SAN MATEO, Calif., March 11, 2019 /PRNewswire/ -- Coupa Software
(NASDAQ: COUP) today announced financial results for the fourth
quarter and fiscal year ended January 31,
2019.
"The fourth quarter of fiscal 2019 was the strongest quarter yet
in our company's history, as marked by a number of significant
milestones," said Rob Bernshteyn,
chief executive officer at Coupa. "We achieved 42% year-over-year
subscription revenue growth and 11.5% annual free cash flow
margins. We were also profitable for the year on a non-GAAP basis,
delivering non-GAAP earnings per share of 18
cents, with a net loss per share of 96 cents on a GAAP basis. In addition, we
surpassed $1 trillion in cumulative
spend under management demonstrating the breadth and depth of our
growing customer base. Heading into fiscal 2020, our powerful
combination of innovation, execution, and core values that are
centered around ensuring customer success, will enable us to extend
our leadership position in Business Spend Management (BSM)."
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 and free cash flow
margins as free cash flows divided by total revenues.
Fourth Quarter Results
- Total revenues were $74.9
million, an increase of 39% compared to the same period last
year. Subscription revenues were $67.5
million, an increase of 45% compared to the same period last
year.
- GAAP operating loss was $14.7
million, compared to a loss of $9.1
million for the same period last year. Non-GAAP operating
income was $2.4 million, compared to
income of $0.9 million for the same
period last year.
- GAAP net loss was $16.6 million,
compared to a loss of $8.7 million
for the same period last year. GAAP net loss per basic and diluted
share was $0.28, compared to a loss
of $0.16 for the same period last
year. Non-GAAP net income was $3.4
million, compared to $1.4
million for the same period last year. Non-GAAP net income
per diluted share was $0.05, compared
to $0.02 for the same period last
year.
- Operating cash flows and free cash flows for the quarter ended
January 31, 2019, were $9.5 million and $6.8
million, respectively.
Fiscal Year 2019 Results
- Total revenues were $260.4
million, an increase of 39% from the previous year.
Subscription revenues were $233.4
million, an increase of 42% from the previous year.
- GAAP operating loss was $47.4
million, compared to a loss of $45.0
million for the previous year. Non-GAAP operating income was
$12.5 million, compared to a loss of
$11.8 million for the previous
year.
- GAAP net loss was $55.5 million,
compared to a loss of $43.8 million
for the previous year. GAAP net loss per basic and diluted share
was $0.96, compared to a loss of
$0.83 for the previous year. Non-GAAP
net income was $11.6 million,
compared to a loss of $11.3 million
for the previous year. Non-GAAP net income per diluted share was
$0.18, compared to a loss of
$0.21 per diluted share for the
previous year.
- Operating cash flows and free cash flows for the year ended
January 31, 2019, were $37.4 million and $29.9
million, respectively.
Business Outlook:
The following forward-looking statements reflect Coupa's
expectations as of March 11,
2019.
First quarter of fiscal 2020:
- Total revenues are expected to be between $73.5 and $74.0
million.
- Subscription revenues are expected to be between $67.5 and $68.0
million. This includes a negative impact of approximately
$2.0 million due to three fewer
calendar days for revenue recognition in Q1 compared to Q4.
- Professional services and other revenues are expected to be
approximately $6.0 million.
- Non-GAAP loss from operations is expected to be between
$2.0 and $3.5
million.
- Non-GAAP net loss per basic and diluted share is expected to be
between $0.03 loss and $0.06 loss per share.
- Basic weighted average share count is expected to be
approximately 61.0 million shares.
- Free cash flows are expected to be approximately $15.0 million.
Full year fiscal 2020:
- Total revenues are expected to be between $325.0 and $327.0
million.
- Non-GAAP income from operations is expected to be between
$3.0 and $7.0
million.
- Non-GAAP net income per diluted share is expected to be between
$0.04 and $0.10 per share.
- Diluted weighted average share count is expected to be
approximately 70.0 million shares.
