Overview

• US construction software firm's Q1 revenue rose 16% yr/yr, beating analyst expectations

• Company posted GAAP net loss of $9.1 mln, with positive non-GAAP net income

• Repurchased 1.8 mln shares for $100 mln in Q1 as part of buyback program

Outlook

• Procore expects Q2 2026 revenue between $364 mln and $366 mln

• Company sees Q2 2026 non-GAAP operating margin of 17.5% to 18.5%

• Procore expects full-year 2026 revenue between $1,499 mln and $1,503 mln

Result Drivers

• CUSTOMER RETENTION - Achieved 95% gross revenue retention rate in Q1, supporting recurring revenue base

• LARGE CUSTOMER GROWTH - Number of organic customers contributing more than $100,000 of annual recurring revenue rose 16% yr/yr to 2,795

• PLATFORM AND AI ENHANCEMENTS - Strengthened flagship platform and agentic AI capabilities, according to CEO Ajei Gopal

Company press release: ID:nBw2p7CkSa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$359.28 mln	$352.26 mln (21 Analysts)
Q1 EPS		-$0.06
Q1 Net Income		-$9.10 mln
Q1 Gross Margin		80.00%
Q1 Adjusted Gross Margin		84.00%
Q1 Gross Profit		$287.79 mln
Q1 Operating Expenses		$303.46 mln
Q1 Operating Income		-$15.67 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 6 "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 $72.00, about 15.9% above its May 4 closing price of $62.10

• The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 32 three months ago

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