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Coupa Software Inc COUP

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Coupa’s App Marketplace Launch Expected to Accelerate BSM Platform’s Value; FVE Raised to $232

Julie Bhusal Sharma Equity Analyst

Analyst Note

| Julie Bhusal Sharma |

Narrow-moat Coupa reported strong second-quarter results that came in well ahead of management’s and our revenue and non-GAAP EPS expectations, and raised its full-year fiscal 2022 outlook. We are raising our fair value estimate for Coupa to $232 from $225 per share due to accelerating enterprise-level customer engagement and the increasing relevance of Coupa solutions arising from pandemic-induced operational uncertainty. On the latter point, Coupa’s Supply Chain Design and Planning solution, formerly Llamasoft, combined with AI and digital twin technology, has proven instrumental in allowing for this operational agility. We view the quarter’s launch of Coupa App Marketplace, which enables a greater capture of the sizeable addressable market through a self-reinforcing partner ecosystem, as highly value-accretive to the overall business spend management, or BSM, platform, and expect the increasingly comprehensive BSM solution to continue to expand in use-case applicability. With shares trading around $279 in the aftermarket, we view Coupa as overvalued.

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Company Profile

Business Description

Coupa Software is a cloud-based, business spending management platform that provides companies with more control and visibility into how they spend money. Since it was founded in 2006, Coupa has connected buyers with suppliers and helped buyers save money by improving procurement, expense management, invoice processing, and payments. The company is headquartered in San Mateo, California, and went public in October 2016.

1855 S. Grant Street
San Mateo, CA, 94402
T +1 650 931-3200
Sector Technology
Industry Software - Application
Most Recent Earnings Jul 31, 2021
Fiscal Year End Jan 31, 2022
Stock Type Speculative Growth
Employees 2,615