- 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
SAN
MATEO, Calif., June 6, 2022
/PRNewswire/ -- Coupa Software (NASDAQ: COUP) today announced
financial results for its first fiscal quarter ended April 30,
2022.
"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
Rob Bernshteyn, chairman and chief
executive officer at Coupa. "Company leaders continue to recognize
the importance and value of back office transformation. Our
comprehensive platform acts as a single source of truth to provide
our customers with the data and insights necessary to maximize
every dollar of business spend."
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
to Coupa Software Incorporated was $1.08, compared to $1.38 for the same period last year. Non-GAAP net
income attributable to Coupa 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 to Coupa
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 June 6, 2022.
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 Coupa Software
Incorporated to GAAP net loss per share attributable to Coupa
Software Incorporated because certain items are excluded from
non-GAAP income from operations and non-GAAP net income per diluted
share attributable to Coupa Software Incorporated cannot be
reasonably calculated or predicted at this time. Such exclusions
consist of, charges related to stock-based compensation,
amortization of acquired intangible assets, amortization of debt
issuance costs, gain or loss on conversion of convertible senior
notes, gain or loss on non-marketable investments, the adjustment
attributable to redeemable non-controlling interests, non-recurring
income tax adjustments, and income tax effects. The effect of these
items may be significant.
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, and ZimVie 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 include
ADM, AstraZeneca, Farfetch, Grupo Bafar, Mars Vet Health,
Mastercard, Primetals, REI, Saga, Saint-Gobain, Sonoco, Tearfund,
World Vision, and Zurich
- 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 by Great 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 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 attributable to Coupa Software
Incorporated, non-GAAP net income per basic and diluted share
attributable to Coupa Software Incorporated, adjusted free cash
flows and adjusted free cash flows margin. 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 attributable
to Coupa Software Incorporated exclude certain items from the
corresponding GAAP measures, including: stock-based compensation,
amortization of acquired intangible assets, amortization of debt
issuance costs, gain or loss on conversion of convertible senior
notes, gain or loss on non-marketable investments, the adjustment
attributable to redeemable non-controlling interests, non-recurring
income tax adjustments, and income tax effects, and prior to the
adoption of ASU 2020-06 on February 1,
2022, amortization of debt discount costs. In addition, the
weighted average diluted shares figure used to calculate non-GAAP
net income per share attributable to Coupa Software Incorporated
reflects the anti-dilutive impact of the if-converted method
related to the convertible notes, if any.
Beginning in the three months ended April
30, 2022, we utilize a fixed long-term projected tax rate in
our computation of the non-GAAP income tax provision to provide
better consistency across the reporting periods. In projecting this
long-term non-GAAP tax rate, we utilize a three-year financial
projection that excludes the direct impact of stock-based
compensation, amortization of acquired intangible assets, and
amortization of debt issuance costs. The projected rate considers
other factors such as our current operating structure, and existing
tax positions in various jurisdictions. Additionally, due to
historic profitability on a non-GAAP basis, there are no valuation
allowances recorded against the non-GAAP deferred tax assets
globally. We will periodically reevaluate the projected long-term
tax rate, as necessary, for significant events, based on our
ongoing analysis of relevant tax law changes, material changes in
the forecasted geographic earnings mix, and any significant
acquisitions.
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 February 1, 2022, 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. Adjusted
free cash flow margin is defined as adjusted free cash flows
divided by total revenues.
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 Ukraine, inflation
and the COVID-19 pandemic; Coupa has a limited operating history at
its current scale, which makes it difficult to predict its future
operating results; Coupa may not be able to manage its recent rapid
growth effectively; risks related to past and future business
acquisitions, including their integration with Coupa's existing
business model, operations and culture; 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; Coupa may not be successful in expanding its sales
efforts or developing widespread brand awareness in a
cost-effective manner; 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 annual report on
Form 10-K filed with the Securities and Exchange Commission (SEC)
on March 16, 2022, 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 June 6, 2022. 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 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.
