Billion-Dollar Unicorns: Coupa Close To 52-Week High

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It has been a year since Billion Dollar Unicorn Coupa (Nasdaq: COUP) listed successfully on the stock exchange. However, its stock soon tumbled on concerns of continuing losses. It has since recovered. 

Coupa’s Background

San Mateo-based Coupa was founded in 2006 by former Oracle executives Noah Eisner and Dave Stephens. While setting Oracle’s iProcure product line, they wondered why the way corporates buy should be any different from the way people buy at home. This led them to set up Coupa Procurement and create a service that simplifies the purchase process as if corporates were shopping at Amazon.

Coupa went on to build a user-centric, unified spend management platform that gives organizations a 360-degree view on all company spending. Its unified solutions span multiple functions including procurement, invoicing, expense management, sourcing, inventory, contract management, budgeting, and analytics.

Coupa’s biggest advantage lies in its ability to successfully integrate with multiple ERP suites including SAP, Oracle, NetSuite, and GreatPlains. Its applications are able to provide spend management functions within the ERP itself. It can integrate to one or many ERPs through its open API and connectors within a short time and allows enterprise users to feed data directly into the system from their mobile phones. But Coupa will have to look out for increasing competition from SAP and even Workday (WDAY).

Coupa’s Financials

In the recent second quarter, Coupa reported revenue of $44.6 million, up 43%. GAAP net loss was $13.7 million or $0.26 per share compared to a loss of $12.4 million or $2.13 per share last year. Non GAAP net loss was $5.4 million or $0.10 per share, beating analyst estimates of a loss of $0.19 per share on revenue of $41.64 million.

By segment, subscription services revenue increased 43% to $39.8 million and professional services revenue increased 43% to$4.8 million.

Cash and cash equivalents were $208.3 million as of July 31, 2017. Total deferred revenue was $95.8 million as of July 31, 2017.

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More investigation and analysis of Unicorn companies can be found in my latest Entrepreneur Journeys book, Billion Dollar ...

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