Coupa Software Inc (NASDAQ: COUP) stock lost over 4.4% on 12th march, 2019 (As of 11:50 am GMT-4; Source: Google finance) after the company reported Non-GAAP net income of $3.4 million for the fourth quarter of FY 19, as compared to $1.4 million for the same period last year.
The company had reported the adjusted revenue growth of 39 percent to $74.91 million in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $67.73 million. This quarter the company had signed many great new customers who are aligned with our success-oriented Value-as-a-Service approach to business spend management. Subscription revenues for Q4 were up 45% year-over-year and up 42% for the year. Calculated billings for Q4 were $127 million, up 51% year-over-year. Several factors contributed to the strong billings in Q4. One, the company’s largest new ACV quarter ever. Two, the largest renewal quarter ever. And three, billings contribution from the Hiperos acquisition. Total deferred revenue and backlog at year-end was $532 million, up from $359 million a year ago, representing a year-over-year increase of 48%. Deferred revenue at the end of Q4 included approximately $6 million from the Hiperos acquisition.
Moreover, Cash and short-term investments at quarter-end were $321 million, down from $406 million at the end of Q3. This includes $95 million in cash paid for Hiperos in Q4, which was offset by positive free cash flow of $7 million and positive $3 million from financing activities. Operating cash flows and free cash flows for the quarter ended January 31, 2019, were $9.5 million and $6.8 million, respectively.
For the first quarter of 2020, COUP expects total revenues to be between $73.5 and $74.0 million. Subscription revenues are expected to be between $67.5 and $68.0 million. This includes a negative impact of approximately $2.0 million due to three fewer calendar days for revenue recognition in Q1 compared to Q4. Professional services and other revenues are expected to be approximately $6.0 million. Non-GAAP loss from operations is expected to be between $2.0 and $3.5 million. Non-GAAP net loss per basic and diluted share is expected to be between $0.03 loss and $0.06 loss per share. Free cash flows are expected to be approximately $15.0 million.
For FY 20, COUP expects total revenues to be between $325.0 and $327.0 million. Non-GAAP income from operations is expected to be between $3.0 and $7.0 million. Non-GAAP net income per diluted share is expected to be between $0.04 and $0.10 per share.