Dennis Lyandres, Procore’s CRO Through IPO: From Procore to $1B+ ARR Vertical SaaS Pioneer
Dennis Lyandres brings deep expertise from his journey scaling multiple successful B2B software companies. As a key executive at Procore, he helped drive the company’s evolution from a single-product solution to a multiproduct platform powerhouse, ultimately reaching over $1B in ARR and a successful public offering. His experience spans notable companies including Cloud Era and Pentaho, giving him unique insights into what makes multiproduct strategies succeed or fail in today’s competitive SaaS landscape.
He joined us LIVE at SaaStr Workshop Wednesday (sign up for FREE here) to share his top learnings.
Procore is a $10B+ market cap construction SaaS leader that’s absolutely crushing it with 20%+ growth at $1.2B+ ARR. Here’s the thing – they’ve turned the messy world of construction management into a beautiful product that Project Managers and GCs actually want to use.
The secret sauce? Procore took the massive pain point of construction projects (think: thousands of RFIs, change orders, and documents scattered across trailers and hard hats) and turned it into a single source of truth in the cloud. They’ve built a true platform play – starting with core project management, then expanding into financials, safety, and analytics. Network effects are real here – once a GC standardizes on Procore, all their subs and owners get pulled in.
The numbers tell the story: 97%+ gross retention, steadily expanding NRR above 110%, and they’re still just scratching the surface of a massive TAM. Construction tech is eating the world, and Procore is the category leader eating their lunch. This is what a true vertical SaaS winner looks like.
The Truth About Building a Successful Multiproduct Strategy: 5 Key Learnings from Procore’s Journey to $1B+ ARR
Building multiple products isn’t just a nice-to-have anymore — it’s becoming essential for building an enduring SaaS business. Here’s why: software can be built faster than ever, especially in vertical SaaS. Your competitors are shipping new features daily. And most importantly, this is how buyers want to buy today. They’re looking to consolidate their IT footprint, not fragment it further.
1. The Strategic Imperative of Going Multiproduct
The data is clear: multiproduct strategies are becoming mandatory for sustained growth. But here’s what’s interesting — it’s not just about revenue. At Procore, they discovered multiple compelling reasons:
- Market expansion: Breaking free from single-market constraints
- Employee engagement: Creating new opportunities for growth and excitement
- Competitive moat: Making your platform stickier and harder to replace
- Buyer alignment: Meeting the growing demand for consolidated solutions
But timing is everything. Dennis notes that waiting too long to start your multiproduct journey can be detrimental. The key is being intentional and starting before you’re forced to.
2. The “Chess, Not Checkers” Approach to Product Strategy
Procore’s success wasn’t about randomly adding products — it was about strategic sequencing. Their framework:
First, identify products that make your existing solution more valuable. At Procore, they focused on financial management as their category-creating “Act Two” because it was:
- The hardest to turn off once implemented
- Created unique differentiation
- Unlocked numerous adjacent opportunities
The result? 60% of customers now buy 3+ products. But here’s the fascinating part — they learned not to sell everything upfront. Instead, they targeted discrete buying centers with specific solutions.
3. The Truth About Attach Rates
Here’s something counterintuitive: new customers often have significantly higher attach rates than existing customers — sometimes 2x higher. Why?
- New customers see you as a multiproduct vendor from day one
- Existing customers have established processes and vendor relationships
- The “soft costs” of switching (time, training, migration) often outweigh hard costs
Smart companies are breaking out their attach rate metrics between new and existing customers. They’re also getting creative about reducing switching costs — some leaders are offering migration buyouts and “one-click” transitions from competitors.
4. Building the Right Team and Go-to-Market Motion
The minimum viable team for multiproduct excellence needs:
- Engineering
- Product
- Design
- Go-to-market expertise
But here’s the key: treat it like a startup within your company. This means:
- Dedicated resources (even if it hurts the core business)
- Direct connection to senior leadership
- Different metrics for different revenue stages (0-1M, 1-5M, 5-20M)
- Outsize rewards and recognition for the team
5. The 80% Market Share Mandate
Perhaps most provocatively, Dennis argues that vertical SaaS companies should aim for 80% market share — not 20-30%. Why? Because in vertical markets:
- Network effects become powerful moats
- Learning curves are steep
- Platform benefits increase with adoption
To get there, companies often need to reach $10,000+ ACV, which usually requires multiple products, especially in SMB markets. Companies like Toast have proven this model works.
The Bottom Line: The days of single-product success in SaaS are numbered. The winners will be those who build comprehensive platforms that solve multiple problems for their target market. But success requires intentionality, strategic sequencing, and a willingness to invest ahead of revenue. The good news? The playbook is becoming clearer, thanks to companies like Procore lighting the way.
Next Steps: For companies beginning their multiproduct journey, start by mapping your customers’ adjacent workflows and pain points. Look for areas where they’re using outdated systems or Excel. These are your opportunities. But remember — sequencing matters more than speed. Choose your “Act Two” product carefully, as it will set the trajectory for everything that follows.
