Coupa Software shares tanked 30% on disappointing guidance

By:
on Mar 14, 2022
  • Coupa Software reports better than expected revenue for its fiscal Q4.
  • The software company's future guidance disappointed shareholders.
  • Coupa stock tanked close to 30% in after-hours trading on Monday.

Coupa Software Inc (NASDAQ: COUP) shares tanked nearly 30% in extended trading on Monday after the San Mateo-headquartered company’s future guidance came in shy of Wall Street expectations.

Coupa Software Q4 highlights

  • Quarterly loss widened to $96 million versus the year-ago figure of $61.4 million.
  • On a per-share basis, Coupa lost $1.29 a share, up from 85 cents a share last year.
  • Adjusted EPS printed at 19 cents a share, as per the earnings press release.
  • Revenue jumped 18% to $193.3 million – ahead of the FactSet consensus.
  • Calculated billings in fiscal Q4 were up 18% on a year-over-year basis.
  • Operating cash flow stood at positive $64.2 million.

Including the after-hours price action, Coupa stock is now over 60% year-to-date.

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Coupa Software future outlook

For the current quarter, Coupa forecasts its revenue to fall in the range of $189 million to $191 million on 3 to 6 cents of adjusted EPS. In comparison, analysts were at $196.1 million in Q1 revenue on 5 cents of adjusted earnings per share.

Its full-year guidance was also well-below the Street expectations. In the earnings press release, CEO Rob Bernshteyn said:

We finished the fiscal year strong, delivering record revenue and free cash flow in Q4. During fiscal 2022, we grew new business in excess of 60%, which we define as new recurring revenue from new customer logos and add-on transactions, driven by our core business and integration of acquired assets.

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