2017 analyst day presentation

1. Financial Analyst Day
2017

2. Agenda
9:00 ‐ 9:45 Rob Bernshteyn, CEO
9:45 – 10:00 Gabe Perez, General Manager, Power Applications
10:00 – 10:15 Chandar Pattabhiram, CMO
10:15 – 10:30 Steve Winter, CRO
10:30 – 10:50 Break
10:50 – 11:05 Roger Goulart, Senior VP Business Development & Alliances
11:05 – 11:25 Raja Hammoud, Senior VP Products and
Donna Wilczek, VP Product Strategy & Innovation
11:25 – 11:40 Mark Riggs, CCO
11:40 – 12:05 Todd Ford, CFO
12:05 – 1:00 Q&A and Lunch

3. This presentation and the accompanying oral presentations include forward-looking statements. All statements other than statements of
historical facts, including statements regarding our future results of operations and financial position, customer lifetime value, strategy
and plans, market size and opportunity, competitive position, industry environment, potential growth opportunities, business model,
benefits from acquisitions, products and product capabilities and our expectations for future operations, are forward-looking statements.
These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Risk
Factors” and elsewhere in our most recently filed Form 10-K or 10-Q, which is available at www.investors.coupa.com and on the SEC’s
website at www.sec.gov. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed
in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the
forward-looking statements.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the
future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or
occur. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness
of the forward-looking statements. Forward-looking statements represent our management’s beliefs and assumptions only as of the date
of this presentation. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this
presentation to conform these statements to actual results or to changes in our expectations.
In addition to US GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP measures are in
addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with US GAAP. A reconciliation
of historical non-GAAP measures to historical GAAP measures is contained in the Appendix. Coupa is not able at this time to provide a
GAAP to non-GAAP reconciliation for certain business model measures because of the difficulty of estimating certain items excluded
from these non-GAAP measures that cannot be reasonably predicted, such as charges related to stock-based compensation expense.
The effect of these excluded items may be significant.
The information contained herein is provided for informational purposes only and should not be construed as a commitment to deliver
any product, functionality or other feature. Any information or content provided herein is proprietary to Coupa and may not be replicated
or disclosed without Coupa’s express written permission.
Legal Disclosure

4. ©2017 Coupa Software, Inc. – Confidential – All Rights Reserved
Rob Bernshteyn
Chief Executive Officer

6. What Salesforce is to Sales, Coupa is to Spend
SALES
Marketing
Services
Support
Web
Platform
SPEND
Procurement
Invoice
Expenses
Sourcing
Inventory
Platform

7. Coupa is the Leader Across Industries and Segments

8. Industry Analysts View Coupa as the Leader
2
3
4
5
6
7
8
9
10
4.5 5.5 6.5 7.5 8.5 9.5
PROFICIENCY
ADAPTABILITY
CERTIFY
EXPENSIFY
EXPENSE WATCH
INTERPLX
COUPA
DATABASICS
INFOR
APPTRICITY
SUTISOFT CONCUR
CHROME RIVER
2015
LEADER WITH THE
HIGHEST PROFICIENCY
TRAVEL AND EXPENSE
MANAGEMENT NAVIGATOR
2016
LEADER WITH HIGHEST
ABILITY TO EXECUTE
MAGIC QUADRANT FOR
PROCURE TO PAY SUITES
2017
HIGHEST RATING IN CURRENT
OFFERING & STRATEGY
THE FORRESTER WAVE™:
EPROCUREMENT

9. Coupa is Both Taking Market Share and Developing the Market
TOTAL
SUPPLY CHAIN
MANAGEMENT (1)
EXPENSE
MANAGEMENT (2)
PROCUREMENT (1)
2017 ANALYST ESTIMATED MARKET
(1) International Data Corporation, Worldwide Semiannual Software Tracker, May 2017
(2) Technavio market research sourced from ISI Securities EMIS, November 2016
(3) International Data Corporation, Worldwide Treasury and Risk Management Applications Forecast, 2017–2021
TREASURY & RISK
MANAGEMENT (3)
$4.7B
$2.9B
$9.4B
$19.0B
$2.0B

