- Record Annual Revenues of $725
Million, 34% Year-Over-Year Growth
- Record Annual Calculated Billings of $855 Million, 33% Year-Over-Year Growth
- Record Annual Operating Cash Flows and Adjusted Free Cash
Flows of $168 Million and
$156 Million, Respectively
SAN MATEO, Calif.,
March 14, 2022 /PRNewswire/ -- Coupa Software
(NASDAQ: COUP) today announced financial results for its fourth
quarter and fiscal year ended January 31, 2022.
"We finished the fiscal year strong, delivering record revenue
and free cash flow results in the fourth quarter," said
Rob Bernshteyn, chairman and chief
executive officer at Coupa. "During Fiscal '22, we grew new
business in excess of 60%, which we define as new recurring revenue
from new customer logos and add-on transactions. That growth was
driven by strength in our core business, coupled with momentum in
our integration of acquired assets. Our customers continue to
realize meaningful value and reach new levels of success with
Coupa's all-in-one Business Spend Management platform. As the clear
leader in Business Spend Management, we're tightly aligned with our
community to bring back-office digital transformation to the
forefront, a journey that's only just beginning for many
companies."
Fourth Quarter Results:
- Total revenues were $193.3
million, an increase of 18% compared to the same period last
year. Subscription revenues were $173.0
million, an increase of 28% compared to the same period last
year.
- Calculated billings were $318.5
million, an increase of 18% compared to the same period last
year. On an organic basis (without giving effect to acquired
deferred revenue from LLamasoft of $14.8
million in the fourth quarter of Fiscal 2021), this
represents an increase of 25%.
- GAAP operating loss was $59.8
million, compared to $95.4
million for the same period last year. Non-GAAP operating
income was $27.8 million, compared to
$11.2 million for the same period
last year.
- GAAP net loss attributable to Coupa Software Incorporated was
$96.0 million, compared to
$61.4 million for the same period
last year. GAAP net loss per basic and diluted share attributable
to Coupa Software Incorporated was $1.29, compared to $0.85 for the same period last year. Non-GAAP net
income attributable to Coupa Software Incorporated was $14.4 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 $0.19,
compared to $0.17 for the same period
last year.
- Operating cash flows and adjusted free cash flows were positive
$64.2 million and $60.6 million, respectively.
Fiscal Year 2022 Results:
- Total revenues were $725.3
million, an increase of 34% from the previous year.
Subscription revenues were $634.0
million, an increase of 35% from the previous year.
- GAAP operating loss was $244.1
million, compared to $166.6
million for the previous year. Non-GAAP operating income was
$89.4 million, compared to
$52.7 million for the previous
year.
- GAAP net loss attributable to Coupa Software Incorporated was
$379.0 million, compared to
$180.1 million for the previous year.
GAAP net loss per basic and diluted share attributable to Coupa
Software Incorporated was $5.13,
compared to $2.63 for the previous
year. Non-GAAP net income attributable to Coupa Software
Incorporated was $63.2 million,
compared to $55.7 million for the
previous year. Non-GAAP net income per diluted share attributable
to Coupa Software Incorporated was $0.83, compared to $0.77 for the previous year.
- Operating cash flows and adjusted free cash flows for the year
ended January 31, 2022, were positive
$168.1 million and $155.6 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 14, 2022.
First quarter of fiscal 2023:
- Total revenues are expected to be $189.0 to $191.0
million.
- Subscription revenues are expected to be $171.0 to $173.0
million.
- Professional services and other revenues are expected to be
approximately $18.0 million.
- Non-GAAP income from operations is expected to be $6.0 to $8.0
million.
- Non-GAAP net income per diluted share attributable to Coupa
Software Incorporated is expected to be $0.03 to $0.06 per
share.
- Diluted weighted average share count is expected to be
approximately 86.5 million shares.
Full year fiscal 2023:
- Total revenues are expected to be $836.0 to $840.0
million.
- Subscription revenues are expected to be $756.0 to $760.0
million.
- Professional services and other revenues are expected to be
approximately $80.0 million.
- Non-GAAP income from operations is expected to be $25.0 to $29.0
million.
- Non-GAAP net income per diluted share attributable to Coupa
Software Incorporated is expected to be $0.15 to $0.19 per
share.
