Specifically, the company reported EPS of $0.02, crushing the ($0.15) Capital IQ consensus. Not only was the $0.17 beat its biggest beat in its history, but, this was also the first time COUP has posted a profitable quarter on a Non-GAAP basis. Additionally, topline growth accelerated to 41.5% with revenue coming in at $53.8 million, also easily ahead of the $48.6 million consensus. The 41.5% jump in revenue was its best performance since 3Q16 (its first quarterly report as a public company) when revenue growth hit 55%.
In addition to the upside Q4 results, COUP also issued upside FY19 guidance, forecasting EPS of ($0.28)-($0.23) vs. the ($0.29) consensus on revenue of $227-$230 million vs. the $226.8 million consensus.
Before diving further into the quarterly report and what drove the results, we wanted to provide some background on the business:
COUP is a developer of a spend management platform that connects organizations with over 2 million global suppliers. Simply stated, its software helps provide greater clarity and control over how companies spend money. The core of its platform consists of procurement, invoicing and expense management modules that form its transactional engine and capture a company's spend. Its platform also offers supporting modules like sourcing, analytics, contract management, supplier management, inventory management, that help companies further manage their spend. And lastly, through its "Coupa Open Business Network", suppliers can easily interact with buyers electronically, thereby reducing paper and improving operating efficiencies.
From an analytical standpoint, COUP's platform provides a spending analysis dashboard with reports that deliver real-time analytical insights that help businesses identify problems and make better spending decisions. As a result, managers are better able to prevent excessive spending and reduce spend by realizing efficiencies and cost savings associated with strategic sourcing.
COUP has a deep partner ecosystem, including system integrators, implementation partners, resellers, and technology partners. A few of the most well-known names working with COUP are KPMG, Deloitte, Accenture, IBM, PwC, and Wipro. In regards to its customers, the company has more than 1.5 million licensed users among its base of over 460 total customers.
Rewinding back to its Q4 results, what really drove the upside results is that it increased cumulative spend under management to $680 billion from $365 billion. During the quarter, COUP added several significant customers including Lululemon, Qatar Airways, Farmers Group, and American Water Works.
Another catalyst for the company is that in Q4, it launched its most recent major release, R20. This product addresses supply chain risk through community intelligence, and helps manage complex services spending issues. Overall, the new R20 released added more than 50 new features across the platform.
And finally, COUP has also supported its organic growth with acquisitions. Namely, in December, it announced its acquisition of Simeno, a provider of an advanced catalog management platform. While providing COUP with another product, it also expands its presence in key German and Suisse markets.