SAN MATEO, Calif., March 17, 2020 /PRNewswire/ -- Today, Coupa
Software (NASDAQ: COUP) announced the findings of the Q1 2020 Coupa
Business Spend Index (BSI). The report revealed that business spend
sentiment remains below the trend line as U.S. businesses continue
to be cautious about the economy.
Leveraging billions of dollars of aggregated and anonymized
business spend decisions, the Coupa BSI serves as an early
indicator of economic health, giving businesses insight into where
the economy is going over the next three-to-six months.
Coupa BSI Findings
The Q1 2020 Coupa BSI shows that
the U.S. economy will likely continue to operate below trend,
consistent with the previous three quarters, and business spend
sentiment across many industries including financial services,
health and life sciences, manufacturing, and retail declined
compared to the previous quarter.
"The Q1 2020 Coupa BSI clearly illustrates the degree to which
economic, health, and political implications continue to weigh on
businesses as they evaluate their corporate spending over the next
three-to-six months," said Rob
Bernshteyn, chairman and chief executive officer at
Coupa. "Not surprisingly, we also started to see distinct
purchasing patterns emerge at a category level - in areas such as
business travel and protective equipment - that are indicative of
the potential impact the Coronavirus will have on the economy."
Coronavirus' Impact on Business Spend
In addition to
analyzing business spend sentiment across industries, Coupa looked
at real-time purchasing patterns of select categories of goods and
services to evaluate how business spending trends compared with
consumer purchasing behaviors during the same time period.
Based on aggregated and anonymized transactions from the Coupa
BSM Platform, the data showed that during the month of February 2020, trends in business spending
mirrored those in consumer spending:
- Businesses spent almost 33 percent more on office sanitizing
supplies than during the same month last year.
- Similarly, businesses spent over 75 percent more on personal
protective equipment, such as masks and gloves, year over
year.
- In addition, business spend on travel and lodging decreased by
46 percent while durable goods (vehicles, appliances, electrical
and lab equipment) decreased by 21 percent.
- Finally, property, building, and engineering services decreased
by 62 percent and transportation, logistics, and fuel spending
decreased by 58 percent year over year.
To continue to show how industries are being impacted in real
time, Coupa is monitoring the effects of the Coronavirus outbreak
on businesses with monthly updates on our blog until further
notice.
To view the Q1 2020 Coupa BSI, visit www.spendindex.com.
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 nearly $1.7 trillion of spend transactions, 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 spend factors at a business: (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).
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 five 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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SOURCE Coupa Software