Coupa Software Stock Tanks 30% On Weak Outlook

(RTTNews) - Shares of Coupa Software Inc. (COUP) tanked nearly 30% in extended hours on Monday hurt largely by its weak outlook for the first quarter and full year 2023.

Fourth-quarter loss widened to $96.0 million or $1.29 per share from $61.4 million or $0.85 per share last year.

Adjusted net income was $14.4 million or $0.19 per share, up from $13.0 million or $0.17 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues were $193.3 million, an increase of 18% compared to $163.5 million reported last year. Analysts had a consensus revenue estimate of $185.68 million for the quarter.

"We finished the fiscal year strong, delivering record revenue and free cash flow results in the fourth quarter," said Rob Bernshteyn, chairman and chief executive officer at Coupa. "During Fiscal '22, we grew new business in excess of 60%, which we define as new recurring revenue from new customer logos and add-on transactions."

Looking forward to the first quarter, the company expects revenues of $189.0 million to $191.0 million and adjusted earnings of $0.03 to $0.06 per share. Analysts currently estimate earnings of $0.05 per share on revenues of $196.14 million for the quarter.

For the full year 2023, the company expects revenues of $836.0 million to $840.0 million and adjusted earnings of $0.15 to $0.19 per share. Analysts currently estimate earnings of $0.74 per share and revenues of $877.51 million.

COUP closed Monday's trading at $89.82, down $9.54 or 9.60%, on the Nasdaq. The stock further slipped $26.16 or 29.12% in the after-hours trading.