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Coupa Analysts Mixed on Quarterly Report and Outlook

Coupa Software shares are lower. Securities analysts expressed a mix of thoughts on its fourth-quarter results and outlook.

Coupa Software  (COUP) - Get Coupa Software, Inc. Report dropped Wednesday as analysts reacted to the expense-management software company’s fourth-quarter results and guidance.

At last check Coupa shares were trading 4.8% lower at $258.90. The stock was down 20% in 2021 through Tuesday's close.

Adjusted earnings for the fourth quarter ended Jan. 31 were 17 cents a share, compared with 21 cents in the year-earlier period. The latest figure was stronger than the FactSet analyst consensus estimate of a loss of 11 cents. 

Coupa reported quarterly revenue of $163.5 million, up 47% from a year earlier and ahead of the analyst consensus estimate of $145.9 million. 

Subscription revenue was $134.9 million, an increase of 37% from the year-earlier quarter.

Thoughts on the San Mateo, Calif., company’s results were largely positive, Bloomberg reported, with analysts noting that billings and revenue growth exceeded the company's forecasts. 

At RBC Capital Markets analyst Matthew Hedberg rates Coupa Software outperform. He cut his price target to $340 a share from $360.

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He said that the company’s billings and profit margins exceeded Coupa’s own forecasts.

Peter Levine, analyst at Evercore ISI, rates the company in line and puts a $330 price target on the shares.

He also noted the strength in billings and revenue, and he called the initial fiscal 2022 forecast conservative, Bloomberg reported.

Ryan MacDonald of Needham rates Coupa buy with a price target of $385 a share.

He called the fourth quarter a solid finish to fiscal 2021, Bloomberg reported. But he also said that the organic growth in billings -- the growth the company generated internally, excluding its acquired businesses -- may be starting to slow.

He also said that the acquisition of two companies, Bellin and LLamasoft, will be critical to attracting customers to the Coupa platform.

Brent Bracelin, analyst at Piper Sandler, gives the stock a neutral rating with a $300 price target.

He said the company has a record pipeline entering fiscal 2022, but the stock is relatively expensive.