- Diluted weighted average share count is expected to be
approximately 88.0 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 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
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 Entrata, Formlabs, Fresh Consulting, Grammarly, Happify
Inc, Hey Car - Mobility Trader Holding GmbH, Hippo Insurance,
Hopper, HotSpot Therapeutics, Index Exchange, IO Bio US, Inc, Libbs
Farmacêutica, Luzerner Kantonsspital, Lyten, MasterClass, M-Files,
Natural One S/A, NSW Rural Fire Service, Nurix, Ohio Transmission
Corporation, Olive, Pernod Ricard Deutschland GmbH, Playstudios,
Inc., Remote Technology, Inc., Revel Transit Inc., Rocky
Mountaineer, Schrodinger, Science 37, Inc., Senta Partners, Shps
Tecnologia E Servicos Ltda, Sloan Valve Co, St. Joseph's University Medical Center, Stahl,
Stuart Delivery SL., Sun Auto Tire & Service, Sweetgreen,
Tamouh Integrated Business Services LLC, Tenaya Therapeutics, Inc.,
The Alpha Corporation of Tennessee, The Financial Times Ltd,
Traeger Pellet Grills, LLC,
Transplace Texas, LP, ÜSTRA Hannoversche Verkehrsbetriebe AG,
WealthSimple Inc, WorldStrides LLC, and WSH.
- Launched Coupa Travel and Expense, a fully unified solution to
transform the traveler experience and deliver real-time travel
spend optimization.
- Launched Community.ai, a set of next-gen spend management
innovations to transform B2B communities and how buyers and sellers
interact.
- Announced two Coupa Pay partnerships with HSBC and AirPlus to
provide European companies with access to a fast, seamless, and
secure way to manage payments with virtual cards.
- Opened submissions for its Spendsetter Awards to recognize
leaders revolutionizing business spend management (BSM) at its
global community conference Inspire in North America and EMEA.
- Launched a mentoring program with Black Young Professionals
(BYP) and Coupa Empower.
- Launched its new video series "Trends on Spend" with Coupa
Chief Procurement Officer Michael Van
Keulen.
President, Finance & Operations – Role
Change:
Coupa also announces today that Todd
Ford, its President, Finance & Operations, will
transition from his current executive position to a newly created
advisory role of President & CFO, Emeritus.
"I want to thank Todd for his tremendous contributions at Coupa
over the past seven years. He is an incredible leader at
Coupa and partner to me," said Bernshteyn. "We are fortunate that
Todd has developed and supported senior leaders in our Finance
organization to succeed him, and with Todd continuing his
transition as an advisor for an extended period, we expect to have
a very smooth transition."
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: 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 quarterly report
on Form 10-Q filed with the Securities and Exchange Commission
(SEC) on December 7, 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 March 14, 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.
The financial results presented in this press release are
unaudited and are therefore preliminary. They should not be viewed
as a substitute for financial statements prepared in accordance
with GAAP. There is a possibility that Coupa's fourth quarter and
fiscal 2022 financial results could change prior to the completion
of the fiscal 2022 audit.
