Procore Earnings: What To Look For From PCOR

Construction management software maker Procore (NYSE:PCOR) will be announcing earnings results tomorrow after market close. Here’s what to expect.

Procore beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $295.9 million, up 19.4% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and accelerating customer growth. It added 225 customers to reach a total of 16,975.

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 14.5% year on year to $297.8 million, slowing from the 28.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.11 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 4.5% on average.

Looking at Procore’s peers in the vertical software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. PTC delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 1.9%, and Doximity reported revenues up 24.6%, topping estimates by 9.6%. PTC traded down 9.6% following the results while Doximity was up 35.5%.

Read our full analysis of PTC’s results here and Doximity’s results here.

There has been positive sentiment among investors in the vertical software segment, with share prices up 9.3% on average over the last month. Procore is up 1.2% during the same time and is heading into earnings with an average analyst price target of $84.69 (compared to the current share price of $75.70).

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