Procore Technologies Earnings Call Transcripts
Fiscal Year 2026
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New leadership team is driving rapid execution and margin improvements, with a focus on AI-driven product enhancements and expanding wallet share among existing customers. Financial performance remains strong, outpacing a flat end market, while international growth and indirect channels are key future levers.
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Q1 FY2026 saw 15.7% revenue growth and 17% non-GAAP operating margin, exceeding guidance. AI innovation, new product launches, and strong customer adoption drove results, while FY2026 guidance was raised for both revenue and margins.
Fiscal Year 2025
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Q4 and FY25 results exceeded expectations with 15% revenue growth and strong margin expansion, driven by robust upmarket momentum, AI innovation, and key wins in both U.S. and international markets. FY26 guidance projects continued growth and margin improvement.
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Q3 2025 saw 14.5% revenue growth, margin expansion, and strong large-deal activity despite macro headwinds. The CEO transition to Ajay Gopal is set, and guidance for both revenue and margins was raised for the full year. Customer wins and product innovation continue to drive market share.
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AI-driven innovation and platform extensibility are accelerating, with Helix and Developer Studio enabling custom workflows and agent creation. Owner-focused growth, European expansion, and enhanced resource management tools are key priorities, while FedRAMP compliance and a data-driven approach strengthen competitive positioning.
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The discussion highlighted strong U.S. market presence, ongoing international expansion, and robust growth despite industry headwinds. AI and agent products are central to the roadmap, with margin expansion and productivity gains prioritized for 2025-2026.
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Q2 revenue grew 14% year-over-year to $324 million, with strong large deal activity and improved operating margins. Guidance for 2025 was raised, with profitability expected to drive Rule of 40 improvement next year. Major AI innovations and new customer wins highlight continued momentum.
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Q1 revenue grew 15% year-over-year to $311 million, with strong international and multi-year deal momentum. Guidance for 2025 is maintained despite tariff uncertainties, and the company continues to invest in AI and platform innovation while optimizing capital allocation.
Fiscal Year 2024
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Revenue grew 16% year-over-year in Q4, with strong international and owner segment growth, and free cash flow up 171% for the year. FY25 guidance was raised for both revenue and margins, with continued investment in AI and platform connectivity. Margin expansion is expected to continue into FY26.
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Key go-to-market changes include a shift to a general manager model and the addition of product specialists, aiming to boost productivity and efficiency. Early 2025 guidance targets 11% revenue growth and a 13% non-GAAP operating margin, with Procore Pay expected to scale meaningfully in 2026. Customer demand for integrated solutions and stable market sentiment support the long-term outlook.
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Management outlined a strategy focused on durable, efficient growth in a vast, underpenetrated market, driven by a regionalized go-to-market model, technical resources, and a unified platform. Key growth levers include new customer acquisition, volume expansion, cross-sell, and international reach, with a strong commitment to margin expansion and compounding free cash flow per share.
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Q3 revenue rose 19% year-over-year, with strong international growth and margin expansion. The company is executing a major go-to-market transition, raising full-year guidance and authorizing a $300 million stock repurchase, while navigating a mixed demand environment.
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Significant growth potential remains in construction digitization, with strong enterprise demand and global expansion opportunities. Product innovation, including AI and Procore Pay, and a major go-to-market transformation are expected to drive long-term growth, despite near-term macro headwinds and margin compression.
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Q2 revenue grew 24% year-over-year to $284 million, with strong international growth and a 17.6% operating margin. The company is transitioning to a general manager-led go-to-market model, expecting near-term disruption but maintaining full-year guidance and raising margin outlook.