Good day, ladies and gentlemen, and welcome to the Coupa Software first quarter fiscal year 2021 earnings release conference call. I would now like to introduce your host for today's conference call, Mr. Steven Horwitz, the VP of Investor Relations. Mr. Horwitz, you may begin your conference. Thank you. Good afternoon, and welcome to Coupa Software's first quarter conference call. Joining me today are Rob Bernshteyn, Coupa CEO, Todd Ford, Coupa's President of Finance and Operations, and Tony Tiscornia, CFO.. Our remarks today include forward-looking statements about guidance and future results of operations, strategies, market size, products, competitive position, and potential growth opportunities. Our actual results may be materially different. Forward-looking statements involve risks and uncertainties and assumptions that are described in our most recently filed 10-Q. These forward-looking statements are based on our beliefs and assumptions today, and we disclaim any obligation to update any forward-looking statements. If this call is replayed after today, the information presented may not contain current or accurate information. We also present both GAAP and non-GAAP financial measures. A reconciliation of certain of these measures is included in today's earnings release, which you can find on our investor relations website. A replay of this call will also be available. Unless otherwise stated, growth comparisons are against the same period of the prior year. As a reminder, we'll be conducting an Analyst Day on July 15th, starting at 9:00 A.M. Pacific, 12:00 P.M. Eastern, and we'll be doing so in a virtual setting. The registration site will be up on the Coupa website starting July 1st. With that, I will now turn the call over to Rob. Rob? Thanks, Steven. Hello, everyone, and thank you for joining us today. We delivered another very strong quarter, thanks to the increasing importance of Business Spend Management for leaders across all industries, and strong execution by our team. As organizations get on with the work of building back better, they are increasingly turning to us as a trusted partner. Our financial performance reflects this dynamic. This quarter, we delivered $167 million in revenue, 46% calculated billings growth, and our 12th consecutive quarter of non-GAAP profitability. We also continue to see meaningful growth in our sales pipeline. Proudly, today, our cumulative spend under management is now nearly $2.6 trillion. We believe the success we've had is validating not just our performance, but of our broader vision of Business Spend Management as a critical category onto itself. Let me explain what I mean by that. We see the BSM category as a constellation of intersecting needs for the back offices of global companies. At their core, those needs revolve around strategy and spend, whether it's how you optimize supply chain design and planning, how you run sourcing and procurement, or how you manage payments, cash flows, and liquidity. As you know, we've bolstered our platform with both organic development and acquisitions over the past several years that have allowed us to integrate these and many more areas of strategy and spend into one seamless platform. If you think about a company as a car, the BSM category is the engine, and Coupa is the platform that drives it. It is often heard, category winners don't build solutions that customers want. They build solutions that customers may not yet know they need. That's what we're hearing from many of our customers, is that they didn't fully realize just how much they needed to get control of their business spend before facing the unpredictability of the last 15 months. Many of our prospective customers were comfortable with the status quo, where Business Spend Management decisions were managed in silos. Now they get it. They see that decisions around strategy and spend need to be made comprehensively, in real time, and without barriers getting in the way. At Coupa, we see it as our responsibility to give them a platform to act with speed and agility, and we believe there are a number of mega trends that are increasing the demand for our platform and will help drive our growth for years to come. Let me highlight just a couple. The first of those mega trends is supply chain fragility. The current semiconductor chip shortage offers an example of why supply chain and procurement can't be dealt with in silos. I frequently talk to CEOs who tell me that they are looking at how to redefine their approach in ways that will allow them to balance efficiency and resiliency so they never get caught flat-footed again. While the pandemic played an outsized role in supply chain disruption, we know that other trends will likely drive more uncertainty over the long term. Whether it was the winter storm that collapsed the Texas power grid or the sandstorm that lodged a ship in the Suez Canal, climate events will continue to create unpredictability in supply chains, and so will geopolitical issues. China has made some very aggressive moves of late, for example, and I think you could count on one hand the number of global companies whose supply chains don't include China. How to navigate those unknowns is a huge challenge that will be with us for a long time. Supply chain fragility means that supply chain strategy and planning are going to be an increasingly integral part of Business Spend Management. This requires a solution that fully integrates traditional procurement with supply chain data in one platform to provide customers with the agility to navigate an ever-changing environment. The other mega trend we see in the near term is the ongoing pandemic environment. Over the last several months, we've seen the extraordinary success of vaccination campaigns in several countries. However, there still remain many less advanced countries who possibly won't have enough vaccine supply through the end of 2022. This creates a breeding ground for the virus, which raises the possibility of variants that could circumvent vaccines. I know this is something that our customers are trying to navigate on a day-to-day basis, especially with respect to their supply chain and procurement issues. But there are other important knock-on effects of the pandemic too. One of which is the expectation that we will continue to operate in a low interest rate environment through 2022. That creates both challenges and opportunities when managing corporate liquidity and asset allocation. Cheap money certainly helps companies facilitate investment over the long term. With a bond market