Procore Technologies, Inc.

Good afternoon. Thank you for attending the Procore Technologies fiscal year 2022 Q3 earnings call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you'd like to queue for a question on today's call, you can do so by dialing star one on your telephone keypad. I would now like to pass the conference over to your host, Matthew Poyes with Procore Technologies. Thank you. You may proceed.

Thanks. Good afternoon and welcome to I'm Matthew Pulleys, VP of FP&A and Investor Relations. With me today are Tilly Cordomanch, founder, president, and CEO, and Paulie Andres, CFO. A complete disclosure of our results can be found in our press release issued today, which is available on the Investor Relations section of our website. Today's call is being recorded, and a replay will be available following the conclusion of the call. Comments made on this call may include forward-looking statements regarding our financial results, products, customer demand, operations, impact of COVID-19 on our business, and other and assumptions and are based on management's current expectations as of today, November 2, 2022. Procore undertakes no obligation to update any forward-looking statements to reflect new information or unanticipated events, except as required by law. If this call is replayed or viewed after today, the information presented during the call may not contain current or accurate information. Therefore, these statements should not non-GAAP financial measures to provide additional information to investors. The reconciliation of non-GAAP to GAAP measures is provided in our press release. Additionally, we may refer to certain results as organic, which we generally define as business performance or results that exclude the acquisition of level set. However, with respect to our customer count metrics, we define organic to mean customers under Procore contracts. And with that, let me turn the call to Dewey.

