Procore 2025 Q1 Earnings Wider Losses Despite Revenue Growth

Procore Technologies, Inc. (PCOR) reported its fiscal 2025 Q1 earnings on May 01st, 2025. The results showed a mixed performance, with revenue growth surpassing prior expectations, but net income losses widening significantly. Guidance for the upcoming quarter and full year remains unchanged, indicating confidence in future revenue targets despite ongoing tariff uncertainties impacting the industry.

Revenue

Procore's revenue increased by 15.3% to $310.63 million in the first quarter of 2025, up from $269.43 million in the same quarter of 2024. This growth reflects the company's continued expansion and market penetration despite challenging economic conditions.

Earnings/Net Income

Procore's losses deepened to $0.22 per share in Q1 2025, compared to a loss of $0.08 per share in Q1 2024, marking a 175% wider loss. Net loss widened to $32.99 million from $10.97 million, a 200.8% increase. Overall, the EPS reflects a negative financial performance, highlighting ongoing challenges despite revenue growth.

Price Action

The stock price of Procore edged down 2.54% during the latest trading day, increased 0.35% over the most recent full trading week, and dropped 4.26% month-to-date.

Post-Earnings Price Action Review

The impact of Procore's earnings report metrics on its stock price has been inconsistent across various time frames. Revenue increases did not significantly affect short-term stock movements, with win rates of 50% over three days, 56.25% over ten days, and 37.5% over thirty days, indicating mixed influence. Net income also showed similar patterns with identical win rates, suggesting it is not a reliable predictor for short-term price changes. EPS impacts were slightly more positive, yet still limited, with a maximum post-earnings return of 4.32%. Overall, while these metrics can influence stock price, their effects are not consistently positive, urging investors to consider broader factors in their decision-making.

CEO Commentary

Tooey Courtemanche, Founder, President, and CEO, expressed optimism regarding Procore's business performance, noting a solid quarter with 15% year-over-year revenue growth and over 2,400 customers contributing more than $100,000 in ARR. Courtemanche acknowledged uncertainties from tariff policies but indicated they have not materially affected customer behavior or plans. He emphasized the importance of Procore's platform in driving efficiency and productivity, highlighting its ability to help customers manage risks associated with rising costs. He remains committed to the company's long-term potential, emphasizing the focus on innovation, particularly through AI, to enhance customer value and operational efficiency.

Guidance

Procore expects Q2 2025 revenue between $310 million and $312 million, representing year-over-year growth of 9% to 10%. For the full year of fiscal 2025, the company maintains its revenue guidance at a range between $1.286 billion and $1.29 billion, reflecting total year-over-year growth of 12%. Non-GAAP operating margin guidance for the year remains between 13% and 13.5%, indicating a margin expansion of 300 to 350 basis points. The company remains cautious due to tariff uncertainties but is confident in its ability to achieve these targets.

Additional News

In recent developments, Procore has repurchased approximately 1.5 million shares of its common stock for about $100 million as part of its authorized share repurchase program. Of the original authorized amount, $200 million remains available for future share repurchases. The company also released its inaugural Future State of Construction Report, providing insights into how AI, automation, and workforce shifts are setting key trends and challenges for the industry over the next decade. Additionally, Procore achieved a gross revenue retention rate of 95% in the first quarter, highlighting strong customer loyalty and consistent growth in its customer base.