Recent Business Highlights:
- Coupa added new customers in Q4, including but not limited
to: Air Methods, Bank of Hope, BDP International, BJ
Services, Botanic-Serres Du Saleve, Canadian Tire, Copa Holdings,
Elekta, Erco Worldwide, Evelo Biosciences, Freshworks, Guardian
Industries, InvestRes, InVisionApp, Kin Group, KPMG Australia,
Looker, Munich Re, North Queensland Airport Group, Novo Nordisk,
Pacific Life Insurance, Peloton Interactive, Randstad US,
Settlement Services International, Shopify, Sibanye-Stillwater,
TearFund, Telia Company, Uniting Vic Tas, Vanquis Bank (Provident),
WeddingWire, and WP Engine.
- Coupa announced its latest release of product innovations for
the BSM Platform. New industry-first capabilities were unveiled as
part of this release which leverages community intelligence,
powered by artificial intelligence, and enhanced global compliance
capabilities to empower businesses to manage their spend in a
simpler, safer, and smarter way.
- Following the announcement of Coupa Pay, the company's B2B
payments solution, Coupa announced a new strategic partnership with
J.P. Morgan, which joins a growing list of virtual card issuers
that are enabling businesses to manage payments in a fast, secure,
and convenient way.
- Coupa announced that it acquired Hiperos, a leading third-party
risk management provider and division of Opus. This acquisition
provides businesses with the advanced technology they need to
extensively evaluate the risk of their supplier base to further
protect their brand and bottom line.
- Coupa was named a Leader in two new reports: the IDC
MarketScape: Worldwide SaaS and Cloud-Enabled Accounts Payable
Applications 2019 Vendor Assessment and the Forrester Wave:
Source-to-Contract CLM, Q1 2019 for Contract Lifecycle
Management.
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) 204-4368, using conference
code 2289487.
- International parties can access the call by dialing +1 (323)
794-2423, using conference code 2289487.
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, March 18,
2019. To access the replay, parties in the U.S. and
Canada should call (888) 203-1112
and enter conference code 2289487. International parties should
call +1 (719) 457-0820 and enter conference code 2289487.
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.
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. 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.
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 quarterly report
on Form 10-Q filed with the Securities and Exchange Commission
(SEC) on December 10, 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 March 11, 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 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
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
January
31,
|
|
January
31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
|
|
|
|
Subscription
services
|
|
$
67,529
|
|
$
46,642
|
|
$
233,428
|
|
$
164,865
|
Professional services
and other
|
|
7,379
|
|
7,110
|
|
26,938
|
|
21,915
|
Total
revenues
|
|
74,908
|
|
53,752
|
|
260,366
|
|
186,780
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Subscription
services
|
|
16,216
|
|
9,906
|
|
53,153
|
|
36,481
|
Professional services
and other
|
|
8,809
|
|
6,560
|
|
30,301
|
|
23,425
|
Total cost of
revenues
|
|
25,025
|
|
16,466
|
|
83,454
|
|
59,906
|
Gross
profit
|
|
49,883
|
|
37,286
|
|
176,912
|
|
126,874
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
18,915
|
|
13,235
|
|
61,608
|
|
44,536
|
Sales and
marketing
|
|
28,797
|
|
21,830
|
|
105,659
|
|
88,722
|
General and
administrative
