Executive Summary

Q1 2025 delivered a clean top-line and EPS beat versus consensus, while EBITDA missed materially; management maintained full-year revenue and margin guidance despite tariff uncertainty, emphasizing confidence and cost levers to protect FCF per share (consensus values from S&P Global*).
Revenue grew 15% year-over-year to $310.6M, GAAP gross margin was 79% and non-GAAP operating margin reached 10%; operating cash flow was $66.0M and free cash flow was $46.7M .
Backlog quality improved: total RPO rose 28% YoY to $1.29B with non-current RPO up 48%; CFO highlighted longer contract durations temporarily elevating CRPO growth versus out-quarter revenue growth .
Shareholder returns: repurchased ~1.5M shares for ~$100M in Q1 (avg. price ~$6.96), with $200M remaining authorized; management may continue repurchases in Q2 if conditions are attractive .
Near-term catalysts: guidance conservatism amid tariffs, go-to-market transition execution, AI agent roadmap, and BIM acquisitions announced in May (Novorender, FlyPaper) to bolster large-project delivery capabilities .

What Went Well and What Went Wrong

What Went Well

Revenue and EPS beat: Revenue $310.6M vs S&P consensus $302.6M; non-GAAP diluted EPS $0.23 vs consensus $0.185. “Our Q1 performance represented a positive start to the year” — CEO Tooey Courtemanche (consensus from S&P Global*).
Margin expansion QoQ: Non-GAAP operating margin improved to 10% in Q1 from -1% in Q4, reflecting disciplined execution; CFO: “we expect to deliver continued margin improvement for the year” .
Backlog depth and contract duration: Total RPO +28% YoY (non-current +48%), with CFO attributing CRPO strength to longer contract durations (duration uptick to ~21.5 months; multiyear deals ~43% of ARR) .

What Went Wrong

EBITDA miss: S&P Global shows Q1 2025 EBITDA actual of -$7.3M vs consensus $43.1M, despite non-GAAP operating margin of 10% (methodological differences likely drive divergence) (consensus and actual from S&P Global*).
FX headwinds: International revenue growth was impacted ~2 points by FX in Q1; constant currency growth ~20% YoY vs reported 18% .
Go-to-market transition disruptions persisted: Management flagged expected change management through at least Q2; gross margin ticked down to 79% partly due to cost classification shifts (neutral to FCF and operating margin) .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$295.9	$302.0	$310.6
GAAP Gross Margin (%)	81%	81%	79%
Non-GAAP Gross Margin (%)	85%	85%	83%
GAAP Operating Margin (%)	(12%)	(22%)	(12%)
Non-GAAP Operating Margin (%)	9%	(1%)	10%
GAAP EPS (diluted, $)	$(0.18)	$(0.42)	$(0.22)
Non-GAAP Diluted EPS ($)	$0.24	$0.01	$0.23
Operating Cash Flow ($USD Millions)	$39.3	$29.1	$66.0
Free Cash Flow ($USD Millions)	$23.0	$0.3	$46.7

Q1 2025 actuals vs S&P Global consensus:

Metric	Consensus	Actual	Surprise
Revenue ($USD Millions)	$302.6*	$310.6	Beat
Non-GAAP Diluted EPS ($)	$0.185*	$0.23	Beat
EBITDA ($USD Millions)	$43.1*	-$7.3*	Miss

Values retrieved from S&P Global*.

KPIs and Backlog:

KPI	Q4 2024	Q1 2025
Gross Revenue Retention Rate (%)	94%	95%
Customers ≥$100k ARR (count)	2,333	2,418
Net New Organic Customers (quarter add)	+113	+218
Total Organic Customers (period end)	17,088	17,306
Total RPO ($USD Millions)	$1,286.5	$1,290.3
Current RPO YoY Growth (%)	19%	20%
Non-current RPO YoY Growth (%)	51%	48%

