Coupa Software Reports Fourth Quarter & Full Year Fiscal 2021 Financial Results

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Coupa Software Reports Fourth Quarter & Full Year Fiscal 2021 Financial Results
-- Record Quarterly Revenues of $164 Million, 47% Year-Over-Year Growth
-- Record Quarterly Calculated Billings of $270 Million, 49% Year-Over-Year Growth
-- Quarterly Operating Cash Flows and Adjusted Free Cash Flows of $20 Million and $38 Million, Respectively

SAN MATEO, Calif., March 16, 2021 /PRNewswire/ -- Coupa Software (NASDAQ: COUP) today announced financial results for its fourth quarter and fiscal year ended January 31, 2021.

"This year, we delivered record financial results across all key measures amid a difficult macroeconomic environment," said Rob Bernshteyn, chairman and chief executive officer at Coupa. "As part of our strategy to develop and own the Business Spend Management market, we continued to invest meaningfully into all areas of our business. We also made strategic acquisitions in supply chain design and planning, treasury, and the enhancement of our supplier diversity and travel and expense offerings.  We believe that we are now more optimally positioned than ever to deliver broad based global customer success."

Fourth Quarter Results:

  • Total revenues were $163.5 million, an increase of 47% compared to the same period last year. Subscription revenues were $134.9 million, an increase of 37% compared to the same period last year.
  • GAAP operating loss was $95.4 million, compared to a GAAP operating loss of $15.9 million for the same period last year. Non-GAAP operating income was $11.2 million, compared to a non-GAAP operating income of $13.3 million for the same period last year.
  • GAAP net loss was $61.4 million, compared to a GAAP net loss of $24.1 million for the same period last year. GAAP net loss per basic and diluted share was $0.85, compared to a GAAP net loss per basic and diluted share of $0.38 for the same period last year. Non-GAAP net income was $13.0 million, compared to a non-GAAP net income of $15.0 million for the same period last year. Non-GAAP net income per diluted share was $0.17, compared to non-GAAP net income per diluted share of $0.21 for the same period last year.
  • Operating cash flows and adjusted free cash flows were positive $20.4 million and $38.1 million, respectively.

Fiscal Year 2021 Results:

  • Total revenues were $541.6 million, an increase of 39% from the previous year. Subscription revenues were $470.3 million, an increase of 36% from the previous year.
  • GAAP operating loss was $166.6 million, compared to a GAAP operating loss of $73.4 million for the previous year. Non-GAAP operating income was $52.7 million, compared to a non-GAAP operating income of $31.9 million for the previous year.
  • GAAP net loss was $180.1 million, compared to a GAAP net loss of $90.8 million for the previous year. GAAP net loss per basic and diluted share was $2.63, compared to a GAAP net loss per basic and diluted share of $1.45 for the previous year. Non-GAAP net income was $55.7 million, compared to a non-GAAP net income of $36.6 million for the previous year. Non-GAAP net income per diluted share was $0.77, compared to non-GAAP net income per diluted share of $0.52 for the previous year.
  • Operating cash flows and adjusted free cash flows for the year ended January 31, 2021, were positive $78.2 million and $113.5 million, respectively.

See the section titled "Non-GAAP Financial Measures" and the reconciliation tables below for important information regarding the non-GAAP measures used by Coupa.

Business Outlook:

The following forward-looking statements reflect Coupa's expectations as of March 16, 2021.

First quarter of fiscal 2022:

  • Total revenues are expected to be $151.5 to $152.5 million.
  • Subscription revenues are expected to be $133.5 to $134.5 million.
  • Professional services and other revenues are expected to be approximately $18.0 million.
  • Non-GAAP loss from operations is expected to be $10.0 to $12.0 million.
  • Non-GAAP net loss per basic and diluted share is expected to be $0.18 to $0.21 per share.
  • Basic and diluted weighted average share count is expected to be approximately 73.0 million shares.

Full year fiscal 2022:

  • Total revenues are expected to be $675.0 to $678.0 million.
  • Non-GAAP loss from operations is expected to be $7.0 to $10.0 million.
  • Non-GAAP net loss per basic and diluted share is expected to be $0.23 to $0.27 per share.
  • Basic and diluted weighted average share count is expected to be approximately 73.5 million shares.

