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Coupa Software (COUP) to Post Q3 Earnings: What's in Store?
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Coupa Software Incorporated is slated to report third-quarter fiscal 2021 results on Dec 7.
For the fiscal third quarter, the company expects earnings of 2-3 cents per share. The Zacks Consensus Estimate for earnings has been steady in the past 30 days at 4 cents per share, which indicates a slump of 80% on a year-over-year basis.
Revenues are anticipated between $123 million and $124 million. The consensus mark for fiscal third-quarter revenues is pegged at $123.8 million, which suggests growth of 21.6% from the prior-year quarter’s reported figure.
Solid momentum in Business Spend Management (BSM) offerings and an expanding customer base are expected to have benefited Coupa Software’s fiscal third-quarter performance.
Companies have been striving to optimize spending patterns to survive the macroeconomic weakness led by the coronavirus outbreak, which has negatively impacted budgets, a great deal. This is expected to have bolstered the adoption of Coupa Software’s BSM solutions in the quarter to be reported, especially across industries like life sciences and healthcare.
Efficient spend-control programs that provide enhanced reporting and analytics have been the primary reason behind Coupa Software’s expanding clientele.
Moreover, the coronavirus pandemic has triggered the demand for digital payment offerings. This is expected to have contributed to the momentum in solutions such as Coupa Pay, Accelerate, Invoice payments and Virtual Cards for Pos, and might have contributed to the fiscal third-quarter top line. Notably, the company has extended these solutions to partners like American Express (AXP - Free Report) , Citibank, Transfermate, Stripe, PayPal, and BNP Paribas. This is expected to have bolstered its clientele.
Also, during the quarter under review, Coupa Software collaborated with American Express to allow businesses across the globe to use American Express virtual card payment option with Coupa Pay.
Further, the coronavirus-induced demand for Coupa Advantage Express, Strategic Sourcing, Risk Assess and Source Together solutions might get reflected in the company’s Subscription service revenues in the quarter to be reported.
Coupa Software anticipates Subscription revenues between $112 million and $113 million. The Zacks Consensus Estimate for Subscription revenues is currently pegged at $112 million, which suggests growth of 24% from the prior-year quarter’s reported figure.
An expanding clientele, which includes the likes of 2U (TWOU - Free Report) , CECO Environmental Corporation and OneMain Holdings, to mention a few, is instilling investor optimism in the stock. Notably, the stock has returned 119.9% year to date compared with the industry’s growth of 95.9%.
Year to Date Price Performance
Additionally, the company has been adding new capabilities to Coupa Supplier Insights and Coupa BSM solutions, which are anticipated to have bolstered adoption amid the coronavirus-induced supply-chain woes. This might have generated incremental revenues in the quarter under review.
Besides, the launch of Coupa CLM Advanced on synergies from the integration of the Coupa BSM platform with Exari's technology amid the ongoing digital transformation is expected to have strengthened the company’s position in the BSM market.
However, increasing spend on product development amid stiff competition from SAP Ariba and Oracle’s Procurement Cloud offerings, in the Procure-to-Pay (P2P) space, might have kept margins under pressure in the fiscal third quarter.
Moreover, COVID-19-led macroeconomic weaknesses led to reduced spend across small and medium-sized businesses (SMB). This is likely to have limited growth in the fiscal third quarter.
Also, coronavirus-led lower spend on travel might have hampered the adoption of Coupa Travel Sabre, formerly known as Yapta, which in turn, is likely to have weighed on fiscal third-quarter revenues. Markedly, during fourth-quarter fiscal 2020, Coupa Software acquired Seattle-based Yapta, with an aim to strengthen Coupa BSM Platform’s Travel and Expense offering with travel price optimization capabilities and offer travel savings to businesses in real-time.
Notably, in the fiscal second-quarter earnings conference, management noted that the company anticipates no contribution from Coupa Travel Sabre through 2020. However, it was previously (in the beginning of 2020) envisioned to contribute $20 million to billings and revenues.
Coupa Software currently carries a Zacks Rank #4 (Sell).
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Coupa Software (COUP) to Post Q3 Earnings: What's in Store?
