Procore Technologies, Inc.

Hello, everyone. Thank you for joining us and welcome to the Procore Technologies Fiscal Year 2026 third quarter earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Gal Munda, Investor Relations. Gal, please go ahead.

Good morning and welcome to Procore's 2026 Third Quarter Earnings Call. I'm Gal Munda, VP of Investor Relations. With me today are Ajei Gopal, President and CEO, and Rachel Pyles, CFO. Further disclosure of our results can be found in our press release issued last night, which is 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 performance, our platform, products, our partnerships, customer demand, AI, drone deploy, and our business strategies and operations. You should not rely on forward-looking statements as predictions of future events. All forward-looking statements are subject to risks, uncertainties, and assumptions and are based on management's current expectations and views as of today, November 4th, 2026. Procore undertakes no obligation to update any forward-looking statements except as required by law. If this call is replayed after today, the information presented may not contain current or accurate information. Therefore, statements made during this call 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. And with that, let me turn the call over to Ajei.

Good morning and thank you for joining us. I'm excited to report that our business continues to perform exceptionally well with outstanding financial and operational results for the quarter. Procore has built one of the most essential vertical software platforms. We are the center of the construction industry, capturing information, automating workflows, and enabling collaboration among every stakeholder on a project. We operate where the physical and digital worlds meet, driving designs and decisions into the field and turning job site realities into actionable intelligence. We believe we are well on our way to becoming a next generation AI native construction management platform and a true system of intelligence for construction. One that automatically sees what happens on the job site, understands what it means and acts on it. Such a system will deliver meaningful efficiency and safety gains across the construction lifecycle, saving our customers time and money. This quarter, we completed our acquisition of DroneDeploy, which adds visual intelligence to our platform and accelerates our transformation. I'm also delighted that the executive changes we made earlier this year are already making a difference. Procore now has a veteran team with deep vertical software experience that is working well together and driving outstanding results. At Groundbreak, our customer conference, we hosted more than 5,000 attendees, and what I heard from customers there strengthened my belief in our portfolio and the value it delivers. I'm more confident than ever that the strength of our business, our ability to execute, and the depth of our customer relationships gives us a clear runway to durable growth, meaningful margin expansion, and compounding free cash flow per share. Q3 picked up where Q2 left off, and both revenue and margins came in above the high end of our guidance. Revenue for the quarter grew 18.7% year over year, or 17.1% year over year, excluding drone deploy, and non-GAAP operating margins was 23.5%. Given this momentum, we are raising full year guidance beyond our Q3 beat. Rachel will share the details shortly. Growth this quarter came from all three of our customer stakeholders, general contractors, specialty contractors, and owners. GCs are our largest segment at about 60% of our business, and we see opportunity in both new logos and expansion. For example, in Q3, we signed a new contract with Suffolk, a top 25 ENR contractor and longtime customer, to leverage Procore to standardize their project and financial management workflows into more of their many projects. The company uses Procore to consolidate field-to-office workflows and improve project team performance and efficiency. One of our largest contracts this quarter was with Schneider Electric Secure Power, a specialty contractor that designs, builds, and manufactures data center infrastructure. As the company ramps up production to meet hyperscale AI demand, it is expanding Procore usage across the secure power organization and broadening the solution scope to include project execution and resource management to connect engineering, program and project management, and construction field operations with the goal to unify the customer execution and experience from deployment through handover. Owners are another important part of our business, and in Q3 we added a notable new one, a U.S. government agency. This contract was won in part thanks to Procore for Government's FedRAMP Moderate Authorization. The agency is replacing both a competing solution and spreadsheet-based project tracking. By standardizing drawing distribution and version control on Procore, the agency aims to eliminate manual revision management, enable real-time reporting, and meet federal security requirements. During Q3, we completed our acquisition of DroneDeploy. As a software offering, DroneDeploy works across various hardware environments, including drones, ground robots, mobile devices, and cameras. Connecting what Procore already knows about a project with what DroneDeploy sees on site is how we build the system of intelligence I described earlier. Product integration is underway, and our early focus is on expanding the pre-acquisition connectivity between the two product suites, connecting datasets, and bringing DroneDeploy's AI agents into Procore AI. Moving to go to market, I'm excited about the revenue synergy opportunities ahead of us. At the time of the acquisition, Procore and DroneDeploy shared approximately 600 customers, which shows clear demand for the two product suites working together. Beyond expanding within those customers, we see significant near-term cross-sell opportunities in both directions. Procore customers can add visual intelligence that works natively with the Procore tools they already rely upon. And many drone deploy customers are owners to whom we can introduce the full set of Procore's owner solutions. Rachel will discuss the combined financial