Coupa has not reconciled its expectations for non-GAAP income or loss from operations to GAAP loss from operations, or non-GAAP net income or loss per share to GAAP net loss per share because certain items excluded from non-GAAP income or loss from operations and non-GAAP net income or loss, such as charges related to stock-based compensation expenses, amortization of acquired intangible assets, the change in fair value of contingent consideration related to an acquisition, amortization of debt discount and issuance costs, gain or loss on conversion of convertible senior 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 company's offerings of convertible notes in 2018, 2019 and 2020, respectively, cannot be reasonably calculated or predicted at this time. The effect of these items may be significant.

Recent Business Highlights:

  • Welcomed many new customers into the Coupa community in Q4, including the following: 8x8, AbCellera Biologics, Adverum Biotechnologies, AHS Residential, Amaggi Group, Aspen Pharmacare, Ball Corporation, Bank of New Zealand, Carvana, Checkout, Cloudera, Commonwealth Care Alliance, Curology, Daniels Health, Diagma, Egnyte, Fresno Economic Opportunities Commission, Galderma Pharmaceutical, Heathrow Airport, Highspot, Honda Research Institute, Hotmart Technology, IDEAYA Biosciences, INEOS Styrolution, International Development Research Centre, NAVBLUE, NorthPower, PagerDuty, Prodigios Interactivos, REEF Technology, Repare Therapeutics, REVOLUTION Medicines, RSG Group, SCO Family of Services, Sigilon Therapeutics, Stuttgarter Straßenbahnen, SUEZ UK, Synchrony Financial, Tronox, Tyson Foods, and Waystar.
  • Acquired Pana Industries, Inc., a leading travel booking company.
  • Named a Leader in six IDC MarketScape reports: Procurement, Spend Analysis, Sourcing, Procure-to-Pay, Supplier Relationship Management, and Buy-Side Contract.
  • Hosted Virtual 1TC Event, which pulls together treasury and other finance experts, customers, prospects, and partners.
  • Included on Fast Company's Most Innovative Company List.
  • Listed among Fortune's 100 Best Medium Workplaces.

Conference Call Information:

Coupa will host a conference call and live webcast for analysts and investors at 4:30 p.m. Eastern time today.

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 U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures, including non-GAAP operating income, non-GAAP net income and adjusted free cash flows. Coupa believes these non-GAAP measures are useful in evaluating its operating performance and Coupa's management regularly reviews and uses these measures for business planning and other purposes.

Non-GAAP operating income and non-GAAP net income exclude certain items from the corresponding GAAP measures, including: stock-based compensation expenses; amortization of acquired intangible assets; the change in fair value of contingent consideration related to an acquisition; amortization of debt discount and issuance costs; gain or loss on conversion of convertible senior notes; and related tax effects, including non-recurring income tax adjustments. In addition, the weighted average diluted shares figure used to calculate non-GAAP net income per share reflects the anti-dilutive impact of the capped call transactions entered into in connection with the company's offerings of convertible notes.

Adjusted free cash flows is defined as net cash provided by operating activities, less purchases of property and equipment, plus repayments of convertible senior notes attributable to debt discount, plus one-time payout of legacy unvested equity awards accelerated in conjunction with a business combination. Coupa has the ability to settle obligations related to its senior notes through the use of cash, shares of its common stock, or a combination of both, at its election.

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, 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: the uncertain impact of the COVID-19 pandemic; Coupa has a limited operating history at its current scale, which makes it difficult to predict its future operating results; 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; the impact of acquisitions on its business, such as integration issues, assumption of unknown or unforeseen liabilities and ability to retain customers; 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; the markets in which Coupa participates are intensely competitive; Coupa's business depends in part on its customers renewing their subscriptions and purchasing additional subscriptions; if Coupa fails to develop widespread brand awareness cost-effectively, its business may suffer; risks and liabilities related to breach of its security measures or unauthorized access to customer data; and the impact of foreign currency exchange rates and global economic conditions.

