PCOR - Earnings call transcript Q4 2024 | Procore Technologies, Inc.

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Operator

Thank you for your patience and good afternoon. Thank you for attending today's Procore Technologies, Inc. FY '24 Q4 Earnings Call. My name is Reagan, and I'll be your moderator today. [Operator Instructions] I would now like to pass the conference over to our host, Alexandra with Procore Technologies. proceed. now may you Alexandra,

Alexandra Geller

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

and on financial conditions. macroeconomic other call this statements forward-looking things, made outlook, regarding, products, our transition, among operations, and Comments go-to-market geopolitical include demand, customer

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

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

to measures reports information to SEC. additional periodic of GAAP the financial investors. provide and to in is provided We'll measures also our non-GAAP with to refer reconciliation non-GAAP press filed certain our A release

let Tooey. the With me over to turn that, call

Craig Courtemanche

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

in California. by to begin heartfelt the to our devastating like condolences I'd all of So expressing those affected Southern wildfires by

were by in the world. fires, headquarter outpouring concern received the from deeply north of of Procore's Carpinteria safely we that While touched around the is we

deepest the lines. courageously residents first the themselves have on firefighters to we events, tragic and with endured front extend put remain the responders who communities who these gratitude and our the thoughts Our and

like I'd in to the quarter. Now our to performance shift gears

we proud several executed, bright how very than spots. expected with our year better are team notable We of ending the

include our than X- from We by and quarter, in million outsized the of contributing with XX% growth greater was in owners. and more highlights transactions. Some performance year-over-year, grew ARR all X led strong the than customers by $X booking number XXX X-figure which stakeholders from growth

of exceeded We our ahead go-to-market targets XXX count targets quarter And non-GAAP by margin points. the are schedule our for hiring. our the year, we and basis head for for expanded efficiency operating for

million strong generation, generated also of resulting and flow We $XXX year we see will another in we cash free believe this of cash XXXX, continuation in flow, trend. a

San in Extra expansions. of general Our In contractors. high-quality also Prism stakeholders, University was added largest including new one telecommunication our one across Canada's world's Space companies, and reflected adds the strength customer Storage and customers in all the we QX, the of Electric, of quarter Diego, largest

had with an Tutor the also as expansion well Fortune wins XX a refiner of major ENR a as expansion a Japanese major We brand, division with contractor. hospitality XX oil Perini, Mortenson,

the quarter. from of I'm wins particularly significant X proud X Mag

win quarter a marks which the X in first largest ARR but is The only Procore's new biggest our the customer, not history. of also deals X-figure in

of These their choose is When driven win to clear companies construction an wins complex customer, position a centers. leader and X-figure market ambitious expansion world's facilities existing substantial owners data the CapEx X their underscore their Mag second to partner technology. with by the grow they scale a The seek Procore. in plans reaffirms and projects, manage as the amongst Procore's most immense largest trusted

platform, Procore adding Zealand. in After In Procore and piloted a evaluation made QX, Abergeldie, New Procore construction leading with contractor and primary Australia a seamlessly value Another in their products. several thorough data by project and a and products the They they big project expansion this expanding they their in will efficiently the quarter volume management annual XXXX, management to was infrastructure of few ability projects, our XXx. solution improve more team harness power saw manage ERP comprehensive with their and enable internal system. their effectively their integrate reporting. their Procore's to nearly This expansion

These outside customer Day, logo and at of that of the we recent all the cross-sell wins volume referenced reflect U.S. Investor product growth our adds, new levers expansion, growth including

quarter this built year. We are new we proud as we've into line our that top this of head and momentum performance the

on reinforcing reflect our investments So on that to on foundational our related our I'm This as in I while year, focusing last delivered offerings. expand strengths strategic areas means enhance how our core. commitment core we've of and proud incredibly making

want I reducing an teams projects. highlight collaborate, risk, transforming landscape. extraordinary ultimately data driving opportunity potential unmatched forecast, efficiency, and foremost, to construction reshaping in our in transformative us unique how set, AI and of and value First data to to Thanks the AI construction and for by greater our the execute customers offers create

new replace processes with our existing trusted more customers and Last a Procore steadily manual AI-powered and tedious where year, we're customizable workflow, becomes only AI Copilot, and agents. as continue invest powerful Agents towards data future we Studio. working Agent power innovations will set insights, continued customers. expand to we And And actionable deliver like this add to in task and every with

within customers across why data not part important to their coordination but and which is we've Procore relevant connected construction just and The critical collaborative our me become shareable seamless across experience, expect is project process the strides, brings platform an associated is to great This that customer platform central strategy accounts. made AI connectivity. all of require a a we area incredibly stakeholders. Ultimately, another our to will is where ensure

points these of our You between can that accounts. go and connection the nerve think as fibers products

believe in important to released submittals. and an on of construction process first we our we exciting a is in drawings on will advantage for in to year, This supercharging competitive step connect delivering Procore. connecting the continue of a our nature serve connected as of we connected are and This very that part something platform a RFIs mission that the everyone represents global solutions,

