Procore Technologies, Inc. (NYSE:PCOR) Q1 2024 Earnings Call Transcript

Unidentified Analyst: Understood. And just one follow-up. On the customer addition in the quarter, I mean, it seems like net adds is — continued to decel. Any additional color you can share there? Is that just a function of your efforts targeting the enterprise segment? And also, just curious how net adds have kind of performed across different geos versus your expectations?

Howard Fu: Your assumption is correct is that it is a function of us making that shift towards the upper end of the market, keeping in mind that most of our customer count is going to be concentrated down market in the SMB. Now there still is likely a bit of a macro challenge impact in terms of the SMB customer count. But it is that and our focus and our shift towards the upper end of the market. The other thing to keep in mind is, one, it’s not — customer count is not something that we actively manage to. I’d rather point you to our actual gross retention rate which is still in the healthy mid-90% range or 95%. And that is indicative of actually customers not leaving us. And so that’s a much better number to look at.

Operator: That concludes all questions. I would now like to pass the conference over to the management team for closing remarks.

Matthew Puljiz: Thanks, everybody. Talk soon.

Operator: That concludes the Procore Technologies, Inc. fiscal year ’24 q1 earnings call. Thank you for your participation and enjoy the rest of your day.