SAN MATEO, Calif., Dec. 6,
2021 /PRNewswire/ -- Coupa Software (NASDAQ: COUP) today
announced financial results for its third fiscal quarter ended
October 31, 2021.
"We delivered another strong quarter with record revenue and
profitability," said Rob Bernshteyn,
chairman and chief executive officer at Coupa. "As demonstrated by
our third quarter results, we are seeing strong adoption of the
Coupa platform as our customers continue to prioritize Business
Spend Management as a fundamental aspect of their go-forward
strategy. With the fourth quarter well under way, we continue to
leverage our Value-as-a-Service approach to add strategic customers
across many industries and of all sizes."
Third Quarter Results:
- Total revenues were $185.8
million, an increase of 40% compared to the same period last
year. Subscription revenues were $164.7
million, an increase of 40% compared to the same period last
year.
- GAAP operating loss was $56.1
million, compared to $33.6
million for the same period last year. Non-GAAP operating
income was $27.9 million, compared to
$14.3 million for the same period
last year.
- GAAP net loss attributable to Coupa Software Incorporated was
$91.2 million, compared to
$60.8 million for the same period
last year. GAAP net loss per basic and diluted share attributable
to Coupa Software Incorporated was $1.23, compared to $0.88 for the same period last year. Non-GAAP net
income attributable to Coupa Software Incorporated was $23.5 million, compared to $13.0 million for the same period last year.
Non-GAAP net income per diluted share attributable to Coupa
Software Incorporated was $0.31,
compared to $0.18 for the same period
last year.
- Operating cash flows and adjusted free cash flows were positive
$31.0 million and $28.2 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 December 6, 2021.
Fourth quarter of fiscal 2022:
- Total revenues are expected to be $185.0 to $186.0
million.
- Subscription revenues are expected to be $166.0 to $167.0
million.
- Professional services and other revenues are expected to be
approximately $19.0 million.
- Non-GAAP income from operations is expected to be $8.0 to $10.0
million.
- Non-GAAP net income per diluted share attributable to Coupa
Software Incorporated is expected to be $0.03 to $0.05 per
share.
- Diluted weighted average share count is expected to be
approximately 77.0 million shares.
Full year fiscal 2022:
- Total revenues are expected to be $717.0 to $718.0
million.
- Non-GAAP income from operations is expected to be $70.0 to $72.0
million.
- Non-GAAP net income per diluted share attributable to Coupa
Software Incorporated is expected to be $0.66 to $0.69 per
share.
- Diluted weighted average share count is expected to be
approximately 76.5 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 excluded from non-GAAP
income from operations and non-GAAP net income per diluted share
attributable to Coupa Software Incorporated, such as charges
related to stock-based compensation expenses, amortization of
acquired intangible assets, amortization of debt discount and
issuance costs, gain or loss on conversion of convertible senior
notes, the adjustment attributable to redeemable non-controlling
interests, 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 Q3,
including the following: Angi, Aptim Holdings, Atr, Capsida
Biotherapeutics, Compass Minerals International, Covetrus, DEVK
Versicherungen, EDEKA Handelsgesellschaft Nord, Endeavor Group
Limited, Orbia Advance Corporation, Softbank, and Yazaki North
America.
- Named a Gartner® Magic Quadrant™ Leader for P2P Suites for the
sixth consecutive time1
- Named a leader in ten Spend Matters SolutionMaps, covering
every area of Source-to-Pay2
- Named a Best Led Workplace in 2021 by Inc3
- Became a Globally Certified Great Place to Work across the US,
UK, India, Germany, and Ireland for 2021-20224
- Named to Fortune's 2021 Future 50 list5
- Awarded a Silver medal sustainability rating from EcoVadis
- Debuted its campaign, "Behold the Power of Spend" at the World
Series, F-1, Premier League, and Bundesliga events
- Opened registration for its 2022 global Business Spend
Management (BSM) community conference Inspire in North America and EMEA
- Hosted its annual Global Volunteer Day with well over 500
employees participating across 35 offices
- Hosted a virtual panel "Women of Impact: Own Your Career" put
on by Coupa Empower
- Hosted a Supply Chain Symposium in London bringing together supply chain leaders
from across the UK
- Welcomed supply chain risk management and operational
resilience company Interos to its portfolio of Coupa Ventures
investments
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
(loss) income, non-GAAP net (loss) income attributable to Coupa
Software Incorporated, non-GAAP net (loss) income per basic and
diluted share attributable to Coupa Software Incorporated, 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 (loss) income and non-GAAP net (loss) income
attributable to Coupa Software Incorporated 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; the adjustment
attributable to redeemable non-controlling interests; 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 attributable to Coupa
Software Incorporated 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, 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: the uncertain impact of the COVID-19 pandemic,
including new variants such as the Delta and Omicron variants;
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; the impact of foreign
currency exchange rates and global economic conditions; and risks
relating to analyst coverage of its stock.