Management, diverse other I'd host to highlights. better all innovations to and stakeholders labor, of materials, types brings a helping the together general and We all needs precision. Resource construction, We stakeholders those like solution subcontractors, equipment, customers of serve launched and more the resources few our first made share infrastructure manage so self-perform including with that a and greater contractors, civil efficiently of of

anytime, application ensuring also This and storage enables tools with supporting data, critical overall user experience the in Procore our which project with customers localization access project stakeholders customers performance in be for accessible and Zones, Maps, our are multinational customers We with with enhanced to Procore data We requirements. civil experience. seamless the view data provides which anywhere. for global map a all local greater processing consistency can like

purchased to We their also payments reap automated of the and having ended subcontractors. to beginning the customers benefits invoicing with XXX Pay more than year and

exciting, not be lines. project pleased to we Pay While with XXXX material revenues are its to remains given associated in this we momentum time rollout opportunity do and the expect incredibly and implementation

continually feedback feature our construction Over a and the commitment the needs. improving enhancements we to evolving and partnership testament deep their votes. addressing is This industry with past with released to our customer year, countless

projects. I our job sites the rewarding This the are visited updates the customers Experimental these the exciting, these to from seeing of all around world. job while otherwise is and Pier part many year, to complexity Reactor largest Lucas Sydney International Angeles was Barangaroo sites the most impact Museum the innovations known Pavilion by in Thermonuclear France, Harbor Listen, of customer sophistication Los in of as humbled and the in in some ITER, truly

I XX When years ago, the projects. started of will our some foundation I never platform the imagined for impactful become most world's Procore that

pull and to believe our was that continued customers. growth accelerate allowing our notable our is decision build deeper, line Of XXXX partnerships go-to-market to this We forward position lasting while course, top us us to another initiative going with for transition.

For these materials website. to changes, encourage you our Investor IR on more our details review Day on recent I

little on the to very We're we over by be roles into of quarters are with of most expected X and transition, fiscal end We're schedule filled hiring this pacing QX. well. ahead a

online, in half the New We sellers technical [ have and this plans are muscle and first been as building pipeline. ] of up the and year disruption building anticipate are our of working coming ramping sellers new generalists pop most the territories distributed, and together.

palpable work this our going January With from ensure as excited to share the new There's up platform kickoff to customers. our we team that we remain fired to feedback confident in was with teams, with focused partners, about sales said, sales seize ahead. lasting and success. do, but energy transition our the and executing our position opportunity enormous and vision model still on to that receive is I is am customers, to model the positive to continue new The operating Procore our

to lay foundation the like thinking about for we're XXXX. I'd how Now

We year and ahead. significant to our As we capitalize to the sales be, first this going shared opportunity to to driving momentum strengthening long-term position fully are to relationships us improving these believe into outcomes, be operational half This and customer go-to-market on that first, In over are strong new the for growth. model a opportunity, half. second to of the efficient We my the change at going going evolution. year key focus to XXXX. by complete transition is order achieving Investor Day, aim there's for to milestones

significant profitability excellence. In years, improvements, few continued there room is the My made second for priority operational but is expansion. have past margin we driving substantial

in to guiding goal the year, with we've We strides made a continued towards have growth execution. be we initiatives, balance further for we ability disciplined our business, margin are to and are ambitious Despite in committed expansion our substantial go-to-market this goals high-margin making underscoring investments XXXX. to that

only but of Procore certainly differentiator. we management believe our is last our greatest multiply to construction truly platform. value not this unified is is least and the platform, the And

do shared We the that built more so there what but at are much of exciting that we Groundbreak, can we proud we've here. announcements is and

amplify includes map power better the capabilities and connect to construction. our powerful in everyone going that serve and of platform road products and Our are

coming journey. we've incredibly our more ever connected, years customers and an things platform Procore's before. exciting working is a in to powerful experience Many deliver chapter This been intelligent for on than that product are together

incredibly wrap finished we are up, proud To how we XXXX. of

our that We drives to business our to make over come. now dedication, going their to building generations the who share turn and value grateful to trust our for to business and forever be we're impact on some customers a lasting are company, on employees Together, And refining construction our us. for industry shareholder Howard continued our for to one partnership, support performance. continuing to a I'm meaningful it while more continue deeply and their shareholders to