|
|
16,920
|
|
11,278
|
|
57,005
|
|
38,578
|
Total operating
expenses
|
|
64,632
|
|
46,343
|
|
224,272
|
|
171,836
|
Loss from
operations
|
|
(14,749)
|
|
(9,057)
|
|
(47,360)
|
|
(44,962)
|
Interest
expense
|
|
(3,242)
|
|
(490)
|
|
(12,518)
|
|
(502)
|
Interest income and
other, net
|
|
2,255
|
|
2,034
|
|
3,817
|
|
3,307
|
Loss before provision
for (benefit from) income taxes
|
|
(15,736)
|
|
(7,513)
|
|
(56,061)
|
|
(42,157)
|
Provision for
(benefit from) income taxes
|
|
835
|
|
1,210
|
|
(537)
|
|
1,648
|
Net
loss
|
|
$
(16,571)
|
|
$
(8,723)
|
|
$
(55,524)
|
|
$
(43,805)
|
Net loss per share
attributable to common stockholders, basic and
diluted
|
|
$
0.28
|
|
$
0.16
|
|
$
0.96
|
|
$
0.83
|
Weighted-average
number of shares used in computing net loss per share attributable
to common stockholders, basic and diluted
|
|
59,752
|
|
54,810
|
|
57,716
|
|
52,999
|
|
|
|
|
|
|
|
|
|
COUPA SOFTWARE
INCORPORATED
|
CONSOLIDATED
BALANCE SHEETS
|
(In thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
January 31,
|
|
January 31,
|
|
|
2019
|
|
2018
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
141,250
|
|
$
412,903
|
Marketable
securities
|
|
180,169
|
|
—
|
Accounts receivable,
net of allowances
|
|
95,274
|
|
61,366
|
Prepaid expenses and
other current assets
|
|
10,343
|
|
10,952
|
Deferred commissions,
current portion
|
|
7,324
|
|
3,756
|
Total current
assets
|
|
434,360
|
|
488,977
|
Property and
equipment, net
|
|
10,549
|
|
5,186
|
Deferred commissions,
net of current portion
|
|
18,904
|
|
3,896
|
Goodwill
|
|
209,560
|
|
44,410
|
Intangible assets,
net
|
|
55,925
|
|
20,020
|
Other
assets
|
|
10,766
|
|
9,961
|
Total
assets
|
|
$
740,064
|
|
$
572,450
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
5,485
|
|
$
1,342
|
Accrued expenses and
other current liabilities
|
|
41,792
|
|
26,643
|
Deferred revenue,
current portion
|
|
179,967
|
|
125,714
|
Convertible senior
notes, net
|
|
174,615
|
|
—
|
Total current
liabilities
|
|
401,859
|
|
153,699
|
Convertible senior
notes, net
|
|
—
|
|
163,010
|
Deferred revenue, net
of current portion
|
|
2,620
|
|
2,316
|
Other
liabilities
|
|
22,304
|
|
12,880
|
Total
liabilities
|
|
426,783
|
|
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
|
|
567,797
|
|
445,318
|
Accumulated other
comprehensive income (loss)
|
|
335
|
|
(298)
|
Accumulated
deficit
|
|
(254,857)
|
|
(204,481)
|
Total stockholders'
equity
|
|
313,281
|
|
240,545
|
Total liabilities and
stockholders' equity
|
|
$
740,064
|
|
$
572,450
|
|
|
|
|
|
COUPA SOFTWARE
INCORPORATED
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
January 31,
|
|
|
2019
|
|
2018
|
Cash flows from
operating activities
|
|
|
|
|
Net
loss
|
|
$
(55,524)
|
|
$
(43,805)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
10,442
|
|
7,562
|
Accretion of
discounts on marketable securities, net
|
|
(1,621)
|
|
—
|
Amortization of
deferred commissions
|
|
5,791
|
|
4,001
|
Amortization of debt
discount and issuance costs
|
|
11,605
|
|
459
|
Stock-based
compensation
|
|
52,946
|
|
29,694
|
Others
|
|
281
|
|
41
|
Changes in operating
assets and liabilities net of effects from acquisitions:
|
|
|
|
|
Accounts
receivable
|
|
(28,493)
|
|
(10,710)
|
Prepaid expenses and
other current assets
|
|
410
|
|
(390)
|
Other
assets
|
|
(3,402)
|
|
(746)
|
Deferred
commissions
|
|
(15,332)
|
|
(5,667)
|
Accounts
payable
|
|
3,182
|
|
(4,005)
|
Accrued expenses and
other liabilities
|
|
11,399
|
|
7,120
|
Deferred
revenue
|
|
45,752
|
|
36,072
|
Net cash provided
by operating activities
|
|
37,436
|
|
19,626
|
Cash flows from
investing activities
|
|
|
|
