Afternoon Coffee: Coupa Shares Rise on Q4 Revenue Beat, Volkswagen Challenges Tesla for Electric Car Dominance


Coupa reported earlier this week a year-over-year revenue increase of 41% in its fourth quarter earnings, to $53.8 million, according to Investor’s Business Daily. That topped analyst expectations of $49 million in sales, as well as projections for profits, which topped 2 cents per share rather than an expected loss of 15 cents per share.

“We finished fiscal 2018 by delivering the strongest performance in our company’s history, generating 40% revenue growth and 8% free cash flow margins for the year, and we were also non-GAAP net income positive for the first time in Q4,” said Rob Bernshteyn, CEO of Coupa. “We increased Cumulative Spend Under Management from $365 billion to $680 billion in fiscal 2018 and expect to surpass $1 trillion in fiscal 2019. We continue to execute toward our business objectives and are focused on capturing the large and growing market opportunity that lies before us.”

Electrified Volkswagen 

Volkswagen said Tuesday it plans to build at least 16 electric vehicle plants by 2025 in Europe, China and the U.S., issuing a direct threat to Tesla, the Wall Street Journal reports. The German auto giant aims to sell three million electric vehicles a year by 2025, using its established supply chain and manufacturing expertise to establish dominant in the increasingly important EV market.

Vanilla Frenzy

Dwindling supplies of vanilla are causing prices for the staple food ingredient to rise considerably — 20 times as much as it did a few years ago, the Globe and Mail reports. Behind the sticker shock is the vanilla supply’s heavy concentration in Madagascar, where a cyclone last year devastated crops and cut projected harvests by a third.

Consumer Prices

And finally, an economic update: U.S. consumer prices rose 0.2% in February, a gradual increase that has for now quelled fears of more rapid inflation, according to Reuters. Inflation is still consistently undershooting the U.S. Federal Reserve’s target rates, meaning the central bank will likely continue with its gradual approach to raising the federal funds rate.

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