Coupa Software (COUP), a payment management software provider, announced its financial results for its first fiscal quarter, sharing better than expected revenue and narrower losses for the quarter.
The company reported it narrowed its loss to $81.5m, or $1.08 a share compared to the $100.4m, or $1.38 a share from the previous year. Revenues also increased by 17.6% to $196.4m from $166.9m compared to the same quarter last year.
In terms of revenue and subscription revenue, the company has achieved a new quarterly record, while also generating over 20% operational cash flow and adjusted free cash flow margins. Coupa's quarterly subscription revenue reached $178m at the end of the quarter, up 27% from the previous quarter. Billings of $188m were also recorded, up 26% year over year and more than the $175.6m projected by experts.
Coupa sells software for procurement, invoicing, sourcing, and managing business spending. The company is now bouncing back following losses it incurred as a result of the pandemic, which caused many businesses to cut back on their business expenses.
Why it matters
Coupa issued guidance for the second quarter and fiscal 2023 and expects a profit of 7 to 10 cents per share on revenue of $202m to $205m. With revenues of $205.3m, Wall Street expects a profit of a cent per share. After increasing 2% earlier in the day, Coupa's stock gained less than a percentage point in extended trade.
