Summary
Procore Technologies posted $295.9 million of revenue in the third quarter of fiscal 2024, up 19.4% from a year earlier, and year-to-date revenue of $849.7 million, up 23.1%. Gross profit was $240.9 million, up 18.2%, while gross margin eased to 81.4%, down 0.8 percentage points. The company still reports losses on a GAAP basis, but they are getting smaller. The operating loss narrowed to $36.5 million, and operating margin improved by 8.0 percentage points to -12.3%. The net loss narrowed 39.8% to $26.4 million, and diluted loss per share was $0.18. On a non-GAAP basis, gross margin was 85%, operating margin was 9%, and net income was $36.4 million, or $0.24 per diluted share. The spread between the two sets of numbers comes largely from stock-based compensation and amortization of acquired intangibles.
Cash generation is the healthier part of the story. Operating cash flow was $39.3 million in the quarter, up 16.6%, and $167.1 million for the first nine months of fiscal 2024, up 225.9%. Free cash flow, which Procore reports on a non-GAAP basis, was $23 million in the quarter and $127.2 million year to date. Capital expenditures were $3.5 million in the quarter. Bookings also grew: current deferred revenue of $501.6 million rose 17.9%, and remaining performance obligations of $1.10 billion increased 23.5% year over year.
Customer metrics held up. Gross revenue retention was 94% in the third quarter. The number of organic customers contributing more than $100,000 of annual recurring revenue reached 2,261 as of September 30, 2024, an increase of 18% year over year. Procore added 225 net new organic customers in the quarter and ended with 16,975 organic customers. Executives are midway through a go-to-market overhaul that started in July 2024, shifting to a general manager model for North America, Europe, Asia-Pacific, the Middle East and the public sector and adding product and technical specialists to the sales teams. They have warned about near-term disruption from the transition, and the MD&A ties cautious customer spending to a decline in the growth rate of current RPO. Hiring shows the shift: research and development headcount is up 20% since September 30, 2023, while cost of revenue and sales and marketing headcount are down 6% and 5%.
Guidance points to slower growth and much better margins. For the fourth quarter of fiscal 2024, Procore guided revenue of $296 million to $298 million, growth of 14% to 15%, with a non-GAAP operating margin of 3% to 4%. For the full fiscal year 2024, revenue is expected to be $1,146 million to $1,148 million, growth of 21%, with a non-GAAP operating margin of 10.5% to 11%. For the full fiscal year 2025, management guided revenue of at least $1,275 million, growth of 11%, and a non-GAAP operating margin of 13%. The CFO said the company is on track to expand operating margins by 900 basis points at the high end for fiscal 2024. Full-year growth is set to slow from 21% in fiscal 2024 to 11% in fiscal 2025, and the fourth-quarter revenue range implies a sharp step down from the 19.4% reported this quarter.
Capital allocation is changing. On October 29, 2024, the board authorized a repurchase program of up to $300 million of common stock, funded from working capital and expiring on October 29, 2025. That is a new use of cash for a company that has poured money into growth. The risks are familiar and real: construction spending under macroeconomic pressure, execution on the go-to-market transition, integration of acquired businesses such as Intelliwave Technologies, and international expansion across many currencies and regulatory regimes. Procore still expects to maintain a full valuation allowance against its U.S. deferred tax assets for the foreseeable future.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $295.9M | $284.3M | +4.1% | $247.9M | +19.4% |
| Gross profit | $240.9M | $236.2M | +2.0% | $203.8M | +18.2% |
| Gross margin | 81.4% | 83.1% | -1.6 pp | 82.2% | -0.8 pp |
| Research & development | $80.8M | $72.3M | +11.7% | $72.7M | +11.1% |
| Sales & marketing | $141.4M | $127.9M | +10.5% | $129.7M | +9.0% |
| General & administrative | $55.3M | $50.8M | +8.8% | $51.8M | +6.8% |
| Total operating expenses | $277.4M | $251.0M | +10.5% | $254.1M | +9.2% |
| Operating income (loss) | -$36.5M | -$14.8M | -147.0% | -$50.4M | +27.5% |
| Operating margin | -12.3% | -5.2% | -7.1 pp | -20.3% | +8.0 pp |
| Net income (loss) | -$26.4M | -$6.3M | -318.1% | -$43.8M | +39.8% |
| Net margin | -8.9% | -2.2% | -6.7 pp | -17.7% | +8.8 pp |
| Diluted EPS | -$0.18 | -$0.04 | -$0.14 | -$0.31 | +$0.13 |
Risks
In July 2024 the company began evolving its GTM operating model to a general manager structure and adding product and technical specialists. Management expects some disruptions and adverse impacts to financial and operating results in the near term as it invests, increases sales headcount, and ramps enablement for sales teams.
Management states that macroeconomic factors, including elevated inflation, higher interest rates, and geopolitical conflict, have resulted in cautious customer spending and contributed to the decline in cRPO annual growth rate. cRPO increased 16% year-over-year to $738.9 million as of September 30, 2024, while total RPO increased 21% year-over-year.
The company plans significant investments in international markets, with offices in Sydney, Toronto, London, Paris, Dublin, and Dubai. Management says these investments may adversely affect operating results in the near term and expose it to challenges from multiple languages, currencies, cultures, legal, tax, and regulatory systems. Non-U.S. revenue was 15% of total revenue for the nine months ended September 30, 2024, compared with 14% for the nine months ended September 30, 2023.
The company says its future success depends on its ability to successfully develop or acquire, market, and sell existing and new products and services. It continues to evaluate strategic acquisitions and investments, including recent acquisitions such as Intelliwave and Unearth and the launch of Procore Pay, though the impact of these developments is not yet material to its business.
On October 29, 2024, the Board authorized a stock repurchase program of up to $300.0 million, funded using working capital. The program does not obligate the company to acquire any shares, expires on October 29, 2025, and may be suspended or discontinued at any time; repurchases could reduce cash available for working capital, capital expenditures, strategic acquisitions, and other projects or fail to enhance stockholder value.
As of September 30, 2024, the company had an accumulated deficit of $1.2 billion and continued to generate losses from operations. Management says it may not achieve profitability in the foreseeable future and may require additional capital resources to execute strategic initiatives to grow the business.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Non-GAAP Operating Margin
Total Organic Customers
Free Cash Flow
Customers > $100K ARR
Gross Revenue Retention
Current RPO (cRPO)
Total Remaining Performance Obligations
Net New Organic Customers Added
Summary, forecast, risks and KPIs are extracted from PROCORE TECHNOLOGIES, INC.'s SEC filings for Q3 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.