SAN MATEO, Calif., June 3, 2019 /PRNewswire/ -- Coupa Software
(NASDAQ: COUP) today announced financial results for its first
fiscal quarter ended April 30,
2019.
"In the first quarter, we delivered strong financial results,
including record quarterly total revenues, subscription revenues,
and calculated billings, as we continued to execute on our business
plan and further solidify our position as the clear leader in
Business Spend Management," said Rob
Bernshteyn, chairman and chief executive officer at Coupa.
"On the business front, in the quarter we increased our cumulative
spend under management to nearly $1.2
trillion, an increase of 60% compared to the end of the
first quarter last year, as we continue to deliver repeatable,
measurable value for customers worldwide. Through innovations in
the Coupa BSM Platform, including areas like Coupa Community
Intelligence, we're empowering everyone in the BSM community to
spend smarter together."
See the section titled "Non-GAAP Financial Measures" and the
reconciliation tables below for important details regarding Coupa's
non-GAAP measures. Coupa defines (i) calculated billings as the
change in deferred revenue on the balance sheet for the period,
plus revenue recognized during the period and (ii) free cash flows
as operating cash flows less purchases of property and
equipment.
First Quarter Results
- Total revenues were $81.3
million, an increase of 44% compared to the same period last
year. Subscription revenues were $73.0
million, an increase of 46% compared to the same period last
year.
- GAAP loss from operations was $17.8
million, compared to a loss of $12.1
million for the same period last year. Non-GAAP operating
income was $2.2 million, compared to
operating income of $0.3 million for
the same period last year.
- GAAP net loss was $20.5 million,
compared to a loss of $15.5 million
for the same period last year. GAAP net loss per basic and diluted
share was $0.34, compared to a loss
of $0.28 for the same period last
year. Non-GAAP net income was $2.1
million, compared to a loss of $0.5
million for the same period last year. Non-GAAP net income
per diluted share was $0.03, compared
to loss of $0.01 for the same period
last year.
- Operating cash flows and free cash flows for the quarter ended
April 30, 2019, were $18.8 million and $16.1
million, respectively.
Business Outlook:
The following forward-looking statements reflect Coupa's
expectations as of June 3, 2019.
Second quarter of fiscal 2020:
- Total revenues are expected to be between $84.5 and $85.5
million.
- Subscription revenues are expected to be between $77.0 and $78.0
million.
- Professional services and other revenues are expected to be
approximately $7.5 million.
- Non-GAAP loss from operations is expected to be between
$6.5 and $7.5
million.
- Non-GAAP net loss per basic and diluted share is expected to be
between $0.10 loss and $0.12 loss per share.
- Basic weighted average share count is expected to be
approximately 62.0 million shares.
Full year fiscal 2020:
- Total revenues are expected to be between $342.0 and $344.0
million.
- Non-GAAP income from operations is expected to be between
$7.0 and $9.0
million.
- Non-GAAP net income per diluted share is expected to be between
$0.07 and $0.10 per share.
- Diluted weighted average share count is expected to be
approximately 70.0 million shares.
Coupa has not reconciled its expectations for non-GAAP income
(loss) from operations to GAAP loss from operations or non-GAAP net
income (loss) per share to GAAP net loss per share because certain
items excluded from non-GAAP income (loss) from operations and
non-GAAP net income (loss), such as charges related to share-based
compensation expenses, amortization of acquired intangible assets,
amortization of debt discount and issuance costs from our
convertible notes, and related tax effects, cannot be reasonably
calculated or predicted at this time. In addition, the effect of
the anti-dilutive impact of the capped call transactions entered
into in connection with the convertible notes cannot be reasonably
calculated or predicted at this time. The effect of these items may
be significant.
Recent Business Highlights:
- Welcomed many new customers into the Coupa community in Q1,
including the following: Altima Dental Canada, American Red Cross,
Ancora Education, Apeel Sciences, Arkansas Blue Cross & Blue
Shield, Axovant, Baylor University,
Bonduelle, Dairy Farm International Holdings, Exxaro Resources,
Goodwill of Central & Southern
Indiana, Huber+Suhner, Kroger, LogicMonitor, Mesosphere,
Mongo DB, Pendo, Primax, Provident Mexico, Ra Pharma, Rotoplas,
Starkey Laboratories, US Postal Service, VielaBio, Wikimedia
Foundation, and Zocdoc.
