Coupa Software (COUP) 8-K Coupa Software Reports Fourth Quarter & Full Year Fiscal 2019 Financial Results

Exhibit 99.1

Coupa Software Reports Fourth Quarter & Full Year Fiscal 2019 Financial Results

Record Annual Revenues of $260 Million, with Annual Subscription Revenues up 42%

Record Annual Free Cash Flows of $30 Million, 11.5% of Total Revenues

SAN MATEO, Calif., March 11, 2019 – Coupa Software (NASDAQ: COUP) today announced financial results for the fourth quarter and fiscal year ended January 31, 2019.

“The fourth quarter of fiscal 2019 was the strongest quarter yet in our company’s history, as marked by a number of significant milestones,” said Rob Bernshteyn, chief executive officer at Coupa. “We achieved 42% year-over-year subscription revenue growth and 11.5% annual free cash flow margins. We were also profitable for the year on anon-GAAP basis, deliveringnon-GAAP earnings per share of 18 cents, with a net loss per share of 96 cents on a GAAP basis. In addition, we surpassed $1 trillion in cumulative spend under management demonstrating the breadth and depth of our growing customer base. Heading into fiscal 2020, our powerful combination of innovation, execution, and core values that are centered around ensuring customer success, will enable us to extend our leadership position in Business Spend Management (BSM).”

See the section titled“Non-GAAP Financial Measures” and the reconciliation tables below for important details regarding Coupa’snon-GAAP measures. Coupa defines free cash flows as operating cash flows less purchases of property and equipment and free cash flow margins as free cash flows divided by total revenues.

Fourth Quarter Results

• Total revenues were $74.9 million, an increase of 39% compared to the same period last year. Subscription revenues were $67.5 million, an increase of 45% compared to the same period last year.

• GAAP operating loss was $14.7 million, compared to a loss of $9.1 million for the same period last year.Non-GAAP operating income was $2.4 million, compared to income of $0.9 million for the same period last year.

• GAAP net loss was $16.6 million, compared to a loss of $8.7 million for the same period last year. GAAP net loss per basic and diluted share was $0.28, compared to a loss of $0.16 for the same period last year.Non-GAAP net income was $3.4 million, compared to $1.4 million for the same period last year.Non-GAAP net income per diluted share was $0.05, compared to $0.02 for the same period last year.

• Operating cash flows and free cash flows for the quarter ended January 31, 2019, were $9.5 million and $6.8 million, respectively.

Fiscal Year 2019 Results

• Total revenues were $260.4 million, an increase of 39% from the previous year. Subscription revenues were $233.4 million, an increase of 42% from the previous year.

• GAAP operating loss was $47.4 million, compared to a loss of $45.0 million for the previous year.Non-GAAP operating income was $12.5 million, compared to a loss of $11.8 million for the previous year.

• GAAP net loss was $55.5 million, compared to a loss of $43.8 million for the previous year. GAAP net loss per basic and diluted share was $0.96, compared to a loss of $0.83 for the previous year.Non-GAAP net income was $11.6 million, compared to a loss of $11.3 million for the previous year.Non-GAAP net income per diluted share was $0.18, compared to a loss of $0.21 per diluted share for the previous year.

• Operating cash flows and free cash flows for the year ended January 31, 2019, were $37.4 million and $29.9 million, respectively.

Business Outlook:

The following forward-looking statements reflect Coupa’s expectations as of March 11, 2019.

First quarter of fiscal 2020:

• Total revenues are expected to be between $73.5 and $74.0 million.

• Subscription revenues are expected to be between $67.5 and $68.0 million. This includes a negative impact of approximately $2.0 million due to three fewer calendar days for revenue recognition in Q1 compared to Q4.

• Professional services and other revenues are expected to be approximately $6.0 million.

• Non-GAAP loss from operations is expected to be between $2.0 and $3.5 million.

• Non-GAAP net loss per basic and diluted share is expected to be between $0.03 loss and $0.06 loss per share.

• Basic weighted average share count is expected to be approximately 61.0 million shares.

• Free cash flows are expected to be approximately $15.0 million.

Full year fiscal 2020:

• Total revenues are expected to be between $325.0 and $327.0 million.

• Non-GAAP income from operations is expected to be between $3.0 and $7.0 million.

• Non-GAAP net income per diluted share is expected to be between $0.04 and $0.10 per share.

• Diluted weighted average share count is expected to be approximately 70.0 million shares.

