Coupa Stock Plunges On Weak Guidance Amid Acquisition Spree

Coupa Software (COUP) on Monday delivered January-quarter earnings and revenue that topped estimates amid its acquisition spree. But Coupa stock plunged as management guidance for the current fiscal year fell far short of expectations.

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San Mateo, Calif.-based Coupa reported fourth-quarter earnings after the market close. COUP stock plunged 17.2% to 74.41 in extended trading on the stock market today.

In Monday’s regular session, Coupa stock had retreated 9.6%.

The software maker said that on an adjusted basis, Coupa earnings rose 12% to 19 cents. Revenue climbed 18% to $193.3 million.

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

Coupa Stock: Guidance Misses Estimates

For the current 2023 fiscal year, the maker of business spending management software forecast revenue of $838 million at the midpoint of its guidance vs. estimates of $876.4 million.

Coupa says it expects adjusted profit of 17 cents. Analysts had predicted 73 cents.

Heading into the Coupa earnings report, the company’s stock owned a Relative Strength Rating of 10 out of a possible 99, according to IBD MarketSmith analysis.

Meanwhile, Coupa stock had retreated some 46% in 2022.

Coupa’s software products cover employee travel and expense management, procurement and invoicing.

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

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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