strategic and Alliance Partners, comprising various companies and organisations with which the Company shares certain resources and collaborates on joint projects. Among Procore’s partners are systems integrators Morpheus Technology Group, Chain-Sys, and Calance, Lighthorse Innovations, Dexter Chaney, Digitek Solutions, Cosential, and iSqFt.

Key Resources

Procore’s key resources are its proprietary technologies and intellectual properties, its online platform and solutions, its It and communication infrastructure, its sales and marketing channels, its partnerships – notably its numerous technology and development partners, and its personnel – in particular its technical and sales personnel.

Procore owns and or leases a number of properties in the US, namely its offices in Portland, San Francisco, Austin, Boston, New York, Willmar, and San Diego, as well as its headquarters in Carpinteria.

Despite the Company relying on its technologies and software platform, searches of records published by the US Patent and Trademark Office identified no patent applications in which Procore was named as the applicant or as the assignee.

Cost Structure

Procore incurs costs in relation to the development of its technologies and solutions, the development and maintenance of its online platform, the maintenance of its IT and communications infrastructure, the operation of its sales and distribution channels, the implementation of advertising and marketing programs, the management of its partnerships, and the retention of its personnel.

A substantial portion of the Company’s expenses relate to the payment of salaries and benefits to its employees, as well the payment of occupancy costs in relation to its network of eight US offices.

Revenue Streams

Procore generates revenue through the development and sale of construction management solutions to commercial and institutional clients across multiple sectors. The Company’s enterprise software solutions are sold under annual access agreements that allow for unlimited users and unlimited data. Procore does not disclose prices on its website, with the Company instead operating a variable pricing model that take into account the size and circumstances of each individual client.

Procore is a privately-owned company and does not publish its financial results on its website. Research did not identify any recent revenue figures for the Company. Some reports, however, stated that the Company had experienced 302% revenue growth to $4.8 million between 2009 and 2012.