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Procore Technologies (PCOR)
NYSE:PCOR

Procore Technologies (PCOR) AI Stock Analysis

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Procore Technologies

(NYSE:PCOR)

Rating:73Outperform
Price Target:
$76.00
▲(8.03%Upside)
Procore Technologies has a strong market position with robust revenue growth and cash flow generation, but profitability remains a concern. The positive sentiment from the earnings call, including customer expansion and AI advancements, boosts confidence despite valuation challenges and mixed technical indicators. The focus should be on improving operational efficiency to drive profitability.
Positive Factors
Financial Performance
Procore reported upside Q1 results with revenue topping the high-end of guidance by $7.6M and non-GAAP operating margins of 10.4%, beating forecasts by more than 200 bps.
Market Positioning
Procore is a category leader in a software vertical where digital tool usage has significant opportunity to expand.
Project Management and Execution
Procore is not seeing any increase in project delays, very little in the way of cancellations, and most large GCs continue to have record backlogs.
Technological Advancements
Two recent technology-centric acquisitions increase Procore's capabilities in BIM and clash management.
Negative Factors
Market Uncertainty
There’s heightened uncertainty here relative to other names in our coverage – an end-market that’s more exposed to tariff implications, a GTM overhaul that’s one quarter into its full implementation, and eventual CEO transition.
Valuation Concerns
If category-leading Vertical SaaS names can fetch 7-12x forward revenue in a better/normalized environment, then today’s ~6x EV/R multiple on C2026E is probably about right for PCOR given the heightened risk profile.

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

Procore Technologies Business Overview & Revenue Model

Company DescriptionProcore Technologies, Inc. is a leading provider of cloud-based construction management software. The company operates primarily in the construction industry, offering a comprehensive platform that connects project stakeholders, including owners, general contractors, and specialty contractors. Procore's software solutions facilitate project management, financial management, quality and safety management, and field productivity, enhancing collaboration and efficiency across the construction lifecycle.
How the Company Makes MoneyProcore Technologies generates revenue primarily through a subscription-based model. The company charges construction firms and stakeholders for access to its software platform, which is licensed on a per-project basis or through enterprise agreements. Revenue is driven by the number of projects and the scale of construction activities managed using Procore's solutions. Additionally, Procore may benefit from partnerships with other technology providers, enabling integration and interoperability with complementary applications, further enhancing its platform's value proposition and customer retention.

Procore Technologies Key Performance Indicators (KPIs)

Any
Any
Organic Customer Count
Organic Customer Count
Shows the number of customers acquired without paid marketing, indicating the strength of the product's appeal and word-of-mouth growth potential.
Chart InsightsProcore Technologies' organic customer count has shown consistent growth, reaching 17,306 by Q1 2025. This expansion aligns with the company's strategic focus on customer acquisition, as highlighted by the addition of significant clients like Workday. Despite minor disruptions from a go-to-market transition, Procore's robust financial position and advancements in AI are driving optimism. However, potential tariff impacts and currency headwinds remain areas to watch. The company's ability to maintain growth amid these uncertainties will be crucial for sustaining its upward trajectory in customer count.
Data provided by:Main Street Data

Procore Technologies Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 11.30%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive quarter for Procore Technologies, with significant revenue growth, customer expansion, and advancements in AI. However, concerns about tariff impacts and go-to-market transition disruptions introduced some uncertainty. Overall, the company remains optimistic about its long-term opportunities.
Q1-2025 Updates
Positive Updates
Revenue Growth
Procore Technologies reported a 15% year-over-year revenue growth in Q1 2025, reaching $311 million.
Increase in Non-GAAP Operating Margins
Non-GAAP operating margins increased quarter-over-quarter to 10%.
Customer Milestone
Procore now has over 2,400 customers contributing more than $100,000 in annual recurring revenue (ARR).
International Revenue Growth
International revenue grew 18% year-over-year, with a constant currency growth of 20%.
New Customer Acquisitions
Procore added notable customers like Workday, a major social media platform, and the Iowa Army National Guard.
AI and Product Innovation
Procore is developing AI agents to enhance productivity and reduce risk, with a focus on customer feedback.
Negative Updates
Tariff Uncertainty
Potential impacts of tariff policies create uncertainty in demand, with no current material changes observed but cautious monitoring required.
Go-to-Market Transition Disruption
The transition to a new go-to-market model caused some disruption in Q1, although it was anticipated and managed.
Currency Headwinds
International results were slightly impacted by currency headwinds, contributing approximately two points of headwind to international revenue growth.
Company Guidance
During Procore Technologies' FY 2025 Q1 earnings call, various metrics and guidance were discussed. Revenue for Q1 stood at $311 million, marking a 15% year-over-year growth, with international revenue increasing by 18% despite currency headwinds. The company noted a non-GAAP operating margin of 10% for the quarter. Additionally, Procore now boasts over 2,400 customers contributing more than $100,000 in annual recurring revenue (ARR). The company maintained the high end of its full-year revenue guidance at $1.286 billion to $1.29 billion, representing an annual growth of 12%. Procore anticipates a non-GAAP operating margin between 13% and 13.5% for the full year, reflecting a margin expansion of 300 to 350 basis points. The guidance reflects cautious optimism amid uncertainties surrounding tariff policies, with the company prepared to leverage its robust financial position to maintain growth and profitability.

