Procore Technologies (PCOR) AI Stock Analysis

342 Followers

Top Page

Procore Technologies

(NYSE:PCOR)

67Neutral

Procore Technologies' stock is moderately positioned with a score of 66.8. Strong revenue growth and cash flow generation are key strengths, supported by a robust balance sheet. However, ongoing net losses and technical indicators reflecting bearish momentum present challenges. Positive earnings call sentiment and strategic initiatives offer potential for future improvement.

Positive Factors

Leadership Transition

The transition of Founder and CEO Tooey Courtemanche to Executive Chairman is not a warning signal but an opportunity for him to focus on product, strategy, and customer engagement.

Market Position

The stock is recommended for its potential in an under-digitized market with expected durable growth and expanding margins.

Negative Factors

Demand Environment

The demand environment remains challenged amid macro noise, but not incrementally so.

Growth Challenges

The potential GTM disruptions imply a reset in the growth framework in FY25 (and possibly beyond).

Procore Technologies (PCOR) vs. S&P 500 (SPY)

Market Cap

$8.59B

Dividend YieldN/A

Average Volume (3M)1.48M

Price to Earnings (P/E)―

Beta (1Y)1.58

Revenue Growth21.23%

EPS Growth46.74%

CountryUS

Employees4,203

SectorTechnology

Sector Strength40

IndustrySoftware - Application

Share Statistics

EPS (TTM)-0.71

Shares Outstanding149,924,210

10 Day Avg. Volume1,304,088

30 Day Avg. Volume1,481,891

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)9.16

Price to Cash Flow (P/CF)90.80

P/FCF Ratio1487.40

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$91.47

Price Target Upside57.33% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering19

Procore Technologies Business Overview & Revenue Model

Company DescriptionProcore 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 MoneyProcore 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 demonstrates strong revenue growth and cash flow generation, despite ongoing net losses impacting profitability metrics. The company maintains a solid balance sheet with low debt levels, supporting its growth trajectory.

Income Statement

Positive

Procore Technologies shows a strong revenue growth trajectory, with a 21.2% increase from the previous year (2023 to TTM 2024). The gross profit margin is healthy at 81.5% for TTM 2024, indicating efficient cost management. However, the company is not yet profitable, with a negative net profit margin of -9.2% and a negative EBIT margin of -11.5%. This suggests that while revenue is growing, expenses are significantly impacting profitability.

Balance Sheet

Positive

The balance sheet is solid with an equity ratio of 61.2%, reflecting a strong capital base. The debt-to-equity ratio is low at 0.06, indicating minimal reliance on debt financing. However, consistent negative net income has impacted ROE, which remains negative at -8.2%, indicating limited returns to shareholders.

Cash Flow

Positive

The cash flow statement reveals a positive trajectory with a 207.5% increase in free cash flow from the previous year. The operating cash flow to net income ratio is strong at 1.85, suggesting sound cash generation relative to earnings. This highlights the company’s ability to generate cash even as it reports net losses, which is crucial for its growth and operational needs.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
-12.53M	-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

Negative

Last Price58.14

Price Trends

50DMA

73.78

Negative

100DMA

75.47

Negative

200DMA

68.79

Negative

Market Momentum

MACD

-2.05

Positive

RSI

41.43

Neutral

STOCH

25.03

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCOR, the sentiment is Negative. The current price of 58.14 is below the 20-day moving average (MA) of 67.25, below the 50-day MA of 73.78, and below the 200-day MA of 68.79, indicating a bearish trend. The MACD of -2.05 indicates Positive momentum. The RSI at 41.43 is Neutral, neither overbought nor oversold. The STOCH value of 25.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCOR.

Procore Technologies Risk Analysis

Procore Technologies disclosed 41 risk factors in its most recent earnings report. Procore Technologies reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Procore Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSY	78 Outperform	$11.72B	53.41	24.39%	0.65%	10.15%	-28.62%
CVLT	77 Outperform	$6.13B	37.31	74.05%	―	15.19%	―
MANH	72 Outperform	$9.23B	41.66	75.64%	―	12.23%	24.66%
APPF	72 Outperform	$7.87B	38.68	49.98%	―	28.01%	8699.84%
ESTC	67 Neutral	$7.95B	192.75	-16.95%	―	17.95%	-345.28%
PCOR	67 Neutral	$8.59B	―	-8.67%	―	21.23%	46.74%
Sector *	57 Neutral	$18.52B	9.81	-13.96%	2.71%	5.07%	-23.65%

* Technology Sector Average

Performance Comparison

PCOR

Procore Technologies

58.14

-21.09

-26.62%

CVLT

CommVault Systems

142.08

44.65

45.83%

MANH

Manhattan Associates

146.40

-95.78

-39.55%

APPF

AppFolio

214.77

-17.72

-7.62%

ESTC

Elastic

74.64

-24.07

-24.38%

BSY

Bentley Systems

39.12

-11.34

-22.47%

Procore Technologies Earnings Call Summary

Earnings Call Date: Feb 13, 2025 | % Change Since: -22.58% | Next Earnings Date: Apr 30, 2025

Earnings Call Sentiment Positive

The earnings call reflected a positive sentiment overall, with strong booking performance, customer growth, and innovative product developments balancing out the challenges of a negative operating margin in Q4 and uncertainties related to the go-to-market transition.

Highlights

Strong Booking Performance

Procore achieved strong booking performance with over 136 six- and seven-figure transactions. The number of customers contributing more than a million dollars in ARR grew by 39% year over year.

Successful Customer Acquisitions and Expansions

Procore added new customers across all stakeholders, including major companies like a Fortune 30 oil refiner and one of Canada's largest general contractors. Significant expansion wins were noted, including a major expansion with an ENR 50 contractor.

Expansion in Operating Margin

The company expanded its non-GAAP operating margin by 800 basis points and generated $128 million in free cash flow for the year, showing a 171% year-over-year improvement.

Innovative Product Developments

Procore continued to invest in AI-powered innovations like Copilot and Agent Studio. The company is also enhancing platform connectivity with features like connected drawings.

Positive Revenue Growth

Total revenue in Q4 was $302 million, a 16% increase year over year, with international revenue growing by 19%.

Lowlights

Negative Operating Margin in Q4

Q4 non-GAAP operating income was negative $2 million, representing an operating margin of negative 1%.

Uncertainty Due to Go-To-Market Transition

The go-to-market transition is expected to cause disruption in the first half of 2025. The company is cautious with guidance due to the ongoing transformation.

Challenges with New Logo Growth

The new logo growth has been softer, with the guidance implying that new logo growth will be lower than previous quarters.

Company Guidance

During Procore Technologies' FY 2024 Q4 earnings call, the company reported remarkable metrics indicating robust performance and optimistic guidance for fiscal 2025. Key highlights included a 16% year-over-year increase in total revenue, reaching $302 million, and international revenue growth of 19%. Procore also achieved a significant 39% year-over-year growth in the number of customers contributing over a million dollars in ARR. The company expanded its non-GAAP operating margin by 800 basis points and generated $128 million in free cash flow, marking a 171% year-over-year improvement. For fiscal 2025, Procore raised its revenue guidance to between $1.285 billion and $1.29 billion, implying a 12% growth, and increased its non-GAAP operating margin guidance by 50 basis points to between 13% and 13.5%. The company emphasized its strategic initiatives, such as AI and data-driven innovations, and its ongoing go-to-market transition, which are expected to drive further top-line growth and operational efficiency.

Procore Technologies Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Procore Technologies CEO Transition to Executive Chairman

Neutral

Mar 10, 2025

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.