SAN MATEO Jun 9, 2020 (Thomson StreetEvents) — Edited Transcript of Coupa Software Inc earnings conference call or presentation Monday, June 8, 2020 at 9:00:00pm GMT

* Todd R. Ford

* Aleksandr J. Zukin

RBC Capital Markets, Research Division – MD of Software Equity Research & Analyst

Oppenheimer & Co. Inc., Research Division – Director & Senior Analyst

* Patrick D. Walravens

JMP Securities LLC, Research Division – MD, Director of Technology Research and Senior Research Analyst

Good day, ladies and gentlemen, and welcome to the Coupa Software First Quarter Fiscal Year 2021 Earnings Release Conference Call. (Operator Instructions) As a reminder, this call is being recorded.

I would now like to introduce your host for today’s conference call, Mr. Steven Horwitz, VP of Investor Relations. Mr. Horwitz, you may begin your conference.

Thank you. Good afternoon, and welcome to Coupa Software’s first quarter conference call. Joining me today are Rob Bernshteyn, Coupa’s CEO; and Todd Ford, Coupa’s CFO. Our remarks today include forward-looking statements about guidance and future results of operations, strategies, market size, products, competitive position and potential growth opportunities. Our actual results may be materially different. Forward-looking statements involve risks and uncertainties and assumptions that are described in our most recently filed 10-Q. These forward-looking statements are based on our beliefs and assumptions today, and we disclaim any obligation to update any forward-looking statements. If this call is played after today, the information presented may not contain current or accurate information.

We also present both GAAP and non-GAAP financial measures. A reconciliation of certain of these measures is included in today’s earnings release, which you can find on our Investor Relations website. A replay of this call will also be available. Unless otherwise stated, growth comparisons are against the same period of the prior year.

With that, I will now turn the call over to Rob.

Thank you, Steven. Hello, everyone, and thank you for joining us.

Let me start my remarks by vehemently acknowledging the racial intolerance and ensuing violence taking place across America. My colleagues and I stand committed to support of all that seek to eradicate racism, hatred and injustice wherever it may rear its ugly head. We acknowledge that we’ve got to start making changes as a society and as a people. And we are committed to the cause.

On a separate and key topic, let me also say that our thoughts and prayers go out to all those affected by the global coronavirus pandemic. We thank all the brave individuals putting themselves in harm’s way to help others.

Now as you’d expect, when the pandemic broke, the safety of our colleagues had to come first, and that continues to be the case. Being a highly distributed global company, before the shelter-in-place orders were put into effect, made for a relatively smooth transition to the work-from-home model for our tech-savvy organization. Our video conferencing usage has nearly doubled to more than 3 hours a day on average per colleague as we stay connected and continue pushing the value creation that our community has come to expect from Coupa. We remain connected, focused and in positive spirits as we continue to do what we do best.

In the face of these difficult times, we are leading with courage and conviction, key elements of the culture upon which we’ve been building Coupa for over a decade. Additionally, our core values of ensuring customer success, focusing on results and striving for excellence have continued to guide us. Our values are the binding mechanism behind our ability to navigate this crisis together as colleagues, while maximizing the Value as a Service we deliver to our community. Regardless of what the conditions, my team and I continue to play on the field every single day.

From a business perspective, our strong balance sheet and disciplined financial model allow us to invest in the business with resiliency and long-term growth in mind. In Q1, given the richness of talent in the market, we hired new employees at a pace that was relatively in line with recent quarters. As we have been for the last 45 quarters, we will continue to be thoughtful and meticulous with respect to hiring and making investments in our business.

Despite down settling environment we all experienced, we at Coupa delivered strong results in Q1, including record revenue of $119 million. During the quarter, we saw a combination of some deals being put on pause, some deals closing with normal cadence and even some deals being pulled in. In all cases, we believe it to be our responsibility to help these customers focus both on long-term business success and on near-term business resiliency. And we’re proud to play a role.

To that end, our marketing team quickly focused on messaging around the business resiliency that our comprehensive Coupa platform provides to emphasize visibility, control and agility as well as evaluating risk and fortifying strength in the supply chain. Our methods of communicating with our community were optimized. From a prospect perspective, for example, we moved our advertising from airports to digital banners on targeted television program. From a customer perspective, we fine-tuned our approach with greater local and industry-focused virtual engagement. More broadly, I also personally called upon the procurement function at all companies to step up and lead in this time of uncertainty and many have. Business spend management and the role of procurement is perhaps more important now this unprecedented time than it has ever been.

An example of one of our customers demonstrating this leadership is Alejandro Basterrechea, Head of Procurement Operations at Zalando, Europe’s largest online fashion retailer. Using Coupa, Alejandro was able to reconfigure Zalando’s approval chains in less than 1 hour to help immediately contain and control costs. Being able to reconfigure approval chains in less than 1 hour is a great example of accelerated or the letter A in Coupa. Controlling expenditures was a theme across our customer community, and we are proud to play our part. We ended Q1 with cumulative spend under management now being approximately $1.8 trillion.

In addition to acting quickly to control spend, our customers have looked to Coupa to help mitigate supply risk and build business resiliency. IKEA has relied on Coupa’s strategic sourcing to source 100% of their global transportation and catalog needs. Their head of strategic sourcing optimization highlighted that a single tender could have more than 60 million elements. Having one powerful AI-driven platform allowed users to focus on the task at hand and not the complexity of scenarios.

Customers have also worked to accelerate their payment solutions. A long-time Coupa customer who recently implemented Coupa Pay shared with me personally that they are transitioning to Coupa Pay as quickly as possible to help manage payments with their suppliers because temporary bank solutions are frustrating and archaic. Coupa’s new innovative thinking with Pay is driving real ROI by automating and digitizing the payments process and helping control cash outflows.

During the quarter, we also heard from customers who are appreciative of their newfound ability to work efficiently in a remote environment using Coupa. Maria Clara Mejia from Grupo BIOS, a lean agribusiness company in Colombia told us, and I quote, “With our accounting and purchasing teams working from home, we were able to complete the month end close with no delays for the spend categories that were currently managed through Coupa. We saw much more chaos in categories that were not.” We’re excited to help our existing and new customers drive more and more spend through our platform.

