Strategy and Execution - JULY 15, 2021 - INVESTOR OVERVIEW | Coupa Software
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Strategy and
Execution
J U LY 1 5, 2 0 2 1
© 2021 Coupa Software, Inc. – All Rights Reserved
L EG A L D I S C LO S U R E
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, product roadmap, future 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: our limited operating history, which makes it difficult to
predict future operating results; the uncertain impact of the global COVID-19 pandemic; if we fail to manage our recent rapid growth effectively, we may be unable
to execute our business plan, maintain high levels of service, or adequately address competitive challenges; risks related to past and future business acquisitions,
including their integration with our existing business model, operations and culture; if we are unable to attract new customers, the growth of our revenues will be
adversely affected; because our platform is sold to large enterprises with complex operating environments, we encounter long and unpredictable sales cycles; risks
and liabilities related to breach of our security measures or unauthorized access to customer data; the markets in which we participate are intensely competitive; our
business depends substantially on customers renewing their subscriptions and purchasing additional subscriptions; if we fail to develop widespread brand awareness
cost-effectively, our business may suffer; and the impact of foreign currency exchange rates and global economic conditions. These and other risks and uncertainties
are described in “Risk Factors” and elsewhere in our most recently filed Form 10-K or 10-Q, which is available at https://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 and liquidity 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.
© 2021 Coupa Software, Inc. – All Rights Reserved 2
IN THIS DOCUMENT
WHO Creating one of the world’s best enterprise cloud software
companies – one of the four systems of record
WHERE Winning in a massive Total Addressable Market
HOW Harmonized go-to-market approach that is among
the most effective in the software industry
© 2021 Coupa Software, Inc. – All Rights Reserved 3
Every dollar a company spends is an investment in its business.
Yet while every company has a core system of record to manage
employees, customers, and financials, many do not have a system of
WHO record to manage and optimize their spend.
Coupa is the leader in Business Spend Management (BSM), which
has quickly emerged as the fourth major application category (along
with ERP, CRM, and HCM) in enterprise software and one of the four
systems of record that is mandatory to effectively run a business.
BSM CRM
Source to Pay Marketing
Travel & Expense Services
Supply Chain Design & Planning Support
Treasury & Payments Web
Risk & Compliance Platform
Platform
© 2021 Coupa Software, Inc. – All Rights Reserved 4
WHO
In the early enterprise software days, Enterprise Resource Planning (ERP) was
the first example of integrating related business processes in a single suite
and was seen as a big step forward in creating a single system of record for
critical functions. Shortly thereafter, Customer Relationship Management
(CRM) emerged to systematize front-office work and address the gaps in ERP.
Subsequently, Human Capital Management (HCM) emerged to consolidate
human resources point solutions for a single source of employee record.
More recently, Business Spend Management (BSM) has filled the final gap that
no other system can effectively address—a primary system of record to manage
suppliers and spend.
ERP CRM HCM BUSINESS SPEND MANAGEMENT
2000s
Coupa has clearly established itself as the leader in BSM. We are a cloud-based, 1990s
comprehensive suite of solutions built on top of a scalable platform that helps 1980s
companies gain full visibility and control over their business spend.
Our distinct open approach creates real value for customers. How? We engage
with them not as vendors but as trusted partners and offer them access to a rich
partner ecosystem of integrated solutions that augment our BSM capabilities.
Finally, our platform uniquely leverages AI to learn from the collective spend
patterns of our BSM community and to prescribe actionable insights to
every customer. As a result, our BSM community is empowered to spend
smarter together.
© 2021 Coupa Software, Inc. – All Rights Reserved 5
WHO
Today, after more than a decade of hard work, driven by our three core values of ensuring customer success, focusing on results,
and striving for excellence, we are well on our way to being one of the world’s best enterprise software companies. We have a thriving
community of more than 2,000 customers using our software in more than 125 countries that is supported by more than 5,000 trained
consultants. Our platform has processed over $2.5 trillion in cumulative business spend with over 7 million suppliers.
Supply Chain
Design & Planning
Inventory Strategic
Management Sourcing
2,000+ $2.5T+ 7M+ PROCURE INVOICE
Customers Spend Under Suppliers Suppliers
& Risk
PAY EXPENSE Contract
Management
Management
Treasury Contingent
Management Workforce
125+ 100+ 5,000+
Countries Patents – Trained
Issued and Pending Consultants
© 2021 Coupa Software, Inc. – All Rights Reserved 6
COMPREHENSIVE OPEN USER-CENTRIC PRESCRIPTIVE A C C E L E R AT E D
We take a comprehensive We believe in being open, Coupa makes it easy for every We’re smarter together, which Coupa’s unified cloud platform
approach to spend always. We build trust through user in your organization to is why we help our customers makes it faster to deploy,
management with a unified transparency, support genuine get things done fast. From be more effective in managing accelerating the time to
platform that allows you to partnerships, and welcome capturing expenses digitally to their spend by offering pre- deliver value for its customers.
see all your spend in one new ideas. With a focus on flipping invoices via email, our scriptive recommendations, With a typical mid-market
place. No matter what our strengthening relationships customers can often be up and from savings opportunities to and enterprise time to go-
customers need, we have with suppliers to integrating running on the platform within supplier insights. We leverage live of four and eight months,
a solution for them. with leading technologies, we minutes. That’s why we have collective learning across respectively, we help our
sit as one extraction layer on the highest adoption rates the entire Coupa platform customers get to work
top of any and all ERPs. in the industry. to increase intelligence optimizing their spend with
for everyone. speedy transactions and quick
decisions, for greater agility.
