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Procore's Q3 revenue beats, helped by DroneDeploy acquisition; lifts FY outlook

By Reuters News


Overview

  • US construction software firm's Q3 revenue rose 19% yr/yr, beating analyst expectations

  • Company reported non-GAAP operating margin of 23% for Q3

  • Board authorized new $300 mln stock repurchase program


Outlook

  • Procore expects Q4 revenue between $420 mln and $422 mln

  • Procore raises full-year 2026 revenue outlook to $1.557 bln-$1.559 bln

  • Procore forecasts 2027 non-GAAP operating margin of 25%


Result Drivers

  • PRODUCT INNOVATION - Co said new capabilities across flagship products and general availability of Procore AI contributed to Q3 results, per CEO Ajei Gopal

  • ACQUISITION IMPACT - Revenue growth included a 2 percentage point contribution from DroneDeploy acquisition, per CFO Rachel Pyles

  • CUSTOMER RETENTION - Co reported a 95% gross revenue retention rate in Q3


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$402.31 mln

$383.93 mln (24 Analysts)

Q3 Loss Per Share

$0.03

Q3 Net Loss

$4.59 mln

Q3 Gross Margin

80.00%

Q3 Adjusted Gross Margin

84.00%

Q3 Gross Profit

$323.62 mln

Q3 Operating Expenses

$330.80 mln

Q3 Operating Income

-$7.18 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "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 $70.00, about 11.9% above its November 2 closing price of $62.57

  • The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 26 three months ago


Reuters Recommended Reads

  • Nov 3 - Germany's TeamViewer cuts 2026 revenue outlook on enterprise deal delays

  • Nov 2 - Palantir Q3 revenue jumps 96%, beats analyst expectations

  • Nov 2 - Tempus AI Q3 revenue slightly beats estimates; raises guidance


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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