PR Newswire
SAN MATEO, Calif., Aug. 6, 2020
SAN MATEO, Calif., Aug. 6, 2020 /PRNewswire/ -- Today, Coupa Software (NASDAQ: COUP) published the findings from its Coupa Business Spend Index (BSI), Q3 2020 Outlook. The Coupa BSI analyzes billions of dollars of aggregated and anonymized business spend decisions, which serves as an early indicator of macroeconomic health over the next three to six months. The Q3 Outlook revealed that business spend sentiment recovered modestly (an increase of 9.6 percent), suggesting that while current confidence is still well below trend, businesses are showing early signs of optimism around the economic outlook.
Following a quarter of contracted corporate spending, the Coupa BSI shows that businesses began adjusting to the "new normal" last quarter. Though still cautious about the global economic outlook, sector data indicates that financial services, high tech, and to a lesser degree, retail showed slight improvement quarter-over-quarter.
"The Q3 BSI indicates that businesses are showing early signs of improvement after making drastic spending cuts in the beginning of the pandemic, likely in response to an overcorrection and loosening of lockdowns in some states," said Jeff Collins, chief economist at Coupa. "However, despite the slight rebound, our analysis indicates that confidence in the economy is still low, suggesting businesses will remain cautious for at least the next three to six months."
What to Expect in the Coming Months
To view the Q3 2020 Coupa BSI in its entirety, visit www.spendindex.com.
Disclaimer: The findings of the BSI are not necessarily indicative of trends happening with Coupa's business.
The Coupa BSI Methodology
The Coupa BSI is an early indicator of potential economic growth based on current business spending decisions of hundreds of U.S. companies. It analyzes billions of dollars of anonymized transactions from the Coupa BSM Platform, which has cumulatively processed more than $1.8 trillion in business spend, to measure confidence around U.S. 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 measurements related to business spend: (1) spend volume, (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).]
Note: In Q2 2020, the Coupa BSI methodology was updated with a new weighting model across all factors to match broader market changes. The factors established in Q4 2019 remain unchanged.
About Coupa Software
Coupa empowers companies around the world with the visibility and control they need to spend smarter and safer. To learn more about how Coupa can help you spend smarter, visit www.coupa.com. Read more on the Coupa Blog or follow @Coupa on Twitter.
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SOURCE Coupa Software
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