Company: PCOR
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001611052-25-000007
Chunk: 61

Company: PROCORE TECHNOLOGIES, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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24DollarPercent(dollars in thousands)Revenue$634,551 $553,775 $80,776 15%

During the six months ended June 30, 2025, our revenue increased by $80.8 million, or 15%, compared to the six months ended June 30, 2024, of which approximately 70% was attributable to revenue from existing customers and approximately 30% was attributable to revenue from new customers acquired during the six months ended June 30, 2025. The increase in revenue from existing customers includes the net benefit of a full six months of subscription revenue in the first half of 2025 from customers that were newly acquired or expanded their subscriptions in 2024 and continued or expanded their subscriptions, as applicable, in the first half of 2025.

Cost of Revenue, Gross Profit, and Gross Margin

Six Months Ended June 30,Change20252024DollarPercent(dollars in thousands)Cost of revenue$132,658 $93,824 $38,834 41%Gross profit501,893 459,951 41,942 9%Gross margin79%83%

The increase in cost of revenue during the six months ended June 30, 2025 was primarily attributable to an increase of $16.7 million in personnel-related expenses, including increases of $14.6 million in salaries and wages and $2.0 million in stock-based compensation expense. The increase in cost of revenue was also attributable to a $10.7 million increase in amortization of capitalized software development costs, a $7.3 million increase in third-party cloud hosting and related services as we grow our customer base, and a $3.6 million increase in amortization of developed technology intangible assets. We increased our cost of revenue headcount by 22% since June 30, 2024, as we continue to invest additional resources in customer support, implementation, and software development to grow our business, evolve our GTM operating model, and ensure that our customers are realizing the full benefit of our products.

Operating Expenses

Six Months Ended June 30,Change20252024DollarPercent(dollars in thousands)Sales and marketing$280,581 $248,916 $31,665 13%

The increase in sales and marketing expenses during the six months ended June 30, 2025 was primarily attributable to an increase of $22.8 million in personnel-related expenses, including increases