Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How sustainable is the momentum in the owner segment, and can it offset cyclical headwinds in the business? A: Craig Courtemanche, CEO, emphasized the significant opportunity in the owner segment, which is currently only 2% penetrated. He noted that while there was strength across all stakeholders, the owner segment presents a substantial opportunity for growth, demonstrating the vast potential ahead for Procore.
Q: What drove the early renewals in cRPO, and how does it impact future performance? A: Howard Fu, CFO, attributed the early renewals to strong execution and progress across Procore's total addressable market (TAM). He noted that the early renewals were a result of less disruption than expected from the go-to-market transition, contributing to strong bookings performance in Q4.
Q: How is Procore's new sales coverage plan being received, and what is the potential for disruption? A: Craig Courtemanche, CEO, reported extreme excitement and enthusiasm from the sales organization and customers about the new sales model. He acknowledged that the execution phase is just beginning, with new teams building pipelines and focusing on new accounts, but expressed confidence that the changes will pay off by the second half of the year.
Q: How does Procore plan to balance top-line growth and margin expansion in 2025? A: Howard Fu, CFO, stated that Procore will continue to expand margins in 2025 and 2026, optimizing for free cash flow per share. He emphasized the importance of balancing revenue growth with margin improvements, with the expectation that productivity will pick up in the latter half of the year.
Q: What is the feedback on Procore's AI initiatives, such as Copilot and Agents? A: Craig Courtemanche, CEO, highlighted positive feedback from customers using Copilot, which provides intelligent answers rather than just search results. He discussed the potential of Agents to monitor projects 24/7, improving schedule and budget management, and emphasized the unique advantage Procore has with its unified platform and data set.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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