Procore Technologies Q2 revenue beats on increased customer adoption

Overview

• Construction software firm's Q2 revenue rose 16% yr/yr, beating analyst expectations

• Company achieved GAAP operating profitability and strong free cash flow in Q2

• Gross revenue retention rate reached 95%, with 14% growth in high-value customers

Outlook

• Procore expects Q3 revenue between $382 mln and $384 mln

• Company sees FY26 revenue between $1,510 mln and $1,514 mln

• Procore expects FY27 non-GAAP operating margin of 25%

Result Drivers

• CUSTOMER ADOPTION - Co said increased customer adoption of its platform drove Q2 performance

• HIGH-VALUE CUSTOMER GROWTH - Number of organic customers contributing more than $100,000 of annual recurring revenue rose 14% yr/yr

• PRODUCT ENHANCEMENTS - Co launched new portfolio management, capital planning tools and expanded AI features during the qtr

Company press release: ID:nBw2rx7nra

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Procore Technologies Inc is $68.00, about 39.2% above its July 28 closing price of $48.84

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 30 three months ago

Reuters Recommended Reads

• July 28 - CoStar Group Q2 adjusted EPS beats estimates on cost control

• July 28 - Manhattan Associates Q2 results beat on cloud demand

• July 28 - Varonis Q2 revenue beats analyst estimates as cloud platform adoption increased

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)