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,
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues:
|
|
|
|
|
|
|
|
Subscription
|
$
172,955
|
|
$
134,942
|
|
$
634,034
|
|
$
470,341
|
Professional services
and other
|
20,343
|
|
28,602
|
|
91,255
|
|
71,302
|
Total
revenues
|
193,298
|
|
163,544
|
|
725,289
|
|
541,643
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Subscription
|
55,097
|
|
48,039
|
|
209,799
|
|
147,374
|
Professional services
and other
|
21,572
|
|
31,598
|
|
103,437
|
|
74,327
|
Total cost of
revenues
|
76,669
|
|
79,637
|
|
313,236
|
|
221,701
|
Gross
profit
|
116,629
|
|
83,907
|
|
412,053
|
|
319,942
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
40,860
|
|
46,383
|
|
166,486
|
|
133,842
|
Sales and
marketing
|
89,885
|
|
86,481
|
|
327,786
|
|
236,312
|
General and
administrative
|
45,727
|
|
46,400
|
|
161,865
|
|
116,341
|
Total operating
expenses
|
176,472
|
|
179,264
|
|
656,137
|
|
486,495
|
Loss from
operations
|
(59,843)
|
|
(95,357)
|
|
(244,084)
|
|
(166,553)
|
Interest
expense
|
(31,887)
|
|
(29,451)
|
|
(122,741)
|
|
(91,271)
|
Other income
(expense), net
|
(2,137)
|
|
4,488
|
|
(4,883)
|
|
13,321
|
Loss before provision
for (benefit from) income taxes
|
(93,867)
|
|
(120,320)
|
|
(371,708)
|
|
(244,503)
|
Provision for
(benefit from) income taxes
|
95
|
|
(58,933)
|
|
(2,602)
|
|
(64,386)
|
Net
loss
|
(93,962)
|
|
(61,387)
|
|
(369,106)
|
|
(180,117)
|
Net loss attributable
to redeemable non-controlling interests
|
(273)
|
|
—
|
|
(1,063)
|
|
—
|
Adjustment
attributable to redeemable non-controlling interests
|
2,323
|
|
—
|
|
10,996
|
|
—
|
Net loss
attributable to Coupa Software Incorporated
|
$
(96,012)
|
|
$
(61,387)
|
|
$
(379,039)
|
|
$
(180,117)
|
Net loss per share,
basic and diluted, attributable to Coupa Software
Incorporated
|
$
(1.29)
|
|
$
(0.85)
|
|
$
(5.13)
|
|
$
(2.63)
|
Weighted-average
number of shares used in computing net loss per share, basic and
diluted
|
74,715
|
|
72,160
|
|
73,816
|
|
68,559
|
COUPA SOFTWARE
INCORPORATED
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands,
except per share amounts)
|
(unaudited)
|
|
|
January 31,
2022
|
|
January 31,
2021
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
506,459
|
|
$
323,284
|
Marketable
securities
|
223,032
|
|
283,036
|
Accounts receivable,
net of allowances
|
226,191
|
|
196,009
|
Prepaid expenses and
other current assets
|
38,270
|
|
36,381
|
Deferred commissions,
current portion
|
21,096
|
|
15,541
|
Total current
assets
|
1,015,048
|
|
854,251
|
Property and
equipment, net
|
30,576
|
|
28,266
|
Deferred commissions,
net of current portion
|
48,562
|
|
36,832
|
Goodwill
|
1,514,550
|
|
1,480,847
|
Intangible assets,
net
|
510,663
|
|
632,173
|
Operating lease
right-of-use assets
|
42,659
|
|
41,305
|
Other
assets
|
31,121
|
|
31,491
|
Total
assets
|
$
3,193,179
|
|
$
3,105,165
|
Liabilities,
Redeemable Non-Controlling Interests, Other Temporary Equity and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
4,610
|
|
$
4,831
|
Accrued expenses and
other current liabilities
|
79,160
|
|
80,271
|
Deferred revenue,
current portion
|
468,783
|
|
356,115
|
Current portion of
convertible senior notes, net
|
1,639
|
|
609,068
|
Operating lease
liabilities, current portion
|
12,760
|
|
11,222
|
Total current
liabilities
|
566,952
|
|
1,061,507
|
Convertible senior
notes, net
|
1,614,257
|
|
897,525
|
Deferred revenue, net
of current portion
|
22,655
|
|
5,773
|
Operating lease
liabilities, net of current portion
|
31,172
|
|
31,845
|
Other
liabilities
|
52,481
|
|
67,915
|
Total
liabilities
|
2,287,517
|
|
2,064,565
|
Redeemable
non-controlling interests
|
12,084
|
|
—
|
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
|
1,778,840
|
|
1,556,865
|
Accumulated other
comprehensive income
|
9,643
|
|
9,165
|
Accumulated
deficit
|
(894,912)
|
|
(525,806)
|
Total stockholders'
equity
|
893,578
|
|
1,040,231
|
Total liabilities,
redeemable non-controlling interests, other temporary equity and
