Analyst Note
| Julie Bhusal Sharma |Coupa reported a well-rounded earnings beat in its second-quarter results, while raising its outlook for the year. Despite macroeconomic concerns leading up to results, Coupa’s net retention rate remained very strong in the 110% to 112% range—which we believe was unfazed due to the strength of the company’s switching costs which is behind our narrow moat rating. While guidance was raised, Coupa was careful to note that it still bakes in an uncertain back half of the year—specifically concerning lengthening sales cycles in Europe, which Coupa is already seeing.