Coupa is one of our favorite enterprise SaaS leaders at SaaStr, and one more folks should know about.  It dominates the enterprise segment of a huge space — Spend Management — and completely eclipsed its predecessor, SAP/Ariba, which was an early SaaS leader.

They are at 2,000 customers, a stunning 40% revenue and 46% billings growth, at $700m in ARR.

We’ve been fortunate enough to feature CEO Rob Berynstyn at many SaaStr events over the years.

5 Interesting Learnings:

1. Network effects are real in Spend Management.  We’ve talked a lot about Moats in SaaS, and one is network effects. Coupa now manages $2.5T in spend management over 7 million suppliers.  Could you switch to another app?  Yes.  Would you want to?  No.  Imagine how many vendor relationships that would be to switch over …

2.  80% of implementations led by partners, with 5,000 trained partner consultants.  If you are going enterprise, you have a good chance of ending up here as well.  The really big deals, and often even smaller ones, are really deployed in many cases by partners.  80% of them, in fact, at Coupa.  The “biggies” as you can see below are Accenture, KPMG, and Deloitte.  But Coupa has implementation partners across all segments.  The largest implementation partners typically favor 1 vendor, and smaller ones often deploy only 1 vendor.  Be that vendor, and you can really win.

3. Even at $700m in ARR, Coupa has only closed 2,000 of 100,000 target customers. There’s just so much room to run. It’s interesting to see Coupa present its TAM this way in terms of both customer count and market size.  Even at $700m in ARR, they’ve just scratched the surface.  Cloud is huge.  This is why all the SaaS leaders seem to have almost unlimited room for growth:

4.  Serves both mid-market and enterprise at the same time.  And ARR per deal has gone up every quarter.  Coupa shows you can do both even in a complex offering, and has driven up ACVs in the mid-market in particular.

5.  Slowly becoming a fintech.  Coupa isn’t as much a fintech as SMB players like, but it’s getting there with Coupa Pay.  Coupa plans the majority of its customers to be running payments through their platform in 10 years. Today, about 12% do (240 of 2000 customers). This is a bigger task than SMB, but a huge market.

And a few bonus notes:

6.  Professional Services are 17% of revenues.  Even with most of their customers being deployed by partners, Coupa still does plenty of professional services.  17% of its revenues are from Pro Serv, relatively high but fairly standard in the enterprise.

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