Record Full Year Revenue of $134 Million
Cumulative Spend Under Management Surpasses $360 Billion
SAN MATEO, Calif., March 13, 2017 (GLOBE NEWSWIRE) -- Coupa Software (NASDAQ: COUP ), a leader in cloud-based spend management, today announced its financial results for the fourth quarter and fiscal year-ended January 31, 2017.
Fourth Quarter Results
- Revenues : Total revenues were $38.0 million, an increase of 44% from the same period last year. Subscription services revenues were $33.8 million, an increase of 45% from the same period last year.
- Loss from Operations : GAAP operating loss was $6.4 million, compared to a loss of $11.0 million for the same period last year. Non-GAAP operating loss was $2.3 million, compared to a loss of $9.7 million for the same period last year.
- Net Loss : GAAP net loss was $6.6 million, compared to a loss of $11.5 million for the same period last year. GAAP net loss per basic and diluted share was $0.13, compared to a loss of $2.18 for the same period last year. Non-GAAP net loss was $2.5 million, compared to a loss of $10.2 million for the same period last year. Non-GAAP net loss per basic and diluted share was $0.05, compared to a loss of $1.93 for the same period last year.
Fiscal Year 2017 Results
- Revenues : Total revenues were $133.8 million, an increase of 60% from the prior year. Subscription services revenues were $117.8 million, an increase of 56% from the prior year.
- Loss from Operations : GAAP operating loss was $35.4 million, compared to a loss of $45.3 million for the prior year. Non-GAAP operating loss was $24.9 million, compared to a loss of $32.4 million for the prior year.
- Net Loss : GAAP net loss was $37.6 million, compared to a loss of $46.2 million for the prior year. GAAP net loss per basic and diluted share was $1.88, compared to a loss of $9.81 for the prior year. Non-GAAP net loss was $27.1 million, compared to a loss of $33.3 million for the prior year. Non-GAAP net loss per basic and diluted share was $1.36, compared to a loss of $7.07 for the prior year.
- Balance Sheet : Cash and cash equivalents were $201.7 million, and total deferred revenue was $90.8 million, as of January 31, 2017.
- Cash Flow : Cash flow from operating activities was a use of $21.0 million for the full fiscal 2017 year.
“We closed a successful fiscal 2017 by achieving strong results across the board in Q4,” said Rob Bernshteyn, CEO of Coupa. “Our unified platform has now processed more than $360 billion in cumulative spend, driving cost savings and increasing profitability for our customers. We made significant advancements in our technology with the release of R17 and acquisition of Spend360, and added marquee customers including Caterpillar, Paul HARTMANN, and many others. With continued strength in North America and Europe and increasing traction in Asia Pacific and Latin America, we are well positioned as we enter the new fiscal year.”
Business Outlook:
The following forward-looking statements reflect Coupa’s expectations as of March 13, 2017.
First quarter of fiscal 2018:
- Total revenues are expected to be between $38.0 and $38.5 million.
- Non-GAAP loss from operations is expected to be between $6.0 and $8.5 million.
- Non-GAAP net loss per share is expected to be between $0.12 loss and $0.17 loss per share.
- Basic and diluted weighted average share count is expected to be approximately 50.8 million shares.
Full year fiscal 2018:
- Total revenues are expected to be between $167 and $170 million.
- Non-GAAP loss from operations is expected to be between $27 and $30 million.
- Non-GAAP net loss per share is expected to be between $0.53 loss and $0.58 loss per share.
- Basic and diluted weighted average share count is expected to be approximately 53 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:
- Coupa surpassed 500 total customers during the fourth quarter, ending its fiscal year with 535 customers. New customers to highlight from Q4 included some of the world’s biggest brands, such as Caterpillar, the world’s leading manufacturer of construction and mining equipment, and Paul HARTMANN, a leading provider of medical and hygiene products and Coupa’s first manufacturing customer in Germany.
