Construction management software maker Procore (NYSE: PCOR) will be reporting earnings this Thursday afternoon. Here’s what to look for.
Procore beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $310.6 million, up 15.3% year on year. It was a strong quarter for the company, with accelerating customer growth and an impressive beat of analysts’ EBITDA estimates. It added 218 customers to reach a total of 17,306.
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 9.6% year on year to $311.8 million, slowing from the 24.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.
The majority of analysts covering the company have 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 3.5% on average.
Looking at Procore’s peers in the vertical software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Cadence delivered year-on-year revenue growth of 20.2%, beating analysts’ expectations by 1.8%, and Agilysys reported revenues up 20.7%, topping estimates by 3.1%. Cadence traded up 9.8% following the results while Agilysys was down 4.7%.
Read our full analysis of Cadence’s results here and Agilysys’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 2.4% on average over the last month. Procore is up 11.5% during the same time and is heading into earnings with an average analyst price target of $79.94 (compared to the current share price of $76.30).
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