Howard Fu

our was and to revenue for QX QX for today 'XX. results, XX% cover year grew the Thanks, to year-over-year, margin year-over-year. QX of everyone like $X negative outlook XX% color would Tooey, representing on our I main operating Total financial joining include X%. topics full and business non-GAAP you fiscal and thank us. revenue The and was in international million, $XXX negative an million, income up operating additional

should this I 'XX. As momentarily, indicative discuss operating is of expect will for fiscal the margin not you

current XX% Investor Day. current grew we metrics, we described specifically made progress at levers In growth backlog respectively. XX% key RPO the Our QX, year-over-year, and deferred towards recent and revenue, strong our

the we have and we continued milestones in ahead, for in a share I as cash These long-term the term. sustained in goals. we both year, the towards per margin, profitability today metrics. operate For as stones saw long meaningful growth stepping runway And in and well improvements markets flow, expansion as just our tremendous near are long-term and look

let color additional Now share the on business. me some

from business. deal than had came new and quarter the the large with we less expected We quarter positive expansions, transition. from go-to-market disruption the generally a fiscal experienced our going fiscal ended deals areas and from Strength both pipeline, strong 'XX logos execution, 'XX. Tooey, strong you of from and into converted of As more multiple had in heard we momentum closed

the cRPO as cRPO primarily fiscal we go fiscal renewals, notable, this well early in saw significantly in QX have is performance of a positive This 'XX. which year-over-year. benefit, the we would growth mid-teens. us up also that renewals benefit considering sets believe in Without QX from We 'XX. been had growth grew early significant into

a 'XX. the From of our to standpoint, cash due be seasonal the profitability year. is timing flow investments expected fiscal and onetime lowest to and QX quarter various of operating This in was margin

was marketing did below map, performance in deliberate 'XX a product is go-to-market progress will interest including to driving 'XX from accelerate efforts, in attend initiatives our The both This fiscal other the fiscal margin contractors enhance outsized we Examples benefit Groundbreak. our driver fiscal and to while due additional prospects system road and margin opportunity into our to customers improvement to to initiatives still saw from onetime onetime various decisions years. primary readiness 'XX. that guidance. However, of the include unique supplement against come accommodation

margin commissions go payouts higher other we head that saw business our to to strong The in performance from performance bookings items secondary our drivers the targets impacted related market. including performance our QX, various as within related costs exceeding include count primarily well as and hiring the

Just margin you indicative the of operating should to for reiterate, this not 'XX. is fiscal expect

outstanding $XXX generated free weighted for We a representing million flow year-over-year X.X%. diluted in improvement by year, our XXX% shares while cash of the increasing average

to have profile paths in metrics. these managing the will term. thoughtful We optimistic improve confident be financial over We that our we of continue and very both long remain multiple to

per that largest efficient strong a team will industries We improvements. serving and are leadership the category prioritize world's of the and aligned with share growth focused leader one

to continue to let's go-to-market that transition. outlook. remind prudent to our move I navigate I on as like Before would in we we turn you With our be expectations guidance, to our that,

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

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

for the into will a XXXX non-GAAP year-over-year XX% be fiscal raising basis margin the and for year To with up guidance pleased for will our we and a XXX in momentum beyond. XX points 'XX. going wrap 'XX fiscal the believe which transition our basis initiatives and are year, we set between to how have points. XXX are between P&L operating year the stronger be We we and us strategic we expansion by up, margin XX.X%, ended implies year and

With over operator Q&A. for turn to that, it the let's

Operator

question first of Brent Sandler. Our Instructions] Piper [Operator from Bracelin comes

Brent Bracelin

very start in here Tooey, wanted wins had stabilization to like QX. in I and Great see large with sounds the you cRPO. on some It improvement you to out owners. owner

you XX% logo the only but think ARR -- at penetration. about talked business I opportunity owner as at the of X%

So the cycle this there like some of the feels momentum business? to got how see sustainable it down headwinds how into that maybe into in much QX. can lean in cyclical opportunity you is owner going 'XX 'XX. It offset you you Wondering some and

Craig Courtemanche

Yes.

the spectrum business and brought a want lot of you this with look, was the strength the to was Brent, which we internationally. off both in up owner's in be. setting -- business remarkable. continues though had the a owners, proud and table, I really we we had start So great that, it strength stakeholders because, I'm do glad to across though, very really, the did is it U.S. we the because of entire serve, I by that how

do and to the want owners So yes, we -- more on you owners, lot the but when will is opportunity segment huge, focus in over a there's time.