As I mentioned in the past, our vast systems integrator network is a key element to our success. Now with more than 3,500 trained consultants around the world, our partners work closely with our customer success team during the quarter to ensure the projects were being completed on schedule. Despite the more difficult working conditions, 90% of our current implementations saw no impact to their schedules whatsoever. And those that were impacted were projects in the most heavily affected industries. Those projects are now getting back on track as well.

So let’s talk about just some of these recent go-lives, highlighting many of the different value propositions that were unlocked for our customers. Speed and simplicity were demonstrated in Fieldwood Energy’s Coupa go-live. Fieldwood, one of the largest producers of oil and gas in the Gulf of Mexico went live with Coupa BSM in less than 6 months. Increasing — interestingly, with some of their operations team on rigs in the Gulf of Mexico, virtual training and the simplicity of our user-centric platform was simply a necessity, a great example of the letter U in Coupa.

Super quick ROI was on display with the Energy Development Corporation’s go-live. A leading geothermal energy producer in the Philippines, EDC rolled out Coupa Sourcing following a fast track 2-week implementation. After this quick implementation, EDC was able to complete its first 2 sourcing events within 5 days of being live. The ROI realized here within just 3 short weeks is simply fantastic.

Staged value delivery is also commonly seen with Coupa. For example, ERGO, one of the major insurance groups across Europe accelerated their launch date by 3 months to run an urgent sourcing event with more than 100 suppliers. Then Ergo went live with the Coupa BSM platform across source to contract with additional rollouts planned during 2020. This demonstrates how new Coupa community new members can realize immediate value while still implementing a more comprehensive solution in tandem.

As with many of our customers during Q1, we Osotspa, Thailand’s largest energy drink maker, showed nimbleness in their implementation process. They were in the final phase of a go-live when Thailand announced its lockdown due to the coronavirus. Rather than extending the project time line, the implementation teams instantly turned to virtual work and still hit their March go-live target date.

Another example of agility is Molex, a manufacturer of electronic components and interconnection systems, who went live with Coupa remotely in both China and the U.S. With Coupa, Molex quickly standardized processes globally for greater efficiency across procure to pay.

Konica Minolta Business Systems Asia (sic) [Konica Minolta Business Solutions Asia], a hardware and digital solutions technology company, went live with Coupa Business Spend Management as well. Before Coupa, manual paper and spreadsheet-based purchasing processes had controlling — made controlling spend difficult. With Coupa, Konica Minolta has complete and total authority over their spend, enabling preapprovals to ensure on-contract spend compliance.

Speed, fast ROI, staged value, standardization of processes, agility, spend control and many more key value propositions have always been a hallmark of the Coupa community. That spirit is not limited to any one of our offerings. As just one additional example, NEC Corporation of America, a provider of IT and communication solutions is now live on Coupa contingent workforce. They now have a single system of record for contract labor management that is being used by all hiring managers company-wide with an integrated end-to-end process from requisition to release. The value we offer our growing community is vast and impervious. In fact, the current environment further solidifies the urgency of our value proposition and the resiliency it offers. Whether done remotely or in person, we continue to get the job done with our growing community.

Let’s move on to new customers. As always, I want to welcome some of these new customers who have decided to make business spend management a priority and have now joined our Coupa community. To highlight just a few, in Q1, we partnered with Accent Therapeutics, AutoScout24, Black Diamond Therapeutics, Carta, CentralSquare Technologies, Clearway Energy, Clorox, CODA Biotherapeutics, New Horizons Australia, The Howard Hughes Corporation, The Salvation Army, Tomtom, University of North Carolina, Vroom.com, Workiva and others. Many of these new customers are already well underway with their go-live projects.

Now let’s talk about some other updates.

As many of you know, our vision has always been to provide the most comprehensive business fund management solution the world has ever seen as delineated by the letter C in Coupa. We’ve designed the platform to allow our customers to begin getting value in any area where they want to start. As a result, we have seen an increase in demand in some of our most friendly, relevant power applications offering almost immediate value. These include Coupa Advantage, risk assess, strategic sourcing and source together. This increase in demand has been both from new customers and the installed base. A great example of immediate ROI comes with our new Coupa Advantage Express offering. This is the community effect in full display. With Coupa Advantage Express, preset and prenegotiated discounted prices with trusted suppliers are available at the very moment of the go-live. Hard dollar savings are available for all right from the start, and customers are taking full advantage.

That same community dynamic comes into play with customers who are paying close attention to supplier risk mitigation using Coupa Risk Assess. Bank of Montreal was already using Coupa Risk Assess and reached out to share appreciation for its value. Results from coronavirus risk assessments of their suppliers and third parties through the community have enabled them to easily respond to the inquiries on pandemic preparedness risk.

With widespread disruptions in manufacturing and supply, we knew the strategic sourcing and source together could help match suppliers and buyers through our open platform, the letter O in Coupa. Over the past few months, our team has engaged with hundreds of buyers and sellers with approximately 75 customers executing millions of dollars’ worth of orders. As an example, we work with a major airline that needed to secure personal protective equipment for their employees and was unable to do so through their traditional supplier network. By tapping into the Coupa community, they were able to identify and vet alternative sources. As one outcome, more than 1 million masks were delivered to the airline, along with hundreds of thousands to 2 other companies that joined the Source Together event. In fact, in Q1, we decided to reach beyond our existing customer community given the unprecedented time of need. Though not a Coupa customer, Caitlin Delaney, a VP at Oak Street Health, reached out saying that she needed help sourcing personal protective equipment. Not having a robust procurement organization, Oak Street relied on Coupa to recommend suppliers, and Caitlin has now ordered and received hundreds of thousands of dollars of supplies for Oak Street. Caitlin said, and I quote, “When we needed help, Coupa really came through for us. They really helped us and our patients, and we have recommended Coupa to other health care suppliers in our network.”

We’re always so thankful of these types of truthful endorsements. For us, it’s all about our developing Coupa community and how we can all be smarter together.

Our developing community is at the very core of our platform and our continually expanding value proposition. The more insights we have, the greater the value of the prescriptions we can deliver, as denoted by the P in Coupa. One example of value delivered can be seen at CAP COM Federal Credit Union. Using prescriptions provided based on community intelligence, CAP COM identified that they process significantly fewer invoices electronically than their peers in their subindustry and company size. With Coupa’s help, CAP COM identified major suppliers that were already on the Coupa supplier portal electronically invoicing other Coupa customers. Having converted these suppliers to electronic processing, CAP COM can now operate more quickly as well as safely.

