Good day, and thank you for standing by. Welcome to the FY 2021 Q2 earnings call. I would now like to hand the conference over to your speaker today, Matt Puljiz, Vice President, Investor Relations at Procore. Thank you. Please go ahead. Thanks. Good afternoon, and welcome to Procore's 2021 second quarter earnings call. With me today are Tooey Courtemanche, Founder, President, and CEO, and Paul Lyandres, CFO. A complete disclosure of our results can be found in our press release issued today, which is available on the investor relations section of our website. Today's call is being recorded, and a replay will be available following the conclusion of the call. Comments made on this call may include forward-looking statements regarding our financial results, products, customer demand, operations, the impact of COVID-19 on our business, and other matters. These statements are subject to risks, uncertainties, and assumptions and are based on management's current expectations as of today, August 5th, 2021, and may not be updated in the future. If this call is replayed or viewed after today, the information presented during the call may not contain current or accurate information. Therefore, these statements should not be relied upon as representing our views as of any subsequent date. We'll also refer to certain non-GAAP financial measures to provide additional information to investors. The reconciliation of non-GAAP to GAAP measures is provided in our press release. With that, let me turn the call over to Tooey. Thanks so much, Matt. Hello, everyone. Thank you all for spending time with us today. I'm Tooey Courtemanche, Founder, President, and CEO of Procore. I'm happy to be with you today to share my thoughts on our company, our opportunity, and our Q2 performance. Given that this is our first earnings call, I'd like to take a moment and provide an overview of the company and the industry that we serve. I've always been passionate about building things, and throughout my career, I've straddled two worlds that often felt disconnected: construction and technology. My love for construction started when I was young. In middle school, I had the opportunity to apprentice at a cabinet shop. While in high school, I got the chance to work on construction sites as a journeyman carpenter. Years later, I jumped at the chance to work as a real estate developer before discovering the world of software. Being immersed in the Silicon Valley tech boom inspired me to found my first startup. It showed me firsthand the impact that digital transformation could have on many different industries. Several years later, I found my way back into construction when I started building my own home. I was shocked to discover that despite the sweeping impact technology was having across most sectors, that the construction industry still largely relied on manual processes. Across the industry, inefficient practices and costly rework led to uncertain profitability and immense physical waste. That's when I became obsessed. Obsessed with the idea of helping to transform the industry that I grew up in and love. I started Procore based on my steadfast belief in the power of connecting people through technology to transform this industry and to improve the lives of everyone in construction. For the past 19 years, Procore has partnered with one of the world's most important industries, ushering it into the digital age. Our mission of connecting everyone in construction on a global platform has never felt more urgent or inevitable. Like so many other industries, the pandemic had a significant impact on construction. The challenge of remote work and the need for greater efficiencies validated the importance of our mission and has begun to accelerate the rate at which digital transformation is occurring in construction. Procore is the trusted partner to lead this transformation with our customers and ultimately the entire industry. In summary, we build the software for the people that build the world. The construction industry is just massive, making up 13% of the global GDP and 7% of the global workforce in 2017. It's responsible for building the world around us, and that challenge is only growing. Over the next 40 years, the UN estimates that we'll have to build over 2.5 trillion, with a 'T', square feet of new construction just to keep pace with population growth. That's like building a city the size of New York every single month for the next 40 years. Furthermore, while COVID has been a once-in-a-century disruption to the construction industry, it's enabled an increasingly mobile workforce. With greater workforce mobility comes need for more construction to build infrastructure, workspaces, and homes in large city centers and less dense areas. As the demand for construction grows, so does the spending. By 2025, annual global construction spend is estimated to reach $14 trillion. Growth does not equal productivity. In the last two decades, construction saw an average of only 1% labor productivity growth annually. That's one-third of the average of the global growth rate. Our customers are telling us it's only getting harder to get projects done on time and on budget. What makes construction so fundamentally difficult? First of all, it's a custom business. Every project is a prototype, never to be built again. Imagine if the auto industry worked like construction. A consumer could design a car with seven wheels and four windshields and 11 bumpers, they could tell the automaker, "I need this done in 10 months, or else you're going to owe me money, and in the end, we're likely going to end up in litigation anyway." That's simply how construction works today. Second, the workforce is mobile and decentralized. Construction happens both in the field and at the office. All the stakeholders involved are working on different pieces of the same project at the same time. That's why mobile real-time access to data is so critical. Stakeholder dynamics are complex. There are multiple groups coming together to deliver a project, and it's likely that they've never worked together before. On top of that, they often have conflicting business interests. They're all dependent upon each other, and ultimately, they all share the risks. Finally, change is constant. Designs, schedules, and budgets are affected by real-world conditions or decisions made during the process of building. The folks who power this industry navigate massive complexity, constant uncertainty, and unending risk. That's why the construction industry needs a platform tailor-made for each stakeholder, and that's why the time is now for Procore. To understand why, let's look at the catalysts enabling the industry to enter the digital age. First, technology could not drive change in this industry without mobile and Wi-Fi, neither of which made it to the job site until around 2012. Today, approximately 93% of construction workers use a smartphone every single day. Second, there's a massive labor shortage, and this cannot be overstated. This is the number one issue I hear from our customers. Even during the pandemic, 83% of contractors are having a hard time finding skilled workers. Third, there's growing regulatory and contractual complexity in construction. In my lifetime alone, regulations have increased elevenfold. We're talking about thousands of regulations, from