Procore (PCOR) 1 May 242024 Q1 Earnings call transcript

Good afternoon. Thank you for attending today's Procore Technologies, Inc. Fiscal Year '24 Q1 Earnings Call. My name is Cameron, and I'll be your moderator for today. [Operator Instructions] And I would now like to turn the conference over to our host, Matthew, you may proceed.

everyone. thanks, Hey, Good afternoon. Quarter First Call. XXXX Earnings Procore's to Welcome Matthew VP Finance. of I'm Puljiz, today And Founder, are President me and CFO. Courtemanche, Fu, Tooey with Howard CEO; and press the section of our found website, and is of can reports our on release filed periodic our with available Relations disclosure which issued Investor Further the our today, SEC. results in be

financial on available results, conditions. statements of the conclusion Today's being and recorded, the operations forward-looking demand, call customer include a Comments products, following this made and is regarding geopolitical may our replay will be and call call. macroeconomic

should as are events. You X, not and on of rely risks, views to expectations statements on assumptions statements May predictions as forward-looking current are today, based forward-looking management's XXXX. All uncertainties and future subject and of

obligation today, statements call Procore during information our or not representing by to new information as forward-looking statements as these after events, this the be law. any views accurate may If contain update should relied of reviewed reflect the any unanticipated upon replay as date. current to except or required not subsequent information. presented Therefore, call a undertakes is no

GAAP our investors. to We'll additional is to measures non-GAAP non-GAAP A press in measures to reconciliation to certain information provided release. of provide financial also refer

And to it that, so with let Tooey. me give

our for and of Thanks, gratitude all hard team's the quarter partnership everyone, to joining for by with thank this thanking start Matt, work their you, and by for us today. expressing continued Procore. and like past customers I'd trust

in were, grew Some XX% QX, revenue we notable year-over-year. highlights

performance make efficiency in quarter. strong to delivering our margin to improvements continue We the profile,

to Companies on in strength we is fourth among of that Procore and first this #X and year customers. XX, testament was of brand the the ranking Software Procore ranked to Top This our included value GX's our top huge time to XXX the list continue our a being deliver the XXXX. And for Global

stands along a customers, how us from the hold leadership the together over Carpinteria GCs hear for an ECAB, quarter share Procore event quarter, is feedback Procore's become is we Board across brought this opportunity This organization. the was XX partner our of invaluable Executive And hosting industry. team members This event Advisory which our twice Procore at our year. an our can specialty from with Customer and to discuss dynamics needs, the and of to on contractor that largest determine ultimately owners, offices. several standout for of even stronger strategy, construction their executives we The event an

the takeaways to So X major event. I'd like took I share from

First is these industry the sentiment. Overall, and businesses. long-term about real the customers are and in uncertainties increasingly term, anticipated. optimism than of the very had customers their optimistic challenges expressed long-term future more I construction Despite near

strength part is and they portfolios benefiting see driven that spend in continue this centers They the data from pockets have optimism diversified construction. in to shared in that are of such by as sectors Those infrastructure. increased that

the long the clear trending in dynamic positive direction term while industry's the is stronger. is So and getting near a in in term, environment it's the remains confidence sentiment

that and the customers configurability by event help on is quarter, of the improving to connectability projects workers' which is alleviate time of the headed. needs with These that meet Second product of our map integrations. current is aligned demands the can products map would report that where types cohort and shared Last product focusing increasing, on large placing complexity our all the is road at Customers a enhancing road attention, capabilities road industry and be stakeholders. area map. our product our overwhelmingly flexibility, focus within our I of key validated

data takeaway, which This doing engagement record at customers our operations. aggregating systems, dealing center It's with my what at biggest The point phase the data that data. challenges of an and on. with brings customers' of the across inflection and to amounts system to connecting it is massive of third focus clear so they of solidify will Ultimately, it knowing construction data. believe are me Procore another these as are from that to one