Recent Business Highlights:

• Coupa added new customers in Q4, including but not limited to: Air Methods, Bank of Hope, BDP International, BJ Services, Botanic-Serres Du Saleve, Canadian Tire, Copa Holdings, Elekta, Erco Worldwide, Evelo Biosciences, Freshworks, Guardian Industries, InvestRes, InVisionApp, Kin Group, KPMG Australia, Looker, Munich Re, North Queensland Airport Group, Novo Nordisk, Pacific Life Insurance, Peloton Interactive, Randstad US, Settlement Services International, Shopify, Sibanye-Stillwater, TearFund, Telia Company, Uniting Vic Tas, Vanquis Bank (Provident), WeddingWire, and WP Engine.

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• Coupa announced its latest release of product innovations for the BSM Platform. New industry-first capabilities were unveiled as part of this release which leverages community intelligence, powered by artificial intelligence, and enhanced global compliance capabilities to empower businesses to manage their spend in a simpler, safer, and smarter way.

• Following the announcement of Coupa Pay, the company’s B2B payments solution, Coupa announced a new strategic partnership with J.P. Morgan, which joins a growing list of virtual card issuers that are enabling businesses to manage payments in a fast, secure, and convenient way.

• Coupa announced that it acquired Hiperos, a leading third-party risk management provider and division of Opus. This acquisition provides businesses with the advanced technology they need to extensively evaluate the risk of their supplier base to further protect their brand and bottom line.

• Coupa was named a Leader in two new reports: the IDC MarketScape: Worldwide SaaS and Cloud-Enabled Accounts Payable Applications 2019 Vendor Assessment and the Forrester Wave:Source-to-Contract CLM, Q1 2019 for Contract Lifecycle Management.

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)204-4368, using conference code 2289487.

• International parties can access the call by dialing +1 (323)794-2423, using conference code 2289487.

A live webcast will be accessible on Coupa’s investor relations website athttp://investors.coupa.com. A replay will be available through the same link. A telephonic replay of the conference call will be available through Monday, March 18, 2019. To access the replay, parties in the U.S. and Canada should call (888)203-1112 and enter conference code 2289487. International parties should call +1 (719)457-0820 and enter conference code 2289487.

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 certainnon-GAAP financial measures that exclude certain items, including share-based compensation expenses, amortization of acquired intangible assets, amortization of debt discount and issuance costs from convertible notes, and related tax effects includingnon-recurring income tax adjustments. In addition, the weighted average diluted shares used to calculatenon-GAAP net income per share reflect the anti-dilutive impact of the capped call transactions entered into in connection with the convertible notes. Coupa believes thesenon-GAAP measures are useful in evaluating its operating performance and regularly reviews these measures as it evaluates its business.

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Coupa believes thesenon-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 thesenon-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 thesenon-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 itsnon-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’snon-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 ofnon-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 itsnon-GAAP measures in conjunction with GAAP financial measures. Please see the reconciliation ofnon-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 fornon-GAAP income (loss) from operations to GAAP loss from operations ornon-GAAP net income (loss) per share to GAAP net loss per share because certain items excluded fromnon-GAAP operating income (loss) and net income (loss), such as charges related to share-based compensation expenses, amortization of acquired intangible assets, amortization of debt discount and issuance costs from our convertible notes, and related tax effects includingnon-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 convertible notes cannot be reasonably calculated or predicted at this time. The effect of these 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, for 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.

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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, 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, including Coupa has a limited operating history, which makes it difficult to predict its future operating results; 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; risks and liabilities related to breach of its security measures or unauthorized access to customer data; the markets in which Coupa participates are intensely competitive; Coupa’s business depends substantially on its customers renewing their subscriptions and purchasing additional subscriptions; if Coupa fails to develop widespread brand awareness cost-effectively, its business may suffer; and if Coupa fails to manage its recent rapid growth effectively, Coupa may be unable to execute its business plan, maintain high levels of service, or adequately address competitive challenges.

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 Form10-Q filed with the Securities and Exchange Commission (SEC) on December 10, 2018, 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 11, 2019. 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 Software (NASDAQ: COUP) is the leading provider of BSM solutions. We offer a comprehensive, cloud-based BSM platform that has connected hundreds of organizations with more than four million suppliers globally. Our platform provides greater visibility into and control over how companies spend money. Using our platform, businesses are able to achieve real, measurable value and savings that drive their profitability. Learn more at www.coupa.com. Read more on the Coupa Blog or follow @Coupa on Twitter.

