Procore Continues To Expand Their Product Features And AI Capabilities

Value Detection
864 Followers
(6min)

Summary

  • Procore delivered solid Q1 results with 15% revenue growth, strong margins, and robust customer retention, supporting my positive outlook.
  • International expansion and product innovation, especially in AI and geospatial features, remain key growth drivers and differentiators versus competitors like ACC.
  • Procore's large addressable market and low current penetration offer significant runway for customer growth and upselling opportunities.
  • Potential risks include macroeconomic headwinds from tariffs, which could impact construction activity, but management remains confident in navigating these challenges.

Three workers (architects, engineers) examining building site

Catherine Delahaye

In my previous article on Procore Technologies (NYSE:PCOR), I highlighted the resilience of their business model and some of the future catalysts for revenue growth. In this article, I would retain my buy rating. I will discuss some

This article was written by

864 Followers
I believe true value is from growth, not cigar butts. Time is investors' best friend.  Evaluation matters but need to be viewed from a long-term perspective. Great businesses often offer tremendous value to society and are super durable. When your products and services are 10x better than others, you deserve to grow 10x (or people you to grow 10x) and stay dominant. Selection, convenience, and value are tremendous characteristics I am looking for.  Durability is a great multiplier of value (I don't buy a cyclical business). The capability of making products and service features that keep crushing competitors. Adding multiple revenue streams. Anti-fragile business structures and extremely complex operations are often preferred. A great test is to find if the business can come back under adversity (macroµ).  Uniqueness is NO.1 value driver. The low cost required to maintain existing business offers high leverage for reinvesting and growth. Low big marketing dollars are needed. TRUST and NETWORK EFFECTS are also great tools to spot durability. Management is also extremely important. I want executives to have aligned interests and hyper-focus on the business (seasoned CEO, founders, family businesses). I hate politics and titles. Good business always empowers people and attracts talent. Good managers are continuous learners.The success of amazon showed that truly focusing on customers can bring extraordinary returns for investors. I love the win-win-win situations where how a true ecosystem was built. If a manager finds it has a durable business, he should buyback, buyback, buyback!!! The best time for investing is when the bad news were all known to people. When layoff started and companies don't have to chase people, then real value starts to show. I don't buy if I am not planning to buy more when it goes down. Price actions are all based on expectations and surprises, I am more interested in the ones that with negativities priced in but positive factors underestimated. Associated with/friends with the existing author  Obvious Investing.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PCOR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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