Coupa Software Incorporated revenue jumped on 49.7% and EBITDA Margin increased on 4.9 pp from -14.2% to -9.3%
03/16/2020 • About Coupa Software Incorporated (
$COUP) • By InTwits
Coupa Software Incorporated reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Coupa Software Incorporated is a fast growth stock: FY2020 revenue growth was 49.7%, 5 year revenue CAGR was 50.3% at FY2020 ROIC -8.2%
- The company operates at negative EBITDA Margin: -9.3%
- Coupa Software Incorporated motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 4.7% while average EBITDA Margin was -17.4% for the sames years
- Coupa Software Incorporated has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 6.0%.
- CAPEX is quite volatile: $12m in FY2020, $8m in FY2019, $4m in FY2018, $4m in FY2017, $4m in FY2016
- The company has unprofitable business model: ROIC is -8.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Coupa Software Incorporated's Revenue jumped on 49.7%. Revenue growth showed small slowdown in FY20Q4 - it was 48.8% YoY. During FY2016-FY2020 Revenue growth bottomed in FY2019 at 39.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.9 pp from -0.50% to 8.4% in 2020. EBITDA Margin grew at 9.2 pp per annum in the last 5 years.
Gross Margin decreased on 3.7 pp from 67.9% to 64.3% in FY2020. During the last 5 years Gross Margin topped in FY2019 at 67.9%. SG&A as a % of Revenue decreased on 3.2 pp from 62.5% to 59.2% in FY2020. SG&A as a % of Revenue declined at -6.6 pp per annum in the last 5 years.
Net Income margin decreased slightly on 2.0 pp from -21.3% to -23.3% in FY2020. During the last 5 years Net Income margin topped in FY2019 at -21.3%.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3.1% in FY2020. The company's CAPEX/Revenue showed almost no change from FY2017 to FY2020. It's average CAPEX/Revenue for the last three years was 2.8%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2018 at 2.4% and was growing since that time.
Return on investment
The company operates at negative ROIC (-8.2%) and ROE (-23.4%). ROIC increased on 2.3 pp from -10.5% to -8.2% in FY2020. ROE decreased on 3.4 pp from -20.1% to -23.4% in FY2020.
Leverage (Debt)
Debt level is -2.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2020. Debt jumped on 349% while cash jumped on 89.8%.
Coupa Software Incorporated has no short term refinancing risk: cash is higher than short term debt (137.2%).
Management team
Robert R Bernshteyn "Rob" is a the company's CEO. Robert R Bernshteyn "Rob" has spent 12 years with the company. Coupa Software Incorporated's CFO Todd R Ford has spent 5 years with the company.
Financial and operational results
FY ended 01/31/2020
Coupa Software Incorporated ($COUP) key annual financial indicatorsmln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
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P&L
|
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Revenue | 83.7 | 133.8 | 186.8 | 260.4 | 389.7 | 49.7% |
Gross Profit | 51.8 | 87.5 | 126.9 | 176.9 | 250.5 | 41.6% |
SG&A | 74.3 | 92.7 | 127.3 | 162.7 | 230.8 | 41.9% |
EBITDA | -42.5 | -30.8 | -37.4 | -36.9 | -36.3 | |