that doesn't offer much yield, companies are being pushed to reimagine what it means to carry cash on a balance sheet, and how to effectively maximize dollars across a closed loop of spend. They're increasingly relying on our software to strategize and manage this. These mega trends are driving a renewed awareness within companies that have not prioritized their back-office investments. Now it is front of mind, and we are poised to take advantage of that. As we have illustrated in the past, our total addressable market is massive, and we intend to own the lion's share of that market. We're the only platform that gives companies a single source of truth across all spend decisions to maximize the effectiveness of the actions they take. This is why we are seen as the leader, proudly, in Business Spend Management. You could see evidence of this leadership position in our most recent quarter. Just a few examples. Our customer community continues to grow as we welcome dozens of new companies. We unveiled more than 100 new features for our customers in our latest platform release, and we saw continued momentum in a key growth driver, Coupa Pay. Let me now touch on each of these points, first by sharing a couple of customer stories. The first story is that of Ally Financial, a digital financial services company. They have recently gone live on Coupa to drive digitization across AP, sourcing, IT, vendor management, and supplier diversity. Ally IT is eliminating custom coding and moving fully to SaaS and configuration-based management for lower total cost of ownership and increased agility. With Coupa, Ally chose a holistic approach to spend management with the goals of improving operational efficiency, visibility for reporting, analytics, automation, and enhanced spend control. To date, Ally has already processed nearly $2 billion in spend through Coupa. Another story is that of Saga, which provides products and services for life after 50, from insurance to travel. Prior to Coupa, Saga had an onerous manual supplier payments process that was prone to errors, long invoice cycle times, and compliance issues. The workflow for each was administered completely on paper. After attempting to implement an AP automation solution a few years prior, Saga's finance director realized that he needed to take a more complete approach to addressing their finance transformation. He broadened the scope to include the entire procure-to-pay process. Saga's use of Coupa Pay has made payments run more efficiently, reducing approval times from hours to minutes. Saga also realized the benefit of implementing Coupa Pay at the same time as a core P2P platform, which served to simplify the integration. Their payments can now be administered digitally, and thus remotely, versus having paper-based approval processes and paper checks. After implementing Coupa's comprehensive platform, Saga was able to realize significant operational efficiencies. They were able to reduce headcount, reduce invoice cycle times, and increase control and compliance. Now the team has greater confidence in the data, and errors no longer keep them up at night. Now let's talk about how we continue to deliver on the promise of creating value as a service through our three major platform updates per year. Let me highlight a few examples. To help our customers spend smarter, we enhanced our business value dashboards to help customers promote operational spending habits. They can now configure their community intelligence metrics to those most relevant for their business. This also helps them quantify the value that Coupa's delivered by showcasing realized savings and prescribing actions for potential savings in the future. We've also built platform enhancements that can help companies meet their critical ESG goals. Our supplier diversity dashboard provides detailed information on diversity activity, spending, and contracting to help drive spend with underrepresented minority suppliers. From our perspective, it matters a great deal how we manage our own ESG goals, and fundamental to that work is leveraging our platform to help our customers manage theirs. Moving on to Coupa Pay, we saw another quarter of increased momentum. As we've said in the past, we're early on in the pay journey, but we are encouraged by the greater than 30% attach rate on new deals we saw in Q1. In fact, though still working with small numbers, we ran more payment volume in the first 4 months of 2021 than we did all of the previous year. We expect that over the long term, most of our customers will utilize Coupa Pay as their main payment solution. Now it truly was another strong performance in what was our 49th consecutive quarter of execution. As you know, none of these accomplishments would have been possible without our extraordinary team. I want to call out a select group of my colleagues who exemplify our three core values. Let me start with Miriam Gonzalez, who embodies our number 1 core value, ensuring customer success. Miriam focuses on what customers truly need, and she does so while making sure that the customer is heard while calmly and assertively steering them towards the best usage of Coupa's platform. For our second core value, focusing on results, Nicole Romoli was recognized by our peers. Our colleague commented on her ability to anticipate what the sales team needs to be effective and get in front of problems before they arise. Finally, Sophie Enhoraz demonstrated our third core value, striving for excellence. Sophie is a great example of the success that can be achieved in a remote work environment. Having joined the company after the beginning of the pandemic, she was able to quickly forge deep relationships with her colleagues while delivering meaningful results from products to processes to communication. Before finishing up, I invite you to our Coupa Smarter Together virtual event that we'll be hosting on June 15th. It takes at least two like minds to make things go right, which is why it will also feature Accenture's CEO, Julie Sweet, and our special guests from IKEA, Procter & Gamble, and Ferguson. We all know that digital transformation is accelerating. During the event, we'll discuss how Coupa's business management platform provides a new model for this transformation. We'll cover a host of timely topics, including sustainability and the application of community intelligence in making us all Smarter Together. I invite you to join us. To close, from a broader perspective, it's clear that demand for our offerings will continue to grow at a rapid pace. The mega trends I spoke