Procore Technologies (PCOR) Q3 Earnings Report Preview: What To Look For
Construction management software maker Procore Technologies (NYSE:PCOR) will be reporting earnings tomorrow after market close. Here's what you need to know.
Last quarter Procore Technologies reported revenues of $228.5 million, up 32.7% year on year, beating analyst revenue expectations by 4.84%. It was a good quarter for the company, with a decent beat of analysts' revenue estimates. We were also glad that its full-year revenue guidance came in higher than Wall Street's expectations and that it maintained its #1 ranking across 11 categories in the G2 2023 Summer Report.The company added 615 customers to a total of 15,704.
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 25.4% year on year to $233.7 million, slowing down from the 41.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 per share.
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 5.6%.
Looking at Procore Technologies's peers in the vertical software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Cadence delivered top-line growth of 13.4% year on year, beating analyst estimates by 1.82%, and Agilysys reported revenues up 22.8% year on year, exceeding estimates by 3.13%. Cadence traded down 0.92% on the results, Agilysys was up 21.7%.
Read our full analysis of Cadence's results here and Agilysys's results here.
Tech stocks have been facing declining investor sentiment since 2022 and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share price declining 8.09% over the last month. Procore Technologies is down 8.92% during the same time, and is heading into the earnings with analyst price target of $82.9, compared to share price of $60.79.
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The author has no position in any of the stocks mentioned.
