PCOR - Earnings call transcript Q3 2024 | Procore Technologies, Inc.

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Operator

Thank you for your patience. Today's call, Procore Technologies, Inc, Full Year 204 Third Quarter Earnings Call will be starting in a moment's time. My name is Brika, and I'll be your operator on today's call. [Operator Instructions] We'll be starting shortly. Thank you again for your patience.

thank 'XX for Third and Technologies the all, Year Full Quarter evening you attending all Procore Good Earnings Call. Brika, is for name and be will My your today's call. I moderator the would like Alexandera I Head Relations, Investor begin. of to Instructions] [Operator Galler, to pass your conference now host, to over Thank you.

You Alexandra. may proceed,

Unknown Executive

Fu, are Procore's Further CEO, results which our afternoon, ], available section CFO. Relations. our Investor the press release Head to our on Quarter Tooey Founder, Call. Relations and SEC. XXXX today President in of Courtemanche, Good Howard Thanks. welcome I'm Earnings and be of found With Third with and disclosure can Investor reports website and issued is [ Geller of filed periodic me today, our Alexandra the

being our will forward-looking Today's transition, outlook, conclusion on recorded, following the Comments replay conditions. geopolitical things, the include products, this and demand, call stock and other available financial a of among repurchase be call. program made operations, macroeconomic go-to-market and customer regarding, call statements is

as XXXX. not are You statements of today, events. current predictions future forward-looking on assumptions and as XX, are statements forward-looking management's expectations views on uncertainties October based to All and risks, subject rely and of should

provide today, date. Procore information statements new by events, also after statements except additional replayed to accurate these views upon information. presented obligation should law. is or may update as non-GAAP of representing current Therefore, certain during call investors. If to financial refer as to We'll undertakes be contain subsequent not the our no information any not information as viewed to any forward-looking measures relied or required to the reflect or unanticipated this call

measures is let turn our the over our non-GAAP Tooey. of filed with release to call provided and in that, the me reconciliation With SEC. A to periodic reports press GAAP

Craig Courtemanche

for today. joining thank Thanks, everyone, us Alex, and you,

I'd So quarter. with the some to from start like highlights

in platform most our with because Procore the construction we partnership have unmatched. revenue is connected QX, wins grew XX% year-over-year. simply industry, In the and

construction be high against software clear, which me in consistently reflected Procore. undisputed our is revenue leader have all much rates software which Let main competitors, of in we our are construction smaller than the win

QX onetime at which seasonal margins As expected, is of investments, the operating than end but operating and were to year. on we track expand continue various margins we expanding X% high lower the margins for basis intend to XXX due year full are non-GAAP guidance and to points next by

began as to primary general localize to we changes that's platform. the building evolution In us communicating The deeper are; go-to-market this QX, lasting better the serve operate, and partnerships believe well all two moving our with focus buyer areas implementing value personas in to of technical multibillion the and support company go-to-market We as motion introducing which full Procore the going go-to-market we customers. a previously a our regions become to of new realizing position announced. will we evolution revenue and roles model our while manager

We from and overwhelmingly have feedback employees, positive customers our received partners.

changes are been asking these exactly that us what tell sellers Our they've for.

local advocating teams international experience. go-to-market for have long customer drive a been connected more to Our a approach

platform experts regions of product personas. diverse to ROI in technical or thrilled to them buyer convey sellers to help of the are Our have group our all a

businesses unlock their specialists to Procore platform deeper relationships have excited that us our and tell has more invaluable value. to and they're operations, customers technical and unlocked Our insights about even with

sales opportunity will once have motion within This supporting correctly identified executed, for our that our while feedback accelerate me better of creation tells sellers. areas value that customers we our

get their of intent to year. and them teams, managers done All are report of new investing for a are am shared expected for part be amount new also and goals the are generalist targets, that hundred we resources both the also that our and quarter involves weekly well. by in in we We're track hiring are changes, hit which teams couple go-to-market we ramped these I hiring, the hitting place on year. technical general but to quickly net productive. pacing bringing the roles. with end sellers our we leadership hiring of pleased considerable part and a only we of the about of to we set in, to are X sales As that We've on next of

onboard workshops, series these have on-boarding launched we employees, dive building and on role-based paths and to panels. ramp order and training In scenario deep focused learning weekly a are out leadership specific

also do at We coming we and fiscal every plans our as at territory distributing this the compensation January, will kickoff be of year. beginning sales

While we're it's progress there quarters. we through will evolution, good on continue to to go-to-market some making to recognize our moving take that this going work and transition, in coming parts the time be

have we we because this play strong these with in customers. that number have enterprise So go-to-market I you out want conviction to seen of a model remind changes

support generates we in resources, ample and and with improvement When retention approach expansion our tailored technical rates. it a customers