To continue the dialogue around more electronic forms of commerce, let’s move on to Coupa Pay. I’m excited to share that we continue to gain traction globally with Accelerate, Virtual Cards and Invoice Payments and have also recently added BNP Paribas as a partner. We now support approximately 100 customers using Coupa Pay, with about 1/2 of them being new customers and 1/2 coming from our installed base. In fact, we have a number of customers who urgently needed Coupa Pay recently. Paper checks are still highly prevalent, as many of you know. Coupa enabled customers in our community to rapidly implement digital check programs. This eliminated the need for many of them to go into their offices and handle paper checks.

Let’s move on to the Coupa Business Spend Index, or BSI, a leading indicator of economic growth based on analyzing hundreds of billions of dollars in aggregated and anonymized business spend. Today, we published the Q2 2020 Coupa BSI. Before getting into the results, I’d like to once again reiterate that the BSI data is not necessarily indicative of the trends we’re seeing in Coupa’s business. While the Q1 BSI was already showcasing indications of a slowing economy, not surprisingly, the Q2 BSI indicates that businesses have grown increasingly concerned about their outlook. Sector data indicates that spend sentiment across most industry verticals has fallen sharply as a result of the global pandemic, with some industries more impacted than others. For example, spend sentiment in the retail sector has dropped significantly below trend as consumers obey stay-at-home orders and are forced to shop online. Additionally, spend sentiment in the manufacturing sector continues to be significantly below trend, likely given the dependence on materials from China as well as production stoppages worldwide.

The one exception has been health and life sciences as spend sentiment in that sector continues to operate above trend. We will continue to closely monitor these trends and make the data available on spendindex.com.

Now I started this call off with a discussion of how our core values drive everything we do here at Coupa. So as has become our custom, I want to take a moment to recognize a few of our colleagues that have made outstanding contributions, which clearly demonstrate these values. Let me start with Keaton Miller, who was recently recognized by his peers for embodying our #1 value of ensuring customer success. His ability to pragmatically assess any situation and to have a meaningful conversation with the customer about value is simply amazing. He instills a spirit of partnership and trust, leading by example to those around him.

Next, I’d like to call out Ariane Lindblom, who was recognized for focusing on results. Ariane is a strategic thinker but is always rolling up her sleeves to get the job done. Her ability to balance a broader vision with practical hands-on work is integral to her success.

Finally, JR Robertson epitomizes striving form. JR has been with us for nearly 10 years having taken on a host of key roles at Coupa. Rarely do you come across someone who is so professional, so committed and so steadfast in their conviction. Congratulations and thank you, Keaton, Ariane and JR.

So in conclusion, rain or shine, with courage and conviction and grounded in our values, we continue to support our colleagues, deliver for our customers and create a future that generates incredible value for all our stakeholders.

With that, let me now hand it over to our Chief Financial Officer, Todd Ford, who will review our Q1 financial results and provide our outlook for the second quarter and updated fiscal 2021. Todd?

——————————————————————————–

Todd R. Ford, Coupa Software Incorporated – CFO [4]

——————————————————————————–

Thanks, Rob, and good afternoon, everyone.

These are certainly unprecedented times. As I discuss our Q1 results and guidance for Q2 and fiscal ’21, I want to give you additional context regarding the key drivers of our business and our approach to managing through the COVID-19 pandemic.

At the highest level, our strategy remains exactly the same. We manage our business to: one, 30%-plus annual revenue growth; two, disciplined sales and marketing investment; and three, demonstrating leverage in our model as it relates to operating and cash flow margins as we continue to grow. As ever, we remain focused on resilience and long-term market leadership.

Now let’s dig into the details. Total revenue for Q1 grew 47% year-over-year to $119 million. Subscription revenue for Q1 was $106 million, up 45% compared to Q1 of last year, comprising 89% of total revenue. Professional services and other revenue was $13 million, which includes the benefit of a few strategic direct services engagements.

Let me highlight a few items that are reflected in Q1 subscription revenue. One, from a linearity perspective, new bookings were back-end-loaded with April being stronger than March. Two, renewals were strong, consistent with prior quarters. And three, there were 2 fewer days in Q1 versus Q4, resulting in less steady state subscription revenue being recognized this quarter compared to Q4. In Q1, we also delivered strong professional services and other revenue, demonstrating our ability to remotely implement and take new customers live, as Rob mentioned in his remarks.

Calculated billings for Q1 were $102 million, up from $75 million in Q1 of last year, representing a 36% year-over-year increase. For the trailing 12 months, calculated billings were $496 million, up from $340 million in the previous trailing 12-month period, representing a 46% increase. Total deferred revenue at the end of Q1 was $244 million, up from $176 million at the end of Q1 last year, a year-over-year increase of 39%.

Let’s now turn to margins and results of operations. Driven by our strong revenue performance and scale in our financial model, our first quarter non-GAAP gross margin was 73.6%. For operating expenses, consistent with our long-term strategy and disciplined approach, we continue to assertively hire across the business with a particular focus on sales and engineering. Although we continue to make these strategic investments in Q1, we were again able to show scale and leverage in our operating margin and free cash flow results.

We delivered non-GAAP operating income of $14.9 million as well as non-GAAP net income of $14.5 million or $0.20 per share on 71.7 million diluted shares. Similarly, cash flow results were strong for the quarter. GAAP operating cash flows for Q1 were $15.4 million, and adjusted free cash flows were $22.4 million or 19% of total revenues. As a reminder, we define adjusted free cash flows as operating cash flows less purchases of equipment plus repayment of convertible senior notes attributable to debt discount.

Q1 was our third straight quarter with more than $20 million of adjusted free cash flows. On a trailing 12-month basis, GAAP operating cash flows were $64.8 million or 15% of total revenue, and adjusted free cash flows were $62.5 million, also 15% of total revenues. Cash at quarter end was $706 million, down from $767 million last quarter. The decrease was driven by $92 million paid to settle the principal of early redemptions received for our 2023 convertible notes.

Now let’s turn to guidance. Before we delve into specific numbers, let me provide some high-level commentary. Our business remains as agile as ever. Regardless of what the broader circumstances in the market may be, we will continue to execute our strategy and position Coupa to win the BSM market and drive long-term stakeholder value for quarters and years to come. With respect to guidance in particular, our current operating thesis is that the macroeconomic environment will remain challenging for at least Q2 and Q3 with things beginning to open up more broadly in Q4.

