Company Overview

Procore is the leading global provider of construction management software. Procore Technologies, Inc., together with its subsidiaries, provides a cloud-based construction management platform and related products and services in the United States and internationally. The company is fundamentally transforming the construction industry through digital innovation, serving as a leading technology partner for every stage of construction. Built for the industry, Procore's unified technology platform drives efficiency and mitigates risk through AI & data-driven insights and decision-making.

Over three million projects have run on Procore across 150+ countries. The company operates from its headquarters at 6309 Carpinteria Avenue Carpinteria, CA 93013 and trades on the New York Stock Exchange under the ticker symbol PCOR.

Business Model and Revenue Generation

Procore generates revenue through subscriptions for access to its software products. The software products are hosted on its cloud-based SaaS construction management platform. This subscription-based model provides predictable recurring revenue streams and enables the company to scale efficiently across its global customer base.

Core Products and Services

Procore offers a comprehensive suite of construction management solutions organized into four main categories:

Preconstruction Solutions

Preconstruction facilitates collaboration between internal and external stakeholders during the takeoff, planning, budgeting, estimating, bidding, design, and partner selection phases of a construction project.

Project Execution Platform

Project Execution enables collaboration, information transmission and storage, and safety regulation compliance for teams on the jobsite and in the back office.

Resource Management Tools

Resource Management helps customers schedule, track, and forecast workforce and equipment productivity, improve time management, communicate with workforces, optimize procurement and movement of materials, and manage profitability on construction projects.

Financial Management Solutions

Financial Management provides customers with visibility into the financial health of their individual construction projects and portfolios, as well as facilitates untethered access to financial data and supports payments between key stakeholders.

Specialized Products

The company's products include Design Coordination, BIM, Field Productivity, Project Financials, Invoice Management, Portfolio Financials, Capital Planning, Accounting Integrations, and Analytics.

Target Market and Customer Base

The company serves owners, general contractors, and specialty contractors operating in the residential and non-residential segments of the construction industry. Its platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects.

Key Customer and Financial Metrics

- Customer Metrics (as of June 30, 2025):

- Added 195 net new organic customers in the second quarter, ending with a total of 17,501 organic customers.

- 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.

- Q2 2025 Financial Highlights (ended June 30, 2025):

- Revenue was $324 million, an increase of 14% year-over-year.

- GAAP gross margin was 79% and non-GAAP gross margin was 83%.

- GAAP operating margin was (9%) and non-GAAP operating margin was 13%.

- Operating cash inflow for the second quarter was $31 million.

- Q2 non-GAAP operating income was $44,000,000, representing a non-GAAP operating margin of 13%.

- Market Capitalization: $10.015 Billion (as of June 10, 2025)

- International Growth (Q2): Revenue grew 13% year-over-year. On a constant currency basis, international revenue grew 16% year-over-year.

Recent Strategic Initiatives

Acquisitions and Technology Enhancement

Procore announced acquisitions of Novorender and Flypaper Technologies to double down on Building Information Modeling (BIM). These strategic acquisitions strengthen Procore's position in the rapidly evolving construction technology landscape.

Government Market Expansion

Achieved Federal Risk and Authorization Management Program (FedRAMP®) "In Process" Designation and is now listed on the FedRAMP marketplace. This milestone opens significant opportunities in the federal government construction sector.

Innovation and Product Development

Hosted Procore Innovation Summit and shared exciting product innovations. The company continues to invest heavily in research and development to maintain its competitive advantage.

Technology Platform and Accessibility

Procore allows users to access its products on computers, smartphones, and tablets through any web browser or from its mobile application available for iOS and Android platforms through its direct sales team. This multi-platform approach ensures construction professionals can access critical project information anytime, anywhere.

Future Outlook

Q3 2025 Guidance

- Revenue is expected to be in the range of $326 million to $328 million, representing year-over-year growth of 10% to 11%.

- Non-GAAP operating margin is expected to be in the range of 13% to 13.5%.

Full Year 2025 Projections

- For the full year 2025, the company anticipates revenue growth of 13%, reaching up to $1,302 million.

- The company expects to maintain a non-GAAP operating margin within the same range as Q3 guidance.

Market Position and Industry Impact

Procore operates in a massive and under-digitized market with significant growth potential. Procore continues to capitalize on the under-digitized construction industry, leveraging technological advancements to enhance productivity. The construction industry represents one of the largest global markets with substantial room for digital transformation, positioning Procore for continued long-term growth.

Procore's management remains optimistic about future growth opportunities and profitability improvements, positioning the company for continued success in the evolving construction technology landscape.