Revenue Growth: Q1 revenue grew by 26% year-over-year.
International Revenue Growth: International revenue increased by 32% year-over-year.
Operating Income: Non-GAAP operating income was $37 million, equating to an operating margin of 14%.
RPO and Deferred Revenue: Current RPO (Remaining Performance Obligations) and current deferred revenue grew by 20% and 21% year-over-year, respectively.
Future Guidance
Q2 Revenue: Expected to be between $274 million and $276 million, indicating a year-over-year growth of 20% to 21%.
Q2 Non-GAAP Operating Margin: Expected to be between 11% and 12%.
Full-Year 2024 Revenue Guidance: Anticipated to be between $1.14 billion and $1.144 billion, representing a total year-over-year growth of 20%.
Full-Year Non-GAAP Operating Margin: Expected to be between 9% and 10%, implying a margin expansion of 700 to 800 basis points.
Trends, Market Conditions, Sentiment
Industry Sentiment: Despite near-term uncertainties and challenges, there is a sense of long-term optimism within the industry.
Product Roadmap Alignment: Customers validated Procore’s product roadmap, emphasizing the increasing complexity of projects and the need for advanced capabilities.
Data Strategy: Procore is being recognized as a central hub for aggregating and analyzing industry data, positioning it strongly amidst evolving data strategies of firms.
AI and Construction: There’s meaningful excitement around leveraging AI for automating processes and improving efficiency, with Procore’s solutions like Copilot discussed as transformative.
Partnership and Customer Wins: Strong emphasis on customer partnership, with notable expansions and new customer relationships indicating Procore’s value proposition.
Infrastructure Focus: Highlighted projects and focus areas like data centers and infrastructure, laden with regulatory and complexity challenges, showcase Procore’s appeal to large-scale operators.
Notable Quotes
Craig Courtemanche: “There has really been no change at all in win rates…”
Saket Kalia on Competition: “Procore is a premium product, and we do command a premium price.”
Howard Fu on Sales Alignment and Strategy: “We are not just starting to sell to the enterprise… we really started to make that shift towards the back part of last year…”
Craig Courtemanche on Enterprise and International Strategy: “The industry itself is made up of lots of different segments and components… Some of which are firing on all cylinders.”
