Company: PCOR
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001611052-25-000007
Chunk: 112

Company: PROCORE TECHNOLOGIES, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 112
---
941 8%Gross margin79%83%

The increase in cost of revenue during the three months ended June 30, 2025 was primarily attributable to an increase of $8.6 million in personnel-related expenses, including increases of $7.4 million in salaries and wages and $1.1 million in stock-based compensation expense. The increase in cost of revenue was also attributable to a $5.4 million increase in amortization of capitalized software development costs, a $3.1 million increase in third-party cloud hosting and related services as we grow our customer base, and a $1.9 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

Three Months Ended June 30,Change20252024DollarPercent(dollars in thousands)Sales and marketing$141,897 $127,922 $13,975 11%

The increase in sales and marketing expenses during the three months ended June 30, 2025 was primarily attributable to an increase of $12.2 million in personnel-related expenses, including increases of $10.3 million in salaries and wages and $1.9 million in stock-based compensation expense. The increase in sales and marketing expenses was also attributable to a $3.3 million increase in professional fees, including increases of $2.0 million for contractors to supplement our staff levels and $1.1 million for professional service fees. We increased our sales and marketing headcount by 7% since June 30, 2024 to support our GTM operating model.

38

Three Months Ended June 30,Change20252024DollarPercent(dollars in thousands)Research and development$88,902 $72,308 $16,594 23%

The increase in research and development expenses during the three months ended June 30, 2025 was primarily attributable to an increase of $13.0 million in personnel-related expenses, including increases of $9.2 million in salaries and wages and $3.6 million in stock-based compensation expense. The increase in research and development expenses was also attributable to a $2.5 million increase in computer software expenses. We increased our research and development headcount by