Procore Technologies (PCOR) AI Stock Analysis

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Procore Technologies

(NYSE:PCOR)

Rating:71Outperform

Price Target:

$74.00

▲(9.89%Upside)

Procore Technologies' score is primarily driven by its robust financial performance, particularly in revenue growth and cash flow management, and positive earnings call highlights. However, challenges with profitability and valuation metrics such as a negative P/E ratio and no dividend yield weigh down the overall score. The technical outlook is cautiously optimistic with short-term bullish signals.

Positive Factors

Acquisitions

Procore announced two tuck-in acquisitions, Novorender and FlyPaper Technologies, expected to enhance its capabilities without a material financial burden.

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 Position

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

Negative Factors

Business Transition

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.

Market Uncertainty

Greater uncertainty and higher prices due to tariffs may lead to customers delaying or scaling back purchasing decisions, as incremental budget now needs to be dedicated to procurement.

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.

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

Market Cap

$10.05B

Dividend YieldN/A

Average Volume (3M)1.19M

Price to Earnings (P/E)―

Beta (1Y)1.56

Revenue Growth18.59%

EPS Growth10.73%

CountryUS

Employees4,203

SectorTechnology

Sector Strength84

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.23

Shares Outstanding149,169,220

10 Day Avg. Volume900,973

30 Day Avg. Volume1,185,490

Financial Highlights & Ratios

PEG Ratio3.96

Price to Book (P/B)8.33

Price to Sales (P/S)0.00

P/FCF Ratio74.19

Enterprise Value/Market Cap0.95

Enterprise Value/Revenue2.11

Enterprise Value/Gross Profit9.89

Enterprise Value/Ebitda-152.56

Forecast

1Y Price Target

$79.24

Price Target Upside17.67% 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. 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

Organic Customer Count

Organic Customer Count
Measures the number of customers acquired without paid marketing, highlighting the company's ability to grow through word-of-mouth and product value, which can indicate strong market fit and customer satisfaction.

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: 6.53%|

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 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

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

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

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.19B	1.15B	950.01M	720.20M	514.82M	400.29M
	Gross Profit
964.29M	946.10M	775.55M	571.79M	416.51M	328.63M
	EBIT
-153.76M	-136.42M	-215.68M	-290.45M	-285.93M	-58.53M
	EBITDA
-58.60M	-20.49M	-119.49M	-221.29M	-250.22M	-62.53M
	Net Income Common Stockholders
-127.98M	-105.96M	-189.69M	-286.93M	-265.17M	-96.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
566.69M	775.39M	677.95M	582.21M	586.11M	379.91M
	Total Assets
1.95B	2.10B	1.89B	1.74B	1.69B	820.77M
	Total Debt
64.50M	74.05M	81.50M	83.67M	88.92M	95.39M
	Net Debt
-249.23M	-363.67M	-276.29M	-213.05M	-497.19M	-284.51M
	Total Liabilities
767.07M	813.02M	737.96M	623.63M	501.37M	1.09B
	Stockholders Equity
1.18B	1.29B	1.16B	1.12B	1.19B	-272.10M
Cash Flow		Free Cash Flow
131.95M	177.03M	47.01M	-36.82M	9.10M	2.89M
	Operating Cash Flow
193.06M	196.17M	92.02M	12.61M	36.73M	21.85M
	Investing Cash Flow
-208.95M	-150.11M	-76.06M	-340.48M	-541.77M	-33.51M
	Financing Cash Flow
-96.82M	36.24M	41.16M	38.65M	711.83M	272.12M

Procore Technologies Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price67.34

Price Trends

50DMA

65.12

Positive

100DMA

70.56

Negative

200DMA

68.97

Negative

Market Momentum

MACD

0.37

Positive

RSI

50.98

Neutral

STOCH

49.16

Neutral

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 67.34 is below the 20-day moving average (MA) of 68.38, above the 50-day MA of 65.12, and below the 200-day MA of 68.97, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 50.98 is Neutral, neither overbought nor oversold. The STOCH value of 49.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 3 New Risks

We cannot guarantee that our stock repurchase program will enhance stockholder value, and any stock repurchases we make could increase the volatility of our common stock and diminish the cash reserves we have available to fund working capital and other projects, and any failure to repurchase our common stock after we have announced our intention to do so may negatively affect the price of our common stock. Q4, 2024

We have experienced, and may continue to experience, disruptions and adverse impacts to our financial and operating results as we continue to invest in and implement our evolved GTM operating model, and any failure to manage such disruptions and adverse impacts could materially adversely affect our business, financial condition, results of operations, and prospects. Q4, 2024

Our use of third-party open source software could negatively affect our ability to sell subscriptions to access our products and subject us to possible litigation. Q4, 2024

Procore Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSY	81 Outperform	$14.46B	60.58	25.20%	0.52%	10.71%	-27.64%
MANH	80 Outperform	$11.20B	53.30	89.60%	―	9.18%	14.35%
APPF	77 Outperform	$7.86B	40.72	49.11%	―	22.73%	154.79%
CVLT	76 Outperform	$8.25B	108.61	25.23%	―	18.63%	-55.09%
PCOR	71 Outperform	$10.05B	―	-10.78%	―	18.59%	10.73%
Sector *	62 Neutral	$11.70B	10.39	-7.10%	2.92%	7.45%	-8.42%
ESTC	60 Neutral	$8.74B	192.75	-12.98%	―	17.04%	-273.13%

* Technology Sector Average

Performance Comparison

PCOR

Procore Technologies

67.32

0.76

1.14%

CVLT

CommVault Systems

182.15

66.48

57.47%

MANH

Manhattan Associates

190.87

-28.95

-13.17%

APPF

AppFolio

218.01

-13.73

-5.92%

ESTC

Elastic

83.83

-29.28

-25.89%

BSY

Bentley Systems

48.52

-1.58

-3.15%

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.