Procore Technologies Reports $310.6M Revenue in Q1 2025, Faces Increased Losses

Procore Technologies, Inc. reported a revenue of $310.6 million for the first quarter of 2025, marking a 15% increase from $269.4 million in the same period last year. The company's gross profit also rose to $245.7 million, although the gross margin decreased to 79% from 83% due to a significant increase in the cost of revenue, which surged by 42% to $64.9 million. This rise in costs was primarily driven by higher personnel-related expenses and increased third-party hosting costs as the company expanded its customer base.

The company experienced a net loss of $33.0 million for the quarter, compared to a loss of $11.0 million in the prior year. This increase in losses was attributed to higher operating expenses, which totaled $282.0 million, up from $242.6 million a year earlier. Notably, sales and marketing expenses increased by 15% to $138.7 million, while research and development costs rose by 24% to $87.6 million. The company’s general and administrative expenses also saw a 9% increase, reflecting ongoing investments in its growth strategy.

Procore's customer base grew to 17,306 as of March 31, 2025, a 4% increase from 16,598 a year earlier. The number of customers contributing over $100,000 in annual recurring revenue (ARR) rose by 14% to 2,418. The company maintained a gross retention rate of 95%, indicating strong customer loyalty. Additionally, Procore's remaining performance obligations (RPO) increased by 28% year-over-year to $1.29 billion, with $842.6 million expected to be recognized as revenue in the next 12 months.

Strategically, Procore completed the acquisition of Novorender AS in January 2025 for $44.3 million, enhancing its capabilities in building information modeling technology. The company continues to invest in product development and international expansion, with a focus on capturing a larger share of the global construction market. As of March 31, 2025, Procore had cash, cash equivalents, and marketable securities totaling $698.8 million, which the company believes will be sufficient to meet its operational needs for at least the next 12 months.

Looking ahead, Procore anticipates continued growth driven by its evolving go-to-market strategy and ongoing investments in technology and customer engagement. However, the company acknowledges potential challenges from macroeconomic factors that could impact customer spending and overall market conditions.