Coupa Software (COUP 36.00, -0.38) has retreated 1.0% despite better than expected quarterly results and upbeat guidance.
The provider of cloud-based spend management software reported a slimmer than expected first quarter loss of $0.09 per share on a 40.8% year-over-year jump in revenue to $41.10 million, which also exceeded expectations.
Subscription services revenue jumped 40.6% to $35.66 million while segment gross margin declined to 22.42% from 23.85%. Professional services and other revenue rose 43.6% to $5.47 million while segment gross margin improved notably, rising to -0.01% from -56.60% one year ago.
Coupa Software enjoyed sharp revenue growth during the first quarter, winning customers like Scotiabank, Pearson, and Eurofins International Support Services, among others. In addition to securing new customers, the company acquired Trade Extensions—a provider of an optimization platform for sourcing projects in areas like transportation, logistics, production planning, and supply chain design.
Looking ahead, the company expects that its second quarter loss will be between $0.20 and $0.18 per share on revenue between $41.30 million and $41.80 million. For the full year, Coupa Software expects a loss between $0.53 and $0.49 per share on revenue between $172 billion and $175 million. Coupa's guidance is ahead of current market expectations.