Executive Summary

Revenue was $302.0M, +16% year over year, and above the company’s prior Q4 guidance range ($296–$298M); however, non-GAAP operating margin was -1%, below the prior Q4 guidance of 3–4% as management accelerated FY25 initiatives in Q4 .
Backlog indicators were strong: current RPO +19% YoY and current deferred revenue +17% YoY; international revenue grew 19% YoY in Q4, with momentum from large “Mag 7” owner wins and broad-based execution .
FY25 guidance was raised: revenue to $1.285–$1.290B (from at least $1.275B) and non-GAAP operating margin to 13.0–13.5% (up 50 bps), with Q1 FY25 revenue guided to $301–$303M and non-GAAP operating margin to 7–8% .
Stock-relevant narrative: near-term margin miss tied to deliberate pull-forward of investments; backlog strength and raised FY25 margin guide frame a setup for improving profitability and bookings as the go-to-market (GTM) transition matures in 2H FY25 and into FY26 .

What Went Well and What Went Wrong

What Went Well

Large-deal execution across stakeholders, including two significant “Mag 7” owner wins and expansions (one of the biggest 7‑figure ARR deals in company history), underscoring Procore’s position in high-scale CapEx programs .
Backlog strength: current RPO +19% YoY (boosted by early renewals) and current deferred revenue +17% YoY; company added 113 net new organic customers, and >$1M ARR customers rose 39% YoY to 86 .
Strategic product momentum: AI Copilot, Agents, and Agent Studio highlighted as central to platform value creation; 250+ customers purchased Pay, though revenue impact is expected to be immaterial in 2025 .

What Went Wrong

Non-GAAP operating margin (-1%) came in below guidance (3–4%) as management deliberately accelerated FY25 initiatives (contractors for product roadmap, GTM system readiness, marketing), plus higher commissions and headcount costs from strong bookings and hiring pace .
GAAP net loss widened to -$62.3M (vs. -$29.5M in Q4’23); GAAP EPS was -$0.42 (vs. -$0.20), reflecting increased stock-based comp and amortization of acquired intangibles in operating expenses .
Consensus comparisons unavailable: S&P Global data could not be retrieved due to request limits; thus, third-party estimate beat/miss cannot be assessed for Q4 [GetEstimates error].

Financial Results

Quarterly Performance (QoQ and YoY context)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$284.3	$295.9	$302.0
GAAP Gross Margin %	83%	81%	81%
Non-GAAP Gross Margin %	87%	85%	85%
GAAP Operating Margin %	-5%	-12%	-22%
Non-GAAP Operating Margin %	17.6%	9%	-1%
GAAP EPS ($)	-0.04	-0.18	-0.42
Non-GAAP Diluted EPS ($)	0.39	0.24	0.01

Year-over-Year (Q4 comparison)

Metric	Q4 2023	Q4 2024
Revenue ($USD Millions)	$260.0	$302.0
GAAP Gross Margin %	82%	81%
Non-GAAP Gross Margin %	85%	85%
GAAP Operating Margin %	-14%	-22%
Non-GAAP Operating Margin %	7%	-1%
GAAP EPS ($)	-0.20	-0.42
Non-GAAP Diluted EPS ($)	0.17	0.01

Cash Flow and Backlog

Metric	Q2 2024	Q3 2024	Q4 2024
Operating Cash Flow ($USD Millions)	$58.7	$39.3	$29.1
Free Cash Flow ($USD Millions)	$46.6	$23.0	$0.3
Current RPO ($USD Millions)	$724.8	$738.9	$829.7
Non-Current RPO ($USD Millions)	$310.4	$334.6	$456.8
Total RPO ($USD Millions)	$1,035.2	$1,073.4	$1,286.5

KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Organic customers >$100k ARR	2,191	2,261	2,333
Organic customers >$1M ARR	—	—	86
Net new organic customers (quarter)	152	225	113
Total organic customers	16,750	16,975	17,088
Gross revenue retention	94%	94%	94% (FY24)
Net revenue retention	—	—	106% (FY24)

Note: Consensus comparisons vs Wall Street estimates are not presented because S&P Global data was unavailable at time of request (SPGI daily limit exceeded).

