Procore Technologies (PCOR) Q1 2025 earnings summary

Executive summary

• Revenue grew 15% year-over-year to $311 million in Q1 2025, with strong customer retention and expansion, and international revenue up 18% year-over-year (20% in constant currency).

• Non-GAAP operating margin was 10% in Q1, with non-GAAP operating income of $32 million.

• Net loss widened to $33 million, or $0.22 per share, reflecting increased investments in R&D and sales.

• Over 2,400 customers now contribute more than $100,000 in ARR, up 14% year-over-year, reflecting strong customer engagement.

• CEO succession planning is underway, with a search firm hired and enhanced severance agreements for non-CEO executives.

Financial highlights

• Q1 total revenue: $311 million, up 15% year-over-year; 83% from existing customers, 17% from new customers.

• Gross profit: $245.7 million, gross margin 79% (GAAP), non-GAAP gross margin 83%.

• Q1 non-GAAP operating income: $32 million; non-GAAP operating margin: 10%.

• Remaining performance obligations (RPO) increased 28% year-over-year to $1.29 billion; current RPO up 20%.

• Returned $100 million to shareholders via repurchasing 1.5 million shares; $200 million remains authorized.

Outlook and guidance

• Q2 2025 revenue expected between $310 million and $312 million, representing 9%-10% year-over-year growth; non-GAAP operating margin expected between 11%-11.5%.

• Full-year 2025 revenue guidance maintained at $1.286 billion to $1.29 billion, up 12% year-over-year; non-GAAP operating margin guidance: 13%-13.5%.

• Path to 25% free cash flow margins in the medium term and 40% in the long term remains intact.

• Management expects continued investment in technology, international expansion, and sales enablement to drive long-term growth.

• Cash, cash equivalents, and marketable securities of $698.8 million are expected to be sufficient for at least the next 12 months.