- Launched the Coupa Business Spend Index (BSI), a leading
indicator of economic growth based on current business spending
decisions of hundreds of businesses. The Coupa BSI is a 100%
behavior-based index based on three key spend factors: (1) average
rate of spend approval/rejection, (2) average time to approve spend
decisions, and (3) average spend per person.
- Completed the acquisition of Exari, a leading provider of
contract lifecycle management (CLM) solutions. The acquisition
extends the Coupa Contract Management solution with advanced CLM
capabilities, including functionality for contract creation,
collaboration, and discovery, enabling companies to comprehensively
manage the entire contract lifecycle and operationalize their
contracts against spend transactions.
Conference Call Information:
Coupa will host a conference call and live webcast for analysts
and investors at 5:00 p.m. Eastern
time today.
- Parties in the U.S. and Canada
can access the call by dialing (855) 302-8830, using conference
code 6983949.
- International parties can access the call by dialing +1 (330)
871-6073, using conference code 6983949.
A live webcast will be accessible on Coupa's investor relations
website at http://investors.coupa.com. A replay will be available
through the same link. A telephonic replay of the conference call
will be available through Monday, June 10,
2019. To access the replay, parties in the U.S. and
Canada should call (855) 859-2056
and enter conference code 6983949. International parties should
call +1 (404) 537-3406 and enter conference code 6983949.
Non-GAAP Financial Measures:
In addition to disclosing financial measures prepared in
accordance with U.S. generally accepted accounting principles
(GAAP), this press release and the accompanying tables contain
certain non-GAAP financial measures that exclude certain items,
including share-based compensation expenses, amortization of
acquired intangible assets, amortization of debt discount and
issuance costs from convertible notes, and related tax effects. In
addition, the weighted average diluted shares used to calculate
non-GAAP net income per share reflect the anti-dilutive impact of
the capped call transactions entered into in connection with the
convertible notes. Coupa believes these non-GAAP measures are
useful in evaluating its operating performance and regularly
reviews these measures as it evaluates its business.
Coupa believes these non-GAAP measures provide investors and
other users of its financial information consistency and
comparability with its past financial performance and facilitate
period to period comparisons of operations. Coupa believes these
non-GAAP measures are useful in evaluating its operating
performance compared to that of other companies in its industry, as
they generally eliminate the effects of certain items that may vary
for different companies for reasons unrelated to overall operating
performance.
Coupa uses these non-GAAP measures in conjunction with GAAP
measures as part of its overall assessment of its performance,
including the preparation of its annual operating budget and
quarterly forecasts, to evaluate the effectiveness of its business
strategies and to communicate with its board of directors
concerning its financial performance. The definitions of its
non-GAAP measures may differ from the definitions used by other
companies and therefore comparability may be limited. In addition,
other companies may not publish these or similar metrics. Thus,
Coupa's non-GAAP measures should be considered in addition to, not
as substitutes for, or in isolation from, measures prepared in
accordance with GAAP.
Coupa compensates for these limitations by providing investors
and other users of its financial information a reconciliation of
non-GAAP measures to the related GAAP financial measures. Coupa
encourages investors and others to review its financial information
in its entirety, not to rely on any single financial measure and to
view its non-GAAP measures in conjunction with GAAP financial
measures. Please see the reconciliation of non-GAAP financial
measures to the most directly comparable GAAP measures attached to
this release.
Coupa also uses key metrics such as cumulative spend under
management, which represents the aggregate amount of money that has
been transacted through its core platform for all of its customers
collectively since it launched its platform. Coupa calculates this
metric by aggregating the actual transaction data, for invoices,
purchase orders and expenses, from customers on its core platform.
While Coupa does not believe this metric is directly correlated to
its financial results, it believes that the adoption of its core
platform, as evidenced by growth in cumulative spend under
management, drives additional value to its customers, which will
enhance its ability to acquire new customers and to increase
renewals and upsells to existing customers.
Forward-Looking Statements:
This release includes forward-looking statements. All statements
other than statements of historical facts, including the statements
of management and statements in "Business Outlook" are
forward-looking statements. These forward-looking statements are
based on Coupa's current expectations and projections about future
events and trends that Coupa believes may affect its financial
condition, results of operations, strategy, short- and long-term
business operations and objectives, and financial needs.