So inconsistent of for standard example, procedures. application an within Australian their operating mining customer Procore had an

robustness the ROI teams processes technical and conducted to experience for more the to customers engagement. operations. teams. by which subcontractor of This streamlining and resulted day-to-day to Our embed the This project leads our by in-depth into in an Procore analysis deeper the mapping process platform. leverage increased adoption effective their confidently allows significant on-boarding standardized

needs additional and the dive their with the strategic financials. time technical this partnership they're including focus across in value In created many of confidence just teams volume that entire new us our to customer's give pathway addition accelerate deep Procore. a under evaluating engagement unique our the value global annual construction capture to customers to demonstrates one technical examples products, of This ability model. on furthering This XX locations, the and our to leveraging for of customers it's to

largely their and around world remains perspective Throughout connect the on the demand with to the environment continue quarter, I customers unchanged.

environment. challenging We in and mixed are operating a

continue infrastructure, and strength many grow, seeing within customers they're our and to However, manufacturing centers. data larger of

You out this wins can in play dynamic see our quarter. this customer

a in X-figure One of Procore the had expansion new biggest volume including long-time customer, and more to stadiums, projects, rises. high general a on U.S. and for add the centers data contractors

expansion followed expansion last X-figure QX a This just quarter.

project their Although standard for support contractor quarter, solutions Procore. business. with this room construction. on Suffolk there approach the to is the innovative on grow still the Construction, in modern of customers, Renowned its with this largest expanded a methods and one innovative our Procore considerable is firm their new ENR construction gold focuses they both of us in to Suffolk products. data-driven technology and all setting top their for delivery volume XX volume already But operations, had cutting-edge integrating industry, growing footprint,

its ] Suffolk life Procore is to continue builds. entire cycle to seamless platform a America building efforts with the integrate partner how to proud to into [ in redefine

XXX me So X large ENR reference expansions. heard you just

a that to us to opportunity. there's As represents remains significant opportunity does there it ENR the to the the when we not. I've growth But noticed clear, entirety within a demonstrate, ENR that XXX. be want I continue of speak growth XXX very misconception for investors, I Procore's

owners specialty opportunity contract represent less within ENR is While they excludes and are half GC important contractors. also cohort, completely the the than the of the listed U.S. It an within general

in real to faced management Al real their manual with a contractors estate due estate have project developer Arabia, vendor We existing demonstrate limitations significant leading Saudi processes. traction strong owners specialty company, and ERP to in continued who Sidon, numerous with QX including

the one project information areas Procore were office off They In unified performance QX, to in a find to also and single a solution but importantly, became offer cost unable at project or looking processes data information. all a integrated dashboards They while security. working and to all to that of project everyone at VSC dashboards with financial a was their profitability progressing. they level, helping budgets. house the previously field, leading for certain streamline the communications provide real-time and solution, and generate & is for customer place platform specialty to ensure Security to using reporting have visibility on only and ensure Point solution stakeholders view not single into everyone how been real-time that's wanted reduced Fire for the seamlessly safety had a and the began holistic project were contractor portfolio more same project accuracy a the level. the Solutions both fire They enhance with increasing of and

be Procore will VSC their fire primarily U.S. the focused on using across projects, across all suppression of systems

and more than stakeholders Furthermore, customers. see, X So of diversified you even significant the our seen factor becomes across be construction not market. as XXX as in large, the types you can business owners if that we opportunity can Procore's have international is larger, ENR all when

new our fact, owners. top all X growth In best global on capitalize X go-to-market us will across are believe our to position largest the We model customers opportunity stakeholders. of today,

believe why growth we'll upcoming Investor our At we very be our and discuss runway dynamic Day, for continues this attractive. to further

When power build by connected our other comes customers enterprise-grade access So the all immediately the connects they product market. processes construction how Investor Each groundbreak people, I offer unmatched But data purchases platform. our any our products, more platform and only platform the to that is our any solution and speaking a cycle. entire of showcasing conference, Procore Day helps forward get solution, capabilities, productively. unified look truly upcoming that from construction Procore capabilities real efficiently to customer in and across the life we

over workflow, limited This of the million are customers their actionable the not and data. our believe rather collaborating of only an the are businesses. portfolios, only construction of X product because construction AI our on for we projects is insights but allows corpus provide that industry, truly span With in us professionals platform, solution harness data view or customers. power world the platform projects giving have connected our customers that around with Procore the We and a unmatched one that to we to fully their can comprehensive

in You the these technologies stuck benefit simply if maximize of data silos. is cannot

see Forum core construction Back stakeholders, gain the in see insights, digitizing a for the their Their all business our industry they building a It's a unanimous. connected businesses. build was to leading be truly component we they August, connect Austin. forefront more. and order their dozen I technology at CIOs In have of at that top CIO connected how of and become can in of to to the companies incredible must this successful, and platform to feedback had leading hosting momentum of on run leverage construction so around how them privilege AI be

