Coupa Software (COUP) Shares Plunge 27% on Disappointing 2023 Outlook

Coupa Software (NASDAQ: COUP) shares dropped more than 27% after-hours following the company’s disappointing 2023 outlook, despite better-than-expected Q4 results.

Q4 EPS came in at $0.19, better than the consensus of $0.05, and revenue at $193.3 million (up 18% year-over-year) compared to the consensus of $185.68 million. Subscription revenues grew 28% year-over-year to $173.0 million, and calculated billings grew 18% year-over-year to $318.5 million.

According to Rob Bernshteyn, Chairman and CEO of Coupa, the company grew new business in excess of 60% during fiscal 2022, defined as new recurring revenue from new customer logos and add-on transactions. The growth was driven by strength in the company’s core business, coupled with momentum in its integration of acquired assets.

The company provided its Q1/23 guidance, expecting EPS in the range of $0.03-$0.06, compared to the consensus estimate of $0.05, and revenue in the range of $189-$191 million, compared to the consensus estimate of $196.1 million.

For the full 2023-year, the company expects EPS in the range of $0.15-$0.19, worse than the consensus of $0.74, and revenue of $836-$840 million, compared to the consensus of $877.5 million.

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