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Coupa Software Incorporated reported healthy first-quarter fiscal 2023 results, beating both the top-line and bottom-line estimates. The healthy results were backed by Coupa providing companies with visibility and control over their business spending, resiliency in back-office operations and aiding in making strategic and data-driven decisions to yield positive outcomes for their business.
Quarter Details
GAAP net loss reported during the quarter, attributable to Coupa Software Incorporated, was $81.5 million or $1.08 per share compared with $100.4 million or $1.38 per share in the prior-year quarter. Non-GAAP net income during the quarter was $5.5 million or 8 cents per share compared with $5 million or 7 cents per share in the prior-year quarter, beating the Zacks Consensus Estimate by 3 cents.
Revenues during the reported quarter were $196.4 million compared with $166.9 million in the prior-year quarter, reflecting year-over-year growth of 17.6% and beating the Zacks Consensus Estimate of $196 million. The growth was backed by the success of the Antares app, which provides customers with the flexibility to access supplier risk at the time of sourcing, monitoring third-party data and providing instant visibility to supplier risk scores.
Subscription revenues reported during the quarter were $178.5 million compared with $140.1 million, reflecting growth of 27.4% from the prior-year quarter. The growth was backed by the strengthening of the U.S. dollar against the euro. Professional services revenues during the quarter were $17.9 million compared with $26.8 million, reflecting a decrease of 33.2%.
Coupa Software, Inc. Price, Consensus and EPS Surprise
Gross profit during the quarter was reported at $115.5 million compared with $87.2 million in the prior-year quarter, reflecting growth of 32.4%. GAAP operating loss during the quarter was $71.3 million compared with $73.9 million in the prior-year quarter. Non-GAAP operating income in the quarter was $13.8 million compared with $7 million in the year-earlier quarter.
Cash Flow & Liquidity
During the fiscal first quarter, the company generated operating cash flows of $49.7 million compared with $32.1 million in the prior-year quarter. As of Apr 30, 2022, the company had $493.9 million of cash and cash equivalents with net convertible senior notes of $2,157.9 million.
Guidance
For fiscal 2023, the company has raised its guidance for revenues from $836-$840 million to $838-$848 million. Subscription revenues are expected to be in the range of $762-$767 million. Professional services and other revenues are expected to be approximately $76 million. Non-GAAP earnings is likely to be in the range of 21-27 cents per share.
For second-quarter fiscal 2023, total revenues are expected to be in the range of $202-$205 million. Subscription revenues are expected to be within $185-$188 million and professional services and other revenues are expected to be approximately $17 million. Non-GAAP net income is likely to be in the range of 7-10 cents per share.
Aspen Technology, Inc. (AZPN - Free Report) , belonging to the broader Zacks Computer and Technology sector, currently sports a Zacks Rank #1. AZPN has a long-term earnings growth expectation of 7.94%.
Aspen Technology witnessed an accelerated adoption of its solutions that has driven top-line growth over the years. The company has a strong pipeline for new business bookings. It continues to innovate and improve operations.
2U, Inc. (TWOU - Free Report) , presently carrying a Zacks Rank #2 (Buy), is a key pick for stock investors. TWOU has a long-term earnings growth expectation of 20%.
2U is an education technology company and a provider of cloud-based software-as-a-service (SaaS) solutions that enable non-profit colleges and universities to deliver their education to students globally.
Asana, Inc. (ASAN - Free Report) also carries a Zacks Rank #2 at present. It reported an earnings surprise of 1.56%, on average, in the trailing four quarters.
Asana provides a SaaS work management platform which enables individuals and teams to work efficiently.
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Coupa Software (COUP) Beats Q1 Earnings & Revenue Estimates
Coupa Software Incorporated reported healthy first-quarter fiscal 2023 results, beating both the top-line and bottom-line estimates. The healthy results were backed by Coupa providing companies with visibility and control over their business spending, resiliency in back-office operations and aiding in making strategic and data-driven decisions to yield positive outcomes for their business.
Quarter Details
GAAP net loss reported during the quarter, attributable to Coupa Software Incorporated, was $81.5 million or $1.08 per share compared with $100.4 million or $1.38 per share in the prior-year quarter. Non-GAAP net income during the quarter was $5.5 million or 8 cents per share compared with $5 million or 7 cents per share in the prior-year quarter, beating the Zacks Consensus Estimate by 3 cents.
Revenues during the reported quarter were $196.4 million compared with $166.9 million in the prior-year quarter, reflecting year-over-year growth of 17.6% and beating the Zacks Consensus Estimate of $196 million. The growth was backed by the success of the Antares app, which provides customers with the flexibility to access supplier risk at the time of sourcing, monitoring third-party data and providing instant visibility to supplier risk scores.
Subscription revenues reported during the quarter were $178.5 million compared with $140.1 million, reflecting growth of 27.4% from the prior-year quarter. The growth was backed by the strengthening of the U.S. dollar against the euro. Professional services revenues during the quarter were $17.9 million compared with $26.8 million, reflecting a decrease of 33.2%.
Coupa Software, Inc. Price, Consensus and EPS Surprise
Coupa Software, Inc. price-consensus-eps-surprise-chart | Coupa Software, Inc. Quote
Operating Details
Gross profit during the quarter was reported at $115.5 million compared with $87.2 million in the prior-year quarter, reflecting growth of 32.4%. GAAP operating loss during the quarter was $71.3 million compared with $73.9 million in the prior-year quarter. Non-GAAP operating income in the quarter was $13.8 million compared with $7 million in the year-earlier quarter.
Cash Flow & Liquidity
During the fiscal first quarter, the company generated operating cash flows of $49.7 million compared with $32.1 million in the prior-year quarter. As of Apr 30, 2022, the company had $493.9 million of cash and cash equivalents with net convertible senior notes of $2,157.9 million.
Guidance
For fiscal 2023, the company has raised its guidance for revenues from $836-$840 million to $838-$848 million. Subscription revenues are expected to be in the range of $762-$767 million. Professional services and other revenues are expected to be approximately $76 million. Non-GAAP earnings is likely to be in the range of 21-27 cents per share.
For second-quarter fiscal 2023, total revenues are expected to be in the range of $202-$205 million. Subscription revenues are expected to be within $185-$188 million and professional services and other revenues are expected to be approximately $17 million. Non-GAAP net income is likely to be in the range of 7-10 cents per share.
Zacks Rank & Stocks to Consider
Coupa Software currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aspen Technology, Inc. (AZPN - Free Report) , belonging to the broader Zacks Computer and Technology sector, currently sports a Zacks Rank #1. AZPN has a long-term earnings growth expectation of 7.94%.
Aspen Technology witnessed an accelerated adoption of its solutions that has driven top-line growth over the years. The company has a strong pipeline for new business bookings. It continues to innovate and improve operations.
2U, Inc. (TWOU - Free Report) , presently carrying a Zacks Rank #2 (Buy), is a key pick for stock investors. TWOU has a long-term earnings growth expectation of 20%.
2U is an education technology company and a provider of cloud-based software-as-a-service (SaaS) solutions that enable non-profit colleges and universities to deliver their education to students globally.
Asana, Inc. (ASAN - Free Report) also carries a Zacks Rank #2 at present. It reported an earnings surprise of 1.56%, on average, in the trailing four quarters.
Asana provides a SaaS work management platform which enables individuals and teams to work efficiently.