Coupa Software Reports First Quarter Fiscal 2023 Financial Results
- Record Quarterly Subscription Revenues of
$178 Million , 27% Year-Over-Year Growth - Record Quarterly Revenues of
$196 Million , 18% Year-Over-Year Growth - Quarterly Calculated Billings of
$188 Million , 26% Year-Over-Year Growth - Quarterly Operating Cash Flows and Adjusted Free Cash Flows of
$50 Million and$46 Million , Respectively
"We began the fiscal year strong by delivering record quarterly total revenue and subscription revenue, and also yielding over 20% operating cash flow and adjusted free cash flow margins," said
First Quarter Results:
- Total revenues were
$196.4 million , an increase of 18% compared to the same period last year. Subscription revenues were$178.5 million , an increase of 27% compared to the same period last year. - GAAP operating loss was
$71.3 million , compared to$73.9 million for the same period last year. Non-GAAP operating income was$13.8 million , compared to$7.0 million for the same period last year. - GAAP net loss attributable to
Coupa Software Incorporated was$81.5 million , compared to$100.4 million for the same period last year. GAAP net loss per basic and diluted share attributable toCoupa Software Incorporated was$1.08 , compared to$1.38 for the same period last year. Non-GAAP net income attributable toCoupa Software Incorporated was$5.5 million , compared to$5.0 million for the same period last year. Non-GAAP net income per diluted share attributable toCoupa Software Incorporated was$0.08 , compared to$0.07 for the same period last year. - Operating cash flows and adjusted free cash flows were
$49.7 million and$45.6 million , respectively.
See the section titled "Non-GAAP Financial Measures" and the reconciliation tables below for important information regarding the non-GAAP financial measures used by Coupa.
Business Outlook:
The following forward-looking statements reflect Coupa's expectations as of
Second quarter of fiscal 2023:
- Total revenues are expected to be
$202.0 to$205 .0 million. - Subscription revenues are expected to be
$185.0 to$188 .0 million. - Professional services and other revenues are expected to be approximately
$17 .0 million. - Non-GAAP income from operations is expected to be
$9.0 to$12 .0 million. - Non-GAAP net income per diluted share attributable to
Coupa Software Incorporated is expected to be$0.07 to$0.10 per share. - Diluted weighted average share count is expected to be approximately 87.5 million shares.
Full year fiscal 2023:
- Total revenues are expected to be
$838.0 to$843.0 million . - Subscription revenues are expected to be
$762.0 to$767.0 million . - Professional services and other revenues are expected to be approximately
$76.0 million . - Non-GAAP income from operations is expected to be
$36.0 to$41.0 million . - Non-GAAP net income per diluted share attributable to
Coupa Software Incorporated is expected to be$0.21 to$0.27 per share. - Diluted weighted average share count is expected to be approximately 88.5 million shares.
Coupa has not reconciled its expectations for non-GAAP income from operations to GAAP loss from operations, or non-GAAP net income per diluted share attributable to
Recent Business Highlights:
- Welcomed many new customers into the Coupa community in Q1, including the following: African Rainbow Minerals, Americanas S.A,
Andover Properties , Arvinas, Asplundh Tree Expert Co, Atlantis The Palm, Aware Super,Biohaven Pharmaceuticals , BITSO, Bluepeak,Bone Dry Roofing, Inc. , Brasil Telecom Comunicação Multimídia S.A.,Contentful Inc. , Coursera,Denka Chemicals Holdings Asia Pacific Private Limited ,Digital Charging Solutions GmbH ,DPDgroup International Services GmbH , Epta Italy, Escape Bio, Evergreen North America Industrial Services, Evernex, flyExclusive,Global Life Sciences Solutions USA LLC ,Gunnebo Nordic AB , Harmony Biosciences,Heartland Generation Ltd , HF Sinclair,HIPUS Co. ,Ltd., ID VERDE, Inland Technologies, Kepler Weber S.A.,Keystone Academy ,Lifelong Medical Care ,LightEdge Solutions ,Medicines Discovery Catapult ,Molecular Assemblies, Inc. ,Multi-Agency Alliance for Children , Pathways Health and Community Support LLC,PaySafe Group Limited ,Pfisterer Holding AG ,Pipe Creek Construction ,Principal Life Insurance ,Reconomy (UK) Limited , Royal Caribbean Cruises Ltd,Salsify, Inc. ,Silver Bay Seafoods , Simon Property Group, Inc., Specialty Dental Brands,Speedcast Americas, Inc. , SSR Mining Inc.,Standard Profil Automotive GmbH ,Tectonic Therapeutic, Inc. , TeleSign, Tonix Pharmaceuticals Holding Corp.,Ultradent Products ,Wabtec Corporation ,Ziegler Holding GmbH , andZimVie Netherlands Holding B.V. - Named Customers' Choice for Procure-to-Pay Suites in Gartner's Peer Insights report
