Question-and-Answer SessionAll right. So we've had a front row seat as Procore scaled from $500 million to $1 billion plus in revenue. What were some of the key learnings along the way? And what do you believe will be the enabling factors for Procore to capture the next $1 billion in revenue?Matthew PuljizVice President of Investor Relations I have never worked at a vertical software company before Procore. I was in horizontal software. It is very different. You're going to hear the word customer and custom ...

Core Insights - The article discusses the author's transition to independent investment research after over 43 years in the industry, emphasizing a focus on actionable investment insights rather than adhering to external agendas [1] Group 1: Investment Philosophy - The company specializes in rules and factor-based equity investing strategies, prioritizing human intelligence over purely quantitative methods [1] - The approach combines factor analysis with classic fundamental analysis to uncover the true story of a company and its stock, focusing on future potential rather than past performance [1] Group 2: Professional Background - The author has extensive experience covering a wide range of stocks, including large cap, small cap, micro cap, value, growth, and income [1] - Previous roles include managing a high-yield fixed-income fund and conducting research on quantitative asset allocation strategies, contributing to the development of Robo Advising [1] - The author has also edited and written stock newsletters, notably the Forbes Low Priced Stock Report, and served as an assistant research director at Value Line [1] Group 3: Commitment to Education - There is a strong emphasis on investor education, with the author having conducted numerous seminars on stock selection and analysis [1] - The author has authored two books, "Screening The Market" and "The Value Connection," further demonstrating a commitment to educating investors [1]

Core Insights - Procore Technologies reported Q2 FY2025 GAAP revenue of $323.9 million, exceeding analyst estimates of $312.4 million, but faced profitability challenges with a decline in non-GAAP operating margin and free cash flow [1][5][10] Financial Performance - GAAP revenue increased by 14% year-over-year from $284.3 million in Q2 2024 to $323.9 million in Q2 2025 [2][5] - Non-GAAP operating margin decreased to 13% from 18% in Q2 2024, reflecting a 5 percentage point decline [2][8] - Non-GAAP free cash flow fell sharply to $10.6 million from $46.6 million in Q1 2025, a decrease of 77.2% [2][8] Customer and Market Dynamics - The total number of organic customers reached 17,501, with a 15% year-over-year increase in customers contributing over $100,000 in annual recurring revenue, totaling 2,517 [5][6] - Procore maintained a 95% gross revenue retention rate, indicating strong customer loyalty [6] Strategic Initiatives - The company completed acquisitions of Novorender and Flypaper Technologies to enhance its Building Information Modeling (BIM) capabilities [7] - Procore received the FedRAMP "In Process" designation, allowing it to sell into government accounts, indicating a strategic move into regulated sectors [7] Future Outlook - Management projects Q3 2025 revenue between $326 million and $328 million, suggesting a year-over-year growth of 10-11% [10] - The full-year 2025 revenue outlook is set at $1,299–$1,302 million, with a non-GAAP operating margin expected to remain between 13% and 13.5% [10][11] - Management emphasized a conservative approach to forecasting due to potential macroeconomic risks affecting the construction sector [11]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________ FORM 10-Q _________________________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ...