about are certainly not going away. In fact, they are becoming more pronounced. We see ample opportunity to solve a myriad of problems in our expanding market. Companies are depending on us to meet the moment, and meet the moment we will. Never bet against us. Given our position, we have the clear opportunity to extend our leadership in the marketplace and win the BSM category over the long term. We'll do so by continuing to focus on our strategic vision areas spelled out in the letters of our name, Coupa: comprehensive, open, user-centric, prescriptive, and accelerated. We will do so by executing relentlessly. Before I turn the call over, let me congratulate Todd Ford on his promotion to President of Finance and Operations. Todd is an integral member of our executive leadership team and plays a key role in guiding the growth of our business and our operations. I'm excited about our continued journey to build one of the world's best enterprise cloud software companies. Let me also congratulate Tony Tiscornia on his promotion to Chief Financial Officer of Coupa. Having been with us for over eight years, his impact on our business has been immeasurable, and he has been a foundational member of all our capital market activities. With that, let me hand the call over to Todd. Thanks, Rob, and good afternoon, everyone. As Rob noted, we began fiscal 2022 by delivering strong results for the first quarter. Although the global business and economic environment is not yet back to pre-pandemic norms, with many employees in the global economy still working remotely and business travel still largely on hold, we continue to see signs of improvement in Q1, and we expect this trend to continue during the year. Transforming Business Spend Management has become a critically important objective for leaders who realize they need to build long-term agility and resiliency in their organizations. The significant investments we made during the pandemic and our clear leadership position in BSM leave us uniquely positioned to partner with these customers for success. Let's now review our Q1 results. Q1 was a strong quarter across the board. Calculated billings were $149 million, up 46% year-over-year, driven by continued steady improvement from a go-to-market perspective coming out of the pandemic, combined with strong execution from both our enterprise and mid-market teams. The billings contribution from LLamasoft for Q1 was approximately $18.5 million. This $18.5 million represents all LLamasoft billings for the quarter, including new business and professional services. Total revenue for Q1 was $167 million, up 40% year-over-year. Subscription revenue was $140 million, up 33% year-over-year. Given the impact from the pandemic last year, revenue growth will naturally lag billings growth. Turning to gross margin, our first quarter non-GAAP gross margin was 69%, well above our guidance of 65%-66%, but still below historical norms of 70%+ as we continue to focus on synergies from the LLamasoft acquisition. As we noted last quarter, given the size of LLamasoft, we expect to experience meaningful gross margin pressure for approximately all of fiscal 2022. Let's look at our Q1 results of operations. Our first quarter non-GAAP operating income was $7 million, or 4% of total revenue. Non-GAAP net income was $5 million, or 7 cents per share on approximately 77 million diluted shares. Cash at quarter end was $600 million, a slight decrease from $606 million at the end of last quarter. During the quarter, we paid approximately $45 million in net cash for the acquisition of Pana, which was an all-cash deal. This was almost completely offset by cash generated from the business. Q1 operating cash flows were $32 million, adjusted free cash flows were $30 million. We also generated approximately $13 million of cash from financing activities. Q1 was a strong quarter across the board. While Q1 is typically a seasonally lighter quarter, our new business more than doubled compared to the same period last year. We continue to pursue winning this market assertively with a strategy of disciplined growth. Looking at the rule of 40 on a trailing 12-month basis ending Q1, we delivered 58%. As previously stated, we define rule of 40 as revenue growth rate plus adjusted free cash flow margin. With Q1 in the books, as we look forward to the future, let me briefly review some of our recent organizational changes. As Rob noted in his prepared remarks, I'm excited to be taking on the new position of President of Finance and Operations. In this capacity, my role will expand to other strategic areas of the business, including but not limited to Coupa's international operations and Coupa Ventures, which was announced last week. Part of my responsibility will also, of course, be to support Tony in his new role as CFO. Most of you on the call know Tony quite well, having interacted with him frequently since Coupa's IPO in 2016. Now it is with great pleasure that I pass the call over to Tony Tiscornia, CFO of Coupa Software, who will provide guidance. Congratulations, Tony. Take it away. Thank you for the kind introduction, Todd. Congratulations to you on your new role as well. I look forward to continuing our work together on many fronts. For those on the call, I've worked closely with many of you over the last five years, and I look forward to our continued interactions in my new capacity as CFO. For those of you I have not spoken with, I look forward to meeting you soon. With that, let's turn to guidance. Let me begin by laying out some of the background for our Q2 and full-year outlook. First, as Todd noted earlier, and as evidenced by our Q1 results, the economic environment is continuing to improve and head towards post-pandemic normalcy. With many employees in the global economy still working remotely, the continued absence of business travel, and the uncertainty posed by potential variants, we're clearly not out of the woods quite yet, and many customers and prospects continue to operate with some level of caution. We expect it to be a few more quarters before returning to historical norms, we're happy to see things trending positively. As Rob noted, we entered Q2 with our largest pipeline ever, positioning us well for the balance of this year. Our guidance once again assumes no billings or revenue contribution for Q2 or the full year from Coupa Travel & Expense. We anticipate that business travel should begin to recover in the back half of the year. Moving on to Coupa Supply Chain Design & Planning. As you know, our strategy is to align the legacy