Business payments software firm Coupa Software Inc. is flying high today after posting solid second-quarter financial results.

It also forecast a profit for the next quarter that goes beyond analyst’s expectations, sending its stock soaring in extended trading.

The company reported earnings before certain costs such as stock compensation of 20 cents per share, beating Wall Street’s forecast of a nine-cent-per-share profit. Revenue for the period rose 42% from a year ago, to $211.1 million, ahead of Wall Street’s target of $203.5 million. Despite the impressive results, the company still failed to turn a profit, reporting a net loss of $75.3 million for the period.

Coupa sells payment management software that covers things such as procurement, invoicing, sourcing and business expenses. Its offering sits alongside enterprise resource planning software in the larger financial information technology stack.

Benefits for customers include faster approvals routing, better invoice and purchase order matching, and centralized electronic payment routing to suppliers. Coupa’s revenues suffered somewhat during the pandemic because the inability to travel meant that many enterprises cut back on their business expenses. But with business travel now back in vogue, Coupa’s platform is becoming relevant once more.

Coupa Chairman and Chief Executive Rob Bernshteyn (pictured) hailed the company’s “fantastic quarter,” noting that it delivered record revenue and strong calculated billings growth. “Digitizing and optimizing back-office operations is being prioritized as a key strategic initiative for our customers, and the Coupa platform is critical for their ability to develop agility and adaptability in these rapidly changing times,” he added.

For the current quarter, Coupa said it’s expecting earnings of between eight and 10 cents per share, ahead of Wall Street’s forecast of a six-cent-per-share profit. In terms of revenue, it offered a forecast of between $211 million and $214 million, just shy of the consensus estimate of $214.6 million.

For the full year, Coupa said it’s looking for earnings of between 37 and 44 cents per share on revenue of $838 million to $844 million. Wall Street’s guidance calls for full-year earnings of just 26 cents per share on sales of $840.3 million.

Investors clearly liked what they saw, as Coupa’s stock jumped more than 13% after the report, having slipped 2% earlier in the day.

Photo: SiliconANGLE