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Coupa (COUP) Q2 Earnings Report Preview: What To Look For


Jabin Bastian /
2022/09/05 5:19 am EDT
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Spend management software maker Coupa Software (COUP) will be reporting earnings tomorrow after market hours. Here's what to expect.

Last quarter Coupa reported revenues of $196.3 million, up 17.6% year on year, beating analyst revenue expectations by 2.98%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a decline in gross margin.

Is Coupa buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Coupa's revenue to grow 13.8% year on year to $203.9 million, slowing down from the 42.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.

Coupa Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 7%.

Looking at Coupa's peers in the finance and HR software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Paycor delivered top-line growth of 26.1% year on year, beating analyst estimates by 7.26% and Bill.com reported revenues up 155% year on year, exceeding estimates by 9.35%. Paycor traded up 3% on the results, and Bill.com was up 18.2%. Read our full analysis of Paycor's results here and Bill.com's results here.

Tech stocks have had a rocky start in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 14.3% over the last month. Coupa is down 26.4% during the same time, and is heading into the earnings with analyst price target of $80.4, compared to share price of $57.01.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.