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 September 8, 2021, 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 December 6, 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.
1Gartner, "2021 Magic Quadrant™ for Procure-to-Pay
Suites", October 27,
2021
2Spend Matters, "Spend Matters
Almanac", October 8,
2021
3Inc, "Introducing the Best
Workplaces of 2021", November 30,
2021
4Great Place to Work, "Certified™
Companies - Best Companies to Work for 2021", July 2021
5Fortune, "The
Future 50: Growth stocks to bet on in an unpredictable world",
December 2, 2021
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
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(in thousands,
except per share amounts)
|
|
(unaudited)
|
|
|
Three Months
Ended
October
31,
|
|
Nine Months
Ended
October
31,
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Subscription
|
$
|
164,745
|
|
|
$
|
118,083
|
|
|
$
|
461,079
|
|
|
$
|
335,399
|
|
|
Professional services
and other
|
21,071
|
|
|
14,881
|
|
|
70,912
|
|
|
42,700
|
|
|
Total
revenues
|
185,816
|
|
|
132,964
|
|
|
531,991
|
|
|
378,099
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Subscription
|
52,279
|
|
|
36,528
|
|
|
154,701
|
|
|
99,335
|
|
|
Professional services
and other
|
25,341
|
|
|
14,259
|
|
|
81,865
|
|
|
42,729
|
|
|
Total cost of
revenues
|
77,620
|
|
|
50,787
|
|
|
236,566
|
|
|
142,064
|
|
|
Gross
profit
|
108,196
|
|
|
82,177
|
|
|
295,425
|
|
|
236,035
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
39,990
|
|
|
30,528
|
|
|
125,625
|
|
|
87,459
|
|
|
Sales and
marketing
|
83,779
|
|
|
53,204
|
|
|
237,902
|
|
|
149,831
|
|
|
General and
administrative
|
40,513
|
|
|
32,092
|
|
|
116,139
|
|
|
69,941
|
|
|
Total operating
expenses
|
164,282
|
|
|
115,824
|
|
|
479,666
|
|
|
307,231
|
|
|
Loss from
operations
|
(56,086)
|
|
|
(33,647)
|
|
|
(184,241)
|
|
|
(71,196)
|
|
|
Interest
expense
|
(31,130)
|
|
|
(29,308)
|
|
|
(90,854)
|
|
|
(61,820)
|
|
|
Other income
(expense), net
|
(1,298)
|
|
|
746
|
|
|
(2,746)
|
|
|
8,833
|
|
|
Loss before benefit
from income taxes
|
(88,514)
|
|
|
(62,209)
|
|
|
(277,841)
|
|
|
(124,183)
|
|
|
Benefit from income
taxes
|
(476)
|
|
|
(1,411)
|
|
|
(2,697)
|
|
|
(5,453)
|
|
|
Net
loss
|
(88,038)
|
|
|
(60,798)
|
|
|
(275,144)
|
|
|
(118,730)
|
|
|
Net loss attributable
to redeemable non-controlling interests
|
(273)
|
|
|
—
|
|
|
(790)
|
|
|
—
|
|
|
Adjustment
attributable to redeemable non-controlling interests
|
3,438
|
|
|
—
|
|
|
8,673
|
|
|
—
|
|
|
Net loss
attributable to Coupa Software Incorporated
|
$
|
(91,203)
|
|
|
$
|
(60,798)
|
|
|
$
|
(283,027)
|
|
|
$
|
(118,730)
|
|
|
Net loss per share,
basic and diluted, attributable to Coupa Software
Incorporated
|
$
|
(1.23)
|
|
|
$
|
(0.88)
|
|
|
$
|
(3.85)
|
|
|
$
|
(1.76)
|
|
|
Weighted-average
number of shares used in computing net loss per share, basic and
diluted
|
74,133
|
|
|
68,941
|
|
|
73,514
|
|
|
67,349
|
|
|
COUPA SOFTWARE
INCORPORATED
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands,
except per share amounts)
|
|
(unaudited)
|
|
|
October 31,
2021
|
|
January 31,
2021
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
458,195
|
|
|
$
|
323,284
|
|
|
Marketable
securities
|
209,660
|
|
|
283,036
|
|
|
Accounts receivable,
net of allowances
|
179,278
|
|
|
196,009
|
|
|
Prepaid expenses and
other current assets
|
32,283
|
|
|
36,381
|
|
|
Deferred commissions,
current portion
|
18,848
|
|
|
15,541