These forward-looking statements are subject to a number of
risks, uncertainties and assumptions that may cause actual results
to differ materially, including Coupa has a limited operating
history, which makes it difficult to predict its future operating
results; if Coupa is unable to attract new customers, the growth of
its revenues will be adversely affected; because its platform is
sold to large enterprises with complex operating environments,
Coupa encounters long and unpredictable sales cycles; risks and
liabilities related to breach of its security measures or
unauthorized access to customer data; the markets in which Coupa
participates are intensely competitive; Coupa's business depends
substantially on its customers renewing their subscriptions and
purchasing additional subscriptions; if Coupa fails to develop
widespread brand awareness cost-effectively, its business may
suffer; and if Coupa fails to manage its recent rapid growth
effectively, Coupa may be unable to execute its business plan,
maintain high levels of service, or adequately address competitive
challenges.
These and other risks and uncertainties that could affect
Coupa's future results are included under the captions "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations," in Coupa's annual report on
Form 10-K filed with the Securities and Exchange Commission (SEC)
on March 27, 2019, which is available
at investors.coupa.com and on the SEC's website at www.sec.gov.
Further information on potential risks that could affect actual
results will be included in other periodic filings Coupa makes with
the SEC.
The forward-looking statements in this release reflect Coupa's
expectations as of June 3, 2019.
Coupa undertakes no obligation to update publicly any
forward-looking statements for any reason after the date of this
release to conform these statements to actual results or to changes
in its expectations.
About Coupa Software
Coupa Software (NASDAQ: COUP) is a leading provider of Business
Spend Management (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.
COUPA SOFTWARE
INCORPORATED
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
April
30,
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
Subscription
services
|
$
72,957
|
|
$
49,966
|
Professional services
and other
|
8,387
|
|
6,386
|
Total
revenues
|
81,344
|
|
56,352
|
Cost of
revenues:
|
|
|
|
Subscription
services
|
17,403
|
|
11,174
|
Professional services
and other
|
9,926
|
|
6,951
|
Total cost of
revenues
|
27,329
|
|
18,125
|
Gross
profit
|
54,015
|
|
38,227
|
Operating
expenses:
|
|
|
|
Research and
development
|
21,014
|
|
13,201
|
Sales and
marketing
|
33,610
|
|
24,660
|
General and
administrative
|
17,198
|
|
12,435
|
Total operating
expenses
|
71,822
|
|
50,296
|
Loss from
operations
|
(17,807)
|
|
(12,069)
|
Interest
expense
|
(3,175)
|
|
(2,973)
|
Interest income and
other, net
|
924
|
|
78
|
Loss before provision
for income taxes
|
(20,058)
|
|
(14,964)
|
Provision for income
taxes
|
410
|
|
490
|
Net
loss
|
$ (20,468)
|
|
$ (15,454)
|
Net loss per share
attributable to common stockholders, basic and
diluted
|
$
(0.34)
|
|
$
(0.28)
|
Weighted-average
number of shares used in computing net loss per share attributable
to common stockholders, basic and diluted
|
60,785
|
|
55,873
|
COUPA SOFTWARE
INCORPORATED
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
April
30,
|
|
January 31,
|
|
2019
|
|
2019
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 346,446
|
|
$ 141,250
|
Marketable
securities
|
—
|
|
180,169
|
Accounts receivable,
net of allowances
|
65,847
|
|
95,274
|
Prepaid expenses and
other current assets
|
14,861
|
|
10,343
|
Deferred commissions,
current portion
|
7,999
|
|
7,324
|
Total current
assets
|
435,153
|
|
434,360
|
Property and
equipment, net
|
12,412
