SAN MATEO, Calif., Sept. 3, 2019 /PRNewswire/ -- Coupa Software
(NASDAQ: COUP) today announced financial results for its second
fiscal quarter ended July 31,
2019.
"We delivered a strong second quarter with record revenues of
$95 million, up 54% year-over-year,
and calculated billings of $108
million, up $57% year-over-year," said Rob Bernshteyn, chairman and chief executive
officer at Coupa. "These results demonstrate our continued momentum
in delivering measurable and repeatable value to our customers. By
extending our leadership standing in Business Spend Management
(BSM), we feel well positioned on our path to $1 billion in revenue."
Coupa defines calculated billings as the change in deferred
revenue on the balance sheet for the period, plus revenue
recognized during the period. See the section titled "Non-GAAP
Financial Measures" and the reconciliation tables below for
important details regarding Coupa's non-GAAP measures. Coupa
defines free cash flows as operating cash flows less purchases of
property and equipment.
Second Quarter Results
- Total revenues were $95.1
million, an increase of 54% compared to the same period last
year. Subscription revenues were $83.5
million, an increase of 51% compared to the same period last
year.
- GAAP operating loss was $22.8
million, compared to a loss of $10.6
million for the same period last year. Non-GAAP operating
income was $4.8 million, compared to
Non-GAAP operating income of $4.0
million for the same period last year.
- GAAP net loss was $20.0 million,
compared to a net loss of $13.9
million for the same period last year. GAAP net loss per
basic and diluted share was $0.32,
compared to a net loss of $0.24 for
the same period last year. Non-GAAP net income was $5.3 million, compared to Non-GAAP net income of
$3.3 million for the same period last
year. Non-GAAP net income per diluted share was $0.07, compared to Non-GAAP net income per
diluted share of $0.05 for the same
period last year.
- Operating cash flows and free cash flows were positive
$1.3 million and negative
$2.3 million, respectively, for the
quarter ended July 31, 2019.
Business Outlook:
The following forward-looking statements reflect Coupa's
expectations as of September 3,
2019.
Third quarter of fiscal 2020:
- Total revenues are expected to be between $95.5 and $96.5
million.
- Subscription revenues are expected to be between $86.0 and $87.0
million.
- Professional services and other revenues are expected to be
approximately $9.5 million.
- Non-GAAP income from operations is expected to be between
$3.5 and $5.5
million.
- Non-GAAP net income per diluted share is expected to be between
$0.05 and $0.08 per share.
- Diluted weighted average share count is expected to be
approximately 71.7 million shares.
Full year fiscal 2020:
- Total revenues are expected to be between $369.0 and $372.0
million.
- Non-GAAP income from operations is expected to be between
$10.0 and $13.0 million.
- Non-GAAP net income per diluted share is expected to be between
$0.11 and $0.16 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
from operations to GAAP loss from operations or non-GAAP net income
per share to GAAP net loss per share because certain items excluded
from non-GAAP income from operations and non-GAAP net income, 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, including non-recurring income tax adjustments, 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 Q2,
including the following: Affirmed Networks, ASB Bank, Carousell,
Comfortdelgro Corporation, Commonwealth Bank of Australia, Las Vegas Valley Water District,
Lucid Software, Lucozade Ribena Suntory, Messer-US, Pochteca
Materias Primas, PSSI Group, Rakuten, Redfin, Sainsbury's
Supermarkets, SAUR Group, The Nebu Group, Tullow Oil, University of
St. Augustine, Venafi, Volkswagen Group Australia, Waste
Management, and Wawa.
- Named as a leader in the Gartner 2019 Magic Quadrant for
Procure-to-Pay Suites for the fourth consecutive time, and for the
first time, ranked highest on both axes – Completeness of Vision
and Ability to Execute.
- At Inspire '19, unveiled new Community Intelligence innovations
as well as Coupa Pay partnerships with Citi Commercial Cards (part
of Citi's Treasury and Trades business), PayPal, Stripe, and
Transfermate.
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 7538719.
- International parties can access the call by dialing +1 (330)
871-6073, using conference code 7538719.
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 Tuesday, September
10, 2019. To access the replay, parties in the U.S. and
Canada should call (855) 859-2056
and enter conference code 7538719. International parties should
call +1 (404) 537-3406 and enter conference code 7538719.
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,
including non-recurring income tax adjustments. 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; 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; and the impact of foreign currency exchange rates and
global economic conditions.
