Coupa Software Reports Financial Results For the First Quarter of Fiscal 2020
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
Amortization
Amortization of Non-GAAP
Compensation of Acquired Debt Discount
Expenses Intangible Assets and Issuance Costs
---
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
Amortization
Amortization of Non-GAAP
Compensation of Acquired Debt Discount
Expenses Intangible Assets and Issuance Costs
---
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
===
View original content to download multimedia:http://www.prnewswire.com/news-releases/coupa-software-reports-financial-results-for-the-first-quarter-of-fiscal-2020-300860913.html
SOURCE Coupa Software