Segment breakdown: Not disclosed in Q1 materials .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	Q2 2025	N/A	$310–$312	New
Non-GAAP Operating Margin (%)	Q2 2025	N/A	11.0%–11.5%	New
Revenue ($USD Millions)	FY 2025	$1,285–$1,290	$1,286–$1,290	Maintained (high end)
Non-GAAP Operating Margin (%)	FY 2025	13.0%–13.5%	13.0%–13.5%	Maintained

Management reiterated that forward-looking non-GAAP reconciliations are not available without unreasonable effort .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
AI/Technology Initiatives	Launched Procore AI, Agents; platform connectivity (connected drawings, Zones); AI central to future workflow	“Agent strategy remains a key focus”; pilots on daily logs; 24/7 agents to monitor schedule/budgets and reduce risk	Increasing emphasis and pilots
Go-to-Market Transition	Announced transition; ahead of plan on hiring; expected most disruption H1’25	First quarter under new model; modest disruption; learnings; change mgmt continues through at least Q2	Executing; stabilization expected by H2
Tariffs/Macro	Sentiment-driven demand; resilience across segments; early renewals boosted cRPO in Q4	No material demand impact yet; guide set conservatively to withstand significant decline; prepared to pull margin levers	Elevated uncertainty; conservative stance
International	Zones expansion and platform consistency; solid growth	18% YoY growth; ~2pt FX headwind; CC growth ~20%; improved local GM model reception	Steady to improving
Backlog/CRPO Dynamics	Early renewals drove cRPO; normalized mid-teens growth	Longer durations lifting CRPO vs revenue; duration ~21.5 months; multiyear ARR ~43%	Structural uplift to CRPO
Product/Verticals	Wins across owners, GCs, subs; data center capex tailwinds noted	Large-enterprise wins incl. semiconductor; unified platform differentiator; expansion across healthcare system	Strength across stakeholders

Management Commentary

CEO on tariffs and resilience: “We have not seen any material change in our customers’ behavior... we remain optimistic that even if... short-term headwinds... our business could benefit from long-term tailwinds” .
CEO on AI agents: “We have a number of agents in development… productivity enhancers to potentially game-changing next best action agents... agents 24 hours a day… identifying emerging patterns in real time” .
CFO on guidance posture: “Despite our strong Q1 performance, we are maintaining the high end of our previously issued full year guidance” .
CFO on capital returns: “In the first quarter, we returned approximately $100 million... repurchasing approximately 1.5 million shares at an average price of $6.96... another $200 million authorized” .
CEO on go-to-market: “Q1 was the first quarter with this new operating model... it’s already been well received... we anticipate change management will continue through at least Q2” .

Q&A Highlights

CRPO and contract duration: Management detailed duration uptick (~20 → ~21.5 months) and multiyear ARR mix (~38% → ~43%), explaining CRPO > revenue growth near term; normalization expected by Q4 .
International execution: Local GM model and technical resources enhancing adoption; FX ~2pt headwind, CC growth ~20% YoY .
Gross margin movement: Q1 gross margin tick-down driven by cost reclassification (neutral to FCF/operating margin); long-run gross margin mid-80s +/- 1–2 pts .
Guidance conservatism amid tariffs: Q2 deceleration guided (9–10% YoY) with potential back-half reacceleration; guide constructed to withstand significant demand declines .
Product cross-sell and AI agents: Strong appetite for agentic automation; early pilots (daily logs) and broader agent strategy to improve productivity and risk management .

Estimates Context

Q1 2025 vs S&P Global consensus: Revenue $310.6M vs $302.6M* (beat); non-GAAP diluted EPS $0.23 vs $0.185* (beat); EBITDA -$7.3M* vs $43.1M* (miss). Management’s non-GAAP operating margin commentary and cost reclassification suggest differences between non-GAAP operating metrics and consensus-calculated EBITDA (consensus from S&P Global*).
Forward context: Q2 2025 consensus revenue ~$312.3M* and EPS ~$0.262* vs company guidance of $310–$312M revenue and 11–11.5% non-GAAP operating margin; FY 2025 consensus revenue ~$1.314B* and EPS ~$1.354* vs company’s $1.286–$1.290B and 13–13.5% margin (consensus from S&P Global*).