health and safety to environmental and compliance to much, much more, and COVID has only added to this list. Finally, data is severely underutilized. Actionable data is going from being a competitive advantage to a must-have, and yet around 96% of all engineering and construction data goes unused. McKinsey reports that construction firms could increase their productivity by as much as 50% by implementing cloud-based tools to aggregate and analyze even a small portion of their data in real time. Look, this industry is complex, and the problems are big. Construction is high risk, low margin, and carries the weight of building the world around us. It needs technology that's up to the task. Let me be clear, the industry has no shortage of technology at its disposal. The problem is that construction is collaborative at its core, and this technology has been siloed and disjointed by its nature. These siloed solutions, whether point solutions or a group of construction management tools stitched together by a few large aggregators, ultimately create new challenges. Valuable data becomes trapped in silos, and stakeholders can't gain access to actionable real-time information. Even with all of this technology available, 50% of the industry still relies on analog solutions like pen, paper, and spreadsheets. We believe to transform this industry, all stakeholders need to be connected on one easy-to-use platform that facilitates and automates complex workflows spanning multiple stakeholders and tools. It needs to be backed by best-in-class support. We started our journey with our project management solution, the success of which planted the seeds for our platform. We now have 13 products across four categories, including pre-construction, project management, resource management, and financial management, all of them built on a single platform. The platform value comes from how these products seamlessly connect owners to GCs, to specialty contractors across complex workflows. We connect everyone to the tools that they need to get the job done while breaking down the communication and data silos that have been holding the industry back. Our platform provides a real-time consolidated view of the entire project and a single source of accurate data, reducing miscommunications, errors, and rework. All the data lives in one place, we're able to provide customers with actionable insights to help them continually improve and run better businesses. While our platform focuses on solving the construction's most foundational and impactful challenges, our vast ecosystem of integration partners extends the functionality of our platform to deliver even greater value to our customers. Today, I'm really excited to share that we have over 300 partners in our marketplace that seamlessly connect with our platform, further allowing our customers to connect all their people, systems, and data in one place. Our ecosystem has also been a great source of strategic acquisitions. We have deep relationships with our marketplace partners, which provides us with significant visibility into customer adoption, quality of their technology, and the strength of their company culture. These insights are invaluable as we selectively pursue M&A opportunities to expand our relationships with our customers while also accelerating our long-term business goals. Look, I come from this industry, and I know that being a leader in construction technology, it's not just about building the best products and services for the industry. It's about being a true partner. Our connected platform, focus, and dedication to partnership are what sets us apart. At Procore, we live and breathe construction. It's our only focus, and our products and our business models are purpose-built for it. Our annual construction volume pricing means we offer unlimited seat licenses to our customers. This means that our customers can invite every project team member to use Procore, whether they're a paying customer or not. This is critical because if a project's going to be successful, all team members must communicate effectively. If just one project team member doesn't have access to the right information, the workflows break, period. Our customers don't have to sacrifice communication to save on costs. We know that the seat license pricing models are antithetical to how projects are built. We even offer unlimited support to every single user on the project, not just paying customers, and this support is provided by construction experts, and as a result, is award-winning. We have maintained a customer satisfaction score of over 90% for years, and our average response time for customer requests is provided in under 60 seconds. Look, the pain I felt building my home was the genesis of Procore's mission to connect everyone in construction on a global platform, and the key word here is everyone. Our unlimited user model is valuable to our customers in the near term, but it also creates an incredible long-term opportunity for our customers and the industry. Procore's go-to-market strategy and business model are designed to encourage rapid adoption and facilitates a flywheel effect. Our customers can invite everyone that they work with onto our platform. Because of this, over 60% of the users on our platform are non-paying, and we call these folks collaborators. They represent potential customers who may advocate for Procore on future projects or help convert companies into paying customers. The data generated by our users creates powerful insights for our customers. Our platform collects granular data like costs, materials, safety outcomes, and much, much more in real time. This data represents a valuable and unique asset for our stakeholders. The more users we have on the platform, the more meaningful our data becomes. Procore represents an incredible opportunity to transform one of the largest, oldest, and most important industries on Earth. For me, the past two decades have been a deeply personal pursuit to revolutionize the industry that I love. We're just getting started, and we feel fortunate to be at the heart of transforming this essential industry. For those looking for a great example of this transformation, please check out the video that we published on our website showcasing our customers, McCarthy Building Companies and Mortenson, and their efforts to build Allegiant Stadium in Las Vegas, Nevada. It is truly remarkable that they were able to finish a project of that size and complexity ahead of schedule and under budget by connecting everyone on the Procore platform. Now let's discuss the second quarter in more detail. Q2 marked the one-year anniversary of the pandemic, not only for Procore, but for the entire construction industry. I talk to our customers almost every day, and what's clear to me is that there is significant optimism and that things are trending in the right direction. Customers tell me that their backlogs are healthy, getting stronger, and that they're eager and excited about the work ahead. That being said, there are still pockets of challenges. In the near term, supply chain disruptions, commodity shortages, and price increases are all putting significant pressure on already low-margin businesses. The skilled labor shortage has been a chronic issue affecting the construction industry for many years, and it continues to impede