Procore Technologies (PCOR) Q4 Earnings Preview: Key Points to Watch

Procore Technologies, a leading provider of construction management software, is set to release its latest earnings report this Thursday. In the previous quarter, the company exceeded revenue expectations by 3.3%, raking in $338.9 million, marking a 14.5% year-over-year increase. Procore also outperformed analysts’ estimates for EBITDA and billings, while adding 122 new customers to bring its total to 17,623.

Analysts are anticipating a 12.8% year-over-year revenue growth for Procore in the upcoming quarter, with projected revenues of $340.8 million. This growth rate represents a slight deceleration from the 16.2% increase observed in the same quarter last year. Adjusted earnings are forecasted to reach $0.36 per share. Despite the growth expectations, analysts have mostly maintained their estimates in the weeks leading up to the earnings report, indicating confidence in the company’s performance.

Procore has a track record of surpassing Wall Street’s expectations, having beaten revenue estimates consistently for the past two years by an average of 3.1%. By examining the results of peers in the vertical software industry, such as Dolby Laboratories and PTC, there are insights into what could be expected for Procore. Dolby Laboratories saw a 2.9% decline in revenues year over year, exceeding analysts’ forecasts by 4.4%, while PTC reported a 21.4% revenue increase, surpassing estimates by 8.2%. Following their earnings reports, both companies experienced an upward trend in their stock prices.

The ongoing uncertainty surrounding potential tariffs and corporate tax changes has created significant market volatility in recent years. As a result, vertical software stocks have faced challenges, with an average decrease of 16.8% in share prices over the last month. Procore Technologies has seen a more significant decline of 28.8% during the same period, and analysts have set an average price target of $83.89, substantially higher than the current share price of $52.58.

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