Company: PCOR
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050149
Chunk: 126

Company: PROCORE TECHNOLOGIES, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 126
---
 the business. Acquisition-related expenses include external and incremental transaction costs, such as legal and due diligence costs, and retention or other compensation payments. These expenses are unpredictable and generally would not have otherwise been incurred in the 

44

periods presented as part of our continuing operations. In addition, the size and complexity of an acquisition, which often drives the magnitude of acquisition-related expenses, may not be indicative of such future costs. We believe excluding acquisition-related expenses facilitates the comparison of our financial results to our historical operating results and to other companies in our industry. Overall, we believe it is useful to exclude these expenses in order to better understand the long-term performance of our core business and to facilitate comparison of our results period-over-period and to those of peer companies. 

The following tables present reconciliations of our GAAP financial measures to our non-GAAP financial measures for the periods presented:

Reconciliation of gross profit and gross margin to non-GAAP gross profit and non-GAAP gross margin:

Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(dollars in thousands)Revenue$338,851 $295,885 $973,402 $849,660 Gross profit270,089 240,931 771,982 700,882 Stock-based compensation expense6,155 4,188 17,291 11,056 Amortization of acquired technology intangible assets7,659 6,698 23,276 18,739 Employer payroll tax on employee stock transactions181 113 642 485 Non-GAAP gross profit$284,084 $251,930 $813,191 $731,162 Gross margin80%81%79%82%Non-GAAP gross margin84%85%84%86%

45

Reconciliation of operating expenses to non-GAAP operating expenses:

Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(dollars in thousands)Revenue$338,851 $295,885 $973,402 $849,660 GAAP sales and marketing$144,290 $141,370 $424,871 $390,286 Stock-based compensation expense(16,658)(14,034)(49,197)(42,725)Amortization of acquired intangible assets(3,346)(3,224)(9,998)(9,475)Employer payroll tax on