Financial Performance - Procore Technologies reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, but down from $0.39 per share a year ago, representing an earnings surprise of +45.83% [1] - The company posted revenues of $323.92 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.00%, compared to year-ago revenues of $284.35 million [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $327 million, and for the current fiscal year, it is $1.14 on revenues of $1.29 billion [7] - The estimate revisions trend for Procore Technologies was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Procore Technologies belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Total revenue in Q2 was $324 million, representing a 14% year-over-year growth [22] - Non-GAAP operating income was $44 million, with a non-GAAP operating margin of 13% [22] - Current RPO grew 21% year-over-year, while current deferred revenue increased by 13% year-over-year [23] Business Line Data and Key Metrics Changes - Strong quarter for new logo ARR growth, particularly in general contractor, owner, and public sector segments [23] - The mix between volume expansion and product cross-sell improved to 70-30, with cross-sell increasing primarily from the Financials suite [24] Market Data and Key Metrics Changes - International revenue grew 13% year-over-year, impacted by currency headwinds, but on a constant currency basis, it grew 16% [22] - Significant new customer wins included major players in various sectors, indicating strong market demand [12][15] Company Strategy and Development Direction - The company is focused on a go-to-market transition aimed at efficient growth and deeper customer partnerships [6][20] - Innovations such as Procore Helix and AI-driven solutions are positioned to transform the construction industry [9][10] - The company aims to capture a larger market share in the under-digitized construction industry [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of construction, driven by technological advancements and customer demand for automation [11][12] - The company is on track for solid operating margin improvement and aims for higher margins in the coming years [26][27] - For Q3 2025, revenue is expected to be between $326 million and $328 million, representing year-over-year growth of 10% to 11% [28] Other Important Information - The company has achieved FedRAMP designation, enhancing its ability to serve federal market segments [19] - The management team remains committed to improving profitability while maintaining growth opportunities [27] Q&A Session Summary Question: Customer adoption of AI and platform unification - Management noted that customer demand for automation is high, and they are seeing unique challenges being addressed through the platform [32][36] Question: Go-to-market changes and productivity - The transition is progressing as planned, with improvements in conversion pipeline and deal cycles [40] Question: Rule of 40 expectations for next year - Management confirmed that improvements in the Rule of 40 will primarily come from profitability rather than revenue growth [62] Question: Data maturity and customer volume - Customers are increasingly recognizing the value of unified data on the platform, which may lead to higher volume through Procore [66] Question: Free cash flow generation - Management indicated that free cash flow margins are expected to align with operating margins for the full year [78] Question: Impact of tariffs on customer projects - Customers have built resilience into their business models, allowing them to adapt to tariff-related challenges [84] Question: Product packaging and bundling feedback - Early pilots for product bundling are ongoing, aimed at streamlining the sales process and meeting customer needs [125]

Financial Data and Key Metrics Changes - Total revenue in Q2 was $324 million, representing a 14% year-over-year growth [20] - Non-GAAP operating income was $44 million, with a non-GAAP operating margin of 13% [20] - Current RPO (Remaining Performance Obligations) grew 21% year-over-year, while current deferred revenue increased by 13% [21] Business Line Data and Key Metrics Changes - Strong quarter for large deals, with 6 and 7 figure deals growing 21% year-over-year, resulting in over 2,500 customers contributing more than $100,000 in ARR [5] - The mix between volume expansion and product cross-sell improved to 70-30 from the historical 80-20, driven by higher attach rates of the Financials suite [22] Market Data and Key Metrics Changes - International revenue grew 13% year-over-year, impacted by currency headwinds, but on a constant currency basis, it grew 16% [20] - Significant global expansion wins included contracts with major contractors in Japan and the UAE, as well as partnerships with universities and large utility companies [14][15] Company Strategy and