- Named a Leader in The Forrester Wave: Supplier Value Management Platforms, Q1 2022 report
- Named a Challenger in the 2022 Gartner Magic Quadrant for Supply Chain Planning Solutions
- Achieved FedRAMP Moderate authorization to help government agencies maximize the impact of every dollar they spend
- Hosted its annual BSM community conference Inspire, in both
North America and EMEA, welcoming a record number of attendees and awarding its Spendsetters to recognize leaders revolutionizing BSM. Awarded companies includeADM , AstraZeneca, Farfetch, Grupo Bafar,Mars Vet Health , Mastercard,Primetals , REI, Saga, Saint-Gobain,Sonoco ,Tearfund ,World Vision , andZurich - Launched new innovations to help companies modernize back office functions and accelerate ESG programs, including new solutions for Scope 3 emissions tracking, bid price insights, and supply chain financing
- Launched a multi-year brand partnership with the
New York Yankees that will showcase Coupa throughout the fan experience - Recognized as a finalist to
Fast Company's 2022 World Changing Ideas list - Recognized as one of the Best Workplaces in Tech in
Ireland byGreat Place to Work - Partnered with HBCU Connect to support hiring more diverse candidates and accelerate DEI programs
- Published its 2022 BSM Benchmark Report, detailing 20 community-powered KPIs for best in-class business spend management programs
Conference Call Information:
Coupa will host a conference call and live webcast for analysts and investors at
The 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.
Non-GAAP Financial Measures:
In addition to disclosing financial measures prepared in accordance with
Non-GAAP operating income and non-GAAP net income attributable to
Beginning in the three months ended
Adjusted free cash flows is defined as net cash provided by operating activities, less purchases of property and equipment, and prior to the adoption of ASU 2020-06 on
Coupa believes these non-GAAP measures are useful to investors and other users of its financial information because they provide a way to measure and evaluate Coupa's underlying operating performance and the strength of its core business consistently across the periods presented. Coupa believes these non-GAAP measures are also useful for comparing its operating performance to that of other companies in its industry, because they eliminate the effects of certain items that may vary between companies for reasons unrelated to their operating performance. Coupa believes that adjusted free cash flows also provides a useful measure of the company's capital strength and liquidity, although it is not intended to represent and should not be viewed as the amount of residual cash flow available for discretionary expenditures.
Coupa uses these non-GAAP measures in conjunction with GAAP measures as part of its overall assessment of its performance and liquidity, 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 and liquidity. Coupa's definitions of its non-GAAP measures may differ from those used by other companies for similarly-titled measures, 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, the company's GAAP results.
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. In addition, Coupa compensates for the limitations of its non-GAAP financial measures by providing a reconciliation of each non-GAAP measure to the most directly comparable GAAP financial measure. These reconciliations are included in the tables attached to this release.
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, cash flows, liquidity 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 from those projected, including, without limitation: Coupa is subject to macroeconomic uncertainties driven by the war in
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
The forward-looking statements in this release reflect Coupa's expectations as of
About
Coupa is the cloud-based Business Spend Management (BSM) platform that unifies processes across supply chain, procurement, and finance functions. Coupa empowers organizations around the world to maximize value and operationalize purpose through their business spend. To learn more about Coupa, visit www.coupa.com or follow us on LinkedIn or Twitter.