LLamasoft business model with Coupa's, optimizing for long-term success. This is undoubtedly the right strategy for our business, but we'll continue to create near-term headwinds in our financial results until the transition is complete. Success in executing on this plan will cause supply chain revenue to be lower for all of fiscal 2022 and most of fiscal 2023. As a reminder, there are three items causing this impact. Number 1, converting term license contracts to SaaS. Number 2, transitioning professional services work to partners. Number 3, the impact of the 50% opening deferred revenue haircut from Q4. With these considerations as the backdrop, let's get into the numbers. We expect total Q2 revenue to be $162 million-$163 million. This includes subscription revenue of $142 million-$143 million, and professional services revenue of approximately $20 million. For calculated billings on a trailing 12-month basis, we expect to exit Q2 at a year-over-year growth rate of approximately 39%. We expect a Q2 non-GAAP gross margin of approximately 66%. The lower Q2 gross margin is attributed to several items, including our expectation that we will have success converting supply chain term licenses to SaaS and professional services arrangements to partners, as well as continued efforts on synergy alignment. We expect a Q2 non-GAAP operating loss of $2 million-$3 million, and a non-GAAP net loss of $4 million-$5 million, resulting in a non-GAAP net loss per share of 5 cents-7 cents on 73.5 million weighted average basic and diluted shares for the quarter. We expect Q2 adjusted free cash flows of approximately $5 million. For the fiscal year ended January 31, 2022, we expect total revenue of $681 million-$684 million. This includes subscription revenue of $591 million-$594 million, and professional services and other revenue of approximately $90 million. This full year guidance reflects our assertive assumption that we will be successful in converting legacy LLamasoft term license contracts to SaaS. The interesting dynamic is that to the extent we are not successful with these conversions, our revenues will be higher. Moving down the income statement, for fiscal 2022, we expect a non-GAAP gross margin of 66%-67%, a non-GAAP operating loss of $2 million-$7 million, and a non-GAAP net loss of $10 million-$15 million, resulting in a non-GAAP net loss per share of 14 cents-20 cents on 74 million weighted average basic and diluted shares for the year. We reiterate our expectation that adjusted free cash flows will be up on an absolute dollar basis year-over-year for fiscal 2022. That concludes our prepared remarks. We'd now be happy to take your questions. Operator? Thank you, Mr. Tiscornia. Your first question comes from the line of Stan Zlotsky from Morgan Stanley. Your line is open. Perfect. Thank you so much, guys. Congratulations to both Todd and Tony on your new roles. Very well deserved for both of you, gentlemen. Question from our end. Can you just walk us through the outperformance that you saw in the quarter from LLamasoft? Obviously, a very strong result there, $18.5 million contribution versus a little under $10 million, I think that you guys were guiding to for the quarter. What drove that, and is it fair to say that some of that outperformance came from licenses components of LLamasoft, and that's why that drove the big billings beat in the quarter, and maybe the guide for the year is not going up as much as a result? Sure, Stan. Good to hear from you. Let me just take a step back and look at LLamasoft in a broader context. I think what we're seeing proudly is our overall strategy and our M&A component of that strategy is working, and it's working really, really well. We've been able to really create a machine here for integrating acquisitions from all areas of people, process, and technology. Coupa Supply Chain Design & Planning is certainly no exception to that. I will tell you, looking forward, if you just look at our pipeline, we have nearly 2 dozen opportunities that are going in both directions as part of our cross-sell effort. There's clearly a great interest in a unified Business Spend Management suite. Now, when we look at Q1, there are numerous deals that closed and closed at higher price points due to that synergy. That included our overall platform as well as Coupa Supply Chain Design & Planning as a part of that. Stan, let me touch on the full-year guide, which you mentioned as part of your question. This is Tony. Of course, Q1 was a really strong quarter to kick off the year. While we're seeing an increasingly positive trend, we're still going to operate with cautious optimism, which is reflective of our DNA as a company. Most employees in the global economy are still working remotely. Business travel really hasn't restarted, so there's not much face-to-face interaction between businesses. Another thing you mentioned, that you called out, is that we did have several million of dollars LLamasoft license revenue in Q1 that didn't convert to subscription. The majority of the conversions we tried to make in Q1 were successful, but there was some. As you know, our full-year model incorporates a pretty assertive assumption on making those conversions. To your point, not having converted some of these in Q1 will, to some degree, reduce subscription revenue in the out quarters for the year. Your next question comes from the line of Brian Peterson from Raymond James. Your line is open. I'll start by saying congratulations to Rob and Tony. Sorry, to Todd and Tony. Geez, I need some more coffee. Todd, maybe one for you. Just on the venture side of things, I'm curious, as you think about getting swim lanes for BSM, is that opportunity going to focus more on what's in the existing swim lane today or maybe thinking about a broader platform and building out maybe adjacencies or forward-looking things? Anything you can comment on there. Brian, let me actually take that. This is Rob. The idea is absolutely adjacencies and not common swim lanes. We have this really core belief at Coupa that we want to focus on what is truly our core competencies. We're not trying to step into other places where we can't leverage those core competencies. But at the same time, we're completely committed to building a large Business Spend Management ecosystem. We've been strengthening partnerships in periphery Business Spend Management areas for quite a while, and we plan to continue doing so. This vehicle of Coupa Ventures that they'll be partnering with Todd on is another way for us to broaden that reach, and most importantly, deliver