10. Path to $1B: Seizing the Opportunity to Own a Big 4 Space
10
SPEND
MANAGEMENT
ERP
CRM
HCM
1990s
1980s
2000s

11. Measurable Value as a Service
Note: Savings
numbers are an
estimate based on
industry benchmarks

12. We are Playing to Win
Innovators and Early Adopters Early Majority Late Majority Laggards
C
H
A
S
M
2010 to
2015
2016 to
2020 2026+
2021 to
2025

13. ACCELERATED
PRESCRIPTIVE
USER-CENTRIC
OPEN
COMPREHENSIVE

14. Comprehensive
COMMON
ANALYTICS
ENGINE
COMMON
BUSINESS
LOGIC
LAYER
COMMON
STATE
MODEL
COMMON
DATA
STRUCTURE
COMMON
USER
INTERFACE
COMMON
PERMISSION
MODEL

15. WIDESPREAD ADOPTION
Open

16. Best UI is No UI
User-Centric

17. Prescriptive
Community
Intelligence

21. Prescriptive
Risk Notification
High Risk Supplier
Identified.
Slide to view
!

22. Accelerated
NOTE: Cumulative spend under management represents the aggregate amount of money that has been transacted through our core Coupa platform for all of our customers collectively since we
launched our core platform. We calculate this metric by aggregating the actual transaction data, such as invoices, purchase orders and expenses, from customers on our core Coupa platform. Cumulative
spend under management does not include spending data associated with modules from acquired companies, including Spend360, Trade Extensions, and Deep Relevance.
$570B
F3Q16 F4Q16 F1Q17 F2Q17 F3Q17 F4Q17 F1Q18 F2Q18 F3Q18
CUMULATIVE SPEND UNDER MANAGEMENT ($, B)

23. ACCELERATED
PRESCRIPTIVE
USER-CENTRIC
OPEN
COMPREHENSIVE

24. CORE VALUES
FOCUS ON
RESULTS
ENSURE
CUSTOMER
SUCCESS
STRIVE FOR
EXCELLENCE

25. Path to $1B
Winning with Execution
MARKETING
SALES
PRODUCTS
ALLIANCES
CUSTOMER
SUCCESS
FINANCE

26. SALES
PRODUCTS
ALLIANCES
CUSTOMER
SUCCESS
FINANCE
Winning with
Marketing MARKETING

27. Winning with Marketing
PATH TO
$1B
Ideal Customer Profile
Sales Enablement
Account Based Marketing
Demand Gen
Success Stories Brand

28. PRODUCTS
ALLIANCES
CUSTOMER
SUCCESS
FINANCE
MARKETING
SALES
Winning with
Sales

29. Winning with Sales
Adoption &
Expansion
Market
Penetration
Global
Expansion
Differentiated Offering
Segment Approach
Distinct Markets
More Users
Partners & References
More Solutions

30. PRODUCTS
CUSTOMER
SUCCESS
FINANCE
MARKETING
SALES
Winning with
Alliances
ALLIANCES

31. Winning with Alliances
Drives
Revenue Growth
Scales
Delivery Efficiency
Creates
Market Disruption
Systems Integrators
Coupa Advantage
CoupaLink
Partner Led Deployments
Boutique Consultancies Implementer Certifications

32. CUSTOMER
SUCCESS
FINANCE
MARKETING
SALES
ALLIANCES
PRODUCTS
Winning with
Products

33. Winning Product Strategy
Steal the Trophy
Community Intelligence
Forward Charge
Transactional Core
Raid
Power User Applications
Intelligent Spend Experiences Supplier & Commodity Insights
Global Compliance
Advanced Scenarios
Optimized Source to Contract Operational Insights

34. Our Customers are Investing in the Coupa Platform
<50%
Of New Sub
Rev from Core
Procurement
~75%
Of New Sub
Rev from Core
Procurement
FY 2015 FY 2016 FY 2017 FY 2018
Q1 Q2 Q3

35. Winning with One Unified Cloud Platform for Business Spend
3MM+ SUPPLIERS
600+ CUSTOMERS
$20Bn+
OF SAVINGS
TO DATE
$570Bn+
SPEND UNDER
MANAGEMENT
100+
COUNTRIES
20+
LANGUAGES

