Procore Technologies (PCOR) Stock Forecast & Price Target

Procore Technologies Inc. is projected to achieve revenues between $1.299 billion and $1.302 billion in FY25, reflecting a year-over-year growth of 12.8% to 13.0%, supported by a 15% increase in high-value annual recurring revenue customers. The company has experienced a notable rise in large deals, with six- and seven-figure contracts growing by 21% year-over-year, which indicates strong market demand and effective execution strategies. Furthermore, Procore anticipates enhancements in its profitability metrics, with gross margins expected to remain in the mid-80s and non-GAAP operating margins projected at 13.0% to 13.5%, providing a solid foundation for continued growth into FY26.

Procore Technologies Inc. is facing a challenging outlook as its operating margins are projected to decline slightly in the upcoming quarter, and its gross margin fell short of expectations, reflecting rising costs associated with its go-to-market transition. Additionally, cash flow from operations and free cash flow both significantly underperformed against estimates, indicating potential liquidity issues that could strain growth initiatives. The company’s revenue guidance for FY25 remains cautious, suggesting insufficient confidence in its ability to capitalize on growth opportunities amidst sector-specific headwinds such as labor shortages and declining productivity rates in the construction industry.