|
|
|
Total current
assets
|
898,264
|
|
|
854,251
|
|
|
Property and
equipment, net
|
30,161
|
|
|
28,266
|
|
|
Deferred commissions,
net of current portion
|
42,623
|
|
|
36,832
|
|
|
Goodwill
|
1,515,141
|
|
|
1,480,847
|
|
|
Intangible assets,
net
|
543,628
|
|
|
632,173
|
|
|
Operating lease
right-of-use assets
|
38,183
|
|
|
41,305
|
|
|
Other
assets
|
35,853
|
|
|
31,491
|
|
|
Total
assets
|
$
|
3,103,853
|
|
|
$
|
3,105,165
|
|
|
Liabilities,
Redeemable Non-Controlling Interests, Other Temporary Equity and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
5,279
|
|
|
$
|
4,831
|
|
|
Accrued expenses and
other current liabilities
|
96,716
|
|
|
80,271
|
|
|
Deferred revenue,
current portion
|
352,198
|
|
|
356,115
|
|
|
Current portion of
convertible senior notes, net
|
633,641
|
|
|
609,068
|
|
|
Operating lease
liabilities, current portion
|
12,401
|
|
|
11,222
|
|
|
Total current
liabilities
|
1,100,235
|
|
|
1,061,507
|
|
|
Convertible senior
notes, net
|
952,285
|
|
|
897,525
|
|
|
Deferred revenue, net
of current portion
|
14,058
|
|
|
5,773
|
|
|
Operating lease
liabilities, net of current portion
|
27,174
|
|
|
31,845
|
|
|
Other
liabilities
|
68,210
|
|
|
67,915
|
|
|
Total
liabilities
|
2,161,962
|
|
|
2,064,565
|
|
|
Redeemable
non-controlling interests
|
10,044
|
|
|
—
|
|
|
Other temporary
equity
|
—
|
|
|
369
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock,
$0.0001 par value per share
|
—
|
|
|
—
|
|
|
Common stock, $0.0001
par value per share
|
7
|
|
|
7
|
|
|
Additional paid-in
capital
|
1,724,042
|
|
|
1,556,865
|
|
|
Accumulated other
comprehensive income
|
8,748
|
|
|
9,165
|
|
|
Accumulated
deficit
|
(800,950)
|
|
|
(525,806)
|
|
|
Total stockholders'
equity
|
931,847
|
|
|
1,040,231
|
|
|
Total liabilities,
redeemable non-controlling interests, other temporary equity and
stockholders' equity
|
$
|
3,103,853
|
|
|
$
|
3,105,165
|
|
|
COUPA SOFTWARE
INCORPORATED
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
Nine Months
Ended
October
31,
|
|
|
2021
|
|
2020
|
|
Cash flows from
operating activities
|
|
|
|
|
Net loss attributable
to Coupa Software Incorporated
|
$
|
(283,027)
|
|
|
$
|
(118,730)
|
|
|
Net loss and
adjustment attributable to redeemable non-controlling
interests
|
7,883
|
|
|
—
|
|
|
Net loss
|
(275,144)
|
|
|
(118,730)
|
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
109,900
|
|
|
36,529
|
|
|
Amortization of
premium on marketable securities, net
|
625
|
|
|
869
|
|
|
Amortization of
deferred commissions
|
13,335
|
|
|
10,102
|
|
|
Amortization of debt
discount and issuance costs
|
85,716
|
|
|
58,727
|
|
|
Stock-based
compensation
|
145,251
|
|
|
94,851
|
|
|
Loss (gain) on
conversion of convertible senior notes
|
357
|
|
|
(3,166)
|
|
|
Repayments of
convertible senior notes attributable to debt discount
|
(1,338)
|
|
|
(27,208)
|
|
|
Other
|
(3,204)
|
|
|
3,923
|
|
|
Changes in operating
assets and liabilities net of effects from acquisitions:
|
|
|
|
|
Accounts
receivable
|
21,433
|
|
|
22,519
|
|
|
Prepaid expenses and
other current assets
|
4,529
|
|
|
1,591
|
|
|
Other
assets
|
13,968
|
|
|
(2,730)
|
|
|
Deferred
commissions
|
(22,445)
|
|
|
(11,355)
|
|
|
Accounts
payable
|
500
|
|
|
(1,435)
|
|
|
Accrued expenses and
other liabilities
|
6,795
|
|
|
4,941
|
|
|
Deferred
revenue
|
3,630
|
|
|
(11,630)
|
|
|
Net cash provided
by operating activities
|
103,908
|
|
|
57,798
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Purchases of