We entered Q2 with a stronger pipeline than the same time last year, both on a gross basis and in terms of what we would consider to be later-stage qualified pipeline. Not surprisingly, many of our customers and prospects are now operating with significant headwinds, especially those in industries highly affected by the pandemic, making it difficult to predict the timing of when deals will close.

The second quarter and full year 2021 guidance we are providing today incorporates our current assumptions with respect to the macroeconomic environment based on information available to us at this time around new business, renewals, timing of collections and various other inputs. Variations from these assumptions may cause our results to differ. With this as the backdrop, we expect total Q2 revenue of $118 million to $119 million. This includes subscription revenue of $107 million to $108 million and professional services revenue of approximately $11 million. We expect Q2 non-GAAP gross margin of 70% to 71% and non-GAAP income from operations of $5 million to $6.8 million. The result is a non-GAAP net income per share of $0.06 to $0.08 on approximately 73.5 million weighted average diluted shares for the quarter.

On the OpEx side, please note that our sales and marketing expenses will not see the spike in Q2 typically associated with our annual Inspire event. Instead, we will bring our BSM community of customers, prospects, partners and employees together through a series of highly curated virtual and physical experiences over the course of the second half of this year. Furthermore, after generating in excess of $20 million of adjusted free cash flows in each of the past 3 quarters, we expect Q2 adjusted free cash flows to be approximately breakeven, similar to the seasonality we saw last year.

When updating your models, please remember that separate from the impact of COVID-19, we have 2 events from Q2 of last year that impact the year-over-year compare for Q2 billings this year. One, as noted last quarter, some of the new customer billings, which were billed in Q2 of last year, were billed Q1 of this year for the terms of the contract; and two, the Exari acquisition that we completed in Q2 of last year. We estimate that the impact of Q2 billings from these 2 events is approximately $15 million.

For the fiscal year ending January 31, 2021, we expect total revenues of $489 million to $491 million. This includes subscription revenue of $442 million to $444 million and professional services and other revenue of approximately $47 million. We expect non-GAAP gross margin for the year of approximately 71%. We also expect non-GAAP operating income from the year of approximately $28 million to $30 million with non-GAAP earnings per share of approximately $0.36 to $0.38 based upon an estimated 73 million weighted average diluted shares for the year. Although as we noted last quarter, our customer collections at the end of fiscal ’20 significantly exceeded our expectations, creating a difficult year-over-year compare for us this year, we still expect adjusted free cash flows to be up year-over-year on an absolute dollar basis.

To conclude, we are clearly living in uncertain times as we focus on supporting our employees and ensuring that all members of the Coupa community emerge from this pandemic stronger. We will continue to leverage our disciplined financial approach, the strength of our balance sheet and a focus on business resilience to position ourselves to emerge stronger when the current crisis subsides and continue to extend our market leadership position.

Now we would be happy to take your questions. Operator?

================================================================================

Questions and Answers

——————————————————————————–

Operator [1]

——————————————————————————–

(Operator Instructions) And your first question comes from the line of Stan Zlotsky with Morgan Stanley.

——————————————————————————–

Stan Zlotsky, Morgan Stanley, Research Division – VP [2]

——————————————————————————–

Perfect. And congratulations on a very nice quarter given the challenging backdrop. So from my end, you noted that there were some deals that were — that got pulled into the quarter and some that maybe that had pushed out. Are there some commonalities between the kind of deals that you’re seeing being pulled in and some that are maybe getting pushed out? And the ones that are getting pushed out, is it fair to characterize them as maybe closing towards the Q4 part of the year? Or would you expect them to start closing earlier as you start to maybe see a little bit of normalization in Q2 and Q3? And then I have a quick follow-up.

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [3]

——————————————————————————–

Sure. Thanks, Dan. I wouldn’t say there’s anything statistically significant to denote those that were slightly more pulled in, those that were just likely pulled out. I think it’s very context-specific, individual person-specific, situation-specific. But when we think of the pipeline itself, it continues to be very, very robust and continues to build. And we continue to see deals moving through all stages of our pipeline. And of course, as you would expect, our job would be to get these customers onto our platform as soon as humanly possible. I mean the value that it’s delivering for our existing community and some of the newer customers have been able to go-live even through this very difficult first quarter is real. It’s measurable. It’s highly referenceable and undeniable. So our goal is to get these customers onto our platform as soon as possible.

——————————————————————————–

Stan Zlotsky, Morgan Stanley, Research Division – VP [4]

——————————————————————————–

Got it. And then on the Coupa Pay, first of all, thank you for giving us the — at least ballpark for the 100 customers that are now on Coupa Pay. When you look across these customers, which products are you seeing the most traction with within the Coupa Pay portfolio? And how are you thinking about from seeing these 100 customers now come up on the further refinement to the Coupa Pay modernization?

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [5]

——————————————————————————–

Yes, sure. And I appreciate that what’s interesting about Pay is that we’re seeing it get absorbed by our customer community, a little bit, I would say, in tandem with the releases of those 3 offerings that we took GA. So Accelerate, without question, is a critical component that allows folks to really sort out cash flow from both the buy side and sell side. Virtual credit cards continues to be a strong player, but we’re seeing very real traction now with Invoice Payments, which has just a whole host of components that streamline a business process, gets you out of paper, gets you out of arcane, incumbent solutions that is very, very inflexible. So we’re seeing nice adoption across the board, and we’re seeing it interestingly with new customers almost equally as much as we’re seeing with our existing customer base that’s adopting it. So really, really promising.

——————————————————————————–

Operator [6]

——————————————————————————–

Your next question comes from the line of Brian Peterson with Raymond James.

——————————————————————————–

Brian Christopher Peterson, Raymond James & Associates, Inc., Research Division – Senior Research Associate [7]

——————————————————————————–

So Rob, first one for you. I’m just curious on the Value as a Service narrative. When you’re talking to customers, particularly over the last few months, has that changed at all? Because obviously, the ROI proposition has always been there, but the idea of analytics or changing business processes, I’m just curious what have your customer conversations been like in terms of the Value as a Service?

