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
Kroger (KR) looks set to start 2023 with new vigor. Is the stock a buy?
The retail environment has witnessed many changes in customers’ shopping behavior lately, especially after the COVID outbreak. With inflation putting pressure on personal finances, there appears to be a new
Dollar General (DG): Five takeaways from the discount store’s Q3 earnings report
Shares of Dollar General Corporation (NYSE: DG) were up over 2% on Friday, a day after the company delivered mixed results for the third quarter of 2022 and lowered its
Salesforce stock hit by weak guidance, co-CEO’s exit. What next?
For technology stocks, 2022 has been a challenging year, with companies losing significant market value amid prolonged stock selloff. In that respect, Salesforce, Inc. (NYSE: CRM) is among the worst-affected
