What happened
Shares of Coupa Software (COUP) didn't have a fine start to this week. After the tech company published its latest quarterly results Monday morning, investors traded out of its stock, leaving it with a nearly 10% decline on the day.
So what
Despite notching new records in key annual fundamentals for its fiscal 2022, Coupa fell short of expectations with its fourth-quarter figures. For the period, the company posted just over $193 million in revenue, which was an 18% improvement over the fourth quarter of fiscal 2021. That was on billings that rose at the same rate, to nearly $319 million.
On the bottom line, the company's net income rose to $14.4 million, or $0.19 per share, from the year-ago result of $13.0 million.
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Both figures topped analyst expectations. On average, prognosticators following the tech stock were anticipating just under $186 million on the top line and per-share adjusted earnings of only $0.05.
In its earnings release, Coupa quoted its CEO Rob Bernshteyn as saying that the company's "growth was driven by strength in our core business, coupled with momentum in our integration of acquired assets."
Now what
Coupa also proffered guidance for the first quarter and the entirety of fiscal 2023, and this was the main factor in the stock's Monday sell-off. For the former period, the company believes it will post $189 million to $191 million in revenue, but the average analyst estimate is slightly over $196 million. However, its forecast for $0.03 to $0.06 in per-share earnings conforms with the collective analyst estimate of $0.05.
For the full year, those ranges are $836 million to $840 million for revenue and $0.15 to $0.19 per share for earnings. Both of those figures miss the respective prognosticator expectations of $877.5 million and $0.74, respectively.
