PROCORE(US:PCOR)2025-11-06 21:05Customer Growth and Retention - The number of customers contributing over $100,000 in annual recurring revenue (ARR) increased from 2,261 as of September 30, 2024, to 2,602 as of September 30, 2025, reflecting a year-over-year growth rate of 15%[148] - The total number of customers on the platform grew from 16,975 as of September 30, 2024, to 17,623 as of September 30, 2025, representing a year-over-year growth rate of 4%[148] - The gross retention rate (GRR) improved to 95% as of September 30, 2025, up from 94% as of September 30, 2024, indicating strong customer loyalty[149] Financial Performance - Revenue for the three months ended September 30, 2025, was $338,851,000, representing a 15% increase from $295,885,000 in the same period of 2024, with 77% of the increase attributed to existing customers and 23% to new customers[181] - Revenue for the nine months ended September 30, 2025, increased by $123.7 million, or 15%, compared to the same period in 2024, with approximately 56% from existing customers and 44% from new customers[188] - Gross profit for the three months ended September 30, 2025, was $270,089,000, a 12% increase from $240,931,000 in 2024, resulting in a gross margin of 80%[182] - Gross profit for the nine months ended September 30, 2025, was $772.0 million, reflecting a $71.1 million increase or 10% from $700.9 million in 2024, resulting in a gross margin of 79%[189] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $285,119,000, compared to $277,428,000 in 2024, reflecting an increase in sales and marketing, research and development, and general and administrative expenses[176] - Research and development expenses for the three months ended September 30, 2025, were $88,049,000, up from $80,791,000 in 2024, indicating continued investment in product development[167] - Sales and marketing expenses for the three months ended September 30, 2025, were $144,290,000, slightly increasing from $141,370,000 in 2024, as the company continues to invest in customer growth[166] - General and administrative expenses for the three months ended September 30, 2025, were $52,780,000, compared to $55,267,000 in 2024, showing a decrease in this category[168] Net Loss and Income - The net loss for the three months ended September 30, 2025, was $9,101,000, compared to a net loss of $26,388,000 in the same period of 2024[176] - The company reported a loss from operations of $15.0 million for the three months ended September 30, 2025, an improvement from a loss of $36.5 million in 2024[203] - Non-GAAP income from operations was $58.6 million for the three months ended September 30, 2025, compared to $26.3 million in 2024, reflecting a non-GAAP operating margin of 17%[203] Cash Flow and Capital Management - Cash, cash equivalents, and marketable securities totaled $727.9 million as of September 30, 2025[205] - Net cash provided by operating activities was $185.3 million during the nine months ended September 30, 2025, despite a net loss of $63.2 million[214] - The company generated positive cash flows from operations in recent years but continues to report losses, with an accumulated deficit of $1.3 billion as of September 30, 2025[209] - The company authorized a stock repurchase program on October 29, 2024, to repurchase up to $300.0 million of outstanding common stock, with 1,903,527 shares repurchased at an average price of $67.67 during the nine months ended September 30, 2025[222] Strategic Initiatives - The company plans to continue investing in technology innovation and product development to enhance platform capabilities and attract a broader set of stakeholders[155] - The company has made strategic acquisitions, including Novorender AS and Intelliwave Technologies Inc., to enhance its product offerings and market position[156] - The company has a balanced capital allocation strategy focusing on organic revenue growth, accretive mergers and acquisitions, and returning capital to stockholders through stock repurchases[220] Market Conditions and Economic Factors - Macroeconomic factors have led to cautious customer spending, impacting the annual growth rate of cRPO, but the company continues to monitor these influences on its business[159] - The company does not anticipate material risks from interest rate changes due to the short-term nature of its investments[229]