workflows of Our Procore their the comprised customers solutions to see technology life aggregator. and operations centralize entire as cycle connects single solutions, to their of and customers across central platform that as Procore's data across Unlike point ability construction other stakeholders are entire disconnected a analytics to act products, multiple because in run our true business. data enables and the market and

our to signs conversational connected most for before as such particularly they had goes productivity early the with foundational of I forward-thinking contractors job they one Copilot. and projects identifying is through topic. this creates which conversation within that an shared are warning experiences possibilities platform, And on Data rates about concerned Procore upcoming products sideways. interesting

only Copilot, and spend aggregated platform. together going excited reports a answers job possible these asked and and multiple action by across that warning not. able them if like time any of things early systems by is made of data Procore be They look With so allow take to they're identify signs to answered to a profitable to Copilot. customer we're our host lot sooner, system which to why those create can't questions is about a will one be putting or be anticipate This

consensus for There enabling one to they often build about optimize the I'm just is or whether our example was customers of how no shortcuts on analyze, customers strong to to businesses. shift is how AI Procore's operate in not transform AI these there real; transformational foundational change and one, in are and and two, themes: help across construction. customers potential asked the it data jobs may threaten construction. This us leverage and their a how AI asset is

I do biggest do to information next and someone surfacing Our can about as processes, and replace ways time excited efficiently, recommending expense being safety. positioned have the rather industry, do and automating the with I personal at on or able to number associated asked products. projects. which it of of to my is the early where a earliest status. Copilot customers a of continually someone solve Copilot customer the to an more own used challenges Copilot responded currently it am quality which AI have change. our force build for technology. by on forgot first or actions. an might real in pride beta Procore in use one is seek this I RFIs estimated myself and cost AI's are on not scope not act best to change, Customers clearly recently projects, the leverage of was but construction scope conversation to fact, my multiplier responsible was work, specific to with what show to subcontractor the my well I of name best of and the be And likely customer me what the RFI Procore how tested but

through Previously, valuable to taken of running hours orders and of me change drawings The risk. cross-checking information actions and coming this have RFIs, saved hundreds would simple myself. time reports glean eliminated me and this several

and for be to predictive early to changers construction, clear the on technology game going capabilities full this the it's predict still industry. AI While conversational impact of that are the of

staff. our biggest Ultimately, challenges tackle help understanding the our of persistent to partnership. these we goal types the customers one finally, shortage. how a field labor And of new school programs, for focusing leverage instituting on of lobbying my Customers being of more and can variety ways, AI in schools, to support construction, are events trade in responding strengthen in talent including incentivize high mentoring is placements to

it that help technology partner to skilled efforts underscores the for of procore.org important with continue labor to next our construction. provide construction generation bridge how with industry This aligns event of the beyond inspire clearly we challenges the the the solve to for and This help gap we professionals. just is

I'd complexity. Our customer of illustrate customers deal real-world event our attended a story share that a with like help to so to the partnership. much

farms final wind station the the of group trenched joined grid. important main connect wind of to will project and a large the Long recently grid for and converter site contractor, a in Island, a power XX A New connection offshore miles Haugland power to Procore of to Group, infrastructure a our and energy This station visit York. customer, project over energy construction a leaders involves lines

Haugland project, traffic and cannot control overstated. contend regulations, to with safety, agencies heavy multiple environmental of and and in amount weather. in the of these meet sheer to be this have projects a complexity get has The For They scheduled multiple work data conduct permits, all regulatory multiple of secure government civil bodies. types involved night from clearance

partner Haugland, tech-forward a approach, in the this technology project. a safety, for efficiency with a to as Procore turned and industry to manage reputation solution and

to see new operating are their working leaders to post Beyond to strategically ramping to visibility usage better They and our quality, budget. improved of and standard identify that team opportunity project find around leverage build. out roll ways into implementation, their safety, risk Procore schedule reduce Procore's with team procedures the

level data. They ultimately will management to underscores solution, value especially collaborate of within we've on clear a partnership risks projects. performance save analytics plans empowers their to the helping comprehensive insightful Procore's powering leveraging Procore the willingness This industry at trend projects, be meaningfully reflects standardize enterprise. reduce consistency capture Haugland's costs Procore's to and Haugland's and project this ensure action across and seen, and expertise.

