Coupa Software Delivers Beat-and-Raise, Results Seen as ‘Solid’
2022.06.07 13:57
Coupa Software (COUP) Delivers Beat-and-raise, Results Seen as ‘Solid’
By Senad Karaahmetovic
Shares of Coupa Software (NASDAQ:COUP) are up almost 1% in premarket trading after the technology company hiked its full-year EPS guidance, which topped the consensus estimates.
The company reported Q1 adjusted EPS of 8c, up from 7c in the year-ago period and above the analyst consensus of 5.1c per share. Revenue came in at $196.4 million, up 18% YoY and topping the analyst estimates of $190.5 million.
For Q2, COUP expects adjusted EPS in the range of 7c to 10c, beating the consensus projection of 5.2c per share. Revenue is expected to range between $202 million and $205 million in the second quarter, while analysts were looking for $205.4 million.
For the full fiscal 2023, Coupa Software expects adjusted EPS in the range of 21c to 27c, up from 15c to 19c, while analysts were estimating 18c per share. The company expects FY revenue to be in the range of $838 million to $843 million, up from $836 million to $840 million, compared to the estimated $839 million.
Piper Sandler analyst Brent A. Bracelin hiked the price target to $85.00 per share from $70.00 on “solid” results.
“We were encouraged by a solid start to the new fiscal year with 27% subscription revenue growth on a $5M revenue beat with free cash flow margins of 23%. That said, commentary that the company did see some deal slippage in Europe late in the quarter does heighten execution risks and limit confidence in the sustainability of subscription revenue growth that could moderate below 20% in the 2H,” Bracelin said in a client note.
Still, the analyst reiterated a Neutral rating amid a “lack of confidence in the timing of a sustainable rebound given macro uncertainty, 40% international exposure, and an outlook implying that subscription growth could moderate below 20% in the 2H.”
Mizuho analyst Siti Panigrahi also reiterated a Neutral rating and described the results as “solid.”
“FQ1 results suggest Coupa continues to benefit from improving enterprise apps spending, but a softening demand environment contributes to uncertainty in FY23 guide. Thus, although encouraged by the Coupa BSM platform’s leadership position and ability to gain share, we await more evidence of its growth prospects/margin expansion,” the analyst wrote to clients.