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 8, 2020, 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 16, 2021. 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 empowers companies around the world with the visibility and control they need to spend smarter and safer. To learn more about how Coupa can help you spend smarter, visit 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

January 31,

 

Year Ended

January 31,

   
 

2021

 

2020

 

2021

 

2020

Revenues:

             

Subscription

$

134,942

   

$

98,647

   

$

470,341

   

$

345,261

 

Professional services and other

28,602

   

12,805

   

71,302

   

44,458

 

Total revenues

163,544

   

111,452

   

541,643

   

389,719

 

Cost of revenues:

             

Subscription

48,039

   

26,235

   

147,374

   

89,452

 

Professional services and other

31,598

   

13,868

   

74,327

   

49,764

 

Total cost of revenues

79,637

   

40,103

   

221,701

   

139,216

 

Gross profit

83,907

   

71,349

   

319,942

   

250,503

 

Operating expenses:

             

Research and development

46,383

   

25,251

   

133,842

   

93,089

 

Sales and marketing

86,481

   

42,641

   

236,312

   

155,216

 

General and administrative

46,400

   

19,326

   

116,341

   

75,623

 

Total operating expenses

179,264

   

87,218

   

486,495

   

323,928

 

Loss from operations

(95,357)

   

(15,869)

   

(166,553)

   

(73,425)

 

Interest expense

(29,451)

   

(12,784)

   

(91,271)

   

(37,658)

 

Interest income and other, net

4,488

   

2,837

   

13,321

   

9,316

 

Loss before benefit from income taxes

(120,320)

   

(25,816)

   

(244,503)

   

(101,767)

 

Benefit from income taxes

(58,933)

   

(1,763)

   

(64,386)

   

(10,935)

 

Net loss

$

(61,387)

   

$

(24,053)

   

$

(180,117)

   

$

(90,832)

 

Net loss per share, basic and diluted

$

(0.85)

   

$

(0.38)

   

$

(2.63)

   

$

(1.45)

 

Weighted-average number of shares used in computing net loss per
share, basic and diluted

72,160

   

63,999

   

68,559

   

62,484

 

 

 

COUPA SOFTWARE INCORPORATED

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

(unaudited)

 

 
 

January 31,
2021

 

January 31,
2020

Assets

     

Current assets:

     

Cash and cash equivalents

$

323,284

   

$

268,045

 

Marketable securities

283,036

   

499,160

 

Accounts receivable, net of allowances

196,009

   

118,508

 

Prepaid expenses and other current assets

36,381

   

31,636

 

Deferred commissions, current portion

15,541

   

11,982

 

Total current assets

854,251

   

929,331

 

Property and equipment, net

28,266

   

18,802

 

Deferred commissions, net of current portion

36,832

   

30,921

 

Goodwill

1,480,847

   

442,112

 

Intangible assets, net

632,173

   

128,660

 

Operating lease right-of-use assets

41,305

   

32,026

 

Other assets

31,491

   

12,221

 

Total assets

$

3,105,165

   

$

1,594,073

 

Liabilities, Temporary Equity and Stockholders' Equity

     

Current liabilities:

     

Accounts payable

$

4,831

   

$

3,517

 

Accrued expenses and other current liabilities

80,271

   

54,245

 

Deferred revenue, current portion

356,115

   

257,692

 

Convertible senior notes, net

609,068

   

187,115

 

Operating lease liabilities, current portion

11,222

   

8,199

 

Total current liabilities

1,061,507

   

510,768

 

Convertible senior notes, net

897,525

   

562,612

 

Deferred revenue, net of current portion

5,773

   

4,091

 

Operating lease liabilities, net of current portion

31,845

   

25,490

 

Other liabilities

67,915

   

28,620

 

Total liabilities

2,064,565

   

1,131,581

 

Temporary equity

369

   

16,835

 

Stockholders' equity:

     

Preferred stock, $0.0001 par value per share

   

 

Common stock, $0.0001 par value per share

7

   

7

 

Additional paid-in capital

1,556,865

   

790,468

 

Accumulated other comprehensive income

9,165

   

871

 

Accumulated deficit

(525,806)

   

(345,689)

 

Total stockholders' equity

1,040,231

   

445,657

 

Total liabilities, temporary equity and stockholders' equity

$

3,105,165

   

$

1,594,073

 

 

 

COUPA SOFTWARE INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

   
 

Year Ended

January 31,

 
 

2021

 

2020

Cash flows from operating activities

     

Net loss

$

(180,117)

   

$

(90,832)

 

Adjustments to reconcile net loss to net cash provided by operating activities:

     

Depreciation and amortization

72,105

   

28,553

 

Amortization of premium on marketable securities, net

1,038

   

325

 

Amortization of deferred commissions

14,704

   

9,556

 

Amortization of debt discount and issuance costs

86,541

   

35,922

 

Stock-based compensation

149,423

   

81,376

 

Gain on conversion of convertible senior notes

(3,154)

   

 