Development Direction - The company is focused on a go-to-market transition aimed at efficient growth and deeper customer partnerships [5] - Innovations introduced include Procore Helix, which enhances AI capabilities, and a comprehensive portfolio management solution for owners [7][8] - The company aims to leverage AI to transform workflows and attract a new generation of talent to the construction industry [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of construction, highlighting customer resilience and the potential for technological transformation [10][86] - The company is on track for solid operating margin improvement and aims for higher margins in the coming years [24][26] - The outlook for Q3 2025 anticipates revenue between $326 million and $328 million, representing year-over-year growth of 10% to 11% [27] Other Important Information - The company has achieved FedRAMP designation, enhancing its ability to serve federal agencies and contractors [17] - Management emphasized the importance of maintaining a disciplined approach to spending while focusing on operational leverage [27] Q&A Session Summary Question: Customer adoption of AI and platform unification - Management noted that customer demand for automation is high, and they are seeing unique challenges that customers want to address through the platform [30][31] Question: Go-to-market changes and productivity - The transition is progressing as planned, with improvements in conversion pipeline and deal cycles noted [38][39] Question: Rule of 40 and margin expansion - Management reiterated commitment to margin expansion, indicating that profitability will drive improvements in the Rule of 40 metric [46][61] Question: Customer feedback on pricing models - Management indicated flexibility in pricing models, with a focus on meeting customer preferences, especially in the owner segment [51][53] Question: Free cash flow generation - Management stated that free cash flow margins are expected to align with operating margins for the full year, despite quarterly fluctuations [78] Question: Impact of tariffs on customer projects - Customers are resilient and have built flexibility into their business models to manage tariff impacts [85][86] Question: Product packaging and bundling feedback - Early pilots on product packaging are ongoing, aimed at streamlining the sales process and meeting customer needs [130][132]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Procore's Q2 2025 performance, strategic initiatives, and future financial outlook are summarized [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Procore reported solid Q2 2025 financial results, achieving 14% revenue growth, a 13% non-GAAP operating margin, and a 15% increase in high-value customers Financial Performance Summary | Metric | Q2 2025 (in millions) | YoY Change | | :--------------------------------- | :-------- | :--------- | | Revenue | $324 million | +14% | | GAAP Gross Margin | 79% | - | | Non-GAAP Gross Margin | 83% | - | | GAAP Operating Margin | (9%) | - | | Non-GAAP Operating Margin | 13% | - | | Operating Cash Inflow | $31 million | - | | Free Cash Inflow | $11 million | - | | Gross Revenue Retention Rate | 95% | - | - Number of organic customers contributing more than **$100,000** of annual recurring revenue totaled **2,517** as of June 30, 2025, an increase of **15%** year-over-year[7](index=7&type=chunk) - Added **195** net new organic customers in the second quarter, ending with a total of **17,501** organic customers[7](index=7&type=chunk) [Recent Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) Procore enhanced BIM capabilities via acquisitions, secured a federal designation, and unveiled product innovations at its Innovation Summit - Announced acquisitions of Novorender and Flypaper Technologies to double down on **Building Information Modeling (BIM)**[7](index=7&type=chunk) - Achieved Federal Risk and Authorization Management Program (**FedRAMP®**) "In Process" Designation and now listed on the FedRAMP marketplace[7](index=7&type=chunk) - Hosted Procore Innovation Summit and shared exciting product innovations[7](index=7&type=chunk) [Third Quarter and Full Year 2025 Outlook](index=1&type=section&id=Third%20Quarter%20and%20Full%20Year%20Outlook) Procore provided guidance for Q3 and the full year 2025, projecting continued revenue growth and stable non-GAAP operating margins Financial Outlook | Metric | Q3 2025 Outlook (in millions) | Full Year 2025 Outlook (in millions) | | :-------------------------- | :-------------------- | :--------------------- | | Revenue | $326M - $328M | $1,299M - $1,302M | | YoY Growth | 10% - 11% | 13% | | Non-GAAP Operating Margin | 13% - 13.5% | 13% - 13.5% | [Company Information](index=2&type=section&id=Company%20Information) Procore's conference call details, company overview, and contact information are provided [Quarterly Conference