Coupa Announces the Coupa Business Spend Index, a Leading Indicator of Economic Growth
25 April 2019 - 11:28PM
Business Wire
Despite market uncertainty, business spend
sentiment is increasing in aggregate across industries and within
retail and financial services
Coupa Software (NASDAQ:COUP), a leader in business spend
management (BSM), today announced the launch of the Coupa
Business Spend Index (BSI), a leading indicator of economic
growth based on current business spending decisions of hundreds of
businesses. The inaugural report reveals that despite
uncertainty in the markets, businesses appear to be growing
increasingly optimistic about the growth of the economy over
the next three-to-six months.
The Coupa BSI is a 100% behavior-based index based on three key
spend factors at a business: (1) average spend per person, (2)
average time to approve spend decisions, and (3) average rate of
spend approval/rejection. It analyzes spend data in the Coupa
BSM Platform, which has cumulatively processed more than $1
trillion of business spending, to measure confidence around
economic growth at an aggregate level, as well as an industry level
within financial services, health and life sciences, high tech,
manufacturing, and retail. The Coupa BSI is a unique window into
line managers’ thinking, at scale, regarding economic growth
prospects and the downstream implications on the economy.
“One of the most exciting values we are now able to deliver from
our aggregate dataset of over $1 trillion of cumulative spend data
is empowering business leaders with visibility into future economic
conditions so that they can better position themselves for growth
and profitability,” said Rob Bernshteyn, chairman and
chief executive officer at Coupa. “The Coupa BSI is grounded in
the power of Community Intelligence and Coupa’s focus on delivering
meaningful insights that can help executives drive strategic
business decisions.”
Based on spend behavior in Q1 2019, the Coupa BSI revealed an
overall index value of 105.3, an increase of 16.2% from Q4 2018
(90.6), indicating that businesses are collectively growing more
optimistic about the growth of the economy over the next
three-to-six months.
Additional industry-specific insights include:
- Retail (Significantly Above
Trend): Business spend sentiment among retailers continues to
be strong with the Coupa BSI for Retail increasing from Q4 2018 to
Q1 2019, driven mainly by a nearly 44% increase in average spend
per person. The Coupa BSI for Retail increased more significantly
from Q3 2018 (+18.4%), reflecting a positive growth outlook over
the next three-to-six months.
- Financial Services (Above
Trend): Companies show more confidence about potential growth
in the next three-to-six months vs. the prior quarter based on data
in the Coupa BSI for Financial Services. This was mainly driven by
a nearly 63% acceleration in time to approve spend decisions.
- Health and Life Sciences (Above
Trend): In the Coupa BSI for Health and Life Sciences, business
spend sentiment increased 4.1% from Q4 2018 to Q1 2019 (and 10%
from Q3 2018). This was driven mainly by an 8% acceleration in time
to approve spend decisions.
- Manufacturing (Significantly Below
Trend, but Improving): Business spend sentiment among
manufacturing companies continues to be significantly weaker in Q1
2019, as it had been in the second half of 2018, perhaps
exacerbated by tariffs imposed on aluminum and steel imports. The
Coupa BSI for Manufacturing indicates that business spend sentiment
may have bottomed out in Q4 2018 (84.7) with a slight improvement
of 5.1% in Q1 2019 (89.0).
Hundreds of companies around the world use the Coupa BSM
Platform to gain the visibility and control they need to spend
smarter, simpler, and safer. The Coupa BSM Platform offers a
comprehensive and open approach that enables businesses to manage
all their spend, including procurement, invoicing, expenses,
payments, and more, in one place.
At the heart of the Coupa BSM Platform is Coupa Community
Intelligence, an AI-powered engine that objectively analyzes the
transactional spend data flowing through the Coupa BSM Platform and
prescribes instant insights that help companies mitigate risk,
remain compliant, identify smarter spending opportunities, and
improve process efficiencies across all their business spend.
To view the Q1 2019 Coupa BSI in its entirety, visit
https://www.coupa.com/BSI
The Coupa BSI Methodology
The Coupa BSI is a leading indicator of potential economic
growth based on current business spending decisions of hundreds of
businesses. It analyzes spend data from the Coupa BSM Platform,
which has cumulatively processed more than $1 trillion of business
spending, to measure confidence around economic growth at an
aggregate level, as well as an industry level within financial
services, health and life sciences, high tech, manufacturing, and
retail. The index is based on three key spend factors at a
business: (1) average spend per person, (2) average time to approve
spend decisions, and (3) average rate of spend approval/rejection.
The Coupa BSI is normalized to a baseline value of 100, which
represents the composite value of the three components in the
reference period (July 2016).
About Coupa Community Intelligence
Coupa Community Intelligence is an AI-powered engine that
objectively analyzes transactional spend data flowing through the
Coupa BSM Platform and prescribes instant insights that help
companies spend smarter, simpler, and safer. Built in the cloud,
Coupa uniquely has access to transactional business data, which
enables its Community Intelligence engine to leverage the latest in
machine learning and AI to provide more accurate benchmarks and
high-value insights.
To learn more, go to
https://www.coupa.com/community/community-intelligence/
About Coupa Software
Coupa Software is a leading provider of BSM solutions. We offer
a comprehensive, cloud-based BSM platform that has connected
hundreds of organizations with more than four million suppliers
globally. Our platform provides greater visibility into and control
over how companies spend money. Using our platform, businesses are
able to achieve real, measurable value and savings that drive their
profitability. Learn more at www.coupa.com. Read more on the Coupa
Blog or follow @Coupa on Twitter.
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version on businesswire.com: https://www.businesswire.com/news/home/20190425005554/en/
Stefanie GordishStefanie.Gordish@coupa.com
Coupa Software (NASDAQ:COUP)
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