Procore Technologies (PCOR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 19% year-over-year to $296 million, with strong international growth and 89% of growth from existing customers.

• Net loss for Q3 2024 was $26.4 million, an improvement from $43.8 million in Q3 2023.

• The company is executing a major go-to-market transition, including a general manager model and new technical roles, aiming to localize sales and deepen customer relationships.

• A $300 million stock repurchase program was authorized, funded by working capital and expiring October 2025.

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

Financial highlights

• Q3 2024 non-GAAP operating income was $26 million, with a non-GAAP operating margin of 9%.

• Q3 2024 GAAP gross margin was 81%; non-GAAP gross margin was 85%.

• Net cash provided by operating activities was $167.1 million for the nine months ended September 30, 2024.

• Free cash flow for Q3 2024 was $23 million; for the nine months ended September 30, $127 million.

• Full-year 2024 revenue guidance raised to $1.146–$1.148 billion, up 21% year-over-year.

Outlook and guidance

• Q4 2024 revenue expected between $296–$298 million, with non-GAAP operating margin of 3–4%.

• Fiscal 2025 initial revenue guide set at $1.275 billion, representing 11% year-over-year growth, with non-GAAP operating margin of 13%.

• Fiscal 2025 is described as a transition year, with expectations for improved P&L in 2026.

• Management expects near-term disruptions from evolving the go-to-market model but anticipates improved long-term operating efficiency and sustainable growth.

• The company believes its liquidity is sufficient to meet operational needs for at least the next 12 months.