|
Purchase of
marketable securities
|
|
(302,922)
|
|
—
|
Maturities of
marketable securities
|
|
124,139
|
|
—
|
Acquisitions, net of
cash acquired
|
|
(143,885)
|
|
(46,075)
|
Purchase of property
and equipment
|
|
(7,528)
|
|
(4,488)
|
Net cash used in
investing activities
|
|
(330,196)
|
|
(50,563)
|
Cash flows from
financing activities
|
|
|
|
|
Proceeds from
issuance of convertible senior notes, net of issuance
costs
|
|
(639)
|
|
223,675
|
Purchase of capped
call
|
|
—
|
|
(23,322)
|
Proceeds from
issuance of common stock, net of underwriting
discounts, commissions and offering costs
|
|
—
|
|
22,264
|
Proceeds from the
exercise of common stock options
|
|
12,964
|
|
12,500
|
Proceeds from
issuance of common stock for employee stock purchase
plan
|
|
8,778
|
|
6,824
|
Net cash provided
by financing activities
|
|
21,103
|
|
241,941
|
Net (decrease)
increase in cash, cash equivalents, and restricted
cash
|
|
(271,657)
|
|
211,004
|
Cash, cash
equivalents, and restricted cash at beginning of year
|
|
412,976
|
|
201,972
|
Cash, cash
equivalents, and restricted cash at end of period
|
|
$
141,319
|
|
$
412,976
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the consolidated
balance sheets
|
|
|
|
|
Cash and cash
equivalents
|
|
141,250
|
|
412,903
|
Restricted cash
included in other assets
|
|
69
|
|
73
|
Total cash, cash
equivalents, and restricted cash
|
|
$
141,319
|
|
$
412,976
|
|
|
|
|
|
COUPA
SOFTWARE INCORPORATED
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
Three Months
Ended January 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
|
|
Non-GAAP
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Costs of subscription
services
|
$
16,216
|
|
$
(1,209)
|
|
$
(2,009)
|
|
$ —
|
|
$ —
|
|
$
12,998
|
Costs of professional
services and other
|
8,809
|
|
(1,183)
|
|
—
|
|
—
|
|
—
|
|
7,626
|
Gross
profit
|
66.6%
|
|
3.2%
|
|
2.7%
|
|
0.0%
|
|
0.0%
|
|
72.5%
|
Research and
development
|
18,915
|
|
(3,290)
|
|
—
|
|
—
|
|
—
|
|
15,625
|
Sales and
marketing
|
28,797
|
|
(4,054)
|
|
(841)
|
|
—
|
|
—
|
|
23,902
|
General and
administrative
|
16,920
|
|
(4,520)
|
|
—
|
|
—
|
|
—
|
|
12,400
|
Income (loss) from
operations
|
(14,749)
|
|
14,256
|
|
2,850
|
|
—
|
|
—
|
|
2,357
|
Operating
margin
|
-19.7%
|
|
19.0%
|
|
3.8%
|
|
0.0%
|
|
0.0%
|
|
3.1%
|
Interest
expense
|
(3,242)
|
|
—
|
|
—
|
|
3,010
|
|
—
|
|
(232)
|
Interest income and
other, net
|
2,255
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,255
|
Income (loss) before
provision for income taxes
|
(15,736)
|
|
14,256
|
|
2,850
|
|
3,010
|
|
—
|
|
4,380
|
Provision for income
taxes
|
835
|
|
220
|
|
(85)
|
|
—
|
|
48
|
|
1,018
|
Net income
(loss)
|
(16,571)
|
|
14,036
|
|
2,935
|
|
3,010
|
|
(48)
|
|
3,362
|
Net income (loss) per
share attributable to common stockholders, basic (1)
|
$
(0.28)
|
|
|
|
|
|
|
|
|
|
$
0.06
|
Net income (loss) per
share attributable to common stockholders, diluted (1)
|
$
(0.28)
|
|
|
|
|
|
|
|
|
|
$
0.05
|
(1) GAAP net loss per
share is calculated based upon 59,752 basic and diluted
weighted-average shares of common stock. Non-GAAP net income per
share is calculated based upon 59,752 basic and 66,482 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. Please note that the
Company began reflecting the anti-dilutive impact of the capped
call transactions entered into in connection with the convertible
notes in its calculation of diluted weighted-average shares of
common stock to determine non-GAAP net income per share beginning
with the quarter ended January 31, 2019. The effect of this change
is not material for any period previously presented.
