Coupa Software Incorporated (NASDAQ:COUP) Q3 2018 Earnings Conference Call Transcript

Dec 03, 2018 • 05:00 pm ET


Coupa Software Incorporated (NASDAQ:COUP) Q3 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to the Coupa Software Third Quarter Fiscal Year 2019 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a question-and-answer session. (Operator Instructions) As a reminder, this call is being recorded.

I would now like to introduce your host for today's conference call, Ms. Nicole Noutsios, IR. Ms. Noutsios, you may begin your conference.

Nicole Noutsios

Good afternoon and welcome to Coupa Software's third quarter conference call. Joining me today are Rob Bernshteyn, Coupa's CEO; and Todd Ford, Coupa's CFO.

(Forward-Looking Cautionary Statements)

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 IR website. A replay of this call will also be available, if you prefer to access a replay via phone, you can find that information in the earnings release. Unless otherwise stated, growth comparisons are against the same period of the prior year.

With that, I'll turn the call over to Rob.

Rob Bernshteyn

Hello, everyone, and thank you for joining us. Today, I'm delighted to report strong results for third quarter. At the highest level from our financial results perspective, I will tell you that we finished the quarter with 67.5 million in revenue, representing a trailing 12-month growth rate of 40% and an annual run rate of well over a quarter billion dollars per year. We also delivered our fifth consecutive quarter of positive free cash flows on a trailing 12-month basis. It's important to note that we are fully on track to easily surpass $1 trillion and cumulative spend under management in Q4.

But most importantly from a longer term perspective, we are continuing to make a meaningful impact in the broader enterprise software industry. We are developing the Business Spend Management category of solutions, which we know are of great importance to virtually all companies around the world. We are delivering unprecedented measurable value for each of our 100's of current customers. We are offering a highly innovative, functional and technical platform at significant scale. We are cultivating a culture of colleagues maniacal about customer success, results orientation and a never ending desire to strive for excellence.

With that, I'm excited to share with you our strong results for Q3. So, lets get after it. Starting with our customers, I'm proud to report that more than 100 Coupa customers have gone live this fiscal year, rather Ingersoll Rand went live in the US and Canada, in a rapid deployment focused on increased electronic invoicing, improved spend under management, and the achievement of 100% electronic purchase orders. Zurich Insurance went live with Coupa in the UK, with a special focus on increased PO Matching, electronic invoicing, spend under contract and user experience scores.

Salling Group, Denmark's largest retailer went live with Coupa at 600 sites across Denmark in the first phase of a 1,200 site four country roll-out. Finally,