36. Another Winning Acquisition: Open & Intelligent Cross Catalog Search
in 60 Countries
in 22 Languages
Global
~15 developers
focused on search
and catalog
Domain Expertise
Basel,
Switzerland
Headquarters

37. FINANCE
MARKETING
SALES
ALLIANCES
PRODUCTS
CUSTOMER
SUCCESS
Winning with
Customer
Success

38. Winning with Value as a Service - Delivered
Success Objectives
Solution Definition
Value Targets
Success Metrics Workshop
Implementation
Adoption
Increasing Value
Measurable Success Criteria
Accelerated Deployment
Segment Focus
Business Cases
Value Driven
Value Roadmaps

39. MARKETING
SALES
ALLIANCES
PRODUCTS
CUSTOMER
SUCCESS
FINANCE
Winning with Our
Financial Model

40. Winning Financial Model
Recurring Rev > Lifetime Cash Used Cash Flow Positive (TTM)
LTV/CAC > 6
30%+ Revenue Growth S&M Efficiency Operating Leverage

41. Cultivate a Winning Core Values Driven Culture
Acquire Key Assets to Broaden Value Proposition
Expand Global Brand Awareness and Demand Generation
Launch Innovations to Drive Greater Share of Wallet
Develop and Expand Partner Ecosystem
Drive Enterprise, Mid-Market, Customer Expansion, and Global Sales Capability

42. ©2017 Coupa Software, Inc. – Confidential – All Rights Reserved
Path to $1B
Winning with an Intelligent Platform
Gabe Perez
General Manager, Power Applications

43. ©2017 Coupa Software, Inc. – Confidential – All Rights Reserved
Path to $1B
Winning with Marketing
Chandar Pattabhiram
Chief Marketing Officer

44. Our Expanding Market Opportunity
Enterprise Accounts
~22,750
Target
Customers (1)
All Solutions
~$20B
Opportunity
Current
Customers
Current Revenue “Expand” Opportunity
Mid-Market Accounts
Current Revenue
All Solutions
Current
Customers
~80,500
Target
Customers (1)
~$17B
Opportunity
“Expand” Opportunity
~$37B Market Opportunity
*Target Customer Count Source: Capital IQ 2017

45. • 2013
• Pursued sales cycle opportunity
for Procure-to-Pay (P2P)
• Safe choice at that time: “do
nothing”
• 2017:
• Signed for Coupa Platform for
P2P
• Initial go-live for Coupa P2P

46. PATH TO
$1B
Winning Marketing Strategy and Tactics

47. Winning Marketing Strategy and Tactics
PATH TO
$1B

48. Ideal Customer Profile (ICP)
$1B+
$250M-$1B
$100-$250M
< $100M
Ideal Customer Profile (ICP)
• Identify target-accounts with highest propensity
to buy
• Identify key “micro-verticals” within verticals
• Implement Account-based Marketing (ABM)
Acquisition
Marketing
1

49. ICP: Identifying Accounts with Highest Propensity to Buy
Acquisition
Marketing
1

50. ICP: Identifying Key Micro-Verticals
Financial
Services Healthcare
Insurance &
Risk
Management
Banks
Bio
Tech
Hospitals Medical
Devices
Pharma
Investment
Banking
Enterprise Segment “A” Accounts
3,045
Acquisition
Marketing
1

51. ICP: Transforming Our Demand Generation Approach
Broad-
based
Inbound
Account-based Marketing
(ABM)
Acquisition
Marketing
1

52. ABM Approach – Coloring the Skies “Coupa Blue”
Procurement
Finance IT
Website Social Media
Email Nurture
Direct Mail
Paid Ads
Acquisition
Marketing
1
Events

53. Simplified, Value-based Sales Messaging
Acquisition
Marketing
1

54. Winning Marketing Strategy and Tactics
PATH TO
$1B

55. “Land and Expand” with Targeted Cross-sell Campaigns
3/2015
Fleet Wholesale Supply Co Inc.
Annual revenue: $250M
Coupa P2P Customer
4/2017 9/2017
Target P2P Customers with Expenses focused
Marketing “Make the Switch Campaign”
RESULTS:
Expenses Win
+ User Add-on
Adoption &
Expansion
2