TAM. continue But more yes, and anything to Brent, -- lots we ENR than as will the is and really serving people Procore a -- something global sub, that and we and of is a fact focused the the This have any are actually XXX that what into how ahead I demonstrates, are is area We just opportunity into of scale. focus, lean owner on it leaning where That's GC have -- a it we that building think -- that. is an big business of it. our

yes, but just I'm special yes, excited So the what we've about done does it owners. with opportunity. very really segments illustrate with And all

Brent Bracelin

a segment. you. like for in Clear, here one broad-based, is follow-up it the not Howard, just strength quick sounds just

renewals? activity? the help prompted Just new some early the Was mentioned drove is what quarter. us from in there products some early renewals renewal to What renewals. tailwind the early You understand early that cRPO driving here

Howard Fu

it's a think areas, number I across Brent. of

partially it's back of think I of a executed we in the quarter. part function how well the

had that something with I think it. do to

it together And kind also of those and with it in that happy the things QX. to all performance performance of the in really to And transitions But we making We're lesser bookings we in limited we about terms TAM in bookings. think some think helped with very I in speaks disruption our performance. talked that I across I have. put QX. or transformations Tooey speaks of think we're what the saw happy actually the very us that making were yes, progress tremendous our of also

Craig Courtemanche

by of for board And across I the the way, want come Brent, to just proud execution quarter. just the do strong, really, really in was say so and I'm was something the it

player contributed great field and and through with creating every as execution. that player X- comes through comes that X-figure the the did need that year. And comes through have field renewals. and job, we So XXX-plus just on early every amazing on as That to an so momentum deals, the a

Operator

question Baird. next Our of Vruwink from comes Joe

Joseph Vruwink

all about to up like forward you how seeing? construction generally to generally tried hearing further lines spending indicators guess half we've And on I does Do from that maybe the it think some Of to or triangulate at proceed from most owners of owner's correlates indicators that macro those have the those over willingness second the this at doesn't mentality segment upcoming all, seem think interpret, the the delay move point? sentiment an improved around seem the abandon, if the year projects, not GCs year. you're it with you're does to

Craig Courtemanche

is that of that sentiment-driven. sense which to that did the XX look XX So you is think thing metrics X a focus one industry they're But these is say is couple X itself we to is true, One Joe, this of ever to would trying out not nuts the yourself Tooey. of you you'll on here. because at. about may just that I drive say, things do or absolutely -- make

get bad a an they're are But If people news, And things general, so in things if there's news, worse. election, sentiment-driven. good better. little bit about excited like get it's

this. will it's they always there's needs with increases, an built, I opportunity But ideal So solution do is the you them, for to could an for gets -- tell industry less. still built so productivity with searching right? for And Procore again, that's What get more Procore.

and So the in about opportunities. general, it is very remain we very sentiment-driven, excited

Joseph Vruwink

here year? great. deplete does later exit terms finishing. yourself any would sales did ended pipeline, Okay. that, on question how expected available the in it is the alter the maybe the quarter model just in strength you momentum under the in have fourth of make That's the you harder the way, in by bookings then new And just I strong guess QX,

Howard Fu

I actually -- this we is pipe. coming depleting it I have about strong out year. it Howard into here. and about strong think actually execution wouldn't of the year I going the as momentum actually as think

having on. QX, changes of that's this what that QX. really It's all. about the terms that, the road meets and in we're about at in the pipe QX we're rubber It's However, making and making QX go-to-market in in said we execution focused organization, depleting that the nail the not where and is really sure

Operator

DJ comes of Our from next question Hynes Canaccord.

David Hynes

on plans bit and been disruption How of given little badly sales potential in to mentioned for added? like just incremental could QX? with how much has just as field coverage are engagement? the didn't about And talk layer Like plan it Tooey, was you introduced coverage today when you materialize the as kind a you've SKO. pick are we about with your new that that thinking maybe customer the capacity technical it Howard at active narrower thread thought that up how reception sales to

Craig Courtemanche

Yes.

