Coupa Software Incorporated reported healthy first-quarter fiscal 2023 results, beating both the top-line and bottom-line estimates. The healthy results were backed by Coupa providing companies with visibility and control over their business spending, resiliency in back-office operations and aiding in making strategic and data-driven decisions to yield positive outcomes for their business.
Quarter Details
GAAP net loss reported during the quarter, attributable to Coupa Software Incorporated, was $81.5 million or $1.08 per share compared with $100.4 million or $1.38 per share in the prior-year quarter. Non-GAAP net income during the quarter was $5.5 million or 8 cents per share compared with $5 million or 7 cents per share in the prior-year quarter, beating the Zacks Consensus Estimate by 3 cents.
Revenues during the reported quarter were $196.4 million compared with $166.9 million in the prior-year quarter, reflecting year-over-year growth of 17.6% and beating the Zacks Consensus Estimate of $196 million. The growth was backed by the success of the Antares app, which provides customers with the flexibility to access supplier risk at the time of sourcing, monitoring third-party data and providing instant visibility to supplier risk scores.
Subscription revenues reported during the quarter were $178.5 million compared with $140.1 million, reflecting growth of 27.4% from the prior-year quarter. The growth was backed by the strengthening of the U.S. dollar against the euro. Professional services revenues during the quarter were $17.9 million compared with $26.8 million, reflecting a decrease of 33.2%.
Operating Details
Gross profit during the quarter was reported at $115.5 million compared with $87.2 million in the prior-year quarter, reflecting growth of 32.4%. GAAP operating loss during the quarter was $71.3 million compared with $73.9 million in the prior-year quarter. Non-GAAP operating income in the quarter was $13.8 million compared with $7 million in the year-earlier quarter.
Cash Flow & Liquidity
During the fiscal first quarter, the company generated operating cash flows of $49.7 million compared with $32.1 million in the prior-year quarter. As of Apr 30, 2022, the company had $493.9 million of cash and cash equivalents with net convertible senior notes of $2,157.9 million.
Guidance
For fiscal 2023, the company has raised its guidance for revenues from $836-$840 million to $838-$848 million. Subscription revenues are expected to be in the range of $762-$767 million. Professional services and other revenues are expected to be approximately $76 million. Non-GAAP earnings is likely to be in the range of 21-27 cents per share.
For second-quarter fiscal 2023, total revenues are expected to be in the range of $202-$205 million. Subscription revenues are expected to be within $185-$188 million and professional services and other revenues are expected to be approximately $17 million. Non-GAAP net income is likely to be in the range of 7-10 cents per share.
Zacks Rank & Stocks to Consider
Coupa Software currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aspen Technology, Inc. (AZPN - Free Report) , belonging to the broader Zacks Computer and Technology sector, currently sports a Zacks Rank #1. AZPN has a long-term earnings growth expectation of 7.94%.
Aspen Technology witnessed an accelerated adoption of its solutions that has driven top-line growth over the years. The company has a strong pipeline for new business bookings. It continues to innovate and improve operations.
2U, Inc. (TWOU - Free Report) , presently carrying a Zacks Rank #2 (Buy), is a key pick for stock investors. TWOU has a long-term earnings growth expectation of 20%.
2U is an education technology company and a provider of cloud-based software-as-a-service (SaaS) solutions that enable non-profit colleges and universities to deliver their education to students globally.
Asana, Inc. (ASAN - Free Report) also carries a Zacks Rank #2 at present. It reported an earnings surprise of 1.56%, on average, in the trailing four quarters.
Asana provides a SaaS work management platform which enables individuals and teams to work efficiently.
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Coupa Software Incorporated reported healthy first-quarter fiscal 2023 results, beating both the top-line and bottom-line estimates. The healthy results were backed by Coupa providing companies with visibility and control over their business spending, resiliency in back-office operations and aiding in making strategic and data-driven decisions to yield positive outcomes for their business.
Quarter Details
GAAP net loss reported during the quarter, attributable to Coupa Software Incorporated, was $81.5 million or $1.08 per share compared with $100.4 million or $1.38 per share in the prior-year quarter. Non-GAAP net income during the quarter was $5.5 million or 8 cents per share compared with $5 million or 7 cents per share in the prior-year quarter, beating the Zacks Consensus Estimate by 3 cents.
Revenues during the reported quarter were $196.4 million compared with $166.9 million in the prior-year quarter, reflecting year-over-year growth of 17.6% and beating the Zacks Consensus Estimate of $196 million. The growth was backed by the success of the Antares app, which provides customers with the flexibility to access supplier risk at the time of sourcing, monitoring third-party data and providing instant visibility to supplier risk scores.
Subscription revenues reported during the quarter were $178.5 million compared with $140.1 million, reflecting growth of 27.4% from the prior-year quarter. The growth was backed by the strengthening of the U.S. dollar against the euro. Professional services revenues during the quarter were $17.9 million compared with $26.8 million, reflecting a decrease of 33.2%.
Operating Details
Gross profit during the quarter was reported at $115.5 million compared with $87.2 million in the prior-year quarter, reflecting growth of 32.4%. GAAP operating loss during the quarter was $71.3 million compared with $73.9 million in the prior-year quarter. Non-GAAP operating income in the quarter was $13.8 million compared with $7 million in the year-earlier quarter.
Cash Flow & Liquidity
During the fiscal first quarter, the company generated operating cash flows of $49.7 million compared with $32.1 million in the prior-year quarter. As of Apr 30, 2022, the company had $493.9 million of cash and cash equivalents with net convertible senior notes of $2,157.9 million.
Guidance
For fiscal 2023, the company has raised its guidance for revenues from $836-$840 million to $838-$848 million. Subscription revenues are expected to be in the range of $762-$767 million. Professional services and other revenues are expected to be approximately $76 million. Non-GAAP earnings is likely to be in the range of 21-27 cents per share.
For second-quarter fiscal 2023, total revenues are expected to be in the range of $202-$205 million. Subscription revenues are expected to be within $185-$188 million and professional services and other revenues are expected to be approximately $17 million. Non-GAAP net income is likely to be in the range of 7-10 cents per share.
Zacks Rank & Stocks to Consider
Coupa Software currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aspen Technology, Inc. (AZPN - Free Report) , belonging to the broader Zacks Computer and Technology sector, currently sports a Zacks Rank #1. AZPN has a long-term earnings growth expectation of 7.94%.
Aspen Technology witnessed an accelerated adoption of its solutions that has driven top-line growth over the years. The company has a strong pipeline for new business bookings. It continues to innovate and improve operations.
2U, Inc. (TWOU - Free Report) , presently carrying a Zacks Rank #2 (Buy), is a key pick for stock investors. TWOU has a long-term earnings growth expectation of 20%.
2U is an education technology company and a provider of cloud-based software-as-a-service (SaaS) solutions that enable non-profit colleges and universities to deliver their education to students globally.
Asana, Inc. (ASAN - Free Report) also carries a Zacks Rank #2 at present. It reported an earnings surprise of 1.56%, on average, in the trailing four quarters.
Asana provides a SaaS work management platform which enables individuals and teams to work efficiently.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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