Procore Technologies, Inc. Q1 FY2026 earnings call

• Ajay highlighted Q1 strong performance exceeding guidance, 15.7% revenue growth and 17% non-GAAP operating margin. • Discussed Procore AI progress, including acquisition of DataGrid, new capabilities like agent event triggers and voice AI interface, and go-to-market strategy with a specialist team transitioning to broader sales force. • Talked about flagship solutions: improvements in U.S. general contractors' platform, new functionality for specialty contractors like materials management, and international market launches like BIM Model Federation. • Strategic partnerships with NVIDIA to accelerate building of AI factories. • Mentioned use of AI to grow efficiently, improve speed, and margins, with Rachel joining as CFO and outlining capital allocation philosophy.

Total revenue in Q1 was $359 million, up 15.7% year-over-year. Non-GAAP operating income was $61 million, with a non-GAAP operating margin of 17%, up 650 basis points year-over-year. Free cash flow was $56 million, up 20% year-over-year. Current RPO grew 21% year-over-year, and current deferred revenue grew 17% year-over-year. Revenue contribution details for product segments not explicitly broken down beyond overall revenue and margin info.

• Q2 2026 revenue expected between $364 million and $366 million, year-over-year growth of 13% at high end. Q2 non-GAAP operating margin expected between 17.5% and 18.5%. • Full year 2026 revenue guide raised to $1.499 billion to $1.503 billion, total year-over-year growth of 13.6% at high end. Non-GAAP operating margin guidance raised by 50 basis points to 18% to 18.5%, implying year-over-year margin expansion of 390 to 440 basis points. Free cash flow margin guidance maintained at 19%, implying year-over-year free cash flow margin expansion of approximately 280 basis points.

Q: Joe Brewink asked about revenue upside, CRPO, and Q2 outlook.

A: Rachel said pleased with results, revenue upside consistent with Q4 beat, Q2 high end consistent with street estimate.

Q: Joe Brewink asked about Procore scheduling and cross-sell opportunities.

A: Ajay said excited about Procore scheduling, natively connected to platform, and AI capabilities adding to cross-sell.

Q: Sackett Kaila asked about construction cycle and customer views on project starts.

A: Ajay said construction environment stable, data centers exciting.

Q: Zach asked about CRPO converging with revenue growth.

A: Rachel said average contract duration normalizing, takes 3-4 quarters after stabilization for convergence.

Q: Dylan Becker asked about AI catalyzing adoption and platform consolidation.

A: Ajay said customers trust Procore as tech partner, agentic AI capabilities provide value.

Q: Ben Thale asked about sales changes.

A: Ajay said strong foundation, Walt's leadership to move fast.

Q: DJ Hines asked about network effects of AI and DataGrid impact.

A: Ajay said benefits accrue to all collaborators, DataGrid immaterial to results.

Q: Adam Moore asked about government vertical and bundled packages.

A: Ajay said FedRAMP authorization is longer-term play, bundled packages received positive feedback.

Q: Matthew Martino asked about macro and specialty contractors.

A: Ajay said FedRAMP takes time, specialty contractors benefit from product releases.

Q: Daniel Jester asked about margin seasonality and specialty contractor growth.

A: Rachel said confident in margin profile, Ajay said specialty contractors benefit from product value.

Q: Jason Salino asked about operating leverage and oil prices.

A: Ajay said R&D using AI, operating leverage from all parts of organization; customers not citing oil prices as long-term concern.

Q: Ken Wong asked about guidance shape.

A: Rachel said guidance is mechanical, consistent with beat and raise philosophy.

Q: Ken Wong asked about go-to-market changes with Walt.

A: Ajay said Walt evaluating organization, excited about his capabilities