Q4 2025 Procore Technologies Inc Earnings Call

February 12, 2026

Operator: your moderator for today's 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 would like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to your host, Alexandra Geller, Head of IR.

The moderator for today's 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 would like to ask a question, please press star 1 on your telephone keypad. I would not to pass the conference over to your host. Alexander Geller, head of ir.

Alexandra Geller: Good afternoon, and welcome to Procore's 2025 Q4 earnings call. I'm Alexandra Geller, Head of Investor Relations. With me today are Ajei Gopal, President and CEO, and Howard Fu, CFO. Further disclosure of our results can be found in our press release issued today, 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 outlook, 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 risks, uncertainties, and assumptions and are based on management's current expectations and views as of today, February 12, 2026.

Good afternoon, and welcome to procore is 2025 fourth quarter. Earnings call. I'm Alexandra Geller head of investor relations with me today. Our Ajay gopal president, and CEO, and Howard Fu CFO further disclosure of our results can be found in our press release issued today, 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 Outlook platform and products, customer demands operations, and macroeconomic and geopolitical conditions.

Alexandra Geller: Comments made on this call include forward-looking statements regarding, among other things, our financial outlook, 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 risks, uncertainties, and assumptions and are based on management's current expectations and views as of today, February 12, 2026.

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. February 12th 2026.

Procore undertakes, no obligation to update, any forward-looking statements to reflect new information or unanticipated events except as required by law.

Alexandra Geller: 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 Ajei.

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.

Alexandra Geller: 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 Ajei.

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 object.

Thank you, Alex, and welcome, everyone.

I'm excited to join you today to discuss our Q4 and fiscal year 2025 results.

As this is my first earnings call as CEO. I want to start by expressing my strong conviction in proc course future

Ajei Gopal: Thank you, Alex, and welcome everyone. I'm excited to join you today to discuss our Q4 and fiscal year 2025 results. As this is my first earnings call as CEO, I want to start by expressing my strong conviction in Procore's future. During my first few months, I have been spending time with customers and employees and evaluating the business objectively to ensure our strategy is built for long-term value creation and that our operations are scaled for peak efficiency. These initial months have reinforced my belief that Procore possesses the hallmarks of a best-in-class vertical software leader and is building one of the most mission-critical vertical software platforms. As a crucial system of record for the built world, our ability to drive collaboration across all construction stakeholders creates a powerful network effect.

During my first few months, I have been spending time with customers and employees and evaluating the business objectively to ensure our strategy is built for long-term value creation and that our operations of scales for Peak efficiency.

These initial months have reinforced, my belief that procore possesses the Hallmarks of a best-in-class vertical software leader, and is building 1 of the most Mission critical vertical software platforms.

Ajei Gopal: These initial months have reinforced my belief that Procore possesses the hallmarks of a best-in-class vertical software leader and is building one of the most mission-critical vertical software platforms. As a crucial system of record for the built world, our ability to drive collaboration across all construction stakeholders creates a powerful network effect.

As a crucial system of record for the built world.

Our ability to drive collaboration across all construction, stakeholders creates a powerful Network effect.

Furthermore, I believe procore is uniquely positioned to lead in the AI era.

Driving unprecedented efficiency, gains across the entire construction life cycle.

I am confident that the scale of our business.

Ajei Gopal: Furthermore, I believe Procore is uniquely positioned to lead in the AI era, driving unprecedented efficiency gains across the entire construction lifecycle. I am confident that the scale of our business, the capabilities of our products and platform, and the depth of our customer relationships give us a clear path to drive durable growth, meaningfully expand margins, and compound free cash flow per share over the long term. I am incredibly energized by the opportunity to scale this company to its full potential. My evaluation is happening in lockstep with disciplined execution across the company. As our Q4 and fiscal year 2025 results demonstrate, our operational pace continues to improve as we strengthen our position in the market. Let me shift to business performance. Building on four consecutive quarters of strong business momentum, we ended the year with an exceptional Q4 that exceeded the high end of our guidance.

The capabilities of our products and platform and the depth of our customer relationships. Give us a clear path to drive durable growth.

Meaningfully, expand margins, and compound, free cash flow per share over the long term.

I am incredibly energized by the opportunity to scale this company to its full potential.

My evaluation is happening in lock step with discipline execution across the company.

Ajei Gopal: I am incredibly energized by the opportunity to scale this company to its full potential. My evaluation is happening in lockstep with disciplined execution across the company. As our Q4 and fiscal year 2025 results demonstrate, our operational pace continues to improve as we strengthen our position in the market. Let me shift to business performance. Building on four consecutive quarters of strong business momentum, we ended the year with an exceptional Q4 that exceeded the high end of our guidance.

As our Q4 and fiscal year 2025 results demonstrate our operational, pays continues to improve as we strengthen our position in the market.

Let me shift to business performance.

Ajei Gopal: As a crucial system of record for the built world, our ability to drive collaboration across all construction stakeholders creates a powerful network effect. Furthermore, I believe Procore is uniquely positioned to lead in the AI era, driving unprecedented efficiency gains across the entire construction lifecycle. I am confident that the scale of our business, the capabilities of our products and platform, and the depth of our customer relationships give us a clear path to drive durable growth, meaningfully expand margins, and compound free cash flow per share over the long term. I am incredibly energized by the opportunity to scale this company to its full potential. My evaluation is happening in lockstep with disciplined execution across the company. As our Q4 and fiscal year 2025 results demonstrate, our operational pace continues to improve as we strengthen our position in the market. Let me shift to business performance.

Speaker #1: As a crucial system of record for the built world, our ability to drive collaboration across all construction stakeholders creates a powerful network effect. Furthermore, I believe PROCORE is uniquely positioned to lead in the AI era, driving unprecedented efficiency gains across the entire construction lifecycle.

Building on 4 consecutive quarters with strong business momentum. We ended the year with an exceptional Q4 that exceeded the high end of our guidance.

For the full year, we delivered, 15% Revenue growth.

And 14% non-gaap operating margin which represents year-over-year expansion of 400 basis points.

Ajei Gopal: For the full year, we delivered 15% revenue growth and 14% Non-GAAP operating margin, which represents year-over-year expansion of 400 basis points. I am particularly pleased with this result, given the ongoing headwinds from a challenging construction environment, with the US Census reporting negative growth for the combined non-residential and multifamily sectors. Let me take a few minutes to walk you through some of the highlights of our strong quarter. I'd like to start with the largest and most mature part of our business today, US general contractors. I am encouraged by how much opportunity exists within the segment. From new logos to volume expansion and product cross-sell, I believe this cohort of our business remains a cornerstone of our growth. In Q4, we added 3 new ENR 400 logos and expanded our run rate with more than 70 ENR 400 customers.

Speaker #1: I am confident that the scale of our business, the capabilities of our products and platform, and the depth of our customer relationships give us a clear path to drive durable growth, meaningfully expand margins, and compound free cash flow per share over the long term.

I am particularly pleased with this result given the ongoing headwinds from a challenge in construction environments with the US Census, reporting negative growth for the combined non-residential and multi family sectors.

Let me take a few minutes to walk you through some of the highlights of our strong quarter.

Speaker #1: I am incredibly energized by the opportunity to scale this company to its full potential. My evaluation is happening in lockstep with disciplined execution across the company.

I'd like to start with the largest and most mature part of our business today. US general contractors. I am encouraged by how much opportunity exists within the segment.

Ajei Gopal: Let me take a few minutes to walk you through some of the highlights of our strong quarter. I'd like to start with the largest and most mature part of our business today, US general contractors. I am encouraged by how much opportunity exists within the segment. From new logos to volume expansion and product cross-sell, I believe this cohort of our business remains a cornerstone of our growth. In Q4, we added 3 new ENR 400 logos and expanded our run rate with more than 70 ENR 400 customers.

The volume expansion and product cross. Sell, I believe this cohort of our business remains a Cornerstone of our growth,

Speaker #1: As our Q4 and fiscal year 2025 results demonstrate, our operational pace continues to improve as we strengthen our position in the market. Let me shift to business performance.

In Q4 we added 3 new enr 400 logos and expanded. Our run rate with more than 70 enr 400, customers

Speaker #1: Building on four consecutive quarters of strong business momentum, we ended the year with an exceptional Q4 that exceeded the high end of our guidance.

Ajei Gopal: Building on 4 consecutive quarters of strong business momentum, we ended the year with an exceptional Q4 that exceeded the high end of our guidance. For the full year, we delivered 15% revenue growth and 14% non-GAAP operating margin, which represents year-over-year expansion of 400 basis points. I am particularly pleased with this result, given the ongoing headwinds from a challenging construction environment, with the US Census reporting negative growth for the combined non-residential and multifamily sectors. Let me take a few minutes to walk you through some of the highlights of our strong quarter. I'd like to start with the largest and most mature part of our business today, US general contractors. I am encouraged by how much opportunity exists within the segment. From new logos to volume expansion, and product cross-sell, I believe this cohort of our business remains a cornerstone of our growth.

1 of our new enr 400 editions joint. Procore has a largest new logo win of the quarter and displaced an incumbent vendor.

Ajei Gopal: One of our new ENR 400 additions joined Procore as our largest new logo win of the quarter and displaced an incumbent vendor. They partnered with Procore because of our unified enterprise-grade platform and their strong internal demand for our products. They also adopted Procore Pay to automate their manual processes and Procore Resource Management for their growing fleet of capital assets for their self-performed work. With Procore, they expect to achieve a return on their investments in a few key areas: the ability to scale labor efficiently, drive schedule and cost predictability at the portfolio level, and gain new levels of enterprise governance and visibility. We have a track record of displacing incumbent vendors. We believe this is yet another example of the construction industry realizing that Procore is the gold standard. Of course, our US GC opportunity goes well beyond the ENR 400.

Speaker #1: For the full year, we delivered 15% revenue growth and 14% non-gap operating margin, which represents year-over-year expansion of 400 basis points. I am particularly pleased with these results given the ongoing headwinds from a challenging construction environment, with the US Census reporting negative growth for the combined non-residential and multifamily sectors.

They partnered with procore because of our unified Enterprise grade platform and their strong internal demand for our products.

They also adopted Pro Corp, pay to automate their manual processes and Proco resource management for their growing Fleet of capital assets for their self-performed work.

With procore, they expect to achieve a return on their investments in a few key areas.

The ability to scale labor efficiently.

Speaker #1: Let me take a few minutes to walk you through some of the highlights of our strong quarter. I'd like to start with the largest and most mature part of our business today: US general contractors.

Drive schedule and cost predictability and the portfolio level.

Ajei Gopal: With Procore, they expect to achieve a return on their investments in a few key areas: the ability to scale labor efficiently, drive schedule and cost predictability at the portfolio level, and gain new levels of enterprise governance and visibility. We have a track record of displacing incumbent vendors. We believe this is yet another example of the construction industry realizing that Procore is the gold standard. Of course, our US GC opportunity goes well beyond the ENR 400.

and gain new levels of Enterprise governance and visibility

Speaker #1: I am encouraged by how much opportunity exists within the segment. From new logos to volume expansion and product cross-sell, I believe this cohort of our business remains a cornerstone of our growth.

We have a track record of displacing incumbent vendors and we believe this is yet another example of the construction industry, realizing that procore is the gold standard.

Of course, our usgc opportunity goes well beyond the enr 400.

Speaker #1: In Q4, we added three new ENR 400 logos and expanded our run rate with more than 70 ENR 400 customers. One of our new ENR 400 additions joined PROCORE as our largest new logo win of the quarter and displaced an incumbent vendor.

Ajei Gopal: In Q4, we added three new ENR 400 logos and expanded our run rate with more than 70 ENR 400 customers. One of our new ENR 400 additions joined Procore as our largest new logo win of the quarter and displaced an incumbent vendor. They partnered with Procore because of our unified enterprise-grade platform and their strong internal demand for our products. They also adopted Procore Pay to automate their manual processes and Procore Resource Management for their growing fleet of capital assets for their self-performed work. With Procore, they expect to achieve a return on their investments in a few key areas: the ability to scale labor efficiently, drive schedule and cost predictability at the portfolio level, and gain new levels of enterprise governance and visibility.

To illustrate this Market depth, we signed more than 30 100 K plus ARR agreements. This quarter with contractors outside of the enr 400.

Ajei Gopal: To illustrate this market depth, we signed more than 30 100K+ ARR agreements this quarter with contractors outside of the ENR 400. An example of this is with an enterprise general contractor based in Georgia, who returned to Procore as a significant win-back. After leaving Procore in 2024 for a cheaper solution, they returned to us in Q3, and then in Q4, they deepened their partnership with Procore even further. They adopted our platform enterprise-wide and added Procore Pay and Resource Management, resulting in a high six-figure expansion. With Procore, they expect to enhance efficiency, support growth, and anticipate savings of more than 27,000 labor hours per year, the equivalent of adding roughly 13 full-time employees. While we never want to see a customer leave, this win-back reaffirms a simple truth: the value of Procore creates an advantage that price alone cannot match.

An example of this is with an Enterprise general contractor based in Georgia who returned to procore as a significant win back.

Speaker #1: They partnered with PROCORE because of our unified enterprise-grade platform and their strong internal demand for our products. They also adopted PROCORE Pay to automate their manual processes and PROCORE Resource Management for their growing fleet of capital assets for their self-perform work.

after leaving procore in 2024, for a cheaper solution, they returned to us in Q3

and then in Q4 they deepened their partnership with procore even further.

They adopted our platform, Enterprise wide, and added Pro work, pay and Resource Management resulting in a high 6-figure expansion.

Speaker #1: With PROCORE, they expect to achieve a return on their investments in a few key areas: the ability to scale labor efficiently, drive schedule and cost predictability at the portfolio level, and gain new levels of enterprise governance and visibility.

Ajei Gopal: They adopted our platform enterprise-wide and added Procore Pay and Resource Management, resulting in a high six-figure expansion. With Procore, they expect to enhance efficiency, support growth, and anticipate savings of more than 27,000 labor hours per year, the equivalent of adding roughly 13 full-time employees. While we never want to see a customer leave, this win-back reaffirms a simple truth: the value of Procore creates an advantage that price alone cannot match.

with procore, they expect to enhance efficiency, support growth and anticipate Savings of more than 27,000 labor hours per year, the equivalent of adding roughly 13, full-time employees,

Speaker #1: We have a track record of displacing incumbent vendors, and we believe this is yet another example of the construction industry realizing that Procore is the gold standard.

Ajei Gopal: We have a track record of displacing incumbent vendors, and we believe this is yet another example of the construction industry realizing that Procore is the gold standard. Of course, our US GC opportunity goes well beyond the ENR 400. To illustrate this market depth, we signed more than 31 100K+ ARR agreements this quarter with contractors outside of the ENR 400. An example of this is with an enterprise general contractor based in Georgia, who returned to Procore as a significant win back. After leaving Procore in 2024 for a cheaper solution, they returned to us in Q3, and then in Q4, they deepened their partnership with Procore even further. They adopted our platform enterprise-wide and added Procore Pay and Resource Management, resulting in a high six-figure expansion.

While we never want to see a customer, leave this win back reaffirms. A simple truth.

The value of procore creates, an advantage that price alone cannot match.

Speaker #1: Of course, our USGC opportunity goes well beyond the ENR 400. To illustrate this market depth, we signed more than 30 100K-plus ARR agreements this quarter with contractors outside of the ENR 400.

These winds illustrate the clear value on GC customers realized from using procore, our newer products, including pay resource management pre-construction and analytics are compelling value drivers.

Ajei Gopal: These wins illustrate the clear value our GC customers realize from using Procore. Our newer products, including Pay, Resource Management, Pre-construction, and Analytics, are compelling value drivers. We see these products as notable expansion opportunities for our global GC customers to drive incremental growth. Beyond US GCs, we see substantial opportunity with the other stakeholders we serve, specifically owners and subcontractors. With our demonstrated product market fit and our continued product innovation, these stakeholders represent extensive white space globally and will serve as significant growth levers for Procore. In the interest of time, let me focus on owners, the most diverse group of customers spanning industries such as technology, energy, utilities, education, healthcare, and real estate. Our owners business continues to scale, with Q4 marking another quarter of consistent growth in the segment.

Speaker #1: An example of this is with an enterprise general contractor based in Georgia, who returned to PROCORE as a significant win-back. After leaving PROCORE in 2024 for a cheaper solution, they returned to us in Q3.

We see these products as notable expansion opportunities for our Global GC customers to drive incremental growth.

Beyond us, GCS, we see substantial opportunity with the other stakeholders, we serve specifically owners and subcontractors.

Speaker #1: And then in Q4, they deepened their partnership with PROCORE even further. They adopted our platform enterprise-wide and added PROCORE Pay and Resource Management, resulting in a high six-figure expansion.

With our demonstrated product Market fit. And our continued product Innovation, these stakeholders represent extensive white space globally and will serve as significant growth levels for procore.

Ajei Gopal: With our demonstrated product market fit and our continued product innovation, these stakeholders represent extensive white space globally and will serve as significant growth levers for Procore. In the interest of time, let me focus on owners, the most diverse group of customers spanning industries such as technology, energy, utilities, education, healthcare, and real estate. Our owners business continues to scale, with Q4 marking another quarter of consistent growth in the segment.

Speaker #1: With PROCORE, they expect to enhance efficiency, support growth, and anticipate savings of more than 27,000 labor hours per year. The equivalent of adding roughly 13 full-time employees.

Ajei Gopal: With Procore, they expect to enhance efficiency, support growth, and anticipate savings of more than 27,000 labor hours per year, the equivalent of adding roughly 13 full-time employees. While we never want to see a customer leave, this win back reaffirms a simple truth: the value of Procore creates an advantage that price alone cannot match. These wins illustrate the clear value our GC customers realize from using Procore. Our newer products, including Pay, Resource Management, Preconstruction, and Analytics, are compelling value drivers. We see these products as notable expansion opportunities for our global GC customers to drive incremental growth. Beyond US GCs, we see substantial opportunity with the other stakeholders we serve, specifically owners and subcontractors. With our demonstrated product market fit and our continued product innovation, these stakeholders represent extensive white space globally and will serve as significant growth levers for Procore.

In the interest of time, let me focus on owners the most diverse group of customers spanning Industries such as Technology Energy, utilities education Healthcare and real estate.

Our owner's business continues to scale with Q4 marking. Another quarter of consistent growth in the segment.

Speaker #1: While we never want to see a customer leave, this win-back reaffirms a simple truth: the value of PROCORE creates an advantage that price alone cannot match.

To meet their evolving needs. We're planning to launch a suite of specialized products later this year.

Including portfolio management planning funding and asset management.

Speaker #1: These wins illustrate the clear value our GC customers realize from using PROCORE. Our newer products, including Pay, Resource Management, Pre-construction, and Analytics, are compelling value drivers.

Ajei Gopal: To meet their evolving needs, we're planning to launch a suite of specialized products later this year, including portfolio management, planning, funding, and asset management. This empowers owners to more effectively manage their project portfolios, mitigate risks, and optimize costs. I'm also proud to report that Procore for Government achieved FedRAMP moderate authorization this quarter and is now available in the FedRAMP marketplace. This milestone validates our commitment to some of the most stringent data security standards in software, which will unlock further opportunities with US federal and state government customers. A primary example of the growing demand for these solutions is in data centers, where AI infrastructure is driving unprecedented investment. Procore is the clear leader for data center construction. While data centers currently represent a modest 2% of total US construction activity, the growth trajectory, fueled by the global demand for AI, is compelling.

This empowers owners to more effectively manage their project portfolios, mitigate risks, and optimize costs.

Speaker #1: We see these products as notable expansion opportunities for our global incremental growth. Beyond USGCs, we see substantial opportunity with the other stakeholders we serve, specifically owners and subcontractors.

I'm also proud to report that procore for government achieved. Fedramp moderate authorization, this quarter and is now available in the fedramp marketplace.

This Milestone validates, our commitment to some of the most stringent data, security, standards, and software, which will unlock further opportunities with us, federal and state government customers.

Speaker #1: With our demonstrated product-market fit, and our continued product innovation, these stakeholders represent extensive whitespace globally and will serve as significant growth levers for PROCORE.