when what kickoff excitement extreme several doing. enthusiasm yet. nothing about had and really year, tell phase, quarters just again But let the bit, last across just sales all year, DJ, back XXXX was organization essentially there little which So ground was right? and theoretical several and of this story because the it hypothetical all the ago, weeks a announced up hit very this kind we So was we did But planning ago. remember, was and sales of the me we're

of benefit get who they're And they're from customers as excited are talked a and aware and transitions I to additional a well. that matter resources of this going these of lot fact, are as to going very to

to execution in where that's what earlier, into of we're really weeks the it. And hits but was rubber right? the Howard -- now we're road. a So And saying the phase, only couple

figuring And so teams that how together. have still to are we out new work

accounts that some dinners and building steak just But We airplanes and they're have are getting on getting and and folks started. on shaking pipe hands new focusing and their all. buying

couple we're it. investments to we start So second making of healthy But dose these we're really are carry all paying the believe half firmly we're to next going a changes of of of going skepticism year, quarters. about this the by and that off and excited over

David Hynes

Yes.

shape gets that think maybe Is bit QX commentary growth a And then Howard, think about for little the how into bridging to looks starts it Okay. to by you you and Is then, just XXXX. worse full kind QX, probably growth in right XXXX year to of QX? gets year? you're where think right which about reaccelerate to similar that the that that the rate guiding way that in

Howard Fu

will productivity definitely up just we also the I'm the the will year. through to productivity and start towards start we'll part pick think like. the the the see but is of as looks that shape to in that towards in back what some not comment QX intent pick head back productivity start we get the going you on the execution and pick up, up to see seasonality of year. actual part to of DJ, start to bookings But this I QX, the not as

Operator

question next comes Our Jefferies. Thill of from Brent

Brent Thill

account trying guess, that to XX%, decel 'XX? cRPO I motion you're Howard, really to gear? sales the for get something into see Is just Is explain taking the that a delta. else into there good into the to big guiding that to XX%.

Howard Fu

question. good the Thanks for question. Brent, Yes.

the minus typically, plus growth points the that growth. cRPO renewals. or around lot cRPO want have to revenue with couple early everyone, those cRPO in first in is the growth thing QX I growth magnitude renewals, XX% a mid-teens. of early And our reason the just would of the had at is is without So do to And a remind that that been

Specifically fiscal 'XX for XX%, additional talked raise. the that And applied also have the revenue it fiscal on reflects at guidance versus 'XX for for in a is year level full we of it conservatism an going or And through a now of transformation what what transition go-to-market 'XX. we because we about that's which did that that already, lot in is on right actually fiscal side. are we've the

And of there's I that come a need from together. lot where moving sit, still pieces to

We are a on more But ahead hiring, and terms it we're of in the in rubber bit really meets guiding. plan the terms well. when doing what cautiousness of put we're road, you little of just of

So conservative this little we're year. year guiding a more bit than last

Operator

next from Barclays. Our of question comes Saket Kalia

Saket Kalia

Great. the year. to Okay. Nice finish

Craig Courtemanche

Saket. Thanks,

Saket Kalia

it some Tooey, Tooey change just -- the the hear about And yes, are since mean, early you've just to a those just feedback continue differentiating product adopters up Procore for to out winning? versus usage you how sort you -- Pay second. customers of got It thinking how you and great Maybe from on maybe are now, to for grow. it's a of number question here was is there? decent the how that incumbents absolutely. sample just of any I on size -- on

Craig Courtemanche

thank this one. on Yes. the Well, heart. an you area me dear, near that's and for teeing is to obviously, way, up my by This Saket,

happens isolation. managed an in loving our into of platform primary the fact the are that all fact gets is before we're long payments the platform. lot payments a last go on and paid, now on Because on platform, this it the it with we're Procore the never attractive just is compliance the that can mile they is customers our that invoice, for But do that learning pieces of not a driver payments. a and -- So customers

in it is place having one all great. So

We are is a frankly, pleasure that other also to will to maybe use. the some use where system pleasure imply not that are, modern stack technology ones and the like a

that of commercial we're and the end it's -- And customers strat users therefore, our capturing buttons it's and general, in what the have. we're clicking customers, are so the payments. And our our the minds enterprise we actually who are valuing all learning And fun. hearts customers, making

is we same wind started Now one at because have the to longer little everybody takes we time. a of get all accounts haven't the have to learnings onboarded. then up the And it projects these

patient, with also incredibly it. incredibly about we're we're we're optimistic but So where going

Saket Kalia

we early not follow-up. about Yes, super of my cRPO most those in to QX Howard, year we're of 'XX. cRPO visibility the have of of maybe shape but and going for sort cRPO. maybe 'XX, the those just just throughout renewals equally helpful. I coming question about absolutely. think renewals in to of should the the would know talk Appreciate the growth or the we in of kind renewals happened 'XX is try on on estimate That's you as shape for maybe that

Howard Fu

QX, long-term is that but our years in about it's we're QX, the about But top the think goals, QX we path early I on how is most both of performance the be it. some bottom think flow there Saket, would and what the line I Yes, in about in, and come this cRPO, may probably the fair to say the part the that of think across those year. have throughout and and multiple mid- that's When really we for when in towards think solving evolution would line.