COUPA SOFTWARE
INCORPORATED
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
(unaudited)
|
|
Three Months Ended
April 30,
|
|
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 Coupa Software
Incorporated
|
$
(81,473)
|
|
$
(100,357)
|
Net loss per share,
basic and diluted, attributable to Coupa Software
Incorporated
|
$
(1.08)
|
|
$
(1.38)
|
Weighted-average number
of shares used in computing net loss per share,basic and
diluted
|
75,183
|
|
72,865
|
|
|
COUPA SOFTWARE
INCORPORATED
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
except per share amounts)
|
(unaudited)
|
|
|
April 30, 2022
|
|
January 31, 2022
|
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
|
Goodwill
|
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, $0.0001 par value per share
|
—
|
|
—
|
Common stock, $0.0001 par value per share
|
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
|
|
|
COUPA SOFTWARE
INCORPORATED
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months Ended
April 30,
|
|
|
2022
|
|
2021
|
Cash flows from operating
activities
|
|
|
|
Net loss attributable
to Coupa Software Incorporated
|
$
(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
balance sheets
|
|
|
|
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
|
COUPA SOFTWARE
INCORPORATED
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
Three Months Ended
April 30, 2022
|
(in thousands,
except percentages and per share amounts)
|
(unaudited)
|
|
|
GAAP
|
|
Stock-Based
Compensation
Expenses
|
|
Amortization of
Acquired
Intangible Assets
|
|
Amortization
of Debt
Issuance Costs
|
|
Other (2)
|
|
Income Tax
Effects and
Adjustments (3)
|
|
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 Coupa Software Incorporated
|
(81,473)
|
|
52,392
|
|
32,707
|
|
1,765
|
|
(812)
|
|
926
|
|
5,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share, basic, attributable to Coupa Software
Incorporated (1)
|
$
(1.08)
|
|
|
|
|
|
|
|
|
|
|
|
$
0.07
|
Net income (loss) per
share, diluted, attributable to Coupa Software
Incorporated (1)
|
$
(1.08)
|
|
|
|
|
|
|
|
|
|
|
|
$
0.08
|
(1)
|
GAAP net loss per share
attributable to Coupa Software Incorporated is calculated based
upon 75,183 basic and diluted weighted-average shares of common
stock. Non-GAAP net income per share attributable to Coupa Software
Incorporated is calculated based upon 75,183 basic and 86,460
diluted weighted-average shares of common stock. As a result of our
adoption of ASU 2020-06 on February 1, 2022, the company uses the
if-converted method to calculate the non-GAAP net income per
diluted share attributable to Coupa Software Incorporated related
to the convertible notes, which was anti-dilutive for the three
months ended April 30, 2022. Approximately 9,738 shares related to
the convertible notes were therefore included in the non-GAAP
diluted share number, while the numerator used to compute this
measure was increased by $1.1 million for after-tax interest
expense savings related to our convertible notes.
|
(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 April 30, 2022, the company utilized a long-term projected
tax rate in the computation of the non-GAAP provision for income
taxes to provide better consistency across the interim reporting
periods.
|
COUPA SOFTWARE
INCORPORATED
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
Three Months Ended
April 30, 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
|
|
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 Coupa Software Incorporated
|
(100,357)
|
|
46,244
|
|
31,611
|
|
27,390
|
|
129
|
|
5,017
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share, basic, attributable to Coupa
Software
Incorporated (1)
|
$
(1.38)
|
|
|
|
|
|
|
|
|
|
$
0.07
|
Net income (loss) per
share, diluted, attributable to Coupa
Software Incorporated (1)
|
$
(1.38)
|
|
|
|
|
|
|
|
|
|
$
0.07
|
(1)
|
GAAP net loss per share
attributable to Coupa Software Incorporated is calculated based
upon 72,865 basic and diluted weighted-average shares of common
stock. Non-GAAP net income per share attributable to Coupa Software
Incorporated is calculated based upon 72,865 basic and 76,759
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.
|
COUPA SOFTWARE
INCORPORATED
|
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 April 30,
|
|
|
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 April
30,
|
|
|
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%
|
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SOURCE Coupa Software