|
COUPA
SOFTWARE INCORPORATED
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
Three Months
Ended January 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
services
|
$
9,906
|
|
$
(636)
|
|
$
(771)
|
|
$ —
|
|
$
8,499
|
Costs of professional
services and other
|
6,560
|
|
(757)
|
|
—
|
|
—
|
|
5,803
|
Gross
profit
|
69.4%
|
|
2.6%
|
|
1.4%
|
|
0.0%
|
|
73.4%
|
Research and
development
|
13,235
|
|
(2,130)
|
|
—
|
|
—
|
|
11,105
|
Sales and
marketing
|
21,830
|
|
(2,324)
|
|
(258)
|
|
—
|
|
19,248
|
General and
administrative
|
11,278
|
|
(3,065)
|
|
—
|
|
—
|
|
8,213
|
Income (loss) from
operations
|
(9,057)
|
|
8,912
|
|
1,029
|
|
—
|
|
884
|
Operating
margin
|
-16.8%
|
|
16.6%
|
|
1.9%
|
|
0.0%
|
|
1.7%
|
Interest
expense
|
(490)
|
|
—
|
|
—
|
|
459
|
|
(31)
|
Interest income and
other, net
|
2,034
|
|
—
|
|
—
|
|
—
|
|
2,034
|
Income (loss) before
provision for income taxes
|
(7,513)
|
|
8,912
|
|
1,029
|
|
459
|
|
2,887
|
Provision for income
taxes
|
1,210
|
|
106
|
|
173
|
|
—
|
|
1,489
|
Net income
(loss)
|
(8,723)
|
|
8,806
|
|
856
|
|
459
|
|
1,398
|
Net income (loss) per
share attributable to common stockholders,
basic(1)
|
$
(0.16)
|
|
|
|
|
|
|
|
$
0.03
|
Net income (loss) per
share attributable to common stockholders, diluted
(1)
|
$
(0.16)
|
|
|
|
|
|
|
|
$
0.02
|
(1) GAAP net loss per
share is calculated based upon 54,810 basic and diluted
weighted-average shares of common stock. Non-GAAP net income per
share is calculated based upon 54,810 basic and 62,299 diluted
weighted-average shares of common stock.