|
|||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||
(in thousands, except per share amounts) |
|||
(unaudited) |
|||
Three Months Ended |
|||
2022 |
2021 |
||
Revenues: |
|||
Subscription |
$ 178,470 |
$ 140,104 |
|
Professional services and other |
17,901 |
26,825 |
|
Total revenues |
196,371 |
166,929 |
|
Cost of revenues: |
|||
Subscription |
58,129 |
51,025 |
|
Professional services and other |
22,699 |
28,702 |
|
Total cost of revenues |
80,828 |
79,727 |
|
Gross profit |
115,543 |
87,202 |
|
Operating expenses: |
|||
Research and development |
43,710 |
43,837 |
|
Sales and marketing |
100,953 |
77,843 |
|
General and administrative |
42,138 |
39,377 |
|
Total operating expenses |
186,801 |
161,057 |
|
Loss from operations |
(71,258) |
(73,855) |
|
Interest expense |
(3,476) |
(29,103) |
|
Other income (expense), net |
(3,716) |
535 |
|
Loss before provision for (benefit from) income taxes |
(78,450) |
(102,423) |
|
Provision for (benefit from) income taxes |
2,751 |
(2,066) |
|
Net loss |
(81,201) |
(100,357) |
|
Net loss attributable to redeemable non-controlling interests |
(204) |
— |
|
Adjustment attributable to redeemable non-controlling interests |
476 |
— |
|
Net loss attributable to |
$ (81,473) |
$ (100,357) |
|
Net loss per share, basic and diluted, attributable to |
$ (1.08) |
$ (1.38) |
|
Weighted-average number of shares used in computing net loss per share,basic and diluted |
75,183 |
72,865 |
|
|
|||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
(in thousands, except per share amounts) |
|||
(unaudited) |
|||
|
|
||
Assets |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 493,889 |
$ 506,459 |
|
Marketable securities |
292,321 |
223,032 |
|
Accounts receivable, net of allowances |
186,625 |
226,191 |
|
Prepaid expenses and other current assets |
41,301 |
38,270 |
|
Deferred commissions, current portion |
21,722 |
21,096 |
|
Total current assets |
1,035,858 |
1,015,048 |
|
Property and equipment, net |
31,333 |
30,576 |
|
Deferred commissions, net of current portion |
48,062 |
48,562 |
|
|
1,514,550 |
1,514,550 |
|
Intangible assets, net |
477,955 |
510,663 |
|
Operating lease right-of-use assets |
39,501 |
42,659 |
|
Other assets |
28,736 |
31,121 |
|
Total assets |
$ 3,175,995 |
$ 3,193,179 |
|
Liabilities, Redeemable Non-Controlling Interests, and Stockholders' Equity |
|||
Current liabilities: |
|||
Accounts payable |
$ 7,835 |
$ 4,610 |
|
Accrued expenses and other current liabilities |
87,989 |
79,160 |
|
Deferred revenue, current portion |
460,862 |
468,783 |
|
Current portion of convertible senior notes, net |
1,744 |
1,639 |
|
Operating lease liabilities, current portion |
12,896 |
12,760 |
|
Total current liabilities |
571,326 |
566,952 |
|
Convertible senior notes, net |
2,157,855 |
1,614,257 |
|
Deferred revenue, net of current portion |
22,070 |
22,655 |
|
Operating lease liabilities, net of current portion |
27,525 |
31,172 |
|
Other liabilities |
46,774 |
52,481 |
|
Total liabilities |
2,825,550 |
2,287,517 |
|
Redeemable non-controlling interests |
14,164 |
12,084 |
|
Stockholders' equity: |
|||
Preferred stock, |
— |
— |
|
Common stock, |
7 |
7 |
|
Additional paid-in capital |
1,102,962 |
1,778,840 |
|
Accumulated other comprehensive income |
7,635 |
9,643 |
|
Accumulated deficit |
(774,323) |
(894,912) |
|
Total stockholders' equity |
336,281 |
893,578 |
|
Total liabilities, redeemable non-controlling interests, and stockholders' equity |
$ 3,175,995 |
$ 3,193,179 |
|
|
|||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
(in thousands) |
|||
(unaudited) |
|||
Three Months Ended |
|||
2022 |
2021 |
||
Cash flows from operating activities |
|||
Net loss attributable to |
$ (81,473) |
$ (100,357) |
|
Net loss and adjustment attributable to redeemable non-controlling interests |
272 |
— |
|
Net loss |
(81,201) |
(100,357) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|||
