Education
About Us
Working with TipRanks
Follow Us
Procore Technologies (PCOR)
NYSE:PCOR
Top Page
Procore Technologies
(NYSE:PCOR)73Outperform
Positive Factors
Financial Performance
Procore reported a strong end to the fiscal year, with cRPO growth of 19% well ahead of expectations for 13%, leading to a raised outlook for both revenue and operating margin guidance in 2025.
Market Position
Procore remains the leading vendor in a large and under-digitized end-market, and it is primed to capture an outsized share of this market over time.
Negative Factors
Financial Challenges
Net revenue retention ended the year at 106%, down from 114%, indicating pressure from smaller commitments over the year.
Procore Technologies (PCOR) vs. S&P 500 (SPY)
Market Cap
$11.46B
Dividend YieldN/A
Average Volume (3M)1.50M
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth21.23%
EPS Growth46.74%
CountryUS
Employees3,694
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)-0.71
Shares Outstanding149,924,210
10 Day Avg. Volume1,332,607
30 Day Avg. Volume1,499,167
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)9.95
Price to Cash Flow (P/CF)98.60
P/FCF Ratio1614.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$93.67Price Target Upside27.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
Procore Technologies Business Overview & Revenue Model
Company DescriptionProcore Technologies, Inc. is a leading provider of construction management software, primarily operating in the technology and construction sectors. The company offers a comprehensive cloud-based platform designed to improve efficiency, collaboration, and productivity for construction professionals. Procore’s suite of products includes solutions for project management, construction financials, quality and safety, and field productivity, enabling stakeholders to manage projects from inception to completion effectively.
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 is on a promising growth path, driven by its increasing revenue and strong cash flow generation. Despite consistent net losses impacting profitability metrics, its balance sheet remains robust with low debt levels. The company’s ability to grow cash flow significantly amidst losses is a positive indicator of its operational strength and potential for future profitability.Income Statement
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.72
Positive
Balance Sheet
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.65
Positive
Cash Flow
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.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 609.81M | 1.15B | 950.01M | 720.20M | 514.82M | 400.29M | Gross Profit |
| 487.29M | 946.10M | 775.55M | 571.79M | 416.51M | 328.63M | EBIT |
| -267.45M | -136.42M | -215.68M | -290.45M | -285.93M | -58.53M | EBITDA |
| -212.02M | -12.53M | -119.49M | -221.29M | -250.22M | -62.53M | Net Income Common Stockholders |
| -246.26M | -105.96M | -189.69M | -286.93M | -265.17M | -96.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 775.39M | 775.39M | 677.95M | 582.21M | 586.11M | 379.91M | Total Assets |
| 2.10B | 2.10B | 1.89B | 1.74B | 1.69B | 820.77M | Total Debt |
| 74.05M | 74.05M | 81.50M | 83.67M | 88.92M | 95.39M | Net Debt |
| -363.67M | -363.67M | -276.29M | -213.05M | -497.19M | -284.51M | Total Liabilities |
| 815.94M | 813.02M | 737.96M | 623.63M | 501.37M | 1.09B | Stockholders Equity |
| 1.29B | 1.29B | 1.16B | 1.12B | 1.19B | -272.10M |
| Cash Flow | Free Cash Flow | ||||
| -48.51M | 177.03M | 47.01M | -36.82M | 9.10M | 2.89M | Operating Cash Flow |
| -5.11M | 196.17M | 92.02M | 12.61M | 36.73M | 21.85M | Investing Cash Flow |
| -538.84M | -150.11M | -76.06M | -340.48M | -541.77M | -33.51M | Financing Cash Flow |
| 47.32M | 36.24M | 41.16M | 38.65M | 711.83M | 272.12M |
Procore Technologies Technical Analysis
Negative
73.26
Price Trends
77.72
Negative
74.91
Negative
68.75
Positive
Market Momentum
-1.22
Positive
40.69
Neutral
24.68
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 73.26 is below the 20-day moving average (MA) of 78.21, below the 50-day MA of 77.72, and above the 200-day MA of 68.75, indicating a neutral trend. The MACD of -1.22 indicates Positive momentum. The RSI at 40.69 is Neutral, neither overbought nor oversold. The STOCH value of 24.68 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 39 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $34.01B | 7,461.66 | 0.29% | ― | 21.07% | ― | |
73 Outperform | $11.46B | ― | -8.67% | ― | 21.23% | 46.74% | |
73 Outperform | $274.89B | 44.96 | 10.26% | 0.56% | 8.72% | 51.47% | |
69 Neutral | $55.98B | 50.69 | 49.69% | ― | 12.46% | 22.28% | |
66 Neutral | $72.50B | ― | -32.59% | ― | 23.19% | 11.01% | |
66 Neutral | $5.04B | 508.64 | 2.11% | ― | 16.42% | ― | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
PCOR
Procore Technologies
73.26
-6.52
-8.17%
ADSK
Autodesk
259.75
1.49
0.58%
CRM
Salesforce
282.89
-21.41
-7.04%
HUBS
HubSpot
640.21
27.71
4.52%
TEAM
Atlassian
238.86
23.23
10.77%
BILL
Bill.com Holdings
47.24
-20.38
-30.14%
Procore Technologies Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -2.45% | 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
M&A TransactionsStock BuybackBusiness Operations and Strategy
Procore Technologies Unveils Strategic Initiatives at Investor Day
Positive
Nov 21, 2024
Procore Technologies recently held its 2024 Investor Day, highlighting its strategic focus on organic growth, M&A for product enhancement, and returning capital to shareholders through a $300 million stock repurchase plan. The company aims to boost operational efficiency and maintain strong free cash flow, driven by its leading position in the construction technology space. These moves are designed to optimize long-term shareholder value and capitalize on the significant digitization opportunities within the $15 trillion construction industry.
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.