CLOUD PLATFORM FOR BUSINESS SPEND · represent our management’s beliefs and assumptions only as of the date of this presentation. We undertake no obligation to update publicly any

©2017 Coupa Software, Inc. – Confidential – All Rights Reserved 1 ©2017 Coupa Software, Inc. – Confidential – All Rights Reserved

CLOUD PLATFORM FOR BUSINESS SPEND

September 6, 2017

©2017 Coupa Software, Inc. – Confidential – All Rights Reserved 2

SAFE HARBOR STATEMENT

This presentation and the accompanying oral presentation include forward-looking statements. We intend for such forward‐looking statements to be covered by the safe harbor provisions for forward‐looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. 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. Forward‐looking statements can be identified by terms such as “anticipate”, “believe”, “estimates”, “targets”, “projects”, “could”, “ expect”, “seeks”, “intend”, “may,” “plan”, “predict”, “potential”, “prospects”, “should”, “will”, “would” or similar expressions and the negatives of those terms, although not all forward‐looking statements contain these identifying words. We have based these forward-looking statements on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, strategy, short- and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Risk Factors” 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. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. 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. You should not rely upon forward-looking statements as predictions of future events. 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 U.S. 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 U.S. 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.


ROB BERNSHTEYN CHIEF EXECUTIVE OFFICER

3


WHAT SALESFORCE IS TO SALES, COUPA IS TO SPEND

SALES Marketing

Services

Support

Web

Platform

SPEND Procurement

Invoice

Expenses

Sourcing

Inventory

Platform


COUPA PROVIDES VISIBILITY TO ALL YOUR BUSINESS SPEND


BREADTH OF CUSTOMERS

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjNyfPtxOXOAhVMVhoKHSoGB3MQjRwIBw&url=http://brandingsource.blogspot.com/2011/02/new-logo-leukemia-lymphoma-society.html&bvm=bv.131286987,d.ZGg&psig=AFQjCNGl0suLs6Wwf4quIk_UTvngiWpnAw&ust=1472522733159669


UNIFIED PLATFORM ELIMINATES NEED FOR FRAGMENTED SYSTEMS

h SOURCING SUPPLIER

CATALOGS PROCUREMENT INVENTORY SUPPLIER

MANAGEMENT CONTRACTS

EXPENSE MANAGEMENT

INVOICING

ANALYTICS

LEGACY SILOED APPROACH

INVENTORY CONTRACTS SOURCING ANALYTICS

EXPENSE MANAGEMENT

INVOICING

SUPPLIER MANAGEMENT

STOREFRONT

UNIFIED PLATFORM

PROCUREMENT


COUPA INVESTMENT HIGHLIGHTS

LARGE ADDRESSABLE MARKET

ATTRACTIVE FINANCIAL MODEL

DISRUPTIVE CLOUD PLATFORM

RAPID PLATFORM ADOPTION

Measurable Business Value

Unified Platform

Adoption by All

$16.8Bn Market Opportunity

$500Bn+ Cumulative Spend Under Management

1.5MM+ Licensed Users

3MM+ Suppliers

$159MM LTM Revenue

45% LTM YoY Revenue Growth


COMPREHENSIVE USER-CENTRIC ACCELERATED

OPEN PRESCRIPTIVE

©2017 Coupa Software, Inc. – Confidential – All Rights Reserved 10 *Savings is an estimate based on industry b h k

CUSTOMERS ACHIEVE MEASURABLE BUSINESS VALUE Note: Savings numbers are an estimate based on industry benchmarks


UNIFIED CLOUD PLATFORM FOR BUSINESS SPEND

3MM+ SUPPLIERS 530+ CUSTOMERS* 1.5MM+ LICENSED

USERS*

$18Bn+ OF SAVINGS

TO DATE

$500Bn+ CUMULATIVE

SPEND UNDER MANAGEMENT

100+ COUNTRIES

20 LANGUAGES

* Figures as at January 31, 2017.


