According to a recent market report, the Business spend software market is expected to grow at a CAGR of 10.85% to reach $17.79 billion by 2027. Coupa (Nasdaq: COUP), a leading player in the market, recently reported its quarterly results that continue to surpass market expectations.

Coupa’s Financials

Revenues for the second quarter grew 42% to $179.2 million, ahead of the market’s estimates of $162.98 million. GAAP net loss was $91.5 million, compared with a net loss of $43.1 million a year ago. Non-GAAP net income was $0.26 per share, compared to a net income of $0.21 per share a year ago, and analyst estimates of a loss of $0.06 per share.

By segment, subscription services revenues increased 40% to $156.2 million and professional services revenues grew 60.5% to $23.02 million.

For the third quarter, the company expects revenues of $177-$178 million and non-GAAP net income of $0.01-$0.03 per share. It expects to end the year with revenues of $706-$708 million and net loss of $0.27-$0.29 per share. The market was looking for Q3 revenues of $178.12 million with an EPS of $0.02 and revenues of $708.68 million for the year with an EPS of $0.27.

Coupa’s PaaS Moves

Coupa is expanding its PaaS offering. It recently launched its new Coupa App Marketplace, providing customers with an easier and smarter way to extend the power of the Business Spend Management (BSM) platform. The Coupa App Marketplace is among the first marketplaces in the comprehensive BSM space to help extend a customer’s existing tech stack and deepen their BSM capabilities so they can share information, automate workflows, and conduct key tasks. It connects businesses with certified, pre-built solutions and helps create a seamless way to tap into a global community of BSM partners. Businesses will have the ability to develop genuine partnerships that enable them to thrive in their environment.

As is typical to a PaaS offering, the marketplace offers a go-to-market opportunity for Coupa’s community of partners to thrive and innovate in the BSM space. It already features a growing range of apps for a wide range of business functions and includes developers like Kofax, The Smart Cube, EcoVadis, and SecurityScorecard. The apps on the marketplace can integrate with the Coupa Platform either as App Connectors or as Embedded Apps. The service offers two key categories of apps – Enterprise app integrations that connect its core BSM platform to other enterprise technology systems and BSM Extension Apps that are specialized apps to enhance the BSM capabilities on Coupa’s platform. It would be interesting to see if Coupa will share some metrics on the performance of this marketplace.

Coupa’s stock is trading at $243.4 with a market capitalization of $18 billion. The stock hit a 52-week high of $377.04 in February and a 52-week low of $203.51 in August.