Ajei Gopal: This milestone validates our commitment to some of the most stringent data security standards in software, which will unlock further opportunities with US federal and state government customers. A primary example of the growing demand for these solutions is in data centers, where AI infrastructure is driving unprecedented investment. Procore is the clear leader for data center construction. While data centers currently represent a modest 2% of total US construction activity, the growth trajectory, fueled by the global demand for AI, is compelling.

A primary example of the growing demand for these Solutions is in data centers where AI infrastructure is driving unprecedented investment.

Procore is the clear leader for data center Construction.

Speaker #1: In the interest of time, let me focus on owners. The most diverse group of customers spanning industries such as technology, energy, utilities, education, healthcare, and real estate.

Ajei Gopal: In the interest of time, let me focus on owners, the most diverse group of customers spanning industries such as technology, energy, utilities, education, healthcare, and real estate. Our owners business continues to scale, with Q4 marking another quarter of consistent growth in this segment. To meet their evolving needs, we're planning to launch a suite of specialized products later this year, including portfolio management, planning, funding, and asset management. This empowers owners to more effectively manage their project portfolios, mitigate risks, and optimize costs. I'm also proud to report that Procore for Government achieved FedRAMP moderate authorization this quarter and is now available in the FedRAMP marketplace. This milestone validates our commitment to some of the most stringent data security standards in software, which will unlock further opportunities with US federal and state government customers.

While data centers currently represent a modest 2% of total us construction activity. The growth trajectory fueled by the global demand for AI is compelling.

Speaker #1: Our owners' business continues to scale. With Q4 marking another quarter of consistent growth in the segment, to meet their evolving needs, we're planning to launch a suite of specialized products later this year including portfolio management, planning, funding, and asset management.

Procore is ideally positioned to capture these Tailwinds. As this sector becomes the more substantial component of total construction spent

Ajei Gopal: Procore is ideally positioned to capture these tailwinds as this sector becomes a more substantial component of total construction spend. For example, our largest international Q4 deal, at seven figures annually, was a big up-and-coming hyperscaler in the UK data center market. This customer selected Procore in Q4 to establish a single source of truth and ensure consistency across their global projects. And within weeks, they expanded construction volume to meet accelerated data center deadlines. Moving beyond data centers, we also added new owner customers, including the Central Ohio Transit Authority and one of Canada's largest real estate developers. We also expanded with existing owner customers, such as a globally recognized online retailer and a leading semiconductor manufacturer. I would now like to move to a discussion of strategy. There are rare moments in history when a technological shift accelerates industry-wide adoption.

Speaker #1: This empowers owners to more effectively manage their project portfolios, mitigate risks, and optimize costs. I'm also proud to report that PROCORE for Government achieved FedRAMP Moderate Authorization this quarter and is now available in the FedRAMP marketplace.

This customer selected procore in Q4 to establish a single source of Truth and ensure consistency across the global projects.

And within weeks, they expanded construction volume to meet accelerated data center deadlines.

Speaker #1: This milestone validates our commitment to some of the most stringent data security standards in software which will unlock further opportunities with US federal and state government customers.

Moving beyond data centers. We also added new auto customers, including the central, Ohio transit, authority and 1 of Canada's largest real estate Developers.

Ajei Gopal: A primary example of the growing demand for these solutions is in data centers, where AI infrastructure is driving unprecedented investment. Procore is the clear leader for data center construction. While data centers currently represent a modest 2% of total US construction activity, the growth trajectory, fueled by the global demand for AI, is compelling. Procore is ideally positioned to capture these tailwinds as this sector becomes a more substantial component of total construction spend. For example, our largest international Q4 deal, at seven figures annually, was a big, up-and-coming hyperscaler in the UK data center market. This customer selected Procore in Q4 to establish a single source of truth and ensure consistency across their global projects. Within weeks, they expanded construction volume to meet accelerated data center deadlines.

Speaker #1: A primary example of the growing demand for these solutions is in data centers, where AI infrastructure is driving unprecedented investment. PROCORE is the clear leader for data center construction.

We also expanded with existing owner customers, such as a globally, recognized online retailer, and a leading semiconductor manufacturer.

I would now like to move to a discussion of strategy.

There are rare moments in history when a technological shift accelerates industry-wide adoption.

Speaker #1: While data centers currently represent a modest 2% of total US construction activity, the growth trajectory fueled by the global demand for AI is compelling.

At procore, we last saw this with the ubiquity of broadband and the rise of mobile devices.

Speaker #1: PROCORE is ideally positioned to capture these tailwinds as this sector becomes a more substantial component of total construction spend. For example, our largest international Q4 deal at seven figures annually was a big up-and-coming hyperscaler in the UK data center market.

Ajei Gopal: At Procore, we last saw this with the ubiquity of broadband and the rise of mobile devices. This was a major catalyst for our business, as Procore was initially built to bring efficiency and collaboration to the job site, unlocking value for the people with mud on their boots. We believe AI stands to be an even more meaningful catalyst than any that we've seen before. Procore's category leadership position did not arrive overnight. We started as a system of record for the built world, and we have evolved into a system of collaboration as we hit scale across the globe. Over time, we earned the right to turn trusted dynamic data into action. Today, Procore is a digital window into the built world. We are where physical assets and activities are digitized and where actions are taken to change the physical world.

This was a major Catalyst for our business as procore was initially built to bring efficiency and collaboration to the job site. Unlocking value for the people with mud on their boots.

We Believe AI stands to be an even more meaningful Catalyst than any of that we've seen before.

Pro 4 category leadership position.

Did not arrive overnight.

Speaker #1: This customer selected PROCORE in Q4 to establish a single source of truth and ensure consistency across their global projects. And within weeks, they expanded construction volume to meet accelerated data center deadlines.

We started as a system of records for the built world and we have evolved into a system of collaboration as we hit scale across the globe.

Ajei Gopal: Procore's category leadership position did not arrive overnight. We started as a system of record for the built world, and we have evolved into a system of collaboration as we hit scale across the globe. Over time, we earned the right to turn trusted dynamic data into action. Today, Procore is a digital window into the built world. We are where physical assets and activities are digitized and where actions are taken to change the physical world.

Over time, we earned the rights to turn. Trusted Dynamic data into action.

Speaker #1: Moving beyond data centers, we also added new owner customers, including the Central Ohio Transit Authority and one of Canada's largest real estate developers. We also expanded with existing owner customers such as a globally recognized online retailer and a leading semiconductor manufacturer.

Ajei Gopal: Moving beyond data centers, we also added new owner customers, including the Central Ohio Transit Authority and one of Canada's largest real estate developers. We also expanded with existing owner customers, such as a globally recognized online retailer and a leading semiconductor manufacturer. I would now like to move to a discussion of strategy. There are rare moments in history when a technological shift accelerates industry-wide adoption. At Procore, we last saw this with the ubiquity of broadband and the rise of mobile devices. This was a major catalyst for our business, as Procore was initially built to bring efficiency and collaboration to the job site, unlocking value for the people with mud on their boots. We believe AI stands to be an even more meaningful catalyst than any that we've seen before. Procore's category leadership position did not arrive overnight.

Today, procore is a digital window into the build world.

We are where physical assets and activities are digitized and where actions are taken to change the physical world.

This journey is what makes a move into a genetic, AI feel inevitable, rather than opportunistic.

Speaker #1: I would now like to move to a discussion of strategy. There are rare moments in history when a technological shift accelerates industry-wide adoption. At PROCORE, we last saw this with the ubiquity of broadband and the rise of mobile devices.

And our recent f****** acquisition of data grid. Leverages this leadership position to accelerate our AI strategy.

Ajei Gopal: This journey is what makes our move into Agentic AI feel inevitable rather than opportunistic. Our recent second acquisition of Datagrid leverages this leadership position to accelerate our AI strategy. We believe that the combination of Procore Helix and Datagrid will generate notable product synergies due to our highly complementary capabilities and roadmaps, bringing premier advanced reasoning and broad third-party integration capabilities into Procore. We call this combined offering Procore AI. To demonstrate the potential of Procore AI, I'd like to share a recent example from a superintendent at a joint Procore and Datagrid Enterprise GC customer, that showcases our most recent advanced reasoning capabilities. Like most superintendents, their day consists of walking the job site and taking videos to share with off-site stakeholders. On this particular walk, they noticed a potential issue with a structural column.

We believe that the combination of proof or Helix and data grid, will generate notable product synergies, due to our highly complimentary capabilities and road maps.

Speaker #1: This was a major catalyst for our business, as PROCORE was initially built to bring efficiency and collaboration to the job site, unlocking value for the people with mud on their boots.

Bringing Premier Advanced reasoning and Broad third-party integration capabilities into Pro for

We call this combined offering procore AI.

Speaker #1: We believe AI stands to be an even more meaningful catalyst than any that we've seen before. PROCORE's category leadership position did not arrive overnight.

Ajei Gopal: We call this combined offering Procore AI. To demonstrate the potential of Procore AI, I'd like to share a recent example from a superintendent at a joint Procore and Datagrid Enterprise GC customer, that showcases our most recent advanced reasoning capabilities. Like most superintendents, their day consists of walking the job site and taking videos to share with off-site stakeholders. On this particular walk, they noticed a potential issue with a structural column.

To demonstrate the potential of procore AI. I'd like to share a recent example from a superintendent at a joint procore and data grid, Enterprise GC customer that showcases our most recent Advanced reasoning capabilities

Speaker #1: We started as a system of record for the built world, and we have evolved into a system of collaboration as we hit scale across the globe.

Ajei Gopal: We started as a system of record for the built world, and we have evolved into a system of collaboration as we hit scale across the globe. Over time, we earned the right to turn trusted dynamic data into action. Today, Procore is a digital window into the built world. We are where physical assets and activities are digitized and where actions are taken to change the physical world. This journey is what makes our move into Agentic AI feel inevitable rather than opportunistic. Our recent tuck-in acquisition of Datagrid leverages this leadership position to accelerate our AI strategy. We believe that the combination of Procore Helix and Datagrid will generate notable product synergies due to our highly complementary capabilities and roadmaps, bringing premier advanced reasoning and broad third-party integration capabilities into Procore. We call this combined offering Procore AI.

Like most superintendents that they consist of walking the job site and taking videos to share with off-site stakeholders.

Speaker #1: Over time, we earned the rights to turn trusted, dynamic data into action. Today, Procore is a digital window into the built world. We are where physical assets and activities are digitized, and where actions are taken to change the physical world.

On this particular walk they noticed a potential issue with the structural column. They took a video and sent the footage to our AI agents with a simple prompt. Identify the issues here.

Speaker #1: This journey is what makes our move into agentic AI feel inevitable rather than opportunistic. And our recent tuck-in acquisition of Datagrid leverages this leadership position to accelerate our AI strategy.

Using Advanced reasoning. Our agents didn't just watch the video it understood it.

Ajei Gopal: They took a video and sent the footage to our AI agent with a simple prompt: "Identify the issues here." Using advanced reasoning, our agent didn't just watch the video, it understood it. By simultaneously analyzing the audio and video cues, the agent identified the exact column and utilized reasoning to know where to go in Procore to pull the drawings, specifications, and documents related to that column. The agent concluded that the column had been incorrectly coded, determined the required rework, automatically created the work order, and notified the relevant stakeholders. The agent also triggered related downstream workflows in Procore, halting further work on that area and scheduling the rework. Historically, these tasks would have demanded several hours of manual effort and individual expertise to navigate across project specifications. This is not just a hypothetical possibility.

Speaker #1: We believe that the combination of PROCORE Helix and Datagrid will generate notable product synergies due to our highly complementary capabilities and roadmaps, bringing premier advanced reasoning and broad third-party integration capabilities into PROCORE.

By simultaneously analyzing the audio and video cues, the agents, identified, the exact columns and utilize reasoning to know where to go in procore, to pull the drawings specifications and documents related to that column.

The agent concluded that the column had been incorrectly coded.

Determine the required rework.

Automatically created the work order and notify the relevant stakeholders.

Speaker #1: We call this combined offering PROCORE AI. To demonstrate the potential of PROCORE AI, I'd like to share a recent example from a superintendent at a joint PROCORE and Datagrid enterprise GC customer that showcases our most recent advanced reasoning capabilities.

Ajei Gopal: To demonstrate the potential of Procore AI, I'd like to share a recent example from a superintendent at a joint Procore and Datagrid enterprise GC customer that showcases our most recent advanced reasoning capabilities. Like most superintendents, their day consists of walking the job site and taking videos to share with off-site stakeholders. On this particular walk, they noticed a potential issue with a structural column. They took a video and sent the footage to our AI agent with a simple prompt: "Identify the issues here." Using advanced reasoning, our agent didn't just watch the video, it understood it. By simultaneously analyzing the audio and video cues, the agent identified the exact column and utilized reasoning to know where to go in Procore to pull the drawings, specifications, and documents related to that column.

The agent also, triggered related Downstream, workflows, and procore halting further. Work on that area and scheduling the rework.

Historically. These tasks would have demanded several hours of manual effort and individual expertise to navigate across project specifications.

Speaker #1: Like most superintendents, their day consists of walking the job site and taking videos to share with off-site stakeholders. On this particular walk, they noticed a potential issue with the structural column.

This is not just a hypothetical possibility.

This is a real world example, of procore AI turning a standard job site, walkthrough into an autonomous resolution.

Speaker #1: They took a video and sent the footage to our AI agent with a simple prompt, identify the issues here. Using advanced reasoning, our agent didn't just watch the video.

This illustrates the true power of procore AIS, Construction aware multimodal reasons.

Ajei Gopal: This is a real-world example of Procore AI turning a standard job site walkthrough into an autonomous resolution. This illustrates the true power of Procore AI's construction-aware multimodal reasoning. This scenario occurs thousands of times across the job site. This is true special-purpose AI, built for construction. It has the domain expertise to understand the context, the access to search records, and the authority to trigger actions, and it was built for project teams out in the field, delivered through the tool they use every day. This seamless integration of intelligence and utility is a direct result of 4 foundational points that will enable us to lead in the AI era. First, as construction's mission-critical system of record, with nearly 3 million active users, Procore has a massive proprietary dynamic data set, and the value is not only in the volume of data, it's in the depth of its context.

This scenario occurs thousands of times across the job site.

Speaker #1: It understood it. By simultaneously analyzing the audio and video cues, the agent identified the exact column and utilized reasoning to know where to go in Procore to pull the drawings, specifications, and documents related to that column.

This is true special purpose. AI built for construction.

It has a domain expertise to understand the context.

The access to search records and the authority to trigger actions.

Speaker #1: The agent concluded that the column had been incorrectly coated, determined the required rework, automatically created the work order, and notified the relevant stakeholders. The agent also triggered related downstream workflows in Procore, halting further work on that area and scheduling the rework.

Ajei Gopal: The agent concluded that the column had been incorrectly coded, determined the required rework, automatically created the work order, and notified the relevant stakeholders. The agent also triggered related downstream workflows in Procore, halting further work on that area and scheduling the rework. Historically, these tasks would have demanded several hours of manual effort and individual expertise to navigate across project specifications. This is not just a hypothetical possibility. This is a real-world example of Procore AI turning a standard job site walkthrough into an autonomous resolution. This illustrates the true power of Procore AI's construction-aware multimodal reasoning. This scenario occurs thousands of times across a job site. This is true special-purpose AI, built for construction. It has the domain expertise to understand the context, the access to search records, and the authority to trigger actions.

And it was built for project teams out in the field. Delivered through the tool they use every day.

This seamless integration of intelligence and utility is a direct result of 4 foundational points that will enable us to lead in the AI era.

First as constructions, Mission critical system of record.

Ajei Gopal: This seamless integration of intelligence and utility is a direct result of 4 foundational points that will enable us to lead in the AI era. First, as construction's mission-critical system of record, with nearly 3 million active users, Procore has a massive proprietary dynamic data set, and the value is not only in the volume of data, it's in the depth of its context.

With nearly 3 million active users.

Speaker #1: Historically, these tasks would have demanded several hours of manual effort, and individual expertise to navigate across project specifications. This is not just a hypothetical possibility.

And the value is not only in the volume of data, it's in the depth of its context.

Speaker #1: This is a real-world example of PROCORE AI turning a standard job site walkthrough into an autonomous resolution. This illustrates the true power of PROCORE AI's construction-aware multimodal reasoning.

We map the complex Dynamic interactions between people workflows and the physical job site.

Ajei Gopal: We map the complex, dynamic interactions between people, workflows, and the physical job site, capturing and continuously updating every document, annotation, and day-to-day change. This dynamic relevance is exactly what's needed to power high-stakes agentic AI. My second point is trust, a fundamental prerequisite for AI adoption. It's crucial that construction stakeholders trust how the technology provider will use their data, and that's why we've built a scalable, enterprise-grade infrastructure to ensure that every AI action is secure, compliant, and contextually relevant. It's only through this combination of contextual data and trust that a platform can provide the industry with needed productivity gains. The third point is our network effect. For AI to automate and complete tasks, it must work where the users work. On a typical project, a customer often connects with dozens of different companies, all collaborating on the platform every day to get their jobs done.

Speaker #1: This scenario occurs thousands of times across the job site. This is true special purpose AI. Built for construction. It has a domain expertise to understand the context, the access to search records, and the authority to trigger actions.

Capturing and continuously updating every document annotation and day-to-day change. This Dynamic relevance is exactly what's needed to power, high stakes, agentic AI.

Speaker #1: And it was built for project teams out in the field, delivered through the tool they use every day. This seamless integration of intelligence and utility is a direct result of four foundational points that will enable us to lead in the AI era.

Ajei Gopal: And it was built for project teams out in the field, delivered through the tool they use every day. This seamless integration of intelligence and utility is a direct result of four foundational points that will enable us to lead in the AI era. First, as construction's mission-critical system of record with nearly 3 million active users, Procore has a massive proprietary dynamic data set, and the value is not only in the volume of data, it's in the depth of its context. We map the complex, dynamic interactions between people, workflows, and the physical job site, capturing and continuously updating every document annotation, and day-to-day change. This dynamic relevance is exactly what's needed to power high-stakes Agentic AI. My second point is trust, a fundamental prerequisite for AI adoption.

My second point is trust a fundamental prerequisite for AI adoption, it's crucial that construction stakeholders trust how the technology provider will use their data and that's why we built a scalable enterprise-grade infrastructure to ensure that every AI action is secure compliance and contextually relevant. It's only through this combination of contextual data and trust that a platform can provide the industry when needed productivity gains.

Speaker #1: First, as construction's mission-critical system of record, with nearly 3 million active users, PROCORE has a massive proprietary dynamic data set. And the value is not only in the volume of data, it's in the depth of its context.

Ajei Gopal: It's only through this combination of contextual data and trust that a platform can provide the industry with needed productivity gains. The third point is our network effect. For AI to automate and complete tasks, it must work where the users work. On a typical project, a customer often connects with dozens of different companies, all collaborating on the platform every day to get their jobs done.

The third point is our Network effect for AI to automate and complete tasks. It must work where the users work.

On a typical project a customer often connects with dozens of different companies, all collaborating on the platform every day to get their jobs done.

Speaker #1: We map the complex, dynamic interactions between people, workflows, and the physical job site, capturing and continuously updating every document, annotation, and day-to-day change. This dynamic relevance is exactly what's needed to power high-stakes agentic AI.

Pro Force serves as a central Hub where everyone in construction, comes to connect and collaborate.

Making the platform, not just the system of record, but a true system of collaboration.

Ajei Gopal: Procore serves as the central hub where everyone in construction comes to connect and collaborate, making the platform not just a system of record, but a true system of collaboration, accelerating the flywheel of our network effect. The fourth point is Procore's Agentic solutions perform critical actions, not just provide insights. As the critical orchestration layer for every stakeholder in construction, we believe our platform is capable of delivering a true digital coworker to help construction workers get more done with less. This is paramount for an industry facing chronic labor shortages of nearly 350,000 workers in the US alone, according to Associated Builders and Contractors. Today, Procore delivers Agentic AI directly to the crews in the field, as well as to the teams in the office, embedding intelligence directly into their natural workflow.

Accelerating the flywheel of our Network effect.

The fourth point is procourt. Agentic Solutions perform critical actions. Not just provide insights.