outlook shortly. Procore's shift to an AI-native company builds on four advantages which are hard to replicate. First, users' data and context. More than 3 million active users this year, more than 20 years of project data and activity history, and now Drone deploys approximately 20 trillion square feet of visual data. Second, security and trust. Customers already run their most important projects on Procore's platform, which is designed to be secure and compliant. Third, a network effect. Dozens of companies work together in Procore on every project, and each new project can bring more of them onto the platform. Fourth, action. Procore is where decisions turn into work on the job site. We believe these four advantages empower us to use AI more effectively to both augment our flagship products and to create new offerings. We are using AI to make our flagship products more powerful and easier to use. This helps us attract new accounts and expand usage within existing customers. Take submittals, one of construction's most labor-intensive, schedule-critical workflows. A submittal shows the GC and design team exactly what a subcontractor plans to install, and nothing gets ordered or installed until it's approved. The GC runs both ends. It builds a log of every submittal the spec requires, sends it to subcontractors, and then approves or rejects each response. Our submittal builder, part of our flagship project management offering, builds that log. It cut days of combing through spec books down to minutes, but it only read the submittal section of the spec book. Our recent AI upgrade reads every section in full. It catches requirements buried elsewhere, like warranty and closeout items, and fills in each submittal's type and title. Teams start from a far more complete log and finish in a fraction of the time. We're also building products that weren't possible before generative and agentic AI, including Procore AI Go and our digital coworkers, which became generally available in Q3. One of them, the Submittal Review Agent, handles the GC's review at the other end of the workflow, a problem software hadn't previously solved. It checks each submittal against the specs and contract, flags deviations and unapproved submissions, and drafts a response. McCowan Gordon, a Kansas City GC, shows how the pieces fit. It had already standardized on the upgraded submittal builder, and they recently signed on for Procore's digital coworkers using the submittal review agent to check subcontractors' responses. In one case, the agent caught 10 door openings missing from a submittal before the error reached the field, avoiding costly rework. Procore AI Go introduced at Groundbreak is a voice-first mobile app now in beta. Crews ask questions about their drawings, specs, RFIs, and submittals, and hear the answers without stopping work. Through a new collaboration with Meta, workers can use Procore AI Go hands-free on Meta's AI glasses. On a construction project, one question is rarely a single task. Answering it can mean pulling dozens of records from multiple tools and checking each against the current drawings and specs. Version 3.0 of Magpie, the reasoning engine behind Procore AI, breaks questions like these into parts, sending specialized sub-agents across the project, and returns answers with cited evidence. Based on our internal testing, we believe Magpie outperforms the leading frontier models in construction tasks. At Groundbreak, we also reaffirmed our commitment to improving the core products our customers rely on every day. and we are delivering. Beyond our new AI offerings, we shipped more than 500 new capabilities in the last 12 months. We have delivered every major product that we announced at last year's Groundbreak in GA or Beta. That track record is what earns us the right to introduce customers to new technology. And as we saw at Groundbreak, customers are excited about our new AI offerings. Procore AI Go and Procore's digital coworkers enable customers to see what's actually happening on a project, understand the impact of decisions, and then take action to change the outcome. That's real value for customers. It offsets labor shortages and saves time and money. We believe that the opportunity is large and that AI will help us unlock labor budgets that sit outside traditional software spend. At Groundbreak, we introduced new and expanded partnerships. NVIDIA CEO Jensen Huang joins us virtually to announce that we are extending our digital twin capabilities beyond AI data centers to other megaprojects, including healthcare facilities and critical public infrastructure. The solution, now in closed beta, lets teams see a project in realistic 3D and understand how disruptions would ripple through the schedule so they find problems earlier and avoid costly rework. SWITCH, a joint Procore and NVIDIA customer, designs, builds, and operates advanced data centers. SWITCH uses 3D visualization to gain greater clarity into construction progress, make better informed decisions earlier, and keep complex projects on schedule. We also announced a partnership with IBM that creates a continuous flow of asset data from the job site into IBM Maximo, IBM's enterprise asset management software. For many owners, asset handover is still slow, manual, and error prone, with turnover packages assembled from spreadsheets and untagged photos. Partnering with leaders like IBM lets us focus on our strengths while reaching a broader customer base. To summarize, Q3 was another excellent quarter for Procore. We exceeded the high end of our guidance on every key metric and raised our outlook for the year. We delivered new capabilities across our flagship products, made Procore AI's digital coworkers generally available, and closed and began integrating drone deploy. All of this serves our vision and mission of improving the lives of everyone in construction. With a platform that connects those stakeholders, a growing AI portfolio, and an experienced leadership team, we are well positioned for durable growth, meaningful margin expansion, and compounding free cash flow per share. I'm excited about what's ahead. I want to thank my colleagues around the world. Their hard work drives our success and our customers' success. And with that, I'll turn the call over to Rachel. Rachel?