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q4 2024	$296–$298M	Actual $302.0M	Beat vs guidance (bold)
Non-GAAP Operating Margin	Q4 2024	3–4%	Actual -1%	Miss vs guidance (bold)
Revenue	Q1 2025	N/A	$301–$303M	New
Non-GAAP Operating Margin	Q1 2025	N/A	7–8%	New
Revenue	FY 2025	At least $1,275M	$1,285–$1,290M	Raised (bold)
Non-GAAP Operating Margin	FY 2025	13%	13.0–13.5% (raised by 50 bps)	Raised (bold)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
AI/Technology (Copilot, Agents, Agent Studio)	Platform connectivity, AI investments; GTM evolution to deepen product specialist overlays	AI set to power every workflow; Copilot as “answer machine”; Agents to monitor schedule/budget 24/7; internal AI use across dev/support/marketing	Expanding focus and customer education (bold)
GTM Transition & Hiring	Announced GM model, channel/public sector build-out; disruption expected in 2H’24/1H’25	Ahead of schedule on hiring; most roles by end of Q1; strongest disruption expected in 1H’25; productivity to improve into 2H’25	Transition progressing; 2H’25 productivity inflection (bold)
Backlog/Bookings & Early Renewals	CRPO stable; caution on acceleration; headwinds to FY25 growth	cRPO +19% YoY boosted by early renewals; without renewals mid-teens; bookings strong; less GTM disruption than expected	Positive momentum; normalization expected
Owners/Data Center CapEx	Owners as major TAM; larger opportunities beyond ENR400	Large owner wins (“Mag 7”); data center CapEx “eye-popping”; broad-based strength across stakeholders	Strength increasing in owners segment
Tariffs/Macro Sentiment	Mixed demand; sentiment-driven industry; potential rate cuts beneficial	Wait-and-see on tariffs; industry resilience; diversified project mix offsets segment softness	Cautious near-term; resilient demand
Procore Pay	GA in Q2; adoption growing; immaterial near-term revenue	>250 customers purchased Pay; still not material in 2025; longer onboarding cycles	Adoption building; revenue immaterial FY25
Public Sector/FedRAMP	Launching FedRAMP process to expand public sector opportunity	Continued emphasis on public sector motion under CRO experience	Building for medium-term
Capital Allocation	Stock repurchase $300M authorization (Q3)	Ongoing focus on FCF per share; multiple paths to improve profile	Per-share optimization consistent

Management Commentary

“Our strong topline performance exceeded expectations, reinforcing our momentum heading into FY25.” — Tooey Courtemanche, CEO .
“2024 was another year of strong margin expansion delivering 800 basis points of non-GAAP operating margin improvement. Our Q4 results are not indicative of the operating margin you should expect for FY25.” — Howard Fu, CFO .
“Q4 non-GAAP operating margin is not indicative of fiscal ’25... We are raising our non-GAAP operating margin guidance by 50 bps for the year to be between 13% and 13.5%.” — Howard Fu .
“We’re working steadily towards a future where Procore AI will power every task and workflow… replace manual tedious processes with trusted customizable agents.” — Tooey Courtemanche .
“Do not expect Pay to be material to revenues in 2025 given its associated implementation and project rollout timelines.” — Tooey Courtemanche .

Q&A Highlights

Owners momentum: Large owner wins in Q4 underscore the scale of CapEx and Procore’s platform leadership; opportunity remains broad-based across stakeholders .
Backlog drivers: cRPO benefited from early renewals; without them, cRPO would have been mid-teens; bookings were strong and disruption less than expected .
Margin miss drivers: Accelerated FY25 initiatives in Q4 (contractors for product roadmap, GTM readiness, Groundbreak interest) plus higher commissions/headcount; not indicative of FY25 margin .
Tariffs/macro: Wait-and-see; industry resilience and diversified segment exposure provide offsets .
AI strategy: Copilot and Agents to deliver actionable answers and autonomous monitoring; internal AI usage across development/support/marketing .

Guidance Changes and Clarifications

FY25 revenue raised to $1.285–$1.290B and non-GAAP operating margin raised to 13–13.5%, implying 300–350 bps YoY expansion; Q1 FY25 guided to $301–$303M revenue and 7–8% non-GAAP margin .
Q4 actuals vs prior guide: revenue beat ($302.0M vs $296–$298M) and non-GAAP margin miss (-1% vs 3–4%); management emphasized these were driven by deliberate investment timing .

Estimates Context

Attempted to pull S&P Global consensus estimates for Q4 2024 (EPS and revenue) but data was unavailable due to SPGI daily request limits; as a result, third-party consensus beat/miss cannot be definitively assessed for Q4 [GetEstimates error].
Company-reported beat/miss vs internal guidance is provided above with citations to the press release and 8-K .

Key Takeaways for Investors

Backlog and large-deal momentum provide revenue visibility into FY25 despite GTM transition-related near-term disruption; cRPO strength (with early renewals) supports a constructive bookings outlook .
The Q4 margin miss was driven by deliberate pull-forward of FY25 investments; raised FY25 margin guidance (13–13.5%) suggests continued profitability scaling through FY25/26 (monitor Q1 margin inflection) .
Owners and data center projects are emerging as significant drivers; two “Mag 7” wins and global expansions indicate increasing traction in capex-heavy verticals .
AI roadmap (Copilot, Agents, Agent Studio) is central to product differentiation; early customer enthusiasm and platform connectivity could catalyze cross-sell and retention over time .
Procore Pay adoption is building but revenue contribution remains immaterial in 2025; focus on long-term monetization post-onboarding cycles .
Watch 1H FY25 for GTM execution risk (productivity ramp, pipeline velocity); management expects improvements into 2H FY25 and stronger P&L in FY26 .
Capital allocation remains focused on free cash flow per share with flexibility to optimize via organic growth, tuck-ins, and opportunistic buybacks (authorized $300M in Q3) .

All figures and statements above are sourced from the company’s 8‑K, press releases, and earnings call transcripts with citations noted.

PROCORE TECHNOLOGIES, INC. (PCOR)·Q4 2024 Earnings Summary