more and more meaningful value to our customer community, which is exactly what this is all about. The next question comes from the line of Chris Merwin from Goldman Sachs. Your line is open. Okay, thanks so much for taking my question, and let me pass along my congrats to both Todd and Tony as well. I wanted to ask about the transaction monetization opportunity for Coupa Pay. I think the last update we had, there were around 200 customers. Just to make sure I understand, are they all paying transaction-based monetization fees today? Are you able to give us a rough sense for the size of that revenue stream relative to subscription? Thanks. Sure, thanks. Let me first say that in the broadest terms, when we look at Coupa Pay, we're definitely executing to the arc where we've been wanting it to grow for some time, and there's no question about that. That's clearly seen in, first of all, that it's the fastest-growing new module that we ever had as a company. We're now up to about roughly 240 customers. I also mentioned in my prepared remarks that we had just in this last Q1, over a 30% attach rate with Coupa Pay. What we're seeing, to your question, is that customers are taking a thoughtful and methodical approach to ramping transactional spend. The mix of both recurring subscription and transactional spend continues to be one theme. We look forward to sharing more about that with the group at our coming Analyst Day as well. Your next question comes from the line of Siti Panigrahi from Mizuho. Your line is open. Oh, hi. I guess Siti Panigrahi. Yeah, thanks for taking my question, and congratulations to both of you. I wanted to ask you about the BELLIN acquisition, and how successful have you been cross-selling BELLIN to your customers in the U.S.? It would be helpful, how much was the contribution from BELLIN this quarter? Well, I can tell you that without question, the treasury area is becoming more and more pronounced, much like the broader areas of Business Spend Management. The customer is trying to figure out how to best manage spend in this environment. We're seeing customers joining us globally at different speeds and at different ramps, but joining us globally to address their treasury issues. That as well still feels very much in early stages of where we're going to be taking it in coming years. This is Tony on the financial contribution question. As you guys know, we've had BELLIN now Coupa Treasury for over a year, and the financial contributions from that has been fairly consistent. We're not going to break that out at this point. Your next question comes from the line of Michael Turrin from Wells Fargo Securities. Your line is open. Hey there. Thanks, and good afternoon. I'll both echo my congrats and then just ask the question around it too. Todd, in moving over to President, bringing Tony up to CFO, I think we're familiar with the both of you for quite some time, but what does that help open up from an organizational perspective? It sounded like there was some commentary around international and maybe more focused efforts there, but would just be great to hear more around the rationale from an org perspective and what that helps enable for Coupa. Yeah, it really enables me to spend time executing on operational initiatives and tight partnership with Rob and the other leaders at Coupa. International is certainly one area, Coupa Ventures, but there's many other strategic things that we're working on here that it frees me up to really go move the needle from an operational perspective that drives long-term shareholder value. Very much in partnership with Rob, the executive team, and the broader leadership team at Coupa as well. Your next question comes from the line of Terry Tillman from Truist Securities. Your line is open. Yeah. Can you hear me okay? Yes, sir. All right. Yeah, thanks for taking my question, and I will also echo everyone else's congratulatory comment, Todd Ford and Tony Tiscornia. My question just related to, I don't know if it was from Todd Ford or Rob Bernshteyn, maybe I need some coffee too, but it was a great comment about new business was doubled year-over-year. What I'm curious about, and maybe we could bring Tony Tiscornia into this as well, you all gave guidance for how to think about TTM billings, I believe. What is the progression on new business bookings as you see it going into Q2 and Q3 and then Q4? Do you think you're still just kind of going along, just a moderate improvement in Q2, Q3, and then there's more of a seasonal big uplift? Any way to frame how you could see this new business bookings part of the equation continue to improve? Thank you. Thanks, Terry. Well, look, I would say conditions in general continue to improve steadily. I mean, we're trending positively here, hopefully fully coming out of the pandemic, right? We continue to be really thoughtful in terms of our investments, in our people, in our platform, while remaining disciplined as you've come to expect from us. Thoughtful growth, disciplined approach, mindful of cash flow and profitability, at the same time attacking what is a really big total addressable market. I think one of the biggest themes that we're seeing is that true cloud is really starting to hit what I would call a critical mass as far as unpacking the back office. When we got this company going over a decade ago, that was one of the big hypothesis we had, is that we will be able to go into that back office, begin to unpack the back office with key use cases, and then create a unified platform that really pulls them together in a way that's going to drive incredible value for customers in every area. From supply chain, from transactional spend, in every business spend, to treasury and other areas we touched on. I can tell you, we feel that there is strong momentum coming out of this pandemic, and we feel really well-positioned going forward as you think about the coming quarters and the coming years. Your next question comes from the line of Brent Bracelin from Piper Sandler. Your line is open. Thank you. Good afternoon. I was hoping to drill down on the enterprise activity in the quarter. If I look at billings growth overall and billings ex-LLamasoft, you saw some moderation there again this quarter. You did talk about kind of a record pipeline. Could you provide additional color on the pipeline build in Q1? Any signs that large deal pipeline starting to come back yet with the reopening? Are you seeing any early signals that enterprise sales cycles could begin to shorten here? Do we have to wait a couple more quarters to