- Other new customer wins included Asian Development Bank, FrieslandCampina, Clark Construction, KMG Rompetrol, LKQ Corporation, The Andersons, Bynder, Turtle Entertainment (ESL Gaming), PDF Solutions, InvoCare, Apex Parks Group, LLC, USO World Headquarters, Kubota Tractor Corporation, ACLD, Reliance Properties, Brightpoint Health, Great Wolf Resorts, GoHealth Urgent Care, and R1 RCM Inc., formerly Accretive Health Inc.
- Coupa acquired substantially all of the assets of Spend360 International Ltd. to help companies digitize antiquated processes for data classification. Based outside London, Spend360 is an analytics solution that uses deep machine learning and artificial intelligence to structure and cleanse data.
- Coupa delivered Release 17 (R17) – its first major cloud platform update of the calendar year. R17 leverages data network effects to deliver comprehensive B2B insights to customers, allowing them to increase value and spend smarter.
- After signing a premier new customer in China in Q3, KPMG China, Coupa's implementation partner, completed a rapid 10-week spend transformation project to optimize purchasing and invoicing processes.
- Coupa debuted in the 2017 Gartner Magic Quadrant for Strategic Sourcing Suites.
- Gartner also recognized Coupa as a “Vendor to Watch” in a report entitled “Market Opportunity Map: Enterprise Resource Planning, Worldwide.” Coupa was one of only five vendors named as a mega-vendor and emerging Enterprise Resource Planning (ERP) provider.
- Coupa grew its Coupa Advantage program with expanded category coverage via regional and global supplier partners. Notable new suppliers to Coupa Advantage include Zoom, a market leading video conferencing solution, as well as two new European suppliers; Manutan, Europe’s largest provider of business products and services, and Little Big Connection, a European marketplace for IT and engineering consultants.
- Coupa was one of 50 companies named one of the best workplaces of 2016 by the Silicon Review.
- Coupa announced that Apple Co-Founder Steve Wozniak will be a distinguished speaker at Coupa Inspire ’17, the company’s fifth annual user conference, which takes place May 16-18 at the Westin St. Francis Union Square in San Francisco, CA.
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 (877)-874-1567, using conference code 6255862.
- International parties can access the call by dialing (719)-325-4907, using conference code 6255862.
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, March 20, 2017. To access the replay, parties in the U.S. and Canada should call (888)-203-1112 and enter conference code 6255862. International parties should call (719)-457-0820 and enter conference code 6255862.
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 quarterly report on Form 10-Q filed with the SEC on December 9, 2016, 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 March 13, 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 | Year Ended | |||||||||||||||
| January 31, | January 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenues | ||||||||||||||||
| Subscription services | $ | 33,834 | $ | 23,288 | $ | 117,788 | $ | 75,667 | ||||||||
| Professional services and other | 4,184 | 3,076 | 15,987 | 8,011 | ||||||||||||
| Total revenues | 38,018 | 26,364 | 133,775 | 83,678 | ||||||||||||
| Cost of revenues | ||||||||||||||||
| Subscription services | 6,630 | 4,979 | 25,055 | 16,804 | ||||||||||||
| Professional services and other | 4,763 | 4,960 | 21,214 | 15,107 | ||||||||||||
| Total cost of revenues | 11,393 | 9,939 | 46,269 | 31,911 | ||||||||||||
