Record Quarterly Revenue of $41.1 Million
Cumulative Spend Under Management Surpasses $420 Billion
SAN MATEO, Calif., June 05, 2017 (GLOBE NEWSWIRE) -- Coupa Software (NASDAQ:COUP), a leader in cloud-based spend management, today announced its financial results for the first quarter of fiscal 2018, as follows:
- Revenues: Total revenues were $41.1 million, an increase of 41% from the same period last year. Subscription services revenues were $35.7 million, an increase of 41% from the same period last year.
- Loss from Operations: GAAP operating loss was $10.4 million, compared to a loss of $12.1 million for the same period last year. Non-GAAP operating loss was $4.6 million, compared to a loss of $10.0 million for the same period last year.
- Net Loss: GAAP net loss was $10.0 million, compared to a loss of $11.9 million for the same period last year. GAAP net loss per basic and diluted share was $0.20, compared to a loss of $2.11 for the same period last year. Non-GAAP net loss was $4.5 million, compared to a loss of $9.9 million for the same period last year. Non-GAAP net loss per basic and diluted share was $0.09, compared to a loss of $1.76 for the same period last year.
- Balance Sheet: Cash and cash equivalents were $238.1 million and total deferred revenue was $88.6 million as of April 30, 2017.
- Cash Flow: Cash flow provided from operating activities was $7.2 million for the three months ending April 30, 2017.
“We launched fiscal 2018 by delivering strong financial results in Q1, highlighted by 41% year-over-year revenue growth and positive operating cash flows,” said Rob Bernshteyn, CEO of Coupa. “We completed a successful follow-on offering and we also executed on a strategic acquisition of Trade Extensions, a robust sourcing solution for some of the world’s largest brands. More recently, we held our largest, and best ever, Coupa Inspire ’17 user conference, where we announced the availability of Coupa Release 18, our second major release of the calendar year.”
Business Outlook:
The following forward-looking statements reflect Coupa’s expectations as of June 5, 2017.
Second quarter of fiscal 2018:
- Total revenues are expected to be between $41.3 and $41.8 million.
- Non-GAAP loss from operations is expected to be between $9.0 and $10.0 million.
- Non-GAAP net loss per share is expected to be between $0.18 loss and $0.20 loss per share.
- Basic and diluted weighted average share count is expected to be approximately 52.5 million shares.
Full year fiscal 2018:
- Total revenues are expected to be between $172 and $175 million.
- Non-GAAP loss from operations is expected to be between $25 and $27 million.
- Non-GAAP net loss per share is expected to be between $0.49 loss and $0.53 loss per share.
- Basic and diluted weighted average share count is expected to be approximately 54 million shares.
See the sections titled “Non-GAAP Financial Measures and Key Metrics” and the reconciliation tables below for important details regarding our non-GAAP measures.
Recent Business Highlights:
- New customer wins in Q1 included, among others, the following key customers: Scotiabank, Canada's international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and Asia Pacific. Pearson, the world’s learning company with expertise in educational courseware, and technology based teaching and learning services; Eurofins International Support Services, a global leader in bio-analytical testing and one of the world leaders in genomic services; JD Sports Fashion, Emirates Flight Catering, Ringier, Sitecore USA, Workfront, Alector, Crossover Health Management Services, South Metro Fire Rescue, Hensoldt Sensors, and Lagunitas Brewing.
- Coupa acquired substantially all the stock of Trade Extensions TradeExt AB to make it easier for organizations to reduce supply chain risk, increase profit margins, and achieve operational compliance. Based in Uppsala, Sweden, Trade Extensions offers a strategic sourcing and advanced optimization platform used by many of the world’s largest brands to run sourcing projects for the most complex categories - such as transportation and logistics, production planning, and supply chain design.
- Coupa delivered Coupa Release 18, the company’s second major cloud platform release this calendar year, which gives customers more than 50 updates to existing platform applications, all designed to increase the depth of spend management processes to drive even more customer value.
- Coupa was recognized as a leader in eProcurement by independent research firm Forrester Research in a new report titled “The Forrester Wave™: eProcurement, Q2 2017”. This marks two consecutive evaluations where Coupa has been recognized as a leader in the Forrester Wave - considered one of the industry’s most thorough evaluations of enterprise purchasing solutions.