see early leading signals that things comes back? Yeah, no, great question. Well, first let me say, we have the largest pipeline we've ever had going into Q2. I mean, there's no question about that. We're clearly seeing strong and increasing customer as well as prospect engagement. Our average recurring revenue per deal has gone up now every quarter, virtually every quarter for 49 quarters. That includes obviously a wide mix of mid-market customer and a lot of mid-market customer volume. That's part of that, right? It continues to be a healthy mix. Many of the largest deals that we were seeing when COVID hit and maybe were slowed down are starting to either come to fruition or into those late stages of the pipeline. It feels quite healthy. I have to say at the same time, we're exiting the pandemic. We're on what I would call hardening firmament. That firmament is not rock solid because of questions around the pandemic. We continue to be thoughtful in the way we plan and invest and run at what is just clearly an incredible market and an incredible opportunity. Yeah, the one thing I would add, too, when you look at the year-over-year comparison for Q1, obviously last year was pandemic or at least starting to come in at the end of Q1. We also had a benefit last year of about $7 million-$8 million because two years ago, we had our strongest May ever, and we built 30 days in advance. That is one thing that impacts the year-over-year comparison as well that I'm not sure people remember. Your next question comes from the line of Brad Sills from Bank of America Securities. Your line is open. Oh, great. Thanks, guys, and congrats on a nice quarter. Congratulations, Todd and Tony, on your new roles. I wanted to ask about the spend under management metric. It looks like it had a nice sequential increase, $2.6 trillion. I think we're about $2.3 last quarter, so incremental about $300 billion. I think normally you see a sequential downtick Q4 to Q1 in that metric. I guess my question is that the right math? Are we seeing a change there? And what's driving that, and what kind of a leading indicator is that metric for the business? Sure. That's a great question. I think that's roughly the right math that you described. Yes, now at $2.6 trillion. When you zoom out, it is of course very strongly correlated to customer value. It's correlated to ongoing growth, from a revenue perspective, et cetera. It has bumps here and there based on go lives, staging of go lives, existing customers expanding. To really understand that metric, it's worth stepping back to look at maybe 3 to 4 quarter and annual arc to really understand how that's going. It's very healthy. It's a great sign of adoption, and it's really the one we share with all of you. There are many more adoption and engagement measures we look at. Those two look very promising in terms of our ongoing development of the business. Your next question comes from the line of Alex Zukin from Wolfe Research. Your line is open. Thank you. Hey, guys. Rob, maybe for you, when you think about the momentum in the business coming out, clearly we've talked about a pipeline out for some time, are you starting to see the enablement of more strategic conversations around supply chain start to drive up ARPU or conversations around expansion activity? Maybe for Tony, any chance we could get the RPO or CRPO numbers or just a general sense around the net expansion metrics so we can calibrate some of the bookings momentum? Alex, thanks, and congrats on your new role as well. I could tell you that the conversations around supply chain design and planning that I've personally had over the last six months really are at a different level than we've historically had as a company, which I find to be incredibly promising. There's not one executive I've talked to that isn't thinking about how to simply apply information technology to the problem of effectively plan and design how they spend money and how to manage their supply chain, right? What we are seeing, as it pertains to our business, is that the vision of having these capabilities, operational procurement and supply chain design on the front end, and the ability to drive sourcing events based on design plans, is something that they really want. It's something that they're willing to pay us fairly for. If you look at, again, Q1, there are numerous deals that we closed, frankly, at far higher price points due to their awareness of the current synergy and the anticipated integration synergy of our platform. I'm really excited in particular about our September release, which is dedicated to suite synergy. That's going to unlock even more of that on the ground for our customers. Thanks, Alex. On RPO, tomorrow we'll file our 10-Q. The number that we'll be disclosing there is $973 million of RPO exiting Q1. From a gross renewal and dollar-based expansion perspective, our results this quarter were pretty much exactly the same as last quarter. Flat quarter-over-quarter. Typical historical range. Your next question comes from the line of Matt VanVliet from BTIG. Your line is open. Yeah, thanks for taking the question, and congrats on the new roles, guys. As you look at the back half of the year here from a pipeline perspective, and projecting out what business travel and maybe T&E budgets overall look like, I guess how much upside is there potentially from seeing a little bit more of an earlier return than you're currently anticipating? Are you getting any commentary from customers that want to do an implementation all at once and would like to wait and see when their T&E budgets are coming back to include that in a broader BSM upgrade cycle? Well, we're definitely seeing a dynamic of accelerated digital transformation, where customers are looking to do not only multi-modules in tandem, but in many cases, frankly, utilizing Coupa and the savings we can deliver for them from our transactional spend to actually pay for some of the other initiatives that span beyond Business Spend Management. Certainly in the travel area, look, we anticipate obviously an increase in business travel in the second half towards the tail end of the year. We're particularly excited about the new T&E offering we're going to be taking to market by the end of the year. We hope to capitalize on that not only this year, but obviously in coming years for sure. Your next question comes from the line of Joseph Vafi from Canaccord. Your line is open. Hey, guys. Good afternoon. Congrats to Tony and Todd, and I guess Rob, so you don't feel left out, congrats on the quarter. Rob, I