contractors covering platform. evolving So We'll showcase continuously going be in and and innovating are general make how delivering more where be we're and we specialty functionality as to we're products all we're powerful of all construction Conference platform Groundbreak of to at new to support our Denver, exciting leverage investments much our next more month's well sizes this the and that projects. owners, in making going unveiling of types contractors developments all to better as

to our all of employees I This to customers, and to groundbreak latest shaping impactful innovations prospects, event and shareholders yet, biggest with up and see most is product partners, our cannot our share be wait them. and

turn repurchase conviction deliver in allows the I our authorization to before up returns stock $XXX like So intended leverage have to to authorized Howard, flexibly program we be to announce to business. that program and of opportunistically sheet judiciously. efficiently to it our million. a This balance us The and over shareholders. our is repurchase to I'd deployed reflects

moment. further philosophy, on excited elaborate are going capital our this within allocation is levers about the and We to a expanding in Howard

to So move an progress of far. incredibly multibillion up, becoming go-to-market This I Procore chapter exciting that in is our for the evolution am made a we wrap we've towards goal so revenue enterprise. confident our as and

let it Howard. that, to hand me And with over now

Howard Fu

capital you thank on include main to would and and to our topics today business our joining QX results, philosophy. The Tooey, the additional Thanks, us. cover I financial for everyone like color allocation

$XXX was revenue XX% year-over-year, million, international and QX XX% year-over-year. in up revenue Total grew

income basis, of constant growth. QX basis, a representing margin XX% a currency currency operating year-over-year. results $XX international FX of revenue Therefore, by non-GAAP grew headwind X%. approximately On international non-GAAP operating Our revenue QX international slightly a contributed point was headwinds. were impacted million, on to year-over-year X

metrics XX% and year-over-year, respectively. current backlog specifically key XX% Our current deferred revenue RPO grew and

let some me Now additional on share color the business.

please our and margins in will next represent not Customer the half. and second operating to investments and various Conference 'XX. cash deliver the the the guidance of lower These expect year. than guidance in at across improvement our to for half Annual second that seasonal half technology year of investments fiscal result of includes high we indicates, range flow assume marketing end including our this Instead, This expectations and points refer margin the basis for the in second onetime year. are XXX half Investors As margins margin first should Groundbreak, our our year.

will year we expanding that Note in on full a 'XX. be basis fiscal margins

communication, transition. this go-to-market enablement our as are stage, we to At change new well Moving sellers. onboarding focused management, as on

We so the positive far feedback are from pleased customers. with and employees

track these this provide that our benefits plans and Since on further changes in the to new an for long-term transition, update growth will our progress enable is premature are specific model. on hiring Our early belief are operating it reinforces of the we business.

We the 'XX. have back benefits better these expect as to approach insight into fiscal half of we

back, going two through distinct step business is a Taking the transitions.

began is environment, first demand challenging a and in XXXX. which The mixed construction

believe our quarter. temporary. Both these of represent be competitive shift, go-to-market of a headwinds these platform to continues power revenue we is are and a impacts strong growth, to second The operating model advantage. but began near-term the brand The in which third

against In stronger few against competitor, even over are improved headwind and even years has of transition the our competitors is behind fiscal win business last largest believe macro win we top will the be fact, and average go-to-market is the XX% combined These undeniable year-to-date. stats rate us. rate our north our is higher. and the average when And

allocation me our let philosophy. Lastly, capital turn to

As multiple times, growth free to levers you've we heard cash have flow are me we its over share, per compound say time. and to committed many increasing

per driving priority and to First, growth, metrics the continues our shareholder to lever primary and top efficient value. is revenue which investment deliver be organic compound share

free ahead. going $XX that business forward in industry to remains trillion technology business opportunity our stages this with of and organic the we projected consistently construction believe we and leader digitization the generate early market have in stage thus cash fund are our evolution, At a market of objectives. significant sufficient flow We will capital

in accretive is The second investment lever M&A.

made marketplace the that platform, to that companies M&A app together Most The we accelerating these very further deliver integrated our tuck-in and elegant map ensures companies acquisitions focused our unique we been products have generally has in strategy comprehensive most our on know in we're that solution. of primarily past the come Our have Procore product an construction. the already smaller platform solves the well. which road within came from into challenges

pursue Although our long-term objectives. actively financial larger, considering time, accretive we in transformative future, at M&A with are choose large-scale more that the this synergies M&A share not may are to we to per

The stock be authorization repurchase capital opportunistically to million market period announced depending today is intended we $XXX third shareholders. returning lever is authorization The conditions. deployed to X-year during the on

repurchase per to is to provide principle optimize accretion in guiding notable long-term shareholder value. Our targets shares share to to order

will optimize these best and As long-term the to what's value. allocation evaluate strategy shareholder across optimize to always, for our do regularly we levers business and capital

