Company: PCOR
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050149
Chunk: 62

Company: PROCORE TECHNOLOGIES, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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820 Total employer payroll tax on employee stock transactions$1,664 $1,730 $8,178 $8,261 

(4)Includes acquisition-related expenses as follows:

Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(in thousands)Sales and marketing$139 $— $933 $1,448 Research and development695 — 2,439 — General and administrative238 51 779 614 Total acquisition-related expenses$1,072 $51 $4,151 $2,062 

38

Comparison of the Three Months Ended September 30, 2025 and 2024

Revenue

Three Months Ended September 30,Change20252024DollarPercent(dollars in thousands)Revenue$338,851 $295,885 $42,966 15%

During the three months ended September 30, 2025, our revenue increased by $43.0 million, or 15%, compared to the three months ended September 30, 2024, of which approximately 77% was attributable to revenue from existing customers and approximately 23% was attributable to revenue from new customers acquired during the three months ended September 30, 2025. The increase in revenue from existing customers includes the net benefit of a full quarter of subscription revenue in the third quarter of 2025 from customers that were newly acquired or expanded their subscriptions between the third quarter of 2024 and the second quarter of 2025 and continued or expanded their subscriptions, as applicable, in the third quarter of 2025.

Cost of Revenue, Gross Profit, and Gross Margin

Three Months Ended September 30,Change20252024DollarPercent(dollars in thousands)Cost of revenue$68,762 $54,954 $13,808 25%Gross profit270,089 240,931 29,158 12%Gross margin80%81%

The increase in cost of revenue during the three months ended September 30, 2025 was primarily attributable to an increase of $6.2 million in personnel-related expenses, including increases of $5.2 million in salaries and wages and $1.0 million in stock-based compensation expense. The increase in cost of revenue was also attributable to a $4.0 million increase in amortization of capitalized software development costs, a $2.4 million increase in third-party cloud hosting and