Speaker #1: My second point is trust. A fundamental prerequisite for AI adoption. It's crucial that construction stakeholders trust how the technology provider will use their data.

Ajei Gopal: It's crucial that construction stakeholders trust how the technology provider will use their data, and that's why we've built a scalable, enterprise-grade infrastructure to ensure that every AI action is secure, compliant, and contextually relevant. It's only through this combination of contextual data and trust that a platform can provide the industry with needed productivity gains. The third point is our network effect. For AI to automate and complete tasks, it must work where the users work. On a typical project, a customer often connects with dozens of different companies, all collaborating on the platform every day to get their jobs done. Procore serves as the central hub where everyone in construction comes to connect and collaborate, making the platform not just a system of record, but a true system of collaboration, accelerating the flywheel of our network effect.

As the critical orchestration layer for every stakeholder in construction. We believe our platform is capable of, delivering a true digital co-worker to help construction workers. Get more done with less.

Speaker #1: And that's why we've built a scalable enterprise-grade infrastructure to ensure that every AI action is secure, compliant, and contextually relevant. It's only through this combination of contextual data and trust that a platform can provide the industry with needed productivity gains.

This is Paramount for an industry facing chronic labor, shortages of nearly 350,000 workers in the us alone according to Associated, builders and contractors.

Ajei Gopal: This is paramount for an industry facing chronic labor shortages of nearly 350,000 workers in the US alone, according to Associated Builders and Contractors. Today, Procore delivers Agentic AI directly to the crews in the field, as well as to the teams in the office, embedding intelligence directly into their natural workflow.

Speaker #1: The third point is our network effect. For AI to automate and complete tasks, it must work where the users work. On a typical project, a customer often connects with dozens of different companies all collaborating on the platform every day to get their jobs done.

Today, procore delivers, agentic. AI directly to the crews in the field as well as to the teams in the office. Embedding intelligence directly into their natural workflow.

By supporting each of our nearly 3 million active users with digital co-workers. We can provide a scalable solution to the industry's labor shortage

Ajei Gopal: By supporting each of our nearly 3 million active users with digital coworkers, we can provide a scalable solution to the industry's labor shortage. Long-time Procore customer, Haskell, is already benefiting from digital coworkers. By deploying Procore AI on a single project, their initial ROI was immediate, saving superintendents hours per day on mundane tasks. Within just six months, they went from zero AI usage to expanding to several projects with the intent to deploy across their portfolio. Their productivity gains were so impactful that Haskell is now looking to empower everyone on their construction teams with digital coworkers from Procore. One way to conceptualize the value of these productivity gains can be seen in comparison to the cost of labor, which is significant within construction. For every dollar of construction volume, a contractor spends a material portion on labor.

Speaker #1: Procore serves as the central hub where everyone in construction comes to connect and collaborate, making the platform not just a system of record, but a true system of collaboration—accelerating the flywheel of our network effect.

Long time. Procore customers have built is already benefiting from digital co-workers by deploying procore AI on a single project. Their initial Roi was immediate saving superintendents hours per day on mundane tasks.

Speaker #1: The fourth point is PROCORE's agentic solutions perform critical actions, not just provide insights. As the critical orchestration layer for every stakeholder in construction, we believe our platform is capable of delivering a true digital coworker to help construction workers get more done with less.

Ajei Gopal: The fourth point is, Procore Agentic solutions perform critical actions, not just provide insights. As the critical orchestration layer for every stakeholder in construction, we believe our platform is capable of delivering a true digital coworker to help construction workers get more done with less. This is paramount for an industry facing chronic labor shortages of nearly 350,000 workers in the US alone, according to Associated Builders and Contractors. Today, Procore delivers Agentic AI directly to the crews in the field, as well as to the teams in the office, embedding intelligence directly into their natural workflow. By supporting each of our nearly 3 million active users with digital coworkers, we can provide a scalable solution to the industry's labor shortage. Long-time Procore customer, Haskell, is already benefiting from digital coworkers.

Ajei Gopal: Within just six months, they went from zero AI usage to expanding to several projects with the intent to deploy across their portfolio. Their productivity gains were so impactful that Haskell is now looking to empower everyone on their construction teams with digital coworkers from Procore. One way to conceptualize the value of these productivity gains can be seen in comparison to the cost of labor, which is significant within construction. For every dollar of construction volume, a contractor spends a material portion on labor.

Within just 6 months, they went from zero AI usage to expanding to several projects with the intent to deploy across their portfolio, their productivity gains were still impactful. That has still is now looking to empower everyone on their construction teams with digital co-workers from proport

Speaker #1: This is paramount for an industry facing chronic labor shortages of nearly 350,000 workers in the US alone, according to Associated Builders and Contractors. Today, PROCORE delivers agentic AI directly to the crews in the field, as well as to the teams in the office.

1 way to conceptualize the value of these productivity gains can be seen, in comparison to the cost of Labor, which is significant within Construction.

For every dollar of construction volume a contractor spends, a material portion on labor.

With digital co-workers from procore, We Believe customers will materially increase their output without corresponding labor growth leading to meaningful savings.

Speaker #1: Embedding intelligence directly into their natural workflow. By supporting each of our nearly 3 million active users with digital coworkers, we can provide a scalable solution to the industry's labor shortage.

Ajei Gopal: With digital coworkers from Procore, we believe customers will materially increase their output without corresponding labor growth, leading to meaningful savings... capturing just a small fraction of that ROI represents an incremental market opportunity for Procore, expanding beyond our traditional solutions. The economic value of our traditional solutions is supported by our construction volume-based pricing model. Because we price on project scale rather than seat count, our traditional revenue remains insulated from headcount fluctuations as AI drives industry efficiency. There is a profound sense of magic when software stops being a tool you manage and starts becoming an expert that manages the project for you, anticipating hurdles and clearing them in the background. The benefits of Procore AI extend far beyond efficiency gains. By reclaiming thousands of labor hours, we are freeing up valuable resources for our customers to deploy on more projects.

Capturing just a small fraction of that Roi represents an incremental Market opportunity for procore expanding beyond our traditional Solutions.

Speaker #1: One-time PROCORE customer Haskell is already benefiting from digital coworkers. By deploying PROCORE AI on a single project, their initial ROI was immediate, saving superintendents hours per day on mundane tasks.

Ajei Gopal: By deploying Procore AI on a single project, their initial ROI was immediate, saving superintendents hours per day on mundane tasks. Within just 6 months, they went from 0 AI usage to expanding to several projects with the intent to deploy across their portfolio. Their productivity gains were so impactful that Haskell is now looking to empower everyone on their construction teams with digital coworkers from Procore. One way to conceptualize the value of these productivity gains can be seen in comparison to the cost of labor, which is significant within construction. For every $1 of construction volume, a contractor spends a material portion on labor. With digital coworkers from Procore, we believe customers will materially increase their output without corresponding labor growth, leading to meaningful savings. Capturing just a small fraction of that ROI represents an incremental market opportunity for Procore, expanding beyond our traditional solutions.

the economic value of our traditional Solutions is supported by our construction volume based pricing model because we price on Project scale, rather than seek count, our traditional Revenue remains insulated from pet count fluctuations, as AI drives industry efficiency,

Speaker #1: Within just six months, they went from zero AI usage to expanding to several projects with the intent to deploy across their portfolio. Their productivity gains were so impactful that Haskell is now looking to empower everyone on their construction teams with digital coworkers from PROCORE.

There is a profound sense of magic when software stops being a tool, you manage and start becoming an expert that manages the project for you and anticipating hurdles and clearing them in the background.

Ajei Gopal: There is a profound sense of magic when software stops being a tool you manage and starts becoming an expert that manages the project for you, anticipating hurdles and clearing them in the background. The benefits of Procore AI extend far beyond efficiency gains. By reclaiming thousands of labor hours, we are freeing up valuable resources for our customers to deploy on more projects.

Speaker #1: One way to conceptualize the value of these productivity gains can be seen in comparison to the cost of labor, which is significant within construction.

The benefits of procore AI extends, far beyond efficiency gains by reclaiming, thousands of labor hours. We are freeing up valuable resources for our customers to deploy on more projects.

Speaker #1: For every dollar of construction volume, a contractor spends a material portion on labor. With digital coworkers from Procore, we believe customers will materially increase their output without corresponding labor growth, leading to meaningful savings.

Go horse, path. Forward is defined by a powerful economic duality of upside opportunity and downside protection.

Ajei Gopal: Procore's path forward is defined by a powerful economic duality of upside opportunity and downside protection. We will monetize the value and ROI of Procore AI agents, even as our volume-based model provides a structural economic foundation for our core business. I believe Procore will unlock unprecedented value as a definitive winner in the Agentic AI era. In summary, Q4 was another excellent quarter and closed out a strong year for Procore. My first quarter as CEO exceeded my expectations, and while there is a lot of work ahead, I am incredibly excited about the future of Procore. Procore is a rare company. We have scaled past $1 billion in revenue, defined an entire category, delivered a best-in-class platform, and established a deeply loyal customer base. What Procore has built is truly impressive, and this is just the beginning.

We will modify the value and Roi of procore AI agents even as our volume based model provides a structural economic foundation for our Core Business.

Speaker #1: Capturing, just a small fraction of that ROI represents an incremental market opportunity for PROCORE, expanding beyond our traditional solutions. The economic value of our traditional solutions is supported by our construction volume-based pricing model.

I believe Proco will unlock unprecedented value as a definitive winner in the agentic, AI era.

Ajei Gopal: The economic value of our traditional solutions is supported by our construction volume-based pricing model. Because we price on project scale rather than seat count, our traditional revenue remains insulated from headcount fluctuations as AI drives industry efficiency. There is a profound sense of magic when software stops being a tool you manage and starts becoming an expert that manages the project for you, anticipating hurdles and clearing them in the background. The benefits of Procore AI extend far beyond efficiency gains. By reclaiming thousands of labor hours, we are freeing up valuable resources for our customers to deploy on more projects. Procore's path forward is defined by a powerful economic duality of upside opportunity and downside protection. We will monetize the value and ROI of Procore AI agents, even as our volume-based model provides a structural economic foundation for our core business.

Speaker #1: Because we price on project scale rather than seat count, our traditional revenue remains insulated from headcount fluctuations as AI drives industry efficiency. There is a profound sense of magic when software stops being a tool you manage and starts becoming an expert that manages the project for you.

Ajei Gopal: In summary, Q4 was another excellent quarter and closed out a strong year for Procore. My first quarter as CEO exceeded my expectations, and while there is a lot of work ahead, I am incredibly excited about the future of Procore. Procore is a rare company. We have scaled past $1 billion in revenue, defined an entire category, delivered a best-in-class platform, and established a deeply loyal customer base. What Procore has built is truly impressive, and this is just the beginning.

In summary Q4 was another excellent quarter and closed out a strong year for procore. My first quarter is CEO exceeded my expectations. And while there is a lot of work ahead, I am incredibly excited about the future of procore.

Procore is a rare company.

We have scaled fast, 1 billion dollars. In Revenue defined an entire category, delivered, a best-in-class platform and established a deeply loyal customer base.

Speaker #1: Anticipating hurdles and clearing them in the background. The benefits of PROCORE AI extend far beyond efficiency gains. By reclaiming thousands of labor hours, we are freeing up valuable resources for our customers to deploy on more projects.

What profile has built is truly impressive.

And this is just the beginning.

I joined because I believe our brightest days are ahead of us. We are well, positioned for durable growth and margin expansion.

Speaker #1: PROCORE's path forward is defined by a powerful economic duality of upside opportunity and downside protection. We will monetize the value and ROI of PROCORE AI agents even as our volume-based model provides a structural economic foundation for our core business.

Ajei Gopal: I joined because I believe our brightest days are ahead of us. We are well positioned for durable growth and margin expansion. As we continue to innovate for our customers and execute towards our goals, I am confident in our ability to deliver substantial shareholder value. Before I turn the call over to Howard, I want to thank all of the Procore employees. None of the opportunities Procore has would be possible without the incredible culture you've built over the years. Thank you for making me feel welcomed, and thank you for your commitment to our customers and to our company. Howard?

As we continue to innovate for our customers and execute towards our goals. I am confident in our ability to deliver substantial shareholder value.

Before I turn the call over to Howard. I want to thank all of the pro Court employees. None of the opportunities procore has would be possible without the incredible culture you have built over the years.

Speaker #1: I believe PROCORE will unlock unprecedented value as a definitive winner in the agentic AI era. In summary, Q4 was another excellent quarter and closed at a strong year for PROCORE.

Ajei Gopal: I believe Procore will unlock unprecedented value as a definitive winner in the Agentic AI era. In summary, Q4 was another excellent quarter and closed out a strong year for Procore. My first quarter as CEO exceeded my expectations, and while there is a lot of work ahead, I am incredibly excited about the future of Procore. Procore is a rare company. We have scaled past $1 billion in revenue, defined an entire category, delivered a best-in-class platform, and established a deeply loyal customer base. What Procore has built is truly impressive, and this is just the beginning. I joined because I believe our brightest days are ahead of us. We are well positioned for durable growth and margin expansion. As we continue to innovate for our customers and execute towards our goals, I am confident in our ability to deliver substantial shareholder value.

Thank you for making me feel, welcome, and thank you for your commitment, to our customers, and to our company.

Ajei Gopal: None of the opportunities Procore has would be possible without the incredible culture you've built over the years. Thank you for making me feel welcomed, and thank you for your commitment to our customers and to our company. Howard?

Speaker #1: My first quarter as CEO exceeded my expectations, and while there is a lot of work ahead, I am incredibly excited about the future of Procore.

Thanks AJ. And thank you to everyone for joining us. The main topics, I would like to cover today. Include our Q4, and full year Financial results additional color on the business and our outlook for fiscal 26.

Howard Fu: Thanks, Ajei, and thank you to everyone for joining us. The main topics I would like to cover today include our Q4 and full year financial results, additional color on the business, and our outlook for fiscal 2026. Total revenue in Q4 was $349 million, up 15.6% year over year. Our Q4 international revenue grew 14% year over year and was impacted by currency headwinds. On a constant currency basis, international revenue grew 15% year over year. Q4 non-GAAP operating income was $52 million, representing a non-GAAP operating margin of 15%. As for our key backlog metrics, current RPO grew 22% year over year, and current deferred revenue grew 18% year over year. As you heard from Ajei, Q4 was an exceptional quarter to round out a strong year.

Speaker #1: Procore is a rare company. We have scaled past $1 billion in revenue, defined an entire category, delivered a best-in-class platform, and established a deeply loyal customer base.

Total revenue in Q4 was 349 million up 15.6% year-over-year.

Speaker #1: What PROCORE has built is truly impressive. And this is just the beginning. I joined because I believe our brightest days are ahead of us.

For International Revenue, grew 14% year-over-year And was impacted by currency headwinds, on a constant currency basis, International Revenue. Grew 15% year-over-year

Speaker #1: We are well positioned for durable growth and margin expansion. As we continue to innovate for our customers and execute towards our goals, I am confident in our ability to deliver substantial shareholder value.

in the non-gaap operating margin of 15%.

Howard Fu: On a constant currency basis, international revenue grew 15% year over year. Q4 non-GAAP operating income was $52 million, representing a non-GAAP operating margin of 15%. As for our key backlog metrics, current RPO grew 22% year over year, and current deferred revenue grew 18% year over year. As you heard from Ajei, Q4 was an exceptional quarter to round out a strong year.

As for our key backlog metrics current RPO group 22% year-over-year and current deferred revenue, grew 18% year-over-year.

Speaker #1: Before I turn the call over to Howard, I want to thank all of the PROCORE employees. None of the opportunities PROCORE has would be possible without the incredible culture you've built over the years.

Ajei Gopal: Before I turn the call over to Howard, I want to thank all of the Procore employees. None of the opportunities Procore has would be possible without the incredible culture you've built over the years. Thank you for making me feel welcomed, and thank you for your commitment to our customers and to our company. Howard?

As you heard from AJ 24 was an exceptional quarter to round out a strong Year. Let me share some additional color on our performance.

Speaker #1: Thank you for making me feel welcomed and thank you for your commitment to our customers and to our company. Howard, thanks, Ajay, and thank you to everyone for joining us.

Howard Fu: Let me share some additional color on our performance. Beginning with the top line, our strength in the quarter came from robust execution across multiple areas of the business. We are seeing broad-based momentum upmarket, higher pipeline conversion, and improving renewal and churn rates, which we largely attribute to our go-to-market operating model. Our strength upmarket is reflected in the number of six- and seven-figure deals, which grew 20% year-over-year on top of a very strong performance last Q4. The total number of 100K plus ARR customers now totals more than 2,700. Within our strength upmarket, we ended the year with 115 customers spending more than $1 million in ARR with Procore. This represents 34% year-over-year growth, further demonstrating our ability to scale to the largest customers around the world.

Howard Fu: Thanks, Ajei, and thank you to everyone for joining us. The main topics I would like to cover today include our Q4 and full year financial results, additional color on the business, and our outlook for fiscal 2026. Total revenue in Q4 was $349 million, up 15.6% year-over-year. Our Q4 international revenue grew 14% year-over-year and was impacted by currency headwinds. On a constant currency basis, international revenue grew 15% year-over-year. Q4 non-GAAP operating income was $52 million, representing a non-GAAP operating margin of 15%. As for our key backlog metrics, current RPO grew 22% year-over-year, and current deferred revenue grew 18% year-over-year. As you heard from Ajei, Q4 was an exceptional quarter to round out a strong year. Let me share some additional color on our performance.

Beginning with the Top Line, our strength in the quarter came from robust execution, across multiple areas of the business we are seeing broad-based momentum up, Market higher pipeline conversion, and improving, renewal and churn rates, which we largely attribute to our go to Market operating model.

Speaker #1: The main topics I would like to cover today include our Q4 and full-year financial results, additional color on the business, and our outlook for fiscal '26.

Speaker #1: Total revenue in Q4 was $349 million, up 15.6% year over year. Our Q4 international revenue grew 14% year over year and was impacted by currency headwinds.

Howard Fu: Our strength upmarket is reflected in the number of six- and seven-figure deals, which grew 20% year-over-year on top of a very strong performance last Q4. The total number of 100K plus ARR customers now totals more than 2,700. Within our strength upmarket, we ended the year with 115 customers spending more than $1 million in ARR with Procore. This represents 34% year-over-year growth, further demonstrating our ability to scale to the largest customers around the world.

Our strength up Market is in the number of 6 and 7 figure deals which grew 20% year-over-year on top of 8 very strong performance. Last Q4 the total number of 100K plus ARR customers now totals more than 2700.

Speaker #1: On a constant currency basis, international revenue grew 15% year over year. Q4 non-GAAP operating income was $52 million, representing a non-GAAP operating margin of 15%.

within our strength up Market, we ended the year with 115 customers spending more than 1 million in ARR with procore

This represents 34% year-over-year growth further. Demonstrating our ability to scale to the largest customers around the world.

Speaker #1: As for our key backlog metrics, current RPO grew 22% year over year, and current deferred revenue grew 18% year over year. And as you heard from Ajay, Q4 was an exceptional quarter to round out a strong year.

We also continue to see strong momentum with procore pay ending the year with nearly 450 customers, representing More than 70% year-over-year growth.

Howard Fu: We also continue to see strong momentum with Procore Pay, ending the year with nearly 450 customers, representing more than 70% year-over-year growth. As we've been messaging throughout 2025, we believe the number of 100K plus ARR customers is the best representation of our business performance and our revenue growth, as it represents the vast majority of our customer base at 66% of total ARR. In contrast, our total customer count growth is heavily impacted by our SMB customers, and therefore is not reflective of our underlying business performance. As such, and in line with our commentary to investors over the past year, this will be the final earnings we will be disclosing total customer count. However, we will continue to disclose the 100K plus ARR customer count on a quarterly basis.

Speaker #1: Let me share some additional color on our performance. Beginning with the top line, our strength in the quarter came from robust execution across multiple areas of the business.

Howard Fu: Beginning with the top line, our strength in the quarter came from robust execution across multiple areas of the business. We are seeing broad-based momentum upmarket, higher pipeline conversion, and improving renewal and churn rates, which we largely attribute to our go-to-market operating model. Our strength upmarket is reflected in the number of six and seven-figure deals, which grew 20% year-over-year on top of a very strong performance last Q4. The total number of 100K+ ARR customers now totals more than 2,700. Within our strength upmarket, we ended the year with 115 customers spending more than $1 million in ARR with Procore. This represents 34% year-over-year growth, further demonstrating our ability to scale to the largest customers around the world.

