Procore Technologies (PCOR) Goldman Sachs Communacopia + Technology Conference 2025 summary

Key learnings and growth factors

• Deep industry focus fosters strong customer relationships and community integration, differentiating from horizontal software approaches.

• Navigating industry cycles is crucial; recent years saw a downturn, but internal sentiment remains positive as the market nears a trough.

• Brand recognition is strong in the U.S. mid-market and up, but international and down-market penetration remains early-stage.

• Collaborator conversion is a key funnel, with half of new customers previously collaborators; product enhancements aim to streamline this process.

• Owner mandates are increasing, with some specifying platform use in RFPs, and long-term vision includes integrating more of the supply chain.

Demand environment and market opportunity

• Despite a tough macro, recent 14% revenue growth outpaces the -2% industry contraction, maintaining a 16-point spread over the market.

• Digitization interest remains steady across cycles, but customers commit to smaller volumes in uncertain times.

• 60% of ARR comes from general contractors, 25% from owners, and the rest from subcontractors; owners are currently the fastest-growing segment.

Financial outlook and operational strategy

• Revenue growth guidance is 13%-14% for the year, with margin expansion expected to accelerate in 2025 and beyond.

• Sales and marketing leverage will drive margin gains, shifting from capacity-driven to productivity-driven growth.

• Recent operating model changes are now embedded, with focus shifting to segment prioritization and nimble investment tied to macro conditions.

• Expansion mix is improving, with cross-sell rising to 30% of expansion ARR and potential to reach 40%.