Coupa Software Reports Financial Results for the Third Quarter of Fiscal 2019

SAN MATEO, Calif., Dec. 3, 2018 /PRNewswire/ -- Coupa Software (NASDAQ: COUP) today announced financial results for its third fiscal quarter ended October 31, 2018.

"We continue to extend our market leadership position, reporting 40% revenue growth and 39% calculated billings growth for the trailing 12 months, along with non-GAAP diluted earnings per share of 8 cents for the quarter. Cumulative spend under management through our platform surpassed $940 billion, with $1 trillion clearly in our sights," said Rob Bernshteyn, chief executive officer at Coupa. "The foundation for our strong financial results continues to be our ability to deliver repeatable and measurable value for our customers worldwide across all areas of business spend management. We believe we are uniquely positioned to win this large market."

Fiscal Third Quarter Results

    --  Total revenues were $67.5 million, an increase of 42% compared to the
        same period last year. Subscription revenues were $60.6 million, an
        increase of 42% compared to the same period last year.
    --  GAAP operating loss was $9.9 million, compared to a loss of $11.2
        million for the same period last year. Non-GAAP operating income was
        $5.8 million, compared to a loss of $2.4 million for the same period
        last year.
    --  GAAP net loss was $9.6 million, compared to a loss of $11.3 million for
        the same period last year. GAAP net loss per basic and diluted share was
        $0.17, compared to a loss of $0.21 for the same period last year.
        Non-GAAP net income was $5.5 million, compared to a loss of $2.8 million
        for the same period last year. Non-GAAP net income per diluted share was
        $0.08, compared to a loss of $0.05 per basic and diluted share for the
        same period last year.
    --  Operating cash flows and free cash flows for the quarter ended October
        31, 2018, were $4.0 million and $2.6 million, respectively.

Business Outlook:

The following forward-looking statements reflect Coupa's expectations as of December 3, 2018. Guidance is based on the new revenue recognition standard, ASC 606, which Coupa adopted on February 1, 2018.

Fourth quarter of fiscal 2019:

    --  Total revenues are expected to be between $67.8 and $68.3 million.
    --  Subscription revenues are expected to be between $62.0 and $62.5
        million.
    --  Professional services and other revenues are expected to be
        approximately $5.8 million.
    --  Non-GAAP income from operations is expected to be approximately
        break-even.
    --  Non-GAAP net income per share is expected to be approximately
        break-even.
    --  Basic and fully diluted weighted average share counts are expected to be
        approximately 59.8 and 68.0 million shares, respectively.

Full year fiscal 2019:

    --  Total revenues are expected to be between $253.0 and $253.5 million.
    --  Non-GAAP income from operations is expected to be between $9.5 and $10.5
        million.
    --  Non-GAAP net income per share is expected to be between $0.11 and $0.13
        per share.
    --  Fully diluted weighted average share count is expected to be
        approximately 65.3 million shares.

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) free cash flows as operating cash flows less purchases of property and equipment and (ii) calculated billings as the change in deferred revenue on the balance sheet for the period, plus revenue recognized during the period.

Recent Business Highlights:

    --  Coupa's new customers in Q3 included: United Airlines, Finnair, ISS
        Group, Golden State Warriors, Coors Distribution Company, Darden
        Restaurants, Cvent, AAA Club Alliance, Lime Bike, Axiata Group, Genesis
        Energy, SkillSoft, Consolis, KPMG Canada, POWDR, Informa Exhibitions,
        Santos Limited, and many others.
    --  Coupa held its largest ever Inspire EMEA event, as well as its inaugural
        APAC Symposium in Sydney, Australia, and its inaugural Japan Symposium
        in Tokyo, collectively bringing together well over 1,000 business spend
        management (BSM) professionals.
    --  Coupa Community Intelligence continued to garner great enthusiasm from
        our growing community of customers. In Q3, the majority of our customers
        accessed our platform's Community Insights capabilities, as evidenced by
        a near doubling of page views from Q2 to Q3.
    --  For the 6(th) time, Coupa was named to Deloitte's Technology Fast
        500(TM), a ranking of the 500 fastest growing technology, media,
        telecommunications, life sciences, and energy tech companies in North
        America.
    --  Coupa purchased Aquiire, the leader in real-time supplier catalog
        search, to extend Coupa's capability to deliver a comprehensive
        business-to-business (B2B) shopping experience spanning real-time,
        cached, and localized catalog search.
    --  Coupa unveiled its vision for a B2B payments solution called CoupaPay.
        This industry-first offering spans a set of payment and financing
        solutions that empower businesses to spend smarter at every
        transactional step of their BSM process.
    --  Coupa announced a strategic partnership with Barclaycard, starting with
        virtual cards to create a fast, secure, and convenient way for
        businesses to manage payments.

