Skip to Content

Coupa Software Inc COUP

Rating as of

Morningstar’s Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Coupa’s Investor Day Highlights More Moderate Long-Term Profitability; FVE Down to $225

Julie Bhusal Sharma Equity Analyst

Analyst Note

| Julie Bhusal Sharma |

On July 15 narrow-moat Coupa hosted its investor day which highlighted progression toward a comprehensive, synergistic solution that leverages AI technology and focuses on maximum value creation for customers. Core to this concept is the progression of Coupa Pay, Coupa Community.AI, and business spend management, or BSM, marketplace--all in addition to the transactional core behind Coupa’s solutions. Despite the overwhelmingly positive strategic initiatives and addressable market expansion, management stayed distant from setting financial targets with matching optimism. Apart from a slightly raised FCF outlook, all midterm margin targets stayed flat from 2019 midterm targets, when we’d hoped for at least marginal improvement given the two years’ time since the last midterm guide and the fact that Coupa is steadily realizing economies of scale and benefiting from leverage. Even more important was the fact that Coupa’s long-term non-GAAP operating margin guide between 25% and 30% came under our previous terminal non-GAAP operating margin estimate of 32%. As we consider the abundant growth opportunities ahead for Coupa’s increasingly comprehensive BSM solution moderated by weaker operating leverage than we had previously forecast, we are lowering our fair value estimate to $225 from $252. With the stock trading around $226 at close, we view shares as fairly valued. 

Read Full Analysis

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 Apr 30, 2021
Fiscal Year End Jan 31, 2022
Stock Type Speculative Growth
Employees 2,615

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.