stockholders' equity
|
$
3,193,179
|
|
$
3,105,165
|
COUPA SOFTWARE
INCORPORATED
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
(unaudited)
|
|
|
Year
Ended
January
31,
|
|
|
2022
|
|
2021
|
Cash flows from
operating activities
|
|
|
|
Net loss attributable
to Coupa Software Incorporated
|
$
(379,039)
|
|
$
(180,117)
|
Net loss and
adjustment attributable to redeemable non-controlling
interests
|
9,933
|
|
—
|
Net loss
|
(369,106)
|
|
(180,117)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
146,392
|
|
72,105
|
Amortization of
premium on marketable securities, net
|
377
|
|
1,038
|
Amortization of
deferred commissions
|
18,600
|
|
14,704
|
Amortization of debt
discount and issuance costs
|
115,688
|
|
86,541
|
Stock-based
compensation
|
199,895
|
|
149,423
|
Loss (gain) on
conversion of convertible senior notes
|
357
|
|
(3,154)
|
Repayments of
convertible senior notes attributable to debt discount
|
(1,338)
|
|
(27,409)
|
Other
|
(2,876)
|
|
3,761
|
Changes in operating
assets and liabilities net of effects from acquisitions:
|
|
|
|
Accounts
receivable
|
(25,752)
|
|
(36,757)
|
Prepaid expenses and
other current assets
|
(1,447)
|
|
2,954
|
Other
assets
|
23,266
|
|
6,786
|
Deferred
commissions
|
(35,906)
|
|
(24,157)
|
Accounts
payable
|
(326)
|
|
(851)
|
Accrued expenses and
other liabilities
|
(28,569)
|
|
(65,995)
|
Deferred
revenue
|
128,835
|
|
79,330
|
Net cash provided
by operating activities
|
168,090
|
|
78,202
|
Cash flows from
investing activities
|
|
|
|
Purchases of
marketable securities
|
(176,716)
|
|
(1,017,751)
|
Maturities of
marketable securities
|
140,300
|
|
396,595
|
Sale of marketable
securities
|
94,916
|
|
835,123
|
Acquisitions, net of
cash acquired
|
(47,312)
|
|
(863,597)
|
Purchases of other
investments
|
(10,000)
|
|
—
|
Purchases of property
and equipment
|
(13,853)
|
|
(11,492)
|
Net cash used in
investing activities
|
(12,665)
|
|
(661,122)
|
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
|
(5,751)
|
|
(555,352)
|
Proceeds from the
exercise of common stock options
|
9,446
|
|
19,232
|
Proceeds from issuance
of common stock for employee stock purchase plan
|
21,626
|
|
15,631
|
Net cash provided
by financing activities
|
27,544
|
|
641,791
|
Effects of foreign
currency exchange rates on cash, cash equivalents, and restricted
cash
|
(219)
|
|
438
|
Net increase in cash,
cash equivalents, and restricted cash
|
182,750
|
|
59,309
|
Cash, cash
equivalents, and restricted cash at beginning of year
|
327,589
|
|
268,280
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
510,339
|
|
$
327,589
|
Reconciliation of
cash, cash equivalents, and restricted cash to the consolidated
balance sheets
|
|
|
|
Cash and cash
equivalents
|
$
506,459
|
|
$
323,284
|
Restricted cash
included in other assets
|
3,880
|
|
4,305
|
Total cash, cash
equivalents, and restricted cash
|
$
510,339
|
|
$
327,589
|
COUPA SOFTWARE
INCORPORATED
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
Three Months Ended
January 31, 2022
|
(in thousands,
except percentages and per share amounts)
|
(unaudited)
|
|
|
GAAP
|
|
Stock-Based
Compensation
Expenses
|
|
Amortization of
Acquired
Intangible Assets(2)
|
|
Amortization of
Debt Discount
and
Issuance Costs
|
|
Other (3)
|
|
Non-GAAP
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Costs of
subscription
|
$
55,097
|
|
$
(3,857)
|
|
$
(18,050)
|
|
$
—
|
|
$
—
|
|
$
33,190
|
Costs of professional
services and other
|
21,572
|
|
(4,007)
|
|
(2,135)
|
|
—
|
|
—
|
|
15,430
|
Gross
profit
|
60.3%
|
|
4.1%
|
|
10.4%
|
|
0.0%
|
|
0.0%
|
|
74.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
40,860
|
|
(11,044)
|
|
—
|
|
—
|
|
—
|
|
29,816
|
Sales and
marketing
|
89,885
|
|
(15,441)
|
|
(12,781)
|
|
—
|
|
—
|
|
61,663
|
General and
administrative
|
45,727
|
|
(20,295)
|
|
—
|
|
—
|
|
—
|
|
25,432
|
Income (loss) from
operations
|
(59,843)
|
|
54,644
|
|
32,966
|
|
—
|
|
—
|
|
27,767
|
Operating
margin
|
(31.0)%
|
|
28.3%