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 (888)
        256-1007, using conference code 1552666.
    --  International parties can access the call by dialing +1 (323) 994-2093,
        using conference code 1552666.

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, December 10, 2018. To access the replay, parties in the U.S. and Canada should call (888) 203-1112 and enter conference code 1552666. International parties should call +1 (719) 457-0820 and enter conference code 1552666.

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 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. 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.

With respect to Coupa's guidance as provided under "Business Outlook" above, 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 operating income (loss) and 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 including non-recurring income tax adjustments, cannot be reasonably calculated or predicted at this time. The effect of these excluded items may be significant.

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, such as 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 quarterly report on Form 10-Q filed with the Securities and Exchange Commission (SEC) on September 6, 2018, 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 December 3, 2018. 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 the 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.


                                    
            
              COUPA SOFTWARE INCORPORATED


                          
            
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


                                   
            (In thousands, except per share amounts)


                                                 
            (unaudited)




                                                                         Three Months Ended                      Nine Months Ended


                                                                         October 31,                      October 31,



                                                           2018                      2017            2018                    2017




     
              Revenues:



     Subscription services                             $60,559                   $42,795        $165,899                $118,223


      Professional services and other                     6,896                     4,545          19,559                  14,805




     Total revenues                                     67,455                    47,340         185,458                 133,028



     
              Cost of revenues:



     Subscription services                              13,990                     9,554          36,937                  26,575


      Professional services and other                     7,674                     5,441          21,492                  16,865




     Total cost of revenues                             21,664                    14,995          58,429                  43,440




     Gross profit                                       45,791                    32,345         127,029                  89,588



                 Operating expenses:



     Research and development                           16,077                    11,409          42,693                  31,301



     Sales and marketing                                25,622                    22,402          76,862                  66,892



     General and administrative                         14,010                     9,693          40,085                  27,300




     Total operating expenses                           55,709                    43,504         159,640                 125,493




     Loss from operations                              (9,918)                 (11,159)       (32,611)               (35,905)



     Interest expense                                  (3,181)                      (6)        (9,276)                   (12)


      Interest income and other, net                      1,112                       126           1,562                   1,273



      Loss before provision for (benefit
       from) income taxes                              (11,987)                 (11,039)       (40,325)               (34,644)


      Provision for (benefit from) income
       taxes                                            (2,342)                      263         (1,372)                    438




     
              Net loss                              $(9,645)                $(11,302)      $(38,953)              $(35,082)



      Net loss per share attributable to
       common stockholders, basic and
       diluted                                          $(0.17)                  $(0.21)        $(0.68)                $(0.67)



      Weighted-average number of shares
       used in computing net loss per share
       attributable to common stockholders,
       basic and diluted                                 58,212                    53,779          57,030                  52,388


                                        
              
                COUPA SOFTWARE INCORPORATED


                                   
              
                CONDENSED CONSOLIDATED BALANCE SHEETS


                                        
              (In thousands, except per share amounts)


                                                       
              (unaudited)




                                                                                   October 31,   January 31,


                                                                                          2018           2018




     
                Assets



     Current assets:



     Cash and cash equivalents                                                       $227,606       $412,903



     Marketable securities                                                            178,686


      Accounts receivable, net of allowances                                            50,526         61,366


      Prepaid expenses and other current assets                                         13,480         10,952


      Deferred commissions, current portion                                              6,029          3,756




     Total current assets                                                             476,327        488,977



     Property and equipment, net                                                        8,583          5,186


      Deferred commissions, net of current
       portion                                                                          14,998          3,896



     Goodwill                                                                         125,621         44,410