Speaker #1: We are seeing broad-based momentum up market, higher pipeline conversion, and improving renewal and churn rates, which we largely attribute to our go-to-market operating model.

As we have been messaging throughout 2025, we believe the number of 100K plus our customers is the best representation of our business performance and our Revenue growth. As it represents the vast majority of our customer base at 66% of total ARR.

In contrast, our total customer count growth is heavily impacted by our SMB customers. And therefore is not reflective of our underlying business performance.

Speaker #1: Our strength up market is reflected in the number of six and seven-figure deals, which grew 20% year over year, on top of eight very strong performance last Q4.

Howard Fu: In contrast, our total customer count growth is heavily impacted by our SMB customers, and therefore is not reflective of our underlying business performance. As such, and in line with our commentary to investors over the past year, this will be the final earnings we will be disclosing total customer count. However, we will continue to disclose the 100K plus ARR customer count on a quarterly basis.

As such an inline with our commentary to investors over the past year, this will be the final earnings. We will be disclosing total customer count.

Speaker #1: The total number of 100K plus ARR customers now totals more than 2,700. Within our strength up market, we ended the year with 115 customers spending more than $1 million in ARR with PROCORE.

However, we will continue to disclose the 100K, plus our customer count, on a quarterly basis.

Speaker #1: This represents 34% year-over-year growth, further demonstrating our ability to scale to the largest customers around the world. We also continue to see strong momentum with Procore Pay, ending the year with nearly 450 customers, representing more than 70% year-over-year growth.

Howard Fu: Our strength in the quarter also contributed to the strength in CRPO. This metric continues to benefit primarily from longer average contract duration. When normalizing CRPO for this dynamic, the year-over-year growth is consistent with both Q4 revenue growth and ending ARR growth. Once contract duration stabilizes, reported and normalized CRPO growth will eventually converge with revenue growth. With respect to margins, we delivered 400 basis points of margin improvement for the year, all while investing in our go-to-market operating model and our platform. While our margin improvement may not be linear within the year, we will continue to deliver incremental margin expansion on an annual basis, which is also reflected in our fiscal 2026 guide. Now let's turn to our North Star metric, free cash flow per share.

Our strength in the quarter, also contributed to the strength and crpo this metric continues to benefit primarily from longer average contract duration. When normalizing crpo for this Dynamic, the year-over-year growth is consistent with both Q4 Revenue growth and ending ARR growth,

Speaker #1: As we've been messaging throughout 2025, we believe the number of 100K plus ARR customers is the best representation of our business performance and our revenue growth, as it represents the vast majority of our customer base at 66% of total ARR.

Once contract, duration stabilizes reported and normalized crpo growth will eventually converge with Revenue growth.

With respect to margins, we delivered 400 basis points of margin Improvement for the year all while investing in our go to Market, operating model and our platform.

Howard Fu: With respect to margins, we delivered 400 basis points of margin improvement for the year, all while investing in our go-to-market operating model and our platform. While our margin improvement may not be linear within the year, we will continue to deliver incremental margin expansion on an annual basis, which is also reflected in our fiscal 2026 guide. Now let's turn to our North Star metric, free cash flow per share.

Speaker #1: In contrast, our total customer count growth is heavily impacted by our SMB customers, and therefore is not reflective of our underlying business performance. As such, an in line with our commentary to investors over the past year, this will be the final earnings we will be disclosing total customer count.

Incremental margin expansion on an annual basis which is also reflected in our fiscal 26 guide.

Now, let's turn to our Northstar metric, free cash flow per share.

Speaker #1: However, we will continue to disclose the 100K plus ARR customer count on a quarterly basis. Our strength in the quarter also contributed to the strength in CRPO, this metric continues to benefit primarily from longer average contract duration, when normalizing CRPO for this dynamic, the year-over-year growth is consistent with both Q4 revenue growth and ending ARR growth.

Howard Fu: We delivered our strongest free cash flow quarter in history, generating $90 million in the quarter, bringing full-year free cash flow to $215 million, representing 69% year-over-year growth and a 16% free cash flow margin. This result reflects our strong bookings, which translated into higher billings and collections, as well as continued margin expansion. We are also focused on limiting our share count dilution rate. Our weighted average diluted share count grew less than 1% in Q4, which reflects our continued discipline on equity compensation. We believe our share count growth is a leading indicator of SBC leverage over the long term. SBC, which is a lagging indicator, can be impacted by accounting rules that have no impact on dilution.

We delivered our strongest free cash flow quarter in history, generating 90 million in the quarter bringing full year. Free cash flow to 215 million representing 69% year-over-year, growth and a 16% free cash flow margin.

Howard Fu: Our strength in the quarter also contributed to the strength in CRPO. This metric continues to benefit primarily from longer average contract duration. When normalizing CRPO for this dynamic, the year-over-year growth is consistent with both Q4 revenue growth and ending ARR growth. Once contract duration stabilizes, reported and normalized CRPO growth will eventually converge with revenue growth. With respect to margins, we delivered 400 basis points of margin improvement for the year, all while investing in our go-to-market operating model and our platform. While our margin improvement may not be linear within the year, we will continue to deliver incremental margin expansion on an annual basis, which is also reflected in our fiscal 2026 guide. Now, let's turn to our North Star metric, free cash flow per share.

This result reflects our strong bookings, which translated into higher Billings and collections as well as continued margin expansion.

We are also focused on limiting our share count dilution rate.

Speaker #1: Once contract duration stabilizes, reported and normalized CRPO growth will eventually converge with revenue growth. With respect to margins, we delivered 400 basis points of margin improvement for the year, all while investing in our go-to-market operating model and our platform.

Our weighted average diluted share count grew less than 1% in Q4, which reflects our continued discipline on Equity compensation.

Howard Fu: We are also focused on limiting our share count dilution rate. Our weighted average diluted share count grew less than 1% in Q4, which reflects our continued discipline on equity compensation. We believe our share count growth is a leading indicator of SBC leverage over the long term. SBC, which is a lagging indicator, can be impacted by accounting rules that have no impact on dilution.

We believe our share count growth is a leading indicator of SBC. Leverage over the long term.

SBC, which is a lagging indicator. Can be impacted by accounting rules that have no impact on dilution.

Speaker #1: While our margin improvement may not be linear within the year, we will continue to deliver incremental margin expansion on an annual basis, which is also reflected in our fiscal 26 guide.

Our Q4 results were an example of this with SBC increasing to 23% of Revenue driven by a 1-time charge of unvested, equity related to the transition of our former CEO.

Howard Fu: Our Q4 results were an example of this, with SBC increasing to 23% of revenue, driven by a one-time charge of unvested equity related to the transition of our former CEO. This charge only impacted the P&L and was not an acceleration of equity compensation payout. Excluding this one-time charge, SBC would have been 16.6% of revenue, which is in line with Q3. Our Q4 and full-year results demonstrate that we remain focused on delivering durable growth, margin expansion, and modest share count growth in order to compound free cash flow per share. And our strong results and momentum were all achieved before any material top-line benefits from AI that we expect to realize in the future. Looking back on the year, I am proud that we delivered on the commitments we made for fiscal 2025, particularly while facing ongoing headwinds from a challenging construction environment.

Speaker #1: Now let's turn to our North Star metric, free cash flow per share. We delivered our strongest free cash flow quarter in history, generating $90 million in the quarter, bringing full-year free cash flow to $215 million representing 69% year-over-year growth and a 16% free cash flow margin.

This charge only impacted the p&l and was not an acceleration of equity compensation payout.

excluding this 1-time charge SBC would have been 16.6% of Revenue, which is in line with Q3

Speaker #1: This result reflects our strong bookings, which translated into higher billings and collections as well as continued margin expansion. We are also focused on limiting our share count dilution rate.

our Q4 and full year results demonstrate that we remain focused on delivering durable growth margin expansion and modest, share count, growth in order to compound free cash flow per share.

Howard Fu: Our Q4 and full-year results demonstrate that we remain focused on delivering durable growth, margin expansion, and modest share count growth in order to compound free cash flow per share. And our strong results and momentum were all achieved before any material top-line benefits from AI that we expect to realize in the future. Looking back on the year, I am proud that we delivered on the commitments we made for fiscal 2025, particularly while facing ongoing headwinds from a challenging construction environment.

Speaker #1: Our weighted average diluted share count grew less than 1% in Q4, which reflects our continued discipline on equity, compensation, we believe our share count growth is a leading indicator of SBC leverage over the long term.

And our strong results and momentum were all achieved before, any material Topline benefits from AI that we expect to realize in the future.

looking back on the year, I am proud that we delivered on the commitments, we made for fiscal 25, particularly while facing ongoing headwinds, from a challenging construction environment,

Speaker #1: SBC, which is a lagging indicator, can be impacted by accounting rules that have no impact on dilution. Our Q4 results were an example of this, with SBC increasing to 23% of revenue, driven by a one-time charge of unvested equity related to the transition of our former CEO.

Our go to market motion, is yielding tangible and more consistent results characterized by improved sales productivity, and a noticeable shift towards larger enterprise-wide relationships.

Howard Fu: Our Q4 results were an example of this, with SBC increasing to 23% of revenue, driven by a one-time charge of unvested equity related to the transition of our former CEO. This charge only impacted the PNL and was not an acceleration of equity compensation payout. Excluding this one-time charge, SBC would have been 16.6% of revenue, which is in line with Q3. Our Q4 and full-year results demonstrate that we remain focused on delivering durable growth, margin expansion, and modest share count growth in order to compound free cash flow per share. Our strong results and momentum were all achieved before any material top-line benefits from AI that we expect to realize in the future. Looking back on the year, I am proud that we delivered on the commitments we made for fiscal 2025, particularly while facing ongoing headwinds from a challenging construction environment.

Howard Fu: Our go-to-market motion is yielding tangible and more consistent results, characterized by improved sales productivity and a noticeable shift towards larger enterprise-wide relationships. This motion, combined with the compelling ROI of our platform, has not only solidified our category leadership, but has also created a more durable business. And more importantly, we have achieved this while remaining laser-focused on our North Star metric, free cash flow per share. With that, let's move on to our outlook. For Q1 of fiscal 2026, we expect revenue between $351 million and $353 million, representing year-over-year growth of 13% to 14%. Q1 non-GAAP operating margin is expected to be between 14% and 15%.

This motion combined with the compelling, Roi of our platform has, not only solidified, our category leadership but has ALS created a more durable business.

Speaker #1: This charge only impacted the P&L and was not an acceleration of equity compensation payout. Excluding this one-time charge, SBC would have been 16.6% of revenue, which is in line with Q3.

And more importantly we have achieved this while remaining laser focused on our Northstar metric, free cash flow per share.

With that, let's move on to our Outlook.

Speaker #1: Our Q4 and full-year results demonstrate that we remain focused on delivering durable growth, margin expansion, and modest share count growth in order to compound free cash flow per share.

For the first quarter of fiscal 2026, we expect revenue between 351 million and 353 million representing year-over-year growth of 13 to 14%.

Q1 non-gaap operating margin is expected to be between 14 and 15%.

Speaker #1: And our strong results in momentum were all achieved before any material top-line benefits from AI that we expect to realize in the future. Looking back on the year, I am proud that we delivered on the commitments we made for fiscal 25, particularly while facing ongoing headwinds from a challenging construction environment.

For the full year, fiscal 26. We expect revenue between 1.489 billion and 1.494 billion. Representing total year-over-year growth of 13%.

Howard Fu: For the full year fiscal 2026, we expect revenue between $1.489 billion and $1.494 billion, representing total year-over-year growth of 13%. We expect our non-GAAP operating margin guidance for the year to be between 17.5% and 18%, which implies year-over-year margin expansion between 340 and 390 basis points. Additionally, to closer align our guided metrics to free cash flow per share, we are now formally guiding free cash flow margin on an annual basis. We expect free cash flow margin for the year to be 19%, which implies year-over-year margin expansion of 270 basis points.

Speaker #1: Our go-to-market motion is yielding tangible and more consistent results, characterized by improved sales productivity and a noticeable shift towards larger enterprise-wide relationships. This motion, combined with the compelling ROI of our platform, has not only solidified our category leadership but has also created a more durable business.

Howard Fu: Our go-to-market motion is yielding tangible and more consistent results, characterized by improved sales productivity and a noticeable shift towards larger enterprise-wide relationships. This motion, combined with the compelling ROI of our platform, has not only solidified our category leadership, but has also created a more durable business. And more importantly, we have achieved this while remaining laser-focused on our North Star metric, free cash flow per share. With that, let's move on to our outlook. For the first quarter of fiscal 2026, we expect revenue between $351 million and $353 million, representing 13% to 14% year-over-year growth. Q1 non-GAAP operating margin is expected to be between 14% and 15%.

We expect our non-gaap operating margin guidance for the year to be between 17.5% and 18%, which implies year-over-year margin expansion, between 300 and 40 and 390 basis points.

Additionally to closer aligned our guided metrics to free cash flow per share. We are now formally. Guiding free cash flow margin on an annual basis.

Speaker #1: And more importantly, we have achieved this while remaining laser-focused on our North Star metric, free cash flow per share. With that, let's move on to our outlook.

We expect free cash flow margin for the year to be 19% which implies year-over-year margin expansion of 270 basis points.

Speaker #1: For the first quarter of fiscal 2026, we expect revenue between $351 million and $353 million representing year-over-year growth of 13% to 14%. Q1 non-GAAP operating margin is expected to be between 14% and 15%.

To wrap up. We are pleased with how we ended the year and the momentum we have across multiple aspects of the business and we are confident that we can deliver on our promise of a stronger p&l and fiscal 26.

Howard Fu: To wrap up, we are pleased with how we ended the year and the momentum we have across multiple aspects of the business, and we are confident that we can deliver on our promise of a stronger PNL in fiscal 26. We expect our category leadership, strong execution, and AI capabilities to drive shareholder value in the years ahead. With that, let's turn it over to the operator for Q&A.

We expect our category leadership, strong execution, and AI capabilities to drive shareholder value in the years ahead.

Speaker #1: For the full-year fiscal 26, we expect revenue between $1.489 billion and $1.494 billion representing total year-over-year growth of 13%. We expect our non-GAAP operating margin guidance for the year to be between 17.5% and 18%, which implies year-over-year margin expansion between $340 and $390 basis points.

With that, let's turn it over to the operator for Q&A.

Operator: Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason at all you would like to remove that question, please press star followed by two. Again, to ask a question, please press star one. The first question comes from Saket Kalia with Barclays. You may proceed.

Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star, followed by 1 on your telephone keypad. If for any reason at all, you would like to remove that question. Please. Press star. Followed by 2 again to ask a question. Please press star 1

The first question comes from socket, Kalia with Barclays, you may proceed.

Speaker #1: Additionally, to closer align our guided metrics to free cash flow per share, we are now formally guiding free cash flow margin on an annual basis.

Okay, great. Hey AJ. Hey, Howard, thanks for taking my questions. Here, a nice finish to the year.

Speaker #1: We expect free cash flow margin for the year to be 19%, which implies year-over-year margin basis points. To wrap up, we are pleased with how we ended the year and the momentum we have across multiple aspects of the business, and we are confident that we can deliver on our promise of a stronger P&L in fiscal '26.

Saket Kalia: Okay, great. Hey, Ajei. Hey, Howard. Thanks for taking my questions here, and nice finish to the year.

Hey second, how are you? Thanks second good. Hey guys, uh Jay maybe maybe to start with you. Um, appreciated your prepared remarks uh particularly around AI.

Ajei Gopal: Hey, Saket, how are you?

Saket Kalia: Hey, Saket, how are you?

Howard Fu: Thanks, Saket.

Saket Kalia: Good. Hey, guys. Ajei, maybe, maybe to start with you, appreciating your prepared remarks, particularly around AI. But I was wondering if we could just dig a little deeper on what your customer conversations have been like on the topic of AI. And maybe specifically, do you see customers trying to maybe build Procore-like tools themselves someday?

Howard Fu: To wrap up, we are pleased with how we ended the year and the momentum we have across multiple aspects of the business, and we are confident that we can deliver on our promise of a stronger PNL in fiscal 2026. We expect our category leadership, strong execution, and AI capabilities to drive shareholder value in the years ahead. With that, let's turn it over to the operator for Q&A.

But I was wondering if we could just dig a Little Deeper on what your customer conversations have been like on the topic of AI and and maybe specifically do you see customers trying to maybe build procore like tools themselves someday?

Speaker #1: We expect our category leadership, strong execution, and AI capabilities to drive shareholder value in the years ahead. With that, let's turn it over to the operator for Q&A.

Um, so second the the example that I gave you in the script, um Frankie that gave me goosebumps and it's I hope it gave you Goosebumps as well because it's so compelling. I it it shows

Ajei Gopal: So Saket, the example that I gave you in the script, frankly, that gave me goosebumps, and it – I hope it gave you goosebumps as well, because it's so compelling. It shows how different the construction use case is from the general horizontal office application or the commercial use case or a general consumer use case of AI. And that's why this laser focus that we've had on construction is so important to our customers. And so to your point, I mean, thinking about it from a customer perspective, our customers, they neither have the time nor the inclination to become AI experts. They're in the business of construction, and they just want to build better, and that's their business.

Saket Kalia: So Saket, the example that I gave you in the script, frankly, that gave me goosebumps, and it – I hope it gave you goosebumps as well, because it's so compelling. It shows how different the construction use case is from the general horizontal office application or the commercial use case or a general consumer use case of AI. And that's why this laser focus that we've had on construction is so important to our customers. And so to your point, I mean, thinking about it from a customer perspective, our customers, they neither have the time nor the inclination to become AI experts. They're in the business of construction, and they just want to build better, and that's their business.

Speaker #2: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star followed by 1 on your telephone keypad.

Speaker #2: If for any reason at all you would like to remove that question, please press star followed by 2. Again, to ask a question, please press star 1.

how different the construction use cases from the general horizontal Office application or uh the commercial uh, use case, uh, a general consumer, use case of AI. And and that's why this laser focus that we've had on construction, is so important to our customers. And so, to your point, I mean, thinking about it from a customer perspective,

Speaker #2: The first question comes from Saket Kalia with Barclays. You may proceed.

Speaker #3: Okay, great. Hey, Ajay. Hey, Howard. Thanks for taking my questions here. A nice finish to the year.

Saket Kalia: Okay, great. Hey, Ajei. Hey, Howard. Thanks for taking my questions here. A nice finish to the year.

Our customers, they neither have the time nor the inclination to become AI experts. They're in the business of construction, and they just want to build better.

And that's their business.

Speaker #4: Hey, Saket. How are you?

Ajei Gopal: Hey, Saket, how are you?

Speaker #3: Thanks, Saket.

Howard Fu: Thanks, Saket.

Speaker #4: Good. Hey guys, Ajay, maybe to start with you—appreciated your prepared remarks, particularly around AI. But I was wondering if we could just dig a little deeper on what your customer conversations have been like on the topic of AI.

Saket Kalia: Good. Hey, guys. Ajei, maybe to start with you. Appreciated your prepared remarks, particularly around AI. But I was wondering if we could just dig a little deeper on what your customer conversations have been like on the topic of AI. And maybe specifically, do you see customers trying to maybe build Procore-like tools themselves someday?

Ajei Gopal: And they want to make sure, though, that their tech vendor is taking advantage of the best and the latest technologies, including, of course, AI. And that's the conversations that I have with my customers. And I'm excited that we have the structural advantages, and that we've also taken the operational actions to emerge as an AI winner. Now, as far as Procore AI is concerned, we're seeing clear customer adoption. So we have something like 66,000 unique active users who are using Procore AI. We've got something like 700 customers nearly, who have created thousands of agents on Procore, and these customers, they skew upmarket.

Saket Kalia: And they want to make sure, though, that their tech vendor is taking advantage of the best and the latest technologies, including, of course, AI. And that's the conversations that I have with my customers. And I'm excited that we have the structural advantages, and that we've also taken the operational actions to emerge as an AI winner. Now, as far as Procore AI is concerned, we're seeing clear customer adoption. So we have something like 66,000 unique active users who are using Procore AI. We've got something like 700 customers nearly, who have created thousands of agents on Procore, and these customers, they skew upmarket.

