Construction management software maker Procore Technologies (NYSE:PCOR) reported results ahead of analysts' expectations in Q1 CY2024, with revenue up 26.2% year on year to $269.4 million. The company expects next quarter's revenue to be around $275 million, in line with analysts' estimates. It made a non-GAAP profit of $0.30 per share, improving from its profit of $0.01 per share in the same quarter last year.

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Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore Technologies (NYSE:PCOR) offers a software-as-service project, finance and quality management platform for the construction industry.

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Sales Growth

As you can see below, Procore Technologies's revenue growth has been very strong over the last three years, growing from $113.9 million in Q1 2021 to $269.4 million this quarter.

This quarter, Procore Technologies's quarterly revenue was once again up a very solid 26.2% year on year. However, its growth did slow down compared to last quarter as the company's revenue increased by just $9.39 million in Q1 compared to $12.13 million in Q4 CY2023. While we'd like to see revenue increase by a greater amount each quarter, a one-off fluctuation is usually not concerning.

Next quarter's guidance suggests that Procore Technologies is expecting revenue to grow 20.3% year on year to $275 million, slowing down from the 32.7% year-on-year increase it recorded in the same quarter last year. Looking ahead, analysts covering the company were expecting sales to grow 18.6% over the next 12 months before the earnings results announcement.

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Customer Growth

Procore Technologies reported 16,598 customers at the end of the quarter, an increase of 231 from the previous quarter. , suggesting that the company's customer acquisition momentum is slowing.

Key Takeaways from Procore Technologies's Q1 Results

It was good to see Procore Technologies beat analysts' revenue and EPS expectations this quarter. On the other hand, its billings unfortunately missed analysts' expectations and its customer growth decelerated. Overall, this was a mediocre quarter for Procore Technologies. The company is down 3.3% on the results and currently trades at $66 per share.

Procore Technologies may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.