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CARPINTERIA, Calif. - Construction technology provider Procore Technologies, Inc. (NYSE:PCOR), a $10.7 billion market cap company with impressive 81% gross profit margins according to InvestingPro, announced Tuesday it has achieved Federal Risk and Authorization Management Program (FedRAMP) In Process designation, a key step toward securing FedRAMP Moderate authorization for its government-focused services.
The designation, which places Procore on the FedRAMP Marketplace, represents progress in the company’s efforts to expand its presence in the U.S. public sector construction market. The company has demonstrated strong growth momentum, with revenue increasing 18.6% over the last twelve months.
Once fully authorized, Procore for Government will offer a FedRAMP Moderate authorized environment, called Government Zone, for the company’s core solutions in project execution, financial management, and reporting and analytics.
"Many of the largest projects in the U.S.—from power plants to roads to water systems and bridges—are developed by the public sector," said Steve Davis, President of Product and Technology at Procore, according to the press release.
The company states its government platform will connect project lifecycle elements to enhance collaboration and operational efficiency while helping contractors meet Cybersecurity Maturity Model Certification (CMMC) Level 2 requirements.
Procore’s technology platform currently supports construction projects across more than 150 countries, with over three million projects having utilized the company’s solutions to date, according to information provided in the announcement.
The FedRAMP program standardizes security assessment and authorization for cloud products and services used by U.S. federal agencies. According to InvestingPro analysis, Procore maintains a strong balance sheet with more cash than debt, positioning it well for public sector expansion. For deeper insights into Procore’s government sector potential and comprehensive financial analysis, investors can access the detailed Pro Research Report, available exclusively on InvestingPro.
In other recent news, Procore Technologies reported its first-quarter earnings for 2025, surpassing both revenue and earnings per share (EPS) forecasts. The company achieved a non-GAAP EPS of $0.23, exceeding the consensus estimate of $0.18, and reported revenue of $311 million, which was higher than the expected $302.6 million. This marked a 15% year-over-year revenue growth, driven by strong international performance. Analysts from Citizens JMP reaffirmed their Market Outperform rating with a $95 price target, citing confidence in Procore’s market position and future prospects. However, Stifel analysts adjusted their price target for Procore to $75 from $93 while maintaining a Buy rating, noting that Procore’s second-quarter guidance was below consensus. Despite this, Procore’s management expressed satisfaction with their go-to-market changes and maintained their full-year revenue guidance. Additionally, BMO Capital analysts highlighted growth potential for Dayforce, expecting an improved bookings environment to boost momentum by fiscal year 2025. These developments reflect the companies’ strategic efforts to navigate current market conditions and aim for long-term growth.
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