Procore Technologies (PCOR) to report earnings tomorrow: here is what to expect

What happened

Procore Technologies, a construction management software provider, will report earnings on Tuesday after market close. Last quarter it reported revenue of $375.2 million, up 15.8% year on year. Analysts expect revenue to grow 13.3% this quarter, slower than the 14.5% increase in the same quarter last year.

Confirmed

Global impact / market context

Slower expected revenue growth means the company may sell less additional software to builders than a year earlier, which can pressure profit if costs do not fall in step. The prior quarter's strong billings beat suggests demand held up recently, so the update will show whether that strength continued.

Analyst inference

Software companies selling to construction firms are watched for signs that building activity and technology budgets are holding up. Peer results were mixed: Cadence Design Systems grew revenue 22%, while the supplied article's reference to Q2 Holdings is cut off, so no Q2 Holdings figure can be used.

Analyst inference

What to watch

1. Watch whether reported revenue reaches the 13.3% year-on-year growth analysts expect this quarter, after last quarter's $375.2 million, up 15.8%. The gap between those two rates shows whether growth is slowing. Confirmed
2. Watch whether management keeps or raises its own revenue and profit guidance, that is its forecast for future results. Guidance changes can reset investor expectations more than a single past quarter's numbers. Proposed
3. Watch billings, which track amounts invoiced to customers and hint at future revenue. Another beat there would suggest demand from construction firms remains firm despite the expected slowdown in reported growth. Analyst inference

Evidence

• stockstory.org