marketable securities
|
(116,583)
|
|
|
(788,047)
|
|
|
Maturities of
marketable securities
|
94,142
|
|
|
351,973
|
|
|
Sales of marketable
securities
|
94,916
|
|
|
830,125
|
|
|
Acquisitions, net of
cash acquired
|
(46,719)
|
|
|
(94,121)
|
|
|
Purchases of other
investments
|
(10,000)
|
|
|
—
|
|
|
Purchases of property
and equipment
|
(10,256)
|
|
|
(9,559)
|
|
|
Net cash provided
by (used in) investing activities
|
5,500
|
|
|
290,371
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Investment from
redeemable non-controlling interests
|
2,223
|
|
|
—
|
|
|
Proceeds from issuance
of convertible senior notes, net of issuance costs
|
—
|
|
|
1,355,066
|
|
|
Purchase of capped
calls
|
—
|
|
|
(192,786)
|
|
|
Repayments of
convertible senior notes
|
(5,748)
|
|
|
(554,244)
|
|
|
Proceeds from the
exercise of common stock options
|
7,444
|
|
|
14,425
|
|
|
Proceeds from issuance
of common stock for employee stock purchase plan
|
21,626
|
|
|
15,631
|
|
|
Net cash provided
by financing activities
|
25,545
|
|
|
638,092
|
|
|
Effects of foreign
currency exchange rates on cash, cash equivalents, and restricted
cash
|
(178)
|
|
|
128
|
|
|
Net increase in cash,
cash equivalents, and restricted cash
|
134,775
|
|
|
986,389
|
|
|
Cash, cash
equivalents, and restricted cash at beginning of year
|
327,589
|
|
|
268,280
|
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
|
462,364
|
|
|
$
|
1,254,669
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the condensed
consolidated balance sheets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
458,195
|
|
|
$
|
1,251,006
|
|
|
Restricted cash
included in other assets
|
4,169
|
|
|
3,663
|
|
|
Total cash, cash
equivalents, and restricted cash
|
$
|
462,364
|
|
|
$
|
1,254,669
|
|
|
COUPA SOFTWARE
INCORPORATED
|
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
|
Three Months Ended
October 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
(2)
|
|
Non-GAAP
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of
subscription
|
$
|
52,279
|
|
|
$
|
(4,162)
|
|
|
$
|
(16,736)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31,381
|
|
|
Costs of professional
services and other
|
25,341
|
|
|
(4,729)
|
|
|
(3,642)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,970
|
|
|
Gross
profit
|
58.2
|
%
|
|
4.8
|
%
|
|
11.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
74.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
39,990
|
|
|
(11,357)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,633
|
|
|
Sales and
marketing
|
83,779
|
|
|
(13,217)
|
|
|
(13,140)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,422
|
|
|
General and
administrative
|
40,513
|
|
|
(16,994)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,519
|
|
|
Income (loss) from
operations
|
(56,086)
|
|
|
50,459
|
|
|
33,518
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,891
|
|
|
Operating
margin
|
(30.2)
|
%
|
|
27.2
|
%
|
|
18.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(31,130)
|
|
|
—
|
|
|
—
|
|
|
29,454
|
|
|
—
|
|
|
—
|
|
|
(1,676)
|
|
|
Other income
(expense), net
|
(1,298)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
228
|
|
|
—
|
|
|
(1,070)
|
|
|
Income (loss) before
provision for (benefit from) income taxes
|
(88,514)
|
|
|
50,459
|
|
|
33,518
|
|
|
29,454
|
|
|
228
|
|
|
—
|
|
|
25,145
|
|
|
Provision for
(benefit from) income taxes
|
(476)
|
|
|
733
|
|
|
1,629
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,886
