Corporate spend management company Coupa reported better-than-expected third-quarter earnings on Tuesday (December 4), news that was met with a decline in share prices during after-hours trading, according to The Motley Fool reports.
Coupa posted a 42 percent year-over-year increase in quarterly revenues, which hit $67.5 million for Q3, the highlight of its earnings report. Net losses hit $9.6 million, reduced from $11.3 million in losses the same time last year.
Despite the positive news, reports noted that Coupa shares slumped following the release of its earnings data. Analysts attributed this less to the performance of Coupa, and more to macro trends, including the overall stock market drop on Tuesday, and an inflated stock valuation for Coupa to begin with, The Motley Fool said.
The spend management company pointed to some company highlights it landed during the third quarter, including the acquisition of supplier relationship management and eProcurement solutions provider Aquiire, strengthening Coupa's position in the B2B purchasing space and positioning itself before a business makes a purchase, as well as after.
Coupa also launched CoupaPay, a major push in the B2B payments arena that links corporate customers to payments and financing functions, as well as a Barclaycard collaboration to integrate virtual commercial card capabilities in its platform.
“We continue to extend our market leadership position, reporting 40 percent revenue growth and 39 percent calculated billings growth for the trailing 12 months, along with non-GAAP diluted earnings per share of 8 cents for the quarter,” Coupa Chief Executive Officer Rob Bernshteyn said in a statement. He added that the company has now handled more than $940 billion worth of corporate spend on its platform “with $1 trillion clearly in our sights.”
“The foundation for our strong financial results continues to be our ability to deliver repeatable and measurable value for our customers worldwide across all areas of business spend management,” Bernshteyn added.