2. Procore Technologies, Inc. (NYSE:PCOR)
Number of Hedge Fund Holders as of Q4: 54
XN Exponent Advisors LLC’s Equity Stake: $193.12 Million
Procore Technologies, Inc. (NYSE:PCOR), a leading provider of construction management software, reported strong financial results for the fourth quarter and full year of 2024. Founded in 2002 and headquartered in Carpinteria, California, the company has solidified its position in the construction technology sector. Its revenue for the fourth quarter reached $302 million, reflecting a 16% increase compared to the previous year. For the full year, revenue rose by 21% to $1.15 billion. The company also reported a gross revenue retention rate of 94% and a net revenue retention rate of 106%, demonstrating its ability to maintain and expand its customer base.
Procore Technologies, Inc. (NYSE:PCOR) experienced significant growth in high-value customers, with 2,333 organizations contributing over $100,000 in annual recurring revenue, marking a 16% increase year-over-year. Additionally, the number of customers generating over $1 million in annual recurring revenue grew by 39%, reaching 86 by the end of 2024. The company also expanded its workforce, ending the year with 4,203 employees, a 14% increase from the prior year. As part of its ongoing innovation efforts, Procore Technologies, Inc. (NYSE:PCOR) introduced several new products, including Procore Artificial Intelligence, AI Agents, Resource Management, Safety, and Scheduling, all unveiled at Groundbreak 2024, a premier industry event.
Looking ahead to 2025, Procore Technologies, Inc. (NYSE:PCOR) projects continued growth, with first-quarter revenue expected to range between $301 million and $303 million, reflecting a 12% increase year-over-year. The company anticipates a non-GAAP operating margin of 7% to 8% for the quarter. For the full year, Procore forecasts revenue between $1.28 billion and $1.29 billion, maintaining the same 12% growth rate. Additionally, the company expects to achieve a non-GAAP operating margin between 13% and 13.5%, further strengthening its profitability.
Procore’s consistent revenue growth, expanding customer base, and investment in new technology position it as a resilient player in the construction software industry. With strong financial performance, high customer retention, and continuous product innovation, the company is well-positioned for sustained success. These factors make Procore Technologies, Inc. (NYSE:PCOR) a top stock to buy according to XN Exponent Advisors LLC.
Conestoga Capital Advisors stated the following regarding Procore Technologies, Inc. (NYSE:PCOR) in its Q4 2024 investor letter:
“Procore Technologies, Inc. (NYSE:PCOR), founded in 2002 and based in Carpinteria CA, is a market leader in cloud-based construction management software sold to general contractors, subcontractors, and building owners. PCOR competes in an underpenetrated market, has had historical double-digit growth and has recently demonstrated dramatic improvements in operating margins. PCOR has also been making improvements in its go-to-market strategy, which we believe should further accelerate growth and strengthen its customer relationships.”
