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Earnings To Watch: Procore Technologies (PCOR) Reports Q1 Results Tomorrow


Kayode Omotosho /
2023/05/03 9:37 am EDT

Construction management software maker Procore Technologies (NYSE:PCOR) will be reporting results today after market hours. Here's what to look for.

Last quarter Procore Technologies reported revenues of $202.1 million, up 38.3% year on year, beating analyst revenue expectations by 6.36%. It was a mixed quarter for the company, with a solid beat of analyst estimates but underwhelming guidance for the next year. The company added 402 customers to a total of 14,488.

Is Procore Technologies buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Procore Technologies's revenue to grow 27.4% year on year to $203.2 million, slowing down from the 40% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.12 per share.

Procore Technologies Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.73%.

Looking at Procore Technologies's peers in the vertical software segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. PTC delivered top-line growth of 7.31% year on year, beating analyst estimates by 0.55% and Cadence reported revenues up 13.3% year on year, exceeding estimates by 1.51%. PTC traded up 1.46% on the results, Cadence was down 1.9%. Read our full analysis of PTC's results here and Cadence's results here.

There has been a stampede out of high valuation technology stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 9.71% over the last month. Procore Technologies is down 8.32% during the same time, and is heading into the earnings with analyst price target of $75.3, compared to share price of $53.92.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.