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 quarterly report
on Form 10-Q filed with the Securities and Exchange Commission
(SEC) on June 4, 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 September 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 BSM
solutions. We offer a comprehensive, cloud-based BSM platform that
has connected hundreds of organizations with more than five million
suppliers globally. The Coupa BSM platform provides greater
visibility into and control over how companies spend money. Using
the Coupa BSM 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
|
|
Six Months
Ended
|
|
July
31,
|
|
July
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
|
|
|
Subscription
|
$
83,482
|
|
$
55,374
|
|
$ 156,439
|
|
$ 105,340
|
Professional services
and other
|
11,657
|
|
6,277
|
|
20,044
|
|
12,663
|
Total
revenues
|
95,139
|
|
61,651
|
|
176,483
|
|
118,003
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Subscription
|
22,062
|
|
11,773
|
|
39,465
|
|
22,947
|
Professional services
and other
|
12,428
|
|
6,867
|
|
22,354
|
|
13,818
|
Total cost of
revenues
|
34,490
|
|
18,640
|
|
61,819
|
|
36,765
|
Gross
profit
|
60,649
|
|
43,011
|
|
114,664
|
|
81,238
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
23,364
|
|
13,415
|
|
44,378
|
|
26,616
|
Sales and
marketing
|
39,820
|
|
26,580
|
|
73,430
|
|
51,240
|
General and
administrative
|
20,269
|
|
13,640
|
|
37,467
|
|
26,075
|
Total operating
expenses
|
83,453
|
|
53,635
|
|
155,275
|
|
103,931
|
Loss from
operations
|
(22,804)
|
|
(10,624)
|
|
(40,611)
|
|
(22,693)
|
Interest
expense
|
(8,511)
|
|
(3,122)
|
|
(11,686)
|
|
(6,095)
|
Interest income and
other, net
|
1,479
|
|
372
|
|
2,403
|
|
450
|
Loss before provision
for (benefit from) income taxes
|
(29,836)
|
|
(13,374)
|
|
(49,894)
|
|
(28,338)
|
Provision for
(benefit from) income taxes
|
(9,842)
|
|
480
|
|
(9,432)
|
|
970
|
Net
loss
|
$ (19,994)
|
|
$ (13,854)
|
|
$ (40,462)
|
|
$ (29,308)
|
Net loss per share
attributable to common stockholders, basic and
diluted
|
$
(0.32)
|
|
$
(0.24)
|
|
$
(0.66)
|
|
$
(0.52)
|
Weighted-average
number of shares used in computing net loss per share attributable
to common stockholders, basic and diluted
|
62,038
|
|
56,966
|
|
61,422
|
|
56,429
|
COUPA SOFTWARE
INCORPORATED
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
July
31,
|
|
January 31,
|
|
2019
|
|
2019
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
613,906
|
|
$
141,250
|
Marketable
securities
|
194,304
|
|
180,169
|
Accounts receivable,
net of allowances
|
83,949
|
|
95,274
|
Prepaid expenses and
other current assets
|
19,738
|
|
10,343
|
Deferred commissions,
current portion
|
9,101
|
|
7,324
|
Total current
assets
|
920,998
|
|
434,360
|
Property and
equipment, net
|
15,021
|
|
10,549
|
Deferred commissions,
net of current portion
|
22,757
|
|
18,904
|
Goodwill
|
372,272
|
|
209,560
|
Intangible assets,
net
|
103,388
|
|
55,925
|
Operating lease
right-of-use assets
|
28,477
|
|
—
|
Other
assets
|
14,159
|
|
10,766
|
Total
assets
|
$
1,477,072
|
|
$
740,064
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
2,903
|
|
$
5,485
|
Accrued expenses and
other current liabilities
|
55,239
|
|
41,792
|
Deferred revenue,
current portion
|
186,493
|
|
179,967
|
Operating lease
liabilities, current portion
|
6,613
|
|
—
|
Current portion of
convertible senior notes, net
|
180,696
|
|
174,615
|
Total current
liabilities
|
431,944
|
|
401,859
|
Convertible senior
notes, net
|
544,107
|
|
—
|
Deferred revenue, net
of current portion
|
2,426
|
|
2,620
|
Operating lease
liabilities, net of current portion
|
23,617
|
|
—
|
Other
liabilities
|
20,906
|
|
22,304
|
Total
liabilities
|
1,023,000
|
|
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
|
750,617
|
|
567,797
|
Accumulated other
comprehensive income (loss)
|
(1,233)
|
|
335
|
Accumulated
deficit
|
(295,319)
|
|
(254,857)
|
Total stockholders'
equity
|
454,072
|
|
313,281
|
Total liabilities and
stockholders' equity
|
$
1,477,072
|
|
$
740,064
|
COUPA SOFTWARE
INCORPORATED
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
Six Months
Ended
|
|
July
31,
|
|
2019
|
|
2018
|
Cash flows from
operating activities