Now moving our to on outlook.

philosophy from for remains unchanged a As our guidance ago. fiscal reminder, XX 'XX days

X% to fourth growth $XXX is total the operating be $XXX For expect non-GAAP of to XX%. between QX between margin year-over-year quarter expected million, X%. and representing revenue of we million and XX%

fiscal and between billion, For raising total revenue year-over-year XX%. $X.XXX are billion our be the growth $X.XXX we full XXXX, guide year of to representing of

our maintaining year-over-year XXX for the We the of basis XX%, margin non-GAAP year and which are high between between operating and end XXX XX.X% implies expansion margin points.

not have beyond of fiscal previously provided We our quantification any year. the outlook current

As 'XX. initial estimates would address an fiscal the dispersion for by like providing to guide such, sell-side across we

this than earlier typical, we fiscal a a incremental providing as investors months we outlook, conservatism. well for few as guidance 'XX Given floor revenue are as guidance. applying We recommend this view both are

points. our wrap year-over-year evolution underpenetrated have progress $X.XXX of the and with to opportunity and of operating year-over-year non-GAAP conviction which to For will top position of are bottom remains XX%, line. To changes billion, priority, Long-term our XXXX, margins returns go-to-market are XXX ahead we that will and expect expect basis these we that and massive implies and we expansion confident year fiscal of to the both XX% pleased total the investments Procore we up, us. of early the we margin these generate XXX best capture be full to growth growth revenue representing the

as customers, partners, With the over let's as giving the opportunity. like and to the it -- close for us industry that, our shareholders employees, we to communities this serve operator for Q&A. thanking by again I'd well turn

Operator

[Operator with DJ from question Instructions] We Hynes Canaccord. the have first

David Hynes

'XX. appreciate early the for Thanks look I that. at

good think to I place maybe start. that's a

rates if next for if know year. growth look, at the don't is XX% up I guys. this for perfect and bookings it growth there I So we're for aren't Howard. year-to-date, Tooey setting you, you billings But or know But doesn't calculated look look like CRPO I based a indicator

these picking seeing is, reason metrics guys I be might gives the that growth the for you to as you So guess have business guide you are question that XXXX? what up not

Howard Fu

right? the line, is the fiscal that Look, both early top we and this it's we talked on I'm applying And conservatism to guide, the we on line, And that there. your the but provided, top incremental Thanks Howard. DJ, of top achieve. question. always guide that confidence is something going line our about 'XX revenue reiterate guide are incremental for an We've in conservatism on can bottom specifically that that the that. have high on there's we so

of guide, we've it's we've through QX, that still an remember in that get biggest the have And just got and to this into quarter gotten we go-to-market our early only stages transformation. not early

hold. we conservative. that we so provide makes And the of to really next it that's transformation have sense what into better more when early look, other we'll year, to little want -- a is, the coupled get something thing And a pieces is on we when such guy into with that bit going those get this

David Hynes

Yes.

that's good follow segue up. a Maybe Okay. the to

about conservative really Procore up QX in year last was with to that commitments. it customers first showing think talking we of started I more

those relative commitments have fared starting deals, customers the like we're those to were making that to a Procore? anniversary that they how Now lower

Howard Fu

were And cohort talked year. third we of We year. data has quarter cohort that saw first X the Yes. remained half about the the with in consistent of the quarters seeing what we the in first the largely

QX QX we that we and still so that levels rates to that flat, that at when those Keeping consistent. the from historically forth, and more look those this downturn. mind, those expanded and and a to folks little expand that in remain are so cohort started expansion expand bit remained And not to QX, the at in prior seen continue though, had has into

Operator

with from The Joe Vruwink next question Baird. comes

Joseph Vruwink

half? XXXX, see the back view more go-to-market on translate benefits the half. when evidence And you on relatedly, that relief during to moving there things Just outside, say the as back can in to rates revenue in direction? would we the point also be is changes, that anything higher the right half watching growth in on are likely you'll first Does the you the the that it are

Craig Courtemanche

the about top what At I'm line that of -- fiscal But going comment doing result this But in conservatism. is of in not going will growth I represent it's anything eventually from point, well we're shape line as bottom a does 'XX better to say to basis. as growth. quarterly in such terms it that as

guidance that thing fiscal the would I'll better I think of that top does about note way going the 'XX. than on that's into 'XX. is The other going P&L 'XX I would is that in is just it that fiscal year, transition to the our fiscal that. And reflects look and recognize 'XX we that The P&L fiscal a add and thing is

through, see generation. through going as our It's ultimately the to In metrics. show talked that's result to in is into results. 'XX. conversion a again, fiscal like terms going The add is, as of that's flow see that go-to-market, pipeline pipeline. going fiscal going disruption causing to of then in that financial year of mind, dovetail that will things to really to And fiscal XXXX, things P&L. retention to a internally productivity, you'll velocity you'll I'll It's better view the be to why last we that fiscal some thing and transition, and to be be we've And it that's always going this keep then those exit we talk in up higher the about 'XX into as going start And a eventually, better transition our rates. about 'XX progression