the industry's ability to keep up with demand. These challenges further emphasize the importance of finding ways to do more with less and to work more efficiently. In speaking with our customers, many have told me that Procore's enabled them to transition seamlessly to this new working model and has provided the efficiency gains they've long needed. We've been working to address these industry challenges in various ways for years, and one recent example is our partnership with Lowe's. This partnership is designed to streamline materials procurement for general and specialty contractors by offering Procore customers a discount on material purchases. Procore customers in the United States can access Lowe's in-store and online products at a 5%-20% tiered discount. Now I'd like to share some additional updates from the quarter. We ended Q2 with 11,149 customers, and we grew revenue to $122.8 million, up 27% year-over-year. We are also initiating full-year revenue guidance of $499 million at the high end of the range. Here are some notable customers I'd like to share who contributed to this growth. In Q2, we closed one of our largest European customers that's a leader in sustainable energy. They employ over 25,000 people globally and have over 65,000 wind turbines across 12 countries. They chose Procore because they needed a solution that was easy to use in the field and integrated well with their back office. They valued our deep knowledge of the construction industry and our strong references in the renewable energy space, and our app marketplace, which extends our platform capabilities without the need for custom development. Once Procore is fully rolled out, they plan to build all future wind turbines using Procore. We are excited to further expand our footprint within the sustainable energy build-outs, which is a large and growing area for us. Gray Construction, an ENR top-ranked general contractor here in the U.S., became a new customer who moved to us from a competitive solution that did not meet their needs. They migrated to Procore because they were looking for a true partner that is collaborative and is invested in their success. This became evident as we cultivated a strong relationship with one another during their evaluation. Additionally, the team at Gray was impressed with the rapid adoption of Procore tools by their teams in the field during the pilot. They also noted how easy our products were to use by their field teams. Standardizing on Procore is going to enable the team at Gray to share data and knowledge across all projects and enable their teams for success. One of the largest municipal utilities in the U.S. meaningfully expanded their relationship with Procore in the quarter. This agency serves a few million residents and needed greater visibility and workflow controls over their projects. Prior to Procore, they didn't have full visibility into project tracking, and partial sharing of information by projects teams was leading to unexpected change orders. Projects were consistently coming in over budget and behind schedule. Procore was selected to be the system of record now for all of their projects. Procore will unlock the existing data silos and help deliver projects on time, on budget, and within compliance. We also continue to expand internationally as our percentage of revenue from international has steadily increased. While we already have customers all over the globe, we recently announced our formal expansion into the UAE and Singapore. This means that we're now focused on nine countries. Earlier I shared that the global construction market is projected to grow to $14 trillion in 2025. Most of that growth will happen internationally. It's just a massive opportunity. We have lots of room for expansion within these existing markets. We're going to add more countries in the coming years. We are continuing to invest in expanding out our platform capabilities and product offerings to deliver greater value to our customers. In Q2, we made some notable announcements I'd like to highlight, particularly in our financial management offering. These tools provide accurate and real-time data insights into the financial health of construction projects while connecting entire projects teams on a single secure platform. The new tools include advanced forecasting to better forecast cash flow, improved financial reporting with robust and flexible work breakdown structure, the ability to connect time and material tickets to change orders, and an enhanced ERP connector platform. The team is doing great work on expanding our offering. Look, it's not just about how many features we ship. What's most important to me is how these solutions ultimately improve the lives of our customers. I was just down in San Diego with a client who shared that for a decade, they have been searching for a financial solution for their field teams that could integrate with their back office. I was really proud to hear how Procore solved this problem for them. They can finally connect their systems. They have a 360-degree real-time view of their jobs. These are the types of stories that get me fired up and motivated every single day. In summary, Q2 was a very successful first quarter for Procore as a public company. We are very pleased with our performance and excited about the customers that began their partnership with us. We enhanced our products and integrations, as well as expanded international. The funds that we raised from our recent IPO will provide capital to continue to invest in our growth. Additionally, it created new relationship with shareholders that I personally look forward to working with over the coming years. I'd also be remiss if I didn't give a huge big thank you to our employees. I am humbled by your unwavering commitment to our customers and our industry. You rise to every challenge, and you raise the bar every single day. I'm grateful to have you here at Procore helping us transform this industry. I also want to give a big thank you to our customers and the industry that we serve. Many of you have been with us for years, and your partnership and insights have helped shape Procore into what we are today. You're building the world around us, and we're honored to be working alongside you. Before I hand it over to Paul, I do want to encourage all of you to join us at Groundbreak on October 12th through 14th. Groundbreak is our annual construction conference where industry leaders from all over the globe come together to learn, network, and shape the future of construction. It is such a powerful event. These are the leaders who are building new horizons in safety, inclusion and diversity, technology, workforce development, and they're coming together to find creative and innovative solutions to construction's biggest challenges. We call these folks Groundbreakers, and we are humbled every day to work alongside them all. We encourage you to join us this October. Now I'd like to hand it over to our CFO, Paul Lyandres. Thanks, Tooey, and thank you to everyone for joining us today. First and foremost, I'd like to reiterate Tooey's comments recognizing the entire Procore team for all they've accomplished in our journey to become a public company. Though we are only getting started, without your collective determination and dedication, we wouldn't be here today. I'd also