By Senad Karaahmetovic

Premarket trading saw Coupa Software shares rise almost 1% after the tech company raised its full year EPS guidance. This exceeded the consensus estimates.

The Q1 adjusted earnings per share (EPS) of the company was 8c. This is an increase of 7c from the previous year and more than the analyst consensus estimate of 5.1c. Revenue was $196.4 Million, which is 18% higher YoY than analyst expectations of $190.5million.

COUP anticipates that adjusted earnings per share will be 7c-10c for Q2, beating consensus estimates of 5.2c. Analysts were expecting revenue to be between $202 million-$205 million for the second quarter. COUP expects revenues of $205 million to $205 million.

Coupa Software anticipates an adjusted EPS of between 21c and 27c for the entire fiscal 2023. This is up from the 15c-19c range that analysts had been estimating at 18c. Coupa Software expects FY revenues to range from $838 million up to $843million, an increase of 836 million to $804 million, as opposed to the $839 million.

Piper Sandler analyst Brent A. Bracelin hiked the price target to $85.00 per share from $70.00 on “solid” results.

“We were encouraged by a solid start to the new fiscal year with 27% subscription revenue growth on a $5M revenue beat with free cash flow margins of 23%. That said, commentary that the company did see some deal slippage in Europe late in the quarter does heighten execution risks and limit confidence in the sustainability of subscription revenue growth that could moderate below 20% in the 2H,” Bracelin said in a client note.

Still, the analyst reiterated a Neutral rating amid a “lack of confidence in the timing of a sustainable rebound given macro uncertainty, 40% international exposure, and an outlook implying that subscription growth could moderate below 20% in the 2H.”

Mizuho analyst Siti Panigrahi also reiterated a Neutral rating and described the results as “solid.”

“FQ1 results suggest Coupa continues to benefit from improving enterprise apps spending, but a softening demand environment contributes to uncertainty in FY23 guide. Thus, although encouraged by the Coupa BSM platform’s leadership position and ability to gain share, we await more evidence of its growth prospects/margin expansion,” the analyst wrote to clients.