Depreciation and amortization |
36,242 |
36,539 |
|
Amortization (accretion) of premium (discount) on marketable securities, net |
(419) |
326 |
|
Amortization of deferred commissions |
5,555 |
4,213 |
|
Amortization of debt discount and issuance costs |
1,765 |
27,390 |
|
Stock-based compensation |
52,392 |
47,292 |
|
Loss on conversion of convertible senior notes |
— |
129 |
|
Repayments of convertible senior notes attributable to debt discount |
— |
(516) |
|
Other |
(1,779) |
(1,586) |
|
Changes in operating assets and liabilities net of effects from acquisitions: |
|||
Accounts receivable |
39,634 |
47,750 |
|
Prepaid expenses and other current assets |
(2,525) |
(7,011) |
|
Other assets |
5,461 |
4,836 |
|
Deferred commissions |
(5,749) |
(4,706) |
|
Accounts payable |
3,411 |
2,799 |
|
Accrued expenses and other liabilities |
5,217 |
(5,872) |
|
Deferred revenue |
(8,262) |
(19,144) |
|
Net cash provided by operating activities |
49,742 |
32,082 |
|
Cash flows from investing activities |
|||
Purchases of marketable securities |
(113,593) |
(48,787) |
|
Maturities of marketable securities |
38,760 |
41,013 |
|
Sales of marketable securities |
4,597 |
52,643 |
|
Acquisitions, net of cash acquired |
— |
(45,095) |
|
Purchases of other investments |
— |
(2,500) |
|
Purchases of property and equipment |
(4,113) |
(2,754) |
|
Net cash used in investing activities |
(74,349) |
(5,480) |
|
Cash flows from financing activities |
|||
Investment from redeemable non-controlling interests |
2,111 |
2,223 |
|
Repayments of convertible senior notes |
— |
(2,439) |
|
Proceeds from the exercise of common stock options |
693 |
2,261 |
|
Proceeds from issuance of common stock for employee stock purchase plan |
9,973 |
10,477 |
|
Net cash provided by financing activities |
12,777 |
12,522 |
|
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash |
(864) |
(13) |
|
Net (decrease) increase in cash, cash equivalents, and restricted cash |
(12,694) |
39,111 |
|
Cash, cash equivalents, and restricted cash at beginning of year |
510,339 |
327,589 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ 497,645 |
$ 366,700 |
|
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated |
|||
Cash and cash equivalents |
$ 493,889 |
$ 362,509 |
|
Restricted cash included in other assets |
3,756 |
4,191 |
|
Total cash, cash equivalents, and restricted cash |
$ 497,645 |
$ 366,700 |
|
|||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
|||||||||||||
Three Months Ended |
|||||||||||||
(in thousands, except percentages and per share amounts) |
|||||||||||||
(unaudited) |
|||||||||||||
GAAP |
Stock-Based Compensation Expenses |
Amortization of Acquired Intangible Assets |
Amortization |
Other (2) |
Income Tax |
Non-GAAP |
|||||||
Costs and expenses: |
|||||||||||||
Costs of subscription |
$ 58,129 |
$ (4,514) |
$ (18,023) |
$ — |
$ — |
$ — |
$ 35,592 |
||||||
Costs of professional services and other |
22,699 |
(4,852) |
(1,938) |
— |
— |
— |
15,909 |
||||||
Gross profit |
58.8% |
4.8% |
10.2% |
0.0% |
0.0% |
0.0% |
73.8% |
||||||
Research and development |
43,710 |
(12,766) |
— |
— |
— |
— |
30,944 |
||||||
Sales and marketing |
100,953 |
(15,934) |
(12,746) |
— |
— |
— |
72,273 |
||||||
General and administrative |
42,138 |
(14,326) |
— |
— |
— |
— |
27,812 |
||||||
Income (loss) from operations |
(71,258) |
52,392 |
32,707 |
— |
— |
— |
13,841 |
||||||
Operating margin |
(36.3)% |
26.7% |
16.7% |
0.0% |
0.0% |
0.0% |
7.0% |
||||||
Interest expense |
(3,476) |
— |
— |
1,765 |
— |
— |
(1,711) |
||||||
Other income (expense), net |
(3,716) |
— |
— |
— |
(1,288) |
— |
(5,004) |
||||||
Income (loss) before provision for (benefit from) income taxes |
(78,450) |
52,392 |
32,707 |
1,765 |
(1,288) |
— |
7,126 |
||||||
Provision for (benefit from) income taxes |
2,751 |
— |
— |
— |
— |
(926) |
1,825 |
||||||
Net income (loss) |
(81,201) |
52,392 |
32,707 |
1,765 |
