In This Article:
-
Total Revenue: $302 million in Q4, up 16% year-over-year.
-
International Revenue Growth: 19% year-over-year.
-
Non-GAAP Operating Income: Negative $2 million, with an operating margin of negative 1% for Q4.
-
Free Cash Flow: $128 million for the year, a 171% year-over-year improvement.
-
Revenue Guidance for Q1 2025: Between $301 million and $303 million, representing 12% year-over-year growth.
-
Non-GAAP Operating Margin Guidance for Q1 2025: Expected to be between 7% and 8%.
-
Full Year Fiscal 2025 Revenue Guidance: Raised to between $1.285 billion and $1.29 billion, representing 12% year-over-year growth.
-
Full Year Fiscal 2025 Non-GAAP Operating Margin Guidance: Raised by 50 basis points to be between 13% and 13.5%, implying year-over-year margin expansion between 300 and 350 basis points.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Procore Technologies Inc (NYSE:PCOR) reported strong booking performance with over 130 six- and seven-figure transactions in Q4.
-
The company grew the number of customers contributing more than $1 million in ARR by 39% year over year.
-
Procore Technologies Inc (NYSE:PCOR) expanded its non-GAAP operating margin by 800 basis points for the year.
-
The company generated $128 million in free cash flow, indicating strong cash flow generation.
-
Procore Technologies Inc (NYSE:PCOR) made significant strides in AI-powered innovations, enhancing its platform with tools like Copilot and Agents.
Negative Points
-
Q4 non-GAAP operating income was negative $2 million, representing an operating margin of negative 1%.
-
The company anticipates potential disruption in the first half of 2025 due to its go-to-market transition.
-
Procore Technologies Inc (NYSE:PCOR) does not expect its Pay product to be material to revenues in 2025 due to implementation timelines.
-
The company is guiding conservatively for 2025, reflecting caution due to ongoing go-to-market changes.
-
Procore Technologies Inc (NYSE:PCOR) experienced higher headcount costs from exceeding hiring targets, impacting margins.
Q & A Highlights
Q: How sustainable is the momentum in the owner segment, and can it offset cyclical headwinds in the business? A: Craig Courtemanche, CEO, emphasized the significant opportunity in the owner segment, which is currently only 2% penetrated. He noted that while there was strength across all stakeholders, the owner segment presents a substantial opportunity for growth, demonstrating the vast potential ahead for Procore.