Coupa Software (COUP) 8-K Coupa Software Reports Fourth Quarter & Full Year Fiscal 2020 Financial Results

Exhibit 99.1

Coupa Software Reports Fourth Quarter & Full Year Fiscal 2020 Financial Results

Record Annual Revenues of $389.7 Million, Up 50% Year-Over-Year

Annual Calculated Billings of $468.9 Million, Up 49% Year-Over-Year

Record Annual Operating Cash Flows of $68.2 Million

SAN MATEO, Calif., March 16, 2020 – Coupa Software (NASDAQ: COUP) today announced financial results for its fourth quarter and fiscal year ended January 31, 2020.

“Coupa’s uniquely comprehensive Business Spend Management platform delivers value and savings to our customers by providing visibility, compliance, control and automation,” said Rob Bernshteyn, chairman and chief executive officer at Coupa. “Our record annual revenue of $390 million and quarterly revenue of $111 million, along with record operating and free cash flow performance are just a few of the financial results that reflect the real, measurable value being unlocked by members of our global Coupa community.”

Coupa defines calculated billings as the change in deferred revenue on the balance sheet for the period, plus revenue recognized during the period. Coupa defines free cash flows as operating cash flows less purchases of property and equipment. See the section titled“Non-GAAP Financial Measures” and the reconciliation tables below for important details regarding Coupa’snon-GAAP measures.

Fourth Quarter Results

• Total revenues were $111.5 million, an increase of 49% compared to the same period last year. Subscription revenues were $98.6 million, an increase of 46% compared to the same period last year.

• GAAP operating loss was $15.9 million, compared to a loss of $14.7 million for the same period last year.Non-GAAP operating income was $13.3 million, compared to income of $2.4 million for the same period last year.

• GAAP net loss was $24.1 million, compared to a loss of $16.6 million for the same period last year. GAAP net loss per basic and diluted share was $0.38, compared to a loss of $0.28 for the same period last year.Non-GAAP net income was $15.0 million, compared to $3.4 million for the same period last year.Non-GAAP net income per diluted share was $0.21, compared to $0.05 for the same period last year.

• Operating cash flows and free cash flows were positive $22.3 million and $20.2 million, respectively, for the quarter ended January 31, 2020.

Fiscal Year 2020 Results

• Total revenues were $389.7 million, an increase of 50% from the previous year. Subscription revenues were $345.3 million, an increase of 48% from the previous year.

• GAAP operating loss was $73.4 million, compared to a loss of $47.4 million for the previous year.Non-GAAP operating income was $31.9 million, compared to income of $12.5 million for the previous year.

• GAAP net loss was $90.8 million, compared to a loss of $55.5 million for the previous year. GAAP net loss per basic and diluted share was $1.45, compared to a loss of $0.96 for the previous year.Non-GAAP net income was $36.6 million, compared to $11.6 million for the previous year.Non-GAAP net income per diluted share was $0.52, compared to $0.18 for the previous year.

• Operating cash flows and free cash flows for the year ended January 31, 2020, were $68.2 million and $56.2 million, respectively.

Business Outlook:

The following forward-looking statements reflect Coupa’s expectations as of March 16, 2020.

First quarter of fiscal 2021:

• Total revenues are expected to be between $111.5 and $112.5 million.

• Subscription revenues are expected to be between $101.5 and $102.5 million.

• Professional services and other revenues are expected to be approximately $10.0 million.

• Non-GAAP income from operations is expected to be between $4.0 and $5.5 million.

• Non-GAAP net income per diluted share is expected to be between $0.06 and $0.08 per share.

• Diluted weighted average share count is expected to be 72.5 million shares.

Full year fiscal 2021:

• Total revenues are expected to be between $488.0 and $490.0 million.

• Non-GAAP income from operations is expected to be between $21.0 and $23.0 million.

• Non-GAAP net income per diluted share is expected to be between $0.30 and $0.33 per share.

• Diluted weighted average share count is expected to be 73.5 million shares.