| Gross profit | 26,625 | 16,425 | 87,506 | 51,767 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 8,037 | 6,579 | 30,262 | 22,767 | ||||||||||||
| Sales and marketing | 17,159 | 16,196 | 68,562 | 54,713 | ||||||||||||
| General and administrative | 7,865 | 4,632 | 24,106 | 19,540 | ||||||||||||
| Total operating expenses | 33,061 | 27,407 | 122,930 | 97,020 | ||||||||||||
| Loss from operations | (6,436 | ) | (10,982 | ) | (35,424 | ) | (45,253 | ) | ||||||||
| Other income (expense), net | 174 | (374 | ) | (1,335 | ) | (568 | ) | |||||||||
| Loss before provision for income taxes | (6,262 | ) | (11,356 | ) | (36,759 | ) | (45,821 | ) | ||||||||
| Provision for income taxes | 346 | 135 | 848 | 335 | ||||||||||||
| Net loss | $ | (6,608 | ) | $ | (11,491 | ) | $ | (37,607 | ) | $ | (46,156 | ) | ||||
| Net loss per share attributable to common stockholders, basic and diluted | ||||||||||||||||
| $ | (0.13 | ) | $ | (2.18 | ) | $ | (1.88 | ) | $ | (9.81 | ) | |||||
| Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted | ||||||||||||||||
| 49,776 | 5,261 | 19,988 | 4,704 | |||||||||||||
| COUPA SOFTWARE INCORPORATED | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| (in thousands) | |||||||||
| (unaudited) | |||||||||
| January 31, | January 31, | ||||||||
| 2017 | 2016 | ||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 201,721 | $ | 92,348 | |||||
| Accounts receivable, net of allowances | 47,614 | 27,979 | |||||||
| Prepaid expenses and other current assets | 9,150 | 4,549 | |||||||
| Deferred commissions, current portion | 3,091 | 3,137 | |||||||
| Total current assets | 261,576 | 128,013 | |||||||
| Property and equipment, net | 4,642 | 3,775 | |||||||
| Deferred commissions, net of current portion | 2,895 | 2,386 | |||||||
| Goodwill | 6,306 | 1,605 | |||||||
| Intangible assets, net | 5,848 | 1,369 | |||||||
| Other assets | 2,597 | 2,778 | |||||||
| Total assets | $ | 283,864 | $ | 139,926 | |||||
| Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 1,175 | $ | 1,096 | |||||
| Accrued expenses and other current liabilities | 17,490 | 14,446 | |||||||
| Deferred revenue, current portion | 89,872 | 63,870 | |||||||
| Total current liabilities | 108,537 | 79,412 | |||||||
| Deferred revenue, net of current portion | 968 | 1,056 | |||||||
| Other liabilities | 467 | 747 | |||||||
| Total liabilities | 109,972 | 81,215 | |||||||
| Commitments and contingencies | |||||||||
| Convertible preferred stock, $0.0001 par value | - | 164,950 | |||||||
| Stockholders' equity (deficit): | |||||||||
| Preferred stock, $0.0001 par value | - | - | |||||||
| Common stock, $0.0001 par value | 5 | 1 | |||||||
| Additional paid-in capital | 334,363 | 16,629 | |||||||
| Accumulated deficit | (160,476 | ) | (122,869 | ) | |||||
| Total stockholders' equity (deficit) | 173,892 | (106,239 | ) | ||||||
| Total liabilities, convertible preferred stock and stockholders' equity | $ | 283,864 | $ | 139,926 | |||||
| COUPA SOFTWARE INCORPORATED | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| Year Ended | ||||||||
| January 31, | ||||||||
| 2017 | 2016 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (37,607 | ) | $ | (46,156 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 4,575 | 2,758 | ||||||
| Amortization of deferred commissions | 4,004 | 2,834 | ||||||
| Stock-based compensation | 9,452 | 10,568 | ||||||
| Change in fair value of preferred stock warrant liability | 627 | 190 | ||||||
| Other non-cash items | 355 | - | ||||||
| Changes in operating assets and liabilities net of effects from acquisitions: | ||||||||
| Accounts receivable | (20,041 | ) | (8,314 | ) | ||||