Speaker #4: And maybe specifically, do you see customers trying to maybe build Procore-like tools themselves someday?

Ajei Gopal: So Saket, the example that I gave you in the script, frankly, that gave me goosebumps, and it, I hope it gave you goosebumps as well, because it's so compelling. It shows how different the construction use case is from the general horizontal office application or the commercial use case or a general consumer use case of AI. And that's why this laser focus that we've had on construction is so important to our customers. So to your point, I mean, thinking about it from a customer perspective, our customers, they neither have the time nor the inclination to become AI experts. They're in the business of construction, and they just want to build better, and that's their business.

Speaker #3: So, Saket, the example that I gave you in the script frankly, that gave me goosebumps, and I hope it gave you goosebumps as well because it's so compelling.

And they want to make sure though that their Tech vendor is taking advantage of the best and the latest Technologies, including, of course Ai. And and that's the conversations that I have with my customers and I'm excited that we have the structural advantages. Uh, and that we've also taken the operational actions, uh, to emerge as an AI winner. Now, as far as procore AI is concerned, we're seeing we're seeing um you know Clear customer. So we have something like 66 users for using procore AI.

Speaker #3: It shows how different the construction use cases are from the general horizontal office application or the commercial use case, or a general consumer use case of AI, and that's why this laser focus that we've had on construction is so important to our customers.

Ajei Gopal: And obviously, we expect this momentum to continue to increase with the breadth and the depth of the capabilities that we have now that we've concluded the Datagrid acquisition. And at the risk of sort of repeating some of the comments from the script, I think it's important to recognize that, you know, we rode the wave when mobile and broadband became ubiquitous, we rode that wave to deliver digitization to the construction industry. And we were able to bring technology to the frontline workers in a manner that was appropriate to how they work and where they work. And so obviously, we both have a tremendous amount of trust with the industry at that time, and we have the same opportunity for AI today.

Saket Kalia: And obviously, we expect this momentum to continue to increase with the breadth and the depth of the capabilities that we have now that we've concluded the Datagrid acquisition. And at the risk of sort of repeating some of the comments from the script, I think it's important to recognize that, you know, we rode the wave when mobile and broadband became ubiquitous, we rode that wave to deliver digitization to the construction industry. And we were able to bring technology to the frontline workers in a manner that was appropriate to how they work and where they work. And so obviously, we both have a tremendous amount of trust with the industry at that time, and we have the same opportunity for AI today.

Speaker #3: And so, to your point, I mean, thinking about it from a customer perspective, our customers neither have the time nor the inclination to become AI experts.

Speaker #3: They're in the business of construction, and they just want to build better. And that's their business. And they want to make sure though that their tech vendor is taking advantage of the best and the latest technologies including, of course, AI.

Ajei Gopal: They want to make sure, though, that their tech vendor is taking advantage of the best and the latest technologies, including, of course, AI. And that's the conversations that I have with my customers. I'm excited that we have the structural advantages, and that we've also taken the operational actions to emerge as an AI winner. Now, as far as Procore AI is concerned, we're seeing clear customer adoption. So we have something like 66,000 unique active users who are using Procore AI. We've got something like 700 customers, nearly, who have created thousands of agents on Procore, and these customers, they skew upmarket.

Speaker #3: And that's the conversations that I have with my customers, and I'm excited that we have the structural advantages and that we've also taken the operational actions to emerge as an AI winner.

We've got something like 700 customers, nearly, uh, who have created thousands of Agents on on procore and these customers, they skew up Market, uh, and obviously, we expect this momentum to continue to increase, uh, with the breadth and the depth of the capabilities that we have now that we've concluded, the, the data grid acquisition, uh, and, and at the risk of sort of repeating some of the comments from the script, uh, I think it's important to recognize that, you know, we rode the wave. Um, when when mobile became uh, mobile and Broadband became ubiquitous, we wrote that wave to deliver digitization to the construction industry and and we were able to bring technology to the Frontline workers in a manner, that was appropriate to how they work and where they work. Um, and well, we built up, a tremendous amount of trust with the industry at that time and we have the same opportunity for AI today. And if you think about what I discussed their sort of structural and

Operational aspects. And so, let me just sort of talk a little bit about the structural

Speaker #3: Now, as far as Procore AI is concerned, we're seeing clear customer adoption. So, we have something like 66,000 unique active users who are using Procore AI.

Ajei Gopal: If you think about what I discussed, there's sort of structural and operational aspects. So let me just sort of talk a little bit about the structural. You know, our solutions are at the interface between the physical and the digital world. I mean, we're the ones who are digitizing activities, and we're the ones where action is taking place to affect the physical world. And as I mentioned in my script, you know, we are the system of record. We've got 3 million users, but as a system of record, we have this dynamic record of decisions that have taken place across thousands and thousands of projects.

Saket Kalia: If you think about what I discussed, there's sort of structural and operational aspects. So let me just sort of talk a little bit about the structural. You know, our solutions are at the interface between the physical and the digital world. I mean, we're the ones who are digitizing activities, and we're the ones where action is taking place to affect the physical world. And as I mentioned in my script, you know, we are the system of record. We've got 3 million users, but as a system of record, we have this dynamic record of decisions that have taken place across thousands and thousands of projects.

Speaker #3: We've got something like 700 customers nearly who have created thousands of agents on Procore, and these customers skew up market. And obviously, we expect this momentum to continue to increase with the breadth and the depth of the capabilities that we have now that we've concluded the data grid acquisition.

Ajei Gopal: And obviously, we expect this momentum to continue to increase with the breadth and the depth of the capabilities that we have now that we've concluded the Datagrid acquisition. And at the risk of sort of repeating some of the comments from the script, I think it's important to recognize that, you know, we rode the wave when mobile and broadband became ubiquitous; we rode that wave to deliver digitization to the construction industry. And we were able to bring technology to the frontline workers in a manner that was appropriate to how they work and where they work. And obviously, we both have a tremendous amount of trust with the industry at that time, and we have the same opportunity for AI today.

Speaker #3: And at the risk of sort of repeating some of the comments from the script, I think it's important to recognize that we rode the wave when mobile became mobile and broadband became ubiquitous.

Ajei Gopal: But it's not just the data, it's the relationship between the data elements, it's the annotations, how things have changed, the decisions, all of that is contained within our system of record. But it's not just being the system of record, it's the fact that we're now also a system of collaboration because we have this network effect where we, we've become a central hub for project stakeholders to connect, and to be able to work together. I also pointed out that we are providing insights, and of course, we're also taking insights a step further, and we're providing actions, and those actions are enabling our customers to be successful. But those actions take place in the context of trust, because we've built a scalable enterprise-grade infrastructure to ensure every AI action is secure, compliant, and relevant.

Saket Kalia: But it's not just the data, it's the relationship between the data elements, it's the annotations, how things have changed, the decisions, all of that is contained within our system of record. But it's not just being the system of record, it's the fact that we're now also a system of collaboration because we have this network effect where we, we've become a central hub for project stakeholders to connect, and to be able to work together. I also pointed out that we are providing insights, and of course, we're also taking insights a step further, and we're providing actions, and those actions are enabling our customers to be successful. But those actions take place in the context of trust, because we've built a scalable enterprise-grade infrastructure to ensure every AI action is secure, compliant, and relevant.

Speaker #3: We rode that wave to deliver digitization to the construction industry. And we were able to bring technology to the frontline workers in a manner that was appropriate to how they work and where they work.

You know, our Solutions, um, are the at the interface between the physical and the digital world. I mean, we're the ones who are digitizing activities and where the ones where action is taking place to affect the physical world. And I, as I mentioned in my script, you know, we are the system of record, we've got 3 million users. Uh, but in a as a system of record we we have this Dynamic record of decisions that have been taken that have taken place across thousands and thousands of projects, but it's not just the data. It's the relationship between the data elements. It's the annotations how, how things have changed. Um, the decisions. All of that is contained within a system of record, but it's not just being the system of record. It's the fact that we're now also a system of collaboration because we have this network effect, where we be we we become a central hub for project stakeholders to connect uh and to be able to work together. I also pointed out that we are we are providing insights um and and of course we're also taking insight to

Speaker #3: And obviously, we built up a tremendous amount of trust with the industry at that time, and we have the same opportunity for AI today.

Speaker #3: And if you think about what I discussed, there's sort of structural and operational aspects. And so, let me just sort of talk a little bit about the structural.

Ajei Gopal: And if you think about what I discussed, there's sort of structural and operational aspects. And so let me just sort of talk a little bit about the structural. You know, our solutions are at the interface between the physical and the digital world. I mean, we're the ones who are digitizing activities, and we're the ones where action is taking place to affect the physical world. And as I mentioned in my script, you know, we are the system of record. We've got 3 million users, but as a system of record, we have this dynamic record of decisions that have taken place across thousands and thousands of projects.

Speaker #3: Our solutions are the at the interface between the physical and the digital world. I mean, we're the ones who are digitizing activities and we're the ones where action is taking place to affect the physical world.

Step further, and we're providing actions. And those actions are enabling our customers to be successful. But those actions take place in the context of trust because we've built a scalable Enterprise grid infrastructure to ensure every AI action, uh, is secure compliant and relevant. So we're very excited about our structural advantages as I talked to customers. They, they see this, um, and obviously, the, the, the actions that we've taken the Investments that we've made, I mean,

Speaker #3: And as I mentioned in my script, we are the system of record. We've got 3 million users, but as a system of record, we have this dynamic record of decisions that have taken place across thousands and thousands of projects. But it's not just the data.

Ajei Gopal: So we're very excited about our structural advantages. As I talk to customers, they see this, and obviously, the actions that we've taken, the investments that we've made, I mean, we recognize the importance of AI. We've mobilized our company behind the opportunity, and we're applying significant resources. You saw this at Groundbreak, where AI was everywhere. We took you guys and our customers through our AI strategy. And then, of course, we've acquired Datagrid since then, as you know. And with as far as Datagrid is concerned, we've known the team for some time. Those guys are AI experts, they're construction tech experts.

Saket Kalia: So we're very excited about our structural advantages. As I talk to customers, they see this, and obviously, the actions that we've taken, the investments that we've made, I mean, we recognize the importance of AI. We've mobilized our company behind the opportunity, and we're applying significant resources. You saw this at Groundbreak, where AI was everywhere. We took you guys and our customers through our AI strategy. And then, of course, we've acquired Datagrid since then, as you know. And with as far as Datagrid is concerned, we've known the team for some time. Those guys are AI experts, they're construction tech experts.

Ajei Gopal: But it's not just the data, it's the relationship between the data elements, it's the annotations, how things have changed, the decisions, all of that is contained within our system of record. But it's not just being the system of record, it's the fact that we're now also a system of collaboration because we have this network effect where we've become a central hub for project stakeholders to connect and to be able to work together. I also pointed out that we are providing insights, and of course, we're also taking insights a step further, and we're providing actions and those actions are enabling our customers to be successful, but those actions take place in the context of trust, because we've built a scalable enterprise-grade infrastructure to ensure every AI action is secure, compliant, and relevant.

Speaker #3: It's the relationship between the data elements. It's the annotations—how things have changed, the decisions—all of that is contained within a system of record.

Speaker #3: But it's not just being the system of record. It's the fact that we're now also a system of collaboration because we have this network effect where we've become a central hub for project stakeholders to connect and to be able to work together.

We recognize the importance of AI. We've mobilized, our company behind the opportunity and we're applying significant resources. You saw this at groundbreak, uh, where are was everywhere. Uh, we took you guys, and, and our customers through our AI Strat, our customers, through our AI strategy, uh, and then, of course, we've acquired data grid since then, as I, as I as, you know, uh, and and with, as far as data growth is concerned, we've known the team for some time, those guys are AI, experts, their construction Tech experts. They're excited about the use of AI and construction, and they're going to be part of the program, and we anticipate a great integration with that, uh, with those capabilities.

Ajei Gopal: They're excited about the use of AI in construction, and they're going to be part of the Procore team, and we anticipate a great integration with that, with those capabilities. So I, I'm really excited about what we do. We see this as, we see this as a upside opportunity as we think about, the value that we're able to provide to our customers. And the, the overall, the overall technology, as you saw from the example, is, is pretty amazing.

Saket Kalia: They're excited about the use of AI in construction, and they're going to be part of the Procore team, and we anticipate a great integration with that, with those capabilities. So I, I'm really excited about what we do. We see this as, we see this as a upside opportunity as we think about, the value that we're able to provide to our customers. And the, the overall, the overall technology, as you saw from the example, is, is pretty amazing.

Speaker #3: I also pointed out that we are providing insights and, of course, we're also taking insights a step further, and we're providing actions and those actions are enabling our customers to be successful.

Uh, the value that we're able to provide to our customers. Um, and the, um, the overall, the overall technology as you saw from the example, is, is pretty amazing.

Speaker #3: But those actions take place in the context of trust because we've built a scalable enterprise-grade infrastructure to ensure every AI action is secure, compliant, and relevant.

That's that's great. That's great perspective AJ. Um, how, how would maybe for my follow up for, for you? Um,

Speaker #3: So, we're very excited about our structural advantages. As I talk to customers, they see this. And obviously, the actions that we've taken, the investments that we've made, I mean, we recognize the importance of AI.

Ajei Gopal: So we're very excited about our structural advantages. As I talk to customers, they see this. And obviously, the actions that we've taken, the investments that we've made, I mean, we recognize the importance of AI. We've mobilized our company behind the opportunity, and we're applying significant resources. You saw this at Groundbreak, where AI was everywhere. We took you guys and our customers through our AI strategy. And then, of course, we've acquired Datagrid since then, as you know. And as far as Datagrid is concerned, we've known the team for some time. Those guys are AI experts, they're construction tech experts.

Saket Kalia: That's great. That's great perspective, Ajei. Howard, maybe for my follow-up for you, you know, we've talked about the impact of pooled contracts on CRPO, and appreciate you kind of talking about the normalized growth there. Can you just maybe talk about the glide path for that metric in 2026, as we think about when that duration benefit maybe starts to normalize? Does that make sense?

Speaker #3: We've mobilized our company behind the opportunity, and we're applying significant resources you saw this at Groundbreak where AI was everywhere. We took you guys and our customers through our AI our customers through our AI strategy.

you know, we've talked about the impact of pulled contracts on on crpo and and appreciate you kind of talking about the normalized growth there. Can you just maybe looking forward? Can you just maybe talk about the Glide path for that metric in 2026? As we think about when that duration benefit maybe starts to normalize? Does that make sense?

Speaker #3: And then, of course, we've acquired data grids since then, as you know. And as far as data grid is concerned, we've known the team for some time.

Speaker #3: Those guys are AI experts. They're construction tech experts. They're excited about the use of AI in construction, and they're going to be part of the Procore team.

Howard Fu: It does. Thanks, Zach, and of course. First and foremost, Q4 CRPO growth includes the impact from a very strong Q4 bookings quarter. That's first and foremost what's showing up in Q4. And remember, that reflects five quarters in a row. If you go back to fiscal 2024 Q4, of consistent and strong execution and on the top line. So that's first and foremost. We had a really strong Q4. Secondly, when you think about Q4, we also saw another uptick in contract duration. And as that continues to increase, it continues to impact CRPO growth. Normalizing for the contract duration growth, similar to Q3, this is also true in Q4. Normalized CRPO growth is in line and consistent with Q4 revenue growth, and also ending ARR growth in Q4. So that's the first couple of things.

Ajei Gopal: They're excited about the use of AI in construction, and they're gonna be part of the Procore team, and we anticipate a great integration with that, with those capabilities. So I'm really excited about what we do. We see this as an upside opportunity as we think about the value that we're able to provide to our customers. And the overall technology, as you saw from the example, is pretty amazing.

Speaker #3: And we anticipate a great integration with that, with those capabilities. So, I'm really excited about what we do. We see this as an upside opportunity as we think about the value that we're able to provide to our customers.

It does. Thanks Zach, of course, first and foremost Q4 crpo growth, uh, includes the impact from a very strong Q4, bookings quarter. Uh, that's first and foremost, what's showing up in Q4 and remember that reflects 5 quarters in a row. If you go back to fiscal Q4 fiscal 24, Q4 of consistent and strong execution and on the top line. So that's first and foremost, we had a really strong Q4

Speaker #3: And the overall technology as you saw from the example is pretty amazing.

Saket Kalia: That's great. That's great from a perspective, Ajei. Howard, maybe for my follow-up for you, you know, we've talked about the impact of pooled contracts on CRPO, and appreciate you kind of talking about the normalized growth there. Can you just maybe talk about the glide path for that metric in 2026, as we think about when that duration benefit maybe starts to normalize? Does that make sense?

Speaker #4: That's great perspective, Ajay. Howard, maybe for my follow-up for you, we've talked about the impact of pooled contracts on CRPO and appreciate you kind of talking about the normalized growth there.

Secondly when you think about Q4, we also saw another uptick in contract duration, um and as that continues to increase, it continues to impact crpo normalizing for the contractor. Duration growth uh, similar to Q3, this is also true in Q4 normalized. CRP.

Speaker #4: Can you just maybe looking forward, can you just maybe talk about the glide path for that metric in 2026 as we think about when that duration benefit maybe starts to normalize?

Howard Fu: When we think about that glide path, if the contract duration is stable, then what will happen is the CRPO growth will eventually normalize with revenue growth, and if it stays stable throughout fiscal 2026, that will likely occur towards the latter part of the year. So that's what you can expect in terms of timing. But the last thing that I will say is, remember, a lengthening contract duration is actually a reflection of the confidence that our customers continue to have in extending their relationship and partnership with Procore, and that's a positive, a very positive outcome that we continue to see.

Speaker #4: Does that make sense?

Howard Fu: It does. Thanks, Zach, and of course. First and foremost, Q4 CRPO growth includes the impact from a very strong Q4 bookings quarter. That's first and foremost what's showing up in Q4. And remember, that reflects five quarters in a row. If you go back to fiscal Q4, fiscal 2024 Q4, of consistent and strong execution and on the top line. So that's first and foremost. We had a really strong Q4. Secondly, when you think about Q4, we also saw another uptick in contract duration. And as that continues to increase, it continues to impact CRPO growth. Normalizing for the contract duration growth, similar to Q3, this is also true in Q4, normalized CRPO growth is in line and consistent with Q4 revenue growth, and also ending ARR growth in Q4. So that's the first couple of things.

Speaker #3: It does. Thanks, Saket, of course. First and foremost, Q4 CRPO growth includes the impact from a very strong Q4 bookings quarter. That's first and foremost what's showing up in Q4.

Speaker #3: And remember, that reflects five quarters in a row. If you go back to fiscal Q4 '24, that's five quarters of consistent and strong execution on the top line.

Growth is in line and consistent with Q4 Revenue growth, and also ending our growth in Q4. So, that's the first couple of things when we think about that Glide path. Uh, if the contractor duration is stable, then what will happen is, the crpo growth will eventually normalize with Revenue growth and if it stays stable throughout fiscal 26 that will likely occur towards the latter part of the year. Uh, so that's what you can expect in terms of timing. But the last thing that I will say is, remember a lengthening contract duration, is actually a reflection of the confidence that our customers continue to have an extending their relationship and partnership with procore. Uh, and that's a positive uh very positive outcome that we continue to see.

Very helpful. Thanks guys.

Speaker #3: So, that's first and foremost. We had a really strong Q4. Secondly, when you think about Q4, we also saw another uptick in contract duration.

Thank you. The next question comes from Adam. Borg with fifo, you may proceed.

Speaker #3: And as that continues to increase, it continues to impact CRPO growth. Normalizing for the contract duration growth, similar to Q3, this is also true in Q4. Normalized CRPO growth is in line and consistent with Q4 revenue growth and also ending ARR growth in Q4.

Saket Kalia: Very helpful. Thanks, guys.

Operator: Thank you. The next question comes from Adam Borg with Stifel. You may proceed.

