By Dhirendra Tripathi
Investing.com – Coupa Software stock (NASDAQ:COUP) fell by more than 3% in Wednesday’s trading as the company’s higher forecast for annual revenue still implies a slowing down of its growth after a pandemic-induced surge in demand for its cost-control solutions.
The company’s annual revenue forecast of $707 million at midpoint translates into a year-on-year growth of around 31%, a slowdown from 39% growth in the previous financial year.
Traders chose to overlook the higher guidance that was revised from the June forecast of $682.5 million in revenue at midpoint. The company had forecasted a net loss on an annual basis then but now sees an adjusted profit of 28 cents per share at midpoint in the current financial year.
On a year-on-year basis, the company’s third-quarter revenue forecast of $177.5 million at midpoint is 33% higher.
Coupa is a technology platform providing solutions that help businesses improve cost controls, compliance and anything related to spending management. Companies spent more on digitizing and optimizing back-office operations during the pandemic.
Second-quarter total revenue rose 42% on-year to $179.2 million. Adjusted profit per share was 26 cents. Both revenue and EPS beat estimates.