Coupa Software (COUP 24.49, -2.57) has surrendered 9.5% despite beating earnings expectations and issuing above-consensus guidance for the fiscal year in its second post-IPO report. Shares of Coupa Software have shown notable weakness as of late, having spent the past week in a steady retreat. Including today's decline, the stock is down 2.1% so far in 2017. This leaves shares 26.4% below their post-IPO peak from early October, and just above the record low from the start of 2017.
The company, which sells cloud-based spending management software, reported an above-consensus fourth quarter loss of $0.05 per share on a 44.2% year-over-year spike in revenue to $38.02 million, which was also ahead of market expectations. In addition to beating estimates, Coupa's results exceeded its own guidance for a loss between $0.19 and $0.16 per share on revenue between $35.50 million to $36.00 million.
Subscription services revenue jumped 45.3% to $33.83 million while Professional services and other revenue spiked 36.0% to $4.18 million. Gross margin improved to 70.03% from 62.30% one year ago.
The software company ended the year with 535 customers after adding major customers like Caterpillar and Paul HARTMANN during the fourth quarter. Coupa's management was happy with continued strength in geographical areas like North America and Europe, and noted that it is gaining traction in Asia-Pacific and Latin America.
The company has an upbeat outlook, expecting that first quarter results will show a loss between $0.17 and $0.12 per share on revenue between $38.00 million and $38.50 million. For the full year, the company expects to record a loss between $0.58 and $0.53 per share on revenue between $167 million and $170 million. All the guidance ranges are above current market expectations.