like to welcome and thank our new shareholders. Your partnership goes a long way in helping us transform and support one of the oldest, largest, and least digitized industries in the world. As Tooey mentioned earlier, we had a strong quarter in Q2 with solid execution across the business. Before I talk about the quarter, as this is our first earnings call, I'd like to spend a few minutes outlining Procore's business model and go to market. I want to start by reviewing our pricing model because, as Tooey mentioned, we see our unlimited user pricing model as a key part of achieving our mission of connecting everyone in construction on a global platform. Unlike many software companies, we do not price based on individual users. We base price on the construction volume a customer will run on our platform and the mix and number of products that they buy. Not only does this allow for unlimited users to collaborate on a project, but it is also how our industry thinks about their capacity to build, how they buy their insurance, and think about their profits. Once an annual subscription price is determined, we recognize revenue daily over the contract term. We do not charge our customers based on consumption or on a per-project basis. Nearly all of our customers sign up for annual or multi-year contracts, and our revenue is nearly all subscription, providing us with excellent visibility and predictability into the business. We organize our go-to-market by stakeholder, region, and size. Our tailored and focused approach is a big reason why we are able to have such close partnerships with our customers. The three stakeholders we serve are owners, general contractors, and specialty contractors. Each of these stakeholders are critical to the overall success of the job and require constant collaboration for a project to be successful. While each of these stakeholders share common challenges, they each possess unique characteristics that are best served via dedicated personnel. In terms of geographic expansion, we initially focused our go-to-market in the U.S., as it had the strongest product market fit. We began a more deliberate international expansion in 2018 and have seen continued success overseas since then. Outside of the U.S., we currently have a focus on Canada, Mexico, the U.K., Ireland, Australia, New Zealand, Singapore, and the U.A.E., with intentions to expand further and leverage these operations to service the broader regions across EMEA, APAC, and Latin America. In addition to stakeholders and geography, we also operate our business by customer size. We serve stakeholders with a few million in construction volume to the largest builders in the world, overseeing billions in annual volume. We operate our go-to-market on the same metric we price our customers, the annual construction volume they manage. We define the emerging category as firms with annual construction volumes of $2.5 million-$20 million. Mid-market customers are defined as firms between $20 million and $100 million in annual construction volume, while enterprise customers are defined as firms with construction volumes greater than $100 million. Today, each of these stakeholders, geographies, and segments represent material opportunities within Procore, though all of them are still early in their market penetration, and we believe we have meaningful runway across these dimensions. Let's turn to our second quarter results. Overall, we are pleased with the performance in the quarter as we saw growth across every geography, segment, and stakeholder that we serve today. A few things in particular I want to call out with respect to Q2. First, as Tooey mentioned, customer sentiment continues to improve. Practically, this means we are beginning to see retention trends gradually return to more normalized levels. Additionally, customers are increasing versus decreasing their forecasted construction volume as their sentiment and backlog improve. Second, our international performance is strong. We continue to see increasing demand across all our geographies and remain excited about the potential of these markets going forward. International now represents 14% of total revenue, which is an increase of 200 basis points year-over-year. Third, related to the enhancements within our financial management offerings that Tooey mentioned, we are continuing to see strong customer demand and momentum and are pleased with the product attach rates we saw in the quarter for our financial offerings. Lastly, M&A continues to be a core focus area for us. We are excited about the customer reception we have received since acquiring Esticom and INDUS.AI, and continue to be on track with respect to our plans to integrate both businesses. We remain committed to ensuring we deliver a single connected platform, as we believe a connected ecosystem is critical to the success of all stakeholders in construction. Now, let's dive into the specific financial outcomes for Q2. Revenue in the quarter was $122.8 million, up 27% year-over-year. Total customers grew to 11,149, up 19% year-over-year. With respect to expenses, gross margin was 84% in the quarter, representing a year-over-year improvement of 100 basis points. Recall that gross margin includes expenses associated with supporting not only our paying users, but also our collaborators. Our sales and marketing spend came in at $55.4 million, up 42% year-over-year. We see the industry recover, as well as the opportunity within current and future markets, we will continue to invest to enable sustained growth. Additionally, we continue to invest in R&D, which was $34.9 million, up 43% year-over-year. As you can see from our historical financials, R&D has been a priority for us, we intend to continue this effort. The construction industry has no shortage of opportunities for software to drive efficiencies. We are in the early days of transforming this industry and do not intend to slow down our investments in existing and new products, nor deepening the robustness of our platform as we look to further drive innovation. Moving to G&A, which came in at $18.8 million, growing 56% year-over-year. Our biggest investment areas in G&A were focused on scaling our operations for public company readiness and to support the sustained revenue growth. Overall, these investments led to an operating loss of $5.5 million, representing an operating margin of negative 4%. Finally, operating cash outflow was $3.1 million. CapEx was $1.8 million, capitalized software was $3.5 million, all leading to free cash outflow of negative $8.4 million. Before I turn to guidance, as you review our results and outlook, note that our year-over-year trends are impacted by the comparison periods from 2020. If you recall, Q2 of 2020 was an incredibly challenging period for the construction industry as a result of COVID-19. The industry began to see incremental improvements as we entered Q3 of last year, with more meaningful improvement continuing through Q4 of 2020. It's important to note that our performance is correlated to the industry's performance. As a result, our compare periods will have atypical trends, which investors should take into consideration when evaluating 2021 year-over-year growth. With that, I'd like to provide context to our guidance. Our financial philosophy is to prioritize growth while also focusing on the