Procore Technologies, Inc.

Good afternoon, and thank you for joining today's Procore Technologies, Inc. FY25 Q2 earnings call. My name is Regan, and I'll be your moderator today. All lines will be muted during the presentation portion of today's call with an opportunity for questions and answers at the end. And if you'd like to ask a question, please do so by pressing star 1. I would now like to pass the conference over to our host, Alexander Geller, head of IR. Please proceed.

Good afternoon, and welcome to Procore's 2025 Second Quarter Earnings Call. I'm Alexandra Geller, Head of Investor Relations. With me today are Thuy Khoury-Manch, Founder, President, and CEO, and Howard Fu, CFO. Further disclosure of our results can be found in our press release issued today, which is also available on the Investor Relations section of our website and our periodic reports filed with the SEC. Today's call is being recorded, and a replay will be available following the conclusion of the call. Comments made on this call include forward-looking statements regarding, among other things, our financial outlook, go-to-market transition, platform and products, customer demand, operations, and macroeconomic and geopolitical conditions. You should not rely on forward-looking statements as predictions of future events. All forward-looking statements are subject to risk uncertainties, and assumptions, and are based on management's current expectations and views as of today, July 31st, 2025. 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 be relied upon as representing our views as of any subsequent date. We'll also refer to certain non-GAAP financial measures to provide additional information to investors. A reconciliation of non-GAAP to GAAP measures is provided in our press release and our periodic reports filed with the SEC. With that, let me turn the call over to Thuy.

