Coupa Software Shares Plunge More Than 25% Afterhours on Weak Q1, FY23 Outlook

Coupa Software Inc COUP reported fourth-quarter revenue growth of 18.2% year-over-year to $193.3 million, beating the consensus of $185.63 million.
Subscription revenues were $173.0 million, an increase of 28% Y/Y. Calculated billings were $318.5 million (+18% Y/Y) and +25% Y/Y on an organic basis.
Adjusted EPS improved to $0.19 from $0.17, beating the consensus of $0.05.
The gross margin expanded by 903 bps to 60.3%.
Loss from operation reduced to $(59.84) million, from $(95.36) million.
The company generated cash from operating activities of $169.09 million in FY22, compared to $78.2 million a year ago.
1Q23 Outlook: Coupa Software expects total revenues of $189 million to $191 million vs. $196.1 million consensus, Subscription revenues of $171 million to $173 million, and professional services and other revenues of ~$18 million.
It also expects Non-GAAP income from operations of $6 million to $8 million; and adjusted EPS of $0.03 to $0.06 per share vs. $0.05 consensus.
FY23 Outlook: Coupa Software expects total revenues of $836 million to $840 million vs. $877.5 million consensus, subscription revenues of $756 million to $760 million, and professional services and other revenues of ~$80 million.
It expects Non-GAAP income from operations of $25 million to $29 million; and adjusted EPS of $0.15 to $0.19 per share vs. $0.74 consensus.
Price Action: COUP shares are trading lower by 26.4% at $66 during the after-hour session on Monday.