economic grow I their environment the that help, face are margins chose to turning to become them to to Procore a on support to and them Construction Haugland help and goal. to look them. executives forward accomplish continuing of tougher serve better Procore in I'm honored this builders and

Procore, in few and a ENR's contractors construction X leading XXX company years. choosing ranked is a customer top on #XX American Speaking I'd share quarter. to wins notable a North been Alberici has of Procore that's list like over customer for the

Procore suite U.S. example such that Alberici plant already has for the Alberici is history Year. will implement been first This lithium-ion battery was quarter, in first and process. and expanded which construction on largest production overhauled the our how products Navy's Bay Kings our XXXX decided customers time their streamline to nominated on in using. its us of to with the as projects for robust of construction Canada's a innovative the great very the Procore facility, large-scale XX-year Project of top continue believe use ENR's to vision and payment volume This of Pay they're

general deploying commercial, ENR business. with another the and contractor share with government leading serving sectors. with with Procore the expanded McGough a is relationships of contractors, their across our strengthen I'd ENR to enterprise-wide recently us, legacy nearly example partnership XXX. and significantly to XX-year like our educational continue deepening XXX We an They

their with pilot over Procore streamline years. competitive they chose technology Initially, am and solutions as to data happy field and several a ultimately office to growth experience, the they of integrate that strategies plans ability and program, ambitious I X-year due next Procore over existing to part had rigorous purchased our solutions their support share the

Additionally, have recruits field multifamily also Procore, want them of and but companies. given on many or their McGough renew that talent, did markets top using saw adamantly focus saw at centers retain expand prior advocated their use the to plans care, for McGough continue help into attract their through platform McGough federal it. university data value and Procore teams tool as already like a projects. how With employees health Not to and used and programs their only Procore, the to to industrial

and U.S. expanding consisting of to customer cloud XX data the X a interconnection combined leading of enterprise QX. have new customer over over to footage. continue In million we Holdings is data relationships. infrastructure a addition services Procore in square They representing in footprint an became class DataBank and of provider build with center, centers, customers,

that of better could they processes to next out team of to help them standardize solution provide truth double number growing X a years. of projects, to efficiently Their provide reporting business, the their and as single projects their scale for number was X their capital portfolio-level across source the looking a in to set manage

provides far chose that After platform. construction in-depth as their research of they value management unmatched shared happy primary outweighs that share they the the to And cost. I Procore Procore available am technology solutions,

are expenses close, I that with These that anecdote like before brings life In large provides. reflect to leave our customers ROI So allocate the spent expenses. amount the profit Procore budget an construction, Every fixing hour and labor labor rework in designs of increases field. builders coordination, high-priced this process for our on hours ensuring saved design minimizing issues, the design customers' margins. a I'd for to you effectively the BIM feasible on

Procore's which of Recently, general BIM reduce have by customers, solution our of projects are one influence XX% reduce how make business. on stories, Bernards, customers deploying us Advisory these going began BIM us the events their anywhere to projects. we XX%. on directly able Customer of along the significant deployed bids." So the strategy our shared that to future budget, of the to BIM initial been had allow from with solution set contractor more These conversations BIM our like ENR to our I the our savings I've Board about to Their all on on, following, XXX leverage "Based direction BIM expenses our VP think we've and and estimators the competitive meeting, with

the on both long You've greatest we the time only in areas is decision with right short say term. that efforts plan but emphasizing the are heard that that and the we customers value greatly right before focus reinforces one that how going me not customers our and we're My the are to operate. deliver our to our on focusing to focus

