COUP reports tomorrow, so I’ve been reviewing the last couple of quarters. This company has a lot of momentum right now, they are the leader in a huge market, that saves companies money. Revenue is accelerating, cash flow positive, margins and cash flows are improving. Competitive advantage that is increasing as they sign more customers.
From the last earnings call on revenue:
Michael Turrin – Deutsche Bank – Analyst
Hey, there. Great, thanks, good afternoon. You took the revenue guide for the year up significantly more than the beat we saw this quarter. Can we just talk more about what it is you’re seeing misleading to that big step-up for the rest of the year?
Todd Ford – Chief Financial Officer
Yeah, it’s really just execution across the organization. So kind of spoke about in our prepared remarks, the enterprise sales team continues to execute, the mid-market team is executing ,professional services team, International, etc. So it’s part of the execution and results in Q2 flowing through the model. And as Rob mentioned, very strong pipeline heading into the back half of the year.
On their competitive advantage:
Brian Peterson – Raymond James – Analyst
Hi. Thanks gentlemen, and congrats on the strong results. So Rob, wanted to get back to your early comments on the Coupa community that was definitely a theme we picked up at Inspire. At a high level, I’m curious where we should see that fell in terms of the financials, is that something that would – that should really be in kind of new customer ACV, or is that maybe more in the revenue retention metrics? Just curious how you guys think about that. Thank you.
Rob Bernshteyn – Chief Executive Officer
Sure. Thanks for the question, Brian. I think it’s all of the above. First of all, we should be when we are seeing it in the platform, right? So the transactional platform pricing, as I mentioned, new ARR per logo or average ARR per logo has gone up sequentially, virtually every quarter for years now. And that’s happened by segment, because customers are seeing the value of Community Intelligence embedded in the platform. That’s Number 1. Obviously, as we continue to get more and more data and the value of the Community Intelligence insights delivers even more high fidelity prescriptions that should be seen in retention because we become a platform with very strong barriers to entry for anyone that would be interested in entering our space, but we also offer more and more accelerated value to existing customers because of that data.
And thirdly, there are certain modules which we offer that are fundamentally Community Intelligence driven. If you look at a module like Coupa Risk Aware that’s notifying your supplier risk allowing you to bring in third-party data feeds allowing you to calibrate components of supplier risk, we’re building the richest supplier master record in the world we believe and the fidelity of insight about suppliers is going to grow as well. So the answer is absolutely all of the above. And we think we’re really in the early innings of something very, very special here.
There is so much to like with this company right now.
For those that don’t own Coupa right now, why not? Is it because of valuation? Just like other companies better? Am I missing something?
Jim (long COUP)