     Intangible assets, net                                                            41,189         20,020



     Other assets                                                                       7,090          9,961




     Total assets                                                                    $673,808       $572,450



                   Liabilities and Stockholders' Equity



     Current liabilities:



     Accounts payable                                                                  $4,037         $1,342


      Accrued expenses and other current
       liabilities                                                                      34,068         26,643


      Deferred revenue, current portion                                                128,683        125,714



     Convertible senior notes, net                                                    171,605




     Total current liabilities                                                        338,393        153,699



     Convertible senior notes, net                                                                  163,010


      Deferred revenue, net of current portion                                           1,430          2,316



     Other liabilities                                                                 22,464         12,880



     Total liabilities                                                                362,287        331,905




     Stockholders' equity:


      Preferred stock, $0.0001 par value per
       share


      Common stock, $0.0001 par value per share                                              6              6



     Additional paid-in capital                                                       550,113        445,318


      Accumulated other comprehensive loss                                               (311)         (298)



     Accumulated deficit                                                            (238,287)     (204,481)




     Total stockholders' equity                                                       311,521        240,545


      Total liabilities and stockholders' equity                                      $673,808       $572,450


                                                 
              
                COUPA SOFTWARE INCORPORATED


                                       
              
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                              
              (In thousands)


                                                                
              (unaudited)




                                                                                            Nine Months Ended


                                                                                               October 31,



                                                                                                         2018        2017



                           Cash flows from operating activities



             Net loss                                                                              $(38,953)  $(35,082)


              Adjustments to reconcile net loss to
               net cash provided by operating
               activities:


              Depreciation and amortization                                                             6,720       5,557


              Accretion of discounts on marketable
               securities, net                                                                          (956)


              Amortization of deferred commissions                                                      4,127       2,967


              Amortization of debt discount and
               issuance costs                                                                           8,595



             Stock-based compensation                                                                 38,690      20,783



             Other                                                                                     (374)        202


              Changes in operating assets and
               liabilities net of effects from
               acquisitions:



             Accounts receivable                                                                      12,391      15,625


              Prepaid expenses and other current
               assets                                                                                 (3,304)      (571)



             Other assets                                                                              (542)        286



             Deferred commissions                                                                    (8,467)    (2,915)



             Accounts payable                                                                          2,458         335


              Accrued expenses and other
               liabilities                                                                              6,362       8,408



             Deferred revenue                                                                          1,216       5,703


                           Net cash provided by operating
                            activities                                                                 27,963      21,298



                           Cash flows from investing activities


                           Purchases of marketable securities                                       (209,331)


              Maturities of marketable securities                                                      31,834


              Acquisitions, net of cash acquired                                                     (49,211)   (39,593)


                           Purchases of property and equipment                                        (4,870)    (3,587)


                           Net cash used in investing activities                                    (231,578)   (43,180)



                           Cash flows from financing activities


              Payment of issuance costs for the
               issuance of convertible senior notes                                                     (639)


              Proceeds from issuance of common
               stock, net of underwriting                                                                         22,264
      discounts, commissions and offering
       costs


              Proceeds from the exercise of common
               stock options                                                                           10,174      10,120


              Proceeds from issuance of common
               stock for employee stock purchase
               plan                                                                                     8,778       6,824


                           Net cash provided by financing
                            activities                                                                 18,313      39,208



              Net (decrease) increase in cash, cash
               equivalents, and restricted cash                                                     (185,302)     17,326


              Cash, cash equivalents, and
               restricted cash at beginning of year                                                   412,976     201,972


              Cash, cash equivalents, and
               restricted cash at end of period                                                      $227,674    $219,298





                           Reconciliation of cash, cash
                            equivalents, and restricted cash to
                            the consolidated
      balance sheets



             Cash and cash equivalents                                                               227,606     219,298


              Restricted cash included in other
               assets                                                                                      68


                           Total cash, cash equivalents, and
                            restricted cash                                                          $227,674    $219,298


                                                                                   
       
                 COUPA SOFTWARE INCORPORATED


                                                                             
       
          Reconciliation of GAAP to Non-GAAP Financial Measures


                                                                               
         
               Three Months Ended October 31, 2018


                                                                                   
        (in thousands, except per share amounts)