So the financial walk Howard that, me over let it through turn to results. with to

and everyone some was Tooey, Today, revenue quarter conclude I'll to XX% you million, our and up thank with $XXX year-over-year, revenue results, joining grew us. and on XX% Total color financial year-over-year. for QX the Thanks, in QX international our recap outlook. share

international by Our constant FX basis, On to basis, slightly XX% year-over-year currency a year-over-year. revenue were revenue contributed approximately international of point a results QX grew international on X currency growth. impacted Therefore, headwinds. headwind

income specifically margin was revenue, current RPO year-over-year, operating operating backlog non-GAAP XX% million, grew QX key In representing of respectively. and our $XX XX% an deferred and XX%. current metrics,

performance. QX additional a take me color our let back share on and some Now step

the to First, while continue beginning as last industry saw described, long-term to year. stronger of optimism, see sense the is develop challenges we we a Tooey

However, the was when theme activity. reviewing business the that persisted renewal results quarter's within stability our

historical last we experience steady. than higher not contraction to but has the held year began rather worsened, Specifically, has

book. is data size indicator for the is to the which remain year, results an of that of Furthermore, will large important planning an While assumptions renewal validate XXXX. given one the throughout early environment demand the year, the it point our challenging appear QX the was of

of be to continue half, back half we stronger the by Second, year expansion motion. believe primarily our driven first the that than the will

an perspective. While saw decelerate is is and subsequently this point, before in one improving. it the our encouraging renewals data expect stabilizing this growth that on to further just we trajectory, stability Based outcome QX cRPO QX we reinforces in

another improve of yet quarter. driving our to demand. our and in on leverage Third, all profile improving the particularly of focus the we continued areas first across softening operating efficiency is margin continued This business, proof point of times in

aligned As to we is and said on before, in leadership most ourselves of being disciplined our the to generate challenging optimized entire stewards order ROI. resources capital team deploy

business the allowing remains and ourselves priority growth, improving flexibility driving of the landscape. our on react line Our balance striking margin profile to our top to right

year. improvement R&D the both capabilities in In should our greater business such, prioritize to to As investing serve or, manage to long-term in intend with go-to-market construction. arise we opportunities invest intend to this and even solutions in strengthen release of opportunities better margin to continue flexibility opportunities, platform we those near-term the enough either growth absence attractive cases,

primarily Procore upmarket And approximately opportunity to about we was the market fourth, of that in had was first By QX customers, XXX Pay. and logos, QX, be optimistic promising. continue product adoption the total early been adopted Pay. full customer we and has excited end quarter that available the this for the

the largest payment [indiscernible] us highest Pay and We and streamline are manage help encouraged in processes. entrusting that construction particularly some of adopting and are by to firms profile their

onboard this this period material required year. do reminder, anticipate given offering we customers a ramp benefit to financial pay, for As from not the

contributor term, growth. to the overall over offering to long our payments be we a expect However,

Moving on outlook. our to

on of quarter's our As more generally our XX with philosophy we encourage remains our I color to for and refer this days outperformance revenue shared magnitude remarks commentary call expect ago. from is our the unchanged philosophy. on reminder, guidance guidance a our with The in to versus guidance investors would last should what consistent line year. you quarter earnings the last

for With QX year that, our here is guidance XXXX. full and

representing revenue between to $XXX XX%. between growth operating expected the and second of and QX quarter non-GAAP margin million, be expect million $XXX and XX% is XX%. we XXXX, of For year-over-year XX%

XXXX, expect billion, total year-over-year growth the year-over-year representing For year and and the between and between margin is points. Non-GAAP we XX%. fiscal $X.XXX $X.XX year expected between implies X% revenue to basis full billion for which operating of margin expansion be XXX XX%, XXX

the challenging environment continue excited we we a while in remain in up, term, wrap about ahead. demand long-term To to the opportunity near operate

the leadership We will shareholders growth. us employees, business customers, in efficiency we will communities opportunity. partners, believe market like our for by continue again well we the optimize continuing manage I'd as drive the profile expand as invest areas while thanking industry thoughtfully long-term close to to to giving to serve and and the our our this

