Coupa Stock Falls 25% After Earnings Report

Coupa Software shares plummeted Tuesday (March 15) following a January quarterly earnings report and weak management guidance for this fiscal year.

According to Investors Business Daily, the San Mateo, California, company reported its fourth-quarter earnings late Monday, leading to a 25% drop in early trading Tuesday.

“Revenue/billings both beat by less than usual and saw growth decelerated on an organic basis for the second consecutive quarter,” said RBC Capital analyst Rishi Jaluria in a report. “On top of that, guidance was well below consensus and implies further deceleration. Plus, margins are contracting on significant investments in fiscal 2023 with the intent to drive reacceleration in fiscal 2024.”

Coupa, which provides a business spend management platform, said that its earnings, on an adjusted basis, rose 12% to 19 cents per share, while revenue jumped 18% to $193.3 million.

According to IBD, analysts expected the company to show earnings of 5 cents on revenue of $186.2 million. Last year at this time, Coupa reported earnings of 17 cents a share on sales of $163.5 million.

In the fourth quarter, Coupa said billings rose 18% to $318.5 million. For the current 2023 fiscal year, the company projected revenue of $838 million at the midpoint of its guidance vs. estimates of $876.4 million.

Coupa says it expects adjusted profit of 17 cents, compared to analysts prediction of 73 cents.

Read more: AirPlus, Coupa Collaborate to Offer Improved Procurement

Earlier this year, Coupa formed a partnership with corporate payment specialist AirPlus International to offer clients new procurement options.

The companies say AirPlus Virtual Cards Procurement will be offered as a payment option within Coupa’s B2B payments solution, Coupa Pay, allowing clients of both companies to streamline and centralize spending on things like travel, business resources and utilities.