Joseph Vruwink

category in appreciate then expectation on inbound in competition very change the go announces appreciate And forward the doesn't opportunity play unnoticed go-to-market but Maybe by most a that year-to-date. leads largest and out? and competitive of win clear that are your greenfield, how I your rates still might comments company going on what's the

Craig Courtemanche

Yes.

going to question And competitive wanted actually is win So you Look, been are for for themselves. those release quarter-over-quarter. in that start following competitive these and the saying around rest environment. us saying I'm this rates put by to Tooey. once -- if to we numbers we've for that we the how doing consistent because all we I just know are those you've a that numbers think And speak been we while,

up And is customer-centric I salespeople set for putting getting that being amount us customer, 'XX you in will 'XX. partner and believe, can and to a we your your so success, a more for tremendous success of up, what better and tell

for -- So we competitive a are a going think setting up environment even forward. ourselves we position better that from

Operator

comes Your Jefferies. from next with Thill question Brent

Luv Sodha

saw data one Tooey. terms on the that your traction just for Luv Could Sodha for of you we macro be Maybe across the to side. appreciate And first some Thank we you alternative dissect of Brent. the appreciate this This what Tooey track on you. base? customer quarter tends the mixed. is customer I in large

you out 'XX you gives -- what that than So will seeing 'XX? better be hope are there that

Craig Courtemanche

Luv great question. the By Yes. way,

term, quarter. over the is election. we're in uncertain. it's what overall there short the though the key will the I in similar quarters, little facing of hope think is the last been Look, industry folks many because many, kind few which all is sentiment do the that the in I very say talk conservative, I word throughout to pretty to the a

more for I interest drop. rates people are think hoping

of uncertainty, would fruition. of I go, elevated and still to there going things those to amount but hopefully, come there's say, election be lot come because hope interest At a the there'll some is going more So are then cuts. is rate least slightly a to a, there's and

So mixed from still macro overall again, because the But we it's think term, of macro environment, it's headwinds. long it's -- -- the looking I a -- better. still just

Luv Sodha

And for know you the you year. obviously Howard, throughout don't Got are guide flow year, year? next the next quarter-by-quarter I that year? this some be expansion talk through end guiding how just changes will you it. And by about Could to you but will through margin maybe making the go-to-market of

Howard Fu

Yes.

terms all, happy are really aspects of in First the with the of how and we the progressing we're changes. of foundational transition

cause So we've that. and always fiscal Remember, And that also the expected. those talked and believe and transition about we've we out the impact of moving 'XX, it's are is all still to still talked this how about that on disruption playing those also going and as this we holds transition anticipated this track. and we into

year that and XX%, it's initial the terms -- Remember, again, point. room to our profile continue do that. very margin there execute to believe at for a though, and this that is next of continue to and beat raise on still of which have at to early In do cadence we guide early is to that

it's sure next given our the clarity address get guide are, better terms seeing, to And we're that top the year guide where revenue in providing that margin for expectations make and quite that the early is folks so line to of variability our the particularly really at time. this intent in both on

best can you the that this point. that's tell So at I

Craig Courtemanche

together in I We're to year? remarks, enabling We we're the putting this. And pleased the the this in is my with this in place. in Luv, getting really ramping. where to in process. hiring. is the by this as the about this all And of in territories is This mentioned to want is plans think teams really opening assembling This comp transition are and onboarding, end I quarter we stage. we there the are be I early heard add, the around I are But is done going X of with

plans not off, going released comp those to kick going until in be be of all are But territories is and which sales January. to

the team tell the the real starts internally, like I started. to actually So machine that's has the because that's then -- when when work

will ready year, definitely this will but X getting it done be be done. Phase So not of us

Operator

We Kalia now have Saket with Barclays.

