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Reflecting On Finance and HR Software Stocks’ Q2 Earnings: Coupa Software (NASDAQ:COUP)


Radek Strnad /
2021/10/05 6:45 am EDT
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Earnings results often give us a good indicated what direction will the company will take in the months ahead. With Q2 now behind us, let’s have a look at Coupa Software (NASDAQ:COUP) and its peers.

Organizations are constantly looking for improving organizational efficiencies, whether it is financial planning, tax management or payroll. Finance and HR software benefit from the SaaS-ification of businesses, large and small, who much prefer the flexibility of cloud-based, web-browser delivered software paid for on a subscription basis than the hassle and expense of purchasing and managing on-premise enterprise software.

The 9 finance and HR software stocks we track reported a a strong Q2; on average, revenues beat analyst consensus estimates by 9.1%, while on average next quarter revenue guidance was 9.19% above consensus. The market rewarded the results with the average return the day after earnings coming in at 8.47%.

Coupa Software (NASDAQ:COUP)

Founded in 2006 by former Oracle executives, Coupa Software (COUP) is a software as a service platform that helps enterprises manage their spending across procurement, billing and business expenses and get a better visibility into how the money is spent.

Coupa Software reported revenues of $179.2 million, up 42.3% year on year, beating analyst expectations by 9.98%. It was an impressive quarter for the company, with a significant improvement in gross margin and a strong beat of analyst estimates.

"We are proud to report another fantastic quarter where we delivered record revenue, strong calculated billings growth, and our third year of consecutive quarterly non-GAAP profitability," said Rob Bernshteyn, chairman and chief executive officer at Coupa.

Coupa Software Total Revenue

The stock is down 4.43% since the results and currently trades at $213.

Is now the time to buy Coupa Software? Access our full analysis of the earnings results here, it's free.

Best Q2: Bill.com (NYSE:BILL)

Started by René Lacerte in 2006 after selling his previous payroll and accounting software company PayCycle to Intuit, Bill.com (NYSE:BILL) is a software as a service platform that aims to make payments and billing processes easier for small and medium-sized businesses.

Bill.com reported revenues of $78.2 million, up 85.8% year on year, beating analyst expectations by 20.4%. It was an impressive quarter for the company, with an incredible beat of analyst estimates and an exceptional revenue growth.

Bill.com Total Revenue

Bill.com delivered the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The stock is up 29.9% since the results and currently trades at $261.30.

Is now the time to buy Bill.com? Access our full analysis of the earnings results here, it's free.

Slowest Q2: Workday (NASDAQ:WDAY)

Founded by industry veterans Aneel Bushri and Dave Duffield after their former company PeopleSoft was acquired by Oracle in a hostile takeover, Workday (NASDAQ:WDAY) provides cloud-based software for organizations to manage and plan finance and human resources.

Workday reported revenues of $1.26 billion, up 18.6% year on year, beating analyst expectations by 1.61%. It was a solid quarter for the company, with a decent beat of analyst estimates.

The stock is up 9.23% since the results and currently trades at $249.90.

Read our full analysis of Workday's results here.

Avalara (NYSE:AVLR)

Founded in 2004, Avalara offers software as a service that provides companies with real-time information on how much tax to charge and automates tax compliance. Transactional taxes are complex, with thousands of rules set by local, regional, state, federal and international authorities.

Avalara reported revenues of $169 million, up 45.1% year on year, beating analyst expectations by 9.62%. It was a very strong quarter for the company, with a significant improvement in net revenue retention rate.

The stock is down 0.05% since the results and currently trades at $166.68.

Read our full, actionable report on Avalara here, it's free.

Workiva (NYSE:WK)

Founded in 2010, Workiva offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations.

Workiva reported revenues of $105.5 million, up 25.9% year on year, beating analyst expectations by 3.85%. It was a strong quarter for the company, with accelerating customer growth.

The company added 68 enterprise customers paying more than $100,000 annually to a total of 952. The stock is up 7.73% since the results and currently trades at $136.85.

Read our full, actionable report on Workiva here, it's free.

The author has no position in any of the stocks mentioned