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [8]

——————————————————————————–

Well, thanks for that question. I mean, the customer conversations have been just really humbling and rewarding, on behalf of all my colleagues here, right? I mean, we’ve had companies tell us that they simply wouldn’t have been able to get the spend control they needed to dynamically adjust approvals in a moment’s notice. It just simply would not have had that agility. Others have commented on the visibility that the platform offer them.

Others commented on the ability to easily hot swap from one supplier to another that they identified risk with. Many complimented on the pace of their deployments. I mean we took so many customers live in Q1, and they were amazed about our ability to do that virtually in concert with our systems integrator partners.

Many commented on the openness of the platform, which I was actually a little bit surprised about. But they were commenting on how they didn’t have to concern themselves with certain integration points breaking as they have with older incumbent solutions. So a lot of really, really strong praise from the customer community. And because of that and because obviously the referenceability of that, it bodes well for the continued growth of our community from a prospect perspective as well.

——————————————————————————–

Brian Christopher Peterson, Raymond James & Associates, Inc., Research Division – Senior Research Associate [9]

——————————————————————————–

And maybe just one more. I know, historically, the focus has been much more on acquiring new logos, just where you are in the adoption curve and the opportunity, but been any update on selling back into the installed base? It sounds like that was a pretty strong quarter in that regard.

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [10]

——————————————————————————–

Yes. I appreciate the question. We actually have not changed our approach in any way. We continue to be following very much the same hunter mindset. But what was interesting during the quarter is we had an increase in inbound demand for some of those applications that offer the fastest return given the current situation. So things like the ability to quickly assess supplier risk through our Risk Assess application, the ability to dynamically run a sourcing event, whether it be through Source Together or on their own, the ability to very quickly get their arms around the contingent workforces that they’re using and onboard folks on a temp basis rather than full time. So it was a very, very interesting way to add recurring revenue for us with a much lower cost of customer acquisition relatively, but at the same time, drive greater, greater value as a service to our customers, which is obviously what we’re all about.

——————————————————————————–

Operator [11]

——————————————————————————–

(Operator Instructions) Your next question comes from the line of Siti Panigrahi with Mizuho.

——————————————————————————–

Sitikantha Panigrahi, Mizuho Securities USA LLC, Research Division – MD [12]

——————————————————————————–

Very impressive to see 100 Coupa Pay customer. Could you talk about the traction between the 3 margins, mainly the invoice Payments Module? And also, remind us the pricing model of the 3 different Coupa Pay? And also, you talked about 20% upside in average deal size that includes Coupa Pay. So did you see the similar trend this quarter?

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [13]

——————————————————————————–

Well, there are a number of questions there. I’m not sure I’m going to remember them all in the right order, but let me address, I think, the spirit and the theme of it, which is really around Coupa Pay, our approach to that market and the pricing component there. Just to give you a sense for Coupa in our history, we always want to be on the same side of the table with our customers. We see our customers as our partners, so we never want to be in a situation where we are, in some way, disincenting them from using our platform. So our pricing model is a combination of a subscription that’s often based on kind of transaction volume we’d anticipate as well as some kind of per transaction fee. And the balance between those 2 is somewhat drawn — somewhat concluded based on our interactions with the customer and their willingness to embrace a great upfront fee versus a transactional fee. So that’s our general approach to it.

As I shared in an earlier response to a question asked about Pay, all 3 of the modules are gaining traction in the order that we’ve released them. And Invoice Payments, in particular taking on a very, very significant business value proposition, is really starting to get some meaningful traction. And as we’ve done with every one of our modules, we iterate 3 times a year in our releases. So we continue to learn from the way our customers are using these products and then make them more and more robust with every release is one of the reasons we continue to invest in R&D and continue to invest in our distribution.

——————————————————————————–

Todd R. Ford, Coupa Software Incorporated – CFO [14]

——————————————————————————–

And then with respect to total pricing, the highest level or ARR per average deal continues to go up meaningfully quarter-on-quarter, which really shows the value of the platform. And then with respect to Coupa Pay, in particular, yes, the average deal sizes with Coupa Pay were greater than 20% than those without.

——————————————————————————–

Operator [15]

——————————————————————————–

And your next question comes from the line of Raimo Lenschow with Barclays.

——————————————————————————–

Raimo Lenschow, Barclays Bank PLC, Research Division – MD & Analyst [16]

——————————————————————————–

Congratulations from me as well. A question for you guys. If you look out for — like, obviously, everyone thinks the world is getting better. But if you think about you’re running the business, you see from the BSI index that things are still kind of tough out there, if you look like, what are the metrics that you guys are looking at to kind of stay in tune with the client and stay in tune with the client spending? Can you talk a little bit towards that, please?

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [17]

——————————————————————————–

Well, that’s a phenomenal question, but that one I could give justice with a quick answer. We look at just about every possible operational metric that we can get our arms around the company, and we combine that with our own executive judgment and sense for the leading indicators that are around that. So everything from pipeline development to movement through the pipe, to speed of adoption and go-lives by our customers, to the value generated from the offerings with our installed base, I mean, everything you could possibly imagine. So rest assured that we’re not short of metrics here. It’s having those metrics every quarter, going into them in great detail and then applying our greatest sense and judgment that gives us the ability to make those quarterly decisions around headcount expansion, investment, global reach and all the things that we do at this company.

——————————————————————————–

Operator [18]

——————————————————————————–

And your next question comes from the line of Koji Ikeda with Oppenheimer.

——————————————————————————–

Koji Ikeda, Oppenheimer & Co. Inc., Research Division – Director & Senior Analyst [19]

——————————————————————————–

I just had another question here on Pay with the — thank you for the disclosure on the 100 customers there. And I wanted to dig in a little bit more on those half of those customers, those Pay customers that were new to the company. So I would assume — is the right way to think about it that does that imply that that’s dual deployment of the core procurement platform in Pay at the same time? And how does the current environment change the conversation of dual deployment?

And then I guess just thinking about those 100 Pay customers, overall, how penetrated is Pay within those organizations?

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [20]

——————————————————————————–

Well, Pay is one of our transactional areas, right, so procurement, expenses, invoicing and Pay. And what we’re amazed to see is how much of Pay is being done in very arcane ways today, everything from the paper checks that I described to biweekly batch payment runs with the inability to change parameters, using a whole host of different rails that aren’t exactly optimized for the payments process. So in many cases, we’ll go into a new customer interaction where Pay will actually be the driver for the broader business spend management opportunity. And in many cases, it’s just one of the components.