think I heard in your prepared, it sounded like a pretty big statement, and I don't want to hold your feet to the fire. It did sound like you said you expect ultimately that almost all your customers would adopt the pay module, and I was wondering what your thoughts are behind that statement. Thanks. Sure. Well, look, first of all, if we just look back, as I mentioned, over 30% attach rate in just Q1 is very promising. What's promising is the interest in all areas that we've already taken to market around Coupa Pay. Virtual credit cards, we're seeing really good adoption of that, particularly in enterprise. It was the first capability in Pay we launched. Dynamic discounting is being uplifted by customers. We also, of course, have the core of Coupa Pay, which is invoice payments, where we're seeing good adoption in mid-market and moving up to larger companies as we continue to develop that offering. Our hope is that every customer is going to use every one of our modules that we have today, and ones we'll develop in the future as part of an integrated Business Spend Management platform. That's what we're working on day in and day out. Your next question comes from the line of Daniel Jester from Citi. Your line is open. Great. Thanks. Congrats. Thanks for taking my question. I just wanted to see if you could expand on your comments about supply chain fragility. Maybe this is off of Alex's question a bit as well. I guess first, is this indirect or direct procurement which folks are focused on? Then secondly, for the customers that you're speaking to, who is leading this transformation within the organization? Is this being run out of a procurement office, or is it coming out of finance or operations? I ask because if it's being led in other parts of the organization, how do you make sure that Coupa's at the table as these teams build or rebuild their supply chains? Thanks. No, those are great questions. First of all, we're seeing it both in direct and indirect, and in the intersection of direct and indirect. The most obvious example of indirect is PPE equipment, obviously, and a host of other areas of categories of spend. We're definitely seeing that, obviously, on the direct side, the need to create different scenarios for supply chain design to react to very quickly shifting needs for different suppliers, given the lack of access to existing ones. We're seeing it on both sides. In terms of the buying center, it still tends to be within the CFO, or certainly touches the CFO, and very often begins to touch the head of supply chain for an organization or head of operations. We're having those conversations. What's most exciting is that we're seeing these more and more sponsored by CEOs who realize that the unpacking of the back office is underway, and the tools and capabilities they have in their back office are really subpar based on their digital transformation agenda. Not only being able to go in there and offer a key component of digital transformation, but also being able to save them a lot of money quickly so they can actually pay for more of it, is really a double win that we're seeing them take advantage of, and we're in front of it. Your next question comes from the line of Peter Levine from Evercore ISI. Your line is open. Great. Thanks for taking my questions. We'll echo the congrats to both Tony and Todd. I guess, Rob, to touch upon your prepared remarks on LLamasoft, what's the decision for some of these customers to not transition and perhaps stick with license? What are you doing now to encourage or incentivize these customers to switch? Then second, what's the opportunity, I guess, to leverage the partner ecosystem to perhaps maybe accelerate the cloud transition? Thank you. Great questions. Well, first of all, we're having very strong success thus far, I would say, converting customers from their term licenses to SaaS, but we're doing that upon renewal. That's the time to do that. The move is happening, it's not so much a stick, it's much more of a carrot. The cloud offering is incredibly robust. It's incredibly configurable. It's incredibly easy to use, and it takes advantage of the same core data model that they've been used to in their on-premise offering. That's a really wonderful thing. In terms of the partners, you bet. I was just on a call this morning with some of the most senior folks at one of the largest, if not the largest systems integrator in the world, talking about the army of systems integrators we're going to continue to certify on utilizing this offering to address the supply chain design and planning opportunity. Right on with that question. Your next question comes from the line of Bob Napoli from William Blair. Your line is open. Thank you, congratulations to Todd and Tony. If you're just going into the investor day, just wondering if you're going to give any updated thoughts on midterm targets. You've had targets out there, you've made quite a few very large acquisitions, or larger than you have historically. Maybe just a focus of the investor day, I know Coupa Pay is part of it, and then any thoughts that you might introduce around medium or midterm or long-term targets. Certainly. One of the things we've prided ourselves on here at Coupa is being consistent, and we fully intend to give mid-year and long-term targets updated as we have in our past two Analyst Days that we've done since going public. As you noted, of course, there's been a lot of activity here, exciting on the business front. For Coupa Pay and other important aspects of the business, we will have a healthy list of updates for folks. Your next question comes from the line of Ryan MacDonald from Needham. Hi, thanks for taking my question, and congrats, everyone. Rob, I wanted to ask you about sales productivity and how you're feeling about that, especially as things are reopening. You mentioned earlier in the call in your prepared remarks that business travel has obviously not quite come back yet. As you're looking at your pipeline and what's flowing through and progressing through that pipeline, how are you starting to think about your sales reps and how you're going to offer, say, a hybrid approach between virtual and in-person, to try to maybe push things through the pipeline more quickly? Thanks. Sure. Well, number one, without a doubt, the number one priority is the safety of our people and then the safety of any of the customers or prospective customers we'd be visiting. That guides anything and everything we do. Secondarily is, the second guiding principle is flexibility and the thoughtfulness of