56. Winning Marketing Strategy and Tactics
PATH TO
$1B

57. Powerful Value Stories

58. Advocacy: Investing in Voice-of-Customer Initiatives
Advocacy
3
Source: TrustRadius, March ‘17

59. Building Brand Awareness with CFOs
Advocacy
3

60. Building Brand Awareness with CPOs
Ad placed alongside article
featuring our customer
Education Corporation
of America.
Advocacy
3

61. Winning Marketing Strategy and Tactics
PATH TO
$1B

62. ©2017 Coupa Software, Inc. – Confidential – All Rights Reserved
Path to $1B
Winning with Sales
Steve Winter
Chief Revenue Officer

63. Comprehensive Cloud Platform for Business Spend
3MM+ SUPPLIERS
600+ CUSTOMERS
1.5MM+ USERS
$20Bn+
OF SAVINGS
TO DATE
$570Bn+
SPEND UNDER
MANAGEMENT
100+
COUNTRIES
20+
LANGUAGES

64. Our Comprehensive Platform is a Strategic Extension to Any ERP
Service
Social
Customer
Self Service
Marketing
Benefits
Payroll
Talent
Employee
Self Service
Performance
Supplier
Perf Mgmt
Inventory
Services
Procurement
Fraud
Mgmt
Contracts
Sourcing
Compliance
Risk
Mgmt
Contract
Authoring
Storefront
Buyer
Portal
ERP
Sales
HRMS
Suppliers
CRM HCM
INVOICING PROCUREMENT EXPENSES
ERP
ERP
ERP ERP

65. Success Across ERP’s
SAP NetSuite &
Great Plains
Other
Oracle

66. Competing To Win
Sample New Business Wins over SAP
Sample New Business Wins over Oracle
No “other” competitor more than 6%.
Closed Won Business Only between 1/1/16 and 12/5/17.
52%
20%
28%
SAP Oracle Other
SAP
Oracle
Other

67. Path to $1 Billion
Adoption &
Expansion
Market
Penetration
Global
Expansion

68. Striving for Excellence
PATH TO
$1B
Transformational
Demand
Generation
Focused
Partner
Ecosystem
Customer
Success
Maintain
Capacity
Model to
Scale
Provide
Enablement
and Tools
Market
Penetration
1

69. Significant Mid-Market Opportunity
Approach
• Market Segmentation Ideal
Customer Profile
• Inbound, Digital driven,
Qualified
• Outbound, Account Based
Marketing
• Pre-Configured solutions for
P2P, Expenses, Invoicing
• Partnerships
Market
Penetration
1
(1) Source: Capital IQ
Mid-Market Accounts
Current Revenue
All Solutions
Current
Customers
~80,500
Target
Customers (1)
~$17B
Opportunity
“Expand” Opportunity

70. 70
“This new initiative with AWS seems to be a step forward
in Coupa’s strategy to conquer this market and
remain one of the undisputed leaders for
the procurement technology sector.”
Market
Penetration
1
Mid-Market Packages now on AWS Marketplace
- Xavier Olivera, lead P2P analyst at Spend Matters

71. Broad Success Across Verticals
Market
Penetration
1
Retail High
Technology
Public
Sector
Oil & Gas Manufacturing
& Mining
Healthcare &
Life Science
Food &
Beverage
Financial
Services
Other
Federal

72. Global
Expansion
Market
Penetration
Path to $1 Billion
Adoption &
Expansion

73. POWER APPS
Customer Adoption and Cross-Sell
USER EXPANSION
CORE APPS
OPEN BUSINESS NETWORK
NEW APPLICATIONS
Adoption
&
Expansion
2

74. Adoption &
Expansion
Market
Penetration
Global
Expansion
Path to $1 Billion

75. Scaling For Growth
Global
Expansion
3
Established
Emerging

76. Winning with Coupa
Comprehensive, unified platform that maximizes
ever dollar of business spend.
C
Open platform & business model that is
transparent and authentic.
O
Industry leader in adoption, with a user centric
strategy of “No UI is the best UI”.
U
Prescriptive insights delivered through our big
data community intelligence.
P
Providing the most accelerated time to value in
the market with a measurable ROI.
A

77. Winning Sales Strategy
Adoption &
Expansion
Market
Penetration
Global
Expansion