Procore Technologies Financial Statement Overview

Summary
Procore Technologies shows promising revenue growth and solid cash flow generation, indicative of its strong market position. However, profitability remains a challenge with ongoing net losses and negative margins.
Income Statement
75
Positive
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
68
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.19B1.15B950.01M720.20M514.82M400.29M
Gross Profit964.29M946.10M775.55M571.79M416.51M328.63M
EBITDA-58.60M-20.49M-119.49M-221.29M-250.22M-62.53M
Net Income-127.98M-105.96M-189.69M-286.93M-265.17M-96.17M
Balance Sheet
Total Assets1.95B2.10B1.89B1.74B1.69B820.77M
Cash, Cash Equivalents and Short-Term Investments566.69M775.39M677.95M582.21M586.11M379.91M
Total Debt64.50M74.05M81.50M83.67M88.92M95.39M
Total Liabilities767.07M813.02M737.96M623.63M501.37M1.09B
Stockholders Equity1.18B1.29B1.16B1.12B1.19B-272.10M
Cash Flow
Free Cash Flow131.95M177.03M47.01M-36.82M9.10M2.89M
Operating Cash Flow193.06M196.17M92.02M12.61M36.73M21.85M
Investing Cash Flow-208.95M-150.11M-76.06M-340.48M-541.77M-33.51M
Financing Cash Flow-96.82M36.24M41.16M38.65M711.83M272.12M

Procore Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price70.35
Price Trends
50DMA
66.76
Positive
100DMA
68.53
Positive
200DMA
69.86
Positive
Market Momentum
MACD
0.60
Negative
RSI
63.75
Neutral
STOCH
85.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCOR, the sentiment is Positive. The current price of 70.35 is above the 20-day moving average (MA) of 67.24, above the 50-day MA of 66.76, and above the 200-day MA of 69.86, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 63.75 is Neutral, neither overbought nor oversold. The STOCH value of 85.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$12.06B56.6489.60%9.18%14.35%
77
Outperform
$8.38B43.4549.11%22.73%154.79%
BSBSY
74
Outperform
$16.41B68.7525.20%0.52%10.71%-27.64%
73
Outperform
$10.39B-10.78%18.59%10.73%
72
Outperform
$7.59B101.0625.23%18.63%-55.09%
68
Neutral
$8.83B192.75-12.98%17.04%-273.13%
63
Neutral
£564.00M24.42-6.00%2.45%3.52%-29.29%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PCOR
Procore Technologies
70.35
1.49
2.16%
CVLT
CommVault Systems
170.49
46.51
37.51%
MANH
Manhattan Associates
198.71
-49.12
-19.82%
APPF
AppFolio
232.65
-19.93
-7.89%
ESTC
Elastic
84.20
-30.67
-26.70%
BSY
Bentley Systems
54.08
4.88
9.92%

Procore Technologies Corporate Events

Executive/Board ChangesShareholder Meetings
Procore Technologies Elects Directors at Annual Meeting
Neutral
Jun 6, 2025

On June 5, 2025, Procore Technologies held its annual meeting of stockholders, where three directors were elected to serve until 2028. Additionally, the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025 was ratified, and the compensation for named executive officers was approved.

The most recent analyst rating on (PCOR) stock is a Buy with a $78.00 price target. To see the full list of analyst forecasts on Procore Technologies stock, see the PCOR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 25, 2025