Saket Kalia

to stay on Tooey, transition. just go-to-market the maybe

but prepared many you remarks, but a how And I really of this minimizing how you're talk I year, where brush, be for you estimates brought salespeople sort sort about of of that the can planning we next want the just Sorry if we're of thing perspective, next course? broad the in smart doing quarter disruption manhandling disruption? do think minimize year? by on to missed year, on of from tactical it end how the you

Craig Courtemanche

Yes.

too But roles Saket, net going the So It's a couple it's I'm not mentioned of here. new. annotate as which and of opening heads the probably there's remarks, to to just that. go many into and all detail hundred of in how I many

it. work lot But is it so it. there's of and we change a manage And that amount into considerable a of goes how

we I it plan what people understand a manage doing. doing what is us how starts with that great and but add why communicating really Howard going to is something -- plan then happening, and -- -- the we're to so not think but only effectively we're

Howard Fu

now. are into of doing January. these not comp particularly things of plans, around lot Yes, that mind Keep technical going like planning right of GM a we're roles. brought making effect structures are is of part That's changes, the Communication enablement, folks and the in organization the actual territories until and what sure to take a the and absolutely. design process and that that definitely compensation sake,

want to to really it's nature so human And ahead. look

doing of prepared year. sure making this being And quarter early to the X/X that and also make bring biggest we so get on the participate delivering communicate they're and the to really that. looking in for we which balance to but folks ahead through evolution QX, part is of sure to what focused is have into of we're fold which that still

us. for focusing on is so key And those really communications enablement

Saket Kalia

that's topic, just prudent. think it? touch can on What's about and Groundbreak, for hear more been I'd on Maybe at sure a you I'm different how Pay? you really I feeling a love my but Procore No, but to the totally we'll you're reception preview? give us follow-up

Craig Courtemanche

be Pay. platform. not It when going waned had lot that any Groundbreak it's I'm has win. Groundbreak's about. last about remember, to talk all thing divulge measure. I happy I Procore, that much think there very you reason about. too another just Yes. is is over the But you the in would by to spot that we enthusiasm Procore customers all we is on announced last we're XXX we was of which going to bright And told a still not as big And we why in QX a say because the

Howard Fu

I excited Saket, year the both -- to very, it's still year. it. And say impact we of terms and about this very And next minimal just in that got are financial -- but for

Operator

We now have Brent Bracelin with Piper Sandler.

Brent Bracelin

appreciate really I Howard, year. on the preliminary look next

Any about did XX-XX? you year, here, here? that sort being two the internal did is of bake put look how the the on weight Just trying challenges it Is majors. it external think we As XX% XX-XX? go-to-market guide overhaul challenging? you you How I'm as headwinds think, next you the think into curious have given about much color versus preliminary to

Howard Fu

Yes.

demand through In are now right anticipating this terms the year. we've that that year next we external environment of still challenging seen environment, continues the

that in of we've that, we've and contemplated is But the now we've got to how beyond under an tracking is another how major what got against good. executing -- internal that was that standpoint pieces which our guide. a quarter quarter just over that factor we're we're belts the from foundational So

early typically the above of that that we in and then in how to. floor of is year. And confidence which again, it fiscal just have an it's that within had fiscal earlier, a we several guidance terms and a incremental considering making sure 'XX we that And what level is conservatism way It's months achieve we what incremental in being really say we'll that guide. would terms do the of progressing, we're I'll it apply really, expected

Brent Bracelin

step a external have take guess, I Tooey, these you back we then challenges. here, And just as

make some still got digits overhaul. you're You next But challenges double internal year. going grow to the as go-to-market you

mean that best-in-class You folks another turn cyclical potential But best Is hopeful. wait when tailwinds are your years? we you to guess turn the us another talking headwinds see I more slightly here. gross start actually at X through headwinds your love XX%, best XX% you. you're walk some of still have it to I guess What's a into retention, framework to this tailwinds? do year? for point can windy

Craig Courtemanche

job. know one wish answer to rapidly I I me changes answer or knew I because in would entire about different probably life. my direction, be I that that having this Brent, say mean way one -- a doing think I worked let Nothing I another, -- Yes, industry really. into

it. I kind the a past But or optimism say of short our optimism. more. industry period I I and And is bit would always rate in little selection, at think not short so It's a right? couch increased moves if should a difference exuberant it's time. to got such there It I that's have make pace will don't a term we level of fast still -- this the get optimism going incremental couple you that with is huge cuts, a So optimism, the more that

market our bit will hoping an that was optimistic I we COVID when get say, like time, during know looks something the someday are that. and like, we we back looks But something to the -- wind back, to a what little at

Operator

Adam We Borg Stifel. with now have

Adam Borg

Tooey. about think your Maybe that earlier versus the sell I next year. year. go-to-market how incremental over time look about as mix more from quarter we evolution status bit opportunity past, then I think have in and opportunity I earlier a kind platform of kind the of growth we've to And a little the about talked quo do been adoption. this further penetrate and has the things How the how about come appreciate to do and of the In you lot ACV of only for customer think think the to to module evolves base?

