Shares in Coupa Software popped on July-quarter earnings and revenue that topped estimates as business travel bounced back. The company also announced a $100 million share repurchase program for COUP stock.
The maker of business spending management software said that on an adjusted basis, Coupa earnings were 20 cents per share, down 23% from a year earlier. Revenue rose 18% to $211 million, including acquisitions. Subscription revenues came in at $192.7 million, an increase of 23% from a year earlier.
Analysts expected Coupa earnings of 9 cents a share on revenue of $203.8 million. A year earlier, Coupa earned 26 cents a share on sales of $179.2 million.
In the fiscal second quarter, billings rose 25% to $217 million vs. estimates of $219.8 million.
San Mateo, Calif.-based Coupa reported earnings after the market close on Tuesday. COUP stock vaulted 17.9% higher to close at 65.82 on the stock market today.
"Coupa reported a better-than-feared quarter, coming in above on all key metrics," said JPMorgan analyst Pinjalim Bora, in a report. "While commentary on the (sales) pipeline was positive, macro remains a wildcard with continued elongated sales cycles in Europe, driving a lower-than-expected billings guidance."
COUP Stock: Earnings Guidance Ahead Of Views
For the current quarter ending in October, Coupa says it expects adjusted profit in a range of 8 cents to 10 cents. Analysts had predicted 6 cents. The software company forecast revenue of $212.5 million at the midpoint of guidance versus estimates of $214.1 million.
Management raised fiscal 2023 operating margin guidance to 7.8% at the midpoint, from 4.6%.
"The company's updated guidance reflects ongoing slowing in Europe, and conservatively, assumes weaker conditions in the U.S. in the second half of 2022, which we anticipate will be a key debate point on the path for upside from here," said BMO Capital Markets analyst Daniel Jester in a report.
Heading into the Coupa earnings report, the company's stock owned a dismal Relative Strength Rating of 7 out of a possible 99, according to IBD Stock Checkup. Also, Coupa stock has retreated 65% in 2022.
Meanwhile, Coupa's software products cover employee travel and expense management, procurement and invoicing.
In addition, since late 2018, Coupa has been on an acquisition spree. It purchased Llamasoft, Bellin, Hipperos, Exari and Yapta.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
