Before I begin today's call, I wanted to share that Howard Fu, our CFO, is unexpectedly out of the country attending to a sudden family emergency and will not be joining today's earnings call. Comments made on this call include forward-looking statements regarding, among other things, our financial outlook, go-to-market model, CEO transition, platform and products, customer demand, operations, stock repurchase program, and macroeconomic and geopolitical conditions. Revenue growth was 14.5% year-over-year, which is consistent with last quarter's growth and reflects our underlying business momentum and performance that we've seen this year. We had another strong quarter for large deals, with the number of six and seven-figure deals accelerating to 31% year-over-year growth, and the number of $100,000 plus ARR customers now totals more than 2,600.
He has relevant vertical software experience, most recently serving as the CEO at Ansys. Ajay's track record is clearly impressive, but his deep passion for transforming the physical world through digital innovation is what ultimately convinced me that he was the right choice. He recognizes and values the privilege of leading software companies that help its customers build things that are lasting, tangible, and impactful. Since this is my last earnings call at the helm, I want to take a moment and leave you with why I am so optimistic and confident about the future of Procore.
With Procore as the clear category leader, I believe that this market is ours for the taking, offering tremendous opportunity for durable long-term growth. Non-residential and multifamily construction has gone from growing 25% year-over-year in Q1 2023 to negative growth of 2% for the last two quarters, as reported by the U.S. We look forward to continuing to build on this partnership in the years ahead." My confidence in Procore's future is further bolstered by our commitment to improving our margin profile. While we have achieved 1,900 basis points of non-GAAP operating margin improvement since the start of 2023, this only scratches the surface of our profitability potential.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | Q4 2025 | $339 million-$341 million (12%-13% YoY growth) (new) |
| Non-GAAP operating margin | Q4 2025 | 14.4% (new) |
| Revenue | Full-year 2025 | $1.312 billion-$1.314 billion (14% YoY growth) (raised) |
| Non-GAAP operating margin | Full-year 2025 | 14% (400 bps expansion) (raised) |
| Fiscal 2026 revenue | FY2026 | Comfortable with Street's FactSet estimate; no formal guide pending new CEO onboarding (no update) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +14.5% to $339 million | Outperformance from owner and specialty contractor motions, strong mid-market growth, and continued North America execution. |
| Non-GAAP operating margin | 17% (up 380 bps QoQ) | Continued efficiency improvement, including some one-time G&A benefits from facility and tax reimbursements. |
| International revenue | +14% (+15% constant currency) | Approximately one point of FX headwind. |
| Current RPO | +23% | Strong quarter plus a further increase in average contract duration. |
| Six- and seven-figure deals | +31% | Strong large-deal quarter and go-to-market model benefits. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| CEO transition | Tooey Courtemanche as CEO | Ajei Gopal announced as next CEO, stepping in November 10th; Tooey moving to Chair of the Board after nearly 25 years | Transition |
| Construction macro environment | Challenging / down cycle | No notable change; steady headwind expected to eventually turn into a tailwind | Stable but challenged |
| Go-to-market operating model | Transition underway | Yielding benefits — higher pipeline conversion, improved expansion rates, lower voluntary sales attrition, stronger customer intimacy | Improving |
| cRPO vs revenue convergence | Benefiting from longer contract duration | Duration increased further in Q3; disparity expected to shrink as early as Q4 as the longer-duration impact anniversaries | Normalizing |
| AI / agentic roadmap | Early data and AI positioning | Agentic roadmap announced at Groundbreak leveraging proprietary construction data; customers interacted with agents on the expo floor | Building |