So again, we won’t be able to drive as much value as quickly as possible to every one of our customers. And we are flexible enough to be in with any of the transactional components as well as any of the power applications to do so.

——————————————————————————–

Koji Ikeda, Oppenheimer & Co. Inc., Research Division – Director & Senior Analyst [21]

——————————————————————————–

Got it. And one quick follow-up for Todd. I might have missed it, but could you talk about the dollar-based financial rate in the quarter?

——————————————————————————–

Todd R. Ford, Coupa Software Incorporated – CFO [22]

——————————————————————————–

So on dollar-based expansion rate, historically, the range has been 110% to 112%. We did note last quarter that it was well above that range, and it was above that range again this quarter, and that’s without including Coupa Pay. Still not ready to put out a new range, just given the volatility of the market and things that are happening.

But in general, yes, we are seeing the dollar-based expansion rate go up. And with existing customers, things such as strategic sourcing and the risk wear products are very important in today’s environment, so we’ve seen more customers digging in with those products. But in general, the dollar-based expansion rate continues to trend strongly.

——————————————————————————–

Operator [23]

——————————————————————————–

Your next question comes from the line of Steve Koenig with Wedbush Securities.

——————————————————————————–

Steven Richard Koenig, Wedbush Securities Inc., Research Division – MD [24]

——————————————————————————–

Appreciate the fact that you guys guide prudently and you had a great quarter and you’re listing your guidance. But I’m wondering, can you — if you think about what your view was 3 months ago versus now that the pandemic is raging, then what’s changed? Can you give us any color with respect to the impact on revenue, whether it’s expansion, renewals or new logos, like which of those have been most impacted? And similarly on billings, any changes to billings terms here, customers not paying, ability to collect?

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [25]

——————————————————————————–

I’m going to let Todd talk about some of the financial measures, but let me just tell you, thematically, it’s absolutely amazing to see companies in many of the conversations I’m having really understand the priority of what we do in a way that we hadn’t seen in the past. We always knew that driving Value as a Service, the driving operational efficiency, that a focus on prudent spending, a focus on mitigating supplier risk, all of that was very, very important. But much of that is really emerging right in front of them as a much broader priority to not just procurement or even CFOs. It’s at the CEO level.

So we’re really excited to be partnering with some of these forward-thinking organizations that not only want to address the current situation, but really want to set themselves up for the next 3 years, 5 years, 10 years, so they can help their company emerge as one that is not only highly operationally efficient, thrifty and thoughtful, but one that’s set up for long-term growth. And much of that begins to play out in our business, which obviously, Todd to speak to from a financial metrics perspective.

——————————————————————————–

Todd R. Ford, Coupa Software Incorporated – CFO [26]

——————————————————————————–

Yes. So there’s a lot of moving parts to your question there. With respect to revenue, the single biggest impact to revenue for us has been Coupa Travel Saver, i.e., the Yapta acquisition. And if you remember back to Q1, we expected $1 million to $2 million of revenue from that business. And if you look at how we’re thinking about that the rest of the year, we’re basically assuming virtually no revenue contribution from that product line. And to the extent that, that travel and leisure market picks up for corporate businesses, that would be upside to our revenue. And if you look at the annual revenue guide, it was obviously a bit lower than our beat for Q1, and that’s really the primary driver for that.

With respect to billings and payment terms, really haven’t seen any difference there yet. And we have had a few customers and impacted industries ask us for extended payment terms. Only a handful of those have actually gotten to my level. So in certain circumstances, there’s good corporate citizens for companies you would all know, and we’ve extended payment terms, 60 days, 90 days and maybe one case that was larger than that. But so far, so good, and we’ll continue to monitor that as time plays out.

And then from a collections perspective, obviously, Q1 was very strong for us. And it really speaks to the value of our platform as well. We’re mission-critical. People need it. They see the value, and so they’re willing to pay. So there have been a couple of exceptions, but actually, that was much better than what I originally thought it would be.

——————————————————————————–

Operator [27]

——————————————————————————–

Your next question comes from the line of Daniel Jester with Citi.

——————————————————————————–

Daniel William Jester, Citigroup Inc, Research Division – VP [28]

——————————————————————————–

I was just wondering, given all the thematic thoughts that you had in your prepared remarks about risk mitigation and companies very focused on their supply chain, I’m wondering, as you talk to sort of new and existing customers, how focused are they on sort of direct procurement versus indirect procurement? And how much of an opportunity is it for you to get even further into a direct procurement?

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [29]

——————————————————————————–

Well, it’s a great question. I mean the conversations I had during the quarter, both were absolutely raised. There’s a real focus on controlling all elements of their spend, direct and indirect. And of course, we supported them on the direct side and the whole host of use cases from complex invoice management electronically to some of those complex sourcing events imaginable, to supplier risk management, to inventory management of direct. So absolutely, that is an opportunity to continue to expand upon with the existing customer base. And frankly, in our platform for the growing customer base, we’re going to be taking on in the months, quarters and years to come.

——————————————————————————–

Operator [30]

——————————————————————————–

Your next question comes from the line of Pat Walravens with JMP Securities.

——————————————————————————–

Patrick D. Walravens, JMP Securities LLC, Research Division – MD, Director of Technology Research and Senior Research Analyst [31]

——————————————————————————–

Great. And let me add my congratulations. Todd, if I look — the midpoint of your guidance works out — for Q2 works out about 25% growth in my model. And then Q3 and Q4 goes sort of ’19, ’18, and I guess you could cut that different ways. But as I look at that, is that — is the difference between sort of those guided growth rates and the 30% a good way to think about the impact of what the economy is like right now? Or should we be thinking about something else?

——————————————————————————–

Todd R. Ford, Coupa Software Incorporated – CFO [32]

——————————————————————————–

It’s always been a bottoms-up approach with us with respect to guidance. And the — if you look at the underlying drivers, right, if you look at professional services revenue, that’s been solid. We have a big pipeline of professional services. We’ve shown the ability to bring customers live remotely. Renewal rates tend to be strong.

The new business is obviously a key driver. And if you look at our sales pipeline from a gross in later stage, it’s higher than ever. But there is the impact of COVID. And from — when you look at the rest of the year, although we have a lot of positive underlying indicators, it’s really hard to project what that’s going to look like in the back half of the year. If you look at the revenue guidance for whether it’s a quarter on an annual basis, the vast majority, well above 95% of that is already contracted even if you assume a conservative renewal rate, a dollar-based expansion rate of 100%.

