Construction management software maker Procore Technologies (NYSE:PCOR) will be reporting results tomorrow after the bell. Here's what to look for.

Procore Technologies beat analysts' revenue expectations by 4.7% last quarter, reporting revenues of $260 million, up 28.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts' billings estimates. The company added 300 customers to a total of 16,367.

Is Procore Technologies a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Procore Technologies's revenue to grow 23.1% year on year to $262.8 million, slowing from the 33.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Procore Technologies has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 5.7% on average.

Looking at Procore Technologies's peers in the vertical software segment, only Cadence has reported results so far. It met analysts' revenue estimates, posting year-on-year sales declines of 1.2%. The stock was down 1.2% on the results.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share prices down 3.5% on average over the last month. Procore Technologies is down 11.6% during the same time and is heading into earnings with an average analyst price target of $86.9 (compared to the current share price of $71).

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