So as to to this and optimize going to free grow top that the continue 'XX we transition market. this We're line. both into margins to And cash fiscal continue go going fiscal we're per the to going 'XX. benefit through and in balance share. bottom on flow transformation It's to we're or going

several to that available talked markets we next invest our terms And and the Day, we optimize what going we to about that in, remember, the of us the our profile the and we all is margin as that markets over also we that about revenue talked in different at all trajectory we about are years. what and Investor think growth solve for, of contribute what

Operator

Our from comes next William question Blair. Dylan Becker of

Dylan Becker

top here. line that of nice and the about trade-offs we of should doubling versus and line you It a on, margin half, a leverage just some you're you little how of kind between on that back there's kind if the the opportunity. early with seeing opportunity sticking growth see momentum of emphasis the sounds the job Really between that top Howard, on down think kind of point the inflect accelerate profile in expansion bit of Maybe, touched margin? productivity but like kind and continues to accelerating the

Howard Fu

Yes, good question.

thing. So per the for not we cash And is free do 'XX. in That's in first we optimizing share. and flow expand thing margins scenario continue 'XX the into actually first no to remember, are

so the of through growth different and thinking looks to 'XX. free the like, that, between going in that flow to And optimizing that's fiscal margin about growth the revenue we're makeup terms per what this. looks need how share what And really like 'XX balance to the the we're specifically of paths fiscal go see what in of of cash

Dylan Becker

it. fair. then That's Got you. totally maybe, switching Tooey, And over Okay. to

just aggregate obviously, center about on customers, we've and piece capital I You handful data customers, of ones. Mag $X did deployment about some the be of headlines larger, remiss I'd call centers, million enterprise there. your on the given what if X ask kind out markets plus, us didn't talked for a and but can deployment CapEx from know spend the I maybe end about in mean volumes maybe business. think data diversification across help the

Craig Courtemanche

have always we ask who's data the as to going to center Dylan, question. So a bet

data the question. center won you So

AI you'd our and me go I really Agents to talk strategy, data going yes, to ahead about you but I'd and I'm about -- centers. ask mean, I think that So wish

just yes, is charts. all the into look the centers mean, amount clearly, the absolutely I investment So if across of going the you off even hyperscalers, data

in that's the of economy. so And the strengths of one area the

there's really every But construction like for of remember, like a the I overall market. segment, commercial. counter X% And also say, strong it's segment only will

are be across I for going that's extremely doesn't all really, us one of And So in I've all There numbers really it's of it the large the in yes, but just that year. a tour the doing is by next way, to to an -- exciting. of things be it's right? But exciting. aggregate mean, spend I'm site segments for seen hurt, eye-popping terms piece of But this a opportunity week construction. one company, not Arizona named they're job

Operator

Borg Our next of Stifel. question Adam from comes

Adam Borg

what's about just the just was on as receptivity go-to-market revisit maybe ecosystem? the to the terms changes, of up or -- of a curious love go-to-market channel out Tooey, I'd when the even a building kind we just thinking about in in broader and that's the SIs the that spirit question here channel. think latest larger to building of I past think VARs we come from

Craig Courtemanche

not have do. these with know way, those around to as interested definitely It's a And as is enter we in area way this. the norm, Yes. course, are -- is largest something often. well. markets they be our and This building they that so part bear that around of purchased, in it's fruit practices look, privilege it's are brand they they're we'll talk to right? about relationships very when building who So plan when software an some a -- we're able going leaning of And big discussions, where markets, focus as Procore you solid that's the and by that but world, conversations we to the time, we will of a when heavily the long-term those on SIs as the that's be the new now, we have significant having

Adam Borg

just maybe quick as And follow-up, helpful. really Tooey. a That's

think even. new of -- length. terms growth, and softer. that's been obviously, logo of at talked in kind that We've about Howard maybe How do about Just we for

what's this for guidance quarters? here the in recent logo would about that? color what growth seen think in new we've any helpful. we with really be it Is underpinning Or as the that's line So year,

Howard Fu

those is. X- one to Yes. not we but where are going market. it's more as look business that's go. that, you more into drives And of indicative at, significantly we've something the we're where point $XXX,XXX are a actually count customer that now concentrated customer that our how forward. and back of and count it's how about talked growth that about going data Look, down and Adam, numbers incorporated business thinking And much more actually point figure the how is indicative our to of X- always I'd is lot

the why and to logo significantly that customers. the new that's focus lower. dollars, we But piece of that the -- yes, the drives we it's more implies the what will in something not I larger So guide manage point And towards on terms count business. be is you the customer remember,