CONSUMERIZED BUSINESS EXPERIENCES DRIVE ADOPTION


DESIGNED FOR CONNECTIVITY AND INTEROPERABILITY

SAN

cXML Digital Scan

CSP

EDI


TRADE EXTENSIONS ACQUISITION ADDS STRATEGIC SOURCING CAPABILITIES

• Well established provider of Strategic Sourcing and Optimization software; handling some of the world’s largest sourcing events

• Global customers across verticals such

as manufacturing and retail

PROFILE

Manufacturing Asset Optimization

Construction Projects

Transportation & Logistics

Facilities Management Fresh

Produce

Raw Materials

Temp Labor

Goods for Resale

Chemical Feedstocks

CO

MPL

EXIT

Y

STRATEGIC IMPORTANCE


TRADE EXTENSIONS ACQUISITION ALIGNED TO COUPA GROWTH DRIVERS

Expand Global Customer Base

Increase Direct Spend Under Management

Complex event handling for strategic supply chain events from

logistics to raw materials.

Standalone sourcing opportunities at global businesses running

non-Coupa systems.

Continue to Innovate & Further Develop Our Platform

Solidifies market leadership position with deep capabilities

for strategic sourcing.

Deepen Existing Customer Relationships

Upsell opportunities across Coupa and Trade Extensions

customer bases.


Note: We calculate the lifetime value of our customers and associated customer acquisition costs for a particular year by comparing (1) gross profit from net new subscription revenues for the year multiplied by the inverse of the estimated subscription renewal rate to (2) total sales and marketing expense incurred in the preceding year

CONTINUED PROGRESS AGAINST KEY METRICS AND RECENT WINS

Recent Customer and Partnership Wins

Q2 2017 Q2 2018 Q2 2017 Q2 2018

>$255Bn >$500Bn LTM Revenue $109MM $159MM

>$8Bn >$18Bn Non-GAAP Gross Margin 65% 71%

Cumulative Spend Under Management

Savings to Date


LARGE MARKET OPPORTUNITY

$4.5Bn

$2.7Bn

$9.6Bn $16.8Bn

TOTAL SUPPLY CHAIN MANAGEMENT (1)

EXPENSE MANAGEMENT (2)

PROCUREMENT (1)

2017 ANALYST ESTIMATED MARKET

(1) International Data Corporation, Worldwide Semiannual Software Tracker, November 2016 (2) Technavio market research sourced from ISI Securities EMIS, Global SaaS-based Expense Management Market, December 2013


STRATEGIC EXTENSION TO ANY ERP

Sales Marketing

Service Customer Self Service

Social

Field Service

IT Helpdesk

Facilities Mgmt

Talent

HRMS Perfor- mance

Payroll Employee

Self Service

FRONT OFFICE BACK OFFICE

Supplier Manage-

ment

Inventory Services

Procurement OCR

Contracts

Sourcing

Compliance

Request Mgmt

Contract Authoring

Storefront

Portal

Suppliers

INVOICING

PROCUREMENT

EXPENSES

Benefits

CRM

HCM SERVICE MANAGEMENT

ERP


STRATEGIC EXTENSION TO ANY ERP

FRONT OFFICE BACK OFFICE

CRM

SERVICE MANAGEMENT

HCM

ERP

PROCURE

INVOICE


YEARS OF INDUSTRY VALIDATION

2015

TRAVEL AND EXPENSE MANAGEMENT NAVIGATOR

2

3

4

5

6

7

8

9

10

4.5 5.5 6.5 7.5 8.5 9.5

PR

OFI

CIE

NC

Y

ADAPTABILITY

CERTIFY

EXPENSIFY EXPENSE WATCH

INTERPLX

COUPA

DATABASICS INFOR

APPTRICITY

SUTISOFT CONCUR CHROME RIVER

LEADER WITH THE HIGHEST PROFICIENCY

2016

MAGIC QUADRANT FOR PROCURE TO PAY SUITES

LEADER WITH HIGHEST ABILITY TO EXECUTE

2017

THE FORRESTER WAVE™: EPROCUREMENT

HIGHEST RATING IN CURRENT OFFERING & STRATEGY

20

…AN IMPRESSIVE TRACK RECORD FOR INNOVATION, A STRONG BRAND AND A SUCCESSFUL SYSTEM INTEGRATOR STRATEGY.

“ “ …OFFERS A FULL EXPENSE MANAGEMENT PLATFORM WITH INGENUITY & DESIRE FOR INNOVATION.

“ “ …LIBRARY OF CUSTOMERS DESCRIBING MEASURABLE BENEFITS FROM USING COUPA IS TESTAMENT TO ITS PRODUCT AND ITS APPROACH.