Craig Courtemanche

making a this products. Well, believe sell we is project management, do lot that we driving effectively, one change, that behind we adjacent that of it our the why when of products is the demonstrating forces big value Adam, we're to of

create we -- do of are then share go that changing our the be more these tiger the for and So customer-centric us, the at of to to value different helping market effective teams way products. really really

managers, to selling organization. we're an CFO. used project -- now the to BDC the to selling Because remember, just We're safety the we head of sell to right? We're now selling the department. for We're down

sales So are all motions these specialists. they and require unique

new believe this to weighted that's for will the more volume we us, change. long for we towards because when a comes new fruition that, were definitely towards product mix going model time, heavily increases really and to move So

Operator

now have Becker with Blair. We William Dylan

Dylan Becker

owner here for equation called could kind bit the you to the -- So either. front-run it side of you ample deeper Groundbreak the maybe starting But a of dive since opportunity on out not ample large there? we from do kind feels it developers, is enterprises? I there's general as perception that global bucketed opportunity Because the CapEx of about think largely like as think kind there's other you but of

Craig Courtemanche

this No, the built. people enough By topics business. my don't very of we've favorite owners give that because Yes. proud of owners the for I'm one way, our business absolutely. credit is us

right? represent So is right that's XXXX think you think A small way developers. some them it. estate great I I portion of and the real Fortune the owners form usually to tell And yes, those Procore. of all people of for think X,XXX way of a -- of are can do All they about opportunity of such owners, owners, now,

frankly, the hospitality, an into where folks And owner. every And project into into money get are as working owner the than more with. has get get then well. sector, has Every pub university, contractor you you owners you they're those

large very, to to going already tremendous -- more yield, be area So all going -- it's sectors. area just is very those across yes, think, and where But a doing to great opportunity I success it's of we've results. an in where demonstrated me, just an is

Dylan Becker

sticking ensuring bringing that you job right, give those board have over these more right these of maybe aggressive helpful. on hiring, you the getting guys maybe differentiated of how cadence guess really exceptional talk you, sustain people bringing such sense from with here, maintaining we more coming And kind to of on of That's about as Tooey Okay. board. general a then I about as teams we us think the where an that the culture years? building done kind importantly, of and people are you're maybe you're

Craig Courtemanche

there. I'm that new you Dylan of a hiring attract know starts class, right, been in of get and to the process caliber the heavily process. every up the it by involved and meet glad that with the I lot , Yes, way, and brought been with remarkable. our starts folks always really process to quality because I've are folks values. onboarding our in we're hiring that has this the just you're able all But with our

we hiring we values who people are the people make that interested will the we're sure that for solving problems And to and smart serve. industry Procore people live very, hungry, in humble are very that and the and that

And fortunate. so we've been very

a elsewhere. really best coming So sales kind brightest. some for industry, They the some them over. the come from come are other folks, are organizations these of from of We lot from looking of and of all them

through in. brought the about we've and so talent hiring gotten we caliber very the quality And but excited with numbers, or of that the the I'm more happy how

underneath also the the all building new. are has too, now. will team. manager done their by Larry year. and net all end out be wonderful general done And of in place job a them in should say his XXX just I this isn't place folks teams those are almost Those

some so in is that and as frontline And leadership optimism. plan, to to all part of well the -- are right the as the that is work the going bringing and game, great place folks the be doing right in getting progressing it gives me

Howard Fu

is of that culture when critical these standpoint, in around I'll caliber proverbial in of in. amount of terms have doesn't the and integral is foot standpoint and orchestrated process Dylan, transformation thing individuals from this we that a door. tremendous There's the that we stop step provide add, other only the success The folks a organization to enablement bring to and that the the

component. one put these And all together. components not it's so It's just

Craig Courtemanche

I've enablement And Dylan, the by all of made we team entire new our through. make sales way, through go leadership all that the and of go myself my hires

our dog eating food. So own we're

Operator

have now with We KeyBanc. Jason Celino

Jason Celino

So question on maybe one quarter. the

budge able So really it. CRPO of level of what if was think XX.X%, to XX.X% you're maybe disruptive in anecdotally like know changes but or didn't from to It's go-to-market kind quantify, quarter. last impossible quarter, growth, about the

Operator

your patience. Please standby whilst we for reconnect. Thank you

continue shortly. today's call We will

connected. speakers our have We

Jason Celino

the me Did you guys want to say again? question

Craig Courtemanche

Yes.

