Coupa Software (COUP) - Get Report shares were down 4.9% to $89 in trading Tuesday following its fourth-quarter earnings release, even though the cloud-based spend management platform provided downside guidance.
For the April quarter, Coupa expects to lose between a 3 cents and 6 cents per share, short of Wall Street's expectations of a profit of 1 cent per share. The company expects revenue of $74 million at its midpoint vs. analysts' estimates of $70.3 million.
In the fourth quarter, the company reported earnings of 5 cents per share on revenue of $74.9 million, a 39% increase from the previous year, vs. Wall Street estimates of flat earnings on sales of $67.7 million.
"The fourth quarter of fiscal 2019 was the strongest quarter yet in our company's history, as marked by a number of significant milestones," said Rob Bernshteyn, chief executive officer at Coupa. "Heading into fiscal 2020, our powerful combination of innovation, execution, and core values that are centered around ensuring customer success, will enable us to extend our leadership position in Business Spend Management."
Research firms are bullish on the company, with analysts at Raymond James raising their price target to $107 per share from $86. SunTrust RH raised its price target to $110 per share from $86.