- Coupa launched Open Buy with Amazon Business, an easy way for business, higher education, and public-sector employees to quickly search, find, and buy goods all while the required spending and budget controls of their organization are applied automatically. Organizations reap the benefits of lower total costs, improved spend compliance, and higher end user adoption.
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 888-427-9411, using conference code 1634709.
- International parties can access the call by dialing 719-325-2494, using conference code 1634709.
The 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 12, 2017. To access the replay, parties in the U.S. and Canada should call 888-203-1112 and enter conference code 1634709. International parties should call 719-457-0820 and enter conference code 1634709.
Non-GAAP Financial Measures and Key Metrics:
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 stock-based compensation expense, litigation-related costs, amortization of intangible assets acquired in mergers and acquisitions, and related tax effects. We believe these non-GAAP measures are useful in evaluating our operating performance and regularly review these measures as we evaluate our business.
We believe these non-GAAP measures provide investors and other users of our financial information consistency and comparability with our past financial performance and facilitate period to period comparisons of operations. We believe these non-GAAP measures are useful in evaluating our operating performance compared to that of other companies in our industry, as they generally eliminate the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance.
We use these non-GAAP measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. The definitions of our 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, our non-GAAP measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
We compensate for these limitations by providing investors and other users of our financial information a reconciliation of non-GAAP measures to the related GAAP financial measures. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view our 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 as to non-GAAP loss from operations to GAAP loss from operations or non-GAAP net loss per share to GAAP net loss per share because certain items excluded from non-GAAP operating loss, such as charges related to stock-based compensation expense, litigation-related costs, amortization of intangible assets acquired in mergers and acquisitions, and related tax effects, cannot be reasonably calculated or predicted at this time. The effect of these excluded items may be significant.
We also use key metrics such as cumulative spend under management, which represents the aggregate amount of money that has been transacted through our platform for all of our customers collectively since we launched our platform. We calculate this metric by aggregating the actual transaction data, such as invoices or purchase orders, from customers on our platform. While we do not believe this metric is directly correlated to our financial results, we believe the adoption of our platform, as evidenced by growth in cumulative spend under management, drives additional value to our customers, which will enhance our ability to acquire new customers, to increase renewals and to increase upsells due to an increase in the number of authorized users and modules per customer.
Forward-Looking Statements:
This release includes forward-looking statements. All statements other than statements of historical facts, including the quotations from management and the 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: we have a limited operating history, which makes it difficult to predict our future operating results; if we are unable to attract new customers, the growth of our revenues will be adversely affected; because our platform is sold to large enterprises with complex operating environments, we encounter long and unpredictable sales cycles; the markets in which we participate are intensely competitive; our business depends substantially on our customers renewing their subscriptions and purchasing additional subscriptions from us; risks and liabilities related to breach of our security measures or unauthorized access to customer data; if we fail to develop widespread brand awareness cost-effectively, our business may suffer; and we have experienced rapid growth in recent periods, and if we fail to manage our growth effectively, we may be unable to execute our 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 SEC on April 3, 2017, which is available at www.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 filings Coupa makes with the SEC from time to time.
The forward-looking statements in this release reflect Coupa’s expectations as of June 5, 2017. 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 our expectations.