Repayments of convertible senior notes attributable to debt discount

(27,409)

   

 

Other

3,761

   

(1,381)

 

Changes in operating assets and liabilities net of effects from acquisitions:

     

Accounts receivable

(36,757)

   

(11,154)

 

Prepaid expenses and other current assets

2,954

   

(16,380)

 

Other assets

6,786

   

9,176

 

Deferred commissions

(24,157)

   

(26,231)

 

Accounts payable

(851)

   

(3,720)

 

Accrued expenses and other liabilities

(65,995)

   

(20,727)

 

Deferred revenue

79,330

   

73,673

 

Net cash provided by operating activities

78,202

   

68,156

 

Cash flows from investing activities

     

Purchases of marketable securities

(1,017,751)

   

(583,151)

 

Maturities of marketable securities

396,595

   

66,363

 

Sale of marketable securities

835,123

   

199,314

 

Acquisitions, net of cash acquired

(863,597)

   

(308,406)

 

Purchases of property and equipment

(11,492)

   

(11,970)

 

Net cash used in investing activities

(661,122)

   

(637,850)

 

Cash flows from financing activities

     

Proceeds from issuance of convertible senior notes, net of issuance costs

1,355,066

   

786,157

 

Purchase of capped calls

(192,786)

   

(118,738)

 

Repayments of convertible senior notes

(555,352)

   

 

Proceeds from the exercise of common stock options

19,232

   

17,781

 

Proceeds from issuance of common stock for employee stock purchase plan

15,631

   

11,455

 

Net cash provided by financing activities

641,791

   

696,655

 

Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash

438

   

 

Net increase in cash, cash equivalents, and restricted cash

59,309

   

126,961

 

Cash, cash equivalents, and restricted cash at beginning of year

268,280

   

141,319

 

Cash, cash equivalents, and restricted cash at end of period

$

327,589

   

$

268,280

 

Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets

     

Cash and cash equivalents

$

323,284

   

$

268,045

 

Restricted cash included in other assets

4,305

   

235

 

Total cash, cash equivalents, and restricted cash

$

327,589

   

$

268,280

 
 

 

 

COUPA SOFTWARE INCORPORATED

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended January 31, 2021

(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

 

Other

Expenses (2)

 

Non-GAAP

Costs and expenses:

                         

Costs of subscription

$

48,039

   

$

(3,797)

   

$

(13,191)

   

$

   

$

   

$

   

$

31,051

 

Costs of professional services and
other

31,598

   

(7,260)

   

(6,452)

   

   

   

   

17,886

 

Gross profit

51.3

%

 

6.8

%

 

12.0

%

 

0.0

%

 

0.0

%

 

0.0

%

 

70.1

%

                           

Research and development

46,383

   

(16,554)

   

   

   

   

   

29,829

 

Sales and marketing

86,481

   

(21,856)

   

(12,916)

   

   

   

   

51,709

 

General and administrative

46,400

   

(24,532)

   

   

   

   

   

21,868

 

Income (loss) from operations

(95,357)

   

73,999

   

32,559

   

   

   

   

11,201

 

Operating margin

(58.3)

%

 

45.2

%

 

19.9

%

 

0.0

%

 

0.0

%

 

0.0

%

 

6.8

%

                           

Interest expense

(29,451)

   

   

   

27,814

   

   

   

(1,637)

 

Interest income and other, net

4,488

   

   

   

   

12

   

   

4,500

 

Income (loss) before provision for (benefit
from) income taxes

(120,320)

   

73,999

   

32,559

   

27,814

   

12

   

   

14,064

 

Provision for (benefit from) income taxes

(58,933)

   

1,763

   

747

   

7,103

   

   

50,378

   

1,058

 

Net income (loss)

(61,387)

   

72,236

   

31,812

   

20,711

   

12

   

(50,378)

   

13,006

 
                           

Net income (loss) per share, basic (1)

$

(0.85)

                       

$

0.18

 

Net income (loss) per share, diluted (1)

$

(0.85)

                       

$

0.17

 

(1)

GAAP net loss per share is calculated based upon 72,160 basic and diluted weighted-average shares of common stock. Non-GAAP net income per share is calculated based upon
72,160 basic and 77,013 diluted weighted-average shares of common stock. The company uses the treasury stock method to calculate the non-GAAP diluted shares related to the
convertible notes which reflects any anti-dilutive impact of the capped call transactions entered into in connection with the convertible notes.