Coupa has not reconciled its expectations fornon-GAAP income from operations to GAAP loss from operations ornon-GAAP net income per share to GAAP net loss per share because certain items excluded fromnon-GAAP income from operations andnon-GAAP net income, such as charges related to share-based compensation expenses, amortization of acquired intangible assets, gains/losses on early conversion of convertible notes, 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.

Recent Business Highlights:

• Welcomed many new customers into the Coupa community in Q4, including the following: American Signature, Ascend Performance Materials, AstraZeneca, Blue Sphere Singapore, Brex Inc., Centre for Neuro Skills, Event Hospitality and Entertainment, Fox

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Corporation, Grupo Planeta, John Lewis Partnership, Lagardere Services Asia Pacific, Lightspeed HQ, Lucid Energy Group, NFI Industries, Orangetheory Fitness, ProPetro Holding, Quilter, Renewi, Rituals Cosmetics, SEEK, Shinsei Bank, Skyservice Business Aviation, SOK S Group, Sterilite, The Core Institute, The University of Texas System, Three Ireland, Watco Companies and Wintershall Dea.

• Selected to digitally transform BMW Group’s business spend management processes.

• Named a leader in The Forrester Wave^™: eProcurement Platforms, Q4 2019, receiving the highest scores possible in 15 criteria, including: Market approach, Technology robustness, Supplier integration, Spend optimization, Roadmap and planned enhancements and Partner ecosystem.

• Acquired travel optimization leader Yapta to deliver more value across Business Spend Management by empowering companies to achieve greater savings in Travel and Expense.

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 (855)302-8830, using conference code 4766356.

• International parties can access the call by dialing +1 (330)871-6073, using conference code 4766356.

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 23, 2020. To access the replay, parties in the U.S. and Canada should call (855)859-2056 and enter conference code 4766356. International parties should call +1 (404)537-3406 and enter conference code 4766356.

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.

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 the uncertain impact of the global coronavirus pandemic, Coupa has a limited operating history at its current scale, 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; 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; the impact of acquisitions on its business, such as integration issues, assumption of unknown or unforeseen liabilities and ability to retain customers; 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 Form10-Q filed with the Securities and Exchange Commission (SEC) on December 3, 2019, 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.

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The forward-looking statements in this release reflect Coupa’s expectations as of March 16, 2020. 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 a leading provider of BSM solutions. We offer a comprehensive, cloud-based BSM platform that has connected hundreds of organizations with more than five million suppliers globally. The Coupa BSM platform provides greater visibility into and control over how companies spend money. Using the Coupa BSM platform, businesses are able to achieve real, measurable value and savings that drive their profitability. Learn more atwww.coupa.com. Read more on theCoupa Blog or follow@Coupa on Twitter.

Investor Relations:

Steven Horwitz

(650)338-1340

ir@coupa.com

Media Contact:

Kristi Lewandowski

(650)485-8506

kristi.lewandowski@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,
	2020			2019			2020			2019
Revenues:
Subscription	$	98,647		$	67,529		$	345,261		$	233,428
Professional services and other		12,805			7,379			44,458			26,938
Total revenues		111,452			74,908			389,719			260,366
Cost of revenues:
Subscription		26,235			16,216			89,452			53,153
Professional services and other		13,868			8,809			49,764			30,301
Total cost of revenues		40,103			25,025			139,216			83,454
Gross profit		71,349			49,883			250,503			176,912
Operating expenses:
Research and development		25,251			18,915			93,089			61,608
Sales and marketing		42,641			28,797			155,216			105,659
General and administrative	��	19,326			16,920			75,623			57,005
Total operating expenses		87,218			64,632			323,928			224,272
Loss from operations		(15,869	)		(14,749	)		(73,425	)		(47,360	)
Interest expense		(12,784	)		(3,242	)		(37,658	)		(12,518	)
Interest income and other, net		2,837			2,255			9,316			3,817
Loss before provision for (benefit from) income taxes		(25,816	)		(15,736	)		(101,767	)		(56,061	)
Provision for (benefit from) income taxes		(1,763	)		835			(10,935	)		(537	)
Net loss	$	(24,053	)	$	(16,571	)	$	(90,832	)	$	(55,524	)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.38	)	$	(0.28	)	$	(1.45	)	$	(0.96	)
Weighted-average number of shares used in computing net loss per share attributable to common stockholders, basic and diluted		63,999			59,752			62,484			57,716