So as we get more clarity, throughout the rest of the year, as we’ve done in the past, then we’ll continue to update guidance accordingly. But in the near term, it’s — we’re trying to basically project what we see.

——————————————————————————–

Patrick D. Walravens, JMP Securities LLC, Research Division – MD, Director of Technology Research and Senior Research Analyst [33]

——————————————————————————–

That’s great. And then on the billings, you gave the color about the sort of $15 million headwind. I mean, if we — taking that out, would billings growth be about the same as the revenue growth you guided to? I’m just trying to figure out where we put that.

——————————————————————————–

Todd R. Ford, Coupa Software Incorporated – CFO [34]

——————————————————————————–

Yes. So Q2, for the reasons we just discussed, is by far the most difficult quarter from a calculated billings perspective. Once again, professional services. Strong renewal rates, strong. We’ve even looked at renewals going out 18 months and really don’t see any risk. The unknown, obviously, is bankruptcies, right? So while we don’t see any bankruptcy risk, in today’s environment, I wouldn’t be surprised if something happened. And once again, I don’t see anything. We’ve looked at all of our customers.

And then when you kind of roll that all together from a calculated billings perspective, I believe the trailing 12-month calculated billings will be greater than 33% exiting Q2, but the order of magnitude of how much higher will be, given the current macroeconomic environment, is very difficult to ascertain.

And then also, we have the year-over-year impact from Exari as well because we acquired Exari in Q2 of last year.

——————————————————————————–

Operator [35]

——————————————————————————–

Your next question comes from the line of Joseph Vafi with Canaccord.

——————————————————————————–

Joseph Anthony Vafi, Canaccord Genuity Corp., Research Division – Analyst [36]

——————————————————————————–

On Pay once again, I was wondering if you could provide kind of any update on new payment rails that have been added, trends in payment volume from existing customers and how much take rate based revenue or take rate base — really, take rate-based revenue is being derived from the pay module at this point?

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [37]

——————————————————————————–

Sure. So let me just give a little bit of background on the depth of functionality that is managed around Invoice Payments themselves because there, we’re taking on a very significant set of capabilities and rails. They’re traditionally being done either on paper, manually or part of a very arcane, older system. So in order to get heavy volume and take rate transactions, you need to be able to accommodate some of those key capabilities at a level that is at least the 80-20 that a customer would expect. So you would anticipate deployments to happen. First of all, sales happen first. Deployments to happen second, and then transaction volume to accelerate in that order. All 3 of those measures, all 3 of those phases of the life cycle in interacting with our customers are taking place.

And in conversations with those customers in the presales process, we’re finding a right mix that’s good for us as well as fair for the customer themselves, the balance of what component of the offering will be captured in the subscription value that’s derived and what component will be captured via the take rate. And we will continue to flex those and modulate those until we get the mix just right as we look to scale this well beyond 100 customers to thousands of customers, obviously, in the quarters and years to come.

——————————————————————————–

Operator [38]

——————————————————————————–

And your next question comes from the line of Michael Turrin with Wells Fargo.

——————————————————————————–

Michael James Turrin, Wells Fargo Securities, LLC, Research Division – Senior Analyst [39]

——————————————————————————–

We’ve seen other companies and software have a more difficult time sustaining pace in billings and/or free cash flow trajectory here more recently. Is there any additional commentary you can add around how you’re able to deliver upside on both sides of the equation here in this environment in Q1? And then on the expectation for free cash flow closer to breakeven in Q2, maybe how much of that is related to general seasonal patterns you’ve seen versus incremental impacts from the current environment?

——————————————————————————–

Todd R. Ford, Coupa Software Incorporated – CFO [40]

——————————————————————————–

Yes. I think from a financial model perspective, one, we’ve always been very disciplined in how we deploy new capital, how we look at revenue, billings, how we guide. We typically always tried to guide from a perspective of working our way up from the worst-case scenario possible and really focused on execution. I’ve always said this is an execution play. And if we don’t deliver the midterm and long-term targets that we’ve committed, that I would likely get on a call like this and say we just simply didn’t execute. And the pace of execution here, even though it’s been in a COVID environment, has been stunning. And Rob mentioned the number of minutes on Zoom and that type of thing, but we’re engaged. And we have productivity metrics on the sales side, so we can see how many e-mails are being sent, how many meetings are being [setup] (corrected by company after the call) and then just the quality of the pipeline. So I think it’s a combination of being financially disciplined, the way we execute.

And then with respect to free cash flows that you were mentioning, 3 straight quarters are greater than $20 million. If you look at the free cash flows generated in Q2 of last year, it was the low point of the year. Q1 is typically the lowest quarter from a calculated billings perspective, and then that bleeds into Q2 collections, et cetera. So I think it’s just been very disciplined and thoughtful across all of those dimensions.

——————————————————————————–

Operator [41]

——————————————————————————–

And your next question comes from the line of Alex Zukin with RBC Capital Markets.

——————————————————————————–

Aleksandr J. Zukin, RBC Capital Markets, Research Division – MD of Software Equity Research & Analyst [42]

——————————————————————————–

Congrats on dealing with adversity in a stellar way.

I guess, maybe just 2 quick ones for me. Rob, maybe the first one, I want to kind of go a little deeper on a comment you made in the script about reaching out beyond your current customers where you were able to actually leverage your supplier network even for noncustomers. When you think about the Coupa vision and the product direction in the post-COVID world, can you talk about what you see as initiatives that might accelerate or that you might accelerate or defer to solve some of these new pain points for customers?

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [43]

——————————————————————————–

Sure. Sure. Thank you, Alex. I appreciate the question. One of the things that sometimes gets lost in the prepared remarks, even in these conversations, just the power of this incredible community that we’re building. I’ll just give you one example of the kinds of things our team is working on.

Many companies are going to start to reenter or beginning to reenter. And virtually, all of them need certain indirect supplies to make that happen. So we’re actually negotiating product bundles by industry. Do you have certain — using our Source Together capabilities so that customers of all sizes within our community can leverage centralized contracts for everything they need to reenter.