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Investor Relations:

NMN Advisors for Coupa

Nicole Noutsios

(510)315-1003

ir@coupa.com

Media Contact:

Global Public Relations

Dan Mahoney

(650)485-8506

dan.mahoney@coupa.com

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COUPA SOFTWARE INCORPORATED

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(unaudited)

	Three Months Ended January 31,						Year Ended January 31,
	2019			2018			2019			2018
Revenues:
Subscription services	$	67,529		$	46,642		$	233,428		$	164,865
Professional services and other		7,379			7,110			26,938			21,915
Total revenues		74,908			53,752			260,366			186,780
Cost of revenues:
Subscription services		16,216			9,906			53,153			36,481
Professional services and other		8,809			6,560			30,301			23,425
Total cost of revenues		25,025			16,466			83,454			59,906
Gross profit		49,883			37,286			176,912			126,874
Operating expenses:
Research and development		18,915			13,235			61,608			44,536
Sales and marketing		28,797			21,830			105,659			88,722
General and administrative		16,920			11,278			57,005			38,578
Total operating expenses		64,632			46,343			224,272			171,836
Loss from operations		(14,749	)		(9,057	)		(47,360	)		(44,962	)
Interest expense		(3,242	)		(490	)		(12,518	)		(502	)
Interest income and other, net		2,255			2,034			3,817			3,307
Loss before provision for (benefit from) income taxes		(15,736	)		(7,513	)		(56,061	)		(42,157	)
Provision for (benefit from) income taxes		835			1,210			(537	)		1,648
Net loss	$	(16,571	)	$	(8,723	)	$	(55,524	)	$	(43,805	)
Net loss per share attributable to common stockholders, basic and diluted	$	0.28		$	0.16		$	0.96		$	0.83
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted		59,752			54,810			57,716			52,999

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COUPA SOFTWARE INCORPORATED

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(unaudited)

	January 31, 2019			January 31, 2018
Assets
Current assets:
Cash and cash equivalents	$	141,250		$	412,903
Marketable securities		180,169			—
Accounts receivable, net of allowances		95,274			61,366
Prepaid expenses and other current assets		10,343			10,952
Deferred commissions, current portion		7,324			3,756
Total current assets		434,360			488,977
Property and equipment, net		10,549			5,186
Deferred commissions, net of current portion		18,904			3,896
Goodwill		209,560			44,410
Intangible assets, net		55,925			20,020
Other assets		10,766			9,961
Total assets	$	740,064		$	572,450
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	5,485		$	1,342
Accrued expenses and other current liabilities		41,792			26,643
Deferred revenue, current portion		179,967			125,714
Convertible senior notes, net		174,615			—
Total current liabilities		401,859			153,699
Convertible senior notes, net		—			163,010
Deferred revenue, net of current portion		2,620			2,316
Other liabilities		22,304			12,880
Total liabilities		426,783			331,905
Stockholders’ equity:
Preferred stock, $0.0001 par value per share		—			—
Common stock, $0.0001 par value per share		6			6
Additional paid-in capital		567,797			445,318
Accumulated other comprehensive income (loss)		335			(298	)
Accumulated deficit		(254,857	)		(204,481	)
Total stockholders’ equity		313,281			240,545
Total liabilities and stockholders’ equity	$	740,064		$	572,450

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COUPA SOFTWARE INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

	Year Ended January 31,
	2019			2018
Cash flows from operating activities
Net loss	$	(55,524	)	$	(43,805	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		10,442			7,562
Accretion of discounts on marketable securities, net		(1,621	)		—
Amortization of deferred commissions		5,791			4,001
Amortization of debt discount and issuance costs		11,605			459
Stock-based compensation		52,946			29,694
Others		281			41
Changes in operating assets and liabilities net of effects from acquisitions:
Accounts receivable		(28,493	)		(10,710	)
Prepaid expenses and other current assets		410			(390	)
Other assets		(3,402	)		(746	)
Deferred commissions		(15,332	)		(5,667	)
Accounts payable		3,182			(4,005	)
Accrued expenses and other liabilities		11,399			7,120
Deferred revenue		45,752			36,072
Net cash provided by operating activities		37,436			19,626
Cash flows from investing activities
Purchase of marketable securities		(302,922	)		—
Maturities of marketable securities		124,139			—
Acquisitions, net of cash acquired		(143,885	)		(46,075	)
Purchase of property and equipment		(7,528	)		(4,488	)
Net cash used in investing activities		(330,196	)		(50,563	)
Cash flows from financing activities
Proceeds from issuance of convertible senior notes, net of issuance costs		(639	)		223,675
Purchase of capped call		—			(23,322	)
Proceeds from issuance of common stock, net of underwriting discounts, commissions and offering costs		—			22,264
Proceeds from the exercise of common stock options		12,964			12,500
Proceeds from issuance of common stock for employee stock purchase plan		8,778			6,824
Net cash provided by financing activities		21,103			241,941
Net (decrease) increase in cash, cash equivalents, and restricted cash		(271,657	)		211,004
Cash, cash equivalents, and restricted cash at beginning of year		412,976			201,972
Cash, cash equivalents, and restricted cash at end of period	$	141,319		$	412,976
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents		141,250			412,903
Restricted cash included in other assets		69			73
Total cash, cash equivalents, and restricted cash	$	141,319		$	412,976

