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Coupa (COUP) Reports Earnings Tomorrow. What To Expect


Adam Hejl /
2022/06/05 9:18 am EDT
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Spend management software maker Coupa Software (COUP) will be announcing earnings results tomorrow after the bell. Here's what to look for.

Last quarter Coupa reported revenues of $193.2 million, up 18.1% year on year, beating analyst revenue expectations by 3.82%. It was a weaker quarter for the company, with revenue guidance missing analysts' expectations for both the next quarter and the full year.

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 14.2% year on year to $190.6 million, slowing down from the 40% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 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 7.45%.

Looking at Coupa's peers in the finance and HR software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Bill.com delivered top-line growth of 179% year on year, beating analyst estimates by 5.7% and Intuit reported revenues up 34.9% year on year, exceeding estimates by 2.16%. Bill.com traded down 19.4% on the results, Intuit was up 3.26%. Read our full analysis of Bill.com's results here and Intuit's results here.

The whole tech sector has been facing a sell-off since late last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 2.36% over the last month. Coupa is down 9.74% during the same time, and is heading into the earnings with analyst price target of $90.8, compared to share price of $70.89.

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.