PROCORE TECHNOLOGIES, INC. Q4 FY2024 earnings call

• Strong booking performance in Q4 with over 136 six- and seven-figure transactions. Grew customers contributing >$1M ARR by 39% y/y. Exceeded headcount targets and expanded non-GAAP operating margin by 800 basis points. Generated $128M free cash flow.
• Notable customer wins included large telecommunication company, University of San Diego, etc. High-quality customer adds and expansions.
• Emphasized transformative potential of data and AI in construction. Launched resource management, Procore Maps, Procore Global, and Procore Pay with over 250 customers using it.
• Accelerated go-to-market transition, ahead of schedule on hiring, with sellers ramping up pipeline.

Total revenue in Q4 was $302 million, up 16% year over year. International revenue grew 19% year over year. Key backlog metrics: current RPO grew 19% year over year, current deferred revenue grew 17% year over year.

• Q1 2025 revenue expected between $301M - $303M, +12% y/y. Q1 non-GAAP operating margin expected 7% - 8%.
• Full-year 2025 revenue guidance raised to $1.285B - $1.29B, +12% y/y. Non-GAAP operating margin guidance raised to 13% - 13.5%, implying 300-350 basis points expansion year over year.

• Forward-looking statements subject to risks, uncertainties, and assumptions.
• Challenges associated with go-to-market transition, including potential disruption in first half of 2025.
• Macro-economic and geopolitical conditions impacting business.

Q: Brent Bracelin of Piper Sandler asked about leaning into owner opportunity to offset cyclical headwinds.

A: Tooey Courtemanche said owner segment is large with much opportunity, and they are leaning into it.

Q: Joe Vruwink of Baird asked about booking strength depleting pipeline.

A: Howard Fu said it's about strong execution and focusing on nailing execution in Q1 and Q2.

Q: DJ Hynes of Canaccord asked about reception to new sales coverage plan.

A: Tooey Courtemanche said strong excitement at sales kickoff, but execution phase just started.

Q: Brent Thill of Jefferies asked about delta in CRPO.

A: Howard Fu said CRPO growth in Q4 had early renewals, and 2025 guidance is raised with added conservatism due to go-to-market transition.

Q: Saket Kalia of Barclays asked about Procore Pay differentiating from incumbents.

A: Tooey Courtemanche said customers like having payments all in one place on Procore platform.

Q: Dylan Becker of William Blair asked about leverage between top-line growth and margin.

A: Howard Fu said they are optimizing for free cash flow per share and will expand margins in 2025 and 2026.

Q: Adam Borg of Stifel asked about new logo growth.

A: Howard Fu said they focus on larger customers and dollars, new logo growth is lower but managed to dollars.

Q: Daniel Jester of BMO asked about AI feedback.

A: Tooey Courtemanche said customers love Copilot as an answer machine and agents will help manage projects.

Q: Jason Celino of KeyBanc asked about tariffs impact.

A: Tooey Courtemanche said industry is resilient, and Howard Fu said Q4 upside was from strong execution.

Q: Alexei Gogolev of JPMorgan asked about market share and AI agents education.

A: Tooey Courtemanche said win rates hold strong, and there's an educational process for AI agents.

Q: Daniella of UBS asked about operating income margin.

A: Howard Fu said Q4 was one-time, and margins will improve in Q1/Q2 and continue expanding.

Q: Sid Paragri's representative asked about AI leverage internally.

A: Tooey Courtemanche said Procore is leveraging AI internally in development, support, marketing, but no specific tangible numbers disclosed.