Adam Borg: Awesome. Thanks so much for taking the question, and great to speak with you, Ajei. Maybe just going back to the script for a minute, you talked about a nice win back. And so now that you've been in the seat, I'd love to hear more about maybe what surprised you, either to the upside or even the downside, just on the competitive landscape and importantly, Procore's position, competitively.

Welcome. Uh, thanks so much for taking the question and great to speak with you. Um, maybe just going back to the script for a minute, you talked about a nice win back. And so now that you've been in the seat, I'd love to hear more about. Maybe what surprised you either to the upside, or even the downside just on the competitive landscape and importantly, prochorus position, uh, competitively

Speaker #3: So, that's the first couple of things. When we think about that glide path, if the contract duration is stable, then what will happen is the CRPO growth will eventually normalize with revenue growth.

Ajei Gopal: Well, I mean, look, I think that the conversations I've had with customers, I think is most reflective of the relationship that we have with our customers. It's been. The conversations I've had have been incredibly positive. And I think I shared this one example of a story with one of my customers, at our last call in December. But I was in a meeting with a large GC in Manhattan, and one of the senior executives who wasn't in the meeting and who had recently been promoted, he walked back into the meeting. He walked into the meeting, and he said, "Listen, I wanted to take this opportunity to meet with you because we started working with Procore over a decade ago.

Adam Borg: Well, I mean, look, I think that the conversations I've had with customers, I think is most reflective of the relationship that we have with our customers. It's been. The conversations I've had have been incredibly positive. And I think I shared this one example of a story with one of my customers, at our last call in December. But I was in a meeting with a large GC in Manhattan, and one of the senior executives who wasn't in the meeting and who had recently been promoted, he walked back into the meeting. He walked into the meeting, and he said, "Listen, I wanted to take this opportunity to meet with you because we started working with Procore over a decade ago.

Speaker #3: And if it stays stable throughout fiscal '26, that will likely occur toward the latter part of the year. So, that's what you can expect in terms of timing.

Speaker #3: But the last thing that I will say is, remember, a lengthening contract duration is actually a reflection of the confidence that our customers continue to have in extending their relationship and partnership with Procore.

Speaker #3: And that's a positive very positive outcome as we continue to see.

Speaker #4: Very helpful. Thanks, guys.

Saket Kalia: Very helpful. Thanks, guys.

Speaker #5: Thank you. The next question comes from Adam Borek with Stifel. You may proceed.

Operator: Thank you. The next question comes from Adam Borek with Stifel. You may proceed.

Well, I mean, look, I I think that, um, the the, the the conversations I've had with customers, um, I, I think is most reflective of the relationship that we have with our customers. Uh, it. It's been the conversations. I've had have been incredibly positive, uh, and I think I shared this 1, uh, example. Uh, I think of a story with 1 of my customers, um, at our last call in December. Uh but I was in a meeting in a with a large GC in Manhattan uh and 1 of the senior Executives wasn't in the meeting and it was recently been promoted. He walked back into the meeting. He walked into the meeting. And he said, listen, I wanted to take this opportunity to meet with you because we started working with procore over a decade ago, we made a bet on procore. It was a very big big bet.

And procore came through and you've really helped Drive our industry forward and drive our business forward.

Speaker #6: Awesome. Thanks so much for taking the question and great to speak with you, Ajay. Maybe just going back to the script for a minute, you talked about a nice win back.

And and and that's sort of an example of the kind of conversations uh, that I'm having with customers.

Ajei Gopal: We made a bet on Procore, and it was a very big bet, and Procore came through, and you've really helped drive our industry forward and drive our business forward." And that's sort of an example of the kind of conversations that I'm having with customers. So it is really. Those conversations I think make me feel really excited about the depth of the customer relationships. I see lots of opportunities. I'm incredibly optimistic about our technology, about our platform, especially of course, in the work that we're doing with AI. That comes up oftentimes in conversations with customers.

Adam Borg: We made a bet on Procore, and it was a very big bet, and Procore came through, and you've really helped drive our industry forward and drive our business forward." And that's sort of an example of the kind of conversations that I'm having with customers. So it is really. Those conversations I think make me feel really excited about the depth of the customer relationships. I see lots of opportunities. I'm incredibly optimistic about our technology, about our platform, especially of course, in the work that we're doing with AI. That comes up oftentimes in conversations with customers.

Speaker #6: And so, now that you've been in the seat, I'd love to hear more about maybe what surprised you, either to the upside or even the downside, just on the competitive landscape, and, importantly, Procore's position competitively.

So it it is really um those those conversations. Um I think uh make me feel um, really excited about the depth of the customer relationships.

Speaker #3: Well, I mean, look, I think that the conversations I've had with customers, I think, is most reflective of the relationship that we have with our customers.

Ajei Gopal: Well, I mean, look, I think that the conversations I've had with customers, I think is most reflective of the relationship that we have with our customers. It's been the conversations I've had have been incredibly positive. And I think I shared this one example of a story with one of my customers at our last call in December. But I was in a meeting with a large GC in Manhattan, and one of the senior executives who wasn't in the meeting and who had recently been promoted, he walked back into the meeting, he walked into the meeting and he said, "Listen, I wanted to take this opportunity to meet, to meet with you because we started working with Procore over a decade ago.

Speaker #3: It has been the conversations I've had have been incredibly positive. And I think I shared this one example I think of a story with one of my customers at our last call in December.

Ajei Gopal: And I'm looking forward, as we continue here to maintaining traction with our stakeholders, and of course, continuing to build with build up in owners and subs as well as international. It is really quite an exceptional company in terms of the capabilities and the customer relationships. And from a relationship perspective, you see that being reflected in the way in which we're able to interact with customers.

Adam Borg: And I'm looking forward, as we continue here to maintaining traction with our stakeholders, and of course, continuing to build with build up in owners and subs as well as international. It is really quite an exceptional company in terms of the capabilities and the customer relationships. And from a relationship perspective, you see that being reflected in the way in which we're able to interact with customers.

Speaker #3: But I was in a meeting with a large GC in Manhattan, and one of the senior executives wasn't in the meeting and had recently been promoted.

Speaker #3: He walked back into the meeting. He walked into the meeting and he said, "Listen, I wanted to take this opportunity to meet with you.

I, I see lots of opportunities. Uh, I'm incredibly, uh, optimistic about our technology, uh, about a platform, uh, especially of course, in the work that we're doing with AI that comes up, oftentimes in conversations, with customers, uh, and I'm looking forward. Um, as we move as we, as we continue here, to maintaining traction with our, with our, with our stakeholders, and, of course, continue to build with, um, with build up in owners and Subs, as well as International. It is really quite an exceptional company in terms of the capabilities and the customer relationships. Uh, and from a, from a relationship perspective, you see that being reflected in the way in which we're able to interact with customers.

Speaker #3: Because we started working with Procore over a decade ago, we made a bet on Procore, and it was a very big bet. And Procore came through, and you've really helped drive our industry forward and drive our business forward. And that's sort of an example of the kind of conversations that I'm having with customers.

Ajei Gopal: We made a bet on Procore, and it was a very big bet, and Procore came through, and you've really helped drive our industry forward and drive our business forward." And that's sort of an example of the kind of conversations that I'm having with customers. So it is really those conversations I think make me feel really excited about the depth of the customer relationships. I see lots of opportunities. I'm incredibly optimistic about our technology, about our platform, especially of course, in the work that we're doing with AI. That comes up oftentimes in conversations with customers.

Howard Fu: Hey, Adam, if I just may, this is Howard.

Adam Borg: That's great.

Howard Fu: I just want to your question regarding competitive. We still continue to see very strong competitive win rates, similar to what we disclosed back in 2024. I think what you're seeing in the two examples that were in the prepared remarks, one was actually a displacement of an incumbent, and the other one was a win back. I think those are emblematic of our continued strength in terms of our win rates, and we still held a very strong position versus our competitors out there.

Speaker #3: So, it is really those conversations, I think, that make me feel really excited about the depth of the customer relationships. I see lots of opportunities.

Strong competitive Win race uh, similar to what we disclosed back in 2024. Uh and I think what you're seeing in the 2 examples that were in the prepared remarks, 1 was actually a displacement of an incumbent and the other 1 was a win back. I think those are emblematic of of our continued strength in terms of our win rates uh and we still held a very strong position versus our competitors out there.

Speaker #3: I'm incredibly optimistic about our technology, about our platform, especially, of course, in the work that we're doing with AI that comes up oftentimes in conversations with customers.

Ajei Gopal: And I'm looking forward, as we continue here to maintaining traction with our stakeholders, and of course, continuing to build up in owners and subs, as well as international. It is really quite an exceptional company in terms of the capabilities and the customer relationships. And from a relationship perspective, you see that being reflected in the way in which we're able to interact with customers.

Speaker #3: And I'm looking forward as we move as we continue here to maintaining traction with our stakeholders and, of course, continuing to build with build up in owners and subs as well as international.

Adam Borg: That's great to hear. And maybe just as a quick follow-up, you know, to Ajei's point about international, and great to see the continued, you know, go-to-market changes taking hold. So as you think about kind of these go-to-market changes continuing, and Ajei, now that you've had a little bit more time in the seat, as you think about the international footprint, what kind of gets you most excited about that opportunity? And any thoughts on how a channel could help kind of build the feet on the street, so to speak, in coming years? Thanks so much.

That that's great to hear. And maybe just as a quick follow-up. You know, to AJ's point about International and great to see the continued, you know, go to market changes, taking hold. So, if you think about kind of these go to market, changes continuing and, and AJ, now that you've had a little bit more time in the seat, as you think about the international footprint, what kind of gets you most excited about that opportunity and any thoughts on how a channel could help kind of build the feet on the street so to speak uh in coming years, thanks so much.

Speaker #3: It is really quite an exceptional company in terms of the capabilities and the customer relationships. And from a relationship perspective, you see that being reflected in the way in which we're able to interact with customers.

Speaker #7: Hey, Adam, if I just may, this is Howard. I just want to hear a question regarding competitive. We still continue to see very strong competitive win rates similar to what we disclosed back in 2024.

Howard Fu: Hey, Adam, if I just may, this is Howard. I just want to... Your question regarding competitive. We still continue to see very strong competitive win rates, similar to what we disclosed back in 2024. I think what you're seeing in the two examples that were in the prepared remarks, one was actually a displacement of an incumbent, and the other one was a win-back. I think those are emblematic of our continued strength in terms of our win rates, and we still held a very strong position versus our competitors out there.

Ajei Gopal: Yeah, I mean, I think obviously, I've been in seat for about a quarter, but everything that you point to in terms of channel, in terms of international, all of these things are opportunities that we are continuing to look at and evaluate from my perspective. You know, my experience obviously has been with businesses which have had channel, with significant channel presence, and that's obviously an opportunity for us as well as significant international presence. So that's something that I continue to look at as we look at future evolution of our business.

Adam Borg: Yeah, I mean, I think obviously, I've been in seat for about a quarter, but everything that you point to in terms of channel, in terms of international, all of these things are opportunities that we are continuing to look at and evaluate from my perspective. You know, my experience obviously has been with businesses which have had channel, with significant channel presence, and that's obviously an opportunity for us as well as significant international presence. So that's something that I continue to look at as we look at future evolution of our business.

Speaker #7: And I think what you're seeing in the two examples that were in the prepared remarks: one was actually a displacement of an incumbent, and the other one was a win-back.

Yeah, I mean, I think obviously, I've been in in seat for about a quarter, uh, but everything that you point to, in terms of channel, uh, in terms of international, all of these things are opportunities that that we are, uh, continuing to look at and evaluate from my perspective. Uh, there, you know, my experience obviously has been with businesses, which have had Channel with significant channel, uh, presence. Uh, and that's obviously an opportunity for us, as well as significant International presence. So, that's something that I continue to look at. As we, as we look at Future, uh, Evolution above business.

Speaker #7: I think those are emblematic of our continued strength in terms of our win rates, and we still held a very strong position versus our competitors out there.

Speaker #6: That's great to hear. And maybe just as a quick follow-up to Ajay's point about international and great to see the continued go-to-market changes taking hold.

Howard Fu: Hey, Adam, this is Howard again. You know, I'll just, I'll just tell you, we, we would have liked to been further along on the international side in terms of top line. International is still facing the same types of macroeconomic challenges that is impacting the progress there. But having said that, the model that we put in place, we still believe is the absolute right model. We are seeing the good results internationally as well as domestically in terms of that model being put in place. With respect to folks like the technical specialists, and we continue to see progress. We believe in the opportunities. We have product market fit, and we continue to build towards more product market fit. So longer term is, it is still an absolutely an opportunity for us. And so we're excited about it.

Speaker #6: So, as you think about kind of these go-to-market changes continuing and Ajay, now that you've had a little bit more time in the seat, as you think about the international footprint, what kind of gets you most excited about that opportunity and any thoughts on how a channel could help kind of build the feet on the street, so to speak, in coming years?

Speaker #6: Thanks so much.

Speaker #3: Yeah, I mean, I think obviously I’ve been in seat for about a quarter. But everything that you point to in terms of channel, in terms of international—all of these things are opportunities that we are continuing to look at and evaluate from my perspective.

Ajei Gopal: Yeah, I mean, I think obviously, I've been in seat for about a quarter, but everything that you point to in terms of channel, in terms of international, all of these things are opportunities that we are continuing to look at and evaluate from my perspective. You know, my experience obviously has been with businesses which have had channel with significant channel presence, and that's obviously an opportunity for us as well, a significant international presence. So that's something that I continue to look at as we look at future evolution of our business.

Hey, hey Adam. This is Howard again, you know? Um I'll just I'll just tell you we we would have liked to have been further along on the international side in terms of Topline, uh, International is still facing the same types of macroeconomic challenges that is impacting uh, the the progress there. But having said that the model that we put in place, we still believe is the absolute right model. We are seeing a good results internationally as well as domestically in terms of that model. Being put in place, with respect to folks like the technical Specialists. And we continue to see progress, we believe in the opportunities, we have product Market, fit, and continue to build towards more product Market fit. So longer term is it is still an absolutely, an opportunity, uh, for us. Uh, and so we're excited about it. Uh, we we would like to be further along. It is something that we think over the long term, we'll still continue to contribute to our growth.

Really appreciate the color gentlemen.

Speaker #3: There, in my experience, obviously, has been with businesses which have had significant channel presence. And that's obviously an opportunity for us, as well as significant international presence.

Thank you.

Howard Fu: We would like to be further along. It is something that we think, over the long term, will still continue to contribute to our growth.

The Following comes from DJ, hind with canaccord, you may proceed.

Adam Borg: Really appreciate the call, gentlemen.

Speaker #3: So, that's something that I continue to look at as we look at future evolution of our business.

Operator: Thank you. The follow-on comes from DJ Hines with Canaccord. You may proceed.

Howard Fu: Hey, hey, Adam, this is Howard again. You know, I'll just tell you, we would have liked to been further along on the international side in terms of top line. International is still facing the same types of macroeconomic challenges that is impacting the progress there. But having said that, the model that we put in place, we still believe is the absolute right model. We are seeing the good results internationally as well as domestically in terms of that model being put in place. With respect to folks like the technical specialists, and we continue to see progress. We believe in the opportunities. We have product market fit, and we continue to build towards more product market fit. So longer term is, it is still an absolutely an opportunity for us. And so we're excited about it.

Speaker #7: Hey, Adam, this is Howard again. I'll just tell you, we would have liked to have been further along on the international side in terms of top line.

DJ Hynes: Hey, thank you, guys, and congrats on the nice quarter. I'm going to go reverse order and start with you, Howard. I'm curious what you saw in terms of trends of volume commitments during the Q4 renewal cycle, and maybe you could compare that to kind of how it was a year ago. And I don't know if, as part of that, you know, what kind of price you're taking on like-for-like renewals. Any color there would be helpful.

Speaker #7: International is still facing the same types of macroeconomic challenges that is impacting the progress there. But having said that, the model that we put in place we still believe is the absolute right model.

Hey, thank you guys and congrats on the nice quarter. Uh, I'm going to go reverse order and start with you Howard. Um, I'm curious to what you saw in terms of trends of volume commitments during the Q4 renewal cycle. And maybe you can compare that to kind of how it was a year ago. And I don't know if it's part of that, you know, what kind of price you're taking on, like, for like, renewals any color, there would be helpful.

Speaker #7: We are seeing good results internationally as well as domestically in terms of that model being put in place, with respect to folks like the technical specialists.

Howard Fu: Yeah, in general, we're not going to disclose a specific number, but last quarter, we talked about ACV commitments on the platform crossing $1 trillion, and that continues to grow in Q4. So we continue to see strength there, and that also exemplifies and is evidence that we continue to gain share, as well, and so it's grown off of that $1 trillion mark.

Speaker #7: And we continue to see progress. We believe in the opportunities. We have product-market fit and continue to build towards more product-market fit. So, longer term, it is still absolutely an opportunity for us.

Howard Fu: We believe in the opportunities. We have product market fit, and we continue to build towards more product market fit. So longer term is, it is still an absolutely an opportunity for us. And so we're excited about it. We would like to be further along. It is something that we think, over the long term, will still continue to contribute to our growth.

Yeah, in general, we're not going to disclose a specific number. But last quarter, we talked about ACB commitments on the platform crossing a trillion dollars and that continues to grow in Q4. So we continue to see strength there and that also exemplifies and is evident that we continue to gain share um as well and so it's grown off of that trillion dollar mark.

Okay. Uh and then AJ maybe we could go a little bit deeper on on data grid. I'm, I'm curious.

Speaker #7: And so, we're excited about it. We would like to be further along. It is something that we think over the long term will still continue to contribute to our growth.

Howard Fu: We would like to be further along. It is something that we think, over the long term, will still continue to contribute to our growth.

DJ Hynes: Okay. And then, Ajei, maybe you could go a little bit deeper on, on Datagrid. I'm, I'm curious, where the data that's not inside of Procore resides, where Datagrid will help you? Is it in, is it in other construction point solutions? Is it in other systems of record? Like, what, what is that data that needs to come into the system that will help kind of power your AI efforts?

Speaker #4: Really appreciate the color, gentlemen.

Adam Borg: Really appreciate the call, gentlemen.

Where are the data that knot inside of procore resides, where data grid will help you? Is it a, is it in other construction? Point Solutions is it in other systems of record? Like, what, what is that data that needs to come into the system that will help kind of power, your AI effort,

Speaker #5: Thank you. The following question comes from DJ Hines with Canaccord. You may proceed.

Operator: Thank you. The following comes from DJ Hines with Canaccord. You may proceed.

Speaker #6: Hey, thank you, guys. And congrats on the nice quarter. I'm going to go reverse order and start with you, Howard. I'm curious what you saw in terms of trends of volume commitments during the Q4 renewal cycle.

DJ Hynes: Hey, thank you, guys, and congrats on the nice quarter. I'm going to go reverse order and start with you, Howard. I'm curious what you saw in terms of trends of volume commitments during the Q4 renewal cycle, and maybe you could compare that to kind of how it was a year ago. And I don't know if as part of that, you know, what kind of price you're taking on like-for-like renewals. Any color there would be helpful.

Ajei Gopal: ... Well, I think, I think it's important to understand then what our architectural construct is as we put together the whole solution. As you-- as, as we announced at Groundbreak, our strategy as the, as the baseline is to have essentially well-thought-through APIs, which are appropriate for, for agentic workflows. To have a platform for agentic applications and AP-- and, and agentic AI solutions, and then to build out AI agents themselves. So it's a three-layered structure, APIs, a platform, inc-- and the platform includes the ability to do things like advanced reasoning, multimodal reasoning, that's construction aware, as well as, of course, to be able to monetize activity. So there's sort of that those three layers.

DJ Hynes: ... Well, I think, I think it's important to understand then what our architectural construct is as we put together the whole solution. As you-- as, as we announced at Groundbreak, our strategy as the, as the baseline is to have essentially well-thought-through APIs, which are appropriate for, for agentic workflows. To have a platform for agentic applications and AP-- and, and agentic AI solutions, and then to build out AI agents themselves. So it's a three-layered structure, APIs, a platform, inc-- and the platform includes the ability to do things like advanced reasoning, multimodal reasoning, that's construction aware, as well as, of course, to be able to monetize activity. So there's sort of that those three layers.