About Coupa Software
Coupa Software (NASDAQ:COUP) is the cloud platform for business spend. We deliver “Value as a Service” by helping our customers maximize their spend under management, achieve significant cost savings and drive profitability. Coupa provides a unified, cloud-based spend management platform that connects hundreds of organizations representing the Americas, EMEA, and APAC with millions of suppliers globally. The Coupa platform provides greater visibility into and control over how companies spend money. Customers – small, medium and large – have used the Coupa platform to bring billions of dollars in cumulative spend under management. 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, | ||||||||
| 2017 | 2016 | |||||||
| Revenues: | ||||||||
| Subscription services | $ | 35,664 | $ | 25,372 | ||||
| Professional services and other | 5,473 | 3,811 | ||||||
| Total revenues | 41,137 | 29,183 | ||||||
| Cost of revenues: | ||||||||
| Subscription services | 7,996 | 6,050 | ||||||
| Professional services and other | 5,501 | 5,968 | ||||||
| Total cost of revenues | 13,497 | 12,018 | ||||||
| Gross profit | 27,640 | 17,165 | ||||||
| Operating expenses: | ||||||||
| Research and development | 9,171 | 7,840 | ||||||
| Sales and marketing | 20,679 | 15,836 | ||||||
| General and administrative | 8,177 | 5,553 | ||||||
| Total operating expenses | 38,027 | 29,229 | ||||||
| Loss from operations | (10,387 | ) | (12,064 | ) | ||||
| Other income, net | 433 | 323 | ||||||
| Loss before provision for income taxes | (9,954 | ) | (11,741 | ) | ||||
| Provision for income taxes | 84 | 126 | ||||||
| Net loss and comprehensive loss | $ | (10,038 | ) | $ | (11,867 | ) | ||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (0.20 | ) | $ | (2.11 | ) | ||
| Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted | 50,577 | 5,612 | ||||||
| COUPA SOFTWARE INCORPORATED | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| (in thousands) | |||||||||
| (unaudited) | |||||||||
| April 30, | January 31, | ||||||||
| 2017 | 2017 | ||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 238,121 | $ | 201,721 | |||||
| Accounts receivable, net of allowances | 34,939 | 47,614 | |||||||
| Prepaid expenses and other current assets | 9,486 | 9,150 | |||||||
| Deferred commissions, current portion | 2,961 | 3,091 | |||||||
| Total current assets | 285,507 | 261,576 | |||||||
| Property and equipment, net | 4,600 | 4,642 | |||||||
| Deferred commissions, net of current portion | 2,872 | 2,895 | |||||||
| Goodwill | 6,306 | 6,306 | |||||||
| Intangible assets, net | 5,538 | 5,848 | |||||||
| Other assets | 3,257 | 2,597 | |||||||
| Total assets | $ | 308,080 | $ | 283,864 | |||||
| Liabilities and Stockholders’ Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 1,783 | $ | 1,175 | |||||
| Accrued expenses and other current liabilities | 18,096 | 17,490 | |||||||
| Deferred revenue, current portion | 87,939 | 89,872 | |||||||
| Total current liabilities | 107,818 | 108,537 | |||||||
| Deferred revenue, net of current portion | 677 | 968 | |||||||
| Other liabilities | 459 | 467 | |||||||
| Total liabilities | 108,954 | 109,972 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders' equity | |||||||||
| Preferred stock, $0.0001 par value; | - | - | |||||||
| Common stock, $0.0001 par value; | 6 | 5 | |||||||
| Additional paid-in capital | 369,730 | 334,363 | |||||||
| Accumulated deficit | (170,610 | ) | (160,476 | ) | |||||
| Total stockholders' equity | 199,126 | 173,892 | |||||||
| Total liabilities and stockholders' equity | $ | 308,080 | $ | 283,864 | |||||
| COUPA SOFTWARE INCORPORATED | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended | ||||||||
| April 30, | ||||||||
| 2017 | 2016 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (10,038 | ) | $ | (11,867 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 1,536 | 1,005 | ||||||
| Amortization of deferred commissions | 1,040 | 1,039 | ||||||
| Stock-based compensation | 5,277 | 1,706 | ||||||
| Change in fair value of preferred stock warrant liability | - | 16 | ||||||
| Other non-cash items | 105 | 9 | ||||||
| Changes in operating assets and liabilities net of effects from acquisitions: | ||||||||
| Accounts receivable | 12,570 | (3,205 | ) | |||||
| Prepaid expenses and other current assets | (336 | ) | (1,194 | ) | ||||
| Other assets | (443 | ) | (598 | ) | ||||
| Deferred commissions | (887 | ) | (585 | ) | ||||