long-term opportunity in front of us. Though the industry recovery may be gradual, we intend to invest and build for the future. Our guidance reflects this investment philosophy, while also considering that expenses will ramp slower than we had originally anticipated. This is primarily due to the remaining uncertainties around the pandemic, delaying both return to office, T&E, as well as the increasingly competitive hiring market facing the entire technology industry today. The rationale driving this strategy is to not only benefit from the industry's recovery, but also our unwavering belief this is an industry that will continue to grow, and the only path to meeting their end demand is by getting more efficient and leveraging technology. In short, this is a tremendous opportunity, and we have grand ambitions to be the industry's leading partner. Our guidance for Q3 and FY 2021 is as follows. For the third quarter, we expect revenue to be $125 million-$127 million, while non-GAAP operating margin is expected to be -7% to -8%. For the full fiscal year, we expect revenue to be $496 million-$499 million, while non-GAAP operating margin is expected to be -6% to -7%. I'd like to close by again sharing my gratitude to the industry, our partners, employees, as well as the communities we serve for giving us this opportunity. Now, let's turn it over to the operator to begin the Q&A session. As a reminder, to ask a question, you will need to press star one on your telephone. For our first question, we have Sterling Auty from JP Morgan. Sterling, your line's open. Thanks. Hi, guys. To get us started, you talked about the improving sentiment out of your customers, improving pipelines, but then talked about the challenges that they're facing in the supply chain. Are you concerned at all that those supply chain risks may actually start to bubble up and cause projects to get put on hold? Hey, Sterling. It's Tooey. Yeah. No, to answer your question, as you know, I say this all the time, I get the chance to talk to our customers every single day, and prospects as well. Look, there are some headwinds, definitely. Supply chain is one, the commodity prices is another. What I find so fascinating is pretty much across the board, everyone I talk to has a very positive sentiment, primarily around their backlog. That's all of the future work that they're going to get. Their biggest challenges that they talk about are staffing. Just finding the right people to do the work. It tends to be when I ask them to force rank their challenges, that seems to be it. When they talk about their backlog, they're very excited about the opportunity ahead. As you probably know, but I'll explain it to everybody, backlog is future work, but future work has to become shovel-ready. It has to actually turn into an actual project before it flows through the Procore. It leaves us very optimistic about the future, and I do think that these challenges around supply chain and materials pricing are somewhat temporary, and they seem to be getting better, but I'm not a predictor of the future. Again, the sentiment is very positive. That's good to hear. One follow-up question, Tooey, for you. Payments was something that investors during the roadshow were very interested in. Can you give us a sense of where you see Procore participating in the payments opportunity within the construction industry? Absolutely. Well, it's not a matter of if, Sterling, it's a matter of when with payments. As I mentioned on the roadshow, this is something that is a priority for Procore. We have to get it right, so we're going to take our time, and we're staffing up for it. Just want to set the expectation that it's not in any of the models that we've shared with you all, but it is coming. I just would say that we're still building the team at this point, and we're looking forward to keep asking the questions, and I'll keep giving you the updates. Sounds good. Thank you, guys. Thanks, Sterling. For our next question, we have Saket Kalia from Barclays. Saket, your line's open. Okay, great. Hey, guys. Thanks for taking my questions here, and congrats on becoming a public company. Thanks, Saket. Thanks, Saket. Appreciate it. Well, hey, maybe first for you, Tooey. Can you just talk a little bit about customer interest across the portfolio? I think the project management part of the business has always been popular, but can you just talk a little bit about interest across the other three product families, meaning pre-construction, resource management, financials, maybe just broad brushes? Sure. Well, yeah. No, absolutely. We've mentioned this before, I think the best way to look at this is By the way, I should say thank you for asking this question, because we are so much more than a project management tool for general contractors. The way we look at this is if you looked at any one of those product lines, the older product lines, like project management, are going to be bigger businesses, of course. They've just been in market longer than the other ones. The newer ones are still smaller, but they're growing faster. The other way to look at it too is we get kind of pigeonholed to being project management for general contractors. When you look at our stakeholders across owners, general contractors, and specialty contractors, the owners and the specialty contractors businesses are big as well. I'd never want to miss the opportunity to explain the breadth of what we're doing. As you remember, our mission is to connect everyone in construction on a global platform. That's why we have this kind of a broad view of everything. Now, I mentioned in the lead into this, that on the financial management side, I would say that that product, we have some exciting announcements that I had mentioned. It definitely is a product that is changing and creating a category. I'm just kind of heartened by the adoption rates that that product gets. That's great. Very helpful. Maybe for my follow-up for you, Paul, it's great to see the billings growth this quarter. I think it was 40%. Can you just talk about, just high level, billings as a metric, and what we should sort of keep in mind on that metric in terms of puts and takes or just anything you want us to know about billings as a metric as we sort of gauge the health of the business? Yeah, no, I appreciate the question, Saket. We certainly understand that investors are going to use that to evaluate how to think about the quarter, but we do caution them not to overly rely on them. It is not a metric that we manage the business to. It is a metric that is based on invoicing, and by nature of that, it does have quite a bit of noise, particularly from any quarter-to-quarter period. It's especially important, as you heard me say in the earnings earlier today, that there's going to be some atypical compare periods. Remember, Q2 was a really rough period for the industry, and of last year, I should say, and it only got better from there. Because of that, you will see very strange atypical pairs, and I would caution you all to not overly rely there specifically this year. Got it. Very helpful. I'll get back in queue. Thanks, guys. Thank you. For the next question, we have Kash Rangan from Goldman Sachs. Kash, your line's open. Thank you very much, and hearty congratulations on becoming a public company. That's awesome. Thank you. One for