Coupa

“Coupa, New Relic, Anaplan, even Zendesk, Avalara, Smartsheet they all look like they may not be able to fully repay their debt”

“I worry that a bunch of these private equity owned assets that are over levered are ripe for disruption versus like independent software companies that are focused on growth, that are trying to innovate.”

“I'm really looking at a lot of the PE board assets, your Anaplans, your Coopers of the world thinking, wow, you were bought at the height of the market. You don't have the founder as the CEO. You've lost product centricity. This is going to be a really tough s…”

“When you look at, you know, bill.com, right, they're a publicly traded company, Expensify Public and Traded or Concur or Coupa. These are all like large players that are actually very motivating and largely de-risk some of the business decisions you're making.”

“And I almost cannot tell you of a deal where a peer or competitor or an outsider, I cannot almost say one single deal where they haven't criticized us for paying too much. It's truly, truly amazing. So Coupa Anaplan and whatever other investments are no except…”

“And so I think Coupa is like the canary in the coal mine. It is the beginning of what I suspect is a tidal wave of PE sponsored deals in tech companies, largely SaaS, but may go into other realms.”

“So the deal happened at an eight billion dollar valuation. That was a 31% premium to the public price. It was 8.4 times next 12 months revenue. And on a trailing basis, it was about 10.4 times The last 12 months revenue.”

“There was almost a deer in headlights moment amongst all of our, you know, the vast majority, I would say of our prospects around the world, whereas we don't know what's going to happen. So we actually need your help. You know, we need to get PPE equipment. We…”

“Well, the average is roughly six to nine months for enterprise customers, our mid-market customers, you know, four, maybe five weeks.”

“When we're looking at our business spend index, if your viewers go to spendindex.com, they can see the data on that. I mean, we've been looking to retail for three, four quarters, and it's been trending down.”

“You know, it's interesting with Shopify and Amazon. I mean, these are our customers, you know, Amazon runs the tens of billions they managed through Coupa.”

“What we learned from our largest customers, Amazon being one and others is how to support massive complexity in the simplest way possible. And what we learned from some of our smaller customers is how to keep things very intuitive and user centric, but at the …”

“So we have put guardrails on the business now for 45 quarters. We've had guardrails on the business. Very, very careful and thoughtful growth, not overextending ourselves, but at the same time, careful management of sales and marketing efficiency, and then get…”

“Our first raise that, that I was involved in was, you know, was fifteen million and a half posts, right? It was I think seven million dollar raise, 15 and a half post.”

“No, not even that material. None asked for the money back.”

“Well, that's gone up virtually every quarter now for 34 quarters in the mid-market, it's anywhere from, you know, 50,000 to maybe 200,000 or so dollars a year, so annual subscription. And in the enterprise, it's hundreds of thousands, in many cases, a couple o…”

“We've raised the total of, I think now I think about a 180, and then we did an IPO. So after the IPO was about 75, we did a secondary. So a few hundred million, and you know, we've got a couple hundred million in the bank right now, too.”

“So we've expanded our margins for virtually every quarter for 34 quarters, both scripture margin, gross margin. And we've been now cash flow positive for the last trailing 12 months.”

“Well, we've always been optimizing on LTV to CAC. So a lifetime value of a customer. And then CAC being cost of customer acquisition. So, you know, we're running really well there. It's about a, Over eight, but you know, I think of publicly we gotta be safe. W…”

“I would much more have them, I would suggest for them to focus much more on how sticky their product is, because I get the point of getting their money back and recovering and the importance of that, but if they turn after three years or four years, eventually…”

“So our revenue retention is been roughly around 95% for years. And with add on business, which we're not focused on at all, it's nearly about a 110%.”

“If you're sort of over one on SAS magic number, you're under pressing into the market, you're below .5, you're kind of risky and you could argue maybe even buying the business. So you could stay at kind of .75, you know, if you're a little overall efficient, i…”

“We didn't know that gross margins have carefully expanded also for about 34. I mean, they were at a 30% now, you know, we're touching 70%. Subscription is 90 something. So we don't have an issue there.”

“Well, we've been growing, you know, forty-something percent, but, you know, we run the business on a couple of different levers. I mean, one is sustained 30% plus growth rate, and about 90% of our revenue is recurring, so that's, that makes the business, you k…”

“No, actually one gentleman from Oracle left, started the company. They got it to about 19 people. And that's why I said to you, January or nine, that's why I came in. Remember that was a very tough time. I've taken the company down a lot. And three months late…”

“No, no, no. That's not our good either. We were somewhere in that same neighborhood. It was just like roughly unicorn kind of thing. And we entered in at the same place and then it went up to I don't know, 1.7 billion or something. And it's, so it's been aroun…”