|
|
|
|
Net
loss
|
$
(40,462)
|
|
$
(29,308)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
11,330
|
|
3,997
|
Accretion of
discounts on marketable securities, net
|
668
|
|
(295)
|
Amortization of
deferred commissions
|
4,309
|
|
2,660
|
Amortization of debt
discount and issuance costs
|
10,998
|
|
5,642
|
Stock-based
compensation
|
38,113
|
|
24,870
|
Other
|
(95)
|
|
(541)
|
Changes in operating
assets and liabilities net of effects from acquisition:
|
|
|
|
Accounts
receivable
|
20,450
|
|
11,583
|
Prepaid expenses and
other current assets
|
(7,662)
|
|
625
|
Other
assets
|
(770)
|
|
130
|
Deferred
commissions
|
(9,939)
|
|
(5,285)
|
Accounts
payable
|
(4,473)
|
|
1,955
|
Accrued expenses and
other liabilities
|
(4,061)
|
|
5,260
|
Deferred
revenue
|
1,639
|
|
2,651
|
Net cash provided
by operating activities
|
20,045
|
|
23,944
|
Cash flows from
investing activities
|
|
|
|
Purchases of
marketable securities
|
(258,991)
|
|
(160,500)
|
Maturities of
marketable securities
|
44,796
|
|
—
|
Sales of marketable
securities
|
199,314
|
|
—
|
Acquisition, net of
cash acquired
|
(210,468)
|
|
(1,178)
|
Purchases of property
and equipment
|
(6,173)
|
|
(3,416)
|
Net cash used in
investing activities
|
(231,522)
|
|
(165,094)
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
issuance of convertible senior notes, net of issuance
costs
|
786,567
|
|
(639)
|
Purchase of capped
calls
|
(118,738)
|
|
—
|
Proceeds from the
exercise of common stock options
|
10,909
|
|
6,810
|
Proceeds from
issuance of common stock for employee stock purchase
plan
|
5,396
|
|
4,137
|
Net cash provided
by financing activities
|
684,134
|
|
10,308
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
472,657
|
|
(130,842)
|
Cash, cash
equivalents, and restricted cash at beginning of year
|
141,319
|
|
412,976
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
613,976
|
|
$
282,134
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the condensed
consolidated balance sheets
|
|
|
|
Cash and cash
equivalents
|
613,906
|
|
282,061
|
Restricted cash
included in other assets
|
70
|
|
73
|
Total cash, cash
equivalents, and restricted cash
|
$
613,976
|
|
$
282,134
|
COUPA
SOFTWARE INCORPORATED
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
Three Months
Ended July 31, 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
|
|
Other
Expenses (2)
|
|
Non-GAAP
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Costs of
subscription
|
$22,062
|
|
$
(1,771)
|
|
$ (4,709)
|
|
$ —
|
|
$ —
|
|
$15,582
|
Costs of professional
services and other
|
12,428
|
|
(2,023)
|
|
—
|
|
—
|
|
—
|
|
10,405
|
Gross
profit
|
63.7%
|
|
4.0%
|
|
4.9%
|
|
0.0%
|
|
0.0%
|
|
72.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
23,364
|
|
(5,075)
|
|
—
|
|
—
|
|
—
|
|
18,289
|
Sales and
marketing
|
39,820
|
|
(6,060)
|
|
(1,650)
|
|
—
|
|
—
|
|
32,110
|
General and
administrative
|
20,269
|
|
(6,339)
|
|
—
|
|
—
|
|
—
|
|
13,930
|
Income (loss) from
operations
|
(22,804)
|
|
21,268
|
|
6,359
|
|
—
|
|
—
|
|
4,823
|
Operating
margin
|
-24.0%
|
|
22.4%
|
|
6.7%
|
|
0.0%
|
|
0.0%
|
|
5.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(8,511)
|
|
—
|
|
—
|
|
8,038
|
|
—
|
|
(473)
|
Interest income and
other, net
|
1,479
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,479
|
Income (loss) before
provision for income taxes
|
(29,836)
|
|
21,268
|
|
6,359
|
|
8,038
|
|
—
|
|
5,829
|
Provision for
(benefit from) income taxes
|
(9,842)
|
|
815
|
|
(123)
|
|
—
|
|
9,671
|
|
521
|
Net income
(loss)
|
(19,994)
|
|
20,453
|
|
6,482
|
|
8,038
|
|
(9,671)
|
|
5,308
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to common stockholders, basic
(1)
|
$
(0.32)
|
|
|
|
|
|
|
|
|
|
$
0.09
|
Net income (loss) per
share attributable to common stockholders, diluted
(1)
|
$
(0.32)
|
|
|
|
|
|
|
|
|
|
$
0.07
|
|
(1) GAAP net loss per
share is calculated based upon 62,038 basic and diluted
weighted-average shares of common stock. Non-GAAP net income per
share is calculated based upon 62,038 basic and 70,852 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 any anti-dilutive
impact of the capped call transactions entered into in connection
with the convertible notes.
