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Coupa Software (Coupa Software) Gross Margin % : 59.64% (As of Oct. 2022)


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What is Coupa Software Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Coupa Software's Gross Profit for the three months ended in Oct. 2022 was $129.6 Mil. Coupa Software's Revenue for the three months ended in Oct. 2022 was $217.3 Mil. Therefore, Coupa Software's Gross Margin % for the quarter that ended in Oct. 2022 was 59.64%.

Warning Sign:

Coupa Software Inc gross margin has been in long-term decline. The average rate of decline per year is -3.3%.


The historical rank and industry rank for Coupa Software's Gross Margin % or its related term are showing as below:

COUP' s Gross Margin % Range Over the Past 10 Years
Min: 56.81   Med: 63.73   Max: 67.95
Current: 59.84


During the past 8 years, the highest Gross Margin % of Coupa Software was 67.95%. The lowest was 56.81%. And the median was 63.73%.

COUP's Gross Margin % is not ranked
in the Software industry.
Industry Median: 41.73 vs COUP: 59.84

Coupa Software had a gross margin of 59.64% for the quarter that ended in Oct. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Coupa Software was -3.30% per year.


Coupa Software Gross Margin % Historical Data

The historical data trend for Coupa Software's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Coupa Software Gross Margin % Chart

Coupa Software Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Gross Margin %
Get a 7-Day Free Trial 67.93 67.95 64.28 59.07 56.81

Coupa Software Quarterly Data
Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 58.23 60.34 58.84 60.54 59.64

Competitive Comparison of Coupa Software's Gross Margin %

For the Software - Application subindustry, Coupa Software's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Coupa Software's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Coupa Software's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Coupa Software's Gross Margin % falls into.



Coupa Software Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Coupa Software's Gross Margin for the fiscal year that ended in Jan. 2022 is calculated as

Gross Margin % (A: Jan. 2022 )=Gross Profit (A: Jan. 2022 ) / Revenue (A: Jan. 2022 )
=412.1 / 725.289
=(Revenue - Cost of Goods Sold) / Revenue
=(725.289 - 313.236) / 725.289
=56.81 %

Coupa Software's Gross Margin for the quarter that ended in Oct. 2022 is calculated as


Gross Margin % (Q: Oct. 2022 )=Gross Profit (Q: Oct. 2022 ) / Revenue (Q: Oct. 2022 )
=129.6 / 217.336
=(Revenue - Cost of Goods Sold) / Revenue
=(217.336 - 87.716) / 217.336
=59.64 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Coupa Software  (NAS:COUP) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Coupa Software had a gross margin of 59.64% for the quarter that ended in Oct. 2022 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Coupa Software Gross Margin % Related Terms

Thank you for viewing the detailed overview of Coupa Software's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Coupa Software (Coupa Software) Business Description

Traded in Other Exchanges
N/A
Address
1855 S. Grant Street, San Mateo, CA, USA, 94402
Coupa Software is a cloud-based provider of business spending management solutions. Its BSM platform provides visibility into all spending, allowing companies to gain control over their spending, optimize their supplier network and supply chains, and manage liquidity. The platform's transactional core consists of procurement, invoicing, expense management, and payment solutions, while supporting modules ranging from strategic sourcing solutions to supply chain design and planning solutions round out the comprehensive spending management ecosystem.
Executives
Scott Thompson director C/O YAHOO! INC., 701 FIRST AVENUE, MS 1GA-5, SUNNYVALE CA 94089
Veenendaal Frank Van director C/O SALESFORCE.COM, 1 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94105
Roger S Siboni director 1900 SOUTH NORFOLK STREET, SAN MATEO CA 94403
Kanika Soni director C/O TRIPADVISOR INC., 400 1ST AVENUE, NEEDHAM MA 02494
Henry Tayloe Stansbury director C/O COUPA SOFTWARE INC., 1855 S. GRANT STREET, SAN MATEO CA 94402
Robert Bernshteyn director, officer: Chief Executive Officer C/O SUCCESSFACTORS, INC., 1500 FASHION, ISLAND BLVD., SUITE 300, SAN MATEO CA 94404
Anthony D Tiscornia officer: Chief Financial Officer C/O COUPA SOFTWARE INCORPORATED, 1855 S. GRANT STREET, SAN MATEO CA 94402
Michelle Brennan director 1855 S. GRANT STREET, SAN MATEO CA 94402
Maurizio Baratta officer: Chief Accounting Officer GUNDERSON DETTMER, 1855 SOUTH GRANT STREET, SAN MATEO CA 94402
Robert Glenn officer: EVP of Global Sales 1855 S. GRANT STREET, SAN MATEO CA 94402
Mark Riggs officer: Chief Customer Officer 1855 S. GRANT STREET, SAN MATEO CA 94402
Todd R Ford officer: Chief Financial Officer 3457 BRYANT STREET, PALO ALTO CA 94306
Campbell Leslie C.g. director C/O COUPA SOFTWARE INC., 1855 S. GRANT STREET, SAN MATEO CA 94402
Steven M Winter officer: Chief Revenue Officer C/O COUPA SOFTWARE INC., 1855 S. GRANT STREET, SAN MATEO CA 94402
Ravi Thakur officer: Senior Vice Pres., Services C/O COUPA SOFTWARE INC., 1855 S. GRANT STREET, SAN MATEO CA 94402