EBIT | -45.3 | -35.4 | -45.0 | | | |
Tax | 0.3 | 0.8 | 1.6 | | | |
Net Income | -46.2 | -37.6 | -43.8 | -55.5 | -90.8 | |
Stock Based Compensation | 10.6 | 9.5 | 29.7 | | | |
Balance Sheet
|
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Cash | 92.3 | 201.7 | 412.9 | 141.3 | 268.0 | 89.8% |
Accounts Receivable | 28.0 | 47.6 | 61.4 | | | |
Accounts Payable | 1.1 | 1.2 | 1.3 | | | |
Short Term Debt | 0.0 | 0.0 | 0.0 | 174.6 | 195.3 | 11.9% |
Long Term Debt | 0.0 | 0.0 | 163.0 | 0.0 | 588.1 | |
Cash flow
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Capex | 3.9 | 4.5 | 4.5 | 7.5 | 12.0 | 59.0% |
Acquisitions | 1.4 | 6.8 | 46.1 | | | |
Ratios
|
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Revenue growth | 64.6% | 59.9% | 39.6% | 39.4% | 49.7% | |
EBITDA growth | 68.2% | -27.4% | 21.2% | -1.3% | -1.7% | |
|
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Gross Margin | 61.9% | 65.4% | 67.9% | 67.9% | 64.3% | -3.7% |
EBITDA Margin | -50.8% | -23.1% | -20.0% | -14.2% | -9.3% | 4.9% |
EBIT Margin | -54.1% | -26.5% | -24.1% | | |
SG&A, % of revenue | 88.7% | 69.3% | 68.2% | 62.5% | 59.2% | -3.2% |
SBC, % of revenue | 12.6% | 7.1% | 15.9% | | |
Net Income Margin | -55.2% | -28.1% | -23.5% | -21.3% | -23.3% | -2.0% |
CAPEX, % of revenue | 4.6% | 3.4% | 2.4% | 2.9% | 3.1% | 0.2% |
|
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ROIC | -23.9% | -6.9% | -7.1% | -10.5% | -8.2% | 2.3% |
ROE | | | -21.1% | -20.1% | -23.4% | -3.4% |
People
|
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Insider ownership | 0.7% | 0.7% | 0.7% | | | |
Employees | | 652 | 833 | | | |
Revenue/Employee, th. $ | | 205 | 224 | | | |
Coupa Software Incorporated ($COUP) key quoterly financial indicators
mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
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P&L
|
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Revenue | 81 | 95 | 102 | 111 | | 44.3% | 54.3% | 50.9% | 48.8% |
EBITDA | -12 | -14 | -7 | -4 | | - | - | - | - |
Net Income | -20 | -20 | -26 | -24 | | - | - | - | - |
Balance Sheet
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Cash | 346 | 614 | 587 | 268 | | -19.4% | 117.7% | 157.9% | 89.8% |
Short Term Debt | 183 | 187 | 191 | 195 | | - | 11.1% | 11.5% | 11.9% |
Long Term Debt | 23 | 568 | 579 | 588 | | -86.2% | - | - | - |
Ratios
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Gross Margin | 66.4% | 63.7% | 63.4% | 64.0% | | -1.4% | -6.0% | -4.5% | -2.6% |
EBITDA Margin | -14.7% | -14.4% | -6.7% | -3.7% | | 3.1% | -0.4% | 4.0% | 9.9% |
Net Income Margin | -25.2% | -21.0% | -25.9% | -21.6% | | 2.3% | 1.5% | -11.6% | 0.5% |
Peers in Application Software
Below you can find Coupa Software Incorporated benchmarking vs. other companies in Application Software industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
---|
VirnetX Holding Corp ($VHC) | - | -0.2% | -95.9% | 34.9% | 355,942.4% |
AudioEye, Inc. ($AEYE) | - | 175.5% | 106.6% | 90.2% | 90.2% |
Cloudera, Inc. ($CLDR) | - | 57.2% | 42.6% | 28.9% | 65.5% |
Integrated Ventures Inc ($INTV) | - | - | - | -8.9% | 62.7% |
Smartsheet Inc. ($SMAR) | - | 64.3% | 66.1% | 59.7% | 52.4% |