entrusting our colleagues to make the best business decisions for our business and balance with their needs. We've already made some exceptions around business travel. At the same time, as the coming months progress, we'll of course look to make those more flexible and actually begin a process of broader reentry for our colleagues here. Likely to be something like roughly 25% or so during the summer, and then getting to roughly 50% as we start the fall. All of that is of course pending what happens with the pandemic and of course, in accordance with local regulations and local requirements around the pandemic. Your next question comes from the line of Andrew DeGasperi from Berenberg. Your line is open. Thanks for taking my question. I wanted to ask one on competition. Specifically, one of your competitors last week launched a network for businesses, and they also made some enhancements to their travel and expense product. Just curious to know if you have any comments on that. Generally, are you seeing the competitive landscape becoming more intensifying at this stage, or is it similar as it was in the past? I would say, as I've said since 2016 in our first earnings call, the only competition we have in this market is ourselves. There's a whole host of players trying to do a whole host of different things. We're pursuing a vision of helping companies optimize every dollar that they spend, helping them see the Business Spend Management vision that we have aligned with it, and get incredible value in working with us. We're incredibly proud of what we've been able to achieve for now thousands of customers in that area. We think it's green light ahead to push as hard as we can and as thoughtfully as we can into building our way into this huge TAM that we're embarking on. Nothing's changed, and nothing's really concerning us around the ecosystem that you talked about. Your next question comes from the line of Steve Koenig from SMBC. Your line is open. Hi, thank you very much. I rarely do this, but I'm going to ask a two-part question this time. First one is, did you guys, I wasn't sure, did you reiterate the $30 million-$35 million in LLamasoft revenue contribution and $10 million pro serv for the year? Can you just provide us a little more color on, I got the $18.5 million in billings from LLamasoft, but how did they do revenue-wise and also billings-wise relative to your expectations? If I may, I just wanted to toss one in for Rob. Inflation in the supply chain, are you seeing any sort of impact on your sales motions, positive or negative, any differential impact on verticals and else out there? Thanks very much, guys. Thanks. Could you just repeat that? Did you say different vertical approaches to supply chain? I didn't hear all the question. Inflation that is starting to tick up. How are you seeing that reflected in your customer conversations? We're seeing that, but much greater than that is we're seeing their incredible awareness that where they were operating from a supply chain perspective was incredibly inefficient as compared to where they could be. Agile, non-agile, many customers who are doing supply chain designs and plans that were two to three years out without the ability to course-correct based on changing dynamics. They're just revisiting that entire sector of their organization and saying, "How can we do this better?" What they're discovering, with no joke, are analysts largely using spreadsheets or really outdated approaches to this. When we're able to go in there and model for them a literal digital twin of what could be with various different scenarios and applying AI that can take into account third party as well as external data feeds to figure out how to create a supply chain for the future before any truck gets on the road, before any product gets produced, before any bill of materials goes to sourcing, they're awakened to the opportunity here. We're right there in front of them with an incredible platform. As mentioned earlier, a developing ecosystem of systems integrators with best practices and advice that can use this platform to help them. We think we're in a really unique spot. Let me touch on your question about the revenue contribution and the guidance pertaining to Coupa Supply Chain. Of course, as Rob noted, we're working to win a big market, and internally, we don't track acquired entity financial statements independently once they're integrated. We sell Coupa as one integrated platform, and we manage our financials that way as well. As you noted, we did provide the all-in billings number for LLamasoft for Q1 in our prepared remarks. Billings is really right now the cleanest metric to share given the transition we're working on in the LLamasoft revenue model. Really, billings is typically the best indicator of where the business is going. I'd add, clearly our M&A strategy seems to be working. As we increase the breadth and depth of our platform with a mix of organic development and M&A, our average deal sizes continue to increase over time. We position ourselves as the dominant leader in the market. With respect to revenue, to guidance, excuse me, our guidance includes all the things known to us at this time. Granted, our guidance is based on a desired outcome we're trying to achieve, and we're making the assertive assumption that we will successfully and rapidly convert term licenses to SaaS and shift professional services to partners. There's a possibility revenue comes in higher if it takes more time to execute this transition. Yes, we're applying the same assertive assumption in our full-year guide. If you look at the guidance, the subscription revenue we passed through. There was some more term licenses that went into professional services and other. That obviously increases revenue in Q1 by a few million dollars. On the flip side, it reduces the subscription revenue in the out quarters. If you look at the professional services and other guide, that is really, as Tony just mentioned, the desired outcome. We don't want to put higher numbers in that line item from a guidance perspective, because quite frankly, we don't want them to convert to term licenses, and we do want to push as much as we can to the partners out there. That's why you've seen from a guidance perspective for the year that the professional services is basically flat because of the outcome we're actually trying to achieve, which is in the best long-term interest of shareholders. At this time, there are no further questions. This concludes the conference for today. We do thank you all for joining us.