|
|
(2) Other expenses
consists of the release of a valuation allowance against deferred
tax assets.
|
COUPA
SOFTWARE INCORPORATED
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
Three Months
Ended July 31, 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
|
$11,773
|
|
$ (1,093)
|
|
$
(844)
|
$
|
—
|
$
|
$9,836
|
Costs of professional
services and other
|
6,867
|
|
(1,069)
|
|
—
|
|
—
|
|
5,798
|
Gross
profit
|
69.8%
|
|
3.5%
|
|
1.4%
|
|
0.0%
|
|
74.6%
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
13,415
|
|
(2,958)
|
|
—
|
|
—
|
|
10,457
|
Sales and
marketing
|
26,580
|
|
(3,863)
|
|
(251)
|
|
—
|
|
22,466
|
General and
administrative
|
13,640
|
|
(4,575)
|
|
—
|
|
—
|
|
9,065
|
Income (loss) from
operations
|
(10,624)
|
|
13,558
|
|
1,095
|
|
—
|
|
4,029
|
Operating
margin
|
-17.2%
|
|
22.0%
|
|
1.8%
|
|
0.0%
|
|
6.5%
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(3,122)
|
|
—
|
|
—
|
|
2,894
|
|
(228)
|
Interest income and
other, net
|
372
|
|
—
|
|
—
|
|
—
|
|
372
|
Income (loss) before
provision for income taxes
|
(13,374)
|
|
13,558
|
|
1,095
|
|
2,894
|
|
4,173
|
Provision for income
taxes
|
480
|
|
371
|
|
25
|
|
—
|
|
876
|
Net income
(loss)
|
(13,854)
|
|
13,187
|
|
1,070
|
|
2,894
|
|
3,297
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to common stockholders, basic
(1)
|
$
(0.24)
|
|
|
|
|
|
|
|
$
0.06
|
Net income (loss) per
share attributable to common stockholders, diluted
(1)
|
$
(0.24)
|
|
|
|
|
|
|
|
$
0.05
|
|
(1) GAAP net loss per
share is calculated based upon 56,966 basic and diluted
weighted-average shares of common stock. Non-GAAP net income per
share is calculated based upon 56,966 basic and 66,157 diluted
weighted-average shares of common stock.
