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Construction management software maker Procore (NYSE:PCOR) reported Q1 CY2025 results exceeding the market’s revenue expectations , with sales up 15.3% year on year to $310.6 million. On the other hand, next quarter’s revenue guidance of $311 million was less impressive, coming in 1.4% below analysts’ estimates. Its non-GAAP profit of $0.23 per share was 24.4% above analysts’ consensus estimates.

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Procore (PCOR) Q1 CY2025 Highlights:

• Revenue: $310.6 million vs analyst estimates of $302.7 million (15.3% year-on-year growth, 2.6% beat)

• Adjusted EPS: $0.23 vs analyst estimates of $0.18 (24.4% beat)

• Adjusted Operating Income: $32.4 million vs analyst estimates of $23.12 million (10.4% margin, 40.2% beat)

• The company slightly lifted its revenue guidance for the full year to $1.29 billion at the midpoint from $1.29 billion

• Operating Margin: -11.7%, down from -7% in the same quarter last year

• Free Cash Flow Margin: 15%, up from 0.1% in the previous quarter

• Customers: 17,306, up from 17,088 in the previous quarter

• Market Capitalization: $9.56 billion

Company Overview

Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore (NYSE:PCOR) offers a software-as-service project, finance, and quality management platform for the construction industry.

Sales Growth

A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, Procore’s sales grew at an impressive 28.6% compounded annual growth rate over the last three years. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis.

This quarter, Procore reported year-on-year revenue growth of 15.3%, and its $310.6 million of revenue exceeded Wall Street’s estimates by 2.6%. Company management is currently guiding for a 9.4% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 11.1% over the next 12 months, a deceleration versus the last three years. Still, this projection is above average for the sector and suggests the market is forecasting some success for its newer products and services.

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