(1,288) |
926 |
5,301 |
||||||
Net loss attributable to non-controlling interests |
(204) |
— |
— |
— |
— |
— |
(204) |
||||||
Adjustment attributable to non-controlling interests |
476 |
— |
— |
— |
476 |
— |
— |
||||||
Net income (loss) attributable to |
(81,473) |
52,392 |
32,707 |
1,765 |
(812) |
926 |
5,505 |
||||||
Net income (loss) per share, basic, attributable to |
$ (1.08) |
$ 0.07 |
|||||||||||
Net income (loss) per share, diluted, attributable to |
$ (1.08) |
$ 0.08 |
(1) |
GAAP net loss per share attributable to |
(2) |
Other consists of a gain on non-marketable investments and an adjustment attributable to redeemable non-controlling interests to its redemption amount. |
(3) |
During the three months ended |
|
|||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
|||||||||||
Three Months Ended |
|||||||||||
(in thousands, except percentages and per share amounts) |
|||||||||||
(unaudited) |
|||||||||||
GAAP |
Stock-Based Compensation Expenses |
Amortization of Acquired Intangible Assets |
Amortization of Debt Discount and Issuance Costs |
Loss on Conversion of Convertible Senior Notes |
Non-GAAP |
||||||
Costs and expenses: |
|||||||||||
Costs of subscription |
$ 51,025 |
$ (3,305) |
$ (13,886) |
$ — |
$ — |
$ 33,834 |
|||||
Costs of professional services and other |
28,702 |
(3,898) |
(6,522) |
— |
— |
18,282 |
|||||
Gross profit |
52.2% |
4.3% |
12.2% |
0.0% |
0.0% |
68.8% |
|||||
Research and development |
43,837 |
(10,663) |
— |
— |
— |
33,174 |
|||||
Sales and marketing |
77,843 |
(11,221) |
(13,132) |
— |
— |
53,490 |
|||||
General and administrative |
39,377 |
(18,205) |
— |
— |
— |
21,172 |
|||||
Income (loss) from operations |
(73,855) |
47,292 |
33,540 |
— |
— |
6,977 |
|||||
Operating margin |
(44.2)% |
28.3% |
20.1% |
0.0% |
0.0% |
4.2% |
|||||
Interest expense |
(29,103) |
— |
— |
27,390 |
— |
(1,713) |
|||||
Other income (expense), net |
535 |
— |
— |
— |
129 |
664 |
|||||
Income (loss) before provision for (benefit from) income taxes |
(102,423) |
47,292 |
33,540 |
27,390 |
129 |
5,928 |
|||||
Provision for (benefit from) income taxes |
(2,066) |
1,048 |
1,929 |
— |
— |
911 |
|||||
Net income (loss) attributable to |
(100,357) |
46,244 |
31,611 |
27,390 |
129 |
5,017 |
|||||
Net income (loss) per share, basic, attributable to Coupa |
$ (1.38) |
$ 0.07 |
|||||||||
Net income (loss) per share, diluted, attributable to Coupa |
$ (1.38) |
$ 0.07 |
(1) |
GAAP net loss per share attributable to |
|
||||
Reconciliation of GAAP Cash Flows from Operations to Adjusted Free Cash Flows and Adjusted Free Cash Flows Margin |
||||
(A Non-GAAP Financial Measure) |
||||
(in thousands, except percentages) |
||||
(unaudited) |
||||
Three Months Ended |
||||
2022 |
2021 |
|||
Net cash provided by operating activities |
$ 49,742 |
$ 32,082 |
||
Less: purchases of property and equipment |
(4,113) |
(2,754) |
||
Add: repayments of convertible senior notes attributable to debt discount |
— |
516 |
||
Adjusted free cash flows |
45,629 |
29,844 |
||
Divided by: total revenues |
$ 196,371 |
$ 166,929 |
||
Adjusted free cash flows margin |
23.2% |
17.9% |
||
Trailing Twelve Months Ended |
||||
2022 |
2021 |
|||
Net cash provided by operating activities |
$ 185,750 |
$ 94,876 |
||
Less: purchases of property and equipment |
(15,212) |
(10,647) |
||
Add: repayments of convertible senior notes attributable to debt discount |
821 |
17,321 |
||
Add: one-time payout of legacy unvested equity awards accelerated in conjunction with a business combination |
— |
19,428 |
||
Adjusted free cash flows |
171,359 |
120,978 |
||
Divided by: total revenues |
$ 754,731 |
$ 589,358 |
||
Adjusted free cash flows margin |
22.7% |
20.5% |
View original content to download multimedia:https://www.prnewswire.com/news-releases/coupa-software-reports-first-quarter-fiscal-2023-financial-results-301562135.html
SOURCE
Investor Relations: Ravin Bramhe, ir@coupa.com