Procore Technologies (PCOR) AI Stock Analysis

• Market Cap: $10.53B
• Dividend Yield: N/A
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: 16.08%
• EPS Growth: -51.78%
• Country: US
• Employees: 4,203
• Sector: Technology
• Sector Strength: 81
• Industry: Software - Application
• EPS (TTM): 0.35
• Shares Outstanding: 150,192,800
• 10 Day Avg. Volume: 1,586,013
• 30 Day Avg. Volume: 2,137,118
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 7.86
• Enterprise Value/Gross Profit: 9.81
• Enterprise Value/Ebitda: -299.40
• 1Y Price Target: $82.27
• Price Target Upside: 17.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 63 Neutral
• Price Target: $72.00 ▲(2.67% Upside)

Procore Technologies' overall stock score is driven by strong revenue growth and operational efficiency, as highlighted in the earnings call. However, profitability challenges and a negative P/E ratio weigh on the valuation. The technical analysis indicates a neutral trend, with potential bearish momentum. The company's strategic focus on innovation and customer acquisition supports its growth potential, but addressing profitability is crucial for enhancing financial health.

Positive Factors

Financial Performance

Procore reported strong second-quarter results and conservatively raised its full-year outlook solely accounting for the quarterly outperformance.

Market Position

Procore Technologies is considered the clear number one in its market, reinforcing confidence in its leadership position.

Valuation

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

Negative Factors

Cost Concerns

There is some concern from a customer about potential tariff impacts on costs and supply chains.

Investor Sentiment

Short interest is relatively high at around 10%, indicating a mixed sentiment among investors.

Procore Technologies Business Overview & Revenue Model

Company Description

Procore Technologies (PCOR) is a leading provider of cloud-based construction management software, designed to streamline project management processes for construction professionals. Operating primarily in the construction technology sector, Procore offers a comprehensive suite of tools that facilitate project planning, collaboration, and financial management across various stages of construction projects. Its core products include project management, construction financials, quality and safety, and field productivity solutions tailored for contractors, owners, and subcontractors in the construction industry.

How the Company Makes Money

Procore generates revenue primarily through subscription fees for its software platform, which is offered under a Software as a Service (SaaS) model. Customers pay annual or multi-year contracts to access Procore's suite of tools, which can be customized to meet the needs of different construction projects. Key revenue streams include fees from new customer subscriptions, renewals from existing clients, and upselling additional modules and features. Procore also benefits from strategic partnerships with various industry stakeholders, including construction firms and technology providers, that enhance its service offerings and expand its market reach. Additionally, the company may generate revenue from professional services, such as training and implementation support, further contributing to its earnings.

Procore Technologies Financial Statement Overview

Summary

Procore Technologies demonstrates strong revenue growth and a solid balance sheet foundation, yet it continues to face profitability challenges. The improving cash flow situation is encouraging, though consistent net losses pose a risk to long-term financial stability. The company is well-positioned in terms of growth potential, but must address profitability to enhance overall financial health.

Income Statement

Procore Technologies has shown strong revenue growth over the past years, particularly with a notable increase from $400.29M in 2020 to $1.23B in TTM (Trailing-Twelve-Months). The gross profit margin remains robust at around 80%, although the company is still facing challenges with profitability, as indicated by consistent net losses and negative EBIT and EBITDA margins. Despite the losses, the revenue growth trajectory is a positive signal for future profitability potential.

Balance Sheet

The balance sheet of Procore Technologies displays a solid equity base, with a debt-to-equity ratio remaining low, indicating limited leverage. However, the return on equity is negative due to ongoing net losses. The equity ratio is strong, suggesting a healthy financial structure. The company's liquidity is favorable, supported by substantial cash and cash equivalents.

Cash Flow

Procore Technologies has improved its cash flow generation, with positive operating cash flows in recent periods. The free cash flow has grown significantly, from negative in 2022 to positive in the TTM. The ratio of operating cash flow to net income is positive, indicating efficient cash management despite net losses. However, the dependency on financing activities in earlier years highlights a potential risk of cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.23B	1.15B	950.01M	720.20M	514.82M	400.29M
Gross Profit	988.04M	946.10M	775.55M	571.79M	416.51M	328.63M
EBITDA	-32.37M	-12.53M	-114.83M	-221.29M	-250.22M	-68.81M
Net Income	-142.76M	-105.96M	-189.69M	-286.93M	-265.17M	-96.17M
Balance Sheet
Total Assets	2.00B	2.10B	1.89B	1.74B	1.69B	820.77M
Cash, Cash Equivalents and Short-Term Investments	620.88M	775.39M	677.95M	582.21M	586.11M	379.91M
Total Debt	65.13M	74.05M	81.50M	83.67M	88.92M	95.39M
Total Liabilities	786.50M	813.02M	737.96M	623.63M	501.37M	1.09B
Stockholders Equity	1.22B	1.29B	1.16B	1.12B	1.19B	-272.10M
Cash Flow
Free Cash Flow	113.20M	177.03M	47.01M	-36.82M	9.10M	2.89M
Operating Cash Flow	165.19M	196.17M	92.02M	12.61M	36.73M	21.85M
Investing Cash Flow	-79.28M	-150.11M	-76.06M	-340.48M	-541.77M	-33.51M
Financing Cash Flow	-118.00M	36.24M	41.16M	38.65M	711.83M	272.12M

Procore Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.13
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 70.13 is above the 20-day moving average (MA) of 66.69, above the 50-day MA of 69.14, and below the 200-day MA of 71.23, indicating a neutral trend. The MACD of 0.54 indicates Negative momentum. The RSI at 58.87 is Neutral, neither overbought nor oversold. The STOCH value of 80.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PCOR.

Procore Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APPF	79 Outperform	$10.21B	51.40	49.11%	―	19.47%	61.10%
DAY	76 Outperform	$10.89B	227.27	1.89%	―	13.46%	2.06%
BILL	69 Neutral	$5.24B	482.28	0.59%	―	13.36%	―
MNDY	68 Neutral	$9.43B	250.58	3.80%	―	30.24%	-6.69%
PCOR	63 Neutral	$10.53B	―	-11.54%	―	16.08%	-51.78%
Sector *	61 Neutral	$35.56B	8.62	-10.46%	1.86%	8.47%	-8.26%
TTAN	54 Neutral	$10.34B	―	-37.28%	―	26.45%	-74.34%

Procore Technologies Corporate Events

Procore Technologies Elects Directors at Annual Meeting

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.