|
---|
Median (92 companies) | 12.0% | 14.8% | 15.1% | 19.4% | 14.5% |
---|
Coupa Software Incorporated ($COUP) | - | 59.9% | 39.6% | 39.4% | 49.7% |
Top companies by Gross margin, %
Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
---|
Aware, Inc. ($AWRE) | 90.3% | 94.6% | 92.3% | 89.7% | 92.8% |
Alteryx, Inc. ($AYX) | 81.3% | 83.4% | 91.0% | 90.6% | 91.1% |
Autodesk, Inc. ($ADSK) | 85.2% | 83.2% | 85.2% | 88.9% | 90.1% |
Smith Micro Software, Inc. ($SMSI) | 73.2% | 77.9% | 83.5% | 90.9% | 89.9% |
Cadence Design Systems, Inc. ($CDNS) | 85.9% | 87.8% | 87.9% | 88.6% | 88.6% |
|
---|
Median (89 companies) | 64.2% | 64.4% | 65.3% | 68.4% | 70.6% |
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Coupa Software Incorporated ($COUP) | 61.9% | 65.4% | 67.9% | 67.9% | 64.3% |
Top companies by EBITDA margin, %
Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
---|
VirnetX Holding Corp ($VHC) | -1,837.2% | -1,118.0% | -40,379.4% | -23,127.1% | 52.2% |
j2 Global, Inc. ($JCOM) | 41.7% | 36.5% | 35.7% | 38.6% | 40.5% |
Intelligent Systems Corporation ($INS) | -5.4% | -12.8% | 33.6% | 43.6% | 40.4% |
Adobe Inc. ($ADBE) | 31.2% | 34.2% | 35.3% | 35.8% | 39.7% |
SS&C Technologies Holdings, Inc. ($SSNC) | 34.9% | 37.9% | 27.7% | 38.2% | 38.3% |
|
---|
Median (89 companies) | -4.7% | -3.3% | -3.3% | 4.5% | 7.7% |
---|
Coupa Software Incorporated ($COUP) | -50.8% | -23.1% | -20.0% | -14.2% | -9.3% |
Top companies by CAPEX/Revenue, %
Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
---|
MicroStrategy Incorporated ($MSTR) | 0.5% | 0.8% | 1.4% | 2.1% | 234.8% |
Integrated Ventures Inc ($INTV) | - | - | 199.9% | 15.2% | 27.2% |
Intelligent Systems Corporation ($INS) | 3.8% | 9.7% | 4.3% | 4.9% | 19.2% |
LivePerson, Inc. ($LPSN) | 5.5% | 7.9% | 8.8% | 16.3% | 11.4% |
PROS Holdings, Inc. ($PRO) | 4.7% | 0.8% | 0.7% | 2.1% | 11.3% |
|
---|
Median (87 companies) | 2.9% | 2.3% | 2.4% | 3.0% | 2.5% |
---|
Coupa Software Incorporated ($COUP) | 4.6% | 3.4% | 2.4% | 2.9% | 3.1% |
Top companies by ROIC, %
Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
---|
VirnetX Holding Corp ($VHC) | -210.9% | -256.8% | -416.3% | -247.2% | 137.3% |
Manhattan Associates, Inc. ($MANH) | 99.3% | 102.5% | 80.9% | 71.7% | 53.4% |
Citrix Systems, Inc. ($CTXS) | 16.1% | 16.7% | 25.2% | 29.8% | 33.5% |
Sonic Foundry, Inc. ($SOFO) | -18.1% | -50.6% | -786.4% | - | 31.3% |
Paycom Software, Inc. ($PAYC) | 75.4% | 51.1% | 47.5% | 47.5% | 28.7% |
|
---|
Median (92 companies) | -9.2% | -11.8% | -10.6% | -4.2% | -1.8% |
---|
Coupa Software Incorporated ($COUP) | -23.9% | -6.9% | -7.1% | -10.5% | -8.2% |
Top companies by Net Debt / EBITDA
Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
---|
Dropbox, Inc. ($DBX) | - | -3.8x | - | 2.4x | 1,341.0x |
Avaya Holdings Corp. ($AVYA) | - | - | 7.4x | - | 77.9x |
Alteryx, Inc. ($AYX) | - | - | 2.5x | 6.1x | 32.2x |
Five9, Inc. ($FIVN) | -6.7x | -8.6x | 7.3x | 5.3x | 17.6x |
Synchronoss Technologies, Inc. ($SNCR) | - | - | - | - | 11.6x |
|
---|
Median (54 companies) | -0.9x | -0.8x | -0.7x | 0.4x | 0.2x |
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