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COUPA SOFTWARE INCORPORATED

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

(unaudited)

	January 31, 2020			January 31, 2019
Assets
Current assets:
Cash and cash equivalents	$	268,045		$	141,250
Marketable securities		499,160			180,169
Accounts receivable, net of allowances		118,508			95,274
Prepaid expenses and other current assets		31,636			10,343
Deferred commissions, current portion		11,982			7,324
Total current assets		929,331			434,360
Property and equipment, net		18,802			10,549
Deferred commissions, net of current portion		30,921			18,904
Goodwill		442,112			209,560
Intangible assets, net		128,660			55,925
Operating lease right-of-use assets		32,026			—
Other assets		14,399			10,766
Total assets	$	1,596,251		$	740,064
Liabilities, Temporary Equity and Stockholders’ Equity
Current liabilities:
Accounts payable	$	3,517		$	5,485
Accrued expenses and other current liabilities		54,245			41,792
Deferred revenue, current portion		257,692			179,967
Current portion of convertible senior notes, net		187,115			174,615
Operating lease liabilities, current portion		8,199			—
Total current liabilities		510,768			401,859
Convertible senior notes, net		562,612			—
Deferred revenue, net of current portion		4,091			2,620
Operating lease liabilities, net of current portion		25,490			—
Other liabilities		30,798			22,304
Total liabilities		1,133,759			426,783
Temporary equity		16,835			—
Stockholders’ equity:
Preferred stock, $0.0001 par value per share		—			—
Common stock, $0.0001 par value per share		7			6
Additional paid-in capital		790,468			567,797
Accumulated other comprehensive income		871			335
Accumulated deficit		(345,689	)		(254,857	)
Total stockholders’ equity		445,657			313,281
Total liabilities, temporary equity and stockholders’ equity	$	1,596,251		$	740,064

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COUPA SOFTWARE INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Year Ended January 31,
	2020			2019
Cash flows from operating activities
Net loss	$	(90,832	)	$	(55,524	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		28,553			10,442
Accretion of discounts on marketable securities, net		325			(1,621	)
Amortization of deferred commissions		9,556			5,791
Amortization of debt discount and issuance costs		35,922			11,605
Stock-based compensation		81,376			52,945
Other		(1,381	)		282
Changes in operating assets and liabilities net of effects from acquisitions:
Accounts receivable		(11,154	)		(28,493	)
Prepaid expenses and other current assets		(16,374	)		410
Other assets		2,963			(3,402	)
Deferred commissions		(26,231	)		(15,332	)
Accounts payable		(3,720	)		3,182
Accrued expenses and other liabilities		(14,520	)		11,399
Deferred revenue		73,673			45,752
Net cash provided by operating activities		68,156			37,436
Cash flows from investing activities
Purchases of marketable securities		(583,151	)		(302,922	)
Maturities of marketable securities		66,363			124,139
Sales of marketable securities		199,314			—
Acquisitions, net of cash acquired		(308,406	)		(143,885	)
Purchases of property and equipment		(11,970	)		(7,528	)
Net cash used in investing activities		(637,850	)		(330,196	)
Cash flows from financing activities
Proceeds from issuance of convertible senior notes, net of issuance costs		786,157			(639	)
Purchase of capped calls		(118,738	)		—
Proceeds from the exercise of common stock options		17,781			12,964
Proceeds from issuance of common stock for employee stock purchase plan		11,455			8,778
Net cash provided by financing activities		696,655			21,103
Net increase (decrease) in cash, cash equivalents, and restricted cash		126,961			(271,657	)
Cash, cash equivalents, and restricted cash at beginning of year		141,319			412,976
Cash, cash equivalents, and restricted cash at end of period	$	268,280		$	141,319
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents		268,045			141,250
Restricted cash included in other assets and prepaid expenses and other current assets		235			69
Total cash, cash equivalents, and restricted cash	$	268,280		$	141,319