you, Tooey. Thank you. You're most welcome, Tooey. One for you, Paul. Tooey, when you look, you talked about construction, $14 trillion opportunity, I believe counting 2025. Broadly, how much of that spending do you think Procore could target realistically with your current product portfolio? Just hypothetically, if you would, just a few more minutes per second. If you had all the distribution in the world and you could target realistically what the product could solve for customers, how much of that spend do you see as being applicable to Procore? Over the long term, if I do some rough math, again, it's just monkey math, call it $500 million run rate business, you got 11,000+ customers. It would seem to me that you're collecting roughly 10, 12, 13 basis points of construction volume. As you expand your value over the long term, what percentage or how many basis points of the construction spending do you see yourself capturing? That's for you, Tooey. I know that's a lot, so I'll pause. That's fine. Again, great question on that one, Kash. Thank you. The way Procore has approached solving the problems for the industry is we've always focused on solving the most foundational problems. When you think about project management and resource management, well, just when you think about project management, that is the core. You can't tell me about a project that doesn't require some form of project management. That's what the nature of projects are. Resource management allows you to manage your people, and financial management allows you to manage your money. The pre-con tools basically lets you plan. Very little white space in terms of what Procore can address globally in the construction world, which is why we have always stayed so focused on what we're doing. Remember, our business model was made for the industry. We have our unlimited seat license model and the unlimited support for all, and it just allows us to provide all of this value to, it doesn't matter, again, if you're an owner, GC, or sub. I think in particular, the industry is looking for a provider like Procore that's focused, that's a single platform, and also believes in partnership. I think that's essentially the value prop. Yeah. What was the second part of that question? Yeah. Over the long term, how many basis points of a construction project do you see yourself being capable of attaching from a revenue perspective? Let's say the starting basis, I know you've not published this, but let's say it's 10, 12, 13 or something. A fully penetrated client that's got all the sophistication that Procore has to offer, could you double your relative share of that construction wallet or triple? Maybe that's limited. Just some feel for how much that wallet share could be long term. Thank you. Yeah, Kash. I would caution you not to create an average because we sell to the high end of the market, to the low end of the market. We sell to owners, GCs, and subs. The averages don't work really well in this math. I'll let Paul kind of add to that because I know he has something. The other part, to echo Tooey's sentiment, that will skew the averages is the number of products a customer has. Recall that we are rapidly growing the number of products our customers have and our own product portfolio. We are rapidly introducing new products. While I would say that today, if you just look at the value of what we can get from our customers on top of the core module of project management, it is many multiples what we price for project management. At the same time, this is a constant evolution, and I think from our vantage point, we continue to believe that we are just scratching the surface in terms of the market share and the wallet share we can capture from a customer. Got it. Paul, the question for you is going to be, you said sentiment is improving, and people are feeling really good about backlogs coming up in later part of this year. In your forecast, are you assuming that kind of improvement, or are you looking at, you know what, let them sign up and let's just sign the contract and let them put the construction volume through our system, then I'll think about telling Wall Street crew to raise their numbers. Where are we in that? I think we are constantly trying to evaluate what's going on in the industry and be thoughtful. I do think that we look at the sentiment, we look at the leading indicators that you all see in the public domain, and we believe that that optimism will continue. At the same time, I will remind everyone that our industry is massive, and it does take time for things to move. We like to think of it more as an oil tanker and not a speedboat. We are being very cautious and thoughtful about the rate of that expansion, but we do believe that the sentiment is a good indicator of where the market is going. Wonderful. Thank you so much. Thanks, Kash. For the next question, we have DJ Hynes from Canaccord. DJ, your line's open. Hey, guys. Good start here. Congrats on the IPO and everything that's happened since. Tooey, I want to ask about the product roadmap as it pertains to the immense data asset you have, and I'm going to leave it intentionally open-ended. What are some of the most interesting things you could do with all the data that you see that you're not doing today? Sure. Well, I love that you brought that up because I think as you and I have spoken in the past about the data is a tremendous asset, both for our customers as we're able to reflect it back and allow them to make great decisions through insights and run better businesses. It does provide the ability for us to look at the industry in a much broader way and then to utilize this data. We have 1.6 million users plus on our platform, generating a ton of structured data like bidding and quality and safety and materials and labor costs. You think about labor productivity is a big one. Who knows more about how construction gets done than Procore? Yeah, there are a lot of opportunities. I don't really want to speculate on all of the future things that we can do with it, but the real value, DJ, is the fact that we do know about materials, we know about labor, we know about true costs. It really does get me fired up, as I mentioned on the roadshow. It's one of the areas where I'm spending a lot of my time and really kind of the exciting future for Procore. Yeah. I can imagine. Makes sense. Paul, just a quick follow-up for you. You mentioned some of the atypical compares as we look backwards into calendar 2020. Can you just talk about seasonality and customer adds? Are there any quarters or times of year that are stronger or weaker for Procore that we should be aware of? In general, I think we follow a pretty typical dynamic to our peers in the SaaS industry where we have stronger Q4s. In general, I wouldn't say there's any broad seasonality that I would point to. This, for me, when I talk about atypical, is much more a reflection of COVID-19 and how that impacted 2020 than it is to say a standard kind of seasonality that we see in our own business. Yeah. Perfect. Thank you, guys. Thanks, DJ. For the next question, we have Brent Thill from Jefferies. Brent, your line's open. Thanks. Paul, as it relates to this last quarter, it looks like you had a really good expansion quarter, looking at the numbers. I was just curious if you could unpack what was due to volume