Why Are Coupa Software Shares Trading Higher Today?

Coupa Software Inc COUP reported Q2 revenue of $179.2 million, up 42% year-on-year, beating the consensus of $162.96 million. Subscription revenues jumped 40% Y/Y to $156.2 million.
The company sees Q3 revenue between $177 million - $178 million above the consensus of $168.77 million. It sees adjusted EPS between $0.01 - $0.03 above the consensus loss of $(0.08).
Analysts bumped their price targets in appreciation of the earnings performance and guidance of the cloud-based business spending management platform.
Piper Sandler analyst Clarke Jeffries maintained an Overweight rating for Coupa and raised the PT from $295 to $325, implying a 23.4% upside.
Oppenheimer analyst Brian Schwartz raised the PT to $300 from $260, signifying a 13.9% upside, and reiterated an Outperform.
Coupa reported "strong" fiscal Q2 results as a new business more than doubled once again, and commentary suggests enterprise momentum with strength in seven-figure deals, Schwartz noted.
Further, its revenue guidance was raised well above the Q2 beat and organic billings reaccelerated to 30% Y/Y growth in the quarter. He believes the combination of an expanded product portfolio and "strong" execution will drive continued share gains for Coupa in spend management.
Price Action: COUP shares traded higher by 5.26% at $277.19 in the premarket session on the last check Wednesday.