Before discussing its results in more detail, we first wanted to provide some background on the company. 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.
Now, circling back to its Q2 results, loss per share came in at ($0.10), easily topping the (0.19) Capital IQ Consensus. As noted above, COUP has put together a winning streak in terms of beating estimates. But, not only is it consistently beating expectations, but, it is doing so rather easily. The last four EPS beats are as follows: $0.09 in 2Q18, $0.05 in 1Q18, $0.12 in 4Q17, and $0.25 in 3Q16.
On the topline, revenue spiked by 43% to $44.6 million, also easily beating the $41.6 million consensus. Impressively, COUP's revenue growth has remained very firm since it went public, vacillating in the 41-55% range. Total billings, which is a good gauge of recent demand, was also strong, up 36% on a trailing 12 month basis.
Driving the strong growth was the addition of a couple significant wins, including new contracts with Unilever, Glencore, QuikTrip, and FlexTrade Systems, among others.
COUP's other key metrics, outside of the headline numbers, also continue to show improvement. For instance, Non-GAAP gross margin increased to 71% from 65%, despite the fact that it continues to invest in professional services and support. Also, free cash flow was a positive $8.1 million, putting the company in solid financial condition with $208 million in cash.
With the strong results and bullish outlook, COUP raised its FY18 EPS and revenue guidance to ($0.50)-($0.48) from ($0.53)-($0.49), and $177-$179 million from $172-$175 million, respectively. During the conference call last night, management stated that it has only just begun to scratch the surface of a massive spend management market. With its upcoming launch of R19 (it's newest version of its platform) and with it continuing to look for attractive acquisitions, COUP believes it is in solid position to capitalize on this large and growing market.