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Coupa shares jumped 15% after the bell: what’s fuelling the stock?

on Sep 6, 2022
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  • Coupa Software Inc reports market-beating results for its fiscal Q2.
  • Its Board of Directors also authorised $100 million in share repurchase.
  • Coupa shares are up roughly 15% in after-hours trading on Tuesday.

Shares of Coupa Software Inc (NASDAQ: COUP) are up nearly 15% in extended trading after the software company reported market-beating results for its fiscal second quarter.

Key takeaways from Coupa Q2 earnings report

  • Lost $75.3 million versus the year-ago $91.5 million
  • Per-share loss narrowed to 99 cents from $1.24
  • On an adjusted basis, earnings printed at 20 cents a share
  • Revenue jumped 18% year-on-year to $211.1 million
  • Consensus was 9 cents a share on $203.8 million revenue
  • Generated free cash flow (adjusted) worth $25 million

Subscription revenue up 23% was also better than expected. In the earnings press release, CEO Rob Bernshteyn said:

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We delivered record revenues, strong growth in our subscription calculated billings, and we continue to deliver strong cash flows and profitability on a non-GAAP basis.

Including the tech news this evening, Coupa shares are still down more than 60% versus the start of 2022.

Coupa shares up as Board authorised stock buyback

Also on Tuesday, the Board of Directors authorised $100 million in share repurchase.

For the full financial year, Coupa Software expects its revenue to fall between $838 million and $844 million – roughly in line with $840.2 million that experts had forecast. Bernshteyn added:

We focus everything we do on our customers. As illustrated by our results, the Coupa BSM community is vibrant and powering business transformation and growth.

Wall Street recommends that you buy Coupa shares as they have another 25% upside from here. Executives discussed results on the earnings call here.