UBS has revised its price target for Procore Technologies (PCOR, Financial), reducing it from $110 to $87 while maintaining a Buy rating on the stock. The adjustment comes as the firm remains cautiously optimistic about Procore's short-term demand, which is bolstered by projects with secured funding. However, there's concern about potential spending slowdowns or delays if ongoing uncertainties and tariff issues continue.
UBS suggests that the market has already accounted for these potential risks to some extent, and recent assessments have yielded more favorable results than initially anticipated. Despite the revised price target, the firm maintains confidence in Procore's near-term performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Procore Technologies Inc (PCOR, Financial) is $83.45 with a high estimate of $110.00 and a low estimate of $65.00. The average target implies an upside of 38.44% from the current price of $60.28. More detailed estimate data can be found on the Procore Technologies Inc (PCOR) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Procore Technologies Inc's (PCOR, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Procore Technologies Inc (PCOR, Financial) in one year is $95.73, suggesting a upside of 58.81% from the current price of $60.28. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Procore Technologies Inc (PCOR) Summary page.
PCOR Key Business Developments
Release Date: February 13, 2025
- Total Revenue: $302 million in Q4, up 16% year-over-year.
- International Revenue Growth: 19% year-over-year.
- Non-GAAP Operating Income: Negative $2 million, with an operating margin of negative 1% for Q4.
- Free Cash Flow: $128 million for the year, a 171% year-over-year improvement.
- Revenue Guidance for Q1 2025: Between $301 million and $303 million, representing 12% year-over-year growth.
- Non-GAAP Operating Margin Guidance for Q1 2025: Expected to be between 7% and 8%.
- Full Year Fiscal 2025 Revenue Guidance: Raised to between $1.285 billion and $1.29 billion, representing 12% year-over-year growth.
- Full Year Fiscal 2025 Non-GAAP Operating Margin Guidance: Raised by 50 basis points to be between 13% and 13.5%, implying year-over-year margin expansion between 300 and 350 basis points.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Procore Technologies Inc (PCOR, Financial) reported strong booking performance with over 130 six- and seven-figure transactions in Q4.
- The company grew the number of customers contributing more than $1 million in ARR by 39% year over year.
- Procore Technologies Inc (PCOR) expanded its non-GAAP operating margin by 800 basis points for the year.
- The company generated $128 million in free cash flow, indicating strong cash flow generation.
- Procore Technologies Inc (PCOR) made significant strides in AI-powered innovations, enhancing its platform with tools like Copilot and Agents.
Negative Points
- Q4 non-GAAP operating income was negative $2 million, representing an operating margin of negative 1%.
- The company anticipates potential disruption in the first half of 2025 due to its go-to-market transition.
- Procore Technologies Inc (PCOR) does not expect its Pay product to be material to revenues in 2025 due to implementation timelines.
- The company is guiding conservatively for 2025, reflecting caution due to ongoing go-to-market changes.
- Procore Technologies Inc (PCOR) experienced higher headcount costs from exceeding hiring targets, impacting margins.