(2)

Other expenses consists of the release of valuation allowances against deferred tax assets.

 

 

COUPA SOFTWARE INCORPORATED

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended January 31, 2020

(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

 

Other

Expenses (2)

 

Non-GAAP

Costs and expenses:

                     

Costs of subscription

$

26,235

   

$

(1,937)

   

$

(5,707)

   

$

   

$

   

$

18,591

 

Costs of professional services and other

13,868

   

(2,192)

   

(200)

   

   

   

11,476

 

Gross profit

64.0

%

 

3.7

%

 

5.3

%

 

0.0

%

 

0.0

%

 

73.0

%

                       

Research and development

25,251

   

(5,519)

   

   

   

   

19,732

 

Sales and marketing

42,641

   

(6,318)

   

(1,992)

   

   

   

34,331

 

General and administrative

19,326

   

(5,342)

   

   

   

   

13,984

 

Income (loss) from operations

(15,869)

   

21,308

   

7,899

   

   

   

13,338

 

Operating margin

(14.2)

%

 

19.1

%

 

7.1

%

 

0.0

%

 

0.0

%

 

12.0

%

                       

Interest expense

(12,784)

   

   

   

12,572

   

   

(212)

 

Interest income and other, net

2,837

   

   

   

   

   

2,837

 

Income (loss) before provision for (benefit from) income
taxes

(25,816)

   

21,308

   

7,899

   

12,572

   

   

15,963

 

Provision for (benefit from) income taxes

(1,763)

   

531

   

(135)

   

   

2,331

   

964

 

Net income (loss)

(24,053)

   

20,777

   

8,034

   

12,572

   

(2,331)

   

14,999

 
                       

Net income (loss) per share, basic (1)

$

(0.38)

                   

$

0.23

 

Net income (loss) per share, diluted (1)

$

(0.38)

                   

$

0.21

 

(1)

GAAP net loss per share is calculated based upon 63,999 basic and diluted weighted-average shares of common stock. Non-GAAP net income per share is calculated based upon
63,999 basic and 72,235 diluted weighted-average shares of common stock. The company uses the treasury stock method to calculate the non-GAAP diluted shares related to the
convertible notes which reflects any anti-dilutive impact of the capped call transactions entered into in connection with the convertible notes.

(2)

Other expenses consists of the release of valuation allowances against deferred tax assets.

 

 

COUPA SOFTWARE INCORPORATED

Reconciliation of GAAP to Non-GAAP Financial Measures

Year Ended January 31, 2021

(in thousands, except percentages and per share amounts)

(unaudited)

 

 

GAAP

 

Stock-Based
Compensation
Expenses

 

Amortization of
Acquired
Intangible Assets

 

Change in Fair
Value of
Contingent
Consideration
Liability

 

Amortization of
Debt Discount and
Issuance Costs

 

Gain on
Conversion of
Convertible
Senior Notes

 

Other

Expenses (2)

 

Non-GAAP

Costs and expenses:

                             

Costs of subscription

$

147,374

   

$

(11,438)

   

$

(35,561)

   

$

   

$

   

$

   

$

   

$

100,375

 

Costs of professional services and other

74,327

   

(15,563)

   

(7,052)

   

   

   

   

   

51,712

 

Gross profit

59.1

%

 

5.0

%

 

7.9

%

 

0.0

%

 

0.0

%

 

0.0

%

 

0.0

%

 

71.9

%

                               

Research and development

133,842

   

(37,685)

   

   

   

   

   

   

96,157

 

Sales and marketing

236,312

   

(48,414)

   

(20,284)

   

   

   

   

   

167,614

 

General and administrative

116,341

   

(55,750)

   

   

12,500

   

   

   

   

73,091

 

Income (loss) from operations

(166,553)

   

168,850

   

62,897

   

(12,500)

   

   

   

   

52,694

 

Operating margin

(30.7)

%

 

31.2

%

 

11.6

%

 

(2.3)

%

 

0.0

%

 

0.0

%

 

0.0

%

 

9.7

%

                               

Interest expense

(91,271)

   

   

   

   

86,541

   

   

   

(4,730)

 

Interest income and other, net

13,321

   

   

   

   

   

(3,154)

   

   

10,167

 

Income (loss) before provision for (benefit from) income taxes

(244,503)

   

168,850

   

62,897

   

(12,500)

   

86,541

   

(3,154)

   

   