Call](index=2&type=section&id=Quarterly%20Conference%20Call) Procore will host a Q2 2025 earnings conference call on July 31, 2025, with a live webcast available on its investor relations website - Procore Technologies, Inc. will hold a conference call to discuss its second quarter results at **2:00 p.m., Pacific Time**, on **Thursday, July 31, 2025**[8](index=8&type=chunk) - A live audio webcast will be accessible on Procore's investor relations website at **http://investors.procore.com**[8](index=8&type=chunk) [About Procore](index=4&type=section&id=About%20Procore) Procore Technologies, Inc. is a leading global construction management software provider, leveraging AI and data for efficiency across millions of projects worldwide - Procore Technologies, Inc. (**NYSE: PCOR**) is a leading technology partner for every stage of construction[18](index=18&type=chunk) - Built for the industry, Procore's unified technology platform drives efficiency and mitigates risk through **AI & data-driven insights** and decision making[18](index=18&type=chunk) - Over **three million projects** have run on Procore across **150+ countries**[18](index=18&type=chunk) [Media and Investor Contacts](index=4&type=section&id=Media%20Contact) Contact information for media and investor inquiries is provided - Media Contact: **press@procore.com**[19](index=19&type=chunk) - Investor Contact: **ir@procore.com**[19](index=19&type=chunk) [Non-GAAP Financial Measures & Other Metrics](index=2&type=section&id=Non-GAAP%20Financial%20Measures) Procore's non-GAAP financial measures, free cash flow, and other key operational metrics are defined [Explanation of Non-GAAP Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) Procore utilizes non-GAAP measures, excluding specific non-cash or non-recurring items, to provide consistent and comparable insights into operating performance - Procore defines Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Income from Operations, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Net Income per Share as the respective GAAP measures, excluding **stock-based compensation expense, amortization of acquired intangible assets, employer payroll tax related to employee stock transactions, and acquisition-related expenses**[12](index=12&type=chunk) - These non-GAAP financial measures are not prepared in accordance with GAAP, and are presented for supplemental purposes only[11](index=11&type=chunk) - Procore believes that non-GAAP financial information, when taken collectively, is helpful to investors because it provides **consistency and comparability** with past financial performance, and may assist in comparisons with other companies[11](index=11&type=chunk) [Free Cash Flow Definition](index=3&type=section&id=Free%20Cash%20Flow) Free cash flow is defined as net cash from operating activities less capital expenditures, serving as a key liquidity measure - Procore defines free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized software development costs[16](index=16&type=chunk) - Procore believes free cash flow is an important liquidity measure of the cash (if any) that is available, after our operating activities and capital expenditures[16](index=16&type=chunk) [Other Metrics](index=4&type=section&id=Other%20Metrics) Customer count excludes business combination customers without standard contracts, with other metric definitions referenced in the latest Form 10-Q - The aforementioned customer count excludes customers acquired from business combinations that do not have standard Procore annual contracts[17](index=17&type=chunk) - For information on how we calculate gross revenue retention rate and annual recurring revenue, refer to our most recent Quarterly Report on **Form 10-Q**[17](index=17&type=chunk) [GAAP Financial Statements](index=5&type=section&id=GAAP%20Financial%20Statements) Procore's condensed consolidated GAAP statements for operations, balance sheets, and cash flows are presented [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(unaudited)) Procore reported Q2 2025 revenue of $323.9 million, a gross profit of $256.2 million, and a widened net loss of $21.1 million, with increased operating expenses Condensed Consolidated Statements of Operations (unaudited) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $323,919 | $284,347 | $634,551 | $553,775 | | Cost of revenue | $67,732 | $48,101 | $132,658 | $93,824 | | Gross profit | $256,187 | $236,246 | $501,893 | $459,951 | | Sales and marketing | $141,897 | $127,922 | $280,581 | $248,916 | | Research and development | $88,902 | $72,308 | $176,511 | $142,907 | | General and administrative | $55,655 | $50,792 | $111,313 | $101,810 | | Total operating expenses | $286,454 | $251,022 | $568,405 | $493,633 | | Loss from operations | $(30,267) | $(14,776) | $(66,512) | $(33,682) | | Net loss | $(21,089) | $(6,311) | $(54,078) | $(17,277) | | Net loss