Construction management software provider Procore Technologies (NYSE: PCOR) will be reporting earnings this Tuesday before market hours. Here’s what investors should know.
Procore Technologies beat analysts’ revenue expectations last quarter, reporting revenues of $349.1 million, up 15.6% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ billings estimates and accelerating customer growth. It added 227 customers to reach a total of 17,850.
Is Procore Technologies a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Procore Technologies’s revenue to grow 13.5% year on year, slowing from the 15.3% increase it recorded in the same quarter last year.
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 Technologies has a history of exceeding Wall Street’s expectations.
Looking at Procore Technologies’s peers in the vertical software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Cadence Design Systems delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 1.9%, and Dolby Laboratories reported revenues up 7.1%, topping estimates by 2.8%. Cadence Design Systems traded down 3.3% following the results while Dolby Laboratories was also down 10.4%.
Read our full analysis of Cadence Design Systems’s results here and Dolby Laboratories’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 8.7% on average over the last month. Procore Technologies is up 3.6% during the same time and is heading into earnings with an average analyst price target of $71 (compared to the current share price of $59.28).
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