Procore Q3 revenue beats estimates on strong customer retention rate

Procore Technologies

05/11/2025 22:04

Overview

Procore Q3 revenue grows 15% yr/yr, beating analyst expectations

Free cash inflow for Q3 rises 194% yr/yr

The construction management software firm on Nov. 3 announced new $300 mln stock repurchase program

Outlook

Procore expects Q4 2025 revenue between $339 mln and $341 mln

Procore sees full-year 2025 revenue between $1,312 mln and $1,314 mln

Company anticipates Q4 non-GAAP operating margin of 14.4%

Result Drivers

CUSTOMER RETENTION - Achieved a gross revenue retention rate of 95% in Q3, supporting consistent revenue growth

AI INNOVATIONS - Announced new AI features at Groundbreak 2025, including Procore Assist and Procore Agent Builder

AWS COLLABORATION - Strategic Collaboration Agreement with AWS to accelerate AI product innovation and establish Procore availability in AWS Marketplace

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$338.85 mln
$328.20 mln (20 Analysts)
Q3 EPS
-$0.06
Q3 Net Income
-$9.10 mln
Q3 Gross Margin
80.00%
Q3 Adjusted Gross Margin
84.00%
Q3 Gross Profit
$270.09 mln
Q3 Operating Expenses
$285.12 mln
Q3 Operating Income
-$15.03 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 9 "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 $82.00, about 13.8% above its November 4 closing price of $70.69

The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 51 three months ago

Press Release: ID:nBw3RB7yfa

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(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.)