News Summary
Procore Technologies has reported a significant 13.9% year-on-year revenue increase for its second quarter earnings, reaching $323.9 million. This performance surpasses Wall Street expectations and showcases strong profit at $0.35 per share. Despite a net loss, the company is betting on strategic acquisitions and international expansion to drive future growth. Its solid customer base and improving financial health suggest a promising outlook, though market uncertainties remain. Procore aims to maintain its competitive edge in the evolving construction technology sector.
Procore Technologies Reports Strong Q2 2025 Earnings
Procore Technologies (PCOR) has announced its financial results for the second quarter of the calendar year 2025, revealing a significant revenue increase of 13.9% year-on-year, totaling $323.9 million. This growth has surpassed analysts’ expectations by 3.9%, reflecting the company’s strong performance in the construction software sector.
Looking ahead, Procore anticipates revenue for the upcoming third quarter to be approximately $327 million, closely aligning with analyst predictions. However, despite the positive revenue growth, Procore reported a net loss of $21.09 million for the quarter.
Strong Financial Metrics
In terms of profitability, Procore’s non-GAAP profit was reported at $0.35 per share, exceeding analysts’ forecasts by a notable 33.4%. The company’s adjusted gross margin has also improved to 83%, up from 79% in earlier reporting periods. Furthermore, Procore achieved a non-GAAP operating margin of 13%, a positive sign of its ability to generate sustainable profits.
Billings for Q2 reached $322.2 million, with an average yearly increase of 13.6% over the past four quarters; however, this growth rate is slightly lower than total sales growth. The company’s customer base continues to expand, with a total of 17,501 clients and an increase of 195 customers from the previous quarter, showcasing a gradual yet steady sales momentum.
Cash Flow and Market Position
Procore generated an operating cash flow of $31 million and $11 million in free cash flow, a remarkable turnaround from historically negative cash flows. The company boasts an impressive gross revenue retention rate of 95%, indicating a strong level of customer loyalty and satisfaction.
In addition to organic growth, Procore is actively enhancing its capabilities through strategic acquisitions. Notable additions include Novorender and Flypaper Technologies, which bolster its Building Information Modeling (BIM) services, positioning the company as a leader in the construction software market. As of 2024, Procore holds approximately 7.4% of the market share, with the overall construction software market projected to grow at a compound annual growth rate (CAGR) of 10.1% through 2032.
Future Outlook and Leadership Changes
Despite the positive revenue figures, analysts remain cautious regarding Procore’s future growth, citing ongoing market transitions and macroeconomic uncertainties. The company has forecasted a revenue growth rate of around 12% for the year 2025, with an expected earnings per share (EPS) of $1.27.
Procore is also exploring avenues for international expansion and implementing artificial intelligence to enhance product offerings. However, there are concerns about pricing transparency that could potentially impact customer retention rates amid increasing competition in the market.
In a noteworthy shift, Procore’s founder, Tooey Courtemanche, is transitioning to the Executive Chairman role, initiating a search for a new CEO to guide the company through this phase of growth and strategic development.
As Procore continues to navigate challenges and opportunities in the construction technology landscape, its latest earnings report exemplifies a commitment to innovation and customer satisfaction, even amidst the evolving dynamics of the industry.
Deeper Dive: News & Info About This Topic
Additional Resources
- AINVEST: Procore Technologies Poised for Profitability Growth
- Wikipedia: Procore Technologies
- TradingView: Procore Posts Better Than Expected Sales in Q2
- Google Search: Procore Technologies
- Finimize: Procore Reports Growth and Big Bets on Building Tech
- Encyclopedia Britannica: Construction Technology
- Futunn: Insights Ahead of Procore Technologies’ Quarterly Earnings
- Google News: Procore Technologies Earnings
- Investing.com: Procore Technologies SWOT Analysis
- Google Scholar: Procore Technologies
Author: Construction CA News
CALIFORNIA STAFF WRITER The CALIFORNIA STAFF WRITER represents the experienced team at constructioncanews.com, your go-to source for actionable local news and information in California and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rose Parade, Coachella, Comic-Con, and the California State Fair. Our coverage extends to key organizations like the California Building Industry Association and Associated General Contractors of California, plus leading businesses in technology and entertainment that power the local economy such as Apple and Alphabet. As part of the broader network, including constructionnynews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic landscape across multiple states.
