Coupa (COUP) Reports Q3: Everything You Need To Know Ahead Of Earnings

Petr Huřťák /
2022/12/12 4:46 am EST

Spend management software maker Coupa Software (COUP) will be reporting results today afternoon. Here's what to expect.

Last quarter Coupa reported revenues of $211.1 million, up 17.7% year on year, beating analyst revenue expectations by 3.48%. It was a mixed quarter for the company, with a meaningful improvement in gross margin but underwhelming revenue guidance for the next quarter.

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 14.7% year on year to $213.3 million, slowing down from the 39.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 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 6.69%.

Looking at Coupa's peers in the finance and HR software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Paycor delivered top-line growth of 27.5% year on year, beating analyst estimates by 4.42% and Bill.com reported revenues up 94.2% year on year, exceeding estimates by 9.02%. Paycor traded down 5.03% on the results, Bill.com was up 3.45%. Read our full analysis of Paycor's results here and Bill.com'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 2.54% over the last month. Coupa is up 47.1% during the same time, and is heading into the earnings with analyst price target of $72.20, compared to share price of $75.97.

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.