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
These fast-food stocks can strengthen your portfolio this year. Here’s why
For American restaurant chains, the early months of the pandemic were a challenging period. But soon things changed for the better as people started ordering their favorite food items online
What to expect when McCormick & Company (MKC) reports Q1 results next week
Shares of McCormick & Company, Incorporated (NYSE: MKC) were up over 2% on Friday. The stock has dropped 12% year-to-date. The condiments manufacturer is scheduled to report its first quarter 2023
KB Home (KBH) Earnings: 1Q23 Key Numbers
KB Home (NYSE: KBH) reported total revenues of $1.38 billion for the first quarter of 2023 which was relatively flat compared to the same period last year. Net income of