Buried within Procore's recent Q1 2024 earnings call lies a subtle shift in strategy, a whisper of a potential weapon that could reshape the company's trajectory and send shockwaves through the construction software landscape. While analysts fixate on macro headwinds and margin improvements, Procore is quietly honing a potent weapon: configurability.

Tooey Courtemanche, Procore's Founder and CEO, let slip this intriguing focus during the Q&A session. Responding to a question about expanding within the enterprise segment, Courtemanche highlighted the critical importance of configurability for these larger clients. "No two enterprise clients perform the same task the same way," he stated, emphasizing the need for Procore to adapt to their unique workflows and processes.

This seemingly innocuous statement reveals a powerful insight. While Procore already boasts a significant presence within the enterprise market, capturing roughly 40% of the ENR 400's $500 billion annual construction volume, there's a vast untapped reservoir of potential. The key to unlocking this potential lies in addressing the enterprise's demand for highly customizable solutions.

Think of it like this: Procore has been building a fleet of powerful, versatile ships (their software products), capable of navigating the complex waters of construction projects. However, these ships have largely been standardized, designed for the open seas of the SMB market. The enterprise, with its unique archipelago of needs, requires bespoke vessels, tailored to their specific routes and cargo.

Configurability empowers Procore to become a master shipbuilder, crafting custom solutions for each enterprise client. This approach, combined with a robust professional services offering, allows Procore to not only provide the software but also guide clients on best practices gleaned from their vast customer base, further enhancing adoption and stickiness.

The implications of this shift are profound. Increased configurability could:

- **Boost Expansion:** Procore can now tailor its platform to capture a greater share of existing enterprise clients' construction volume, moving beyond the 5 products currently used by the average ENR 400 customer.

- **Reduce Churn:** Highly customized solutions align more closely with enterprise clients' needs, reducing the likelihood of switching to competitors.

- **Unlock New Markets:** Enhanced configurability could even open doors to previously untapped enterprise segments, like the Fortune 500, universities, and hospitals.

But let's move beyond mere speculation and consider some potential numbers.

- **ENR 400 Expansion:** Procore has captured 40% of the ENR 400's $500 billion volume. Doubling that penetration to 80% would represent an additional $200 billion in potential volume flowing through Procore's platform.

- **Product Cross-Sell:** If the average ENR 400 client doubled their product adoption from 5 to 10 products, Procore could see a significant uptick in revenue from this segment alone.

Procore's Financial Performance

The following table summarizes Procore's key financial data:

Revenue Growth & Margin Expansion

The following chart illustrates Procore's revenue growth and operating margin expansion over recent quarters.

The "configurability" play is a long game, one that requires deep customer understanding, a flexible product architecture, and a collaborative approach to implementation. However, the potential rewards are immense. As Procore fine-tunes this weapon, watch for a surge in enterprise adoption, solidifying their position as the dominant force in the construction software market.

"Fun Fact: Did you know that Procore's headquarters in Carpinteria, California, is just a stone's throw from the Pacific Ocean? Maybe that proximity to the vastness of the sea has inspired their ambition to build a software platform capable of navigating the equally vast and complex world of construction."