Thanks, Alex, and thank you, everyone, for joining us today. Let's start with our Q2 performance, which represented another solid quarter for the year. Some highlights include revenue grew 14% year over year. Non-GAAP operating margins increased quarter over quarter to 13%. We had a strong quarter for large deals with a number of six and seven figure deals growing 21% year over year, resulting in more than 2,500 customers contributing greater than $100,000 in ARR. and we saw continued progress with our go-to-market transition, positioning Procore for efficient growth as we build deeper and lasting partnerships with our customers. In June, we held our annual Innovation Summit, exploring how AI-connected workflows and smart data are transforming the construction industry. Our latest innovations put Procore at the forefront of this transformation as we help to define the next era of construction. So I'd like to share a few of these exciting innovations. Starting with AI intelligence, we introduced Procore Helix, our intelligence layer with powerful capabilities, including Assist, formerly known as Copilot, our improved conversational intelligence experience. Second, Agent Builder, which allows customers to build custom agents tailored to their unique workflows directly in Procore. And third, Developer Studio, which will allow agents to work across apps or platforms by leveraging MCPs, third-party integrations, and APIs. We also have out-of-the-box agents in limited release today for our largest customers, including daily log accountability agents and RFI agents, with many more in development. We are reimagining the way the owners plan, build, and operate their global portfolios with robust capabilities tailor-made for owners, such as owner's portfolio home, a comprehensive portfolio management solution, and integrated asset management for fixed assets to generate even more value for owners. And we continue to innovate our existing products with planned enhancements to improve safety on the job site, simplify scheduling changes to keep projects on track, and create one of the industry's most comprehensive project financials offerings. We're also unlocking one of the world's most powerful 3D streaming BIM engines with our acquisitions of NovaRender and Flypaper. The announcements that we shared at the Innovation Summit are just the beginning of what's to come when you combine human expertise with intelligent technology. We're not just changing workflows. We're changing how the industry thinks about what's possible. You know, I spent a lot of time on the road this past quarter visiting employees and customers across the U.S. and Europe. And a few things stood out everywhere I went. Our customers are incredibly optimistic about the rapid pace of technological change and the potential to transform the construction industry. And our employees are equally energized, including our global sellers. I'm continually impressed by the talent density that we built and the level of product and engineering innovation happening across the company. It's clear the work that we're doing is meaningful and pushing the industry forward. This optimism about the future of construction became clear in a recent conversation I had with John Fish, CEO of Suffolk, widely recognized as one of the most innovative leaders in our space. We discussed how AI, by automating some of the most laborious tasks, empowers construction professionals to step into more impactful, fulfilling roles as knowledge workers. This shift is not only changing how we build, but also who chooses to build, attracting a new generation of talent to an industry that's becoming more dynamic, innovative, and rewarding. By consistently innovating for our customers, we're securing customer wins. In Q2, we added new customers across all stakeholders, including Calpine Corporation, a leading U.S. renewables energy company, a top 10 ENR 400 general contractor, the Department of Transportation for a large southeastern state and a major consumer electronics retailer. Another new customer in the quarter was top design-build contractor Clayco, one of the largest construction firms in the U.S. Clayco sought to better integrate a highly segmented technology stack to meet the diverse needs of its six business units. In Q2, they chose Procore to replace an incumbent vendor, and help consolidate across a host of solutions. A crucial factor in their decision was finding a partner capable of unifying their construction data with their data architecture vision across multiple enterprise applications. Procore won the deal by demonstrating our ability to streamline their financial processes, enhance budget management, and deliver a fully integrated solution that could support the unique needs for all business units. Clayco purchased products across our platform to standardize all construction projects on Procore. This win underscores the significant market opportunity that remains within U.S. general contractors. Another large new logo win in the quarter was a leading U.S. egg producer and one of the nation's largest barn builders experiencing significant CapEx growth. With a lean team and highly manual processes, they frequently faced costly project delays and spent significant time and money traveling for individual site inspections and management. In Q2, they selected Procore to standardize operations and enable their aggressive growth targets. With Procore's crucial field to office connection, they can now operate with greater efficiency from the office, streamlining communication, task management, and accountability to complete their builds on time and on budget. We also had a strong global expansion wins across stakeholders in Q2, including one of Japan's largest contractors, a longstanding GC in the UAE, JT Megan, Purdue University, and a top 10 ENR 600 specialty contractor. One of our largest wins in the quarter was an expansion with ENR 10 HIT Contracting Incorporated. a Procore customer for over 12 years. In that time, HIT scaled its business from $800 million to more than $8 billion in revenue, with Procore as a constant in their technology stack, supporting their impressive growth. In Q2, they expanded their Procore footprint with additional ACV, driven by a growing backlog, primarily due to their leadership position building data centers across the country. With many of their customers also using Procore, they see a tremendous opportunity to leverage AI and to gain further efficiencies as we continue to build out our connected platform. Another large expansion win in the quarter was with a Fortune 150 utility holding company. Already a Procore customer in two of their three business units, this Q2 expansion replaces an outdated homegrown solution in their remaining unit, energy generation. Procore will help them build a wide range of clean energy projects, including large scale solar farms, natural gas plants, and upgrades to major transmission corridors and substations across the Southeast. Procore won the deal due to our proven success within their existing business units, our robust platform, and our ability to transact efficiently. As you can see from these customer wins, the Procore platform is applicable across a wide range of use cases. spanning data centers, energy, agriculture, and everything in between. Our Q2 wins demonstrate our success in attracting new logos, driving increased market share with our existing customers via volume expansion and product cross-sell, as well as strength abroad. We take great pride in our ability to drive efficiency, transparency, and communication across all phases of construction to help our customers build better. As we look ahead, it is clear Procore is just getting started. We are the category leader and one of the world's largest and most under digitized industries. And with the best platform in the market and a singular focus on construction, we believe there's a significant opportunity for continued market share gains. You know, a great example of this is our recent FedRAMP in process designation with Procore now listed on the FedRAMP marketplace. FedRAMP applies to certain federal agencies and contractors, and this designation is an important milestone towards enhancing our ability to serve this segment of the federal market. More broadly, it's a meaningful tailwind within the larger public sector opportunity where we're already seeing momentum across local municipalities, state agencies, and federal projects that do not require FedRAMP. And our platform is only getting better from here. With the rapid advancements that we're driving in areas like AI, we're helping customers make faster, smarter decisions with less risk, all on a unified platform built for the complexities of construction. We're also operating with greater rigor and focus. Our go-to-market transition is on track, and we're executing in a way that positions us for sustained, efficient growth, which will allow us to continue improving our margins, free cash flow, and per share metrics. Look, we are proud of the progress today, but what excites me most is the innovation ahead. We'll showcase many of these innovations at Groundbreak in October, and I believe the next chapter of Procore's growth will be our most transformative yet for our customers, for the industry, and for our shareholders. And with that, I'll turn it over to Howard to walk you through our financial performance.