                                                                                          
               (unaudited)




                             
     
       GAAP   Share-Based Compensation Expenses                         Amortization of Acquired Intangible       Amortization of Debt Discount and
                                                                                                                    Assets                              Issuance Costs            
          
           Other      
     
     Non-GAAP
                                                                                                                                                                                    Expenses (2)

                                                                                                                                                                                                                     ---


     Costs and expenses:


      Costs of subscription
       services                   $13,990                           $(1,152)                                                    $(1,408)                                                                          $11,430


      Costs of professional
       services and other           7,674                            (1,071)                                                                                                                                        6,603


      Gross profit                  67.9%                              3.3%                                                        2.1%                                    0.0%                     0.0%           73.3%


      Research and
       development                 16,077                            (3,046)                                                                                                                                       13,031


      Sales and marketing          25,622                            (3,899)                                                       (453)                                                                           21,270


      General and
       administrative              14,010                            (4,652)                                                                                                                                        9,358


      Income (loss) from
       operations                 (9,918)                            13,820                                                        1,861                                                                             5,763


      Operating margin             -14.7%                             20.5%                                                        2.8%                                    0.0%                     0.0%            8.5%


      Interest expense            (3,181)                                                                                                                                 2,953                                     (228)


      Interest income and
       other, net                   1,112                                                                                                                                                                           1,112


      Loss before provision
       for (benefit from)
       income taxes              (11,987)                            13,820                                                        1,861                                    2,953                                     6,647


      Provision for (benefit
       from) income taxes         (2,342)                               382                                                           20                                                             3,126            1,186


      Net income (loss)           (9,645)                            13,438                                                        1,841                                    2,953                   (3,126)           5,461


      Net income (loss) per
       share attributable to
       common stockholders,
       basic (1)                  $(0.17)                                                                                                                                                                          $0.09


      Net income (loss) per
       share attributable to
       common stockholders,
       diluted (1)                $(0.17)                                                                                                                                                                          $0.08



               (1) GAAP net loss per share
                is calculated based upon
                58,212 basic and diluted
                weighted-average shares of
                common stock. Non-GAAP net
                income per share is
                calculated based upon
                58,212 basic and 67,933
                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.


               (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 October 31, 2017


                                                
          (in thousands, except per share amounts)


                                                         
               (unaudited)




                             
     
       GAAP            Share-Based Compensation Expenses                         Amortization of Acquired Intangible
                                                                                                                             Assets                Non-GAAP

                                                                                                                                                        ---


     Costs and expenses:


      Costs of subscription
       services                    $9,554                                      $(585)                                                      $(747)     $8,222


      Costs of professional
       services and other           5,441                                       (685)                                                                  4,756


      Gross profit                  68.3%                                       2.7%                                                        1.6%      72.6%


      Research and
       development                 11,409                                     (1,999)                                                                  9,410


      Sales and marketing          22,402                                     (2,212)                                                       (195)     19,995


      General and
       administrative               9,693                                     (2,386)                                                                  7,307


      Loss from operations       (11,159)                                      7,867                                                          942     (2,350)


      Operating margin             -23.6%                                      16.6%                                                        2.0%      -5.0%


      Interest expense                (6)                                                                                                               (6)


      Interest income and
       other, net                     126                                                                                                                126


      Loss before provision
       for income taxes          (11,039)                                      7,867                                                          942     (2,230)


      Provision for income
       taxes                          263                                         222                                                          119         604



     Net loss                   (11,302)                                      7,645                                                          823     (2,834)


      Net loss per share
       attributable to
       common stockholders,
       basic and diluted (1)      $(0.21)                                                                                                           $(0.05)



                            (1) Calculated based upon
                             53,779 basic and diluted
                             weighted-average shares of
                             common stock.


