Categories Earnings, Technology
Coupa Software (COUP) Q3 earnings preview: Stock may shine on bullish outlook
After reporting positive results for the July-quarter, executives at Coupa Software (NASDAQ: COUP) had exuded confidence that the company is on track to achieve the goal of $1 billion in revenue. When it reports the third-quarter results on Monday evening, market watchers will be looking for earnings of $0.06 per share, down 25% from last year. Sales are forecast to grow 54% to $96.2 million.
The bottom-line of the San Mateo, California-based provider of business spend management solutions has remained in the negative territory in recent quarters. The stock might gather strength in the run-up to the third-quarter report, considering the market’s prediction for a turnaround and the company’s track record of beating estimates consistently.
Growth Drivers
Revenues continue to benefit from the rapid adoption of spend management solutions by enterprises across industries, which has resulted in a strong customer base that keeps growing. This time, margins could get a boost from a further uptick in subscription revenue, which also adds to the prospects of a turnaround. Moreover, there has been a slew of partnerships and collaborations aimed at enhancing customer experience, especially in payment services.
Catalyst
DCR Workforce and Aquiire, which joined the Coupa fold more than a year ago, have been two key growth drivers in recent quarters. It is estimated that these businesses contributed significantly to revenue growth in the third quarter.
Q2 Earnings
For the second quarter, the company reported a 54% growth in revenues to $95.1 million, aided by solid subscription growth. However, net loss widened to $20 million or $0.32 per share. On an adjusted basis, it was a profit of $0.07 per share. The results also topped the Street view.
Last month, Coupa shares climbed to an all-time high after gaining steadily for more than a year. Though the stock lost momentum since then, it regained strength in recent weeks and is hovering near the peak once again.
Most Popular
AAPL Earnings: Apple’s Q2 sales and profit beat estimates; iPhone sales down 10%
Apple Inc. (NASDAQ: AAPL) on Thursday reported better-than-expected profit and revenue for the second quarter of 2024. There was a 10% decrease in iPhone sales. The gadget giant reported revenues
Shopify (SHOP) is all set to report Q1 2024 results. Here’s what to expect
Over the years, Shopify Inc. (NYSE: SHOP) has steadily expanded its footprint in the online retail market through constant innovation, like the recent launch of a mobile POS device for
eBay (EBAY): A look at how the ecommerce company fared in Q1 2024
Shares of eBay Inc. (NASDAQ: EBAY) were down over 2% on Thursday. The company reported its earnings results for the first quarter of 2024 a day ago, with revenue and