coming back, versus selling additional Procore products. Then, had a quick follow-up for Tooey. Yeah. It really is a combination of them both. When we go out to our new customers, we are having a broad conversation with them about their needs, their own growth plans, and how we can be a partner to them. When we think about it, we don't technically break it down by those two dynamics as much as we try to partner with our customers and do the best we can. Tooey had said, definitely we're pleased with our attach rates in the financial management product, but frankly, we continue to see great traction across our broader product portfolio. I had said that our customers are starting to see that optimism and that sentiment is translating to them expanding their vision on what they will do in the coming year around volume. It really was a combination of both. Tooey, you've been very clear that the vast majority of your TAM lives outside the U.S., where today is only 14% of revenue. How hard do you want to be on that approach to capture that international opportunity? Maybe back to Paul's super tanker versus, I forgot the other word he used. Speedboat. Thinking about speedboat, yeah. I guess maybe does that super tanker analogy apply to the international push? Well, I think just to clarify what Paul's talking about, the oil tanker is really just the speed in which once an economy is starting to spend on construction or increasing spend, the amount of time it takes for those dollars to become active projects and flow through Procore. Just to be clear. When I think about international expansion, which you're right, it kind of depends on how you slice the data, but you can make the argument that 90% of every construction dollar is spent outside of the United States. We definitely take it seriously. In fact, I would like to call out for Q2 our international team really performed well, and it's another area of the business I'm very proud of. We believe that our strategy starts with establishing beachheads in regional areas that are going to allow us to go, and our approach has always been, Brent, we don't want to dabble, right? We're not going to go in and just try to sell some software. When we go into a market, it is very intentional, and we go deep. We're establishing these beachheads because first and foremost, construction is very hyper-local, so it allows us to get closer to the buyer and the customer, number one. Number two is it gives us the ability to expand into those regions. I think you heard me say it before, but opening up the UAE and Singapore in Q2 is just another example of the kind of the pace in which we're going. Like I said, we're trying to do quality over quantity, but you're going to see more in the coming quarters. Thank you. Sure. Thanks, Brent. For the next question, we have Brent Bracelin from Piper Sandler. Brent, your line's open. Thank you, good afternoon, guys. I wanted to drill down into international a little bit more too. I know it's only 14% of the business, but as you think about how international's developing, what have you learned in the last couple of years? Is it kind of developing faster? You talked about the momentum this quarter. Love to just understand the pace of change there in light of the post-COVID and that type of business. Two, for Paul, I'd love to see if you could just break out the momentum of the business, the recovery, how much of it's driven on the commercial side versus on the corporate side. Is there any delineation on the pace of recovery by segment? That's really the two questions I had. Thanks. You got it, Brent. On the international front, I would say the learnings over the last few years have been that the fact that we, again, are focused on the foundational challenges of building, means that our product lines translate very nicely into each market that we go into. Everybody has to manage schedules, everyone has to manage budgets, everyone has to manage people. Everyone has to coordinate their projects. It fits very nicely with our product offering today. It's really been more about the rate of adoption of technology in countries. Some countries feel like maybe the U.S. did like four or five years ago. Other countries, in some cases, are ahead. What's really cool, Brent, is really depending on what the regulatory environments are like in each one of those countries, the needs might be a little bit more sophisticated or advanced. When we build features or we configure the tool through our configuration tools to work for those countries, we find that the other countries that we're selling in value that, but they just haven't got the regulatory requirements up and running yet. I think the learnings are is that construction's construction, regardless of where you go in a lot of ways. We're still focusing on the foundational needs of the industry, therefore, the adoption rate has been very nice. Helpful color, great to see some early wins there and some large enterprise wins. Paul, just as you think about the breakdown of the momentum and the recovery here and kind of reopening tailwinds, is it different between commercial and corporate or any color there you could give us as you think about which part of the business is recovering faster than the others? Yeah, I think it's one of the great things about our industry and one of the benefits of our business is that when we think about our customers and the type of work that they do, they span commercial, industrial, residential. What we saw in COVID was that when a particular segment of the industry, of the construction industry, struggled, that our customers went out and really bid out work in the parts of the industry that were doing well. Today, when we look at that recovery, we still find the dynamic to be similar, where our customers are going and winning business where the demand is, and you see the same public data we do. It's certainly not linear across every sub-segment of the industry. We do believe that there will be growth across those different markets and that our customers will benefit. As growth varies from segment to segment, our customers will react, and we will be there with them. Thank you. Sure. Thanks, Brent. For the next question, we have Bhavan Suri from William Blair. Bhavan, your line's open. Great. Thank you. Congrats, guys. Thanks, Bhavan. Nice to see the update there. Absolutely. It's a pleasure. I want to touch a little bit on the network effects that you've got. We've talked about some of the free users, and I'd love to dig into, like, the go-to-market to monetize them. Like, what specific tactics are you guys doing to say, "Okay, I've got so many users, and they're tied to the network, but how do I start monetizing?" How do you think about that? Yeah. We talked a little bit about this on the roadshow, which is, 60% of our users on the platform today are what we call collaborators, right? This is really what you're talking about is. If a general contractor is a customer in Procore, and they bring on all their specialty contractors, those folks are engaged on our platform and see the value in Procore, thus are likely to want to become Procore customers because they face a lot of the same needs. There's a lot of different ways for us to address this. We know definitely who's in the application. We have a lot of ways of knowing who to talk to. The