| Prepaid expenses and other current assets | (4,600 | ) | (1,289 | ) | ||||
| Other assets | (1,136 | ) | (2,006 | ) | ||||
| Deferred commissions | (4,468 | ) | (5,384 | ) | ||||
| Accounts payable | 224 | (121 | ) | |||||
| Accrued and other liabilities | 1,772 | 696 | ||||||
| Deferred revenue | 25,888 | 24,155 | ||||||
| Net cash used in operating activities | (20,955 | ) | (22,069 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchase of property and equipment | (4,491 | ) | (3,868 | ) | ||||
| Acquisitions, net of cash acquired | (6,750 | ) | (1,426 | ) | ||||
| Net cash used in investing activities | (11,241 | ) | (5,294 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from issuance common stock, net of underwriting discounts, commissions and offering costs | 137,216 | (64 | ) | |||||
| Proceeds from the exercise of common stock options | 4,252 | 1,570 | ||||||
| Proceeds from issuance of convertible preferred stock, net of issuance costs | - | 75,731 | ||||||
| Proceeds from the exercise of preferred stock warrants | 50 | 500 | ||||||
| Excess tax benefit from shared-based compensation | 51 | - | ||||||
| Net cash provided by financing activities | $ | 141,569 | $ | 77,737 | ||||
| Net increase in cash and cash equivalents | 109,373 | 50,374 | ||||||
| Cash and cash equivalents at beginning of year | 92,348 | 41,974 | ||||||
| Cash and cash equivalents at end of year | $ | 201,721 | $ | 92,348 | ||||
| COUPA SOFTWARE INCORPORATED | ||||||||||||||||||||
| Three Months Ended January 31, 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 | $ | 6,630 | $ | (300 | ) | $ | (308 | ) | $ | - | $ | 6,022 | ||||||||
| Costs of professional services | 4,763 | (373 | ) | - | - | 4,390 | ||||||||||||||
| Gross profit | 70.0 | % | 1.8 | % | 0.8 | % | 0.0 | % | 72.6 | % | ||||||||||
| Research and development | 8,037 | (784 | ) | - | - | 7,253 | ||||||||||||||
| Sales and marketing | 17,159 | (1,282 | ) | - | - | 15,877 | ||||||||||||||
| General and administrative | 7,865 | (1,064 | ) | - | - | 6,801 | ||||||||||||||
| Loss from operations | (6,436 | ) | 3,803 | 308 | - | (2,325 | ) | |||||||||||||
| Operating margin | -16.9 | % | 10.0 | % | 0.8 | % | 0.0 | % | -6.1 | % | ||||||||||
| Other income, net | 174 | - | - | - | 174 | |||||||||||||||
| Loss before provision for income taxes | (6,262 | ) | 3,803 | 308 | - | (2,151 | ) | |||||||||||||
| Aggregate adjustment for income taxes | 346 | 8 | - | - | 354 | |||||||||||||||
| Net loss | $ | (6,608 | ) | $ | 3,795 | $ | 308 | $ | - | $ | (2,505 | ) | ||||||||
| Net loss per share attributable to common stockholders, basic and diluted (1) | $ | (0.13 | ) | $ | (0.05 | ) | ||||||||||||||
| (1) Calculated based upon 49,776 basic and diluted weighted-average shares of common stock | ||||||||||||||||||||
| COUPA SOFTWARE INCORPORATED | ||||||||||||||||||||
| Three Months Ended January 31, 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 | $ | 4,979 | $ | (74 | ) | $ | (346 | ) | $ | - | $ | 4,559 | ||||||||
| Costs of professional services | 4,960 | (70 | ) | - | - | 4,890 | ||||||||||||||
| Gross profit | 62.3 | % | 0.5 | % | 1.3 | % | 0.0 | % | 64.2 | % | ||||||||||
| Research and development | 6,579 | (227 | ) | 157 | - | 6,509 | ||||||||||||||
| Sales and marketing | 16,196 | (255 | ) | - | - | 15,941 | ||||||||||||||
| General and administrative | 4,632 | (383 | ) | - | (126 | ) | 4,123 | |||||||||||||
| Loss from operations | (10,982 | ) | 1,009 | 189 | 126 | (9,658 | ) | |||||||||||||
| Operating margin | -41.7 | % | 3.8 | % | 0.7 | % | 0.5 | % | -36.6 | % | ||||||||||
