Tooey Courtemanche (center), CEO of Procore, rings the bell of the New York Stock Exchange when he took his company public in May 2021.

Procore / NYSE

In March 2020, Procore CEO Tooey Courtemanche packed his bags to take part in an investor roadshow to introduce analysts to its construction cloud software business before going public. Procore was founded in 2002 and had come a long way to go public. But it would have to wait longer as the Covid-19 pandemic had other plans.

Now, more than a year later, Procore is finally listed as a public company on the New York Stock Exchange. And for Courtemanche, the debut was well worth the wait. Procore’s shares were above the $ 67 price range and then opened at $ 84 per share. The first day of trading ended at USD 88. This gives Procore, which in a private round of funding it picked up last year was valued at $ 5 billion instead of continuing its IPO, a market cap of $ 11.3 billion.

“We’re probably very late for our IPO party to think about it. So we’ve been ready for a long time,” Courtemanche said in an interview. “I’ve been doing this at Procore for 19.5 years. For me, the delay in the IPO due to Covid was just a leap in time in the overall concept.”

CEO Tooey Courtemanche photographed the Procore headquarters expansion for a Forbes magazine profile in 2018.

Ethan Pines for Forbes

After a decade of slow growth and relative darkness – sales in 2012 were just $ 5 million – Carpinteria, California-based Procore (next to Santa Barbara) raised venture capital and saw more typical rapid growth of the pre-eminent cloud computing company in recent years. The company achieved billion dollar startup status “unicorn” in 2016. In 2018, when Procore was number 5 on the Cloud 100 list, revenue was nearing $ 200 million and an IPO was on the horizon.

But in early 2020, when Procore initially wanted to get out as a stock corporation, the construction industry was put on hold by the pandemic. Courtemanche said 78% of Procore customers who use the software to digitize construction plans and paper updates, as well as manage complex construction projects, had projects that were delayed or interrupted by Covid-19 in the past year. Not a good time to hit the public markets. “Procore is inextricably linked to the construction industry around the world,” says Courtemanche.

A year later the story swings back. In more than 40 roadshow calls, Courtemanche said investors were impressed with the size of the home improvement store – he says it’s growing $ 10 trillion to $ 14 trillion – and the backlog of projects that will be back online soon. For Procore, the funds can be particularly helpful in expanding outside the US: While 90% of this global construction market is represented by the rest of the world, contracts outside the US only account for 12% of Procore’s current sales, which for the US is 113.9 Million USD reached first quarter of 2021.

Procore chose not to go direct, the CEO says, as the company wanted to select its own investors and get a marketing boost through the traditional IPO process. He says the company never seriously considered another alternative, the Special Purpose Acquisition Company or SPAC.

In addition to expanding globally, Procore can also try to make better use of the enormous amounts of data flowing through its software – 5,500 terabytes of structured data, says Courtemanche: “I can tell you how much a meter of real cost in Miami is in comparison Beverly Hills and how subcontractors work or who don’t. “

The construction market is also still very fragmented, and Procore has not yet achieved a market share of 5% in its core markets. That means that after Courtemanche told Forbes in a 2018 pressure profile that he’s a “dog on the bone” who has been following the market for the long term, “the dog is still on the bone man,” and moves away from the IPO milestone. “I have a lot to do to connect everyone under construction on this platform,” he says.