Summary
Procore reported revenue of $284.35 million for the quarter ended June 30, 2024, up 24.4% from the prior-year quarter. Gross profit rose 26.9% to $236.25 million and gross margin came in at 83.1%, up 1.6 percentage points from a year earlier. The operating loss narrowed to $14.78 million from $58.73 million, and operating margin improved to negative 5.2% from negative 25.7%. Net loss narrowed to $6.31 million from $52.88 million, and diluted loss per share was $0.04, improved from $0.37. Non-GAAP gross margin was 87% and non-GAAP operating margin was 17.6%.
Through the first six months of fiscal 2024, revenue was $553.78 million, up 25.3% from the prior-year period. Cash generation swung hard. Operating cash flow for the second quarter was $58.70 million, up from a use of $11.68 million in the prior-year quarter, and year-to-date operating cash flow was $127.84 million against $17.60 million. Capital expenditures for the quarter fell 25.7% to $1.87 million. Free cash flow for the quarter was $47 million, which is a separate measure from operating cash flow because it also deducts property purchases and capitalized software development costs.
Retention held steady. Gross revenue retention was 94%. Customers contributing more than $100,000 of annual recurring revenue totaled 2,191 as of June 30, 2024, up 20% year over year. Procore added 152 net new organic customers in the quarter and ended with 16,750 organic customers, up 7% from 15,704 a year earlier. Total remaining performance obligations were $1.00 billion, up 17.7% from $849.50 million. Current deferred revenue rose 18.7% to $494.68 million. Current RPO of $724.8 million grew 16%, with roughly 5% of that increase from existing customers and 95% from new customers. Non-U.S. revenue was 15% of total revenue in the first half, up from 14%.
Guidance points to a slower second half. For the third quarter, the company guided to year-over-year revenue growth of 15% to 16% and a non-GAAP operating margin of 9% to 10%. For the full fiscal year 2024, Procore guided to revenue growth of 20% and a non-GAAP operating margin of 10% to 11%. The third-quarter growth range sits below the 24.4% reported for the second quarter.
Product work continued. Procore acquired Intelliwave Technologies in May 2024 to bolster materials management, after buying Unearth Technologies in September 2023, and it launched Procore Pay. The company also began the FedRAMP authorization process and rolled out a Procore Copilot integration through Microsoft Teams. None of these efforts is material to revenue yet.
Risks temper the picture. Management tied part of the decline in the cRPO annual growth rate to cautious customer spending amid elevated inflation, higher interest rates and geopolitical uncertainty. Procore is reorganizing its go-to-market model around a general manager structure for North America, Europe, Asia-Pacific and the Middle East, plus public sector and channel motions, and it warns of some disruption and near-term adverse impacts on financial results during the transition. The company carried an accumulated deficit of $1.2 billion as of June 30, 2024, even with $780.8 million in cash, cash equivalents and marketable securities. International expansion requires investment across languages, currencies and regulatory systems, and competition for construction software budgets remains intense.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $284.3M | $269.4M | +5.5% | $228.5M | +24.4% |
| Gross profit | $236.2M | $223.7M | +5.6% | $186.2M | +26.9% |
| Gross margin | 83.1% | 83.0% | +0.0 pp | 81.5% | +1.6 pp |
| Research & development | $72.3M | $70.6M | +2.4% | $73.2M | -1.2% |
| Sales & marketing | $127.9M | $121.0M | +5.7% | $125.4M | +2.0% |
| General & administrative | $50.8M | $51.0M | -0.4% | $46.4M | +9.5% |
| Total operating expenses | $251.0M | $242.6M | +3.5% | $245.0M | +2.5% |
| Operating income (loss) | -$14.8M | -$18.9M | +21.8% | -$58.7M | +74.8% |
| Operating margin | -5.2% | -7.0% | +1.8 pp | -25.7% | +20.5 pp |
| Net income (loss) | -$6.3M | -$11.0M | +42.4% | -$52.9M | +88.1% |
| Net margin | -2.2% | -4.1% | +1.9 pp | -23.1% | +20.9 pp |
| Diluted EPS | -$0.04 | -$0.08 | +$0.04 | -$0.37 | +$0.33 |
Risks
MD&A states macroeconomic factors, including elevated inflation and higher interest rates, have resulted in cautious customer spending and contributed to the decline in the company's cRPO annual growth rate. Total current RPO still increased 16% year over year, but slower customer spending could pressure future bookings.
The company is evolving its go-to-market operating model, including implementing a general manager model for North America, Europe, Asia-Pacific, the Middle East, public sector, and channel. MD&A anticipates some disruption and near-term adverse impacts to financial results as these changes are implemented.
International expansion is described as a major greenfield opportunity but requires considerable management attention and resources. Non-U.S. revenue was 15% of total revenue for the six months ended June 30, 2024, and significant international investments may adversely affect operating results in the near term.
Despite $127.8 million of operating cash flow for the six months ended June 30, 2024 and $780.8 million in cash, cash equivalents, and marketable securities as of June 30, 2024, MD&A states the company had an accumulated deficit of $1.2 billion and may not achieve profitability in the foreseeable future, potentially requiring additional capital.
The company continues to acquire businesses, such as Intelliwave Technologies in May 2024, and states future success depends on successfully developing or acquiring, marketing, and selling new products and services. Integration and realization of strategic benefits from acquisitions remain uncertain.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Non-GAAP Operating Margin
Total Organic Customers
Net New Organic Customers
Customers > $100K ARR
Gross Revenue Retention
Non-GAAP Free Cash Flow
Current Remaining Performance Obligations (cRPO)
Summary, forecast, risks and KPIs are extracted from PROCORE TECHNOLOGIES, INC.'s SEC filings for Q2 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.