beauty is that a lot of times people just see the value of Procore by using it, and they pick up the phone and call us. I know Paul would love to add to this. Yeah, I think the one thing I'd add, Bhavan, is this is something we're already seeing today. When we look at a number of the new users that come, or the new customers, I should say, that come to Procore, these are folks who have been collaborators in the past. Whether they came to us through our marketing channels, through our direct sales efforts, referrals, there's certainly still opportunity to optimize how we find them in the moment of need. We would say this is an area that has certainly contributed to our growth and something that's still early days and a huge opportunity to continue to convert those collaborators to paying customers. Exactly. Gotcha. Then let's touch on competition just a little bit. You have this sort of partnership/competition with many providers who are faced. They always link into you to get the data. A lot of them are trying to do stuff in the field, trying to take pieces of this. I'd love to get an update on the competitive environment. Your friends at Oracle keep touting cloud from everywhere, which I'm just going to laugh about it. Let's talk about some of the newer guys, some of the guys that are actually sitting in the periphery. They're never going to be the core, they're never going to be your mission-critical system, but they're starting to eat on the edges a little bit. How do you see them? How do you perceive that? Love to get an update there. Thank you. Yeah, Bhavan. I'm sorry, and you were a little hard to hear, but I think I got it, in particular. Just to remind everybody at the highest level, the opportunity in the marketplace is still greenfield. There's such a huge, massive opportunity, $14 trillion by 2025. When we look at if you're getting to competitive win rates, things have not changed very much in the last few years. Our focus still remains on solving the foundational challenges. When it comes to what you're talking about how those folks interact with us, the funny thing is that the people that you were talking about, a lot of them have integrations with Procore. They're part of the 300 partners in our app marketplace. It's kind of a frenemy type thing, maybe in a certain way. In general, the partners that we have in the app marketplace are solving discrete needs that our customers need in order to get construction done. If you take anything away from any of this, it's number one is the industry is huge, and number two is the needs of the industry are so big because it's so broken and it's so complicated, that there's a lot of opportunity out there for all of us. Gotcha. Thanks for taking my questions, guys, and congrats again. Thanks, Bhav. For the next question, we have Tom Roderick from Stifel. Tom, your line is open. Hey, Tooey. Hey, Paul. Great to hear from you. Congratulations on a great first quarter out of the gates here. Thanks, Tom. Sterling started with a question here that was a great one, I thought, just about some of the labor shortages and the cost of raw materials going up, and if that was perhaps maybe slowing some projects. I guess I kind of want to turn that question on its ear just a little bit and think about the ripple-through effect of perhaps the impacts of some of those costs going up impacting construction volume itself, the size and dollar volumes of projects sort of naturally have to go higher to sort of match the dreaded inflation word a little bit. Two questions I'd ask you around that. A, is that a positive dynamic to the business model at all, just the ripple-through effect on construction volumes and project volumes? And then, B, is there anything you're doing with your customers to sort of right-size that? I know last year, in the middle of the pandemic, you worked with your customers to be flexible on that front in a tough time. Is there a way to sort of work with them now in a way that construction volumes are going up? I'm kind of curious how you're managing through that process. Yeah. There's a lot in there. Yeah, in general, when you talk about the challenges with supply chain and material costs, you would think that that would have a material impact on most folks' backlog. Now, you hear the stories about this project was postponed or delayed because of material costs. That doesn't mean that the backlogs still aren't big and getting bigger. I'm trying not to overstate it, but there's a lot of optimism about the projects that are in the pipeline. Kind of to what you alluded to, Procore does price on construction volume. That, I suppose, might have some sort of an impact. I think the worst is behind us in terms of what we saw during COVID, which was Q2 of last year, and the industry's been getting better quarter-over-quarter. I would say we're having less and less of those kind of conversations today. Paul, you want to add anything? No, I'd just reinforce what Tooey had said, of it certainly creates uncertainty and challenges for our customers, but the industry is incredibly resilient, and they continue to find ways to work through and partner with their collaborators to get projects done, and we are there to be a partner. As these different dynamics evolve, we will certainly work with our customers. If prices go up, it does drive construction volume up. We believe more that the long-term benefits here for our industry is that the industry has to grow because population grows, because we need to rebuild our aging infrastructure, and that, in general, we just are very bullish about construction volumes over the long term being the thing to focus on. Yeah. Makes perfect sense. That's helpful. Tooey, you were pretty darn clear on the topic of payments being a matter of when, not if. As you evaluate the way to kind of get that onto the platform and get that into the hands of your customers, do you think that's something that can sort of be fairly easily integrated through M&A activity? Is that a tuck-in, or is that something you'd be really committed to building from the ground up within? Well, I don't want to lead too much on this one, but if you think about what our financial management solution does, from tracking the budget to the contracts to the change orders to the invoicing, the natural next step is payments, of course. It's an area where we're putting a lot of focus. I suppose you could answer the question. People get really fixated on the payments section, but in order to make a payment, you have to be in compliance. There's a lot of pieces that go into getting somebody paid in construction through lien waiver management and making sure people have insurance, and there's just a lot of details that have to happen. I guess I could answer the question, there's probably a mix in there. Ultimately, we will get to the point where we are providing a payments platform. Excellent. We'll stand by for more news on that. Thank you both for the details. That's great. Thanks, Tom. Thanks, Tom. That's our last question for today. I would then like to turn the call over to Matt Puljiz. Thank you. Please continue. Thanks for everyone for joining us, and we hope to see you all at Groundbreak. Thanks again. Thanks, everyone. Ladies and gentlemen, this concludes today's conference call. Thank you all for participating. You may now disconnect.