Coupa Software Inc (NASDAQ: COUP) stock rose 0.40% on 4th September, 2018 after the company acquired the technology assets of DCR Workforce, which is a leading provider of contingent workforce management and services procurement software. The acquisition further solidifies Coupa’s vision of enabling businesses to manage all their organization’s business spend, including contingent workforce spend, within a comprehensive BSM platform.
Meanwhile, COUP in the second quarter of FY 19 has posted better than expected results. COUP has reported the adjusted earnings per share of 5 cents for the second quarter 2019, beating the analysts’ estimates for the adjusted loss per share of 5 cents, according to FactSet. The company had reported the adjusted revenue growth of 38 percent to $61.7 million in the second quarter of FY 19, beating the analysts’ estimates for revenue of $58.5 million. Subscription revenues were $55.4 million, an increase of 39% compared to the same period last year. At the end of last year, greater than 50% of new subscription revenue has come from solutions beyond the core procure module and that figure has continued to increase in the first half of this year, along with a continued increase in average deal sizes. Cumulative spend under management through the platform surpassed $840 billion during the second quarter 2019.
During the second quarter, the company added new customers like Telenor, McCain Foods, Leprino Foods, US Concrete, Wabash National, Hubert Burda Media, Boyd Gaming, Veeam Software, Tencent, The NPD Group, Inchcape, Benteler and many others. As well, the company had some outstanding customer go lives in Q2. Unilever went live in North America in a first phase of a global procurement transformation initiative. Western Europe and Brazil are the next planned locations as Unilever continues to roll out their Coupa powered Easy Buy solution across the globe, all with the focus on rapid user adoption as a key measurement of success. Also, the Co-op went live with Coupa Source to Pay and supplier management in the first phase of their deployment addressing spend at their food depots and support center. The Co-op is now planning and scoping their next phase and is considering expanding Coupa to additional spend categories.
For the third quarter of 2019, the company expects total revenues to be between $62.0 and $63.0 million. Subscription revenues are expected to be between $56.5 and $57.5 million. Professional services and other revenues are expected to be approximately $5.5 million. Non-GAAP loss from operations is expected to be between $1.0 and $2.0 million. Non-GAAP net loss per share is expected to be between $0.01 loss and $0.04 loss per share.