58,131

 

Provision for (benefit from) income taxes

(64,386)

   

6,084

   

432

   

   

9,588

   

   

50,688

   

2,406

 

Net income (loss)

(180,117)

   

162,766

   

62,465

   

(12,500)

   

76,953

   

(3,154)

   

(50,688)

   

55,725

 
                               

Net income (loss) per share, basic (1)

$

(2.63)

                           

$

0.81

 

Net income (loss) per share, diluted (1)

$

(2.63)

                           

$

0.77

 

(1)

GAAP net loss per share is calculated based upon 68,559 basic and diluted weighted-average shares of common stock. Non-GAAP net income per share is calculated based upon
68,559 basic and 72,692 diluted weighted-average shares of common stock. The company uses the treasury stock method to calculate the non-GAAP diluted shares related to the
convertible notes which reflects any anti-dilutive impact of the capped call transactions entered into in connection with the convertible notes.

(2)

Other expenses consists of the release of valuation allowances against deferred tax assets.

 

 

COUPA SOFTWARE INCORPORATED

Reconciliation of GAAP to Non-GAAP Financial Measures

Year Ended January 31, 2020

(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

 

Other

Expenses (2)

 

Non-GAAP

Costs and expenses:

                     

Costs of subscription

$

89,452

   

$

(6,982)

   

$

(17,242)

   

$

   

$

   

$

65,228

 

Costs of professional services and other

49,764

   

(7,773)

   

(400)

   

   

   

41,591

 

Gross profit

64.3

%

 

3.8

%

 

4.5

%

 

0.0

%

 

0.0

%

 

72.6

%

                       

Research and development

93,089

   

(20,159)

   

   

   

   

72,930

 

Sales and marketing

155,216

   

(23,352)

   

(6,334)

   

   

   

125,530

 

General and administrative

75,623

   

(23,110)

   

   

   

   

52,513

 

Income (loss) from operations

(73,425)

   

81,376

   

23,976

   

   

   

31,927

 

Operating margin

(18.8)

%

 

20.9

%

 

6.2

%

 

0.0

%

 

0.0

%

 

8.2

%

                       

Interest expense

(37,658)

   

   

   

35,922

   

   

(1,736)

 

Interest income and other, net

9,316

   

   

   

   

   

9,316

 

Income (loss) before provision for (benefit from) income
taxes

(101,767)

   

81,376

   

23,976

   

35,922

   

   

39,507

 

Provision for (benefit from) income taxes

(10,935)

   

2,328

   

(504)

   

   

12,002

   

2,891

 

Net income (loss)

(90,832)

   

79,048

   

24,480

   

35,922

   

(12,002)

   

36,616

 
                       

Net income (loss) per share, basic (1)

$

(1.45)

                   

$

0.59

 

Net income (loss) per share, diluted (1)

$

(1.45)

                   

$

0.52

 

(1)

GAAP net loss per share is calculated based upon 62,484 basic and diluted weighted-average shares of common stock. Non-GAAP net income per share is calculated based upon
62,484 basic and 69,933 diluted weighted-average shares of common stock. The company uses the treasury stock method to calculate the non-GAAP diluted shares related to the
convertible notes which reflects any anti-dilutive impact of the capped call transactions entered into in connection with the convertible notes.

(2)

Other expenses consists of the release of valuation allowances against deferred tax assets.

 

 

COUPA SOFTWARE INCORPORATED

Reconciliation of GAAP Cash Flows from Operations to Adjusted Free Cash Flows

(A Non-GAAP Financial Measure)

(in thousands)

(unaudited)

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2021

 

2020

 

2021

 

2020

Net cash provided by operating activities

$

20,404

   

$

22,279

   

$

78,202

   

$

68,156

 

Less: purchases of property and equipment

(1,933)

   

(2,108)

   

(11,492)

   

(11,970)

 

Add: repayments of convertible senior notes attributable to debt discount

201

   

   

27,409

   

 

Add: one-time payout of legacy unvested equity awards accelerated in conjunction with a business
combination

19,428

   

   

19,428

   

 

Adjusted free cash flows

$

38,100

   

$

20,171

   

$

113,547

   

$

56,186

 

 

 

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SOURCE Coupa Software

Investor Relations: Steven Horwitz, (650) 338-1340, ir@coupa.com, or Media Contact: Danielle Gazitt, (917) 952-7484, Danielle.gazitt@coupa.com