Spyglass Investment Strategy Overview

0 New Position: Procore Technologies, Inc. (PCOR) PROCORE Business Overview . Procore is a leading provider of construction management software -> Procore was founded in 2002 by Tooey Courtemanche, and the Company has become the industry standard for project management of large multi-family residential and commercial construction → Procore's unique pricing model charges on a percentage of construction volume which has led to mass adoption of its software with over 15,000 paying customers and over 500,000 collaborating companies - this also serves as fertile grounds for gaining new customers → Procore's dominance in project management software has paved the way for the Company to become a full construction software platform as it expands into quality management and financial management software specific to the construction industry Construction Industry is massive and has been one of the slowest industries to adopt technology Procore is targeting approximately $11 trillion in global construction volume which is estimated by McKinsey to grow to $15 trillion by 2030 The construction industry spends less than half of the total industry average at less than 2% of revenue on IT vs. industry average of 3.6%, according to Deloitte study → McKinsey estimates that, of the over $500 billion of construction rework a year, 52% is caused by poor data and miscommunication a clear area that Procore can help to improve - Procore has an attractive financial profile → Spyglass is expecting approximately $950 million of fiscal year 2023 revenue, representing a 38% CAGR since fiscal year 2018 → In the trailing 12-month period ended June 30, 2023, Procore reported 85% non-GAAP gross margins and approximately breakeven non-GAAP operating margins 18

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