Speaker #6: And maybe you could compare that to kind of how it was a year ago and I don't know if as part of that, what kind of price you're taking on like-for-like renewals.

Speaker #6: Any color there would be helpful.

Speaker #7: Yeah, in general, we're not going to disclose a specific number, but last quarter we talked about ACV commitments on the platform crossing a trillion dollars.

Howard Fu: Yeah. In general, we're not going to disclose a specific number, but last quarter, we talked about ACV commitments on the platform crossing $1 trillion, and that continues to grow in Q4. So we continue to see strength there, and that also exemplifies and is evidence that we continue to gain share, as well, and so it's grown off of that $1 trillion mark.

Speaker #7: And that continues to grow in Q4, so we continue to see strength there. And that also exemplifies, and is evidence, that we continue to gain share as well.

Well, I think, I think it's important to understand, then, uh, what are, um, architectural, uh, Constructors as we put together the whole solution. Um, as you as, as we announced at groundbreak, uh, our strategy as the, at the Baseline is to have, um, essentially well thought through apis, which are appropriate for, uh, for agentic workflows to have a platform for agentic, uh, applications and AP, and and uh, uh, agentic AI Solutions. And then to build out, uh, AI agents themselves. So it's a 3-layer, uh, structure API a platform in, and the platform includes the ability to do things.

Speaker #7: And so, it's grown off of that trillion-dollar mark.

Speaker #6: Okay. And then, Ajay, maybe we could go a little bit deeper on DataGrid. I'm curious where the data that's not inside of Procore resides where DataGrid will help you.

DJ Hynes: Okay. And then Ajei, maybe we could go a little bit deeper on Datagrid. I'm curious, where the data that's not inside of Procore resides, where Datagrid will help you? Is it in other construction point solutions? Is it in other systems of record? Like, what is that data that needs to come into the system that will help kind of power your AI efforts?

Things like Advanced reasoning, multimodal reasoning, that's construction aware uh, as well as, as well as of course, uh, to be able to monetize uh activity. So there's there's, there's the sort of that's that those 3 layers.

Speaker #6: Is it in other construction point solutions? Is it in other systems of record? What is that data that needs to come into the system that will help kind of power your AI efforts?

Ajei Gopal: We announced our strategy, and obviously, we were building towards that. We saw with Datagrid the opportunity to be able to accelerate that growth because they had focused a lot on areas that we hadn't focused, and we had a complementary way of approaching the market. Now, they have, between us, we have connectors into a, into a large number, I think, of third-party systems, including ERP systems and others, which allow us to collect information and bring it together. What's really important as far as data is concerned, when you think about the volume of our data, we've got something like 3 million, 3 million active users in our system.

DJ Hynes: We announced our strategy, and obviously, we were building towards that. We saw with Datagrid the opportunity to be able to accelerate that growth because they had focused a lot on areas that we hadn't focused, and we had a complementary way of approaching the market. Now, they have, between us, we have connectors into a, into a large number, I think, of third-party systems, including ERP systems and others, which allow us to collect information and bring it together. What's really important as far as data is concerned, when you think about the volume of our data, we've got something like 3 million, 3 million active users in our system.

Speaker #3: Well, I think it's important to understand, Ben, what are architectural constructives as we put together the whole solution. As we announced at Groundbreak, our strategy as the baseline is to have essentially well-thought-through APIs, which are appropriate for agentic workflows.

Ajei Gopal: Well, I think, I think it's important to understand then what our architectural construct is, as we put together the whole solution. As we announced at Groundbreak, our strategy at the baseline is to have essentially well-thought-through APIs, which are appropriate for agentic workflows. To have a platform for agentic applications and APIs and agentic AI solutions, and then to build out AI agents themselves. So it's a three-layered structure, APIs, a platform inc. And the platform includes the ability to do things like advanced reasoning, multimodal reasoning, that's construction aware, as well as, as well as, of course, to be able to monetize activity. So there's, that's sort of that, that those three layers.

Speaker #3: To have a platform for agentic applications and agentic AI solutions. And then to build out AI agents themselves. So, it's a three-layer structure APIs, a platform, and the platform includes the ability to do things like advanced reasoning, multimodal reasoning that's construction aware, as well as, of course, to be able to monetize activity.

Ajei Gopal: We've got all kinds of information in our systems, including what's really important, things like annotations and changes, which are sort of unique data elements, as well as the dynamic view of how that data has changed. So there's a lot of resources that we've been in a position to bring to bear in terms of the information that's within Procore, the ability to be able to orchestrate activities, and how Datagrid has essentially accelerated the strategy that we had in place, bringing some really interesting reasoning capabilities, as well as some interesting connectivity capabilities that they had built into the overall Procore AI story.

DJ Hynes: We've got all kinds of information in our systems, including what's really important, things like annotations and changes, which are sort of unique data elements, as well as the dynamic view of how that data has changed. So there's a lot of resources that we've been in a position to bring to bear in terms of the information that's within Procore, the ability to be able to orchestrate activities, and how Datagrid has essentially accelerated the strategy that we had in place, bringing some really interesting reasoning capabilities, as well as some interesting connectivity capabilities that they had built into the overall Procore AI story.

Speaker #3: So, there's sort of that those three layers. We announced our strategy and obviously, we were building towards that. We saw with DataGrid the opportunity to be able to accelerate that growth because they had focused a lot on areas that we hadn't focused.

Ajei Gopal: We announced our strategy, and obviously, we were building towards that. We saw with Datagrid the opportunity to be able to accelerate that growth because they had focused a lot on areas that we hadn't focused, and we had a complementary way of approaching the market. Now, they have, between us, we have connectors into a large number, I think, of third-party systems, including ERP systems and others, which allow us to collect information and bring it together. What's really important as far as data is concerned, when you think about the volume of our data, we've got something like 3 million, 3 million active users in our system.

Market. Now they have between us, we have connectors into a into a large number, I think of third-party systems, including Erp systems and others, which allow us to collect information, uh, and bring it together. What's really important as far as data is concerned? When you think about the volume of our data, we've got something like 3 million, 3 million active users in our system. Uh, we've got all kinds of information, uh, in our systems, including what's really important things like, annotations and changes which are sort of unique data elements as well as the the dynamic view of how that data has changed. So there's there's a lot of resources that we've been in the position to bring to bear in terms of the information that's within procore. The ability to be able to orchestrate activities and how data grid is essentially accelerated. The strategy that we had in place bringing some really interesting reasoning capabilities, as well. As some interesting connectivity capabilities that they had built, uh, into the overall procore AI story.

Got it. Okay. Thank you guys.

Thank you, DJ.

Thank you.

Speaker #3: And we had a complementary way of approaching the market. Now, they have between us, we have connectors into a large number, I think, of third-party systems, including ERP systems and others, which allow us to collect information and bring it together.

DJ Hynes: Got it. Okay. Thank you, guys.

As a quick note, please limit yourself to 1 question only at moving forward. The next question comes from Matthew Martina with Goldman Sachs, please proceed.

Howard Fu: Thanks, Vijay.

Howard Fu: Thanks, DJ.

Operator: Thank you. As a quick note, please limit yourself to one question only. Moving forward, the next question comes from Matthew Martino with Goldman Sachs. Please proceed.

Speaker #3: What's really important as far as data is concerned, when you think about the volume of our data, we've got something like 3 million active users in our system.

Matt Martino: Yeah, hey, thanks for taking my questions, guys. Ajei, maybe sticking with the Procore AI for a moment. Like, can you elaborate on the specific monetization strategy for this? Should investors expect a new premium SKU, some sort of platform-wide price uplift or consumption model tied to the ROI that you intend to generate for your customers here? And if I could just slip in a quick one for you, Howard. You know, what looks like headcount grew about 5%, total for the year, even with the go-to-market changes. Looking forward, you know, Procore's guiding to around 400 basis points of margin expansion. Do you feel that the business is sufficiently resourced from a go-to-market perspective, especially if we were to see kind of a construction cycle turn over the next several quarters? Thank you both.

Matthew Martino: Yeah, hey, thanks for taking my questions, guys. Ajei, maybe sticking with the Procore AI for a moment. Like, can you elaborate on the specific monetization strategy for this? Should investors expect a new premium SKU, some sort of platform-wide price uplift or consumption model tied to the ROI that you intend to generate for your customers here? And if I could just slip in a quick one for you, Howard. You know, what looks like headcount grew about 5%, total for the year, even with the go-to-market changes. Looking forward, you know, Procore's guiding to around 400 basis points of margin expansion. Do you feel that the business is sufficiently resourced from a go-to-market perspective, especially if we were to see kind of a construction cycle turn over the next several quarters? Thank you both.

Speaker #3: We've got all kinds of information in our systems, including what's really important things like annotations and changes, which are sort of unique data elements, as well as the dynamic view of how that data has changed.

Speaker #3: So, there's a lot of resources that we have been in a position to bring to bear in terms of the information that's within Procore, the ability to be able to orchestrate activities, and how DataGrid has essentially accelerated the strategy that we had in place, bringing some really interesting reasoning capabilities, as well as some interesting connectivity capabilities that they had built into the overall Procore AI story.

Yeah. Hey thanks for taking my questions guys. Um AJ maybe sticking with the procore AI for a moment like can you elaborate on the specific monetization strategy for this? You should investors expect a new premium. SKU some sort of platform wide price uplift or consumption model pi to the Roa Roi that you intend to uh generate for your customers here. And and if I could just slip in a quick 1 for for you Howard, um you know what what looks like headcount grew about 5%, uh total for the year, even with the go to market changes looking forward you know processing to around 400 basis points of margin expansion. Do you feel that the business is sufficiently resourced from a go to market perspective, especially if we were to see kind of the construction cycle, turn over the next several quarters. Thank you both.

Ken Wong: ... Got it. Okay. Thank you, guys.

Speaker #6: Got it. Okay. Thank you, guys.

DJ Hynes: Got it. Okay. Thank you, guys.

So, so let me just answer your question about monetization of AI and then I'll turn it over to you to Howard. Um, look as with any business, uh, and new business opportunities. The first thing you've got to do is to establish a compelling Roi.

Speaker #7: Thanks, DJ.

Howard Fu: Thanks, DJ.

Ajei Gopal: So, let me just answer your question about monetization of AI, and then I'll turn it over to you, to Howard. Look, as with any business and new business opportunity, the first thing you've got to do is to establish a compelling ROI. And we believe that we're doing that. We know that we're doing that. Our customers are seeing benefit and value from the technology, as I described in the example, where they're saving time and are able to do things that they wouldn't have otherwise been able to do, given the shortage of labor and given the limited amount of hours in the day that they have. So, the first thing you have to do is to make manifest that ROI.

Matthew Martino: So, let me just answer your question about monetization of AI, and then I'll turn it over to you, to Howard. Look, as with any business and new business opportunity, the first thing you've got to do is to establish a compelling ROI. And we believe that we're doing that. We know that we're doing that. Our customers are seeing benefit and value from the technology, as I described in the example, where they're saving time and are able to do things that they wouldn't have otherwise been able to do, given the shortage of labor and given the limited amount of hours in the day that they have. So, the first thing you have to do is to make manifest that ROI.

Operator: Thank you. As a quick note, please limit yourself to one question only. Moving forward, the next question comes from Matthew Martino with Goldman Sachs. Please proceed.

Speaker #5: Thank you. As a quick note, please limit yourself to one question only. Moving forward, the next question comes from Matthew Martinez with Goldman Sachs.

Speaker #5: Please proceed.

Speaker #8: Yeah, hey, thanks for taking my questions, guys. Ajay, maybe sticking with the Procore AI for a moment. Can you elaborate on the specific monetization strategy for this?

Matthew Martino: Yeah, hey, thanks for taking my questions, guys. Ajei, maybe sticking with the Procore AI for a moment, like, can you elaborate on the specific monetization strategy for this? Should investors expect a new premium SKU, some sort of platform-wide price uplift or consumption model tied to the ROI that you intend to generate for your customers here? And if I could just slip in a quick one for you, Howard. You know, what looks like headcount grew about 5%, total for the year, even with the go-to-market changes. Looking forward, you know, Procore's guiding to around 400 basis points of margin expansion. Do you feel that the business is sufficiently resourced from a go-to-market perspective, especially if we were to see kind of a construction cycle turn over the next several quarters? Thank you both.

Uh, and um, and we believe that we're doing that. We we know that we're doing that. We, our customers, our customers are seeing benefit and value from the technology as I described in the example where, where they're saving time and are able to do things that they wouldn't have. Otherwise been able to do given the shortage of Labor and given the limited amount of hours on the day that they have.

Speaker #8: Should investors expect a new premium SKU, some sort of platform-wide price uplift, or a consumption model tied to the ROI that you intend to generate for your customers here?

um and so, so the first thing you have to do is, is to make manifest that that Roi

Speaker #8: And if I could just flip in a quick one for you, Howard. What looks like headcount grew about 5% total for the year, even with the go-to-market changes.

Speaker #8: Looking forward, Procore's guiding to around 400 basis points of margin expansion. Do you feel that the business is sufficiently resourced from a go-to-market perspective, especially if we were to see kind of the construction cycle turn over the next several quarters?

Ajei Gopal: And obviously from our perspective, the labor cost element for that our customers are facing, that is one of the significant and most important line items for our customers. And having digital coworkers do the work, we think generates that significant ROI. And even if we can monetize a small fraction of that, we have a significant and incremental upside opportunity that we believe will drive upside to our business, at the same time that we support our customers. And we are likely to be including some of those AI offerings within upcoming bundles that are part of some new packaging. We're also likely to be including component-based, some consumption-based components. Now, this is obviously relatively new to the market, so we're likely to experiment, and we're likely to evolve our approach.

Matthew Martino: And obviously from our perspective, the labor cost element for that our customers are facing, that is one of the significant and most important line items for our customers. And having digital coworkers do the work, we think generates that significant ROI. And even if we can monetize a small fraction of that, we have a significant and incremental upside opportunity that we believe will drive upside to our business, at the same time that we support our customers. And we are likely to be including some of those AI offerings within upcoming bundles that are part of some new packaging. We're also likely to be including component-based, some consumption-based components. Now, this is obviously relatively new to the market, so we're likely to experiment, and we're likely to evolve our approach.

Speaker #8: Thank you both.

Speaker #3: So, let me just answer your question about monetization of AI, and then I'll turn it over to you, to Howard. Look, as with any business, and new business opportunities, the first thing you've got to do is to establish a compelling ROI.

Uh and and obviously from our perspective the labor cost element for that our customers are facing that is 1 of the significant and most important line items for our customers and having digital co-workers do the work. Uh we think generates that a significant Roi uh and you could even if we can monetize a small fraction of that, we have a significant and incremental upside opportunity that we believe will drive upside to our business. Uh at the same time that we support our customers.

Speaker #3: And we believe that we're doing that. We know that we're doing that. Our customers are seeing benefit and value from the technology, as I described in the example where they're saving time and are able to do things that they wouldn't have otherwise been able to do, given the shortage of labor and given the limited amount of hours in the day that they have.

And we are likely to be included, uh, some of those AI offerings, uh, within upcoming bundles, that are part of some new packaging. Uh, we also likely to be including component based, um, some consumption based components. Now, this is obviously relatively new to the market. Uh, so we're likely to experiment and we're likely to evolve our approach. Uh, but look, I'm excited about our path forward. Uh, I'm excited about our ability to monetize Ai and we'll sure we'll be sure to keep you posted as we proceed.

Hey Matt, this is Howard. Let me just uh answer your question around capacity and and leverage and so forth.

Speaker #3: And so, the first thing you have to do is to make manifest that ROI. And obviously, from our perspective, the labor cost element that our customers are facing is one of the significant and most important line items for our customers.

Ajei Gopal: But look, I'm excited about our path forward. I'm excited about our ability to monetize AI, and we'll be sure to keep you posted as we proceed.

Matthew Martino: But look, I'm excited about our path forward. I'm excited about our ability to monetize AI, and we'll be sure to keep you posted as we proceed.

Ajei Gopal: And obviously from our perspective, the labor cost element for that our customers are facing, that is one of the significant and most important line items for our customers. And having digital coworkers do the work, we think generates that significant ROI. And if we... Even if we can monetize a small fraction of that, we have a significant and incremental upside opportunity that we believe will drive upside to our business, at the same time that we support our customers. And we are likely to be including some of those AI offerings within upcoming bundles that are part of some new packaging. We're also likely to be including some component-based, some consumption-based components. Now, this is obviously relatively new to the market, so we're likely to experiment, and we're likely to evolve our approach.

Howard Fu: Hey, Matt, this is Howard. Let me just answer your question around capacity and leverage and so forth. So the first thing is, the short answer is yes, we have enough capacity. We have planned for enough capacity going into fiscal 26 to be able to sufficiently invest in the business. Let me go through a couple more details here. One is, remember what we talked about from the go-to-market perspective. Fiscal 25 was an investment year. We are going into fiscal 26 with largely the capacity that we already need on the go-to-market side, and then the focus is really on productivity increases.

So, the first thing is we the short answer is. Yes, we have enough capacity. We have planned for enough capacity going into fiscal, 26 to be able to sufficiently invest in the business. Let me go through a couple more details here. 1 is

Speaker #3: And having digital coworkers do the work, we think generates that a significant ROI. And even if we can monetize a small fraction of that, we have a significant and incremental upside opportunity that we believe will drive upside to our business at the same time that we support our customers.

Speaker #3: And we are likely to be including some of those AI offerings within upcoming bundles that are part of some new packaging. We're also likely to be including some component-based, consumption-based components.

Ajei Gopal: And we are likely to be including some of those AI offerings within upcoming bundles that are part of some new packaging. We're also likely to be including some component-based, some consumption-based components. Now, this is obviously relatively new to the market, so we're likely to experiment, and we're likely to evolve our approach. But look, I'm excited about our path forward. I'm excited about our ability to monetize AI, and we'll be sure to keep you posted as we proceed.

Howard Fu: So that's the first thing. With respect to the places where we are adding more, more resources and more headcount, it's largely focused on the R&D side of things, and those are largely going to be added in lower cost geos for the, for the most part. In addition to that, we continue to see leverage across all parts of the OpEx lines, as we did last year, as we're doing this year, as we will do continuing, going forward. Also keep in mind, although we are using internally AI, and that is having a benefit, a lot of those improvements that we have done last year and this year, is largely just getting better at the foundational, ways that we operate.

Speaker #3: Now, this is obviously relatively new to the market, so we're likely to experiment, and we're likely to evolve our approach. But look, I'm excited about our path forward.

Ajei Gopal: But look, I'm excited about our path forward. I'm excited about our ability to monetize AI, and we'll be sure to keep you posted as we proceed.

Speaker #3: I'm excited about our ability to monetize AI, and we'll be sure to keep you posted as we proceed.

Speaker #7: Hey, Matt, this is Howard. Let me just answer your question around capacity and leverage and so forth. So, the first thing is, the short answer is yes.

Howard Fu: Hey, Matt, this is Howard. Let me just answer your question around capacity and leverage and so forth. So the first thing is, the short answer is yes, we have enough capacity. We have planned for enough capacity going into fiscal 2026 to be able to sufficiently invest in the business. Let me go through a couple more details here. One is, remember what we talked about from the go-to-market perspective. Fiscal 2025 was an investment year. We are going into fiscal 2026 with largely the capacity that we already need on the go-to-market side, and then the focus is really on productivity increases. And so that's the first thing.

Having a benefit, a lot of those improvements that we have done last year and this year, um, is largely just getting better at the foundational ways that we operate. And as we think about leverage going forward in the resources that we need, the AI piece is actually going to be an additional tail, end to our ability to to find scale and leverage in the business going forward.

Speaker #7: We have enough capacity. We have planned for enough capacity going into fiscal 26 to be able to sufficiently invest in the business. Let me go through a couple more details here.

Howard Fu: As we think about leverage going forward and the resources that we need, the AI piece is actually going to be an additional tailwind to our ability to find scale and leverage in the business going forward.

Thank you. The next question comes from. Ken Wong with aim. You may proceed.

Speaker #7: One is remember what we talked about from the go-to-market perspective. Fiscal 25 was an investment year. We are going into fiscal 26 with largely the capacity that we already need on the go-to-market side and the focus is really on productivity increases.

Operator: Thank you. The next question comes from Ken Wong with Oppenheimer. You may proceed.

