Coupa Software Inc(NASDAQ:COUP) stock rose over 7.5% in the after-hours session on September 5th, 2017 post their better than estimated second quarter update. The group achieved a major milestone of surpassing $500 billion in Cumulative Spend Under Management during the quarter. Coupa Software revenue rose 43% yoy to $44.6 million in the second quarter of fiscal 2018 and generated a positive operating and free cash flows of $9.2 million and $8.1 million respectively, for the second time. The group holds a $208 million of cash. The tech firm expanded their non-GAAP gross margin to 71% during the second quarter from 65% in the prior corresponding period while making investments in professional services. Non-GAAP gross margin from subscriptions reached 81%, but non-GAAP gross margin from professional services and other was negative 9%.
Coupa Software won major clients like Unilever and Glencore during the quarter. Coupa’s user-centricity, functional fit, ability to integrate seamlessly with other software platforms, helped them to add several customers from various domains like FlexTrade Systems, Mineral Resources Limited in Australia, QuikTrip, Harley Marine Services, Opendoor Labs, Costcutter Supermarkets, Amerisource Industrial Supply, American National Insurance Company, Armanino, and many others.
The group’s acquisition in 2017 which includes Trade Extensions and Spend360 is showing good response. The will be launching R19 next month at Inspire London ’17. They are also recognized among leading global AP automation providers by PayStream Advisors.
For the third quarter of fiscal 2018, Coupa Software forecasts a revenues in the range of $44.8 and $45.3 million, with over $4 million from professional services while Non-GAAP net loss per share would be in the range of $0.10 loss and $0.12 loss per share. For Full year fiscal 2018, the group forecasts a revenues in the range of $177 and $179 million while Non-GAAP loss from operations would be in $25.0 and $26.0 million range. The shares of Coupa Software fell over 19% in the last three months but generated an overall returns of 18.3% this year. The stock has a $38.17 target price which is 29% upside as per 6 analysts’ consensus recommendation (Source: tipranks.com)