|
|
|
Net income
(loss)
|
(88,038)
|
|
|
49,726
|
|
|
31,889
|
|
|
29,454
|
|
|
228
|
|
|
—
|
|
|
23,259
|
|
|
Net loss attributable
to non-controlling interests
|
(273)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(273)
|
|
|
Adjustment
attributable to non-controlling interests
|
3,438
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,438
|
|
|
—
|
|
|
Net income (loss)
attributable to Coupa Software Incorporated
|
(91,203)
|
|
|
49,726
|
|
|
31,889
|
|
|
29,454
|
|
|
228
|
|
|
3,438
|
|
|
23,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share, basic, attributable to Coupa Software
Incorporated (1)
|
$
|
(1.23)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.32
|
|
|
Net income (loss) per
share, diluted, attributable to Coupa Software Incorporated
(1)
|
$
|
(1.23)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.31
|
|
|
|
|
(1)
|
GAAP net loss per
share attributable to Coupa Software Incorporated is calculated
based upon 74,133 basic and diluted weighted-average shares of
common stock. Non-GAAP net income per share attributable to Coupa
Software Incorporated is calculated based upon 74,133 basic and
76,754 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 consists of an
adjustment attributable to redeemable non-controlling interests to
its redemption amount.
|
|
COUPA SOFTWARE
INCORPORATED
|
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
|
Three Months Ended
October 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
|
|
Loss
on
Conversion
of
Convertible
Senior
Notes
|
|
Non-GAAP
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of
subscription
|
$
|
36,528
|
|
|
$
|
(2,836)
|
|
|
$
|
(8,212)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,480
|
|
|
Costs of professional
services and other
|
14,259
|
|
|
(2,939)
|
|
|
(200)
|
|
|
—
|
|
|
—
|
|
|
11,120
|
|
|
Gross
profit
|
61.8
|
%
|
|
4.3
|
%
|
|
6.3
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
72.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
30,528
|
|
|
(7,691)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,837
|
|
|
Sales and
marketing
|
53,204
|
|
|
(9,790)
|
|
|
(2,698)
|
|
|
—
|
|
|
—
|
|
|
40,716
|
|
|
General and
administrative
|
32,092
|
|
|
(13,555)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,537
|
|
|
Income (loss) from
operations
|
(33,647)
|
|
|
36,811
|
|
|
11,110
|
|
|
—
|
|
|
—
|
|
|
14,274
|
|
|
Operating
margin
|
(25.3)
|
%
|
|
27.7
|
%
|
|
8.4
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
10.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(29,308)
|
|
|
—
|
|
|
—
|
|
|
27,370
|
|
|
—
|
|
|
(1,938)
|
|
|
Other income
(expense), net
|
746
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
782
|
|
|
Income (loss) before
provision for (benefit from) income taxes
|
(62,209)
|
|
|
36,811
|
|
|
11,110
|
|
|
27,370
|
|
|
36
|
|
|
13,118
|
|
|
Provision for
(benefit from) income taxes
|
(1,411)
|
|
|
290
|
|
|
(163)
|
|
|
1,376
|
|
|
—
|
|
|
92
|
|
|
Net income (loss)
attributable to Coupa Software Incorporated
|
(60,798)
|
|
|
36,521
|
|
|
11,273
|
|
|
25,994
|
|
|
36
|
|
|
13,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share, basic, attributable to Coupa Software
Incorporated (1)
|
$
|
(0.88)
|
|
|
|
|
|
|
|
|
|
|
$
|
0.19
|
|
|
Net income (loss) per
share, diluted, attributable to Coupa Software Incorporated
(1)
|
$
|
(0.88)
|
|
|
|
|
|
|
|
|
|
|
$
|
0.18
|
|
|
|
|
(1)
|
GAAP net loss per
