Procore Technologies' Q2 2025: Unpacking Contradictions on CRPO Growth, Tariff Impact, and AI Integration

CRPO Growth and Normalization, Impact of Tariffs on Customers, AI Adoption and Integration, Sales Model Transition and Impact, Large Deal Activity are the key contradictions discussed in Procore Technologies' latest 2025Q2 earnings call.



Revenue Growth and AI Integration:
- Procore Technologies reported revenue of $324 million for Q2, up 14% year-over-year.
- Growth was driven by strong adoption of AI capabilities and innovations such as Procore Helix and Agent Builder, which enhance efficiency and decision-making in construction projects.

Large Deal Activity and Expansion:
- The company saw a 21% year-over-year increase in large deals, resulting in over 2,500 customers contributing more than $100,000 in ARR.
- This success was fueled by Procore's ability to streamline processes and provide integrated solutions tailored to each customer's needs, demonstrating the platform's versatility across industries.

Non-GAAP Operating Margin Improvement:
- Procore's non-GAAP operating margin improved to 13%, up 300 basis points quarter-over-quarter.
- The improvement was attributed to operational efficiencies and a focus on cost management, positioning the company for continued margin expansion and profitability.

Go-to-Market Transition and Product Cross-Sell:
- Expansion in Q2 was supported by a 70-30 mix between volume expansion and product cross-sell, with increased adoption of the company's financial suite.
- The shift was driven by enhanced technical resources and customer engagement, highlighting the success of Procore's go-to-market strategy in driving customer retention and expansion.

International Revenue and Currency Headwinds:
- International revenue grew 13% year-over-year, impacted by 3 points of headwind due to currency fluctuations.
- On a constant currency basis, international revenue grew 16%, reflecting solid international performance despite external currency pressures.