Procore Technologies Reports Strong Q2 Financial Results

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 2025 Results with Revenue Growth

Procore Technologies, Inc. has proudly announced its financial results for the second quarter of fiscal year 2025, showcasing a notable increase in revenue. The company reported a GAAP revenue of $323.9 million, reflecting a steady 14% growth from $284.3 million in the same quarter last year. These figures surpassed the expectations set by analysts, who had forecasted revenue of $312.4 million.

Despite the impressive revenue growth, Procore experienced a decline in its non-GAAP operating margin, which fell to 13% from 18% in Q2 2024. This decrease indicates that the company is making significant investments in various sectors of operations. However, free cash flow (non-GAAP) took a hit, dropping to $10.6 million in Q2 2025, down from $46.6 million in the previous quarter, marking an approximate 77.2% decrease.

The quarterly earnings per share (EPS) on a non-GAAP basis came in at $0.35, outpacing expectations of $0.26. Increased operating expenses were driven primarily by enhanced investments in research and development (R&D), as well as sales initiatives. Specifically, R&D expenditures grew by 23%, amounting to $88.9 million.

Growth and Customer Acquisition

In Q2, Procore successfully added 195 new organic customers, bringing its total organic customer count to 17,501. Furthermore, the number of customers generating over $100,000 in annual recurring revenue increased by 15% year-over-year, reaching 2,517. Significantly, the company maintained a strong gross revenue retention rate of 95%, showcasing reliability in its revenue stream.

As part of its growth strategy, Procore made strategic acquisitions, completing the purchases of Novorender and Flypaper Technologies. These acquisitions aim to bolster the company’s Building Information Modeling (BIM) capabilities, which are critical in the construction sector. In a major advancement, Procore received the “In Process” designation for the Federal Risk and Authorization Management Program (FedRAMP), emphasizing its commitment to cloud security compliance.

Financial Outlook and Projections

At the close of Q2, Procore reported cash and cash equivalents totaling $324.3 million, despite returning approximately $100 million to shareholders through stock repurchases in the first half of 2025. Further reflecting the company’s solid position, its remaining performance obligations (RPO) showed double-digit growth, pointing to sustained sales momentum from larger clients.

Looking ahead, management has projected revenue for Q3 2025 to be in the range of $326 million to $328 million, indicating a year-over-year growth between 10% and 11%. The full-year revenue outlook for 2025 is expected to fall between $1,299 million and $1,302 million, forecasting an overall growth of about 13% compared to 2024. Additionally, the anticipated non-GAAP operating margin for the full year is projected to remain stable, ranging from 13% to 13.5%.

Procore’s leadership has advised a cautious approach in forecasting, mindful of potential slowdowns in construction activity and broader macroeconomic risks. Investors are encouraged to closely monitor trends related to margins, cash flow stability, and the continued pace of acquiring large customers as the company navigates through ongoing uncertainties in the sector.

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Additional Resources

• AOL Finance: Procore Q2 Revenue Jumps
• Wikipedia: Procore Technologies
• Business Wire: Procore Announces Q2 2025 Financial Results
• Google Search: Procore Technologies Q2 2025
• Seeking Alpha: Procore Q2 Earnings Preview
• Encyclopedia Britannica: Procore Technologies