| Other expense, net | (374 | ) | - | - | - | (374 | ) | |||||||||||||
| Loss before provision for income taxes | (11,356 | ) | 1,009 | 189 | 126 | (10,032 | ) | |||||||||||||
| Aggregate adjustment for income taxes | 135 | - | - | - | 135 | |||||||||||||||
| Net loss | $ | (11,491 | ) | $ | 1,009 | $ | 189 | $ | 126 | $ | (10,167 | ) | ||||||||
| Net loss per share attributable to common stockholders, basic and diluted (1) | $ | (2.18 | ) | $ | (1.93 | ) | ||||||||||||||
| (1) Calculated based upon 5,261 basic and diluted weighted-average shares of common stock | ||||||||||||||||||||
| COUPA SOFTWARE INCORPORATED | ||||||||||||||||||||
| For the Year Ended January 31, 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 | $ | 25,055 | $ | (715 | ) | $ | (952 | ) | $ | - | $ | 23,388 | ||||||||
| Costs of professional services | 21,214 | (772 | ) | - | - | 20,442 | ||||||||||||||
| Gross profit | 65.4 | % | 1.1 | % | 0.7 | % | 0.0 | % | 67.2 | % | ||||||||||
| Research and development | 30,262 | (1,766 | ) | - | - | 28,496 | ||||||||||||||
| Sales and marketing | 68,562 | (3,130 | ) | - | - | 65,432 | ||||||||||||||
| General and administrative | 24,106 | (3,069 | ) | - | (151 | ) | 20,886 | |||||||||||||
| Loss from operations | (35,424 | ) | 9,452 | 952 | 151 | (24,869 | ) | |||||||||||||
| Operating margin | -26.5 | % | 7.1 | % | 0.7 | % | 0.1 | % | -18.6 | % | ||||||||||
| Other expense, net | (1,335 | ) | - | - | - | (1,335 | ) | |||||||||||||
| Loss before provision for income taxes | (36,759 | ) | 9,452 | 952 | 151 | (26,204 | ) | |||||||||||||
| Aggregate adjustment for income taxes | 848 | 73 | - | - | 921 | |||||||||||||||
| Net loss | $ | (37,607 | ) | $ | 9,379 | $ | 952 | $ | 151 | $ | (27,125 | ) | ||||||||
| Net loss per share attributable to common stockholders, basic and diluted (1) | $ | (1.88 | ) | $ | (1.36 | ) | ||||||||||||||
| (1) Calculated based upon 19,988 basic and diluted weighted-average shares of common stock | ||||||||||||||||||||
| COUPA SOFTWARE INCORPORATED | ||||||||||||||||||||
| For the Year Ended January 31, 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 | $ | 16,804 | $ | (235 | ) | $ | (387 | ) | $ | - | $ | 16,182 | ||||||||
| Costs of professional services | 15,107 | (1,014 | ) | - | - | 14,093 | ||||||||||||||
| Gross profit | 61.9 | % | 1.5 | % | 0.5 | % | 0.0 | % | 63.8 | % | ||||||||||
| Research and development | 22,767 | (1,236 | ) | - | - | 21,531 | ||||||||||||||
| Sales and marketing | 54,713 | (1,347 | ) | - | - | 53,366 | ||||||||||||||
| General and administrative | 19,540 | (6,736 | ) | - | (1,943 | ) | 10,861 | |||||||||||||
| Loss from operations | (45,253 | ) | 10,568 | 387 | 1,943 | (32,358 | ) | |||||||||||||
| Operating margin | -54.1 | % | 12.6 | % | 0.5 | % | 2.3 | % | -38.7 | % | ||||||||||
| Other expense, net | (568 | ) | - | - | - | (568 | ) | |||||||||||||
| Loss before provision for income taxes | (45,821 | ) | 10,568 | 387 | 1,943 | (32,923 | ) | |||||||||||||
| Aggregate adjustment for income taxes | 335 | - | - | - | 335 | |||||||||||||||
| Net loss | $ | (46,156 | ) | $ | 10,568 | $ | 387 | $ | 1,943 | $ | (33,258 | ) | ||||||||
| Net loss per share attributable to common stockholders, basic and diluted (1) | $ | (9.81 | ) | $ | (7.07 | ) | ||||||||||||||
| (1) Calculated based upon 4,704 basic and diluted weighted-average shares of common stock | ||||||||||||||||||||
Investor Relations: The Blueshirt Group for Coupa Cynthia Hiponia or Erin Rheaume 650-485-8603 ir@coupa.com Media Contact: Global Public Relations Orlando De Bruce 650-485-8629 orlando.debruce@coupa.com