per share, basic and diluted | $(0.14) | $(0.04) | $(0.36) | $(0.12) | Operating Expense Adjustments | Expense Category (in thousands) | Q2 2025 Stock-based Comp | Q2 2024 Stock-based Comp | Q2 2025 Amortization | Q2 2024 Amortization | Q2 2025 Employer Payroll Tax | Q2 2024 Employer Payroll Tax | Q2 2025 Acquisition-related | Q2 2024 Acquisition-related | | :------------------------------ | :----------------------- | :----------------------- | :------------------- | :------------------- | :--------------------------- | :--------------------------- | :-------------------------- | :-------------------------- | | Cost of revenue | $5,868 | $3,683 | $8,015 | $6,156 | $200 | $161 | - | - | | Sales and marketing | $17,589 | $15,671 | $3,346 | $3,145 | $748 | $788 | $138 | $1,000 | | Research and development | $21,237 | $17,628 | $658 | $665 | $1,103 | $900 | $695 | - | | General and administrative | $13,718 | $13,961 | - | - | $462 | $494 | $166 | $563 | | Total | $58,412 | $50,943 | $12,019 | $9,966 | $2,513 | $2,343 | $999 | $1,563 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(unaudited)) As of June 30, 2025, total assets and liabilities decreased, while remaining performance obligations significantly increased by 30% year-over-year Condensed Consolidated Balance Sheets (unaudited) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $324,262 | $437,722 | | Total current assets | $912,520 | $1,099,879 | | Total assets | $2,004,101 | $2,101,371 | | Total current liabilities | $705,883 | $728,032 | | Total liabilities | $786,502 | $813,018 | | Total stockholders' equity | $1,217,599 | $1,288,353 | Remaining Performance Obligations | Remaining Performance Obligations (in thousands) | June 30, 2025 | June 30, 2024 | Dollar Change (in thousands) | Percent Change | | :----------------------------------------------- | :-------------- | :-------------- | :------------ | :------------- | | Current | $879,489 | $724,832 | $154,657 | 21% | | Non-current | $464,268 | $310,381 | $153,887 | 50% | | Total | $1,343,757 | $1,035,213 | $308,544 | 30% | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)) Net cash from operating activities decreased in Q2 2025, with investing activities using less cash and financing activities shifting to a net outflow Condensed Consolidated Statements of Cash Flows (unaudited) | Cash Flow Activity (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $30,828 | $58,695 | $96,856 | $127,840 | | Net cash used in investing activities | $(16,951) | $(146,626) | $(80,462) | $(151,296) | | Net cash (used in) provided by financing activities | $(5,424) | $15,757 | $(131,804) | $22,433 | | Net increase (decrease) in cash and cash equivalents | $8,453 | $(72,174) | $(115,410) | $(1,023) | | Cash and cash equivalents, end of period | $324,262 | $356,239 | $324,262 | $356,239 | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) Reconciliations of GAAP to non-GAAP financial measures for gross profit, operating expenses, income from operations, net income, and free cash flow are presented [Reconciliation of Gross Profit and Margin](index=10&type=section&id=Reconciliation%20of%20gross%20profit%20and%20gross%20margin%20to%20non-GAAP%20gross%20profit%20and%20non-GAAP%20gross%20margin) For Q2 2025, non-GAAP gross profit was $270.3 million with an 83% margin, adjusted from GAAP figures primarily for stock-based compensation and amortization Reconciliation of Gross Profit and Gross Margin | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Revenue | $323,919 | $284,347 | | GAAP Gross profit | $256,187 | $236,246 | | Stock-based compensation expense | $5,868 | $3,683 | | Amortization of acquired technology intangible assets | $8,015 | $6,156 | | Employer payroll tax on employee stock transactions | $200 | $161 | | Non-GAAP gross profit | $270,270 | $246,246 | | GAAP Gross margin | 79% | 83% | | Non-GAAP gross margin | 83% | 87% | [Reconciliation of Operating Expenses](index=11&type=section&id=Reconciliation%20of%20operating%20expenses%20to%20non-GAAP%20operating%20expenses) Non-GAAP operating expenses for Q2 2025 were lower than GAAP across all categories due to adjustments, with sales and marketing at 37% of revenue Reconciliation of Operating Expenses | Operating Expense (in thousands) | GAAP Q2 2025 | Non-GAAP Q2 2025 | GAAP Q2 2024 | Non-GAAP Q2 2024 | | :------------------------------- | :----------- | :--------------- | :----------- | :--------------- | | Sales and marketing | $141,897 | $120,076 | $127,922 | $107,318 | | Research and development | $88,902 | $65,209 | $72,308 | $53,115 | | General and administrative | $55,655 | $41,309 | $50,792 | $35,774 | Operating Expense as % of Revenue | Operating Expense as % of Revenue | GAAP Q2 2025 | Non-GAAP Q2 2025 | GAAP Q2 2024 | Non-GAAP Q2 2024 | | :-------------------------------- | :----------- | :--------------- | :----------- | :--------------- | | Sales