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Coupa Software (COUP) Q3 Earnings Top Estimates, Revenues Up
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Coupa Software reported third-quarter fiscal 2022 non-GAAP earnings of 31 cents per share, beating the Zacks Consensus Estimate by 29 cents and jumped 72.2% year over year.
Coupa reported revenues of $185.8 million, up 40% year over year.
Quarter Details
Coupa’s subscription revenues increased 40% year over year to $164.7 million in the reported quarter. Subscription revenues contributed 89% to revenues.
Professional Services and other revenues contributed 11.3% to total revenues. The figure amounted to $21.1 million, up 42% year over year.
Coupa Software, Inc. Price, Consensus and EPS Surprise
In the reported quarter, Coupa added several new customers to its portfolio, including Aptim Holdings, Capsida Biotherapeutics, Compass Minerals International, DEVK Versicherungen, EDEKA Handelsgesellschaft Nord, Endeavor Group and Softbank.
In the third quarter, Coupa made an investment in Interos, a supply chain risk management and operational resilience company.
Non-GAAP gross profit margin expanded 3520 basis points (bps) year over year to 97% compared with 61.8% in the year-ago quarter.
Research & development expenses, as a percentage of revenues, declined 180 bps on a year-over-year basis to 15.4%. General & administrative expenses, as a percentage of revenues, were 12.7%, down 130 bps year over year. Sales and marketing expenses, as a percentage of revenues, reached 30.9% on a year-over-year basis.
Total operating expenses, as a percentage of revenues, were 59%, down 280 bps from the year-ago quarter’s levels.
Operating income was $27.9 million in the reported quarter compared with an operating income of $14.3 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Oct 31, 2021, Coupa had cash, cash equivalents and marketable securities of $667.9 million compared with $606.3 million as of Jan 31, 2020.
Operating cash flows and adjusted free cash flows were $31 million and $28.2 million, respectively, in the reported quarter.
Guidance
For fourth-quarter fiscal 2022, Coupa expects revenues in the range of $185-$186 million.
Subscription revenues are anticipated in the range of $166-$167 million. Professional services and other revenues are forecasted to be approximately $189 million.
Non-GAAP income from operations is expected in the range of $8-$10 million for the fiscal fourth quarter.
Non-GAAP net income per share is anticipated to be in the range of 3-5 cents per share for the fiscal fourth quarter.
For fiscal 2022, Coupa expects total revenues in the range of $717-$718 million.
Non-GAAP income from operations is forecasted to be within $70-$72 million for fiscal 2022.
Non-GAAP income per share is anticipated in the 66-69 cents per share range, for fiscal 2022.
Nova Measuring’s shares have returned 75.6% year to date compared with the Zacks Electronics-Semiconductors industry’s growth of 33.8% and the Computer & Technology sector’s return of 20.5%.
The long-term earnings growth rate for AMD, a Zacks Rank #2 (Buy) stock, is currently pegged at 46.2%.
AMD shares have returned 51.6% year to date compared with the Electronics-Semiconductors industry’s growth of 33.8% and the Computer & Technology sector’s return of 20.4%.
Pinterest, carrying a Zacks Rank #2, has a long-term earnings growth rate of 52.7%.
PINS shares are down 42.6% compared with the Zacks Internet Software industry’s decline of 23.5% and the Computer & Technology sector’s return of 20.4% year to date.
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Coupa Software (COUP) Q3 Earnings Top Estimates, Revenues Up
Coupa Software reported third-quarter fiscal 2022 non-GAAP earnings of 31 cents per share, beating the Zacks Consensus Estimate by 29 cents and jumped 72.2% year over year.
Coupa reported revenues of $185.8 million, up 40% year over year.
Quarter Details
Coupa’s subscription revenues increased 40% year over year to $164.7 million in the reported quarter. Subscription revenues contributed 89% to revenues.
Professional Services and other revenues contributed 11.3% to total revenues. The figure amounted to $21.1 million, up 42% year over year.
Coupa Software, Inc. Price, Consensus and EPS Surprise
Coupa Software, Inc. price-consensus-eps-surprise-chart | Coupa Software, Inc. Quote
In the reported quarter, Coupa added several new customers to its portfolio, including Aptim Holdings, Capsida Biotherapeutics, Compass Minerals International, DEVK Versicherungen, EDEKA Handelsgesellschaft Nord, Endeavor Group and Softbank.
In the third quarter, Coupa made an investment in Interos, a supply chain risk management and operational resilience company.
Non-GAAP gross profit margin expanded 3520 basis points (bps) year over year to 97% compared with 61.8% in the year-ago quarter.
Research & development expenses, as a percentage of revenues, declined 180 bps on a year-over-year basis to 15.4%. General & administrative expenses, as a percentage of revenues, were 12.7%, down 130 bps year over year. Sales and marketing expenses, as a percentage of revenues, reached 30.9% on a year-over-year basis.
Total operating expenses, as a percentage of revenues, were 59%, down 280 bps from the year-ago quarter’s levels.
Operating income was $27.9 million in the reported quarter compared with an operating income of $14.3 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Oct 31, 2021, Coupa had cash, cash equivalents and marketable securities of $667.9 million compared with $606.3 million as of Jan 31, 2020.
Operating cash flows and adjusted free cash flows were $31 million and $28.2 million, respectively, in the reported quarter.
Guidance
For fourth-quarter fiscal 2022, Coupa expects revenues in the range of $185-$186 million.
Subscription revenues are anticipated in the range of $166-$167 million. Professional services and other revenues are forecasted to be approximately $189 million.
Non-GAAP income from operations is expected in the range of $8-$10 million for the fiscal fourth quarter.
Non-GAAP net income per share is anticipated to be in the range of 3-5 cents per share for the fiscal fourth quarter.
For fiscal 2022, Coupa expects total revenues in the range of $717-$718 million.
Non-GAAP income from operations is forecasted to be within $70-$72 million for fiscal 2022.
Non-GAAP income per share is anticipated in the 66-69 cents per share range, for fiscal 2022.
Zacks Rank & Stocks to Consider
Coupa currently has a Zacks Rank #3 (Hold).
COUP is up 2.1% against the Zacks Internet Software industry’s decline of 23.5% and Computer & Technology sector’s return of 20.5% year to date.
Some better-ranked stocks in the Computer & Technology sector are Nova Measuring Instruments (NVMI - Free Report) , Advanced Micro Devices (AMD - Free Report) and Pinterest (PINS - Free Report) .
Nova Measuring sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The long-term earnings growth rate is pegged at 32.2%.
Nova Measuring’s shares have returned 75.6% year to date compared with the Zacks Electronics-Semiconductors industry’s growth of 33.8% and the Computer & Technology sector’s return of 20.5%.
The long-term earnings growth rate for AMD, a Zacks Rank #2 (Buy) stock, is currently pegged at 46.2%.
AMD shares have returned 51.6% year to date compared with the Electronics-Semiconductors industry’s growth of 33.8% and the Computer & Technology sector’s return of 20.4%.
Pinterest, carrying a Zacks Rank #2, has a long-term earnings growth rate of 52.7%.
PINS shares are down 42.6% compared with the Zacks Internet Software industry’s decline of 23.5% and the Computer & Technology sector’s return of 20.4% year to date.