Coupa Software Incorporated (NASDAQ:COUP)
Coupa Software Incorporated (COUP), a cloud based management company yesterday reported their fiscal third quarter 2017 financial results. Coupa reported third quarter adjusted earnings of a loss of $0.22 per share which beat analyst expectations of a loss of $0.47 per share.
Coupa Software Incorporated CEO and CFO’s Comments
Rob Bernshteyn, CEO of Coupa said,
Our strong financial results in the third quarter reflect the tremendous value we are creating in partnership with our customers.
Companies are leveraging our unified cloud platform to maximize spend under management, achieve significant cost savings and drive profitability. As of the end of the third quarter, Coupa has helped deliver more than $10 billion in cumulative savings to our customers. With the completion of our initial public offering in October, we believe we are extremely well positioned to continue driving measurable business value with all our customers globally.
Todd Ford, CFO of Coupa, added,
We are pleased with our fiscal third quarter results and the scale we are beginning to see in our business model. The quarter was highlighted by total revenue growth of 55% year-over-year and subscription revenue growth of 48% year-over-year. Our professional services strategy to ensure customer success and build long-term partnerships with system integrator partners is also working, and was accentuated by approximately $1.4 million in revenue we recognized in Q3 from one larger than normal customer go-live. We also achieved record GAAP gross margins of 68%.
COUP Technical Analysis
COUP opened trading yesterday at $26.60, which was up from the previous day’s trading close of $26.29. COUP closed trading yesterday at $26.02 and spiked up after market to $28.53, equivalent to a 10% increase from the closing price. Taking a look at the daily chart, we can see that the last time COUP traded above these levels we have to go back to November 30th, when it traded at $31.74. Taking a closer look at the daily chart, we can see that before the spike up, COUP had been in an overall downward trend dating back to November 25th, when it traded at $32.84.
COUP has a float of 2.31 million shares and traded below the normal daily trading volume on Monday. For trading purposes, I would like to see COUP open trading on Tuesday above $27.70 and if it does, I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Coupa Software Incorporated provides cloud-based spend management platform. The company’s platform connects organization with suppliers globally; and provides greater visibility into and control over how companies spend money, as well as enables businesses to achieve savings that drive profitability. Its platform offers procurement, invoicing, and expense management modules that captures a company’s spend under management; and supporting modules, including sourcing, analytics, contract management, supplier management, inventory management, and storefront that help companies further manage their spend.
The company markets its platform to enterprises in various industries, such as healthcare and pharmaceuticals, retail, financial services, manufacturing, technology, and others primarily through a direct sales force worldwide. Coupa Software Incorporated was founded in 2006 and is headquartered in San Mateo, California.