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COUPA SOFTWARE INCORPORATED

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended January 31, 2019

(in thousands, except per share amounts)

(unaudited)

	GAAP			Share-Based Compensation Expenses			Amortization of Acquired Intangible Assets			Amortization of Debt Discount and Issuance Costs			Other Expenses			Non-GAAP
Costs and expenses:
Costs of subscription services	$	16,216		$	(1,209	)	$	(2,009	)	$	—		$	—		$	12,998
Costs of professional services and other		8,809			(1,183	)		—			—			—			7,626
Gross profit		66.6	%		3.2	%		2.7	%		0.0	%		0.0	%		72.5	%
Research and development		18,915			(3,290	)		—			—			—			15,625
Sales and marketing		28,797			(4,054	)		(841	)		—			—			23,902
General and administrative		16,920			(4,520	)		—			—			—			12,400
Income (loss) from operations		(14,749	)		14,256			2,850			—			—			2,357
Operating margin		-19.7	%		19.0	%		3.8	%		0.0	%		0.0	%		3.1	%
Interest expense		(3,242	)		—			—			3,010			—			(232	)
Interest income and other, net		2,255			—			—			—			—			2,255
Income (loss) before provision for income taxes		(15,736	)		14,256			2,850			3,010			—			4,380
Provision for income taxes		835			220			(85	)		—			48			1,018
Net income (loss)		(16,571	)		14,036			2,935			3,010			(48	)		3,362
Net income (loss) per share attributable to common stockholders, basic (1)	$	(0.28	)													$	0.06
Net income (loss) per share attributable to common stockholders, diluted (1)	$	(0.28	)													$	0.05

(1) GAAP net loss per share is calculated based upon 59,752 basic and diluted weighted-average shares of common stock. Non-GAAP net income per share is calculated based upon 59,752 basic and 66,482 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. Please note that the Company began reflecting the anti-dilutive impact of the capped call transactions entered into in connection with the convertible notes in its calculation of diluted weighted-average shares of common stock to determine non-GAAP net income per share beginning with the quarter ended January 31, 2019. The effect of this change is not material for any period previously presented.

COUPA SOFTWARE INCORPORATED

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended January 31, 2018

(in thousands, except per share amounts)

(unaudited)

	GAAP			Share-Based Compensation Expenses			Amortization of Acquired Intangible Assets			Amortization of Debt Discount and Issuance Costs			Non-GAAP
Costs and expenses:
Costs of subscription services	$	9,906		$	(636	)	$	(771	)	$	—		$	8,499
Costs of professional services and other		6,560			(757	)		—			—			5,803
Gross profit		69.4	%		2.6	%		1.4	%		0.0	%		73.4	%
Research and development		13,235			(2,130	)		—			—			11,105
Sales and marketing		21,830			(2,324	)		(258	)		—			19,248
General and administrative		11,278			(3,065	)		—			—			8,213
Income (loss) from operations		(9,057	)		8,912			1,029			—			884
Operating margin		-16.8	%		16.6	%		1.9	%		0.0	%		1.7	%
Interest expense		(490	)		—			—			459			(31	)
Interest income and other, net		2,034			—			—			—			2,034
Income (loss) before provision for income taxes		(7,513	)		8,912			1,029			459			2,887
Provision for income taxes		1,210			106			173			—			1,489
Net income (loss)		(8,723	)		8,806			856			459			1,398
Net income (loss) per share attributable to common stockholders, basic (1)	$	(0.16	)										$	0.03
Net income (loss) per share attributable to common stockholders, diluted (1)	$	(0.16	)										$	0.02

(1) GAAP net loss per share is calculated based upon 54,810 basic and diluted weighted-average shares of common stock. Non-GAAP net income per share is calculated based upon 54,810 basic and 62,299 diluted weighted-average shares of common stock.