| Accounts payable | 31 | 134 | ||||||
| Accrued expenses and other liabilities | 529 | 756 | ||||||
| Deferred revenue | (2,224 | ) | 2,558 | |||||
| Net cash provided by (used in) operating activities | 7,160 | (10,226 | ) | |||||
| Cash flows from investing activities | ||||||||
| Purchase of property and equipment | (996 | ) | (1,386 | ) | ||||
| Increase in restricted cash | (217 | ) | - | |||||
| Purchase of intangible assets | (140 | ) | - | |||||
| Net cash used in investing activities | (1,353 | ) | (1,386 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from issuance of common stock, net of underwriting discounts, commissions and offering costs | 23,040 | (1,616 | ) | |||||
| Proceeds from the exercise of common stock options | 4,527 | 378 | ||||||
| Excess tax benefit from stock-based compensation | - | 16 | ||||||
| Proceeds from issuance of common stock for ESPP | 3,026 | - | ||||||
| Net cash provided by (used in) financing activities | $ | 30,593 | $ | (1,222 | ) | |||
| Net increase (decrease) in cash and cash equivalents | 36,400 | (12,834 | ) | |||||
| Cash and cash equivalents at beginning of period | 201,721 | 92,348 | ||||||
| Cash and cash equivalents at end of period | $ | 238,121 | $ | 79,514 | ||||
| COUPA SOFTWARE INCORPORATED | ||||||||||||||||||||
| Three Months Ended April 30, 2017 | ||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| GAAP | Share-Based Compensation Expense | Amortization of Acquired Intangible Assets | Litigation- Related Costs | Non-GAAP | ||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Costs of subscription services | $ | 7,996 | $ | (355 | ) | $ | (486 | ) | $ | - | $ | 7,155 | ||||||||
| Costs of professional services and other | 5,501 | (563 | ) | - | - | 4,938 | ||||||||||||||
| Gross profit | 67.2 | % | 2.2 | % | 1.2 | % | 0.0 | % | 70.6 | % | ||||||||||
| Research and development | 9,171 | (1,152 | ) | - | - | 8,019 | ||||||||||||||
| Sales and marketing | 20,679 | (1,600 | ) | - | - | 19,079 | ||||||||||||||
| General and administrative | 8,177 | (1,607 | ) | - | - | 6,570 | ||||||||||||||
| Loss from operations | (10,387 | ) | 5,277 | 486 | - | (4,624 | ) | |||||||||||||
| Operating margin | -25.2 | % | 12.8 | % | 1.2 | % | 0.0 | % | -11.2 | % | ||||||||||
| Other income, net | 433 | - | - | - | 433 | |||||||||||||||
| Loss before provision for income taxes | (9,954 | ) | 5,277 | 486 | - | (4,191 | ) | |||||||||||||
| Aggregate adjustment for income taxes | 84 | 175 | - | - | 259 | |||||||||||||||
| Net loss | $ | (10,038 | ) | $ | 5,102 | $ | 486 | $ | - | $ | (4,450 | ) | ||||||||
| Net loss per share attributable to common stockholders, basic and diluted (1) | $ | (0.20 | ) | $ | (0.09 | ) | ||||||||||||||
| (1) Calculated based upon 50,577 basic and diluted weighted-average shares of common stock | ||||||||||||||||||||
| COUPA SOFTWARE INCORPORATED | ||||||||||||||||||||
| Three Months Ended April 30, 2016 | ||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| GAAP | Share-Based Compensation Expense | Amortization of Acquired Intangible Assets | Litigation- Related Costs | Non-GAAP | ||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Costs of subscription services | $ | 6,050 | $ | (125 | ) | $ | (221 | ) | $ | - | $ | 5,704 | ||||||||
| Costs of professional services and other | 5,968 | (135 | ) | - | - | 5,833 | ||||||||||||||
| Gross profit | 58.8 | % | 0.9 | % | 0.8 | % | 0.0 | % | 60.5 | % | ||||||||||
| Research and development | 7,840 | (322 | ) | - | - | 7,518 | ||||||||||||||
| Sales and marketing | 15,836 | (471 | ) | - | - | 15,365 | ||||||||||||||
| General and administrative | 5,553 | (653 | ) | - | (123 | ) | 4,777 | |||||||||||||
| Loss from operations | (12,064 | ) | 1,706 | 221 | 123 | (10,014 | ) | |||||||||||||
| Operating margin | -41.3 | % | 5.8 | % | 0.8 | % | 0.4 | % | -34.3 | % | ||||||||||
| Other income, net | 323 | - | - | - | 323 | |||||||||||||||
| Loss before provision for income taxes | (11,741 | ) | 1,706 | 221 | 123 | (9,691 | ) | |||||||||||||
| Aggregate adjustment for income taxes | 126 | 38 | - | - | 164 | |||||||||||||||
| Net loss | $ | (11,867 | ) | $ | 1,668 | $ | 221 | $ | 123 | $ | (9,855 | ) | ||||||||
| Net loss per share attributable to common stockholders, basic and diluted (1) | $ | (2.11 | ) | $ | (1.76 | ) | ||||||||||||||
| (1) Calculated based upon 5,612 basic and diluted weighted-average shares of common stock | ||||||||||||||||||||