Loss-Making Procore Technologies, Inc. (NYSE:PCOR) Expected To Breakeven In The Medium-Term
Procore Technologies, Inc. (NYSE:PCOR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Procore Technologies, Inc. engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The US$11b market-cap company announced a latest loss of US$190m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which Procore Technologies will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Procore Technologies
According to the 17 industry analysts covering Procore Technologies, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$17m in 2026. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 43%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Procore Technologies given that this is a high-level summary, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that Procore Technologies has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Procore Technologies to cover in one brief article, but the key fundamentals for the company can all be found in one place – Procore Technologies' company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:
Valuation: What is Procore Technologies worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Procore Technologies is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Procore Technologies’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This 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.
