Coupa Software Inc (NASDAQ:COUP) stock fell 0.076% (As on December 13, 11:26:12 AM UTC-4, Source: Google Finance) after the company has agreed to be taken private by buyout firm Thoma Bravo in a deal that values the cloud-based business software firm at $8 billion. Coupa shareholders will receive $81 per share under the deal, 30.5% higher than the stock’s closing level on Friday and 77.2% above Nov. 22, when takeover interest in the company was first reported. The transaction, which was approved unanimously by the Coupa Board of Directors, is expected to close in the first half of 2023, subject to customary closing conditions, including approval by Coupa shareholders and the receipt of required regulatory approvals. The transaction is not subject to a financing condition. Upon completion of the transaction, Coupa’s common stock will no longer be listed on any public market. The company will continue to operate under the Coupa name and brand.
The company is likely to benefit from increased adoption of Coupa Pay offerings and cloud-based BSM solutions. Coupa CLM Advanced is expected to improve its position in the BSM software market by leveraging synergies from the combination of the Coupa BSM platform with Exari’s technology amid the digital transformation. Further, the company has been adding new capabilities to Coupa Supplier Insights and Coupa BSM solutions, which are anticipated to boost adoption.
The company had reported the adjusted revenue growth of 17 percent to $217.3 million in the third quarter of FY 23. Subscription revenues were $198.4 million, an increase of 20% compared to the same period last year. Non-GAAP operating income was $16.5 million, compared to $27.9 million for the same period last year. Non-GAAP net income attributable to Coupa Software Incorporated was $11.6 million, compared to $23.5 million for the same period last year. Operating cash flows and adjusted free cash flows were $71.3 million and $65.5 million, respectively. Quarterly Subscription Calculated Billings of $206 Million, 20% Year-Over-Year Growth.
Meanwhile, the company has welcomed many new customers into the Coupa community in Q3, including the following: Aareal Bank, Alltech Inc., Bahrain Tender Board, Banco Agromercantil de Guatemala, S. A., Central Romana Corporation Ltd., Ecolab Inc., First Watch, Fivetran Inc., Hargreaves Lansdown Asset Management Limited, Intercom Inc., Moto Honda da Amazonia Ltda, netgo group GmbH, Nissan Motor Co., Ltd., Noble Drilling Services Inc., RCL Foods, Scale AI, Inc, SoFi, Summit Materials Inc., Therm-O-Disc Inc., and West Dermatology
For fiscal 2023, the company has updated its revenue guidance from $838-$848 million to $838-$844 million. Subscription revenues are expected to be in the range of $766-$771 million. Professional services and other revenues are likely to be $72-$73 million.