Coupa Software, Inc. (COUP) released its quarterly earnings on 8th June in which the company shows quarterly Revenues of $119.2 Million which is up by around 47% Year-Over-Year. The company has recorded its quarterly subscription revenues of $105.7 Million which is up around 45% Year-Over-Year.
This quarterly report shows earnings of 185.71%. Market estimates that the company would post earnings of $0.05 per share. It actually produced earnings of $0.21, which delivers a value of 320%.
- The company revenue is $119,214 from subscription and professional services provided by the company.
- The statements show an operating loss of $5.63 million, which is 68.4% better year-over-year from a loss of $17.81 million in the previous quarter.
- The Coupa Software earnings report has a net loss of $14.82 million, $20.47 million in the previous quarter.
- The statement records operating expenses of $82 million of the company.
- Total cash, cash equivalents, and restricted of the company are $ 295,928.
Source: Coupa software official site.
Sales and marketing expenses are $46.1 million for the three months, ended April 30, 2020 and $33.6 million for the three months ended April 30, 2019. There is an increase of $12.5 million, which is around 37% in cost for the company. The reason for this increase was due to an increase of $10.1 million in employee compensation costs. $2.2 million related to facilities, and other costs so, a $1.0 million increase in customer relationship amortization partially offset by a decrease of $0.8 million in travel costs. As of April 30, 2020, in response to the COVID-19 pandemic, the company canceled in-person, annual Inspire conferences and other in-person marketing events and postponed to next year. The expenses incurred in connection with the cancellation of the conferences were not material for the three months ended April 30, 2020.
The company earns most of its revenue from subscriptions as shown in the above graph. The company works very efficiently in gaining subscriptions from the market.
CURRENT VALUATION OF THE COMPANY
- Price to book value of the company is 33.5 price to earning is -111.1.
- Price to sales is 25.8, enterprise valuation to assets ratio 9.7, enterprise valuation to debt is ratio is 19.7, enterprise valuation to EBIT is -1184.1 and EBITDA is -4234.5.
- Enterprise valuation to free cash flow is 765, enterprise valuation to market capitalisation is 1.0 million, enterprise valuation to revenue is -138.5 and price to free cash flow is 739.4.
- EBT margin of the company is -23.16%.
- EBITDA margin of the company is -330%
- Gross margin is 64% and net profit margin of the company is -21.60%
The stock holds a 10day average volume of 2.2 million. The 52-week high of the share is 238.19 and the 52-week low is 99.01. YTD% change in the stock is 50.96. The share has the EPS of -1.34 with P/E ratio of -164.55. The company mentioned in the financial report that it expects adjusted EPS of 36 cents to 38 cents on revenue of $489 million to $491 million. With this, Wall Street is estimating adjusted EPS of 33 cents on revenue of $487.89 million. On June 7, the company share (COUP) stock was down by 4%. The stock closed out the day is up by 1.8%.
Rob Bernshteyn (chairman and CEO), said in the fiscal earnings report “Our strong first-quarter results are a clear representation of the value Coupa delivers to customers in all economic climates. As we focus on supporting our employees and ensuring all members of the Coupa community emerge from this pandemic stronger, we continue to leverage our thoughtful, disciplined financial approach, the strength of our balance sheet, and a focus on business resilience to foster growth and position ourselves for sustained market leadership well beyond the current crisis.
ABOUT THE COMPANY
Coupa Software was founded in 2006. The company provides a cloud-based spend management (BSM) platform solutions which helps to connect organizations with suppliers globally. The Company offers to spend the service of pre-integrated management cloud applications. This platform provides computerized financial applications. It spends management suite which includes many operational works like procurement, invoicing, expenses, sourcing etc. This platform offers various features like Procurement, Invoicing and Expense Management.
FUTURE OUTLOOK OF THE COMPANY
The pandemic impact on the business and other risks and uncertainties could affect Coupa’s future results. These are included under the heading of “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” division of the company. The company is constantly working for increasing the business.