share attributable to Coupa Software Incorporated is calculated
based upon 68,941 basic and diluted weighted-average shares of
common stock. Non-GAAP net income per share attributable to Coupa
Software Incorporated is calculated based upon 68,941 basic and
73,766 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 to Non-GAAP Financial Measures
|
|
Nine Months Ended
October 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 (2)
|
|
Non-GAAP
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of
subscription
|
$
|
154,701
|
|
|
$
|
(11,063)
|
|
|
$
|
(45,146)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
98,492
|
|
|
Costs of professional
services and other
|
81,865
|
|
|
(12,984)
|
|
|
(16,016)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,865
|
|
|
Gross
profit
|
55.5
|
%
|
|
4.5
|
%
|
|
11.5
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
71.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
125,625
|
|
|
(33,075)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
92,550
|
|
|
Sales and
marketing
|
237,902
|
|
|
(36,668)
|
|
|
(39,413)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161,821
|
|
|
General and
administrative
|
116,139
|
|
|
(51,461)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64,678
|
|
|
Income (loss) from
operations
|
(184,241)
|
|
|
145,251
|
|
|
100,575
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61,585
|
|
|
Operating
margin
|
(34.6)
|
%
|
|
27.3
|
%
|
|
18.9
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
11.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(90,854)
|
|
|
—
|
|
|
—
|
|
|
85,716
|
|
|
—
|
|
|
—
|
|
|
(5,138)
|
|
|
Other income
(expense), net
|
(2,746)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
357
|
|
|
—
|
|
|
(2,389)
|
|
|
Income (loss) before
provision for (benefit from) income taxes
|
(277,841)
|
|
|
145,251
|
|
|
100,575
|
|
|
85,716
|
|
|
357
|
|
|
—
|
|
|
54,058
|
|
|
Provision for
(benefit from) income taxes
|
(2,697)
|
|
|
2,550
|
|
|
5,448
|
|
|
—
|
|
|
—
|
|
|
746
|
|
|
6,047
|
|
|
Net income
(loss)
|
(275,144)
|
|
|
142,701
|
|
|
95,127
|
|
|
85,716
|
|
|
357
|
|
|
(746)
|
|
|
48,011
|
|
|
Net loss attributable
to non-controlling interests
|
(790)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(790)
|
|
|
Adjustment
attributable to non-controlling interests
|
8,673
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,673
|
|
|
—
|
|
|
Net income (loss)
attributable to Coupa Software Incorporated
|
(283,027)
|
|
|
142,701
|
|
|
95,127
|
|
|
85,716
|
|
|
357
|
|
|
7,927
|
|
|
48,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share, basic, attributable to Coupa Software Incorporated
(1)
|
$
|
(3.85)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.66
|
|
|
Net income (loss) per
share, diluted, attributable to Coupa Software
Incorporated (1)
|
$
|
(3.85)
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.64
|
|
|
|
|
(1)
|
GAAP net loss per
share attributable to Coupa Software Incorporated is calculated
based upon 73,514 basic and diluted weighted-average shares of
common stock. Non-GAAP net income per share attributable to Coupa
Software Incorporated is calculated based upon 73,514 basic and
76,295 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 consists of the
removal of a one-time income tax benefit associated with the
remeasurement of foreign deferred tax assets and an adjustment
attributable to redeemable non-controlling interests to its
redemption amount.
