Rising earnings have doubled Coupa Software’s share price since late 2017

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Coupa Software Inc. (NASDAQ: COUP) The stock price rose more than 2x from $31 in 2017 to about $65 today, mainly due to favorable changes in sales. During this period, the company saw a strong 300% increase in revenue and despite an increase in the number of outstanding shares, revenue per share increased by almost 200%. In addition, the S&P 500 returned around 55% over the same period, meaning Coupa stocks have strongly outperformed the broader markets since the end of 2017.

In our interactive dashboard, Why Coupa Software Stock Moves: COUP stock up 107% since 2017we break down the factors behind this movement.

Coupa’s total revenue grew 304% from $186.8 million in FY 2018 to $754.7 million on an LTM basis

  • Coupa’s total revenue has steadily increased from $186.8 million in FY ’18 to $725.3 million in FY ’22, and currently stands even higher at $754.7 million on an LTM basis (Coupa’s fiscal year ends in January).
  • Coupa software
    COUP
    is a global technology platform for Business Spend Management, operating in just one reporting segment: the cloud platform, which accounts for 100% of the company’s revenue.
  • For more information on Coupa’s earnings and peer comparison, see: Coupa Software Revenue Comparison

Revenue per share increased 183% from $3.54 in FY 2018 to $10.00 currently

  • Coupa’s revenue increased from $186.8 million in 2018 to $754.7 million currently, while the number of outstanding shares increased from 52.8 million in 2018 to approximately 75.4 million currently.
  • As a result, the RPS has risen from $3.54 in FY ’18 to $10.00 currently.

Price-to-sale (P/S) multiple for Coupa rose sharply from 12.6x in 2017 to almost 66x at the end of 2020, but has now declined to 6.5x, almost half of what it was at the end of 2017

  • Coupa’s P/S multiple rose sharply to 65.7x at the end of 2020, reflecting investor expectations of continued revenue growth amid rising demand for the company’s services.
  • Due to the current geopolitical tensions and heightened economic uncertainty weighing on broader markets, the P/S multiple has receded and currently stands at around 6.5x.
  • For more information on the company’s stock returns and comparison with peers, see: Coupa Software Stock Return Comparison.

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