Coupa Software delivers first quarter earnings and revenue beat


Payment management software provider Coupa Software Inc. made a solid start to fiscal 2023, reporting first-quarter earnings and revenue that beat Wall Street’s expectations.

The company reported a net loss of $71.3 million for the quarter. Earnings before certain costs such as stock compensation came to eight cents per share, as revenue grew 18% from a year ago, to $196 million. The results were decent enough. Analysts had been forecasting a lower profit of just five cents per share on sales of $191 million.

Coupa Chairman and Chief Executive Officer Rob Bernshteyn (pictured) insisted the company had gotten off to a strong start to the fiscal year, setting a new quarterly record in terms of revenue and subscription revenue, while yielding over 20% operating cash flow and adjusted free cash flow margins.

Coupa sells payment management software that covers things such as procurement, invoicing, sourcing and business expenses. Its offering sits alongside enterprise resource planning software in the larger financial information technology stack. Benefits for customers include faster approvals routing, better invoice and purchase order matching, and centralized electronic payment routing to suppliers.

The company suffered somewhat during the pandemic because the inability to travel meant that many enterprises cut back on their business expenses. But with business travel now back in vogue, Coupa’s platform is becoming relevant once more.

“Company leaders continue to recognize the importance and value of back office transformation,” Bernshteyn added. “Our comprehensive platform acts as a single source of truth to provide our customers with the data and insights necessary to maximize every dollar of business spend.”

Proof of this claim was evident in Coupa’s record-breaking quarterly subscription revenue, which rose 27% from a year ago, to $178 million at the end of the quarter. The company also reported billings of $188 million, up 26% from a year earlier and above the expected $175.6 million that analysts had forecast.

During the quarter, Coupa held its annual Coupa Inspire conference, where it unveiled numerous updates to its platform. At the event, Bernshteyn sat down with theCUBE, SiliconANGLE’s mobile livestreaming studio (below), where he discussed how the company’s software provides key insights that can help businesses to keep a lid on their spending. That makes Coupa’s offering all the more relevant given the ongoing economic headwinds many companies are facing this year.

Bernshteyn told theCUBE that the disruption of global supply chains has forced many enterprises to tighten up their channels. Because of this, many have turned to Coupa’s platform to try to overcome the brunt of these disruptions.

“[Customers are] faced with the acute issue of supply chain needs and the agility of their supply chain,” the CEO said. “So we help them figure out different ways to transport the goods and services they need, different freighting routes in real time through our AI capabilities.”

For the current quarter, Coupa is forecasting a profit of between sevens and 10 cents per share on revenue of $202 million to $205 million. Wall Street is looking for a profit of a nickel per share on sales of $205.3 million.

Coupa’s stock rose less than a percentage point in the extended trading session after gaining 2% earlier in the day.

Photo: SiliconANGLE

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