Procore Technologies Inc ((PCOR)) has held its Q1 earnings call. Read on for the main highlights of the call.
Procore Technologies’ recent earnings call revealed a generally positive sentiment, highlighting significant revenue growth, customer expansion, and advancements in artificial intelligence. Despite these achievements, the company acknowledged some uncertainties due to tariff impacts and disruptions from a go-to-market transition. Nevertheless, Procore remains optimistic about its long-term prospects.
Revenue Growth
Procore Technologies reported a robust 15% year-over-year revenue growth for the first quarter of 2025, reaching $311 million. This growth underscores the company’s strong market position and ability to capitalize on industry demand.
Increase in Non-GAAP Operating Margins
The company achieved an increase in non-GAAP operating margins, which rose to 10% quarter-over-quarter. This improvement reflects Procore’s focus on operational efficiency and cost management.
Customer Milestone
Procore reached a significant milestone with over 2,400 customers now contributing more than $100,000 in annual recurring revenue (ARR). This achievement highlights the company’s successful customer retention and expansion strategies.
International Revenue Growth
International revenue saw an impressive 18% year-over-year increase, with constant currency growth at 20%. This growth demonstrates Procore’s expanding global footprint and ability to adapt to diverse markets.
New Customer Acquisitions
The company successfully added notable customers, including Workday, a major social media platform, and the Iowa Army National Guard. These acquisitions reflect Procore’s appeal to a wide range of industries and sectors.
AI and Product Innovation
Procore is advancing its AI capabilities, developing agents to enhance productivity and reduce risk. The company is prioritizing customer feedback to drive product innovation, ensuring solutions meet evolving market needs.
Tariff Uncertainty
Potential impacts of tariff policies have introduced some uncertainty in demand. While no material changes have been observed, Procore is cautiously monitoring the situation to mitigate any adverse effects.
Go-to-Market Transition Disruption
The transition to a new go-to-market model caused some anticipated disruptions in the first quarter. However, Procore managed these challenges effectively, minimizing their impact on overall performance.
Currency Headwinds
International results were slightly affected by currency headwinds, contributing approximately two points of headwind to international revenue growth. Despite this, Procore’s international segment continued to perform well.
Forward-Looking Guidance
Procore Technologies maintained the high end of its full-year revenue guidance at $1.286 billion to $1.29 billion, representing an annual growth of 12%. The company anticipates a non-GAAP operating margin between 13% and 13.5% for the full year, indicating a margin expansion of 300 to 350 basis points. Despite uncertainties surrounding tariff policies, Procore is prepared to leverage its strong financial position to sustain growth and profitability.
In summary, Procore Technologies’ earnings call conveyed a positive outlook, driven by strong revenue growth, customer milestones, and product innovations. While challenges such as tariff uncertainties and go-to-market transitions pose potential risks, the company remains confident in its ability to navigate these issues and continue its upward trajectory.