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Coupa (COUP) Beats Q2 Earnings Estimates on Record Revenues
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Coupa Software Incorporated reported solid second-quarter fiscal 2023 results with record revenues and healthy momentum in the subscription business. Both the bottom line and top line beat respective 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 in the quarter was $75.3 million or a loss of 99 cents per share compared with a net loss of $91.5 million or a loss of $1.24 per share in the prior-year quarter. Non-GAAP net income during the quarter was $16.5 million or 20 cents per share compared with $20.3 million or 26 cents per share in the prior-year quarter, beating the Zacks Consensus Estimate by 11 cents.
Revenues were record high at $211.1 million compared with $179.2 million in the prior-year quarter, beating the Zacks Consensus Estimate of $203 million. The growth was backed by the strong performance in the North America enterprise market, with more customers preferring its ROI-driven business spend management platform to optimize their spend.
Subscription revenues were record high at $192.7 million compared with $156.2 million, backed by the strengthening of the U.S. dollar against the euro. Professional services revenues during the quarter were $18.4 million compared with $23 million in the year-earlier quarter.
Coupa Software, Inc. Price, Consensus and EPS Surprise
Gross profit during the quarter was reported at $127.8 million compared with $100 million in the prior-year quarter. GAAP operating loss was $63.6 million compared with an operating loss of $54.3 million in the prior-year quarter. Non-GAAP operating income in the quarter was $24 million compared with $26.7 million in the year-earlier quarter for respective margins of 11.4% and 14.9%.
Cash Flow & Liquidity
In the first six months of fiscal 2023, the company generated operating cash flows of $78.8 million compared with $72.9 million in the prior-year period. As of Jul 31, 2022, the company had $528 million of cash and cash equivalents with net convertible senior notes of $2,159.7 million. The company initiated a stock repurchase program to buy back $100 million shares within Sep 1, 2023.
Guidance
For fiscal 2023, the company has updated its revenue guidance from $838-$848 million to $838-$844 million. Subscription revenues are expected to be in the range of $766-$771 million. Professional services and other revenues are expected to be $72-$73 million. Non-GAAP earnings are likely to be in the range of 37-44 cents per share, up from earlier expectations of 21-27 cents.
For third-quarter fiscal 2023, total revenues are expected to be in the range of $211-$214 million. Subscription revenues are expected to be within $194-$196 million and professional services and other revenues are expected to be $17-$18 million. Non-GAAP net income is likely to be in the range of 8-10 cents per share.
Clearfield delivered an earnings surprise of 33.9%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 101.9% since September 2021. Over the past year, Clearfield has gained a solid 118.3%.
Viasat, Inc. (VSAT - Free Report) , carrying a Zacks Rank #2 (Buy), is another key pick. The company attracts millions of U.S. consumers and enterprises with its high-quality broadband service.
Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. Viasat has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation, making it believe that mobile broadband will act as a profit churner.
Aviat Networks, Inc. (AVNW - Free Report) sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised 19.8% upward since September 2021.
Aviat Networks pulled off a trailing four-quarter earnings surprise of 15.9%, on average. It has soared 204.8% in the past two years.
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Coupa (COUP) Beats Q2 Earnings Estimates on Record Revenues
Coupa Software Incorporated reported solid second-quarter fiscal 2023 results with record revenues and healthy momentum in the subscription business. Both the bottom line and top line beat respective 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 in the quarter was $75.3 million or a loss of 99 cents per share compared with a net loss of $91.5 million or a loss of $1.24 per share in the prior-year quarter. Non-GAAP net income during the quarter was $16.5 million or 20 cents per share compared with $20.3 million or 26 cents per share in the prior-year quarter, beating the Zacks Consensus Estimate by 11 cents.
Revenues were record high at $211.1 million compared with $179.2 million in the prior-year quarter, beating the Zacks Consensus Estimate of $203 million. The growth was backed by the strong performance in the North America enterprise market, with more customers preferring its ROI-driven business spend management platform to optimize their spend.
Subscription revenues were record high at $192.7 million compared with $156.2 million, backed by the strengthening of the U.S. dollar against the euro. Professional services revenues during the quarter were $18.4 million compared with $23 million in the year-earlier quarter.
Coupa Software, Inc. Price, Consensus and EPS Surprise
Coupa Software, Inc. price-consensus-eps-surprise-chart | Coupa Software, Inc. Quote
Operating Details
Gross profit during the quarter was reported at $127.8 million compared with $100 million in the prior-year quarter. GAAP operating loss was $63.6 million compared with an operating loss of $54.3 million in the prior-year quarter. Non-GAAP operating income in the quarter was $24 million compared with $26.7 million in the year-earlier quarter for respective margins of 11.4% and 14.9%.
Cash Flow & Liquidity
In the first six months of fiscal 2023, the company generated operating cash flows of $78.8 million compared with $72.9 million in the prior-year period. As of Jul 31, 2022, the company had $528 million of cash and cash equivalents with net convertible senior notes of $2,159.7 million. The company initiated a stock repurchase program to buy back $100 million shares within Sep 1, 2023.
Guidance
For fiscal 2023, the company has updated its revenue guidance from $838-$848 million to $838-$844 million. Subscription revenues are expected to be in the range of $766-$771 million. Professional services and other revenues are expected to be $72-$73 million. Non-GAAP earnings are likely to be in the range of 37-44 cents per share, up from earlier expectations of 21-27 cents.
For third-quarter fiscal 2023, total revenues are expected to be in the range of $211-$214 million. Subscription revenues are expected to be within $194-$196 million and professional services and other revenues are expected to be $17-$18 million. Non-GAAP net income is likely to be in the range of 8-10 cents per share.
Zacks Rank & Stocks to Consider
Coupa currently carries a Zacks Rank #3 (Hold).
Clearfield, Inc. (CLFD - Free Report) , sporting a Zacks Rank #1 (Strong Buy), is a solid pick for investors in the industry. You can see the complete list of today’s Zacks #1 Rank stocks here.
Clearfield delivered an earnings surprise of 33.9%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 101.9% since September 2021. Over the past year, Clearfield has gained a solid 118.3%.
Viasat, Inc. (VSAT - Free Report) , carrying a Zacks Rank #2 (Buy), is another key pick. The company attracts millions of U.S. consumers and enterprises with its high-quality broadband service.
Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. Viasat has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation, making it believe that mobile broadband will act as a profit churner.
Aviat Networks, Inc. (AVNW - Free Report) sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised 19.8% upward since September 2021.
Aviat Networks pulled off a trailing four-quarter earnings surprise of 15.9%, on average. It has soared 204.8% in the past two years.