|
COUPA
SOFTWARE INCORPORATED
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
Year Ended
January 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
services
|
$
53,153
|
|
$
(4,285)
|
|
$
(5,045)
|
|
$ —
|
|
$ —
|
|
$
43,823
|
Costs of professional
services and other
|
30,301
|
|
(4,269)
|
|
—
|
|
—
|
|
—
|
|
26,032
|
Gross
profit
|
67.9%
|
|
3.3%
|
|
1.9%
|
|
0.0%
|
|
0.0%
|
|
73.2%
|
Research and
development
|
61,608
|
|
(11,841)
|
|
—
|
|
—
|
|
—
|
|
49,767
|
Sales and
marketing
|
105,659
|
|
(14,786)
|
|
(1,835)
|
|
—
|
|
—
|
|
89,038
|
General and
administrative
|
57,005
|
|
(17,765)
|
|
—
|
|
—
|
|
—
|
|
39,240
|
Income (loss) from
operations
|
(47,360)
|
|
52,946
|
|
6,880
|
|
—
|
|
—
|
|
12,466
|
Operating
margin
|
-18.2%
|
|
20.3%
|
|
2.6%
|
|
0.0%
|
|
0.0%
|
|
4.8%
|
Interest
expense
|
(12,518)
|
|
—
|
|
—
|
|
11,605
|
|
—
|
|
(913)
|
Interest income and
other, net
|
3,817
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,817
|
Income (loss) before
provision for (benefit from) income taxes
|
(56,061)
|
|
52,946
|
|
6,880
|
|
11,605
|
|
—
|
|
15,370
|
Provision for
(benefit from) income taxes
|
(537)
|
|
1,142
|
|
8
|
|
—
|
|
3,174
|
|
3,787
|
Net income
(loss)
|
(55,524)
|
|
51,804
|
|
6,872
|
|
11,605
|
|
(3,174)
|
|
11,583
|
Net income (loss) per
share attributable to common stockholders, basic (1)
|
$
(0.96)
|
|
|
|
|
|
|
|
|
|
$
0.20
|
Net income (loss) per
share attributable to common stockholders, diluted (1)
|
$
(0.96)
|
|
|
|
|
|
|
|
|
|
$
0.18
|
(1) GAAP net loss per
share is calculated based upon 57,716 basic and diluted
weighted-average shares of common stock. Non-GAAP net income per
share is calculated based upon 57,716 basic and 64,065 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. Please note that the Company
began reflecting the anti-dilutive impact of the capped call
transactions entered into in connection with the convertible notes
in its calculation of diluted weighted-average shares of common
stock to determine non-GAAP net income per share beginning with the
quarter ended January 31, 2019. The effect of this change is not
material for any period previously presented.
|
|
(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
|
Year Ended
January 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
services
|
$
36,481
|
|
$
(2,105)
|
|
$
(2,792)
|
|
$ —
|
|
$
31,584
|
Costs of professional
services and other
|
23,425
|
|
(2,722)
|
|
—
|
|
—
|
|
20,703
|
Gross
profit
|
67.9%
|
|
2.6%
|
|
1.5%
|
|
0.0%
|
|
72.0%
|
Research and
development
|
44,536
|
|
(6,928)
|
|
—
|
|
—
|
|
37,608
|
Sales and
marketing
|
88,722
|
|
(8,476)
|
|
(642)
|
|
—
|
|
79,604
|
General and
administrative
|
38,578
|
|
(9,464)
|
|
—
|
|
—
|
|
29,114
|
Loss from
operations
|
(44,962)
|
|
29,695
|
|
3,434
|
|
—
|
|
(11,833)
|
Operating
margin
|
-24.1%
|
|
15.9%
|
|
1.8%
|
|
0.0%
|
|
-6.4%
|
Interest
expense
|
(502)
|
|
—
|
|
—
|
|
459
|
|
(43)
|
Interest income and
other, net
|
3,307
|
|
—
|
|
—
|
|
—
|
|
3,307
|
Loss before provision
for income taxes
|
(42,157)
|
|
29,695
|
|
3,434
|
|
459
|
|
(8,569)
|
Provision for income
taxes
|
1,648
|
|
691
|
|
411
|
|
—
|
|
2,750
|
Net loss
|
(43,805)
|
|
29,004
|
|
3,023
|
|
459
|
|
(11,319)
|
Net loss per share
attributable to common stockholders, basic and diluted
(1)
|
$
(0.83)
|
|
|
|
|
|
|
|
$
(0.21)
|
(1) Calculated based
upon 52,999 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
|
|
Year
Ended
|
|
|
January
31,
|
|
January
31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net cash provided by
(used in) operating activities
|
|
$
9,473
|
|
$
(1,672)
|
|
$
37,436
|
|
$
19,626
|
Less: purchases of
property and equipment
|
|
(2,658)
|
|
(901)
|
|
(7,528)
|
|
(4,488)
|
Free cash
flows
|
|
$
6,815
|
|
$
(2,573)
|
|
$
29,908
|
|
$
15,138
|
|
|
|
|
|
|
|
|
|
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SOURCE Coupa Software