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

of And the the from with Kalia first Barclays. question is Saket line

Tooey, just your with out the market. environment Despite just whether discussion get of a and all. the perspective bit out I'd this a at and and rising to is clearly very love maybe on still changed macro zoom little uncertainties to you. start tide sort competitive there, that's

out is, there And Procore? maybe you the question from competitors are so what seeing vis-a-vis

first win has to no a Well, have true say there long rates your has foremost. and been all Saket, really to nice that hear in I and change been time. for voice, really at

premium news premium we no But a price. product, So Saket, there's do as that really command know, you and a front. on Procore is

is all do. our industry and them, expenditures, we all their all the know of Bernards do get industry as is for that saving with rooting that because amount drive And rewarded because members, we we've they we we recognizes on But for Board just when XX% said that's earlier a I that Advisory value. tremendous on about Customer success met of the XX% focus Enterprise to our BIM

So pulling the us. but nothing really competitive on is see yes, really the for it to to side, report industry encouraging

to for That's A lot of Howard, remarks. great XXX ENR maybe for the hear. good you. prepared examples Absolutely. in my follow-up

to more customers, question you are your sales of how as starts any about in that maybe that resources do pivot And in objective? to go enterprise back market? aligned make of that Procore maybe to of there so so success sort half larger Does feel sense? are is, how year, And the of signs the the selling early this sort in

it nuance make sure is first thing so clarify. to I makes a I the Yes, is, want Yes, there sense.

sell upmarket not This more of are We just towards part started a starting to to make enterprise. back started the strength to last to when relative see that is shift year the we and we motion. of relative when at really our enterprise and to of our resources our is. strength that And in shift terms in time aligning expansion started where make is that to that we in

really So or doing shift the a and started started what year pivoted it's selling progression enterprise a last not of that it's an this into something and of started in we year, what we market. to already been have we or see extension

the Blair. William is with question next The line Becker of Dylan from

-- wanted and area to globally question U.S. to because kind well, two sure on There's international will I I'm of pair Quick too. but infrastructure an of play, be businesses ton maybe seems U.S. there's as mandates together, and on. international a in focus, and focus infrastructure certainly Tooey, on

on just international of adoption, too, both help of there, think for opportunity as of maybe wedge vector maybe segments, each support some kind of the to focus about those given network kind catalyze you a both guess, I given infrastructure serving So do how compounding other? the your on as dynamics a

the Yes, to really really often calls. segments made different rather in of industry And good components. up that actually lots we say these of question. itself that's and is a it speaks But Dylan, something

are cylinders. which of firing Some on all

may which performing Some others. not as of well be as

especially clearly, very internationally market you so bag in investment It's And of infrastructure into globally. mixed the U.S. a look large. a the right now, is bit when

and Some quite others so not much. investment infrastructure countries have large in

infrastructure lot international a global their portfolio. of our to speaking part been strength spend, I've they in where usually customers. And And just it's see

It's just their So in of portfolio. of distorting one it's not their book really business. component anything

this the fact, be in is be think think there's And I relatively and the like in lot customers to a that things talked other an few few U.K. where this year, a to there's going that a they several year. going fact of flat just they to see the market our not where of infrastructure things given they going spend election to weakness investment that -- be

the private But is of rest sector. their mix strong, mostly on portfolio the

infrastructure So it. is our diversified it's always are of those portfolios. But in a that mixed bag, customers aggregate, running is component which

anything it to So Procore. doesn't relates it distort really as

makes too. over one Howard, for you That Okay. to as switching Maybe sense. well,

pairing where the of conservatism. think kind here, some stabilization some some long-term ramp, initial volume we've the up about seen on makes if back maybe guess, kind as Just that those commentary cycles how of of some renewal to relates you've sentiment improving coming sequentially it the noted with comments we're I to half sense?

