Coupa – spend management / eProcurement tech firm sees momentum continues

Coupa, the California based spend management software firm continued their run of strong results, with their full year figures published this week. As a private firm, they don’t disclose full details – such as profit for instance – so some will inevitably be cynical about that aspect of their progress, purely because we don’t have all the details.

But from a revenue, customer acquisition and expansion standpoint, they are very impressive figures.

  • Revenue: Quarter 4 2012 revenues were 40% + up on the previous quarter, and 100% up on the previous year’s same quarter. Annual revenue growth was also in  excess of 100 percent.
  • Renewals: Over the past 16 quarters, Coupa has maintained consistent contract renewal rates that have been upwards of 90 percent. In Q4 2012, contract renewal rates were at 94 percent.
  • Platform Growth: Spend through the platform more than tripled in 2012 over 2011, and  Coupa enabled more than 650,000 worldwide suppliers, “creating a global supplier ecosystem”.
  • Employees: Coupa increased its employee base worldwide in 2012 by more than 70 percent during 2011 and is continuing to hire. New offices have opened in the US, and serious recruitment is now going on in a number of European countries we’re aware of.
  • Industry Recognition: In 2012, The Wall Street Journal named Coupa “The Next Big Thing.” In Q4 2012, Coupa was ranked No. 115 on Deloitte’s Technology Fast 500™, was recognized as a “fastest-growing company” by BestinBiz 2012 and was selected by PayStream Advisors as a Technology Excellence Award winner.

We featured quite recently their customer wins including Spotify in Sweden and Bourne Leisure in the UK  – there were many more in the US of course.  Finally, they report that “in Q2 2012, Coupa raised $22 million in a Series E funding round, led by new investor, Crosslink Capital. The funding is being used to fuel global expansion, and as of Q4 2012, Coupa reached more than 300 customers worldwide”.

I guess it is that willingness to raise funds and drive dramatic growth that sets Coupa apart from some of the European firms in a similar space. But of course Coupa couldn’t make that work without impressive products, which means that their ambition is founded on solid basis.  As they develop more reference sites which will re-assure potential European clients, we suspect they are certain to take an increasing market share this side of the Atlantic as well as in their homeland.

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