Coupa Software Inc. (COUP - Free Report) recently announced that its Business Spend Management (BSM) platform has been selected by humanitarian aid agency –– World Vision –– to help people adversely affected by the coronavirus pandemic.
World Vision, which has provided emergency relief services for the past 70 years, is using Coupa’s platform to rapidly deliver personal protective equipment (PPE) and other protective supplies to the most vulnerable people in the world.
Markedly, Coupa’s BSM offering is aiding World Vision rapidly source critical supplies in bulk and deliver them to its warehouses across the globe. Moreover, the platform provides insight into the availability of PPEs and other supplies, which facilitates their delivery during emergency.
It has become very critical for organizations to manage spend and procurement amid coronavirus induced remote working trends. This is likely to boost adoption of Coupa’s BSM platform, which in turn will drive the top line in the days ahead.
Moreover, solid traction for Coupa’s offerings is expected to boost investors’ optimism in the company’s stock. Notably, shares have surged 86.6% in the year-to-date period compared with the industry’s rally of 46.1%.
Coupa Software, Inc. Price and Consensus
Growing Adoption Favors Prospects
The coronavirus pandemic-induced macroeconomic weakness has increased the need for companies to optimize their spend patterns to survive during these uncertain times. As a result, the company has witnessed growing momentum for its platform in recent times.
Notably, in fiscal first-quarter, Coupa’s BSM platform was selected by the likes of Accent Therapeutics, Black Diamond Therapeutics (BDTX - Free Report) , Clearway Energy, CODA Biotherapeutics, The Howard Hughes Corporation, The Salvation Army, Vroom.com and Workiva (WK - Free Report) , among others.
The expansion of Coupa’s client base holds promise for the company’s financial performance over the long haul. Markedly, Coupa’s revenues have increased 47% year over year to $119.2 million in the last reported quarter.
The trend is likely to continue driven by the rapid digital transformation taking place across all industries, which is further driving the need for efficient spend management. Also, the solution is expect to be popular as it helps manage spend and procurement amid remote working trends.
Further, the strong traction for the company’s platform is likely to strengthen its foothold in the BSM software market, which per Research and Markets, is expected to witness a CAGR of 10.5% between 2019 and 2027.
Nevertheless, Coupa, which currently carries a Zacks Rank #3 (Hold), is facing stiff competition in the space from SAP’s SAP Concur offering. Per data compiled by Datanyze, Concur currently has a market share of 49.3% compared with Coupa’s 13.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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