Yes.

So the look, what same how half about we felt we we as ago. that feel back is XX -- days

assumptions. as In fact, as of be and some motion. actually we that in well the year that first those a enterprise from reinforces expansion than to And from we the the saw of QX half back standpoint. the expect to booking still expect upmarket the still the come we half And stronger stability

terms the change had the we feel as out playing year. half are how things back in expected, about no and of there's So we of

is of line question next Sandler. Brent the The Bracelin with from Piper

in business a money these to challenging offset to demand data center. I lot more center big should Is of builds, I'm center Or and some around guess, the challenges? spending specifically near-term with we getting is of data help long-term think question expansion excitement ton incremental here, the some a My let's environment? optimism, threat that of around enough continue Tooey, stabilize here. the challenges. near-term as a Microsoft of data help

for portions the performing well. of to kind is but hate are same construction very sectors, other as which up be same vein, They Dylan, of really I maybe strong not in answer much Brent, the economy. you the I making generally it's which So you gave these where give see

But So the you're increasing all that volume just construction much. overall in lot about these centers. aggregate, a reading data isn't

opportunity I ago month miles from of way, data because up the see away flying And the the these Northwest. and about centers a centers Pacific in big many they're by in a bunch are. when there you and And you're data had to create you doesn't a of that's our of are But our so they how sort distortion any get of diversified it part big, so business sense portfolio. their just because in customers, visit

matter say team I I'm a As to of Madrid that. see and want But next -- tour to view, fact, big to over-index because go the X I to they're exciting taking in leadership fun some of wouldn't weeks, centers. and It's on going we're do data one kind they're thing. more but to

I data I there's data don't brand our there's centers have fit strong. we and build proud centers And no getting builds than it's And it's we frankly, the shouldn't that believe every more the why where -- really supports out personally a Procore technologies. software or area on tremendous on company any there center I planet. that built of. And more am a in is not don't -- reason really, be data an there's something

you, York. follow-up on and the actually here. expected. cRPO actually than we I sense in growth was And New York, for Howard, of New apologize. lot still a there's a for had Howard, backlog, to construction of then I'm RPO happening year-over-year Makes street as healthier

out. that parse to Just trying

that commentary some RPO came to versus looks RPO that kind talked cRPO saw you that what aided this Was forward? renewals got than early about around in through stronger and quarter this maybe we pulled little renewals It out stability. of expected? the the think thought. trying Just of and you And strength quarter a next you there quarter

perspective with from caused expected. consistent year -- nothing the And that back out QX expectation being our QX of fact, nuances half way is turned the the in stronger. that the that QX that. way actually in specific out of anything There terms we that of was extraordinary or turned actually

And cRPO see with going QX you're mentioned. to turns we're to -- seasonality in that, that off it the with our go levels going consistent growth to we around. expect to continue And before and down that's

about of specific caused deltas. happens quarter. particular the some noise nothing QX nothing those there's So that just that or in nuanced in It's any

question the DJ next Canaccord of Hynes from The is with Genuity. line

Ryan a on for have quick just This question. I is DJ.

I into So guess of I spoke any these Procore I have contemplated, kind more more like would guess, internal you're curious thought limit put that filling. few that? this professional relationships to you home kind I'm guys or that attributed we bring and external guess metrics that about churn. a enterprise of cultivate any build-out case just months Have ago, services if make you like tracking and

that Look, we invest to make towards motion our our continue and to sure professional is upmarket more intent with the with in services And shift customers successful. that we enterprise our make consistent that shift.

to our and progress Professional but still services there. there our on. update make standpoint make we'll investments a revenue, small very we There's customers successful. give an And continue continue top from to continue extraordinary make nothing of that, line do to so a to is we still part to

then a And just quick Great. follow-up. Okay.

