Coupa Software Incorporated (NASDAQ:COUP) reported its Q4 results in mid-March, with adjusted EPS of $0.19, compared to the consensus of $5.50, and revenue of $193.3 million, compared to the consensus of 186.5 million. As a result, the shares dropped around 20% during the next several days, but have recovered since then.

The company’s Q1/23 guidance came worse than the analysts’ expectations. The company anticipates EPS in the range of $0.03-$0.06, compared to the consensus of $5.70, and revenue in the range of $189 million-$191 million, compared to the consensus of $196.5 million.

Analysts at Berenberg Bank lowered their price target on the company’s shares to $95 from $260 due to weaker guidance. For the full 2023-year, the company expects revenue growth of 16% (vs. the previous consensus of 22%) and for margins to contract to 3%. According to the analysts, this is likely due to management’s pivot to contract out services, cautiousness on the current macro environment, tougher billings comps, and a meaningful ramp-up in sales/R&D investments.