Coupa Stock Slumps. Analysts Note Slowing Organic Growth.

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Shares of Coupa Software fell on Tuesday after the expense-management software company reported third-quarter earnings and sales that topped analysts’ estimates, but growth disappointed.

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The stock fell 11% to $154.90 in premarket trading. It has fallen by more than 48% in 2021.

Coupa reported third-quarter adjusted earnings of 31 cents a share on revenue of $185.8 million. A year ago, the company reported an adjusted profit of 18 cents per share on revenue of $133 million.

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the company told Billed $193 million, a 38% increase from a year ago. Membership revenue increased 40% year over year to $164.7 million.

Analysts at RBC Capital Markets, which rates Coupa’s shares in sector performance, lowered their price target on the stock from $270 to $155.

RBC said Coupa reported a “mixed” third quarter, adding that “there was a significant slowdown in organic growth and F4Q billing guidance was below consensus.”

“Overall, both the F3Q revenue beat and the F4Q guide were light, although management was bullish on strong new business, demand trends and momentum on coupon pay,” RBC said in a note. “Despite the pullback in the stock, we remain on edge given the lack of near-term catalysts.”

KeyBanc Capital Markets rated Coupa’s shares overweight, but also lowered their price target from $300 to $225. Analysts said they lowered the price target to “better reflect market conditions”.

Coupa said it expects fourth-quarter revenue of $185 million to $186 million, and adjusted earnings of 3 cents to 5 cents per share. Membership revenue was estimated to be $166 million to $167 million.

Write to Joe Woelfel at [email protected]

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