Coupa Stock Pops As Earnings, Guidance Top Views Amid Acquisition Spree

Coupa Software (COUP) on Tuesday reported July-quarter earnings and revenue that topped estimates amid an acquisition spree. Coupa stock popped in extended trading as guidance also came in above Wall Street targets.


On an adjusted basis, Coupa earnings rose 24% to 26 cents, said the maker of business spending management software.

Coupa’s revenue climbed 42% to $179 million. That included revenue from LLamasoft. Coupa announced in late 2020 that it would acquire LLamasoft. San Mateo, Calif.-based Coupa said billings rose 49% to $195 million, topping estimates of $164 million in the quarter that ended July 31.

Analysts expected the Coupa earnings report to show a loss of 6 cents on revenue of $162.9 million. A year earlier, Coupa earned 21 cents a share on sales of $126 million.

Coupa stock popped 12.6% to near 296.50 in extended trading on the stock market today.

Coupa Stock: Revenue Guidance Above Estimates

For the current quarter ending in October, Coupa forecast revenue of $177.5 million at the midpoint of its guidance vs. estimates of $168.9 million. Coupa says it expects adjusted profit of 2 cents. Analysts had modeled a 7-cent loss.

In addition to purchasing LLamasoft, Coupa has acquired Hipperos, Exari and Yapta since late 2018.

Heading into the Coupa earnings report, the company’s stock owned a dismal Relative Strength Rating of 26 out of a possible 99, according to IBD MarketSmith analysis.

Meanwhile, Coupa stock had retreated some 23% in 2021.

Competition For Coupa: SAP, Fleetcor

Coupa’s software products cover employee travel and expense management, procurement and invoicing.

Coupa competes against SAP‘s (SAP) Ariba unit, Fleetcor‘s (FLT) Nvoicepay, and AvidXchange. A new rival is Workday (WDAY), which acquired Scout RFP.

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IBD offers a broad range of growth stock lists, such as Leaderboard. Investors also can create watchlists for issues like Coupa stock, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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