Coupa Software (COUP) Q4 Earnings Top Estimates, Revenues Up

Coupa Software Incorporated COUP reported fourth-quarter fiscal 2022 non-GAAP earnings of 19 cents per share, beating the Zacks Consensus Estimate by 14 cents and jumping 11.8% year over year.

Coupa reported quarterly revenues of $193.3 million, up 18.2% year over year. The growth was primarily driven by recurring revenues from new customer logos and add-on transactions, reflecting strength in its core business and momentum in the integration of acquired assets.

In fiscal 2022, total revenues increased 34% year over year to $725.3 million.

Coupa Software, Inc. Price, Consensus and EPS Surprise

Coupa Software, Inc. Price, Consensus and EPS Surprise

Coupa Software, Inc. price-consensus-eps-surprise-chart | Coupa Software, Inc. Quote

Quarter Details

Subscription revenues increased 28% year over year to $173 million in the quarter. Subscription revenues contributed 89.1% to revenues. Professional Services and other revenues contributed 10.9% to total revenues. The figure amounted to $20.3 million, down 29% year over year.

Non-GAAP gross profit margin was 74.8% compared with 70.1% in the year-ago quarter. Total operating expenses were $176.5 million, down from $179.3 million. Operating loss was $59.8 million in the quarter compared with an operating loss of $95.4 million in the year-ago quarter.

Cash Flow & Liquidity

In fiscal 2022, Coupa’s operating cash flow was $168.1 million compared with $78.2 million in fiscal 2021. As of Jan 31, 2022, the company had $506.5 million in cash and cash equivalents with $1,614.3 million of senior notes.

Guidance

For first-quarter fiscal 2023, Coupa expects revenues in the range of $189-$191 million. Subscription revenues are anticipated in the range of $171-$173 million. Professional services and other revenues are forecasted to be approximately $18 million. Non-GAAP income from operations is expected in the band of $6-$8 million. Non-GAAP net income per share is anticipated to be in the range of 3-6 cents per share.

For fiscal 2023, Coupa expects total revenues in the range of $836-$840 million. Non-GAAP income from operations is forecasted to be within $25-$29 million for fiscal 2023. Non-GAAP income per share is anticipated in the 15-19 cents per share band.

Zacks Rank & Stocks to Consider

Coupa currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearfield, Inc. CLFD is a better-ranked stock in the broader Zacks Computer and Technology sector, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised 20.5% upward over the past 60 days.

Clearfield delivered a trailing four-quarter earnings surprise of 50.7%, on average. It has gained 72.2% in the past year.

Qualcomm, Inc. QCOM, carrying a Zacks Rank #2 (Buy), is another solid pick for investors. The consensus estimate for current-year earnings has been revised upward by 12.2% over the past 60 days.

Qualcomm delivered a trailing four-quarter earnings surprise of 12.2%, on average. It has appreciated 5.7% in the past year.

Sierra Wireless, Inc. SWIR also carries a Zacks Rank #2. The consensus mark for current-year earnings has been revised upward by 237.5% over the past 60 days.

Sierra Wireless pulled off a trailing four-quarter earnings surprise of 58%, on average. The stock has, however, lost 2.1% in the past year.

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