Procore Technologies (PCOR) Reports Earnings Tomorrow. What To Expect

Kayode Omotosho /
2024/02/14 2:01 am EST

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

Last quarter Procore Technologies reported revenues of $247.9 million, up 33% year on year, beating analyst revenue expectations by 6.1%. It was a mixedquarter for the company, with revenue and EPS exceeding expectations. On the other hand, its customer growth slowed and its revenue guidance for next quarter came in slightly below Wall Street's estimates. The company added 363 customers to a total of 16,067.

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 22.9% year on year to $248.3 million, slowing down from the 38.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 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 5.8%.

Looking at Procore Technologies's peers in the vertical software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. PTC delivered top-line growth of 18.1% year on year, beating analyst estimates by 2.3% and Cadence reported revenues up 18.8% year on year, exceeding estimates by 0.7%. PTC traded flat on the results, and Cadence was down 5.2%.

Read our full analysis of PTC's results here and Cadence's results here.

There has been positive sentiment among investors in the vertical software segment, with the stocks up on average 3.6% over the last month. Procore Technologies is up 7% during the same time, and is heading into the earnings with analyst price target of $76.1, compared to share price of $73.1.

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