Jason Celino

Okay. Perfect.

growth a budge CRPO you saw from XX.X% the last quarter, quarter. really in So didn't

to changes, disruptive themselves were good? with the So guess, looks quantify numbers any way these pretty go-to-market they because how I

Howard Fu

sure the -- is 'XX. some continue going are things The anticipated. the and be are from we of things into may -- disruption that expected it's to as impacts. as talked we to make seeing Look, Yes. But just proactively QX. as progressing that But standpoint, on that a is the seeing -- that progressing it's sequential continue to in and but in QX. expected there's about those we before, addressing reflective anticipated, And CRPO we disruption, Jason, terms into to we're that, be we going I fiscal focus still we noise not of are going that's

Jason Celino

those know growth, that then revenue RPO tie Okay. we out-year an Excellent. and together. they correlated, And are

is next a this outlook is think QX? initial this XX% your how for of floor also So appropriate for growth to kind it maybe framework about this year, think to

Howard Fu

QX, I the is a that to which it. said is that take main re-extrapolate think that's you right think And would that I it's can we you what reiterated, and to think X. in XX%, think and imply the thing I way what about

Operator

now Altman We Nick have Scotiabank. with

Nicholas Altmann

seeing more the a but days it's some guys of you with remarks, international know reps and it's prepared how just your share about resonated can early you're I talked XXXX kind maybe in with leaders. a go-to-market resonating encouraging maybe the maybe resonating perspective? dynamic, kind base? on of But it's Tooey, customers' it's bit how installed how changes, how signs Awesome. the share and from little it's of you

Craig Courtemanche

the excited customer their about this No, just I'm really glad lot A customers centricity. are I've our talked because a that of customers asked get you question and our lot to obviously feedback. about

our We how the cases makes about that right a customer we're is test the it one we was site and and time them have this people we and successful. fact that running the on be them a -- talking to bring at with help today resources, of that difference surround that what right

and a much more it's coordinated And engagement. kind of just purposeful

customers for more it. Procore they're and the with I -- for -- to -- perspective, is their really Procore negative, great So realize from every and which yes, to going of value it's more imagine them. resources, be excited day, They but can great about anything getting they're heard out dollars are they're get spending you have not the able

Nicholas Altmann

module the for the in than the a Great. then on particular the back going what think And X I changes that customers opportunity side term? drive near customer or driven the has GC found little expansion? to being Maybe really historically you question just impactful the to a think of the subside? on Is little the the changes, back more bit owner expansion. can top I Adam's And to where side prevalent to more be upsell stakeholder there wanted is any you the When X owners. circle then about the bit interesting. go-to-market

Craig Courtemanche

Sure.

matter when any It if owner, starts specialty doesn't talk there's stakeholders, that about than with stakeholder one an customer you particular GC not more benefited a or contractor. no, the customer. others had because So it's centricity the

look many more to the us it when I as any comes ones. than being one stakeholders of more or more products any then cross-sell, interested at other And buying susceptible wouldn't in from

make should Our we're reasons products. a offering. why understand products that kind stakeholders it's we very our And of our different the stakeholders. -- value there's more help are to all And the lot them them buy of responsibility Procore

Howard Fu

across it think our adoption. is and way that of of Howard. geos sections their I cross about stages digitization in there's segments are The is maybe this stakeholders different and Nick, and at different terms

that see of modules additional eventually to transition that there's start look business, at -- a start into you cross-sections and and you'll the opportunities you'll all when the then volume typical is progression small then across expanding different across set and and new of they'll into so logos they'll are with transition maybe products see there's them. stages, And then different

Operator

Panigrahi Siti have Mizhuo. final We from a with question

Unknown Analyst

calling Siti. for Samer is This in

the sense of hire XX% QX. roles to the the mentioned -- need in as plans. XXX% expect the And in you these to do challenges wanted [indiscernible] to productive? a productive? of all is, quotas like new Just take sales -- fully reps be were you to you along talent for hiring second you side you're you able to DTM and or But you sales especially that see mentioned for technology that like reps get when any Are be part long in have you'll You signed things? are like does that the how it

Craig Courtemanche

Yes, sure.

in So bright challenges we're not for us. any Sameer, That's big to that any spot seeing, a particular roles we're very trying fill.

rules people industry. roles, technical interestingly were -- On the from technical those hiring for enough come

in which understand fundamental base they problem the a helping very basis, to So solve they're at actually for.

a users. of cases, In they're lot Procore

the very as And understand effective customers products. they're speaking problem they that very, to about about to prospects So well. at these and solution actually

So in hiring particular no, general, no on the front. challenges

Howard Fu

amount and to of a seen Yes, out we've hire. as gone to enthusiasm roles tremendous we've these receptiveness

your question there. issue To about I these when will be an So think folks there's granted? don't

as that get folks as the wanted start of next shorter go times segment segments, to bit to and in. enterprise and the that are those Obviously, that longer, the get and possible ramping, more we started they as -- mid-market as of started little get into well ramp start ramped the make is on are part and on going going sure and on to we middle this It's those depend they're we they the [indiscernible] that year get year. down early to of when get you you they the be board so to in a go into why reason

Operator

call, from may thank you that call. does of your enjoy I conclude and And session. disconnect now all today's today's can question-and-answer rest day, you today's And confirm the for please joining.

Procore (PCOR) 30 Oct 242024 Q3 Earnings call transcript