July 2023 Procore Technologies (PCOR) and Hirsch The Horizon Bourbon Review

Procore Technologies (PCOR)

July 2023

Authors: Allan Maule, Mark Peters

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Website: procore.com

Twitter: @procoretech

CEO: Craig F. “Tooey” Courtemanche

Founder: Craig F. “Tooey” Courtemanche

Market Cap at Time of Article: $9.26B

Current Analyst Recommendations (12 analysts’ price targets average): $76.00, so at its current price of $65.35 this is a clear buy.

Revenue: $213.53M last quarter (+34% YOY), beating estimates by $10.31M.

Insider Ownership: 6.84%. It could be better, but the fact that PCOR is founder-led is a strong sign.

What makes Procore (PCOR) worth your hard-earned money for the next decade or more?

When you think of industries that rely heavily on digital technology, the construction industry is probably far down your list. However, in today’s environment of higher labor costs, more complex zoning and regulation, and less reliable supply chains, builders need all the advantages they can get. Enter Procore. The company was founded in 2002 but is finding special success these days by offering a digital platform to streamline construction bidding, estimating, and managing building projects. Their big value add is digitizing construction project workflows from end to end, and because so many competitors still rely on spreadsheets (and even pencil and paper), Procore is leading in this vertical.

Let’s talk financials. Since its IPO in 2021, Procore has seen revenue growth that’s both steady and rapid, hitting 109% NRR in 2021 and 116% NRR in 2022. Like most companies facing the inflation and interest-rate headwinds of 2023, Procore’s growth has slowed down in 2023. However, their slower growth has still produced numbers many organizations would love, as guidance suggests they’ll hit 26% – 27% YOY this year. Leadership also repeatedly affirms that they will reach these numbers regardless of what happens with macroeconomic conditions. So if you’re becoming more bullish on the latter half of 2023, Procore could easily top 26% – 27% YOY.

Why talk about Procore to all your friends and family?

If you’ve ever tried to build any physical structure, you know how complicated it can be. From finding materials to creating cost estimates to making sure things actually get done (and paid for) on time, construction projects can quickly go from a happy dream to a nightmare. Frustrations like this in building his own home led CEO Craig “Tooey” Courtemanche to found Procore in 2002 after a long career in real estate, construction, and software development. PCOR offers an easy-to-use digital platform to interconnect all aspects of construction project management across all kinds of customer devices. The result feels like Bill.com and Monday had a hardworking baby that just wanted to build things better.

How is this company disruptive?

Construction is an industry with thin margins, so Procore created a product that creates a single source of reliable project information for everyone involved. By connecting all the parties on a construction project (such as contractors, materials suppliers, and subcontractors) on a single platform, Procore makes sure all parties can see the progress, budgets, and plans. This reduces mistakes, improves communication, and saves money.

One of our favorite aspects of Procore’s offering is how open it is with software licenses. Any construction company running a project with Procore products can grant project access to anyone involved, even if they haven’t purchased a license. This means contractors get introduced to Procore when they join a project using it; when these contractors enjoy the user experience, they’re more likely to buy a Procore license for future projects. Because construction contractors often work across sites and for multiple companies, this open business model sows lots of seeds that Procore can harvest into future customers.

Conclusion

Construction is a massive market, and we believe Procore is best positioned to lead with a flexible and easy to use digital product suite. The company has good leadership, a strong business model that makes it easy to onboard new users, and a flexible and integrated product suite with no obvious competition. And because they are a small cap company, now is a great time to start a position in PCOR.

Hirsch The Horizon Bourbon

Proof: 92  Price: $40

Hirsch The Horizon Bourbon is an expression of two mash bills: 94% comes from a 52-month, with higher concentrations of corn. The 6% remaining comes from a 100-month, with a much higher content of rye.  Hirsch believes that "craft is best balanced with experimentation." The Horizon is a nod to the ever-changing finish line. Rather than settle for an end goal, one should embrace growth and new adventure. The journey is the prize. We'll drink to that!

Nose:

Hints of vanilla and maple syrup with orange blossom.

Taste:

A beautiful mix of sugar and spice. Caramel and a bit of cinnamon.  A "leathery" chew gives way to warm spice on the finish.

Finish:

Stronger than expected with a proof of 92.  Medium-long finish that is versatile enough to be sipped and savored.

Overall Rating: 3.5/5

A solid bourbon that most will label "perfect for mixing," but The Horizon stands on its own.  Hirsch recommends this neat or on the rocks. I recently used this in a Bourbon Lemonade, that was phenomenal.