Speaker #7: And so, that's the first thing. With respect to the places where we are adding more resources and more headcount, it's largely focused on the R&D side of things.

Ken Wong: Fantastic. Howard, I wanted to ask about the guidance. You know, previously, you guys had this growth profit dynamic where it was, it was somewhat inversely correlated. Should we think about elevated margins coming at a lower growth rate, or is that no longer the case? And then just how any philosophical changes in terms of incremental conservatism as you guys embed some, some of some of the Ajei-isms that, that, you know, and some of his learnings over the coming quarters?

Howard Fu: With respect to the places where we are adding more resources and more headcount, it's largely focused on the R&D side of things, and those are largely going to be added in lower cost geos for the most part. And in addition to that, we continue to see leverage across all parts of the OpEx lines, as we did last year, as we're doing this year, as we will do continuing, going forward. And also keep in mind, although we are using internally AI, and that is having a benefit, a lot of those improvements that we have done last year and this year, is largely just getting better at the foundational ways that we operate.

Speaker #7: And those are largely going to be added in lower-cost geos for the most part. And in addition to that, we continue to see leverage across all parts of the OPEX lines as we did last year, as we're doing this year, and as we will continue to do going forward.

It's fantastic. Uh, Howard. I wanted to ask about the guidance, you know, previously you guys had this growth profit Dynamic where it was. It was somewhat inversely correlated, you know, should we think about elevated margins? Uh, coming at a lower growth rate or is that no longer the case and then just how do any philosophical changes in terms of incremental conservatism as you guys embed some some of uh some of the aissms that that you know, and some of his learnings over the coming quarters

Howard Fu: And also keep in mind, although we are using internally AI, and that is having a benefit, a lot of those improvements that we have done last year and this year, is largely just getting better at the foundational ways that we operate. As we think about leverage going forward and the resources that we need, the AI piece is actually going to be an additional tailwind to our ability to find scale and leverage in the business going forward.

Speaker #7: And also, keep in mind, although we are using AI internally, and that is having a benefit, a lot of those improvements that we have made last year and this year are largely just getting better at the foundational ways that we operate.

Howard Fu: Hey, Ken. So the first thing is, there is no change to our guidance philosophy. You can expect the same type of cadence that we did in fiscal 25, for what we're going to do in fiscal 26. The first question I want to make sure I address, though, you know, we've talked about this before. It's not really a trade-off between top line versus bottom line. What we optimize for is still our North Star metric around free cash flow per share, and that's what we're going to optimize for, both the numerator and the denominator of that equation, so that we provide the best return to our shareholders.

Speaker #7: And as we think about leverage going forward and the resources that we need, the AI piece is actually going to be an additional tailwind to our ability to find scale and leverage in the business going forward.

Hey Ken. Uh, so the first thing is, there is no change to our guidance philosophy. You can expect the same type of cadence that we did in fiscal 25 uh for where we're going to do in fiscal uh 26. Um the first question I want to make sure I address though, you know, we've talked about this before, it's not really a trade-off between Topline versus bottom line. What we optimize for is still our Northstar metric around

Free cash flow per share and that's what we're going to optimize for both the numerator and the denominator of that equation. So that we provide the best return to our shareholders.

Speaker #5: Thank you. The next question comes from Ken Wong with Oppenheimer. You may proceed.

Operator: Thank you. The next question comes from Ken Wong with Oppenheimer. You may proceed.

Perfect, thank you so much.

Thank you.

Ken Wong: Fantastic. Howard, I wanted to ask about the guidance. You know, previously you guys had this growth profit dynamic where it was somewhat inversely correlated. Should we think about elevated margins coming at a lower growth rate, or is that no longer the case? And then just how any philosophical changes in terms of incremental conservatism as you guys embed some of the Ajei-isms that you know, and some of his learnings over the coming quarters?

Speaker #6: Fantastic. Howard, I wanted to ask about the guidance. Previously, you guys had this growth profit dynamic where it was somewhat inversely correlated. Should we think about elevated margins coming at a lower growth rate, or is that no longer the case?

The next question comes from Dillon, Becker with William Blair. You may proceed?

Ken Wong: Perfect. Thank you so much.

Howard Fu: Sure.

Operator: Thank you. The next question comes from Dylan Becker with William Blair. You may proceed.

Speaker #6: And then just any philosophical changes in terms of incremental conservatism as you guys embed some of the Ajayisms that and some of his learnings over the coming quarters?

Dylan Becker: Hey, gentlemen, appreciate it. Maybe, Ajei, for you, kind of stepping back, if we double-click on the owner segment, maybe it ties into kind of the enterprise momentum and some of the larger players being more insulated here. But could you give us a sense on what you're hearing from those owners as it pertains to kind of CapEx deployments in 2026? Maybe the network dynamics of their opportunity to kind of mandate Procore adoption throughout the platform, and maybe, if anything, where FedRAMP, and I know you guys have a good data center business as well here, but what that can kind of unlock incrementally as more dollars are allocated to that channel. Thank you.

Speaker #7: Hey, Ken. So, the first thing is there is no change to our guidance philosophy. You can expect the same type of cadence that we did in fiscal 25 for what we're going to do in fiscal 26.

Hey gentlemen, I appreciate it. Uh maybe AJ for you kind of stepping back um if we if we double click on the owner segment uh maybe it ties into kind of the Enterprise momentum and some of the larger players being more insulated here. But could you give us a sense on on what you're hearing from from those owners as it pertains to kind of capex deployments in 2026? Maybe the network dynamics of their opportunity to kind of mandate for for at toxin throughout the platform and and maybe if anything where fed ramp and I know you guys have a good Data Center business as well here. Uh but what that can kind of unlocking for mentally is more dollars are allocated to that channel. Thank you.

Speaker #7: The first question I want to make sure I address, though—we've talked about this before. It's not really a trade-off between top line versus bottom line.

Speaker #7: What we optimize for is still our North Star metric around free cash flow per share, and that's what we're going to optimize for—both the numerator and the denominator of that equation—so that we provide the best return to our shareholders.

Ajei Gopal: From an owner's perspective, you know, one of the nice things about the owners segment, as I said, is that the owners represent customers from multiple verticals. And obviously, I talked about data center deployments, where there is a massive amount of increase in expenses as people start to build out in data centers. So you see incremental spending in certain areas, but because it's owners, essentially, any enterprise customer is an owner, you see the natural fluctuations of those end markets being reflected in the way owners think about their own real estate investments. So, but our value proposition to owners goes beyond the value proposition that we have to general contractors.

Dylan Becker: From an owner's perspective, you know, one of the nice things about the owners segment, as I said, is that the owners represent customers from multiple verticals. And obviously, I talked about data center deployments, where there is a massive amount of increase in expenses as people start to build out in data centers. So you see incremental spending in certain areas, but because it's owners, essentially, any enterprise customer is an owner, you see the natural fluctuations of those end markets being reflected in the way owners think about their own real estate investments. So, but our value proposition to owners goes beyond the value proposition that we have to general contractors.

Speaker #6: Perfect. Thank you so much.

Ken Wong: Perfect. Thank you so much.

So, so from a, from an owner's perspective, um, you know, 1 of the nice things about the owner's segments, as I said, is that the owner's represent a customers from multiple verticals, uh, and, uh, obviously I talked about, um, data center deployments, where there is a massive amount of increased, uh, and expenses, uh, as people start to build out in data centers. So you see incremental spending in certain areas, uh, but because its owners essentially any Enterprise customers and owner, you see the, you see the natural

Speaker #7: Sure.

Howard Fu: Sure.

Speaker #5: Thank you. The next question comes from Dylan Becker with William Blair. You may proceed.

Operator: Thank you. The next question comes from Dylan Becker with William Blair. You may proceed.

Uh, fluctuations of those end markets being reflected in the way owners, think about their own, uh, real estate Investments. So um,

Speaker #6: Hey, gentlemen. I appreciate it. Maybe, Ajay, for you, kind of stepping back—if we double-click on the owner segment, maybe it ties into the enterprise momentum and some of the larger players being more insulated here.

Dylan Becker: Hey, gentlemen, I appreciate it. Maybe, Ajei, for you, kind of stepping back, if we, if we double-click on the owner segment, maybe it ties into kind of the enterprise momentum and some of the larger players being more insulated here. But could you give us a sense on what you're hearing from those owners as it pertains to kind of CapEx deployment in 2026? Maybe the network dynamics of their opportunity to kind of mandate Procore adoption throughout the platform, and maybe, if anything, where FedRAMP, and I know you guys have a good data center business as well here, but what that can kind of unlock incrementally as more dollars are allocated to that channel. Thank you.

Speaker #6: But could you give us a sense on what you're hearing from those owners as it pertains to kind of CAPEX deployments in 2026, maybe the network dynamics of their opportunity to kind of mandate Procore for its option throughout the platform, and maybe, if anything, where FedRAMP?

Ajei Gopal: As I said, you know, our value proposition to owners is around portfolio management. It's about being able to manage the complexity of all of the activity that they have going, potentially working across multiple GCs and multiple locations. You're absolutely right. There is the network effect that I talked about earlier is a really important aspect of our business. I mentioned that in the context of AI, but it's certainly very important in the context, in just the broader context of owners mandating a particular solution, resulting in the GCs taking advantage of that solution, resulting in the subs taking advantage of that solution. That we've been seeing essentially since we began as a company.

Dylan Becker: As I said, you know, our value proposition to owners is around portfolio management. It's about being able to manage the complexity of all of the activity that they have going, potentially working across multiple GCs and multiple locations. You're absolutely right. There is the network effect that I talked about earlier is a really important aspect of our business. I mentioned that in the context of AI, but it's certainly very important in the context, in just the broader context of owners mandating a particular solution, resulting in the GCs taking advantage of that solution, resulting in the subs taking advantage of that solution. That we've been seeing essentially since we began as a company.

Speaker #6: And I know you guys have a good data center business as well here. But what that can kind of unlock incrementally as more dollars are allocated to that channel.

Speaker #6: Thank you.

Speaker #3: So, from an owner's perspective, one of the nice things about the owners' segment, as I said, is that the owners represent customers from multiple verticals.

Speaker #3: And obviously, I talked about data center deployments, where there is a massive amount of increase in expenses as people start to build out in data centers.

Speaker #3: So you see incremental spending in certain areas. But because it's owners—essentially any enterprise customer is an owner—you see the natural fluctuations of those end markets being reflected in the way owners think about their own real estate investments.

Owners goes beyond the, the value proposition that we have to General Contractors uh our our uh as as I said, you know, our value proposition to owners is our portfolio management. It's about being able to manage the complexity of all of the activities that they have going potentially working across multiple, uh, multiple GCS and multiple locations, uh, and and you're absolutely right. The there is the, the network effect that I talked about earlier, uh, is a really important aspect of our business. We talked about, we, I mentioned that in the context of AI, uh, but it's certainly, a very important in the context in in just the broader context of owners, mandating, a particular solution, resulting in the GC, taking advantage of that solution, resulting in the subs, taking advantage of that solution. Uh and that that we've been seeing essentially since we began, uh, as a company. So that that allows us to create this. This deep well of users who are tied to procore uh in a much more intimate way uh than perhaps with other Solutions uh might have

Ajei Gopal: So that, that allows us to create this, this deep well of users who are tied to Procore in a much more intimate way than perhaps with other solutions might have. The other thing you mentioned, FedRAMP. FedRAMP represents, for us, obviously, the federal government represents an incremental opportunity as we start to look out. The fact that we have FedRAMP certification allows us to support opportunities that we were not able to before we achieved that certification.

Dylan Becker: So that, that allows us to create this, this deep well of users who are tied to Procore in a much more intimate way than perhaps with other solutions might have. The other thing you mentioned, FedRAMP. FedRAMP represents, for us, obviously, the federal government represents an incremental opportunity as we start to look out. The fact that we have FedRAMP certification allows us to support opportunities that we were not able to before we achieved that certification.

Speaker #3: So, but our value proposition to owners goes beyond the value proposition that we have to general contractors. Our, as I said, our value proposition to owners is around portfolio management.

Uh, the other thing if you mentioned fed ramp fed ramp represents, um, for us, obviously, the federal government represents an incremental opportunity. As we start to look at, uh, the fact that we have fed ramp, uh, um certification allows us to, um, support opportunities that we were not able to

Ajei Gopal: As I said, you know, our value proposition to owners is around portfolio management. It's about being able to manage the complexity of all of the activity that they have going, potentially working across multiple GCs and multiple locations. You're absolutely right. There is the network effect that I talked about earlier is a really important aspect of our business. I mentioned that in the context of AI, but it's certainly very important in the context, in just the broader context of owners mandating a particular solution, resulting in the GCs taking advantage of that solution, resulting in the subs taking advantage of that solution. And that we've been seeing essentially since we began as a company.

Before, uh, we achieved uh, that certification.

Speaker #3: It's about being able to manage the complexity of all of the activity that they have going potentially working across multiple GCs and multiple locations.

Thank you.

The final question comes from Jason celino with KeyBank. You may proceed.

Speaker #3: And you're absolutely right. There is the network effect that I talked about earlier, is a really important aspect of our business. We talked about I mentioned that in the context of AI.

Operator: Thank you. The final question comes from Jason Celino with KeyBanc. You may proceed.

Speaker #3: But it's certainly very important in the context in just the broader context of owners mandating a particular solution resulting in the GCs taking advantage of that solution resulting in the subs taking advantage of that solution.

Howard Fu: Hey, great! Thanks for fitting me in. Maybe just, just for Howard, you know, if I kind of adjust for the duration, looks like you've had the biggest bookings quarter ever. So big congratulations there. Just wanted to ask if there was any deals that might have been pulled forward, not pulled forward, but closed earlier than you would have anticipated. And then when we think about kind of that normalized CRPO, if it is consistent with revenue growth, you know, would that suggest that it did uptick, you know, versus the prior quarter as well? Thank you. So first of all, yes, Q4 was a fantastic quarter, and it was, it was the biggest quarter that we've had from a bookings perspective. So, the answer is yes, there.

Jason Celino: Hey, great! Thanks for fitting me in. Maybe just, just for Howard, you know, if I kind of adjust for the duration, looks like you've had the biggest bookings quarter ever. So big congratulations there. Just wanted to ask if there was any deals that might have been pulled forward, not pulled forward, but closed earlier than you would have anticipated. And then when we think about kind of that normalized CRPO, if it is consistent with revenue growth, you know, would that suggest that it did uptick, you know, versus the prior quarter as well? Thank you.

Speaker #3: And that we've been seeing essentially since we began as a company. So, that allows us to create this deep well of users who are tied to Procore in a much more intimate way than perhaps with other solutions might have.

Ajei Gopal: So that, that allows us to create this, this deep well of users who are tied to Procore in a much more intimate way than perhaps with other solutions might have. The other thing, you mentioned FedRAMP. FedRAMP represents for us, obviously, the federal government represents an incremental opportunity as we start to look out. The fact that we have FedRAMP certification allows us to support opportunities that we were not able to before we achieved that certification.

Ever, so big. Congratulations there, just wanted to ask if there was any deals that might have been pulled forward, not pulled forward, but closed earlier than you would have anticipated. And then when we think about kind of that normalized crpo, if it is consistent with Revenue growth, you know, would that suggest that it did up to, you know, versus the prior quarter as well? Thank you.

Speaker #3: The other thing—you mentioned FedRAMP. FedRAMP represents for us, obviously, the federal government represents an incremental opportunity as we start to look out. The fact that we have FedRAMP certification allows us to support opportunities that we were not able to before we achieved that certification.

Howard Fu: So first of all, yes, Q4 was a fantastic quarter, and it was, it was the biggest quarter that we've had from a bookings perspective. So, the answer is yes, there.

Howard Fu: And in terms of where that came from, it actually didn't come from any one specific deal or even a couple of deals. The strength was actually more broad-based across both large deals as well as the broader commercial segment. And what we saw was really the engine starting to really gain momentum, building again on four quarters of really strong and consistent execution. And so that gives us tremendous amount of confidence and momentum going into fiscal 2026. In terms of normalized CRPO, the only thing that we'll continue to disclose and tell you it is still consistent with Q4 revenue growth and ending ARR growth. I think that gives plenty of information about where we expect things to go in the near term. Thank you. This concludes today's conference call.

Speaker #5: Thank you. The final question comes from Jason Salino with KeyBank. You may proceed.

Operator: Thank you. The final question comes from Jason Celena with KeyBank. You may proceed.

Speaker #6: Hey, great. Thanks for fitting me in. Maybe just for Howard, if I kind of adjust for the duration, looks like you've had the biggest bookings quarter ever.

Jason Celino: Hey, great! Thanks for fitting me in. Maybe just, just for Howard. You know, if I kind of adjust for the duration, looks like you've had the biggest bookings quarter ever. So big congratulations there. But just wanted to ask if there was any deals that might have been pulled forward, not pulled forward, but closed earlier than you would have anticipated? And then when we think about kind of that normalized CRPO, if it is consistent with revenue growth, you know, would that suggest that it did uptick, you know, versus the prior quarter as well? Thank you.

So first of all, yes, Q4 was a fantastic quarter and it was it was the biggest quarter that we've had from a bookings perspective. So, uh, the answer is yes there. Uh, and in terms of where that came from, it actually didn't come from any 1 specific deal or even a couple of of deals. The the the strength was actually more broad-based across. Um, both uh, large deals as well as the broader commercial, uh segment. Um and what we saw was really the engine starting to to Really gain momentum building again on 4 quarters of really strong and consistent execution. Uh and so that gives us a tremendous amount of confidence and momentum going into, you know, the into fiscal 26 in terms of uh, normalized crpo. Um, the only thing that we'll continue to to disclose and tell you, it is still consistent uh, with Q4 Revenue growth and ending our growth

Speaker #6: So, big congratulations there. Just wanted to ask if there were any deals that might have been pulled forward—not pulled forward, but closed earlier than you would have anticipated.

That gives uh plenty of information about where we expect things to to go in the near term.

Thank you.

Speaker #6: And then, when we think about kind of that normalized, consistent-with-revenue growth, would that suggest that it did uptick versus the prior quarter as well?

This concludes today's conference call. Thank you for your participation. You may now disconnect your line.

Operator: Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect your line.

Speaker #6: Thank you.

Speaker #7: So, first of all, yes, Q4 was a fantastic quarter. And it was the biggest quarter that we've had from a bookings perspective. So, the answer is yes there.

Howard Fu: So first of all, yes, Q4 was a fantastic quarter, and it was the biggest quarter that we've had from a bookings perspective. So, the answer is yes there. And in terms of where that came from, it actually didn't come from any one specific deal or even a couple of deals. The strength was actually more broad-based across both large deals as well as the broader commercial segment. And what we saw was really the engine starting to really gain momentum, building again on four quarters of really strong and consistent execution. And so that gives us tremendous amount of confidence and momentum going into fiscal 2026.

Howard Fu: Thank you for your participation. You may now disconnect your line.

Speaker #7: And in terms of where that came from, it actually didn't come from any one specific deal or even a couple of deals. The strength was actually more broad-based across both large deals as well as the broader commercial segment.

Howard Fu: And what we saw was really the engine starting to really gain momentum, building again on four quarters of really strong and consistent execution. And so that gives us tremendous amount of confidence and momentum going into fiscal 2026. In terms of normalized CRPO, the only thing that we'll continue to disclose and tell you it is still consistent with Q4 revenue growth and ending ARR growth. I think that gives plenty of information about where we expect things to go in the near term.

Speaker #7: And what we saw was really the engine starting to really gain momentum, building again on four quarters of really strong and consistent execution. And so, that gives us a tremendous amount of confidence and momentum going into fiscal '26.

Speaker #7: In terms of normalized CRPO, the only thing that we'll continue to disclose and tell you is it's still consistent with Q4 revenue growth and ending ARR growth.

Howard Fu: In terms of normalized CRPO, the only thing that we'll continue to disclose and tell you it is still consistent with Q4 revenue growth and ending ARR growth. I think that gives plenty of information about where we expect things to go in the near term.

Speaker #7: I think that gives plenty of information about where we expect things to go in the near term.

Operator: Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect your line.

Q4 2025 Procore Technologies Inc Earnings Call

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