“ “


BEST OF BOTH WORLDS PARTNERSHIP

Open Marketplace +

Enterprise Control


CUSTOMER SUCCESS FRAMEWORK DRIVES EXCEPTIONAL TIME TO VALUE

Value Optimization

$6MM of savings in following 12 months, leads to run rate of

$10MM in annual savings

Identification of $70MM in potential future savings results in decision to add users and additional modules

Value Realization

93% improvement in on-contract spending leads

to savings of $4MM

Project delivers 8% reduction in spending in remote locations via

visibility and rejections

Value Discovery

CFO discovers that only 26% of spending is done on-contract

Organization needs control over spending in remote locations

Sample Customer


TYPES OF PRESCRIPTIVE INTELLIGENCE

Application Intelligence Suite Synergy Intelligence Community Intelligence


NETWORK EFFECTS CREATE BARRIERS TO ENTRY

COMMUNITY INTELLIGENCE

METHOD, SYSTEM AND APPARATUS FOR E-MAIL REQUISITIONING

SHOPPING AT E-COMMERCE SITES WITHIN A BUSINESS PROCUREMENT APPLICATION

PATENTED POLICY SYSTEM FOR E-PROCUREMENT

PATENTED PATENTED PATENTED FEEDBACK VALIDATION OF ELECTRONICALLY GENERATED FORMS

AGGREGATE SPEND

LEVERAGE

$500Bn+ CUMULATIVE

SPEND UNDER MANAGEMENT

SUPPLIER NETWORK

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj67aSq2JLPAhVDrD4KHSphC80QjRwIBw&url=http://atacs.trucking.org/Savings/Maintenance/FleetMaintenanceSupplies.aspx&psig=AFQjCNF0N4FDMl1Mv22HQeQfwYdkJlrVjw&ust=1474074164395006

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=&url=https://www.tenable.com/partners/shi&bvm=bv.133053837,d.dmo&psig=AFQjCNHNVFGnCobV3NOjPji2EXkSGHYVBQ&ust=1474074431130537

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjnv_2P2pLPAhVM9WMKHYanBgIQjRwIBw&url=https://veritivmadill.com/welcome/questions/&bvm=bv.133053837,d.dmo&psig=AFQjCNGyWhxwJAS2JMHcinai57j6HUA-ag&ust=1474074646647479

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiqh-ik2pLPAhUBWWMKHYtMBWMQjRwIBw&url=https://en.wikipedia.org/wiki/Wayfair&bvm=bv.133053837,d.dmo&psig=AFQjCNEdGkApM76MprvNxGNHr68_5XopCA&ust=1474074688238475

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjCwIHN2pLPAhXLHD4KHVzQBxwQjRwIBw&url=http://www.valpak.com/c/coupon-codes/1800flowers-coupons/&bvm=bv.133053837,d.dmo&psig=AFQjCNFup9YyWBDvoNzwaSx0GzR8WNzVEg&ust=1474074774419517


EXTENSIVE PARTNER ECOSYSTEM

Mid

-Mar

ket

Belo

w $

1Bn

Ente

rpris

e Ab

ove

$1Bn


GROWTH DRIVERS

Expand Global Customer Base

Continue to Innovate & Further Develop Our Platform

Further Develop & Expand Our Partner Ecosystem

Increase Direct Spend Under Management

Deepen Existing Customer Relationships


STRONG LEADERSHIP TEAM WITH DIVERSE EXPERIENCE

CHANDAR PATTABHIRAM CHIEF MARKETING

OFFICER

JP KRISHNAMOORTHY SVP,

ENGINEERING

JON STUEVE VP &

GENERAL COUNSEL

RAY MARTINELLI EVP,

PEOPLE

ROB BERNSHTEYN CHIEF EXECUTIVE OFFICER, CHAIRMAN OF THE BOARD

TODD FORD CHIEF FINANCIAL

OFFICER

RAJA HAMMOUD SVP, PRODUCT MANAGEMENT

DAVID WILLIAMS VP,

TECHNOLOGY

ROGER GOULART SVP, BUSINESS

DEVELOPMENT & ALLIANCES

RAVI THAKUR SVP, CUSTOMER

SUCCESS AND SERVICE DELIVERY

STEVE WINTER CHIEF REVENUE

OFFICER


CORE VALUES

ENSURE CUSTOMER SUCCESS

FOCUS ON RESULTS

STRIVE FOR EXCELLENCE


TODD FORD CHIEF FINANCIAL OFFICER

29


FINANCIAL HIGHLIGHTS

STRONG REVENUE GROWTH

RECURRING SUBSCRIPTION REVENUE MODEL WITH HIGH VISIBILITY

CONSISTENT COHORT SPENDING WITH HIGH PROFITABILITY

COMPELLING UNIT ECONOMICS DEMONSTRATE POWERFUL BUSINESS MODEL


RAPIDLY INCREASING CUMULATIVE SPEND UNDER MANAGEMENT

$3 $7 $23 $57

$110

$190

>$255

>$500

FY11 FY12 FY13 FY14 FY15 FY16 FY17Q2 FY18Q2

CUMULATIVE SPEND UNDER MANAGEMENT ($Bn)