|
|
17.1%
|
|
0.0%
|
|
0.0%
|
|
14.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(31,887)
|
|
—
|
|
—
|
|
29,972
|
|
—
|
|
(1,915)
|
Other income
(expense), net
|
(2,137)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,137)
|
Income (loss) before
provision for income taxes
|
(93,867)
|
|
54,644
|
|
32,966
|
|
29,972
|
|
—
|
|
23,715
|
Provision for income
taxes
|
95
|
|
433
|
|
8,963
|
|
—
|
|
106
|
|
9,597
|
Net income
(loss)
|
(93,962)
|
|
54,211
|
|
24,003
|
|
29,972
|
|
(106)
|
|
14,118
|
Net loss attributable
to non-controlling interests
|
(273)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(273)
|
Adjustment
attributable to non-controlling interests
|
2,323
|
|
—
|
|
—
|
|
—
|
|
2,323
|
|
—
|
Net income (loss)
attributable to Coupa Software Incorporated
|
(96,012)
|
|
54,211
|
|
24,003
|
|
29,972
|
|
2,217
|
|
14,391
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share, basic, attributable to Coupa Software Incorporated
(1)
|
$
(1.29)
|
|
|
|
|
|
|
|
|
|
$
0.19
|
Net income (loss) per
share, diluted, attributable to Coupa Software
Incorporated (1)
|
$
(1.29)
|
|
|
|
|
|
|
|
|
|
$
0.19
|
|
|
(1)
|
GAAP net loss per
share attributable to Coupa Software Incorporated is calculated
based upon 74,715 basic and diluted weighted-average shares of
common stock. Non-GAAP net income per share attributable to Coupa
Software Incorporated is calculated based upon 74,715 basic and
76,564 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)
|
During the fourth
quarter of fiscal 2022, the Company identified that it had
incorrectly calculated its quarterly non-GAAP income tax adjustment
associated with the amortization of acquired intangible assets. The
Company corrected the $4.9 million cumulative impact of such errors
from prior periods as an out-of-period adjustment in the
quarter ended January 31, 2022, of which $2.3 million relates to
the previous financial year.
|
(3)
|
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 non-controlling interests to its redemption
amount.
|
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)
|
Other income
(expense)
|
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, attributable to Coupa Software
Incorporated (1)
|
$
(0.85)
|
|
|
|
|
|
|
|
|
|
|
|
$
0.18
|
Net income (loss) per
share, diluted, attributable to Coupa Software Incorporated
(1)
|
$
(0.85)
|
|
|
|
|
|
|
|
|
|
|
|
$
0.17
|
|
|
(1)
|
GAAP net loss per
share attributable to Coupa Software Incorporated is calculated
based upon 72,160 basic and diluted weighted-average shares of
common stock. Non-GAAP net income per share attributable to Coupa
Software Incorporated is calculated based upon 72,160 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
|
Year Ended January
31, 2022
|
(in thousands,
except percentages and per share amounts)
|
(unaudited)
|
|
|
GAAP
|
|
Stock-Based
Compensation
Expenses
|
|
Amortization of
Acquired
Intangible Assets(2)
|
|
Amortization of
Debt Discount
and
Issuance
Costs
|
|
Loss
on
Conversion of
Convertible
Senior
Notes
|
|
Other (3)
|
|
Non-GAAP
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of
subscription
|
$ 209,799
|
|
$
(14,920)
|
|
$
(63,197)
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$ 131,682
|
Costs of professional
services and other
|
103,437
|
|
(16,991)
|
|
(18,151)
|
|
—
|
|
—
|
|
—
|
|
68,295
|
Gross
profit
|
56.8%
|
|
4.4%
|
|
11.2%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
72.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
166,486
|
|
(44,119)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
122,367
|
Sales and
marketing
|
327,786
|
|
(52,109)
|
|
(52,194)
|
|
—
|
|
—
|
|
—
|
|
223,483
|
General and
administrative
|
161,865
|
|
(71,756)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
90,109
|
Income (loss) from
operations
|
(244,084)
|
|
199,895
|
|
133,542
|
|
—
|
|
—
|
|
—
|
|
89,353
|
Operating
margin
|
(33.7)%
|
|
27.6%
|
|
18.4%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
