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Procore Technologies Reports Strong Q2 Financial Results

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News Summary

Procore Technologies has revealed impressive financial results for the second quarter, reporting a 14% revenue increase to $323.9 million. Despite a decline in non-GAAP operating margin, the company has focused on significant investments in R&D and customer retention, adding 195 new customers. Procore’s efforts in strategic acquisitions and achieving cloud security compliance are indicative of its commitment to future growth. The company projects continued revenue growth for the upcoming quarters, emphasizing its market presence even amid macroeconomic challenges.

Procore Technologies Reports Strong Q2 FY2025 Financial Results

Procore Technologies, Inc. has announced its financial results for the second quarter of fiscal year 2025, showcasing significant revenue growth and ongoing investments for future development. The company’s revenue reached $323.9 million, marking a 14% increase from $284.3 million in the same quarter last year. This performance exceeded analysts’ expectations, who had predicted revenue to be around $312.4 million.

Operating Metrics and Investment Strategies

Despite record revenue figures, Procore’s non-GAAP operating margin experienced a decline, sitting at 13% for Q2 2025 compared to 18% for Q2 2024. This reduction indicates the company’s strategy to invest heavily in strengthening its operations. Operating expenses increased significantly, driven mainly by investments in research and development, as well as sales initiatives. The company reported that R&D expenses grew by 23% to $88.9 million.

Furthermore, Procore’s free cash flow observed a notable drop, reaching $10.6 million in Q2 2025 down from $46.6 million in Q1 2025, a decrease of approximately 77.2%. However, the company’s quarterly earnings per share (EPS), calculated on a non-GAAP basis, stood at $0.35, surpassing the expectations that were set at $0.26.

Customer Growth and Retention

Procore’s customer engagement continues to flourish as the company added 195 new organic customers during the quarter, bringing the total organic customer base to 17,501. In another positive sign, the number of customers contributing over $100,000 in annual recurring revenue rose by 15% year-over-year, reaching 2,517. Additionally, the company reported a gross revenue retention rate of 95%, highlighting its ability to retain existing customers effectively.

Strategic Acquisitions and Innovations

To augment its market presence and technical capabilities, Procore completed key acquisitions of Novorender and Flypaper Technologies. These acquisitions are aimed at enhancing the company’s Building Information Modeling (BIM) capabilities, positioning Procore favorably in the competitive landscape.

Progress in Cloud Security Compliance

In a notable achievement, Procore received the “In Process” designation for the Federal Risk and Authorization Management Program (FedRAMP), which indicates progress in meeting stringent cloud security compliance standards. This milestone reflects Procore’s commitment to ensuring the safety and reliability of its platform as it expands its government sector initiatives.

Financial Outlook and Guidance

Looking ahead, Procore’s management is projecting revenue for Q3 2025 to be within the range of $326 million to $328 million. This forecast suggests a year-over-year growth of approximately 10% to 11%. For full-year 2025, the revenue outlook is set between $1,299 million and $1,302 million, expecting overall year-over-year growth of 13%.

While the non-GAAP operating margin for the full year is anticipated to remain between 13% and 13.5%, the management has adopted a cautious approach when making projections, in light of potential slower construction activity and macroeconomic challenges. Investors are advised to keep an eye on margin trends, cash flow stability, and the acquisition pace of larger customers as Procore adapts to the ongoing uncertainties within the construction sector.

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Construction FL News
Author: Construction FL News

FLORIDA STAFF WRITER The FLORIDA STAFF WRITER represents the experienced team at constructionflnews.com, your go-to source for actionable local news and information in Florida and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florida Build Expo, major infrastructure projects, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated Builders and Contractors of Florida and the Florida Home Builders Association, plus leading businesses in construction and legal services that power the local economy such as CMiC Global and Shutts & Bowen LLP. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructiontxnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.

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