>$245Bn processed in last twelve months


PRICING MODEL IS ALIGNED TO BUSINESS VALUE AND SIMPLE TO UNDERSTAND

Pricing Components

3

Employees Users Applications


RAPID REVENUE GROWTH

85%

90%

88%

15%

10%

12%

$51

$84

$134

FY15 FY16 FY17

$21 $23

$25 $28

$31 $34

$36

FQ3'16 FQ4'16 FQ1'17 FQ2'17 FQ3'17 FQ4'17 FQ1'18 FQ2'18

62% CAGR

Subscription Services Professional Services

HISTORICAL ANNUAL REVENUE ($MM) HISTORICAL QUARTERLY SUBSCRIPTION SERVICES REVENUE ($MM)

44% YoY

Growth

$40


COHORT DATA DEMONSTRATES POWERFUL BUSINESS MODEL

$4.0 $9.9 $10.0 $10.1 $11.6

($14.0)

($2.5) ($2.5) ($2.6) ($2.9)

(249%)

75% 75% 74% 75%

FY13 FY14 FY15 FY16 FY17

CUSTOMER COHORT CONTRIBUTION MARGINS ($MM)

Contribution Margin Subscription Revenue Variable Costs


COMPELLING UNIT ECONOMICS

$1

>$6

CUSTOMER ACQUISITION COST LIFETIME VALUE

LTV/ CAC

Note 1: LTV/CAC was reported for the period ending FY17; Updates to this metric are expected to be provided on an annual basis Note 2: We calculate the lifetime value of our customers and associated customer acquisition costs for a particular year by comparing (1) gross profit from net new subscription revenues for the year multiplied by the inverse of the estimated subscription renewal rate to (2) total sales and marketing expense incurred in the preceding year


GROSS MARGINS (NON-GAAP)

76% 77%

80% 80% 78%

80% 81%

82% 80% 81%

(68%) (104%) (89%) (59%) (53%) (5%) (5%)

10%

(9%) FQ1'16 FQ2'16 FQ3'16 FQ4'16 FQ1'17 FQ2'17 FQ3'17 FQ4'17 FQ1'18 FQ2'18

QUARTERLY GROSS MARGIN TRENDS(1)(2)

► FQ2’18 Professional Services & Other margins weighed by headwinds as revenue recognition transitions from customer go-lives

► Professional Services margins should stabilize with transition to revenue recognition as services are delivered

► Continued investments in Professional Services partner ecosystem

CONSIDERATIONS

Subscription Services Gross Margin Prof. Services & Other Gross Margin Total Gross Margin

(1) For a reconciliation of GAAP to Non-GAAP metrics, refer to the Appendix (2) Bar chart represents gross profit dollar amounts while data labels refer to gross margins

62% 64%

65% 64%

60% 65%

69%

73%

(60%)

71% 71%


BUSINESS MODEL TO PROVIDE OPERATING LEVERAGE (NON-GAAP(1))

(1) For a reconciliation of GAAP to Non-GAAP metrics, refer to the Appendix (2) FCF stands for free cash flow, which is generally calculated as cash flow from operating activities plus cash flow from investing activities. The Company excludes the impact of acquisitions when reporting FCF. *These measures are forward-looking; are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management; and are based upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. For discussion of some of the important factors that could cause these variations, please consult the “Risk Factors” section in our most recently filed Form 10-K or 10-Q. Nothing in this presentation should be regarded as a representation by any person that these measures will be achieved and the Company undertakes no duty to update these measures.