|
COUPA
SOFTWARE INCORPORATED
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
Six Months
Ended July 31, 2019
|
(in thousands,
except per share amounts)
|
(unaudited)
|
|
|
GAAP
|
|
Share-Based
Compensation
Expenses
|
|
Amortization
of Acquired
Intangible
Assets
|
|
Amortization
of
Debt Discount
and Issuance
Costs
|
|
Other
Expenses (2)
|
|
Non-GAAP
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Costs of
subscription
|
$39,465
|
|
$
(3,159)
|
|
$ (6,881)
|
$
|
—
|
$
|
—
|
|
$ 29,425
|
Costs of professional
services and other
|
22,354
|
|
(3,468)
|
|
—
|
|
—
|
|
—
|
|
18,886
|
Gross
profit
|
65.0%
|
|
3.8%
|
|
3.9%
|
|
0.0%
|
|
0.0%
|
|
72.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
44,378
|
|
(9,123)
|
|
—
|
|
—
|
|
—
|
|
35,255
|
Sales and
marketing
|
73,430
|
|
(10,899)
|
|
(2,656)
|
|
—
|
|
—
|
|
59,875
|
General and
administrative
|
37,467
|
|
(11,464)
|
|
—
|
|
—
|
|
—
|
|
26,003
|
Income (loss) from
operations
|
(40,611)
|
|
38,113
|
|
9,537
|
|
—
|
|
—
|
|
7,039
|
Operating
margin
|
-23.0%
|
|
21.6%
|
|
5.4%
|
|
0.0%
|
|
0.0%
|
|
4.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(11,686)
|
|
—
|
|
—
|
|
10,998
|
|
—
|
|
(688)
|
Interest income and
other, net
|
2,403
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,403
|
Income (loss) before
provision for (benefit from) income taxes
|
(49,894)
|
|
38,113
|
|
9,537
|
|
10,998
|
|
—
|
|
8,754
|
Provision for
(benefit from) income taxes
|
(9,432)
|
|
1,308
|
|
(246)
|
|
—
|
|
9,671
|
|
1,301
|
Net income
(loss)
|
(40,462)
|
|
36,805
|
|
9,783
|
|
10,998
|
|
(9,671)
|
|
7,453
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to common stockholders, basic
(1)
|
$
(0.66)
|
|
|
|
|
|
|
|
|
|
$
0.12
|
Net income (loss) per
share attributable to common stockholders, diluted
(1)
|
$
(0.66)
|
|
|
|
|
|
|
|
|
|
$
0.11
|
|
(1) GAAP net loss per
share is calculated based upon 61,422 basic and diluted
weighted-average shares of common stock. Non-GAAP net income per
share is calculated based upon 61,422 basic and 69,563 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 any anti-dilutive
impact of the capped call transactions entered into in connection
with the convertible notes.
|
|
(2) Other expenses
consists of the release of a valuation allowance against deferred
tax assets.
|
COUPA
SOFTWARE INCORPORATED
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
Six Months
Ended July 31, 2018
|
(in thousands,
except 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
|
$22,947
|
|
$ (1,924)
|
|
$ (1,628)
|
|
—
|
|
$19,395
|
Costs of professional
services and other
|
13,818
|
|
(2,015)
|
|
—
|
|
—
|
|
11,803
|
Gross
profit
|
68.8%
|
|
3.3%
|
|
1.4%
|
|
0.0%
|
|
73.6%
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
26,616
|
|
(5,505)
|
|
—
|
|
—
|
|
21,111
|
Sales and
marketing
|
51,240
|
|
(6,833)
|
|
(541)
|
|
—
|
|
43,866
|
General and
administrative
|
26,075
|
|
(8,593)
|
|
—
|
|
—
|
|
17,482
|
Income (loss) from
operations
|
(22,693)
|
|
24,870
|
|
2,169
|
|
—
|
|
4,346
|
Operating
margin
|
-19.2%
|
|
21.1%
|
|
1.8%
|
|
0.0%
|
|
3.7%
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(6,095)
|
|
—
|
|
—
|
|
5,642
|
|
(453)
|
Interest income and
other, net
|
450
|
|
—
|
|
—
|
|
—
|
|
450
|
Income (loss) before
provision for income taxes
|
(28,338)
|
|
24,870
|
|
2,169
|
|
5,642
|
|
4,343
|
Provision for income
taxes
|
970
|
|
540
|
|
73
|
|
—
|
|
1,583
|
Net income
(loss)
|
(29,308)
|
|
24,330
|
|
2,096
|
|
5,642
|
|
2,760
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to common stockholders, basic
(1)
|
$
(0.52)
|
|
|
|
|
|
|
|
$
0.05
|
Net income (loss) per
share attributable to common stockholders, diluted
(1)
|
$
(0.52)
|
|
|
|
|
|
|
|
$
0.04
|
|
(1) GAAP net loss per
share is calculated based upon 56,429 basic and diluted
weighted-average shares of common stock. Non-GAAP net income per
share is calculated based upon 56,429 basic and 64,623 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
|
|
Six Months
Ended
|
|
July
31,
|
|
July
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net cash provided by
operating activities
|
$
1,252
|
|
$ 11,308
|
|
$ 20,045
|
|
$ 23,944
|
Less: purchases of
property and equipment
|
(3,519)
|
|
(2,292)
|
|
(6,173)
|
|
(3,416)
|
Free cash
flows
|
$ (2,267)
|
|
$
9,016
|
|
$ 13,872
|
|
$ 20,528
|
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