Company: PCOR
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021898
Chunk: 122

Company: PROCORE TECHNOLOGIES, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 2
Chunk 122
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 attributable to revenue from existing customers and approximately 17% was attributable to revenue from new customers acquired during the three months ended March 31, 2025. The increase in revenue from existing customers includes the net benefit of a full quarter of subscription revenue in the first quarter of 2025 from customers that were newly acquired or expanded their subscriptions between the beginning of the first quarter of 2024 and the end of the fourth quarter of 2024 and continued or expanded their subscriptions, as applicable, in the first quarter of 2025.

Cost of Revenue, Gross Profit, and Gross Margin

Three Months Ended March 31,Change20252024DollarPercent(dollars in thousands)Cost of revenue$64,926 $45,723 $19,203 42 %Gross profit245,706 223,705 22,001 10 %Gross margin79 %83 %

The increase in cost of revenue during the three months ended March 31, 2025 was primarily attributable to an increase of $8.1 million in personnel-related expenses, including increases of $7.1 million in salaries and wages and $0.9 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 $4.2 million increase in third-party cloud hosting and related services as we grow our customer base; and a $1.7 million increase in amortization of developed technology intangible assets. We increased our cost of revenue headcount by 22% since March 31, 2024, as we continue to invest additional resources in platform hosting, 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.

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Operating Expenses

Three Months Ended March 31,Change20252024DollarPercent(dollars in thousands)Sales and marketing$138,684 $120,994 $17,690 15 %

The increase in sales and marketing expenses during the three months ended March 31, 2025 was primarily attributable to an increase of $10.6 million in personnel-related expenses, including increases of $8.8 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 $3.9 million increase in professional fees, including increases of $2