Summary
Procore Technologies reported first quarter fiscal 2024 revenue of $269.4 million, up 26.2% year over year, and gross profit of $223.7 million, up 29.1%. Gross margin was 83.0%, up 1.9 percentage points. The company still posted a GAAP operating loss of $18.9 million, though the loss narrowed, and operating margin improved 25.4 percentage points to negative 7.0%. The net loss narrowed to $11.0 million, and diluted EPS improved to negative $0.08. Operating cash flow was $69.1 million, up 136.2%, while capital expenditures were $2.1 million, down 3.9%. On a non-GAAP basis, gross margin was 86%, operating margin was 14%, and net income was $45.0 million. The earnings release reported free cash inflow of $58 million for the quarter, and the cash flow reconciliation showed non-GAAP free cash flow of $57.5 million.
Customer metrics held up. Gross revenue retention was 95% in the first quarter. Procore added 231 net new organic customers, ending with 16,598 organic customers, up from 15,089 as of March 31, 2023. Total remaining performance obligations were $1.00 billion, up 24.1% year over year, and deferred revenue, current portion, was $487.9 million, up 21.1%. The company also pointed to its number 8 ranking among G2's Top 100 Best Global Software Companies of 2024. Product investment continued through Procore Risk Advisors, launched in March 2023, Procore Pay, launched in September 2023, and the Unearth acquisition, also completed in September 2023.
Guidance for the second quarter of fiscal 2024 calls for a range of $274 million to $276 million, representing year-over-year growth of 20% to 21%, with non-GAAP operating margin of 11% to 12%. For the full fiscal year 2024, the range is $1,140 million to $1,144 million, representing year-over-year growth of 20%, with non-GAAP operating margin of 9% to 10%. Procore stated that a reconciliation of non-GAAP guidance measures to GAAP measures is not available on a forward-looking basis because the relevant expenses cannot be reasonably determined or predicted without unreasonable effort.
Risks remain substantial. Procore said macroeconomic and geopolitical factors, including inflation, rising interest rates, volatility in capital markets, bank failures, foreign exchange swings, and wars such as the Russia-Ukraine war, can affect customer spending and its own costs. Cautious customer spending has contributed to a decline in cRPO annual growth, according to the filing. International expansion carries its own burden, since the business operates across multiple languages, currencies, legal systems, tax rules, and regulatory regimes, and management has said these investments may hurt near-term results while supporting long-term growth. Competition and the ability to build and sell new products are also flagged as risks. A January 2024 restructuring pushed severance costs through cost of revenue, sales and marketing, research and development, and general and administrative expenses. Since March 31, 2023, headcount fell 6% in cost of revenue, 7% in sales and marketing and 2% in research and development, while general and administrative headcount was unchanged. The filing also notes that Procore has continued to generate losses from operations and may not achieve profitability in the foreseeable future.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $269.4M | $260.0M | +3.6% | $213.5M | +26.2% |
| Gross profit | $223.7M | $212.2M | +5.4% | $173.3M | +29.1% |
| Gross margin | 83.0% | 81.6% | +1.4 pp | 81.2% | +1.9 pp |
| Research & development | $70.6M | $74.6M | -5.4% | $80.0M | -11.8% |
| Sales & marketing | $121.0M | $122.5M | -1.2% | $117.4M | +3.1% |
| General & administrative | $51.0M | $52.4M | -2.7% | $45.2M | +12.9% |
| Total operating expenses | $242.6M | $249.5M | -2.8% | $242.6M | +0.0% |
| Operating income (loss) | -$18.9M | -$37.3M | +49.4% | -$69.3M | +72.7% |
| Operating margin | -7.0% | -14.4% | +7.3 pp | -32.4% | +25.4 pp |
| Net income (loss) | -$11.0M | -$29.5M | +62.9% | -$63.4M | +82.7% |
| Net margin | -4.1% | -11.3% | +7.3 pp | -29.7% | +25.6 pp |
| Diluted EPS | -$0.08 | -$0.21 | +$0.13 | -$0.45 | +$0.37 |
Risks
MD&A states that macroeconomic and geopolitical factors have resulted in cautious customer spending, contributing to the decline in the company's cRPO annual growth rate. Total RPO as of March 31, 2024 was $1.01 billion, up 25% versus the prior-year period, though growth in current RPO of 20% reflects the moderation the company attributes to customer caution.
Non-U.S. revenue was 14% of total revenue for the three months ended March 31, 2024, and the company plans continued significant investment in international markets across multiple languages, currencies, legal, tax, and regulatory systems. Management explicitly notes these investments may adversely affect operating results in the near term.
The company reported an accumulated deficit of $1.1 billion as of March 31, 2024 and states it may not achieve profitability in the foreseeable future and may require additional equity or debt financing to fund strategic initiatives, acquisitions, and expansion. Failure to raise capital on acceptable terms could materially adversely affect results.
Growth strategy depends on developing or acquiring new products, including Procore Pay, Procore Risk Advisors, Unearth, Levelset, LaborChart, and Esticom, which management notes are not yet material to the business. The company highlights its ability to successfully integrate and realize strategic and financial benefits from acquisitions as a key factor affecting future results.
A restructuring event in January 2024 drove severance costs recorded in cost of revenue and across sales and marketing, research and development, and general and administrative expenses in the three months ended March 31, 2024. Headcount was reduced 6% in cost of revenue, 7% in sales and marketing, and 2% in research and development since March 31, 2023, creating execution risk around operating efficiency gains.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Non-GAAP Operating Margin
Total Organic Customers
Net New Organic Customers
Gross Revenue Retention
Non-GAAP Free Cash Flow
Current RPO (cRPO)
Total Remaining Performance Obligations
Summary, forecast, risks and KPIs are extracted from PROCORE TECHNOLOGIES, INC.'s SEC filings for Q1 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.