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On Monday, Goldman Sachs reiterated its Buy rating on Procore Technologies , Inc (NYSE:PCOR) stock, with a price target of $73.00. The affirmation follows Procore's recent Investor Webinar with the company's top executives, where they discussed their go-to-market (GTM) strategy after the second quarter financial results.
The analyst highlighted several key takeaways from the webinar, including Procore's shift towards value-based and consultative selling, which is expected to enhance customer retention and create more opportunities for cross-selling. This strategy is supported by the addition of product specialists who can showcase the interconnectedness of Procore's extensive solutions portfolio.
Another focus area for Procore is the investment in salesforce enablement. The goal is to ensure that account executives are well-versed in the product offerings and can convincingly demonstrate the return on investment to increasingly technical buyers.
Additionally, Procore is aiming to strengthen the technical knowledge within its customer success organization. This initiative is designed to foster a closer feedback loop between sales representatives, product specialists, and the product/engineering teams.
The analyst expressed confidence in the company's planned investments in new representatives and specialists in the second half of the year. These investments are anticipated to pave the way for the fiscal year 2025 compensation plan reset, which will see the GTM initiatives take full effect. The new Chief Revenue Officer, Larry Stack, received particular praise for his leadership over the GTM organization.
Furthermore, the Chief Financial Officer's detailed plan for tracking Procore's performance during this transitional period was noted, with the expectation of higher growth and margins serving as long-term indicators of success.
Goldman Sachs believes that Procore's execution of its GTM strategy during an economic downturn could position the company favorably for the expected upturn in construction activity. This potential rebound, which may occur in the near term as monetary policies become less restrictive, could enable Procore to re-accelerate to a sustainable 20% revenue growth rate.
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