Coupa’s Strong First Quarter Shows Cloud Services Remain in High Demand
Business spend management company Coupa Software (COUP) reported solid quarterly results...
Its first-quarter earnings per share ("EPS") of $0.08 came in above the estimated $0.05. Revenue of $196.4 million also beat the consensus of $191 million.
COUP shares rose by 5.2% following the press release.
CEO Rob Bernshteyn said Coupa delivered record quarterly total and subscription revenue, with an operating cash flow yield over 20%. He emphasized that this growth was driven by the increasing need for back-office management software and data analytics.
And this is a trend the company expects will continue, even with a mixed outlook... Coupa expects second-quarter EPS between $0.07 and $0.10, above the anticipated $0.05. Its forecasted revenue of $202 million to $205 million fell short of the estimated $205.3 million.
Meanwhile, Coupa added that its fiscal-year 2023 EPS could be around $0.21 to $0.27 compared with the expected $0.20. The company noted its revenue for the period could be $838 million to $843 million versus the anticipated $840.4 million.
As our colleague and Stansberry Research editor Eric Wade noted in an issue of DailyWealth Premium...
(Cloud) demand has never been higher. More companies and government agencies are dependent on cloud services every day... as technologies, products, and services involved in people working from home, buying from home, selling from home, and communication and interacting from a distance became "essential" literally almost overnight.
This suggests that despite some companies returning to the office, many others are continuing to offer remote and hybrid options for their workers. So, even if firms like Coupa report a slowdown in growth, demand for their services should consistently rise as the world becomes increasingly reliant on business software and cloud services.