|
|
COUPA SOFTWARE
INCORPORATED
|
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
|
Nine Months Ended
October 31, 2020
|
|
(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 (2)
|
|
Non-GAAP
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of
subscription
|
$
|
99,335
|
|
|
$
|
(7,641)
|
|
|
$
|
(22,370)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
69,324
|
|
|
Costs of professional
services and other
|
42,729
|
|
|
(8,303)
|
|
|
(600)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,826
|
|
|
Gross
profit
|
62.4
|
%
|
|
4.2
|
%
|
|
6.1
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
72.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
87,459
|
|
|
(21,131)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,328
|
|
|
Sales and
marketing
|
149,831
|
|
|
(26,558)
|
|
|
(7,368)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
115,905
|
|
|
General and
administrative
|
69,941
|
|
|
(31,218)
|
|
|
—
|
|
|
12,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51,223
|
|
|
Income (loss) from
operations
|
(71,196)
|
|
|
94,851
|
|
|
30,338
|
|
|
(12,500)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41,493
|
|
|
Operating
margin
|
(18.8)
|
%
|
|
25.1
|
%
|
|
8.0
|
%
|
|
(3.3)
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
11.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(61,820)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58,727
|
|
|
—
|
|
|
—
|
|
|
(3,093)
|
|
|
Other income
(expense), net
|
8,833
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,166)
|
|
|
—
|
|
|
5,667
|
|
|
Income (loss) before
provision for (benefit from) income taxes
|
(124,183)
|
|
|
94,851
|
|
|
30,338
|
|
|
(12,500)
|
|
|
58,727
|
|
|
(3,166)
|
|
|
—
|
|
|
44,067
|
|
|
Provision for
(benefit from) income taxes
|
(5,453)
|
|
|
4,321
|
|
|
(315)
|
|
|
—
|
|
|
2,485
|
|
|
—
|
|
|
310
|
|
|
1,348
|
|
|
Net income (loss)
attributable to Coupa Software Incorporated
|
(118,730)
|
|
|
90,530
|
|
|
30,653
|
|
|
(12,500)
|
|
|
56,242
|
|
|
(3,166)
|
|
|
(310)
|
|
|
42,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share, basic, attributable to Coupa Software
Incorporated (1)
|
$
|
(1.76)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.63
|
|
|
Net income (loss) per
share, diluted, attributable to Coupa Software Incorporated
(1)
|
$
|
(1.76)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.59
|
|
|
|
|
(1)
|
GAAP net loss per
share attributable to Coupa Software Incorporated is calculated
based upon 67,349 basic and diluted weighted-average shares of
common stock. Non-GAAP net income per share attributable to Coupa
Software Incorporated is calculated based upon 67,349 basic and
71,854 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 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 and
Adjusted Free Cash Flows Margin
|
|
(Non-GAAP
Financial Measures)
|
|
(in thousands,
except percentages)
|
|
(unaudited)
|
|
|
Three Months Ended
October 31,
|
|
Nine Months Ended
October 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net cash provided by
operating activities
|
$
|
31,015
|
|
|
$
|
19,001
|
|
|
$
|
103,908
|
|
|
$
|
57,798
|
|
|
Less: purchases of
property and equipment
|
(3,594)
|
|
|
(2,531)
|
|
|
(10,256)
|
|
|
(9,559)
|
|
|
Add: repayments of
convertible senior notes attributable to debt discount
|
821
|
|
|
872
|
|
|
1,338
|
|
|
27,208
|
|
|
Adjusted free cash
flows
|
$
|
28,242
|
|
|
$
|
17,342
|
|
|
$
|
94,990
|
|
|
$
|
75,447
|
|
|
|
|
Trailing Twelve
Months Ended October
31,
|
|
2021
|
|
2020
|
|
Net cash provided by
operating activities
|
$
|
124,312
|
|
|
$
|
80,077
|
|
|
Less: purchases of
property and equipment
|
(12,189)
|
|
|
(11,667)
|
|
|
Add: repayments of
convertible senior notes attributable to debt discount
|
1,538
|
|
|
27,208
|
|
|
Add: one-time payout
of legacy unvested equity awards accelerated in conjunction with a
business combination
|
19,428
|
|
|
—
|
|
|
Adjusted free cash
flows
|
133,089
|
|
|
95,618
|
|
|
Divided by: total
revenues
|
$
|
695,535
|
|
|
$
|
489,551
|
|
|
Adjusted free cash
flows margin
|
19.1
|
%
|
|
19.5
|
%
|
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SOURCE Coupa Software