Procore Technologies (PCOR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $284.3 million, up 24% year-over-year, with 89% of growth from existing customers and 11% from new customers.

• Net loss narrowed to $6.3 million from $52.9 million in Q2 2023; non-GAAP net income was $58.5 million, up from $2.8 million.

• Operating margin reached 17.6% (non-GAAP), with gross margin improving to 83% and non-GAAP gross margin at 87%.

• Announced a major go-to-market transformation, shifting to a general manager model to drive regional autonomy and customer centricity.

• Completed the acquisition of Intelliwave Technologies for $29.8 million to enhance Workforce Management solutions.

Financial highlights

• Six-month revenue ended June 30, 2024 was $553.8 million, up 25% year-over-year.

• Q2 non-GAAP operating income was $50 million; GAAP operating margin was (5%), non-GAAP operating margin was 17.6%.

• Net cash provided by operating activities was $127.8 million for H1 2024; Q2 free cash flow was $46.6 million.

• Deferred revenue as of June 30, 2024 was $494.7 million; RPO was $1.04 billion, up 22% year-over-year.

• Cash, cash equivalents, and marketable securities totaled $780.8 million as of June 30, 2024.

Outlook and guidance

• Q3 2024 revenue expected between $286–$288 million, representing 15–16% year-over-year growth.

• Q3 non-GAAP operating margin expected between 9–10%.

• Full-year 2024 revenue guidance raised to $1.141–$1.144 billion (20% year-over-year growth).

• Full-year non-GAAP operating margin expected at 10–11%, implying 800–900 basis points of margin expansion.

• Near-term disruption to bookings and revenue growth expected from go-to-market transition, especially in Q4 and into 2025.