Procore Technologies (PCOR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 24% year-over-year to $284–$284.3 million, with international revenue up 31% and 89% of growth from existing customers.

• Net loss narrowed to $6.3 million from $52.9 million in Q2 2023; non-GAAP net income was $58.5 million.

• Operating margin for Q2 was 17.6% non-GAAP, with record operating leverage and gross margin improving to 83%.

• Major go-to-market transformation underway, shifting to a general manager model to drive customer centricity and regional autonomy.

• Completed acquisition of Intelliwave Technologies for $29.8 million to enhance Workforce Management.

Financial highlights

• Q2 non-GAAP operating income was $50 million, with a 17.6% margin; GAAP operating margin was (5%).

• Six-month revenue ended June 30, 2024 was $553.8 million, up 25% year-over-year.

• Net cash provided by operating activities was $127.8 million for H1 2024; free cash flow for Q2 was $46.6 million.

• Deferred revenue as of June 30, 2024 was $494.7 million; RPO grew 22% year-over-year to $1.04 billion.

• Cash, cash equivalents, and marketable securities totaled $780.8 million as of June 30, 2024.

Outlook and guidance

• Q3 2024 revenue expected between $286 million and $288 million, up 15–16% year-over-year.

• Q3 non-GAAP operating margin projected at 9–10%.

• Full-year 2024 revenue guidance raised to $1.141–$1.144 billion, up 20% year-over-year.

• Full-year non-GAAP operating margin expected at 10–11%, implying 800–900 basis points of margin expansion.

• Near-term disruption and headwinds expected from go-to-market changes, especially in Q4 2024 and into 2025.