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COUPA SOFTWARE INCORPORATED

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended January 31, 2020

(in thousands, except percentages and 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	$	26,235		$	(1,937	)	$	(5,707	)	$	—		$	—		$	18,591
Costs of professional services and other		13,868			(2,192	)		(200	)		—			—			11,476
Gross profit		64.0	%		3.7	%		5.3	%		0.0	%		0.0	%		73.0	%
Research and development		25,251			(5,519	)		—			—			—			19,732
Sales and marketing		42,641			(6,318	)		(1,992	)		—			—			34,331
General and administrative		19,326			(5,342	)		—			—			—			13,984
Income (loss) from operations		(15,869	)		21,308			7,899			—			—			13,338
Operating margin		-14.2	%		19.1	%		7.1	%		0.0	%		0.0	%		12.0	%
Interest expense		(12,784	)		—			—			12,572			—			(212	)
Interest income and other, net		2,837			—			—			—			—			2,837
Income (loss) before provision for (benefit from) income taxes		(25,816	)		21,308			7,899			12,572			—			15,963
Provision for (benefit from) income taxes		(1,763	)		531			(135	)		—			2,331			964
Net income (loss)		(24,053	)		20,777			8,034			12,572			(2,331	)		14,999
Net income (loss) per share attributable to common stockholders, basic(1)	$	(0.38	)													$	0.23
Net income (loss) per share attributable to common stockholders, diluted(1)	$	(0.38	)													$	0.21

(1) GAAP net loss per share is calculated based upon 63,999 basic and diluted weighted-average shares of common stock. Non-GAAP net income per share is calculated based upon 63,999 basic and 72,235 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.

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COUPA SOFTWARE INCORPORATED

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended January 31, 2019

(in thousands, except percentages and 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	$	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.

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

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COUPA SOFTWARE INCORPORATED

Reconciliation of GAAP to Non-GAAP Financial Measures

Year Ended January 31, 2020

(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	$	89,452		$	(6,982	)	$	(17,242	)	$	—		$	—		$	65,228
Costs of professional services and other		49,764			(7,773	)		(400	)		—			—			41,591
Gross profit		64.3	%		3.8	%		4.5	%		0.0	%		0.0	%		72.6	%
Research and development		93,089			(20,159	)		—			—			—			72,930
Sales and marketing		155,216			(23,352	)		(6,334	)		—			—			125,530
General and administrative		75,623			(23,110	)		—			—			—			52,513
Income (loss) from operations		(73,425	)		81,376			23,976			—			—			31,927
Operating margin		-18.8	%		20.9	%		6.2	%		0.0	%		0.0	%		8.2	%
Interest expense		(37,658	)		—			—			35,922			—			(1,736	)
Interest income and other, net		9,316			—			—			—			—			9,316
Income (loss) before provision for (benefit from) income taxes		(101,767	)		81,376			23,976			35,922			—			39,507
Provision for (benefit from) income taxes		(10,935	)		2,328			(504	)		—			12,002			2,891
Net income (loss)		(90,832	)		79,048			24,480			35,922			(12,002	)		36,616
Net income (loss) per share attributable to common stockholders, basic(1)	$	(1.45	)													$	0.59
Net income (loss) per share attributable to common stockholders, diluted(1)	$	(1.45	)													$	0.52

(1) GAAP net loss per share is calculated based upon 62,484 basic and diluted weighted-average shares of common stock.Non-GAAP net income per share is calculated based upon 62,484 basic and 69,933 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.

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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 valuation allowances against deferred tax assets.

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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,
	2020			2019			2020			2019
Net cash provided by operating activities	$	22,279		$	9,473		$	68,156		$	37,436
Less: purchases of property and equipment		(2,108	)		(2,658	)		(11,970	)		(7,528	)
Free cash flows	$	20,171		$	6,815		$	56,186		$	29,908

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