Operator

BMO. next Our Daniel question Jester of comes from

Daniel Jester

about And about needle And benefit some around and folks that you Copilot and moving ask help I'll you're Tooey, them. bite, where to the using of get the they're you with us getting a the feedback think examples AI. I'd maybe the biggest getting sort love like. flavor early from the of

Craig Courtemanche

teeing the thank way, much, No, up. by for Yes. very you me

no, not using that I to it using So only way, -- am talking also the myself. -- I'm it do by yes, and customers are are

is you exciting. tell you So the search, questions right? -- the feedback of get opportunity really, instead back is piece that of you to getting it's is It's project what of do which Copilot a actually hear ask I'll when and list machine, back answer I the #X a of really giving answers, your links intelligent

to we're Agents building as the job. But able going configure are partner Agent their on own be you to agents where be is as of out on that, our work, our their customers all do to as going top our to the well Studio, to that own product

you, that numbers of instead going just -- countless to helping providing project So that of answers to your you project. manage to going on be being agents you're have are

time right? and in things money, budget, and schedule X matter, imagine, construction So

for your have a So monitoring but imagine and to you're not monitoring the future. that working customers your going going platform for things from are Procore the hours partners to opportunities be budget inside I countless think more day eyes And for is to monitoring going that our only you're have importantly, schedule, the margin XX/X XX our improvement on and are avoid the agents. that, to to project that look And risk. agents

that by only that's we is -- a have because the that's possible unified. way, platform And

this of customers. hands right drive our value all into the corpus We we of of that that have and can data

Daniel Jester

-- just any the maybe impact then you And And then, call quarter? out Howard, maybe FX, quickly, in just that

Howard Fu

very minimal. FX Nothing Nothing. out on call all. at Very, to notable

Operator

Our comes KeyBanc. Celino of Jason next question from

Jason Celino

all volume-based kind the and just the think pricing tariffs how if flows underlying captures us might with remind can through news of memories hand, Tooey, the the that business? other that inflation, affect on short I upside. we on model Procore But all maybe or but you project I inflate, this impacts know hypothetically have activity. construction costs

you periods? So you think prior through? or what Or it how XXXX see do did in flows

Craig Courtemanche

Jason. with Well, now, we're start what just let me seeing

of there's been ask of in to the The least having at a all these So I'm been that's is kind wait-and-see super because lots nothing and kind talk I I now, I that's conversations of questions, delivered. everyone course, right? time, from solid customers think consensus the of is

action are the don't it's And bluff so a if if not really if real. are taking -- people or it's -- definitive know there's they a because tariffs

ultimately, But industry this is resilient. super

And they're we industry talked and are if when tariffs, bit service. which we exciting like, itself even got other of around areas they I forget optimistic production, we're about industry be don't wind really be in that down, our data how always just results more I projects our about us." every pessimistic something where other what our can't a centers. about So going We've aspect farm mean and the worry industry I the "Oh, to the it's business the resilient talk there's election, doubling customers diverse is little these an we also just So of mention and it. about for may funny, your is how about to of -- sectors.

Jason Celino

you me? hear Can

Craig Courtemanche

Yes, got you back. we

Howard Fu

We got you now.

Jason Celino

Yes. Okay.

year. my of So the saw green upside ahead all for But yet QX, were it some any planning shoots too the still question maybe my of get go-to-market Or in but did want the sounds early is don't that swarming? from in from come? this to like you still just skis, performance Howard. changes to come I of through last

Howard Fu

as Those really the in really execution. are see of enablement, about change strong, a come. It still terms anything volumes The benefits to the speaks strong go like We that. to environment the We execution. QX story market in still get good back to didn't changes communication. competitive QX. dose through that of yet good we're the But of QX the anything in the is to saw approach making this and we're going we part we or when year of the see

it was stronger really And QX. execution about so in just

Operator

Gogolev of JPMorgan. question comes from next Our Alexei

Alexei Gogolev

you've are us give mentioned what in quarter? realize dynamics, to space. you're if are planning X performing how been update if may maybe feel an share continued leadership rates recent update not could win a ask those and the Tooey, the you I quarterly share basis top But your directionally, competitors. in you about you the probably market against the you you on I gaining us most that