12.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(122,741)
|
|
—
|
|
—
|
|
115,688
|
|
—
|
|
—
|
|
(7,053)
|
Other income
(expense)
|
(4,883)
|
|
—
|
|
—
|
|
—
|
|
357
|
|
—
|
|
(4,526)
|
Income (loss) before
provision for (benefit from) income taxes
|
(371,708)
|
|
199,895
|
|
133,542
|
|
115,688
|
|
357
|
|
—
|
|
77,774
|
Provision for
(benefit from) income taxes
|
(2,602)
|
|
2,983
|
|
14,410
|
|
—
|
|
—
|
|
852
|
|
15,643
|
Net income
(loss)
|
(369,106)
|
|
196,912
|
|
119,132
|
|
115,688
|
|
357
|
|
(852)
|
|
62,131
|
Net loss attributable
to non-controlling interests
|
(1,063)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,063)
|
Adjustment
attributable to non-controlling interests
|
10,996
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10,996
|
|
—
|
Net income (loss)
attributable to Coupa Software Incorporated
|
(379,039)
|
|
196,912
|
|
119,132
|
|
115,688
|
|
357
|
|
10,144
|
|
63,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share, basic, attributable to Coupa Software Incorporated
(1)
|
$
(5.13)
|
|
|
|
|
|
|
|
|
|
|
|
$
0.86
|
Net income (loss) per
share, diluted, attributable to Coupa Software
Incorporated (1)
|
$
(5.13)
|
|
|
|
|
|
|
|
|
|
|
|
$
0.83
|
|
|
(1)
|
GAAP net loss per
share attributable to Coupa Software Incorporated is calculated
based upon 73,816 basic and diluted weighted-average shares of
common stock. Non-GAAP net income per share attributable to Coupa
Software Incorporated is calculated based upon 73,816 basic and
76,297 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)
|
During the fourth
quarter of fiscal 2022, the Company identified that it had
incorrectly calculated its quarterly non-GAAP income tax adjustment
associated with the amortization of acquired intangible assets. In
the consolidated financial statements ended January 31, 2022, the
Company corrected the $2.3 million cumulative impact of such
prior-period error as an out-of-period adjustment.
|
(3)
|
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 non-controlling interests to its redemption
amount.
|
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)
|
Other income
(expense)
|
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, attributable to Coupa Software Incorporated
(1)
|
$
(2.63)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
0.81
|
Net income (loss) per
share, diluted, attributable to Coupa Software Incorporated
(1)
|
$
(2.63)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
0.77
|
|
|
(1)
|
GAAP net loss per
share attributable to Coupa Software Incorporated is calculated
based upon 68,559 basic and diluted weighted-average shares of
common stock. Non-GAAP net income per share attributable to Coupa
Software Incorporated is calculated based upon 68,559 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 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
January 31,
|
|
Year Ended January
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net cash provided by
operating activities
|
$
64,182
|
|
$
20,404
|
|
$
168,090
|
|
$
78,202
|
Less: purchases of
property and equipment
|
(3,597)
|
|
(1,933)
|
|
(13,853)
|
|
(11,492)
|
Add: repayments of
convertible senior notes attributable to debt discount
|
—
|
|
201
|
|
1,338
|
|
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
|
$
60,585
|
|
$
38,100
|
|
$
155,575
|
|
$
113,547
|
|
|
|
Trailing
Twelve
Months Ended January 31,
|
|
2022
|
|
2021
|
Net cash provided by
operating activities
|
$
168,090
|
|
$
78,202
|
Less: purchases of
property and equipment
|
(13,853)
|
|
(11,492)
|
Add: repayments of
convertible senior notes attributable to debt discount
|
1,338
|
|
27,409
|
Add: one-time payout
of legacy unvested equity awards accelerated in conjunction with a
business combination
|
—
|
|
19,428
|
Adjusted free cash
flows
|
155,575
|
|
113,547
|
Divided by: total
revenues
|
$
725,289
|
|
$
541,643
|
Adjusted free cash
flows margin
|
21.5 %
|
|
21.0 %
|
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SOURCE Coupa Software