Latest news with #PCOR
Yahoo
09-05-2025
- Business
- Yahoo
PCOR Q1 Earnings Call: Revenue Growth Outpaces Expectations Amid Uncertain Tariff Backdrop
Construction management software maker Procore (NYSE:PCOR) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 15.3% year on year to $310.6 million. The company expects next quarter's revenue to be around $311 million, close to analysts' estimates. Its non-GAAP profit of $0.23 per share was 25% above analysts' consensus estimates. Is now the time to buy PCOR? Find out in our full research report (it's free). Revenue: $310.6 million vs analyst estimates of $302.7 million (15.3% year-on-year growth, 2.6% beat) Adjusted EPS: $0.23 vs analyst estimates of $0.18 (25% beat) Adjusted Operating Income: $32.4 million vs analyst estimates of $23.12 million (10.4% margin, 40.2% beat) The company slightly lifted its revenue guidance for the full year to $1.29 billion at the midpoint from $1.29 billion Operating Margin: -11.7%, down from -7% in the same quarter last year Free Cash Flow Margin: 15%, up from 0.1% in the previous quarter Customers: 17,306, up from 17,088 in the previous quarter Net Revenue Retention Rate: 106%, in line with the previous quarter Annual Recurring Revenue: $1.24 billion at quarter end, up 15.3% year on year Billings: $285.5 million at quarter end, up 11.9% year on year Market Capitalization: $9.9 billion Procore's first quarter results reflected year-on-year revenue growth, with management attributing performance to continued demand across its core construction software platform and new customer wins spanning both domestic and international markets. CEO Tooey Courtemanche pointed to the company's ability to deliver measurable productivity gains and risk management for customers navigating supply chain complexity and cost volatility. He highlighted, 'Thousands of customers rely on the Procore platform to run their business, improving visibility and predictability so that they could manage risk and make smarter decisions.' Looking ahead, management indicated that full-year guidance remains cautious due to uncertainty stemming from evolving tariff policies. CFO Howard Fu emphasized that, despite strong first quarter execution, the company's guidance philosophy is intentionally conservative to account for possible changes in demand. He explained that Procore's approach is to 'control what we can control,' including scenario planning and cost discipline, while remaining flexible to respond to any shifts in the macro environment. Procore's leadership discussed several operational and strategic developments influencing first quarter performance and provided insight into how the company is preparing for potential macroeconomic headwinds. Tariff Uncertainty and Customer Behavior: Management reported no material change in customer procurement or project activity so far, despite new tariff policies. Most customers are using contract clauses and pre-purchasing strategies to manage cost risk, with Courtemanche noting that modest cost increases can be absorbed, but significant cost surges could delay or cancel projects. AI and Product Innovation: The company is prioritizing the development of AI-powered "agents" designed to automate tasks such as monitoring project schedules, budgets, and daily jobsite logs. These agents, currently being tested with customers, are intended to drive productivity and reduce risk by leveraging Procore's integrated data across project stakeholders. Go-to-Market Transition Impact: Procore completed a major go-to-market realignment in the quarter, shifting to a general manager-led model tailored to specific markets. While some disruption occurred, management said early feedback from teams and customers has been positive, especially in providing specialized technical support. International Expansion: International revenue grew faster than overall company growth, with management attributing progress to the new market-specific approach and increased technical resources. Courtemanche cited wins with large global customers as signs that international momentum is building. Contract Duration and Revenue Stability: CFO Howard Fu highlighted a shift toward longer contract durations, which increases revenue visibility and backlog stability. The proportion of annual recurring revenue on multiyear deals rose, supporting more predictable long-term performance. Management's outlook for the coming quarters is shaped by the evolving tariff environment, continued investment in product innovation, and adjustments to the company's go-to-market structure. Tariff-Driven Demand Risks: Management cautioned that persistent or escalating tariffs could raise construction costs and potentially delay or cancel projects, affecting software demand. The company is prepared to adjust spending and operations if demand weakens. AI Rollout and Platform Expansion: The planned deployment of AI agents and expanded platform capabilities are expected to drive incremental customer value, supporting both new sales and cross-sell opportunities. Management believes these investments will help customers manage complexity regardless of market conditions. Go-to-Market Execution: The ongoing transition to a market-specific sales model is designed to improve customer engagement and drive growth across underpenetrated segments and international markets. Management views successful adaptation to this new structure as a key determinant of future performance. Saket Kalia (Barclays): Asked how the shift toward longer contract durations affects backlog and revenue visibility. Howard Fu clarified that longer multi-year deals increase backlog metrics but do not alter revenue recognition timing. Dylan Becker (William Blair): Questioned the impact of AI-driven product enhancements on cross-sell and customer relationships. Courtemanche explained that the platform's data and workflow integration uniquely position Procore to automate high-value tasks and deepen partnerships. Joe Vruwink (Baird): Inquired whether customers are adjusting project commitments in anticipation of a downturn. Courtemanche responded that contractors typically plan for the long term and are not making abrupt changes in response to tariff headlines. Brent Bracelin (Piper Sandler): Asked what metric best tracks progress if construction activity slows. Courtemanche said annual recurring revenue per customer is a better indicator than simple customer count, given the focus on larger accounts and cross-sell. Jason Celino (KeyBanc): Sought clarity on the rationale and conservatism behind revenue guidance. Fu stated that guidance is built to withstand significant demand declines and that scenario planning supports management's confidence in meeting targets. In the coming quarters, the StockStory team will be watching (1) whether Procore's AI agent rollout translates into measurable operational improvements for customers; (2) signs of sustained international growth as the market-specific go-to-market model matures; and (3) any changes in customer procurement or project timelines stemming from evolving tariff policies. Progress on longer contract durations and successful cross-sell initiatives will also be critical indicators of execution. Procore currently trades at a forward price-to-sales ratio of 7.5×. Should you double down or take your chips? The answer lies in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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Yahoo
