Procore Hits $1.5B ARR with 16% Growth, Acquires DroneDeploy for $845M

The Gist

• Procore achieved $375M Q2 revenue, beating guidance by 3%.
• First GAAP operating profit in company history at 1% margin.
• Acquired DroneDeploy for $845M, paying 11x revenue.
• Net revenue retention steady at 106%, gross retention at 95%.
• Leadership overhaul complete with new CEO, CFO, and CRO.

• Procore achieved $1.5B ARR with 16% growth and acquired DroneDeploy for $845M to expand its AI capabilities.
• Procore's GAAP operating income turned positive for the first time in company history.
• Procore's net retention is 106%, indicating expansion is the constraint rather than churn.
• Procore is focusing on acquisitions (DroneDeploy and Datagrid) to expand its product surface and offset labor shortages.
• Procore's international growth accelerated to 19%, a bright spot in their revenue mix.
• Procore initiated FY27 non-GAAP operating margin guidance of 25%, signaling a focus on profitability over growth reacceleration.

• Evaluate acquisition opportunities to expand product capabilities and address growth constraints.
• Focus on improving net retention by identifying new expansion vectors beyond core product usage.
• Monitor international growth as a potential area for investment and expansion.
• Balance growth and profitability by setting clear margin targets and optimizing operational efficiency.

• $1.5B (Procore's ARR)
• 16% (Procore's revenue growth)
• $845M (Acquisition cost of DroneDeploy)
• 106% (Net retention rate)
• 95% (Gross retention rate for five straight quarters)
• 25% (FY27 non-GAAP operating margin guidance)