© 2021 Coupa Software, Inc. – All Rights Reserved 7
WHERE
We are operating and winning in a massive
market. We offer a comprehensive cloud-based
platform to manage all aspects of business spend,
WE ARE WINNING a challenge faced by companies of all sizes and
A HUGE TAM industries worldwide.
© 2021 Coupa Software, Inc. – All Rights Reserved 8
WHERE
Geoffrey Moore’s Technology Adoption Lifecycle model illustrates the journey of software products across different stages of their lifecycle.
Coupa’s journey over the last decade has evolved from a procurement application for early adopters to a leading BSM platform that has
“crossed the chasm” and is now being rapidly adopted by the “mainstream majority” across every industry. We have transformed from an
innovative point solution that was attractive to early adopters to a market-leading safe choice for companies of all sizes, including the most
recognized global brands. Our large, untapped TAM provides us additional opportunity to further penetrate the mainstream majority and to
cement our leadership position.
© 2021 Coupa Software, Inc. – All Rights Reserved 9
WHERE
Our estimated $94 billion TAM is reflective of our continued focus on rapid innovation, coupled with our strategic and
synergistic approach to acquisitions. We are still in the early stages of penetrating and owning the Business Spend
Management market.
Our TAM is based on a build-up analysis of 100,000+
the revenue opportunity for each customer Target
Customers(1)
across both the mid-market and enterprise
segments. Our analysis is calculated based on:
~$94 Billion
• Current customer subscription amounts,
plus the additional subscription amounts we Opportunity
would generate if each customer purchased
all capabilities in our BSM platform;
• Multiplied by the potential number of
customers in our target market as Subscription Revenue “Expand” Opportunity
estimated by Capital IQ. 2,000+
Current ~$470M ~$2,330M
Customers
All Solutions
(1) Source: Capital IQ
Figures and analysis performed as of fiscal year ending January 31, 2021
© 2021 Coupa Software, Inc. – All Rights Reserved 10HOW
Marketing
WE ARE WINNING
Winning
To win, we’ve operationalized a tightly coupled Together
go-to-market engine that helps target the right
buyers, create awareness and generate strong
interest, convert these prospects into BSM Sales Alliances
customers, and ensure their long-term success
by delivering measurable value.
© 2021 Coupa Software, Inc. – All Rights Reserved 11Marketing
HOW WE ARE WINNING
Every business is like a lemonade stand
FPO
Awareness
We are continuously focused on building awareness for Coupa within this
large addressable market. Given our industry leadership, our brand-building
approach has evolved to incorporate high-impact advertising and thought
leadership opportunities that reach mainstream audiences. Our tactics
include awards and accolades, earned media, broadcast and out-of-home
advertising, and sports affiliations, to name a few.
We are running high-impact TV spots and out-of-home billboards across broadcast and
outdoor channels such as the 2020 Masters Tournament, 2020 NFL Playoffs, and in major
cities around the world. Visit coupa.com/lemonade to see our latest commercial.
© 2021 Coupa Software, Inc. – All Rights Reserved 12Marketing
BUILDING AWARENESS
Examples of building awareness through advertising, affiliation, and affirmation
from reputable organizations.
BSI* Q2 CY21: All Industries
Increasing
110
105
100
95
90
85
80
CY18 CY19 CY20 CY21
VS Last Quarter
Introduced in 2019,(BSI
the Q1 4.3%) Index (BSI) is an economic growth
2021:Spend
Business
indicator based on analyzing hundreds of billions of dollars in aggregated
VSanonymized
and Last Year (BSI Q1 2021:
business -15%)
spend: spendindex.com
Forecast Range: Upside Likely
*BSI data is not necessarily indicative of the trends we’re seeing in Coupa’s business.
© 2021 Coupa Software, Inc. – All Rights Reserved 13Marketing
HOW WE ARE WINNING
Acquisition
We have established a “double funnel” pipeline generation approach that combines both volume-based demand generation and
targeted Account-Based Marketing (ABM) programs. The two pipeline strategies work together to engage our target audiences –
in partnership with sales – within our Ideal Customer Profile (ICP). Institutionalizing this double funnel approach strengthens our ability
to create organic demand for Coupa, as well as to deliver a set of high-touch, personalized, one-to-one and one-to-few programs
that result in increased win rates and increased average selling prices.