You can imagine in the health care organizations needing surgical masks and hand sanitizers, disinfectant wipes, gloves, N95 masks, sublimated masks, all these things and creating packages for health care organizations that will include things like IR thermometers and isolation gowns and things of that nature. So we’re taking the power of this community and driving incredible volumes to suppliers that are able to deliver for that community at fair pricing that’s delivered rapidly, so they could be very, very agile with their business.

And for me, that’s an incredible power that goes well beyond any feature or function we could ever build in our platform. It’s the power of the community that we’re developing. And that’s really just one example of the tip of the iceberg of what this community is able to do and will be able to do in the future.

——————————————————————————–

Aleksandr J. Zukin, RBC Capital Markets, Research Division – MD of Software Equity Research & Analyst [44]

——————————————————————————–

That’s super powerful.

And maybe, I don’t know, Todd or Rob, I’m not going to ask you conservatism in your guidance because it appears to be that you’re fairly good there. But I want to ask you maybe a more high-level question, which is you see these COVID trends. You see these sales cycles. You talked about pipelines being great. You talked about engagement levels being great, May being better than April, April being better than March, presumably May being better than April. At what point — I guess at what productivity capacity do you feel like you are operating now from a go-to-market perspective? And talk about if you start trend lining these normalization rate, where do we — when do we get back to a normal productive capacity at the rate — at the current trend line?

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [45]

——————————————————————————–

Yes. There’s a lot baked into that question, Alex. I mean you touched on what we saw in, I would say, middle of March to the very beginning of April, which was this acute moment where people were almost caught in the headlights, if you will, but after that, a real quick reemergence to priorities and us being a very key priority of that.

One of our 3 pillars for the business is sales and marketing efficiency. And so we look at that every quarter, and we want to make sure that we’re both well equipped for the needs — our goals around distribution, but at the same time, not overstepping our opportunity in a way that some companies do. So we’re going to continue to manage that very, very carefully every quarter and calibrate. And we’ve built in a whole host of different scenario analysis that we’ve done to make sure that we continue to thread that needle carefully.

We feel like we’re in a really good position now, not only for the medium term, but really for the longer-term to capitalize on not only winning this business spend management, multi tens of billion-dollar market opportunity, but delivering for customers in a way that they would never want to leave and would only want to add more and more capabilities on our platform.

——————————————————————————–

Todd R. Ford, Coupa Software Incorporated – CFO [46]

——————————————————————————–

And Alex, and from an engagement perspective, and if you look at the hiring we did in Q1, we brought on quite a few quota-carrying sales reps. And that’s really with an eye towards the back half of the year and going into next year to make sure that we are ideally positioned to be resilient and exit this crisis in full-on mode. And the part where we — or I would get a little bit more nervous is if you don’t see these people being able to get up to speed, ulcerated and start to build pipeline.

And then the other interesting dynamic is when deals are pushing, right? We’ve done a lot of analytics around this. Most of them are pushing for weeks and months, not several quarters. So we do believe that when the world comes back to “normal,” we’ll be very well positioned. And you did have, as Rob mentioned, early on, especially in North America, the deer in the headlights, “Okay, I’m triage. I got to get my head around things, and Europe being a little bit better positioned because planning for Brexit, et cetera.”

And we’re seeing that already, right? Europe is coming back online faster as well. And North America is kind of getting through the triage. And you see some glimmers of hope, right? Like things appear to be opening up, but we all know that, that could change on a dime as well. So we’re trying to be balanced, but yet really position ourselves for resilience so that when the market is there, we’ve got the feet on the street. We’ve got the pipeline and that we kind of catch-up from where we left off when things turn.

——————————————————————————–

Operator [47]

——————————————————————————–

Your next question comes from the line of Terry Tillman with SunTrust Robinson Humphrey.

——————————————————————————–

Terrell Frederick Tillman, SunTrust Robinson Humphrey, Inc., Research Division – Research Analyst [48]

——————————————————————————–

Yes. I really appreciate you fitting me in, and congrats from me as well.

I’ll just make it simple and just one question. With the global SIs, they got to figure out how to keep their people busy and working, so they don’t have to cut jobs. And you got to look at what’s discretionary and what’s going to really be a strong ROI. It seems like you all really set up well for even more global SI engagement. So what I would love to hear, Rob, is just are you getting more of a seat at the table with these global SIs? Or is there any kind of KPIs or anything to talk about maybe how amid all this uncertainty, maybe there’s greater engagement. Just would love any perspective on that.

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [49]

——————————————————————————–

Your perspective is spot on. I mean, the level of interest from the systems integrator community, especially at the top firms to wrap services around what we’re offering has been really exceptional. There’s a real uptick that we saw in Q1 around that because the priority of what we’re offering is not only exceptionally high in ROI but requires a mindset shift among so much of the core market from being paper-based and not having the controls and visibility to their spending. So we saw a very nice uptick there, very encouraging uptick there in the first quarter, and we’d anticipate that to continue to build upon. Absolutely.

——————————————————————————–

Operator [50]

——————————————————————————–

And your last question comes from the line of Peter Levine with Evercore.

——————————————————————————–

Peter Marc Levine, Evercore ISI Institutional Equities, Research Division – Analyst [51]

——————————————————————————–

Great. Maybe just for the customers deferring decisions. I mean, obviously, I don’t think that’s a surprise to anyone at this point. But is that just a matter of business confidence or some sort of — you’re just sort of kind of managing budgets? And can you talk a little bit about whether or not that conversation is different if you were discussing procurement, travel expense or even payments? Or is that just pretty similar across the group.

——————————————————————————–

Robert Bernshteyn, Coupa Software Incorporated – Chairman of the Board & CEO [52]

——————————————————————————–

Systematically, when that arose in the times that it did, it was largely because of this acute phase that I described, where folks are figuring out how to get online, how to navigate the health and safety of their employees, how to think through their own — for public companies, their own the kind of metrics and things of that nature. There was simply this acute phase, but early signs of emergence from that acute phase as well as early data that we saw in April suggests that our value proposition is very much at the very top of the list when that reemergence happens. And that’s also seen in the growth of our pipeline at various stages as well as the closures that we saw as soon as that acute phase sort of subsided.

——————————————————————————–

Operator [53]

——————————————————————————–

And at this time, there are no further questions. This concludes the conference for today. We do thank you for joining us, and you may now disconnect

LEAVE A REPLY

Please enter your comment!
Please enter your name here