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COUPA SOFTWARE INCORPORATED

Reconciliation of GAAP to Non-GAAP Financial Measures

Year Ended January 31, 2019

(in thousands, except per share amounts)

(unaudited)

	GAAP			Share-Based Compensation Expenses			Amortization of Acquired Intangible Assets			Amortization of Debt Discount and Issuance Costs			Other Expenses(2)			Non-GAAP
Costs and expenses:
Costs of subscription services	$	53,153		$	(4,285	)	$	(5,045	)		—			—		$	43,823
Costs of professional services and other		30,301			(4,269	)		—			—			—			26,032
Gross profit		67.9	%		3.3	%		1.9	%		0.0	%		0.0	%		73.2	%
Research and development		61,608			(11,841	)		—			—			—			49,767
Sales and marketing		105,659			(14,786	)		(1,835	)		—			—			89,038
General and administrative		57,005			(17,765	)		—			—			—			39,240
Income (loss) from operations		(47,360	)		52,946			6,880			—			—			12,466
Operating margin		-18.2	%		20.3	%		2.6	%		0.0	%		0.0	%		4.8	%
Interest expense		(12,518	)		—			—			11,605			—			(913	)
Interest income and other, net		3,817			—			—			—			—			3,817
Income (loss) before provision for (benefit from) income taxes		(56,061	)		52,946			6,880			11,605			—			15,370
Provision for (benefit from) income taxes		(537	)		1,142			8			—			3,174			3,787
Net income (loss)		(55,524	)		51,804			6,872			11,605			(3,174	)		11,583
Net income (loss) per share attributable to common stockholders, basic (1)	$	(0.96	)													$	0.20
Net income (loss) per share attributable to common stockholders, diluted (1)	$	(0.96	)													$	0.18

(1) GAAP net loss per share is calculated based upon 57,716 basic and diluted weighted-average shares of common stock. Non-GAAP net income per share is calculated based upon 57,716 basic and 64,065 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. Please note that the Company began reflecting the anti-dilutive impact of the capped call transactions entered into in connection with the convertible notes in its calculation of diluted weighted-average shares of common stock to determine non-GAAP net income per share beginning with the quarter ended January 31, 2019. The effect of this change is not material for any period previously presented.

(2) Other expenses consists of the release of a valuation allowance against deferred tax assets.

COUPA SOFTWARE INCORPORATED

Reconciliation of GAAP to Non-GAAP Financial Measures

Year Ended January 31, 2018

(in thousands, except per share amounts)

(unaudited)

	GAAP			Share-Based Compensation Expenses			Amortization of Acquired Intangible Assets			Amortization of Debt Discount and Issuance Costs			Non-GAAP
Costs and expenses:
Costs of subscription services	$	36,481		$	(2,105	)	$	(2,792	)		—		$	31,584
Costs of professional services and other		23,425			(2,722	)		—			—			20,703
Gross profit		67.9	%		2.6	%		1.5	%		0.0	%		72.0	%
Research and development		44,536			(6,928	)		—			—			37,608
Sales and marketing		88,722			(8,476	)		(642	)		—			79,604
General and administrative		38,578			(9,464	)		—			—			29,114
Loss from operations		(44,962	)		29,695			3,434			—			(11,833	)
Operating margin		-24.1	%		15.9	%		1.8	%		0.0	%		-6.4	%
Interest expense		(502	)		—			—			459			(43	)
Interest income and other, net		3,307			—			—			—			3,307
Loss before provision for income taxes		(42,157	)		29,695			3,434			459			(8,569	)
Provision for income taxes		1,648			691			411			—			2,750
Net loss		(43,805	)		29,004			3,023			459			(11,319	)
Net loss per share attributable to common stockholders, basic and diluted (1)	$	(0.83	)										$	(0.21	)

(1) Calculated based upon 52,999 basic and diluted weighted-average shares of common stock.

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COUPA SOFTWARE INCORPORATED

Reconciliation of GAAP Cash Flows from Operations to Free Cash Flows

(A Non-GAAP Financial Measure)

(in thousands)

(unaudited)

	Three Months Ended January 31,						Year Ended January 31,
	2019			2018			2019			2018
Net cash provided by (used in) operating activities	$	9,473		$	(1,672	)	$	37,436		$	19,626
Less: purchases of property and equipment		(2,658	)		(901	)		(7,528	)		(4,488	)
Free cash flows	$	6,815		$	(2,573	)	$	29,908		$	15,138

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