In addition, we accelerate deals through the funnel by enabling our sales team with industry-based messaging that contextually speaks
to every buyer on their unique challenges and how Coupa can solve them.
DOUBLE-FUNNEL APPROACH INDUSTRY MESSAGING
Volume-Based Demand Generation Account-Based Marketing (ABM)
Leads Target Accounts
Search Engine Rich Dynamic
Optimization Microsite Experience
Engaged Leads Engaged Accounts
Content Syndication Personalized Video
Webinars Field Marketing
ADR-Qualified Lead
Trade Shows Virtual Events
Opportunity
Closed-Won
© 2021 Coupa Software, Inc. – All Rights Reserved 14Marketing
HOW WE ARE WINNING
Advocacy
Because of the value that our customers realize with Coupa’s BSM platform, our “Spendsetter” Community is vibrant and flourishing with successful
customers from companies such as Amazon, Barclays, BMW, P&G, UPS, Walmart, and many more. We have more than a thousand customers
who participate in regular advocate activities. In addition, we have a strategic set of executive leaders from our BSM Community who make up
our Customer Executive Board, each of whom evangelizes and supports expansion of the industry as a whole. Our Spendsetters interact
with our prospects, sharing their Coupa success stories and lessons learned to guide our prospects and new customers.
EPISODE 02 EPISODE 03 EPISODE 04
“WE REALLY DO “COST IS NOT A “APPETITE FOR DATA”
MATTER” DIFFERENTIATOR” BANK OF MONTREAL
STAPLES CNA INSURANCE (BMO)
Visit coupa.com/spendsetters for more customer stories.
EPISODE 05 EPISODE 06 EPISODE 07
“MAKING ESSENTIAL “JOHN LEWIS “GETTING ALIGNMENT”
GOODS IN A PANDEMIC” PARTNERSHIP” AMERICAN RED CROSS
PROCTER & GAMBLE JOHN LEWIS
© 2021 Coupa Software, Inc. – All Rights Reserved 15Sales
GROWTH DRIVERS
Product
CO-SELLING
TRANSACTIONAL
CORE Alliances
REFERRALS GLOBAL
AWARENESS
SUITE
SYNERGY
Leadership COMMUNITY.AI
Partnerships 5,000+TRAINED ADVOCACY
Market FEDERAL
Penetration
ENTERPRISE
MID-MARKET
POWER APPS
Install Base
EMEA JAPAN
Geographic
SUPPLIER
PAY DIVERSITY
Expansion
SUPPLY
CHAIN
STRATEGIC SOURCING
SUPPLIER
RISK NORTH
AMERICAExpansion APAC
LATAM
© 2021 Coupa Software, Inc. – All Rights Reserved 16Alliances
ALLIANCES
To deliver successful customer projects and amplify the
capabilities of our sales and services teams, we have continued
to strengthen and expand our relationships with key partners. Trained Partner Consultants
6,000
5,000
Through this expansion of the partner group, we never lose
4,000
focus on ensuring that we work with the right partners for 3,000
each prospective customer. This includes partner co-selling 2,000
opportunities that build on partner relationships with CEOs, 1,000
CFOs, CPOs, CSCO, and CIOs to accelerate deal close. 0
CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20
With over 80% of our customer implementations led by
P
partners, training is of the utmost importance. However, we
A
R
E
don’t just train them, we are there at every step of the way to
T
S
N
I
R
build technical expertise around our platform. As the partner
E
P
R
R
builds more competence, we shift more roles to them, but
S
E
T
A
N
Coupa always remains present to ensure customer success.
N
E
D
We currently have over 5,000 trained consultants.
A
L
T
L
E
IA
K
R
N
A
C
M
E
-
D
S
I
M
© 2021 Coupa Software, Inc. – All Rights Reserved 17Alliances
OWNING THE BSM APP MARKETPLACE
In August, we expect to launch the Coupa App Marketplace.
As the BSM category has matured, Coupa’s customers are
increasingly using our platform as a foundational part of
their tech stack, and as the single source of truth for BSM.
Our BSM app marketplace will create a one-stop shop for
companies to discover and plug in solutions from Coupa’s
open ecosystem to extend the value of their BSM platform.
The Coupa App Marketplace will deliver partner
applications across BSM from Supply Chain Insights to
Travel and Expense. As the clear winner in this category,
Coupa is the natural steward of such an ecosystem as we
see a “winner take most” effect that naturally limits the
number of thriving ecosystems that are possible.
We have the gravitational pull and a first mover advantage
*Currently in development
that we’re already executing on, and no competitor has
the Community data and comprehensive BSM platform
to make this possible. Thus, we believe we will continue
to capture a significant and growing market share.
© 2021 Coupa Software, Inc. – All Rights Reserved 18© 2021 Coupa Software, Inc. – All Rights Reserved
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