                                                                                   
       
                 COUPA SOFTWARE INCORPORATED


                                                                             
       
          Reconciliation of GAAP to Non-GAAP Financial Measures


                                                                               
         
               Nine Months Ended October 31, 2018


                                                                                   
        (in thousands, except per share amounts)


                                                                                          
               (unaudited)




                             
     
       GAAP   Share-Based Compensation Expenses                         Amortization of Acquired Intangible       Amortization of Debt Discount and
                                                                                                                    Assets                              Issuance Costs            
          
           Other      
     
     Non-GAAP
                                                                                                                                                                                    Expenses (2)

                                                                                                                                                                                                                     ---


     Costs and expenses:


      Costs of subscription
       services                   $36,937                           $(3,076)                                                    $(3,036)                                                                          $30,825


      Costs of professional
       services and other          21,492                            (3,086)                                                                                                                                       18,406


      Gross profit                  68.5%                              3.3%                                                        1.6%                                    0.0%                     0.0%           73.5%


      Research and
       development                 42,693                            (8,551)                                                                                                                                       34,142


      Sales and marketing          76,862                           (10,732)                                                       (994)                                                                           65,136


      General and
       administrative              40,085                           (13,245)                                                                                                                                       26,840


      Income (loss) from
       operations                (32,611)                            38,690                                                        4,030                                                                            10,109


      Operating margin             -17.6%                             20.9%                                                        2.2%                                    0.0%                     0.0%            5.5%


      Interest expense            (9,276)                                                                                                                                 8,595                                     (681)


      Interest income and
       other, net                   1,562                                                                                                                                                                           1,562


      Loss before provision
       for (benefit from)
       income taxes              (40,325)                            38,690                                                        4,030                                    8,595                                    10,990


      Provision for (benefit
       from) income taxes         (1,372)                               922                                                           93                                                             3,126            2,769


      Net income (loss)          (38,953)                            37,768                                                        3,937                                    8,595                   (3,126)           8,221


      Net income (loss) per
       share attributable to
       common stockholders,
       basic (1)                  $(0.68)                                                                                                                                                                          $0.14


      Net income (loss) per
       share attributable to
       common stockholders,
       diluted (1)                $(0.68)                                                                                                                                                                          $0.13



               (1) GAAP net loss per share
                is calculated based upon
                57,030 basic and diluted
                weighted-average shares of
                common stock. Non-GAAP net
                income per share is
                calculated based upon
                57,030 basic and 65,529
                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.


               (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


                                            
        
                 Nine Months Ended October 31, 2017


                                               
         (in thousands, except per share amounts)


                                                        
               (unaudited)




                             
     
       GAAP           Share-Based Compensation Expenses                        Amortization of Acquired Intangible
                                                                                                                           Assets                
     
     Non-GAAP

                                                                                                                                                          ---


     Costs and expenses:


      Costs of subscription
       services                   $26,575                                   $(1,469)                                                   $(2,021)        $23,085


      Costs of professional
       services and other          16,865                                    (1,965)                                                                    14,900


      Gross profit                  67.3%                                      2.6%                                                       1.5%          71.4%


      Research and
       development                 31,301                                    (4,798)                                                                    26,503


      Sales and marketing          66,892                                    (6,152)                                                      (384)         60,356


      General and
       administrative              27,300                                    (6,399)                                                                    20,901


      Loss from operations       (35,905)                                    20,783                                                       2,405        (12,717)


      Operating margin             -27.0%                                     15.6%                                                       1.8%          -9.6%


      Interest expense               (12)                                                                                                                (12)


      Interest income and
       other, net                   1,273                                                                                                                1,273


      Loss before provision
       for income taxes          (34,644)                                    20,783                                                       2,405        (11,456)


      Provision for income
       taxes                          438                                        585                                                         238           1,261



     Net loss                   (35,082)                                    20,198                                                       2,167        (12,717)


      Net loss per share
       attributable to
       common stockholders,
       basic and diluted (1)      $(0.67)                                                                                                             $(0.24)



               (1) Calculated based upon
                52,388 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                             Nine Months Ended


                                                          October 31,                             October 31,



                                      2018                  2017                  2018         2017



      Net cash provided by
       operating
       activities                   $4,019                $5,177               $27,963      $21,298


      Less: purchases of
       property and
       equipment                   (1,454)              (1,486)              (4,870)     (3,587)



      Free cash flows               $2,565                $3,691               $23,093      $17,711

View original content:http://www.prnewswire.com/news-releases/coupa-software-reports-financial-results-for-the-third-quarter-of-fiscal-2019-300759313.html

SOURCE Coupa Software