and marketing | 44% | 37% | 45% | 38% | | Research and development | 27% | 20% | 25% | 19% | | General and administrative | 17% | 13% | 18% | 13% | [Reconciliation of Income from Operations and Operating Margin](index=12&type=section&id=Reconciliation%20of%20income%20from%20operations%20and%20operating%20margin%20to%20non-GAAP%20income%20from%20operations%20and%20non-GAAP%20operating%20margin) Procore's Q2 2025 GAAP operating loss of $30.3 million adjusted to a non-GAAP income of $43.7 million, with a non-GAAP operating margin of 13% Reconciliation of Income from Operations and Operating Margin | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Revenue | $323,919 | $284,347 | | GAAP Loss from operations | $(30,267) | $(14,776) | | Stock-based compensation expense | $58,412 | $50,943 | | Amortization of acquired intangible assets | $12,019 | $9,966 | | Employer payroll tax on employee stock transactions | $2,513 | $2,343 | | Acquisition-related expenses | $999 | $1,563 | | Non-GAAP income from operations | $43,676 | $50,039 | | GAAP Operating margin | (9%) | (5%) | | Non-GAAP operating margin | 13% | 18% | [Reconciliation of Net Loss/Income and EPS](index=13&type=section&id=Reconciliation%20of%20net%20loss%20and%20net%20loss%20per%20share%20to%20non-GAAP%20net%20income%20and%20non-GAAP%20net%20income%20per%20share) Procore's Q2 2025 GAAP net loss of $21.1 million converted to a non-GAAP net income of $52.9 million, resulting in a diluted non-GAAP EPS of $0.35 Reconciliation of Net Loss/Income and EPS | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | | Revenue | $323,919 | $284,347 | | GAAP Net loss | $(21,089) | $(6,311) | | Stock-based compensation expense | $58,412 | $50,943 | | Amortization of acquired intangible assets | $12,019 | $9,966 | | Employer payroll tax on employee stock transactions | $2,513 | $2,343 | | Acquisition-related expenses | $999 | $1,563 | | Non-GAAP net income | $52,854 | $58,504 | | GAAP net loss per share, diluted | $(0.14) | $(0.04) | | Non-GAAP net income per share, diluted | $0.35 | $0.39 | [Computation of Free Cash Flow](index=13&type=section&id=Computation%20of%20free%20cash%20flow) Procore's non-GAAP free cash flow for Q2 2025 significantly decreased to $10.6 million, primarily due to lower operating cash and increased capitalized software costs Computation of Free Cash Flow | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $30,828 | $58,695 | | Purchases of property, plant, and equipment | $(2,975) | $(1,874) | | Capitalized software development costs | $(17,226) | $(10,218) | | Non-GAAP free cash flow | $10,627 | $46,603 | [Legal Disclosures](index=2&type=section&id=Forward-Looking%20Statements) This section provides a disclaimer for forward-looking statements, highlighting inherent risks and no obligation for updates [Forward-Looking Statements Disclaimer](index=2&type=section&id=Forward-Looking%20Statements%20Disclaimer) This disclaimer addresses forward-looking statements about Procore's future performance and industry trends, noting substantial risks and no obligation to update them - This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, regarding Procore's outlook for Q3 and full fiscal year 2025, involving substantial risks and uncertainties[9](index=9&type=chunk) - The outcome of events described in these forward-looking statements is subject to risks, uncertainties, and other factors that could cause results to differ materially from Procore's current expectations[10](index=10&type=chunk) - Procore assumes no obligation to update any forward-looking statements to reflect events or circumstances that exist or change after the date on which they were made, except as required by law[10](index=10&type=chunk)

Core Viewpoint - Procore Technologies (PCOR) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The consensus estimate for Procore's quarterly earnings is $0.24 per share, reflecting a year-over-year decrease of 38.5%. Revenues are projected to be $311.47 million, which is a 9.5% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly reassessed their initial estimates during this period [4]. Earnings Surprise Prediction - Procore's Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.18%. The company currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, Procore was expected to post earnings of $0.17 per share but exceeded expectations with earnings of $0.23, resulting in a surprise of +35.29%. Over the last four quarters, the company has beaten consensus EPS estimates three times [13][14]. Industry Comparison - Another player in the software industry, Automatic Data Processing (ADP), is expected to report earnings of $2.22 per share for the same quarter, indicating a year-over-year increase of 6.2%. ADP's revenues are projected to be $5.05 billion, up 5.9% from the previous year [18][19].

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or a ...