PROCORE(US:PCOR)2025-05-01 21:00Financial Data and Key Metrics Changes - Total revenue in Q1 was $311 million, up 15% year over year, with international revenue growing 18% year over year [29][30] - Non-GAAP operating income was $32 million, representing a non-GAAP operating margin of 10% [30] - Current RPO grew 20% year over year, and current deferred revenue grew 15% year over year [30] Business Line Data and Key Metrics Changes - The company has over 2,400 customers contributing more than $100,000 in ARR, indicating strong customer retention and growth [11] - The average contract duration increased from approximately 20 months to about 21.5 months, with the proportion of ARR on multi-year deals rising from 38% to 43% [44] Market Data and Key Metrics Changes - International revenue growth was impacted by currency headwinds, contributing approximately two points of headwind to international revenue growth; on a constant currency basis, international revenue grew 20% year over year [29][30] - The company noted a steady pipeline and that customers have not substantially altered their plans despite tariff uncertainties [9][34] Company Strategy and Development Direction - The company is focused on driving digital transformation in the construction industry and enhancing its platform capabilities, including AI integration [10][14] - The strategy includes acquiring new customers, expanding volume with existing customers, cross-selling products, and international expansion [19][20] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term growth despite short-term headwinds from tariffs, emphasizing the importance of productivity gains and risk management [12][18] - The company is maintaining its revenue guidance for the full year, expecting revenue between $1.286 billion and $1.290 billion, representing total year-over-year growth of 12% [38] Other Important Information - The company is undergoing a go-to-market transition to build deeper partnerships with customers, which has been well received despite some initial disruption [25][26] - A CEO succession plan is in place, with a search for a successor being conducted thoughtfully and without urgency [27][28] Q&A Session Questions and Answers Question: Can you discuss the drivers behind the CRPO acceleration and the strength of new logos versus net revenue retention? - The company had a strong new logo quarter, contributing to performance, with longer contract durations providing flexibility for customers [42][44] Question: What are the early signs of success in international markets following the management changes? - New technical resources have improved customer engagement and adoption, indicating positive growth prospects [46][48] Question: How does the company view its role as a partner versus a vendor in the current market? - The company is seen as a partner providing significant value beyond software, helping customers navigate challenges and improve transparency [54] Question: How does the company plan to leverage its AI capabilities in the construction ecosystem? - The company has a unique vantage point with extensive data across various project types, enabling it to develop valuable AI tools that enhance productivity [58][60] Question: What metrics should investors focus on to measure progress in customer growth? - The focus is on dollar volume rather than customer count, with significant untapped opportunities remaining in the market [79][80] Question: Can you provide insights into the impact of longer contract durations on revenue recognition? - Longer durations allow for earlier reloading of CRPO, but do not impact revenue recognition directly [81][83]