08-05-2025
- Business
- Yahoo
3 Growth Stocks to Stash
Growth boosts valuation multiples, but it doesn't always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022. Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. Keeping that in mind, here are three growth stocks with significant upside potential. One-Year Revenue Growth: +18.6% Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore (NYSE:PCOR) offers a software-as-service project, finance, and quality management platform for the construction industry. Why Do We Like PCOR? Ability to secure long-term commitments with customers is evident in its 18.8% ARR growth over the last year Prominent and differentiated software results in a top-tier gross margin of 81.2% Free cash flow margin is anticipated to expand by 5.8 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends Procore is trading at $64.47 per share, or 7.3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it's free. One-Year Revenue Growth: +31% The passion project of two chicken wing aficionados in Texas, Wingstop (NASDAQ:WING) is a popular fast-food chain known for its flavorful and crispy chicken wings offered in a variety of sauces and seasonings. Why Are We Bullish on WING? Average same-store sales growth of 16.9% over the past two years indicates its restaurants are resonating with diners Excellent operating margin of 25.3% highlights the efficiency of its business model Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends At $271.66 per share, Wingstop trades at 68x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it's free. One-Year Revenue Growth: +18.9% Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands. Why Will BRBR Beat the Market? Products are flying off the shelves as its unit sales averaged 20.8% growth over the past two years Earnings per share grew by 28% annually over the last three years, massively outpacing its peers Industry-leading 48.9% return on capital demonstrates management's skill in finding high-return investments BellRing Brands's stock price of $63.78 implies a valuation ratio of 26.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-04-2025
- Business
- Yahoo
Procore (PCOR) Q1 Earnings Report Preview: What To Look For
Construction management software maker Procore (NYSE:PCOR) will be reporting results tomorrow afternoon. Here's what to look for. Procore beat analysts' revenue expectations by 1.4% last quarter, reporting revenues of $302 million, up 16.2% year on year. It was a weaker quarter for the company, with full-year guidance of slowing revenue growth. It added 113 customers to reach a total of 17,088. Is Procore a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Procore's revenue to grow 12.3% year on year to $302.7 million, slowing from the 26.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.18 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Procore has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3.8% on average. Looking at Procore's peers in the vertical software segment, only Cadence has reported results so far. It met analysts' revenue estimates, delivering year-on-year sales growth of 23.1%. The stock traded up 5.7% on the results. Read our full analysis of Cadence's earnings results here. Investors in the vertical software segment have had steady hands going into earnings, with share prices flat over the last month. Procore is down 6.2% during the same time and is heading into earnings with an average analyst price target of $79.16 (compared to the current share price of $63.25). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
31-03-2025
- Business
- Yahoo
Procore (PCOR): Buy, Sell, or Hold Post Q4 Earnings?
While the broader market has struggled with the S&P 500 down 4.1% since September 2024, Procore has surged ahead as its stock price has climbed by 8.2% to $66.80 per share. This run-up might have investors contemplating their next move. Is it too late to buy PCOR? Find out in our full research report, it's free. Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore (NYSE:PCOR) offers a software-as-service project, finance, and quality management platform for the construction industry. While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. Procore's ARR punched in at $1.21 billion in Q4, and over the last four quarters, its year-on-year growth averaged 21.5%. This performance was impressive and shows that customers are willing to take multi-year bets on the company's technology. Its growth also makes Procore a more predictable business, a tailwind for its valuation as investors typically prefer businesses with recurring revenue. Software is eating the world. It's one of our favorite business models because once you develop the product, it usually doesn't cost much to provide it as an ongoing service. These minimal costs can include servers, licenses, and certain personnel. Procore's gross margin is one of the highest in the software sector, an output of its asset-lite business model and strong pricing power. It also enables the company to fund large investments in new products and sales during periods of rapid growth to achieve outsized profits at scale. As you can see below, it averaged an elite 82.2% gross margin over the last year. Said differently, roughly $82.22 was left to spend on selling, marketing, and R&D for every $100 in revenue. Many software businesses adjust their profits for stock-based compensation (SBC), but we prioritize GAAP operating margin because SBC is a real expense used to attract and retain engineering and sales talent. This is one of the best measures of profitability because it shows how much money a company takes home after developing, marketing, and selling its products. Over the last year, Procore's expanding sales gave it operating leverage as its margin rose by 10.9 percentage points. Although its operating margin for the trailing 12 months was negative 11.8%, we're confident it can one day reach sustainable profitability. There are definitely things to like about Procore, and with its shares beating the market recently, the stock trades at 7.7× forward price-to-sales (or $66.80 per share). Is now a good time to buy? See for yourself in our in-depth research report, it's free. With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we're laser-focused on finding the best stocks for this upcoming cycle. Put yourself in the driver's seat by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
15-02-2025
- Business
- Yahoo
Procore Technologies Full Year 2024 Earnings: EPS Misses Expectations
Revenue: US$1.15b (up 21% from FY 2023). Net loss: US$106.0m (loss narrowed by 44% from FY 2023). US$0.72 loss per share (improved from US$1.34 loss in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 20%. In the last 12 months, the only revenue segment was Internet Software & Services contributing US$1.15b. The largest operating expense was Sales & Marketing costs, amounting to US$547.3m (51% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of US$28.2m. Explore how PCOR's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Software industry in the US. Performance of the American Software industry. The company's shares are up 16% from a week ago. Be aware that Procore Technologies is showing 2 warning signs in our investment analysis that you should know about... Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