FY17 FQ2’18 MID-TERM* LONG-TERM*

Gross Margin 67% 71% 68-70% 75-80%

R&D as % of Revenue 21% 20% 18-21% 12-15%

S&M as % of Revenue 49% 48% 47-50% 35-40%

G&A as % of Revenue 16% 16% 11-13% 7-10%

Operating Margin (19%) (13%) (10-20%) 20%+

FCF Margin(2) (19%) 18%; (1%) TTM 0-5% 20%+


COUPA: LEADING THE CLOUD REVOLUTION IN BUSINESS SPEND MANAGEMENT

38

SP

EN

D M

AN

AG

EM

EN

T E

RP

C

RM

H

CM

True Cloud Software-as-a-Service Companies Becoming Mainstream

1990s

TODAY

1980s

2000s


CLOUD PLATFORM FOR BUSINESS SPEND


APPENDIX

40


GAAP TO NON-GAAP RECONCILIATION

Q1 FY'17 Q2 FY'17 Q3 FY'17 Q4 FY'17 Q1 FY'18 Q2 FY'18 FY 2017Subscription Revenue $25,372 $27,783 $30,799 $33,834 $35,664 $39,764 $117,788Professional Services Revenue $3,811 $3,349 $4,643 $4,184 $5,473 $4,787 $15,987Total Revenue $29,183 $31,132 $35,442 $38,018 $41,137 $44,551 $133,775

GAAP Subscription COGS $6,050 $6,029 $6,346 $6,630 $7,996 $9,025 $25,055Amortization of acquired intangible assets $221 $212 $212 $308 $486 $788 $953Share-based compensation expense $125 $140 $150 $300 $355 $529 $715Non-GAAP Subscription COGS $5,704 $5,677 $5,984 $6,022 $7,155 $7,708 $23,387

GAAP Subscription Gross Profit $19,322 $21,754 $24,453 $27,204 $27,668 $30,739 $92,733% Margin 76% 78% 79% 80% 78% 77% 79%

Non-GAAP Subscription Gross Profit $19,668 $22,106 $24,815 $27,812 $28,509 $32,056 $94,401% Margin 78% 80% 81% 82% 80% 81% 80%

GAAP Professional Services COGS $5,968 $5,452 $5,031 $4,763 $5,501 $5,923 $21,214Share-based compensation expense $135 $109 $155 $373 $563 $716 $772Non-GAAP Professional Services COGS $5,833 $5,343 $4,876 $4,390 $4,938 $5,207 $20,442

GAAP Professional Services Gross Profit ($2,157) ($2,103) ($388) ($579) ($28) ($1,136) ($5,227)% Margin (57%) (63%) (8%) (14%) (1%) (24%) (33%)

Non-GAAP Professional Services Gross Profit ($2,022) ($1,994) ($233) ($206) $536 ($420) ($4,455)% Margin (53%) (60%) (5%) (5%) 10% (9%) (28%)

GAAP Total Gross Profit $17,165 $19,651 $24,065 $26,625 $27,640 $29,603 $87,506% Margin 59% 63% 68% 70% 67% 66% 65%

Non-GAAP Total Gross Profit $17,646 $20,112 $24,582 $27,606 $29,044 $31,636 $89,946% Margin 60% 65% 69% 73% 71% 71% 67%


GAAP TO NON-GAAP RECONCILIATION (CONT’D)

* Free cash flow is generally calculated as cash flow from operating activities plus cash flow from investing activities. As illustrated above, the Company excludes the impact of acquisitions when reporting free cash flow.

Q1 FY'17 Q2 FY'17 Q3 FY'17 Q4 FY'17 Q1 FY'18 Q2 FY'18 FY 2017GAAP Research & Development $7,840 $7,206 $7,179 $8,037 $9,171 $10,720 $30,262Amortization of acquired intangible assets $0 $0 $0 $0 $0 $0 $0Share-based compensation expense $322 $303 $357 $784 $1,152 $1,647 $1,766Non-GAAP R&D expenses $7,518 $6,903 $6,822 $7,253 $8,019 $9,073 $28,496

% of Revenue 26% 22% 19% 19% 19% 20% 21%

GAAP Sales & Marketing $15,836 $19,252 $16,315 $17,159 $20,679 $23,812 $68,562Amortization of acquired intangible assets $0 $0 $0 $0 $0 $189 $0Share-based compensation expense $471 $441 $937 $1,282 $1,600 $2,340 $3,131Non-GAAP S&M expenses $15,365 $18,811 $15,378 $15,877 $19,079 $21,283 $65,431

