October 3, 2022

Robotic Notes

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Coupa Software’s stock rises on solid earnings beat and strong profit forecast

2 min read

Business payments software company Coupa Software Inc. is flying high today after posting solid second quarter financial results.

It also forecast next-quarter profit that beat analysts’ expectations, sending the stock higher in extended trading.

The company reported earnings before certain expenses such as stock compensation of 20 cents per share, beating Wall Street’s forecast for earnings of nine cents per share. Revenue for the period rose 42% from a year earlier to $211.1 million, beating Wall Street’s target of $203.5 million. Despite the impressive results, the company still failed to turn a profit, reporting a net loss of $75.3 million for the period.

Coupa sells payment management software that covers things like shipping, invoicing, sourcing and business expenses. Its offering sits alongside enterprise resource planning software in the larger financial information technology stack.

Customer benefits include faster routing of approvals, better matching of invoices and purchase orders, and centralized routing of electronic payments to suppliers. Coupa’s revenue suffered somewhat during the pandemic, as the inability to travel meant many businesses cut back on business spending. But with business travel back in fashion, Coupa’s platform is becoming relevant again.

Coupa Chairman and CEO Rob Bernstein (pictured) hailed the company’s “fantastic quarter”, noting that it delivered record revenue and strong growth in billable accounts. “The digitization and optimization of back-office operations is being prioritized as a key strategic initiative for our customers, and the Coupa platform is critical to their ability to develop agility and adaptability in these rapidly changing times,” he added.

For the current quarter, Coupa said it expects earnings of between eight and 10 cents a share, ahead of Wall Street’s forecast of six cents a share. On revenue, it offered a forecast of between $211 million and $214 million, slightly short of the consensus estimate of $214.6 million.

For the full year, Coupa said it was looking for earnings of between 37 and 44 cents a share on revenue of $838 million to $844 million. Wall Street guidance calls for full-year earnings of just 26 cents a share on sales of $840.3 million.

Investors clearly liked what they saw, as Coupa shares jumped more than 13% after the report, after falling 2% earlier in the day.

Photo: SiliconANGLE

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