Procore Technologies (PCOR) AI Stock Analysis

• Market Cap: $9.67B
• Dividend Yield: N/A
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: 18.59%
• EPS Growth: 10.73%
• Country: US
• Employees: 4,203
• Sector: Technology
• Sector Strength: 66
• Industry: Software - Application
• EPS (TTM): 0.23
• Shares Outstanding: 149,145,540
• 10 Day Avg. Volume: 1,452,335
• 30 Day Avg. Volume: 1,437,410
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.08
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $79.12
• Price Target Upside: 22.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

Procore Technologies receives a strong overall score of 71, driven primarily by its robust financial performance and positive earnings call outlook. The company’s strong revenue growth and solid cash flow generation are key strengths, although profitability challenges remain. Technical analysis presents mixed signals, with some potential short-term overbought conditions. Valuation is high, reflecting market optimism for future growth. Earnings call sentiments add to the positive outlook, despite some uncertainties in the market environment.

Positive Factors

Earnings

Procore reported strong first-quarter results while reiterating its full-year outlook considering the current macro backdrop.

Market Position

PCOR is viewed as the clear market leader and its go-to-market changes should pay greater dividends in the second half.

Valuation

The company's current discounted valuation is seen as a compelling entry point for one of the highest quality assets in the coverage universe.

Negative Factors

End Market Sensitivity

The macro sensitivity of the construction end market has largely contributed to the decline in PCOR shares.

Tariff Impact

Tariff-related turbulence is expected to affect Procore, as the company has greater tangential exposure to tariff impacts due to the nature of the construction industry.

Uncertainty and Stock Performance

Procore shares have significantly lagged the broader software space, reflecting macro worries and incremental uncertainties regarding the business outlook following the announced transition plan for the CEO.

Procore Technologies Business Overview & Revenue Model

Company Description

Procore Technologies, Inc. provides a cloud-based construction management platform and related software products in the United States and internationally. The company's platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Management, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office. The company also provides Resource Management that helps contractors to schedule, track, and forecast labor productivity, enhance time management, communication with workforces, and manage profitability on construction projects; and Financial Management, which provides customers with visibility into the financial health of their individual construction projects and portfolios, as well as facilitates untethered access to financial data, linking the field, and the office in real-time. It serves owners, general contractors, and specialty contractors operating in the commercial, residential, industrial, and infrastructure segments of the construction industry. The company primarily sells subscriptions to access its products on computers, smartphones, and tablets through any web browser or from its mobile application available for iOS and Android platforms through its direct sales team. Procore Technologies, Inc. was incorporated in 2002 and is headquartered in Carpinteria, California.

How the Company Makes Money

Procore Technologies generates revenue primarily through a subscription-based model, selling access to its cloud-based platform to construction companies of various sizes. The company charges subscription fees based on the number of products used and the size of the client's business, making it scalable according to the client's needs. Key revenue streams include enterprise agreements with large construction firms and partnerships with industry leaders to expand its customer base. Procore also benefits from strategic integrations with other software tools and platforms, enhancing its value proposition and driving further adoption of its products.

Procore Technologies Financial Statement Overview

Summary

Procore Technologies shows promising revenue growth and solid cash flow generation, indicative of its strong market position in the software application industry. Despite these strengths, profitability remains a challenge, with ongoing net losses and negative margins. The balance sheet is stable with low leverage, providing a cushion for future growth. The focus should be on improving operational efficiency to enhance profitability.

Income Statement

Procore Technologies demonstrates strong revenue growth with a TTM increase of 3.58% and impressive annual growth over the past years. The gross profit margin is robust at 80.82%, indicating effective cost management. However, the company remains unprofitable, with a TTM net profit margin of -10.73% and negative EBIT and EBITDA margins, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.05, indicating conservative leverage. The equity ratio stands at 60.63%, highlighting a solid capital structure. However, the negative return on equity of -10.83% suggests inefficiencies in generating profits from shareholders' equity.

Cash Flow

Procore's cash flow is healthy with a TTM free cash flow of $131.95 million and a strong operating cash flow to net income ratio of 1.51. The company has demonstrated prudent cash management, although the free cash flow growth has declined compared to previous periods due to increased capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.15B	950.01M	720.20M	514.82M	400.29M
	Gross Profit
946.10M	775.55M	571.79M	416.51M	328.63M
	EBIT
-136.42M	-215.68M	-290.45M	-285.93M	-58.53M
	EBITDA
-20.49M	-119.49M	-221.29M	-250.22M	-62.53M
	Net Income Common Stockholders
-105.96M	-189.69M	-286.93M	-265.17M	-96.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
775.39M	677.95M	582.21M	586.11M	379.91M
	Total Assets
2.10B	1.89B	1.74B	1.69B	820.77M
	Total Debt
74.05M	81.50M	83.67M	88.92M	95.39M
	Net Debt
-363.67M	-276.29M	-213.05M	-497.19M	-284.51M
	Total Liabilities
813.02M	737.96M	623.63M	501.37M	1.09B
	Stockholders Equity
1.29B	1.16B	1.12B	1.19B	-272.10M
Cash Flow		Free Cash Flow
177.03M	47.01M	-36.82M	9.10M	2.89M
	Operating Cash Flow
196.17M	92.02M	12.61M	36.73M	21.85M
	Investing Cash Flow
-150.11M	-76.06M	-340.48M	-541.77M	-33.51M
	Financing Cash Flow
36.24M	41.16M	38.65M	711.83M	272.12M

Procore Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 64.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCOR, the sentiment is Neutral. The current price of 64.85 is above the 20-day moving average (MA) of 60.83, below the 50-day MA of 67.17, and below the 200-day MA of 68.36, indicating a neutral trend. The MACD of -0.79 indicates Negative momentum. The RSI at 53.13 is Neutral, neither overbought nor oversold. The STOCH value of 86.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PCOR.

Procore Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSY	79 Outperform	$13.22B	60.32	24.39%	0.57%	10.15%	-28.62%
APPF	77 Outperform	$7.64B	39.60	49.11%	―	22.73%	154.79%
CVLT	76 Outperform	$7.59B	102.28	25.23%	―	18.63%	-55.09%
PCOR	71 Outperform	$9.67B	―	-10.78%	―	18.59%	10.73%
MANH	71 Outperform	$11.14B	52.28	89.60%	―	9.18%	14.35%
ESTC	70 Outperform	$8.66B	192.75	-16.95%	―	17.95%	-345.28%
Sector *	60 Neutral	$10.94B	10.48	-7.04%	2.99%	7.55%	-12.20%

Procore Technologies Corporate Events

Procore Technologies CEO Transition to Executive Chairman

On March 10, 2025, Procore Technologies announced that its Founder, President, and CEO, Tooey Courtemanche, plans to transition to Executive Chairman once a successor is appointed. The Board will conduct a comprehensive search for a new CEO, while Courtemanche will remain involved in the company and lead the Board as Executive Chairman. The company also reaffirmed its fiscal 2025 guidance and announced the termination of Courtemanche’s Rule 10b5-1 trading plan.