First, it is my first offering for something to consider… I am a ROOKIE… so go easy on me… but I’m here to learn so feedback appreciated. Seems to fit many of the characteristics desired here.
COMPANY PROFILE
“What SalesForce is to sales, Coupa is to Spend”… Value as a Service…
Coupa provides visibility into the expense side of running corporations. It’s a unified cloud platform that eliminates the need for previously siloed systems such as Procurements, Invoices, Expenses, Sourcing, Inventory, etc. The company shows a $37 billion addressable market. $202M revenue in the last 12 months with 39% YoY Revenue Growth and 10% Free Cash Flow Margin. Their Non-GAAP Gross Margin is 72%. Margins are continuing to increase. Annual Revenue CAGR is increasing at 49% since FY16. Subscription Services increasing at 40% YoY.
They operate in over 100 countries, support over 20 languages and advertise that they’ve saved their customers over $27 billion in efficiencies to date.
Active Clients
Clients include: AAA Insurance, Airbus, American Express, Audi, BAE Systems, Barclays, Capital One, Coca-Cola, Dollar Gneral, Fox, Groupon, H&R Block, Juniper, Protor & Gamble, RBC Royal Bank, SalesForce, Spotify, Staples, TD Bank, The Weather Channel and numerous others. 1.5 million licensed users. 4 million suppliers. $745 billion cumulative spend has been managed by Coupa Software.
Investor Presentation Link:
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9N…
Competition
Source: https://get.coupa.com/2018-Gartner-Magic-Quadrant-PPC?utm_so…
Forrester and Gartner ranks them very high compared to competition.
SAP(Ariba and Fieldglass)
Oracle
JAGGAER
Others
June Quarter Press Release
SAN MATEO, Calif., June 04, 2018 (GLOBE NEWSWIRE) – Coupa Software (NASDAQ:COUP), a leader in business spend management (BSM), today announced financial results for its first fiscal quarter ended April 30, 2018.
“We delivered strong Q1 financial results, including 40% year-over-year subscription revenue growth, positive non-GAAP operating income, and positive free cash flows,” said Rob Bernshteyn, CEO of Coupa. “On the business front, we expanded our customer base by adding blue chip and high growth customers, and we saw several marquee customers go live. We believe we are well positioned to deliver on our business and financial objectives for the fiscal year.”
Fiscal First Quarter Results:
• Total revenues were $56.4 million, an increase of 37% compared to the same period last year. Subscription revenues were $50.0 million, an increase of 40% compared to the same period last year.
• GAAP operating loss was $12.1 million, compared to a loss of $10.4 million for the same period last year. Non-GAAP operating income was $0.3 million, compared to a loss of $4.6 million for the same period last year.
• GAAP net loss was $15.5 million, compared to a loss of $10.0 million for the same period last year. GAAP net loss per basic and diluted share was $0.28, compared to a loss of $0.20 for the same period last year. Non-GAAP net loss was $0.5 million, compared to a loss of $4.5 million for the same period last year. Non-GAAP net loss per basic and diluted share was $0.01, compared to a loss of $0.09 per basic and diluted share for the same period last year.
• Operating cash flows and free cash flows for the quarter ended April 30, 2018, were $12.6 million and $11.5 million, respectively.
Business Outlook:
The following forward-looking statements reflect Coupa’s expectations as of June 4, 2018. Guidance is based on the new revenue recognition standard ASC 606, which Coupa adopted on February 1, 2018.
Second quarter of fiscal 2019:
• Total revenues are expected to be between $56.0 and $57.0 million.
• Subscription revenues are expected to be between $51.0 and $52.0 million.
• Professional services and other revenues are expected to be approximately $5.0 million.
• Non-GAAP loss from operations is expected to be between $4.5 and $5.5 million.
• Non-GAAP net loss per share is expected to be between $0.08 loss and $0.10 loss per share.
• Basic and diluted weighted average share count is expected to be approximately 56.8 million shares.
Full year fiscal 2019:
• Total revenues are expected to be between $233.0 and $236.0 million.
• Non-GAAP loss from operations is expected to be between $8.0 and $11.0 million.
• Non-GAAP net loss per share is expected to be between $0.14 loss and $0.19 loss per share.
• Basic and diluted weighted average share count is expected to be approximately 57.2 million shares.
See the section titled “Non-GAAP Financial Measures” and the reconciliation tables below for important details regarding Coupa’s non-GAAP measures. Coupa defines free cash flows as operating cash flows less purchases of property and equipment.
