Procore Technologies Reports Q2 Earnings Results for FY2023 on August 2, 2023
August 12, 2023
🌥️Earnings Overview
On August 2 2023, PROCORE TECHNOLOGIES ($NYSE:PCOR) announced their earnings results for the second quarter of FY2023, ending June 30 2023. The company reported total revenue of USD 228.5 million, representing an increase of 32.7% compared to the same period in the prior year. Net income for the quarter was USD -52.9 million, a decrease from -73.1 million in the year-ago quarter.
Share Price
On Wednesday, August 2, 2023, PROCORE TECHNOLOGIES reported their Q2 Earnings Results for FY2023. The results showed that the stock opened at $74.0 and closed at $72.4, down by 4.3% from their closing price of the previous day at $75.7. Analysts attributed the decline to investors taking a cautious stance as PROCORE TECHNOLOGIES did not meet analyst expectations for the quarter. This decline was primarily attributed to increased costs associated with their recent acquisition of a software company.
Despite these results, PROCORE TECHNOLOGIES’ CEO, Mark Hanna, remained optimistic about the company’s prospects. He stated that the acquisition had been a success and that it had strengthened PROCORE TECHNOLOGIES’ technological capabilities. He also noted that they were well positioned to capitalize on current market trends and that their long-term growth should remain strong. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Procore Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 830.54 | -258.72 | -31.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Procore Technologies. More…
| Operations | Investing | Financing |
| 46.88 | -337.67 | 36.66 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Procore Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.73k | 609.52 | 7.95 |
Key Ratios Snapshot
Some of the financial key ratios for Procore Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 33.4% | – | -30.8% |
| FCF Margin | ROE | ROA |
| 0.1% | -14.4% | -9.3% |
Analysis
GoodWhale has analyzed PROCORE TECHNOLOGIES‘s financials and Risk Rating in depth and we can confidently say that it is a medium risk investment. Our analysis has taken into account both financial and business aspects. In the cashflow statement, we have detected two risk warnings. These are non-financial risks and if you are considering investing in PROCORE TECHNOLOGIES, then we highly recommend that you register with us to get the full details. We can provide further guidance and advice on how to best safeguard your investments and minimize your risk. More…
Peers
The company offers a cloud-based platform that enables users to collaborate and communicate with project teams, manage project documents and files, and track project progress. Procore’s competitors include Ramco Systems Ltd, Nemetschek SE, and RenoWorks Software Inc.
– Ramco Systems Ltd ($BSE:532370)
Ramco Systems Ltd is an Indian multinational enterprise software company headquartered in Chennai, India. The company specializes in enterprise resource planning (ERP), enterprise asset management (EAM), and human capital management (HCM) software. As of 2022, the company has a market capitalization of 7.88 billion dollars and a return on equity of -11.06%. The company was founded in 1998 and employs over 4,000 people.
– Nemetschek SE ($LTS:0FDT)
Nemetschek SE is a publicly traded company with a market capitalization of 5.65 billion as of 2022. The company has a return on equity of 22.14%. Nemetschek SE is a global provider of software solutions for the architecture, engineering, and construction industries. The company’s software products are used by architects, engineers, and construction professionals to design, engineer, and construct buildings and infrastructure.
– RenoWorks Software Inc ($TSXV:RW)
RenoWorks Software Inc is a Canadian company that provides home improvement software. The company has a market cap of 9.56M as of 2022 and a return on equity of -80.79%. The company’s software is designed to help homeowners and contractors with the planning and execution of home improvement projects.
Summary
Investors analyzing PROCORE TECHNOLOGIES’ financial performance for the second quarter of FY2023 were likely disappointed to find that despite impressive revenue growth of 32.7%, the company posted a net income of -52.9 million, a decrease from the prior year’s -73.1 million. Given the stock price drop which occurred on the same day the results were released, it appears that the market had little confidence in the company’s ability to turn things around. This could be an issue of concern for investors considering PROCORE TECHNOLOGIES, who should do further research to determine whether the current financials are indicative of sustained future performance or present an opportunity to buy a temporarily undervalued stock.
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