Construction management software provider Procore Technologies (NYSE: PCOR) will be reporting earnings this Tuesday after market close. Here’s what you need to know.
Procore Technologies beat analysts’ revenue expectations last quarter, reporting revenues of $375.2 million, up 15.8% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ adjusted operating income estimates.
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 13.3% year on year, slowing from the 14.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q3 results, giving us a hint as to what we can expect. Cadence Design Systems delivered year-on-year revenue growth of 22%, beating analysts’ expectations by 1.1%, and Q2 Holdings reported revenues up 11.9%, topping estimates by 2%. Cadence Design Systems traded up 6.5% following the results while Q2 Holdings was down 3.9%.
Read our full analysis of Cadence Design Systems’s results here and Q2 Holdings’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 5% on average over the last month. Procore Technologies is up 11.1% during the same time and is heading into earnings with an average analyst price target of $69.64 (compared to the current share price of $60.22).
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