Recent Business Highlights:
• Coupa added new customers in Q1, including but not limited to: Ingersoll Rand, First American Financial Corporation, Assa Abloy, COMPAREX AG, Fastweb, Just Energy, Evotec AG, Renew Financial, Simons Foundation, Vituity, Monash University, Klöckner & Co SE, Arena Offshore, PRA Group, Snowflake, Couchbase, and NAL Resources Management.
• Coupa announced new product innovations to advance the company’s BSM capabilities, including enhancements to community intelligence and additional user-centric experiences that will provide businesses even more visibility into spend, processes, and performance.
• Coupa commissioned a study by The Economist Intelligence Unit which polled more than 500 CFOs and senior finance executives. The study revealed that greater than 60% of finance executives lack complete visibility into the transactions within their organizations. In addition, 76% think leveraging new technologies or improving processes would enable their organizations to work better with other functions to execute corporate finance strategy.
• Coupa hosted its sixth annual INSPIRE conference where nearly 2,000 customers, prospective customers, partners, industry analysts and employees, plus many more online, convened to collaborate and innovate on BSM.
• Coupa was named as a leader in two IDC MarketScape Reports: the IDC MarketScape report for Worldwide SaaS and Cloud Enabled Sourcing Applications and the IDC MarketScape report for Worldwide SaaS and Cloud Enabled Procure-to-Pay Applications.
• Coupa hired experienced business executive Hiroyuki Okuma as Japan country manager, where he will be responsible for driving strategy, brand awareness, sales execution, partner alliances, and customer success.
Conference Call Information:
Coupa will host a conference call and live webcast for analysts and investors at 5:00 p.m. Eastern time today.
• Parties in the U.S. and Canada can access the call by dialing (888) 437-9445, using conference code 7508183.
• International parties can access the call by dialing (719) 325-2106, using conference code 7508183.
A 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. A telephonic replay of the conference call will be available through Monday, June 11, 2018. To access the replay, parties in the U.S. and Canada should call (888) 203-1112 and enter conference code 7508183. International parties should call (719) 457-0820 and enter conference code 7508183.
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 that exclude share-based compensation expense, amortization of intangible assets acquired, amortization of debt discount and issuance costs from convertible notes, and related tax effects. Coupa believes these non-GAAP measures are useful in evaluating its operating performance and regularly reviews these measures as it evaluates its business.
Coupa believes these non-GAAP measures provide investors and other users of its financial information consistency and comparability with its past financial performance and facilitate period to period comparisons of operations. Coupa believes these non-GAAP measures are useful in evaluating its operating performance compared to that of other companies in its industry, as they generally eliminate the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance.
Coupa uses these non-GAAP measures in conjunction with GAAP measures as part of its overall assessment of its performance, 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. The definitions of its non-GAAP measures may differ from the definitions used by other companies 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, measures prepared in accordance with GAAP.
Coupa compensates for these limitations by providing investors and other users of its financial information a reconciliation of non-GAAP measures to the related GAAP financial measures. 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. Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures attached to this release.
With respect to Coupa’s guidance as provided under “Business Outlook” above, Coupa has not reconciled its expectations for non-GAAP loss from operations to GAAP loss from operations or non-GAAP net loss per share to GAAP net loss per share because certain items excluded from non-GAAP operating loss and net loss, such as charges related to share-based compensation expense, amortization of acquired intangible assets, amortization of debt discount and issuance costs from our convertible notes, and related tax effects, cannot be reasonably calculated or predicted at this time. The effect of these excluded items may be significant.
Coupa also uses key metrics such as cumulative spend under management, which represents the aggregate amount of money that has been transacted through its core platform for all of its customers collectively since it launched its platform. Coupa calculates this metric by aggregating the actual transaction data, such as invoices, purchase orders and expenses, from customers on its core platform. While Coupa does not believe this metric is directly correlated to its financial results, it believes that the adoption of its core platform, as evidenced by growth in cumulative spend under management, drives additional value to its customers, which will enhance its ability to acquire new customers and to increase renewals and upsells to existing customers.
Summary
Getting all their financials typed in column format in this interface is KILLING me.
This company isn’t disruption in terms in terms on the fundamental roll out of cloud infrastructure… like OKTA for security or ANET for switches or Pure Storage for flash, fast storage. It seems to be a potential disruptor in terms of cloud integrated business solutions and applications. Motley Fool likes to advertise “the next Amazon”… I’d say this could be “the next SalesForce” on the expense side of the business ledger.
Seems to have many of the characteristics Saul’s described and I’d appreciate other’s thoughts.
