Coupa Software Inc (NASDAQ: COUP) stock surged over 10.2% on 4th September, 2019 (as of 12:02 pm GMT-4 ; Source: Google finance) driven by better than expected results for the second quarter of FY 20 as more firms signed up to its business spend management platform, which helps manage expenses. Non-GAAP operating income was $4.8 million, compared to Non-GAAP operating income of $4.0 million for the same period last year. Non-GAAP net income was $5.3 million, compared to Non-GAAP net income of $3.3 million for the same period last year. Operating cash flows and free cash flows were positive $1.3 million and negative $2.3 million, respectively, for the quarter ended July 31, 2019. Cumulative spend under management, which represents the aggregate amount of money transacted through the company’s core platform rose 8.3% to $1.3 trillion from the first quarter.
COUP in the second quarter of FY 20 has reported the adjusted earnings per share of 7 cents, beating the analysts’ estimates for the adjusted loss per share of 10 cents, , according to analysts polled by FactSet. The company had reported the adjusted revenue growth of 54 percent to $95.1 million in the second quarter of FY20, beating the analysts’ estimates for revenue of $85.4 million. Coupa said that its billings, rose 57%, to $107.7 million. Wall Street had estimated billings of just $87.1 million. Subscription revenues were $83.5 million, an increase of 51% compared to the same period last year.
The company is expecting third-quarter earnings of 6 to 8 cents a share on revenue of $96 million. This was ahead of Wall Street’s forecast of 6 cents on revenue of $87 million. For the third quarter, the company expects Subscription revenues to be between $86.0 and $87.0 million. Professional services and other revenues are expected to be approximately $9.5 million. Non-GAAP income from operations is expected to be between $3.5 and $5.5 million. Non-GAAP operating income was $4.8 million, compared to Non-GAAP operating income of $4.0 million for the same period last year.
For Full year fiscal 2020, the company expects total revenues to be between $369.0 and $372.0 million. Non-GAAP income from operations is expected to be between $10.0 and $13.0 million. Non-GAAP net income per diluted share is expected to be between $0.11 and $0.16 per share.
Meanwhile, Coupa’s payment management software covers things such as procurement, invoicing, sourcing and business expenses. Its software sits alongside enterprise resource planning software in the larger financial information technology stack. Benefits for customers include faster approvals routing, better invoice and purchase order matching, and centralized electronic payment routing to suppliers.