pain is about new AI think I pretty think guess, for, prop has you what a To going we pressures? point is strong acute do Copilot in extent a knowledge usually all to demand So a these workers. construction. we spoke Because hear labor traditional really I about alleviate value

it the ground of a kind curious effects have boots what environment? on just I'm of more hands-on on kind will So like

across -- Customer And of and these Board, pretty it's that which Ryan. was jobs. specialty is topic -- contractors very in and about XX and in the of around. this owners mentioned versed GCs came a jobs remember, because, Enterprise are of the Yes, well really consensus taking Advisory across I really the are our impact was this largest was folks up construction. that in remarks, question what eliminating that as consensus these opening And like Good AI who the wasn't the of all on

to It Excel industry into was and somewhere. and double and build drive which searching on to their do doing effective them not to they Word about do jobs doing what is their who through job making back to this at entry more got spreadsheets to data have getting foreign not system docs and people do, some

that multiplier, it and seemed is it for So way. sure, a force

the And beta reaping benefits I'm of in it myself program. our

So industry, I we're on -- I necessarily but anytime impact big not to think a soon. see foundation to going going it's have think it pouring don't the our

Brent next Thill question is of from Jefferies. The the line with

lean assuming Tooey the tougher going off gains Howard, good you're And seeing as curious lay margin see is you are going more biggest to opportunity are where on and you're short could those? color the you improvement. term, talking that? in the in us little those? how gains Where in out, of you're kicked those a you just in how getting we Can just I'm lever? environment efficiency a if getting about efficiency a How stick you give kind the terms of to

demand in been of medium our sure bring continue environment gains and of in really to pull of that. road go-to-market on the and that how are on the as the make R&D value in invest efficiency we're of the levers and then Look, In the happens, to around prior in things more to what from continue flex to said what to mind we short across which technology that we're terms Yes. to and the coming terms see continue how our side same we in our product, investing the And map to regardless we make progress investing, seen we've it's has particularly you'll keep organization quarters, based customers. in functional and all areas. term, different that still

what to we're have still with poured with. But the for year our flexibility business. back for is into that that, be built or you're plan back the of to and into in margin, room back back most the to we've Specifically take invest for we're business saw we comfortable depending on and remember, able remainder the invest QX, profile. that of year, the to And QX, what you what to into continue have flexibility into our for Brett, QX seeing have and the margin to it guide, seeing even flexibility that to

next line Ken is the question from with Wong of The Oppenheimer.

of commentary, in you, kind was QX assumed this then I about thinking would stabilized probably last I in improve ago? we're rise the of the kind thinking first it got half. of to it has that quarter, in hairs here. kind Or trough guess, X you're months rebound? you time around, kind The when of QX. is one in characterize of of second and kind and cRPO Howard, But think been would about of splitting similar adjustment think kind we've any for there that going I forward kind how And cRPO and

that's what Our perspective how to of hasn't HX changed and a really than then booking a in is flow from look drop that further to trajectory in is Still going terms QX stabilization. in going standpoint like. growth stronger HX cRPO to through and

remember, that, biggest said quarters. QX Now having QX our and are

renewal the results some got in QX we've execute our and to half in will that this the particularly happen actually that, So reinforcing our against at is But to the point. with perspective year. go assumption ways base, that back our of

from days nothing over -- changed, So Ken, ago. XX really has

it. Got

of is Tooey, wanted lot total side. better. And I to looking the maybe at you RPO Okay. on then, cautious pick is as seeing better, metrics, a And you environment. you long-term a RPO brain upbeat Perfect. just know your the I lot guys mean just enterprise what characterize the thinking maybe ago? -- were than being guys X are But more months are you still little at kind the a on enterprise would how

It was Yes. interesting.

question. So asked same Customer our Ken, had the I Advisory Board when Executive I here,

And for But long them feel was really optimism all do to the in was the future? about headwinds term, that are their face. interestingly were that had they so level had high they and enough, first you like -- And challenges there I short the term. how the realized question there asked macro

been So was story almost us exact the same over it they've telling that time.