|
|
10,549
|
Deferred commissions,
net of current portion
|
20,012
|
|
18,904
|
Goodwill
|
209,560
|
|
209,560
|
Intangible assets,
net
|
52,747
|
|
55,925
|
Operating lease
right-of-use assets
|
26,832
|
|
—
|
Other
assets
|
9,296
|
|
10,766
|
Total
assets
|
$ 766,012
|
|
$ 740,064
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
4,893
|
|
$
5,485
|
Accrued expenses and
other current liabilities
|
42,773
|
|
41,792
|
Deferred revenue,
current portion
|
174,389
|
|
179,967
|
Operating lease
liabilities, current portion
|
5,671
|
|
—
|
Convertible senior
notes, net
|
177,576
|
|
174,615
|
Total current
liabilities
|
405,302
|
|
401,859
|
Deferred revenue, net
of current portion
|
1,954
|
|
2,620
|
Operating lease
liabilities, net of current portion
|
22,882
|
|
—
|
Other
liabilities
|
16,708
|
|
22,304
|
Total
liabilities
|
446,846
|
|
426,783
|
Stockholders'
equity:
|
|
|
|
Preferred stock,
$0.0001 par value per share
|
—
|
|
—
|
Common stock, $0.0001
par value per share
|
7
|
|
6
|
Additional paid-in
capital
|
594,735
|
|
567,797
|
Accumulated other
comprehensive income (loss)
|
(251)
|
|
335
|
Accumulated
deficit
|
(275,325)
|
|
(254,857)
|
Total stockholders'
equity
|
319,166
|
|
313,281
|
Total liabilities and
stockholders' equity
|
$ 766,012
|
|
$ 740,064
|
COUPA SOFTWARE
INCORPORATED
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
April
30,
|
|
2019
|
|
2018
|
Cash flows from
operating activities
|
|
|
|
Net
loss
|
$
(20,468)
|
|
$
(15,454)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
4,036
|
|
2,015
|
Accretion of
discounts on marketable securities, net
|
731
|
|
—
|
Amortization of
deferred commissions
|
1,980
|
|
1,192
|
Amortization of debt
discount and issuance costs
|
2,961
|
|
2,748
|
Stock-based
compensation
|
16,845
|
|
11,312
|
Other
|
92
|
|
—
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
29,405
|
|
14,314
|
Prepaid expenses and
other current assets
|
(4,370)
|
|
(1,679)
|
Other
assets
|
1,895
|
|
161
|
Deferred
commissions
|
(3,763)
|
|
(1,927)
|
Accounts
payable
|
(788)
|
|
534
|
Accrued expenses and
other liabilities
|
(3,519)
|
|
3,822
|
Deferred
revenue
|
(6,244)
|
|
(4,402)
|
Net cash provided
by operating activities
|
18,793
|
|
12,636
|
Cash flows from
investing activities
|
|
|
|
Purchases of
marketable securities
|
(64,789)
|
|
—
|
Maturities of
marketable securities
|
44,796
|
|
—
|
Sales of marketable
securities
|
199,314
|
|
—
|
Acquisitions, net of
cash acquired
|
—
|
|
(1,178)
|
Purchases of property
and equipment
|
(2,654)
|
|
(1,124)
|
Net cash provided
by (used in) investing activities
|
176,667
|
|
(2,302)
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
issuance of convertible senior notes, net of issuance
costs
|
—
|
|
(639)
|
Proceeds from the
exercise of common stock options
|
4,339
|
|
3,295
|
Proceeds from
issuance of common stock for employee stock purchase
plan
|
5,396
|
|
4,137
|
Net cash provided
by financing activities
|
9,735
|
|
6,793
|
Net increase in cash,
cash equivalents, and restricted cash
|
205,195
|
|
17,127
|
Cash, cash
equivalents, and restricted cash at beginning of year
|
141,319
|
|
412,976
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
346,514
|
|
$
430,103
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the condensed
consolidated balance sheets
|
|
|
|
Cash and cash
equivalents
|
346,446
|
|
430,030
|
Restricted cash
included in other assets
|
68
|
|
73
|
Total cash, cash
equivalents, and restricted cash
|
$
346,514
|
|
$
430,103
|
COUPA
SOFTWARE INCORPORATED
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
Three Months
Ended April 30, 2019
|
(in thousands,
except percentages and per share amounts)
|
(unaudited)
|
|
|
GAAP
|
|
Share-Based
Compensation
Expenses
|
|
Amortization
of Acquired
Intangible Assets
|
|
Amortization
