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- **Revenue Resilience**: 14.5% YoY growth despite a 27-point decline in U.S. construction growth, outperforming the market by 16.5 percentage points.
- **Margin Expansion**: Non-GAAP operating margin improved 380 basis points QoQ to 17%, with plans for further profitability gains.
- **Strategic Win**: $10 billion hyperscale data center deal highlights cross-sell success and expansion into high-growth sectors.
- **Leadership Transition**: Ajei Gopal's proven track record at ANSYS positions Procore for future growth under his leadership.
- **AI Innovation**: Launch of Agentic and resource management tools (labor, equipment, materials) drives customer differentiation.

**【CEO Summary Section】**
- **Q3 2025 Performance**: Revenue grew 14.5% YoY, non-GAAP operating margin reached 17%, and large deals (> $100k ARR) increased 31% YoY. The company surpassed $1 trillion in annual construction volume on its platform.
- **Leadership Transition**: Ajei Gopal, former CEO of ANSYS, will succeed Craig Courtemanche as CEO on November 10. Courtemanche emphasized Gopal's operational expertise and alignment with Procore's mission.
- **Market Resilience**: Despite a 27-point decline in U.S. nonresidential construction growth over two years, Procore outperformed the market by 16.5 percentage points in Q3.

**【CFO Financial Commentary】**
- **Financial Highlights**: Q3 revenue of $339 million, non-GAAP EPS of $1.08, and free cash flow focus with a new $300 million stock buyback program.
- **Margin Expansion**: Non-GAAP operating margin improved 380 basis points QoQ, driven by cost control and longer-term contracts.
- **Outlook**: Q4 2025 revenue guidance of $339-341 million (12-13% YoY growth), with full-year non-GAAP operating margin at 14%.

**【Q&A Key Highlights】**
- **Macro Environment**: Construction industry remains cyclical, but Procore's go-to-market model and platform differentiation enable market share gains.
- **Data Center Growth**: Procore signed a $10 billion hyperscale data center deal, reflecting strength in cross-sell and expansion.
- **Customer Retention**: 17% YoY growth in current RPO, driven by longer-term contracts and pooled models offering flexibility.
- **AI and Innovation**: Groundbreak 2025 showcased AI-driven tools like Agentic, with customers expressing excitement over Procore's data advantage.
- **Leadership Transition**: Gopal's first 100 days will focus on onboarding and strategic planning, with no immediate changes to the go-to-market strategy.

Procore Technologies, Inc. (PCOR) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PCOR

PCOR fundamentals

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