Procore Technologies (PCOR) Q4 2024 earnings summary

Executive summary

• Ended FY24 with strong performance, exceeding expectations in bookings and customer growth, including a 39% year-over-year increase in customers contributing over $1M in ARR and 2,333 customers over $100,000 ARR (+16% YoY).

• Achieved notable expansion with major global clients and saw broad-based growth across all stakeholder segments, with particular strength among owners.

• Advanced go-to-market transition ahead of schedule, with new sales model implementation expected to be fully operational by H2 2025.

• Continued investment in AI and platform connectivity, launching new products and features such as Procore AI, Resource Management, Safety, and Scheduling.

• Gross revenue retention was 94% and net revenue retention was 106% for 2024.

Financial highlights

• Q4 2024 revenue reached $302M, up 16% year-over-year; full year revenue was $1,152M, up 21% year-over-year.

• Q4 non-GAAP operating income was negative $2M (operating margin of -1%); full year non-GAAP operating margin was 10%, up 800 basis points.

• Generated $128M in free cash flow for the year, a 171% year-over-year improvement; free cash flow margin for 2024 was 11%.

• Q4 GAAP gross margin: 81%; non-GAAP: 85%. Full year GAAP gross margin: 82%; non-GAAP: 86%.

• Q4 net loss: $62.3M; full year net loss: $106.0M. Non-GAAP net income for 2024: $141.4M.

Outlook and guidance

• Q1 2025 revenue expected between $301M-$303M, representing 12% year-over-year growth; non-GAAP operating margin expected between 7-8%.

• FY25 revenue guidance raised to $1.285B-$1.29B (12% year-over-year growth); non-GAAP operating margin guidance raised to 13-13.5%, implying 300-350 bps margin expansion.

• Management expects continued margin expansion into 2026.