Company: PCOR
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021898
Chunk: 126

Company: PROCORE TECHNOLOGIES, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 2
Chunk 126
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 our core operations, operating results, revenue-generating activities, business strategy, industry, or regulatory environment, management does not consider employer payroll tax on employee stock transactions in the evaluation of the business or in making operating plans. Accordingly, we believe this adjustment in arriving at our non-GAAP measures provides investors with a better understanding of the performance of our core business in a manner that is consistent with management’s view of 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 

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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 March 31,20252024(dollars in thousands)Revenue$310,632 $269,428 Gross profit245,706 223,705 Stock-based compensation expense5,268 3,185 Amortization of acquired technology intangible assets7,602 5,885 Employer payroll tax on employee stock transactions261 212 Non-GAAP gross profit$258,837 $232,987 Gross margin79 %83 %Non-GAAP gross margin83 %86 %

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Reconciliation of operating expenses to non-GAAP operating expenses:

Three Months Ended March 31,20252024(dollars in thousands)Revenue$310,632 $269,428 GAAP sales and marketing138,684 120,994 Stock-based compensation expense(14,950)(13,020)Amortization of acquired intangible assets(3,305)(3,106)Employer payroll tax on employee stock transactions(1,131)(1,264)Acquisition-related expenses(656)(448)Non-GAAP sales and marketing$