Coupa Stock Drops in Weak Guidance Amid Acquisition Spree

Participate in Coupa (coup) was down on Tuesday due to the January quarter earnings report and poor management guidance for the current fiscal year. Disappointing results for Coupa stock followed several acquisitions.

X

California-based Coupa reported fourth-quarter earnings after the market closed on Monday. Shares fell 25.3% to 67.13 in early trade on stock market today. In the regular Monday session, Coupa’s stock is down 9.6%.

“Revenue/billing both outperformed and experienced slower growth on an organic basis for the second consecutive quarter,” RBC Capital analyst Rishi Galoria said in a report. Moreover, the guidance was well below consensus and implied further slowdown. In addition, margins are narrowing on significant investments in FY 2023 with a view to driving reacceleration in FY 2024.”

On an adjusted basis, the software maker said, Coupa’s earnings rose 12% to 19 cents per share. Revenue jumped 18% to $193.3 million.

Analysts expected Coupa to earn 5 cents on revenue of $186.2 million. A year ago, Coupa earned 17 cents a share on sales of $163.5 million.

Coupa Stock: Guidance misses estimates

The company said that bills in the fourth quarter rose 18 percent to $318.5 million. For the current fiscal year 2023, the business spending management software maker forecast revenue of $838 million midway through its guidance versus estimates of $876.4 million.

Coupa says it expects an adjusted profit of 17 cents. Analysts expected 73 cents.

One of the problems is the channeling of subscription revenue weaker than the model, Trust Securities analyst Terry Tillman said in a report. “The company has tried to explain that it will take upwards of 18 to 24 months to consolidate new business trends to fully tilt total subscription revenue growth to a significantly higher level,” he said.

Heading to Coupa’s earnings report, company a . stock has Rated relative strength out of 10 out of 99 possible, according to IBD Market Smith Analytics.

Coupa stock is down 46% in 2022.

Coupa software products cover employee travel, expense management, procurement and billing.

Since late 2018, Coupa has been on an acquisition spree. It bought Llamasoft, Bellin, Hipperos, Exari, and Yapta.

If you are new to IBD, consider taking a look at stock trading system And the CAN SLIM Basics. Distinguish chart patterns For Coupa stocks and others is one of the keys to investment guidance.

Follow Reinhardt Krause on Twitter Tweet embed For updates on 5G wireless networks, artificial intelligence, cyber security and cloud computing.

Best growth stock to buy and watch: see IBD stock listings updates

How to use the 10-week moving average to buy and sell