of
Debt Discount
and Issuance Costs
|
|
Non-GAAP
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Costs of subscription
services
|
$ 17,403
|
|
$
(1,388)
|
|
$ (2,172)
|
|
$ —
|
|
$ 13,843
|
Costs of professional
services and other
|
9,926
|
|
(1,445)
|
|
—
|
|
—
|
|
8,481
|
Gross
profit
|
66.4%
|
|
3.5%
|
|
2.7%
|
|
0.0%
|
|
72.6%
|
Research and
development
|
21,014
|
|
(4,048)
|
|
—
|
|
—
|
|
16,966
|
Sales and
marketing
|
33,610
|
|
(4,839)
|
|
(1,006)
|
|
—
|
|
27,765
|
General and
administrative
|
17,198
|
|
(5,125)
|
|
—
|
|
—
|
|
12,073
|
Income (loss) from
operations
|
(17,807)
|
|
16,845
|
|
3,178
|
|
—
|
|
2,216
|
Operating
margin
|
-21.9%
|
|
20.7%
|
|
3.9%
|
|
0.0%
|
|
2.7%
|
Interest
expense
|
(3,175)
|
|
—
|
|
—
|
|
2,960
|
|
(215)
|
Interest income and
other, net
|
924
|
|
—
|
|
—
|
|
—
|
|
924
|
Income (loss) before
provision for income taxes
|
(20,058)
|
|
16,845
|
|
3,178
|
|
2,960
|
|
2,925
|
Provision for income
taxes
|
410
|
|
493
|
|
(123)
|
|
—
|
|
780
|
Net income
(loss)
|
(20,468)
|
|
16,352
|
|
3,301
|
|
2,960
|
|
2,145
|
Net income (loss) per
share attributable to common stockholders, basic
(1)
|
$
(0.34)
|
|
|
|
|
|
|
|
$
0.04
|
Net income (loss) per
share attributable to common stockholders, diluted
(1)
|
$
(0.34)
|
|
|
|
|
|
|
|
$
0.03
|
(1) GAAP net loss per
share is calculated based upon 60,785 basic and diluted
weighted-average shares of common stock. Non-GAAP net income per
share is calculated based upon 60,785 basic and 68,945 diluted
weighted-average shares of common stock. The Company uses the
treasury stock method to calculate the non-GAAP diluted shares
related to the convertible notes which reflects the anti-dilutive
impact of the capped call transactions entered into in connection
with the convertible notes.
|
COUPA
SOFTWARE INCORPORATED
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
Three Months
Ended April 30, 2018
|
(in thousands,
except percentages and per share amounts)
|
(unaudited)
|
|
|
GAAP
|
|
Share-Based
Compensation
Expenses
|
|
Amortization
of Acquired
Intangible Assets
|
|
Amortization
of
Debt Discount
and Issuance Costs
|
|
Non-GAAP
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Costs of subscription
services
|
$ 11,174
|
|
$
(831)
|
|
$
(784)
|
|
$ —
|
|
$ 9,559
|
Costs of professional
services and other
|
6,951
|
|
(946)
|
|
—
|
|
—
|
|
6,005
|
Gross
profit
|
67.8%
|
|
3.2%
|
|
1.4%
|
|
0.0%
|
|
72.4%
|
Research and
development
|
13,201
|
|
(2,547)
|
|
—
|
|
—
|
|
10,654
|
Sales and
marketing
|
24,660
|
|
(2,970)
|
|
(290)
|
|
—
|
|
21,400
|
General and
administrative
|
12,435
|
|
(4,018)
|
|
—
|
|
—
|
|
8,417
|
Income (loss) from
operations
|
(12,069)
|
|
11,312
|
|
1,074
|
|
—
|
|
317
|
Operating
margin
|
-21.4%
|
|
20.1%
|
|
1.9%
|
|
0.0%
|
|
0.6%
|
Interest
expense
|
(2,973)
|
|
—
|
|
—
|
|
2,748
|
|
(225)
|
Interest income and
other, net
|
78
|
|
—
|
|
—
|
|
—
|
|
78
|
Income (loss) before
provision for income taxes
|
(14,964)
|
|
11,312
|
|
1,074
|
|
2,748
|
|
170
|
Provision for income
taxes
|
490
|
|
169
|
|
48
|
|
—
|
|
707
|
Net loss
|
(15,454)
|
|
11,143
|
|
1,026
|
|
2,748
|
|
(537)
|
Net loss per share
attributable to common stockholders, basic and diluted
(1)
|
$
(0.28)
|
|
|
|
|
|
|
|
$ (0.01)
|
(1) Calculated based
upon 55,873 basic and diluted weighted-average shares of common
stock.
|
COUPA
SOFTWARE INCORPORATED
|
Reconciliation of GAAP Cash Flows from
Operations to Free Cash Flows
|
(A Non-GAAP
Financial Measure)
|
(in
thousands)
|
(unaudited)
|
|
Three Months
Ended
|
|
April
30,
|
|
2019
|
|
2018
|
Net cash provided by
operating activities
|
$ 18,793
|
|
$ 12,636
|
Less: purchases of
property and equipment
|
(2,654)
|
|
(1,124)
|
Free cash
flows
|
$ 16,139
|
|
$ 11,512
|
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SOURCE Coupa Software