Coupa Software Incorporated is slated to report third-quarter fiscal 2021 results on Dec 7.
For the fiscal third quarter, the company expects earnings of 2-3 cents per share. The Zacks Consensus Estimate for earnings has been steady in the past 30 days at 4 cents per share, which indicates a slump of 80% on a year-over-year basis.
Revenues are anticipated between $123 million and $124 million. The consensus mark for fiscal third-quarter revenues is pegged at $123.8 million, which suggests growth of 21.6% from the prior-year quarter’s reported figure.
Coupa Software, Inc. Price and EPS Surprise
Coupa Software, Inc. price-eps-surprise | Coupa Software, Inc. Quote
Factors Likely to Have Influenced Q3 Performance
Solid momentum in Business Spend Management (BSM) offerings and an expanding customer base are expected to have benefited Coupa Software’s fiscal third-quarter performance.
Companies have been striving to optimize spending patterns to survive the macroeconomic weakness led by the coronavirus outbreak, which has negatively impacted budgets, a great deal. This is expected to have bolstered the adoption of Coupa Software’s BSM solutions in the quarter to be reported, especially across industries like life sciences and healthcare.
Efficient spend-control programs that provide enhanced reporting and analytics have been the primary reason behind Coupa Software’s expanding clientele.
Moreover, the coronavirus pandemic has triggered the demand for digital payment offerings. This is expected to have contributed to the momentum in solutions such as Coupa Pay, Accelerate, Invoice payments and Virtual Cards for Pos, and might have contributed to the fiscal third-quarter top line. Notably, the company has extended these solutions to partners like American Express (AXP - Free Report) , Citibank, Transfermate, Stripe, PayPal, and BNP Paribas. This is expected to have bolstered its clientele.
Also, during the quarter under review, Coupa Software collaborated with American Express to allow businesses across the globe to use American Express virtual card payment option with Coupa Pay.
Further, the coronavirus-induced demand for Coupa Advantage Express, Strategic Sourcing, Risk Assess and Source Together solutions might get reflected in the company’s Subscription service revenues in the quarter to be reported.
Coupa Software anticipates Subscription revenues between $112 million and $113 million. The Zacks Consensus Estimate for Subscription revenues is currently pegged at $112 million, which suggests growth of 24% from the prior-year quarter’s reported figure.
An expanding clientele, which includes the likes of 2U (TWOU - Free Report) , CECO Environmental Corporation and OneMain Holdings, to mention a few, is instilling investor optimism in the stock. Notably, the stock has returned 119.9% year to date compared with the industry’s growth of 95.9%.
Year to Date Price Performance
Additionally, the company has been adding new capabilities to Coupa Supplier Insights and Coupa BSM solutions, which are anticipated to have bolstered adoption amid the coronavirus-induced supply-chain woes. This might have generated incremental revenues in the quarter under review.
Besides, the launch of Coupa CLM Advanced on synergies from the integration of the Coupa BSM platform with Exari's technology amid the ongoing digital transformation is expected to have strengthened the company’s position in the BSM market.
However, increasing spend on product development amid stiff competition from SAP Ariba and Oracle’s Procurement Cloud offerings, in the Procure-to-Pay (P2P) space, might have kept margins under pressure in the fiscal third quarter.
Moreover, COVID-19-led macroeconomic weaknesses led to reduced spend across small and medium-sized businesses (SMB). This is likely to have limited growth in the fiscal third quarter.
Also, coronavirus-led lower spend on travel might have hampered the adoption of Coupa Travel Sabre, formerly known as Yapta, which in turn, is likely to have weighed on fiscal third-quarter revenues. Markedly, during fourth-quarter fiscal 2020, Coupa Software acquired Seattle-based Yapta, with an aim to strengthen Coupa BSM Platform’s Travel and Expense offering with travel price optimization capabilities and offer travel savings to businesses in real-time.
Notably, in the fiscal second-quarter earnings conference, management noted that the company anticipates no contribution from Coupa Travel Sabre through 2020. However, it was previously (in the beginning of 2020) envisioned to contribute $20 million to billings and revenues.
Coupa Software currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>