bigger. bit those little long a calls. over and was the which Backlogs There more getting run, optimism being out came in big

the way it the economic is they're and their excited for they're to shaping right now, up. a best challenges how the future backlogs really environment characterize pent-up tough facing the So about are demand of but

question the with line Aaron of Kimson Citizens next from The is JMP.

the to little like more margin there. color guidance, operating a I'd back going Just

to a conservatism that Can QX, there, know X% flexibility just the I and of a Howard. may guided did month operating did XX% into where margin XX.X% go stuff much and is about you in adjusted X% in talk the that talked you So year. about risk how investment you number?

Where continue want the all sure and invest we go-to-market I've make long-term make In to road investment map. talked that as in in we short because in would product I already cases, we and to the invest R&D our to we see flex think fit. go, we our progress about term, little a will In continue that organization, bit.

roughly in as Specifically, that a million about was so the workforce about did, it $X impact to QX. we X%, reduction it relates or

as just then And follow-up. a Great.

So now motion changes CRO. a Larry full to in quarter [indiscernible] thus the Stack What as is go-to-market your far?

all so been I been you. I quarter almost And earth, our with he's job doing think the Well, do has don't think steeping months wonderful by job and job at he visiting But and -- the to he been might several he's on full know sites really over our really in has his Aaron, everything visiting just road. to offices -- needs that. Larry way, I and just a and customers a -- argue first the himself visiting think that in. the

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of The Gogolev from Alexei line JPMorgan. is with next question the

from Jason the is with of Celino KeyBanc. question line next The

that dive you have Procore as today. hear Procore move now that does remarks, go kind product a more, you I your ultimately that of for mean, know, ask customers the bit on in help And what encouraged guys adopting little your suite, drove instead? Devin Jason them I'm Pay. to up is customer I want just Procore I talked into This you XXX market? now adopting Tooey, Pay one around X you with to Pay. to about it. Procore Could win rate about as to of

It's customer of positioned our for products. adopted because referring our a already So Alberici connector. have many that customer they And become as running X ERP been you're years, to. actually our is product they to as financials well they were the one a our pay well Procore were and invoicing and

benefits on be value. very well Pay, they we're -- So tacking knew tremendous going the of to some then deliver were was that to going primed, they And of all what Procore in place. having and

take a And customers to Groundbreak, maybe as on come you opinion Pay. there's been really are say, you Procore about they've ask that if I'll can partners. to do sense nothing to But all it people, going online done make they're these job like middle fully does because always during online halfway get that's accounts because differently people it caution to job. paying a start not to them excited And directly lot of their great But this. I the time the to wouldn't of bring but

And the jobs online is, way month companies every new come so. run construction or

the good loving time very ramped received. these from market. of folks solid a we're getting up. very But feedback the get news been well it and just that it's So the we're a bit And to it's takes product, is

follow-up. Understood. And just one

adds just it you net expectations? And different to the share across geos -- can adds curious your in On is the I net like enterprise performed also, versus there? just kind mean, Any segment? that color function how quarter, a continued have the customer your of addition Is of additional targeting seems decel. efforts

that Your us going in the is concentrated end most count is is of making function to that shift it SMB. be customer down assumption a upper that mind of in our the towards market market, the of correct is keeping

of SMB is terms upper our shift bit a and focus our customer market. macro towards it likely still the Now count. of there and of a is challenge that the But the end impact in

The that in the is, is or to. retention rather leaving which actually still actual healthy not something indicative mind XX%. to our other thing range it's not us. one, -- customers I'd count manage point that keep actively of not mid-XX% is customer And rate, gross is to in we you

And look at. a to much so that's better number

management team conference That concludes would now the closing pass remarks. I to over all for the like questions. to

Thanks, everybody. Talk soon.

That you Thank Procore Inc. concludes for QX Earnings your the Fiscal Technologies, Call. the day. and enjoy 'XX of your rest participation, Year