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Procore ($PCOR)
I need to own more of this company, I love to lower my average cost, but the price has only been down to my average once since I got in. In hindsight I should have started with a larger position, to take advantage of that low cost.
Procore is a software used in construction management to help improve communication between everyone on a project including owners, contractors, engineers, and architects.
I'm not the most technical person but the chart seems to be trending upward, and now seems like a good low point to add some more shares.
Their latest earnings were great as well, they have beat estimates for the third time in a row and are now in positive territory for EPS. Here are some Q1 highlights from Business Wire.
You got in at a far better price then me (I opened a position at $65.05 and added at $53.57 and $54.08). Regardless, I'm with you on my feelings for Procore; very bullish. To add more, which I want to do, I need to see gross margins consistently above 80% and operating and net margins get closer to breakeven. Also, SBC as a % of revenue has been over 20% 6 of the 7 quarters since coming public and the one quarter that wasn't was at 19.7%. That needs to be consistently below 20%.
@interrobangbros I am screenshotting this comment haha, thanks so much for your insight man. That is a good amount of stock going to management too i've never really looked into that metric, what is the significance? My first thought was management wants more stock because they are bullish, is that a bad assumption haha?
@seasnar SBC isn't just management but rank-and-file employees as well. Basically it's salary paid in stock. I'm not against SBC as I want employees with skin in the game as well, but eventually the company needs to slow the rate of dilution. Procore is still relatively new so we don't have too much data but in regards to shares outstanding we've had 3 quarters lap a year ago period and the dilution has been 4.4%, 4.2%, and now 3.8%. Bringing SBC as a % of revenue to below 20% consistently would keep dilution below 4% YoY each quarter. Ultimately, it needs to get to <10% to quarterly YoY dilution to <2%. That'd be reasonable to me.
@interrobangbros I understand now, had to read that a couple times but yeah. Let's hope they keep bringing both of those down, I will definitely start to put my eye on those two things, as well as try to build a further understanding of how it affects things!! Thanks for the explanation man. 😁
I know that @ccm_brett did a podcast episode on them too
@joeyhirendernath Was from a bit ago but I found it!!! Thanks so much for the rec. gonna listen now 😁
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