Craig Courtemanche

and ways to best So a deliver are the where good best exactly people were we're kind told -- about selling just to rates And all in clear, update they're be of here's Investor are testament strong we win being they to And those so value against that so on you the But the it's our with not to our What at essentially data that's we Day it. news. -- the on we will to ability that. going you about -- at disclose product an of the strong. kind look not basis, to the of annual holding competitive market before. that market going

Alexei Gogolev

from understand Agents? clarify much among some to productivity or could and them? Or like educational that is just what exactly AI on talk And sales about get maybe out among benefit? the more still your they feel clearly on still do details these there customers significant when do is needed how they your some Is those there see confusion improvement you Understood. go is process your a products Agents, to customers

Craig Courtemanche

so I Alexei, forget would Well, construction. say about

about Forget Procore.

head. certain of think So possibilities you many I all going generative to pop their businesses I specifically as will their out eyes the to I agents a this, help to year tell conversation this them. of AI to you XXX% Agents, prospect be are when going think of that a kind of what they're right? a how don't around XXXX or with agents, But the of leverage there are can we out with and do have is about how customer that the able

new you put was head count problem that down. way could Because which into and remember, for on just to a the generally, their system that their only -- every add agent our drives payroll, they to solve margins

But they're it to So we're considerable point, this from there of is yes, a opportunity on. us for all in I like, amount together, And think their vantage bring frankly. community. like the educate

very exciting. it's yes, So but

Alexei Gogolev

results. great and Congratulations,

Craig Courtemanche

Alexei. Thanks,

Operator

Our from of McGinnis question next comes Taylor UBS.

Daniela Campo Gomez

This Taylor. on for is Daniela

like it in were So margin, it increased the the guide some operating just slightly like XXXX. came onetime sounds below for it operating there on And looks QX, expenses. income margin but in guide you

are see? you're could Or are there trajectory that upside? And that and limit investments XXXX annual largely the we through we from making potentially So could in the that? do that the more incrementally here of we level think expansion about how

Howard Fu

the thanks Yes, for question.

and strong. spend, was saw came asked decisions The said continue were that time business very So momentum, first made. seriously. trajectory yes. tremendous and a to we onetime our take they of and is margin and guidance seriously, extremely manage to We And thing QX, we the we executing we to over us profile these we of take also amount how our in

in And well. fiscal expand fiscal we expect fiscal to margins doing and potentially to 'XX our us as up walk still to by expand And even And so, leave it 'XX in room allowed operate ourselves XXX throughout to basis margins points. that in we 'XX. continue

QX response would going different question. -- my before and when only you, on fiscal the We'll what very see don't in you're I QX the expand QX. And not remember tell profile. is 'XX. I anchor number to we report in a margin other to margins said It

'XX well. margins fiscal We in will expand also as

Operator

will from Siti be Panigrahi Mizuho. question of last Our

Sameer Kalucha

talking was, calling Sameer for we're benefits Agents in had and Siti. whatnot. customers and This question AI I is and for Copilots about The

for what internally? AI terms for or from about of agents benefits how using Just you're tangible are terms internally is software development of in benefits or coming of functions. in that curious using How And AI kind marketing or along? seeing you leverage leveraging

Craig Courtemanche

Yes.

latest are we able leverage be AI technology. and So the as business generative excited to to a incredibly greatest

environments. I'm our Copilot. with right, Copilot, using these we're course, all development I'm benefits. days, and of using reaping the -- And writing So of I'm code actually we're course,

know first-hand you. yes, productive So I makes incredibly it how -- it's from it's -- experience a

So exciting. that's really

the it support leverage exciting And using department. business to it us this. get in touched looking get ways leverage there's best really in for an in modern the by marketing using technology And doesn't the is at Everybody it's most department. time. We're the basically most to that it. our We're area out our order of no of

opportunity. of lots yes, -- it's So

Sameer Kalucha

Any you numbers productivity margins tangible can be to point terms savings to in able or of or you're cost to improving going on drive impact forward?

Craig Courtemanche

but we product We don't be the there every customers. going of we're out don't I in But -- to has it's me, the of early, the there, pace obviously. comes any that that in put at and single have day that of maybe we yes, To any have too our also, some really that innovation you Procore will amazing to hands we're you disclose. that tell this, look of

anything and am So needs to that the help these something on industry why internally. things that's behind, XXX% the investing we're we do I of solve can that so is

Operator

session, you so the your conclude that Inc. Q&A now will the Procore That Thank Thank conclude call. will Technologies, you. for participation.

You line. may now disconnect your

Procore (PCOR) 13 Feb 252024 Q4 Earnings call transcript