% of Revenue 53% 60% 43% 42% 46% 48% 49%

GAAP General & Administrative $5,553 $4,620 $6,068 $7,865 $8,177 $9,430 $24,106Litigation-related costs $123 $26 $1 $0 $0 $0 $150Share-based compensation expense $653 $566 $785 $1,064 $1,607 $2,406 $3,068Non-GAAP G&A expenses $4,777 $4,028 $5,282 $6,801 $6,570 $7,024 $20,888

% of Revenue 16% 13% 15% 18% 16% 16% 16%

GAAP Operating Profit ($12,064) ($11,427) ($5,497) ($6,436) ($10,387) ($14,359) ($35,424)% Margin (41%) (37%) (16%) (17%) (25%) (32%) (26%)

Non-GAAP Operating Profit ($10,014) ($9,630) ($2,900) ($2,325) ($4,624) ($5,743) ($24,869)% Margin (34%) (31%) (8%) (6%) (11%) (13%) (19%)

Operating Cash Flows (10,226) 2,507 (2,825) (10,411) 7,160 9,178 (20,955) Investing Cash Flows (1,386) (1,070) (1,044) (7,741) (1,353) (40,038) (11,241) Less: Acquisitions - - - (6,750) (140) (38,933) (6,750)

Free Cash Flow (FCF)* (11,612) 1,437 (3,869) (11,402) 5,947 8,073 (25,446) % Margin (40%) 5% (11%) (30%) 14% 18% (19%)



Q1 FY'16 Q2 FY'16 Q3 FY'16 Q4 FY'16Subscription Revenue $14,289 $17,333 $20,757 $23,288Professional Services Revenue $1,520 $1,371 $2,044 $3,076Total Revenue $15,809 $18,704 $22,801 $26,364

GAAP Subscription COGS $3,550 $3,995 $4,280 $4,979Amortization of acquired intangible assets $13 $13 $14 $347Share-based compensation expense $45 $54 $62 $74Non-GAAP Subscription COGS $3,492 $3,928 $4,204 $4,558

GAAP Subscription Gross Profit $10,739 $13,338 $16,477 $18,309% Margin 75% 77% 79% 79%

Non-GAAP Subscription Gross Profit $10,797 $13,405 $16,553 $18,730% Margin 76% 77% 80% 80%

GAAP Professional Services COGS $2,594 $3,639 $3,914 $4,960Share-based compensation expense $45 $840 $59 $70Non-GAAP Professional Services COGS $2,549 $2,799 $3,855 $4,890

GAAP Professional Services Gross Profit ($1,074) ($2,268) ($1,870) ($1,884)% Margin (71%) (165%) (91%) (61%)

Non-GAAP Professional Services Gross Profit ($1,029) ($1,428) ($1,811) ($1,814)% Margin (68%) (104%) (89%) (59%)

GAAP Total Gross Profit $9,665 $11,070 $14,607 $16,425% Margin 61% 59% 64% 62%

Non-GAAP Total Gross Profit $9,768 $11,977 $14,742 $16,916% Margin 62% 64% 65% 64%



Q1 FY'16 Q2 FY'16 Q3 FY'16 Q4 FY'16GAAP Research & Development $4,431 $5,792 $5,965 $6,579Amortization of acquired intangible assets $0 $53 $105 ($158)Share-based compensation expense $107 $750 $152 $227Non-GAAP R&D expenses $4,324 $4,989 $5,708 $6,510

% of Revenue 27% 27% 25% 25%

GAAP Sales & Marketing $10,679 $13,532 $14,306 $16,196Share-based compensation expense $176 $210 $706 $255Non-GAAP S&M expenses $10,503 $13,322 $13,600 $15,941

% of Revenue 66% 71% 60% 60%

GAAP General & Administrative $2,480 $8,719 $3,709 $4,632Litigation-related costs $642 $848 $327 $126Share-based compensation expense $186 $5,620 $547 $383Non-GAAP G&A expenses $1,652 $2,251 $2,835 $4,123

% of Revenue 10% 12% 12% 16%

GAAP Operating Profit ($7,925) ($16,973) ($9,373) ($10,982)% Margin (50%) (91%) (41%) (42%)

Non-GAAP Operating Profit ($6,711) ($8,585) ($7,401) ($9,658)% Margin (42%) (46%) (32%) (37%)

Documents

CLOUD PLATFORM FOR BUSINESS SPEND · represent our management’s beliefs and assumptions only as of the date of this presentation. We undertake no obligation to update publicly any