PROCORE(US:PCOR)2022-11-03 02:52Financial Data and Key Metrics Changes - Revenue in Q3 was $186 million, up 41% year-over-year and up 35% organically when excluding Levelset's $8.5 million contribution [26] - Total Remaining Performance Obligations (RPO) in Q3 was $715 million, with short-term RPO representing approximately 70% and growing 40% year-over-year [26] - Non-GAAP operating margin was negative 7% in Q3, with expectations for Q4 non-GAAP operating margin between negative 10% and negative 11% [26][37] Business Line Data and Key Metrics Changes - Strong customer expansion activity was noted across all stakeholders and customer sizes, reflecting deepening relationships and significant growth opportunities [31] - Large deal momentum contributed to short-term RPO accelerating from 34% last quarter to 38% this quarter on an organic basis [29] Market Data and Key Metrics Changes - International revenue growth was impacted by foreign exchange headwinds, contributing approximately 7 points of headwinds to international revenue growth in Q3; on a constant currency basis, international revenue grew 40% year-over-year [32][33] - The U.S. business performed well, compensating for international performance and indicating substantial domestic growth opportunities [34] Company Strategy and Development Direction - The company is focusing on efficient growth, emphasizing the importance of expense management while continuing to invest in long-term opportunities [76][77] - The company is evaluating its international operations structure to improve productivity and expects these dynamics to reverse in the near term [33] Management's Comments on Operating Environment and Future Outlook - Management noted that customer sentiment remains optimistic about the long-term outlook, with strong backlogs in sectors like nonresidential and energy [11] - The company anticipates that while some sectors may face challenges, others will grow, reflecting a diversified customer portfolio [12][73] Other Important Information - The company is hosting its first-ever Investor Day alongside its annual user conference, Groundbreak, which is expected to attract over 3,000 industry leaders [9][10] - Recent executive team expansions include the appointment of a new Chief People Officer and a transition of the Chief Revenue Officer to a special adviser role [19][20] Q&A Session Summary Question: Comparison of current macro environment to March 2020 - Management noted that while there is some short-term concern among customers, overall sentiment is optimistic with full backlogs [44] Question: Demand environment by customer type - Management confirmed strong performance across all customer types, including general contractors, subcontractors, and owner operators [46] Question: Exposure to residential, commercial, and infrastructure spend - Management emphasized that the company is not overly exposed to any single sector due to the diversification of its customer base [50] Question: International strategy re-evaluation - Management acknowledged the impact of foreign exchange but expressed confidence in the long-term growth potential of international markets [52][54] Question: Update on materials financing program - Management indicated that the program is still in early stages and not expected to contribute materially to revenue this year [28][61] Question: Labor shortages and hiring plans - Management confirmed that labor shortages persist, but they are actively hiring and investing in talent to meet customer demand [102][103]