Thanks, Matt. And thank you all for joining us today. As you all probably saw from our earnings release, we had an excellent quarter. Paul's going to elaborate on this further in just a few moments, but I like to characterize the quarter as feeling like a good Q4 in terms of big deal momentum. I am so proud of the team for the performance they delivered, and I'm especially grateful to all of our customers who continue to partner with us and place their trust in us. Our customers are responsible for building the world around us every single day. from our schools to our homes, hospitals, airports, and much, much more, as well as the infrastructure that powers and brings them all to life. We are honored to partner with them in their very important work. Today, we're going to keep our prepared remarks brief, since we'll see many of you next week in New Orleans, where we'll be hosting our first ever Investor Day. It's going to be held alongside our annual user conference, Groundbreak. Grubbrick is the industry-leading technology conference where construction leaders from around the world come together to drive the industry forward. We are expecting over 3,000 industry leaders who come from dozens of countries for a jam-packed couple of days filled with incredible content from keynote speakers like Drew Brees, Robin Roberts, and Fred Mills, as well as over 70 breakout sessions. We're also offering countless networking opportunities, an innovation lab where attendees can work with our engineers directly on our future products, and a product pavilion where they can explore hundreds of our marketplace partners. We could not be more thrilled to bring everyone together in person for the first time since 2019. I'm also looking forward to meeting in person with our analysts and shareholders at our inaugural Investor Day on the 9th. The team has been working incredibly hard on Groundbreak. And we hope that you will benefit from the insights we plan to provide. So with that, let's jump into some business updates. We're going to begin with briefly updating you on the demand environment, which I know remains top of mind for many of you. I continue to stay close with our customers on this topic. And from our vantage point, customer sentiment towards the environment remains consistent and positive. Internally, we have yet to see a change in buying behavior or customer demand. Our customers continue to watch the environment closely, and in some cases, they're taking a variety of steps to counter short-term volatility, such as focusing more heavily on planning or pre-purchasing materials to secure pricing. But our customers remain optimistic overall about the long-term outlook. Most of our customers have strong backlogs, and sectors like non-residential and energy continue to perform well. And many of our customers anticipate project inflows from various infrastructure bills globally. All of this combined with our continued healthy pipeline and performance leads me to feel positive about our business. Of course, we've all seen that the news and some economic reports appear mixed, and some pockets of construction are already or may eventually feel pressure should economic conditions deteriorate. As we've shared before, and we will discuss next week, not all sectors of the industry behave the same during boom and bust times. When demand in one sector wanes, we often see demand grow in another. We have very diversified portfolio customers. These customers often run diversified portfolios themselves, so we do not anticipate excessive exposure to one particular segment. Speaking of customers that run diversified portfolios, this quarter I am pleased to share that Brasfield & Gorey, one of the largest privately held general contractors in the U.S., expanded significantly with us. Brasfield & Gorey manages a highly diverse mix of projects that span across many different sectors, including aerospace and aviation, commercial, energy, healthcare, and multifamily residential, just to name a few. After a competitive evaluation, Brasfield & Gorey selected Procore to scale across the enterprise because of our superior end-to-end platform and our shared people-first culture. As they continue to grow, Procore will help them streamline their processes drive efficiencies, and enable them to leverage data which will drive better business outcomes. In addition to general contractors, we continue to expand relationships with notable owners, including a Fortune 100 retailer. This customer originally bought Procore to manage all of their projects, including new builds, store remodels, merchant transitions, and special projects. Since then, our relationship has remained strong with the customer deciding to expand with us after their initial multi-year term. This customer has built over a dozen complex integrations with Procore, allowing them to flow data to and from their various critical systems, indicating a strong commitment to our platform and its relevance across their business. They continue to invest heavily in their capital assets, and they expect to build even more in 2023 and beyond. We are delighted to continue partnering with them on this journey. Not only are we continuing to expand relationships with customers, we're building new ones. The city of New Orleans is a new public owner customer with a population of almost 400,000. The city of New Orleans manages critical infrastructure projects, including a $2.3 billion program to restore damaged infrastructure in the aftermath of Hurricane Katrina. In order to better collaborate with other public sector partners, they chose to consolidate their existing system and standardize across Procore. By adopting Procore, they benefit from more efficient processes, better controls, and improve visibility into their infrastructure program. We are thrilled to have developed this relationship with the very city where we're hosting Groundbreak and our Investor Day next week. Not only are we supporting the industry's efforts to transform the way it operates, we are reflecting upon our own operations. As I've shared in the past few quarters, I have been focusing a lot of my energy on hiring the right leaders to set Procore up for success in the immediate and long term so that we can scale our operations for future growth. The specific area of focus has been our executive team and what our company, our employees, and our customers need during this next chapter for Procore. The last several months we've welcomed to our executive team Joy Derling, our Chief Data Officer, Steve Davis, our President of Product and Technology, and today I am very excited to announce that Olga Kibler will be joining Procore as our Chief People Officer. Olga joins us with over 20 years of human resource leadership experience at several market-leading software companies, including Five9 and DocuSign. In addition, our chief revenue officer, Dennis Landris, will transition into a new role as special advisor to the CEO, where he'll focus on certain areas of strategic importance to Procore's future success, including international expansion and scale. Procore's go-to-market team is very strong and has been executing very well this year, as you can see from our Q3 results. We believe we have the right strategy and the right team in place, and this is an ideal time for Dennis to shift his focus to advise me in specific areas of the business where he can add the most value. You know, Dennis has been instrumental to the company over the last several years. He has directly contributed to leading Procore from $10 million in revenue to hundreds of millions today. He was critical to our evolution from serving general contractors to owners and specialty contractors, as well as our international expansion. In this new role, I expect Dennis to continue to provide an outsized impact to me and to the company. While we begin searching for a new revenue leader for this next phase of growth, the talented leaders from our sales, marketing, and customer success organization will report into me. So before I hand it over to Paul, I'd like to conclude by reiterating what an incredible position Procore is in today. We have tremendous trust and deep relationships with the construction industry. And we continue to hear from our customers and industry experts that our platform and solutions are the best in the industry and that we are helping our customers manage risk and run better businesses. Procore is performing very well, as you can see from today's results. Our executive team is expanding with excellent leaders to help us scale to the next stage of our growth. So I want to conclude today's remarks by letting you know how incredibly proud I am of everything we've accomplished, and I am so excited to see what the future holds. I can't wait to share more with you all next week. And as a reminder, this will be Procore's first in-person groundbreak since 2019 and our very first ever Investor Day. It's going to be amazing, and I look forward to seeing many of you there. Now I'll hand it over to Paul.