Coupa Software Stock Rises on Strong Earnings and Strong Earnings Guidance
Enterprise payment software company Coupa Software Inc. is flying high today after reporting strong second-quarter financial results.
It also forecast earnings for the next quarter that beat analysts’ expectations, sending its stock soaring in extended trading.
The company reported earnings before certain costs such as stock-based compensation of 20 cents per share, beating Wall Street forecasts of earnings of 9 cents per share. Revenue for the period rose 42% from a year ago to $211.1 million, ahead of Wall Street’s target of $203.5 million. Despite the impressive results, the company still failed to make a profit, posting a net loss of $75.3 million for the period.
Coupa sells payment management software that covers things like procurement, billing, procurement, and business expenses. Its offering complements enterprise resource planning software in the broader 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 vendors. Coupa’s revenue has suffered somewhat during the pandemic, as the inability to travel has forced many companies to cut back on business expenses. But with business travel back in vogue, Coupa’s platform is becoming relevant again.
Coupa Chairman and CEO Rob Bernshteyn (pictured) hailed the company’s “fantastic quarter”, noting it delivered record revenue and strong calculated billing growth. “Digitizing and optimizing back-office operations is a priority as a key strategic initiative for our customers, and the Coupa platform is essential for their ability to develop agility and adaptability in these times. rapidly evolving,” he added.
For the current quarter, Coupa said it expects earnings of between 8 and 10 cents per share, ahead of Wall Street forecasts of 6 cents per share. In terms of revenue, he offered a forecast of between $211 and $214 million, just below the consensus estimate of $214.6 million.
For the full year, Coupa said it was seeking earnings of between 37 and 44 cents per share on revenue of $838 million to $844 million. Wall Street forecasts call for annual earnings of just 26 cents per share on sales of $840.3 million.
Investors clearly liked what they saw as Coupa shares jumped more than 13% after the report, after slipping 2% earlier in the day.