Coupa Software Tops Q1 Expectations; Shares Fall 8.8% After-Hours

Coupa Software, Inc. (COUP), a provider of cloud-based business spending management platforms, reported better-than-expected quarterly earnings and revenue. However, shares fell 8.8% in the extended trading session on June 7.

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The company reported earnings of $0.07 per share, down 65% compared to the prior-year quarter, but beating analysts’ estimates for a loss of $0.19 per share.

Revenue climbed 40% to $166.93 million from the year-ago period and beat the Street’s estimates of $151.06 million. Subscription revenue grew 33% to $140.10 million year-over-year. (See Coupa Software stock analysis on TipRanks)

Rob Bernshteyn, Chairman, and CEO of the company said, “With supply chain disruptions and an emphasis on frugality impacting the way companies approach Business Spend Management, our customers depend on us to help them build the agility and resiliency needed to strategically navigate a challenging but improving economic environment.”

For the second quarter, the company forecasts total revenue and subscription revenue to fall in the range of $162 – $163 million and $142 – $143 million, respectively. The company projects a loss in the range of $0.07 – $0.05 per share.

The Street estimates revenue of $160 million and a loss of $0.09 per share for the second quarter.

For the full Fiscal year 2022, the company projects total revenue to be in the range of $681 – $684 million and an annual loss of between $0.20 and $0.14 per share. Analysts are estimating revenue of $673.6 million and a loss of $0.25 per share.

Following the results, Oppenheimer analyst Brian Schwartz maintained a Buy rating on the stock and said, “Coupa’s platform is pure-play, multi-tenant SaaS, and often a lower cost alternative to on-premise and/or legacy spend management applications, in-house processes and paper-based processes that many businesses rely on today.”

However, Schwartz lowered the price target on the stock from $320 to $260, which implies 9.8% upside potential to current levels.

Consensus among analysts is a Moderate Buy based on 11 Buys and 5 Holds. The Coupa average analyst price target stands at $299.86 and implies upside potential of 26.7% to current levels. Shares have lost 29.5% year-to-date.

TipRanks data shows that financial blogger opinions are 70% Bullish on COUP, compared to a sector average of 69%.