What To Expect From Coupa’s (COUP) Q4 Earnings

Radek Strnad /
2022/03/14 7:47 am EDT
Add to Watchlist

Spend management software maker Coupa Software (COUP) will be reporting earnings today after the bell. Here's what to expect.

Last quarter Coupa reported revenues of $185.8 million, up 39.7% year on year, beating analyst revenue expectations by 4.46%. It was a very strong quarter for the company, with an exceptional revenue growth and guidance for the next quarter above what analysts are expecting.

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 $186.1 million, slowing down from the 46.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 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 8.06%.

Looking at Coupa's peers in the finance and HR software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Bill.com delivered eyewatering top-line growth of 189% year on year, beating analyst estimates by 19.3% and Flywire reported revenues up 54.6% year on year, exceeding estimates by 24.8%. Bill.com traded up 23.1% on the results, Flywire was up 10.3%. Read our full analysis of Bill.com's results here and Flywire's results here.

The fears around raising interest rates have been putting pressure on tech stocks and software stocks have not been spared, with share price down on average 17.9% over the last month. Coupa is down 23.9% during the same time, and is heading into the earnings with analyst price target of $187.1, compared to share price of $99.36.

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.