 From London, England, it's theCUBE! Covering Coupa Inspire 19, EMEA, brought to you by Coupa. Welcome to theCUBE, Lisa Martin on the ground in London at Coupa Inspire 19. Very pleased to welcome back to theCUBE the CEO and Chairman of Coupa, Rob Bernstein. Rob, welcome back. Thank you so much, thank you for being with me. It's great to be here. So we are in with all of these customers and partners. This has been busy all day. You started things off today with a great keynote. I was telling you before we went live, I lost count of how many big customer examples were sprinkled and I say infused throughout your keynote. Let's look at some numbers. Coupa just keeps doing this. Five X increase in spend under management since 2016. It's only three years. You guys have thousands of customers, five million suppliers on the platform, lot of growth. What are some of the key drivers to this great growth that you're seeing? Well, a couple of things. I mean, first of all, this is a huge, total addressable market. Yes. Every company in the world could do a better job with the way they manage their business spending and they could use information technology, hopefully from Coupa, to help make that happen. And we are so proud to cultivate this community of like-minded, thoughtful professionals that want to apply best practices, best in class modern technology solutions like the ones we offer, obviously, to drive quantifiable, measurable outcomes for the companies that they work for. And so in many ways, this is a celebration of our customer community and it's just a wonderful opportunity to be with our customers here like this every year in Europe and every year in the United States and now, frankly, in lots of other places around the world. So one of the themes that was also expressed during the keynote was Rachel Botsman's theme of trust. When I think about the open community, the open platform and the community that Coupa is building, there's a lot of earned trust there that Coupa has earned from this growing community. Talk to me about what that means to you and the whole team and how is it influencing the direction that Coupa is going in? Well, it means a lot to me personally, frankly. The O when Coupa stands for open and that means not only technically open in terms of APIs and integrations, but it means open in spirit. Open in dialogue, honest, transparent communications. You know, I feel that our industry and enterprise software has a legacy or history of a lot of PowerPoint and a lot of demos, but frankly, quite a few failures of large scale deployments and a whole host of sectors. And we want to be part of the solution. We want to have an open, authentic, honest communication with our customers, with our prospective customers and the sales process, with our partners, with all of my Coupa colleagues. So we could avoid the friction and nonsense of politics that often gets in the way of driving measurable, meaningful value for every constituent. It's a very, very important thing to me. It's important to my team. And that's something we're doing our very best to cultivate in this Coupa community that we're creating. Speaking of cultivation, Coupa is cultivating this category of business spend management. Tell us a little bit more about that and where you are with that. Sure, well, so look, business spend management is a pretty straightforward, you know, three words to describe the fact that our buyers and our customers are responsible for literally trillions of dollars and pounds and dollars and euros of spend all over the world. And as information becomes more and more transparent, the buyer, the one who's responsible for that spend, becomes more and more powerful. So we sit on the side of that buyer. We give them information technology solutions from sourcing to inventory management, to spend analytics, to procurement, to expensing, to invoicing, to payments, to supplier performance. All the capabilities needed to help them make the best purchasing decisions for their organizations and help their companies become more profitable. So that every one of these Coupa community customers we have here could get more bang for their buck and be that much more operationally efficient, frankly, in driving their own company's visions and missions and whatever it is that they bring to the world. And that's very aspirational for us and we're excited that so many have come on board with this establishment of the business spend management category with us. So if we look at the pipe, as you were calling it this morning, PIPE, Procure, Invoice, Pay, Expense. That's right. And memorize that. That's right. You've got this one platform that can deliver all of that to this growing community of users who have the ability to get that visibility that is one of the biggest challenges. I was reading some stats recently about the number of businesses, they're the percentages of businesses that don't have complete visibility over their spend. Absolutely. It's high. It's very high. We just did a study of 250 or so CFOs in the UK and they're doing a great job at budgeting and reporting but they have minimal visibility into their supply relationships, especially with what's happening here with Brexit. They have minimal visibility and supply risk, supply chain risk. And one of the ingredients that I think we're very specialized and I'm proud of is the you in Koopa, the user centricity. In order to have visibility into your spend, you have to have adoption. You have to have people purchasing, spending, expensing, paying, processing invoices, everything that you just mentioned through this pipe on one centralized platform with a common UI layer, user experience layer, user interface, common business logic layer, common data model, the use of community intelligence to help you make the best purchasing decisions and spend decisions. So we're really on the forefront of something very, very exciting because this adoption level is happening through this user centricity and it's given these companies control and visibility of spend. And what could be more important to driving profitability, sustained business development? I think we're in a very unique position to help these customers. So is one of the biggest challenges for those, I think it was 96% of those UK financial decision makers that you guys surveyed said we don't have complete visibility. Is it because they have legacy siloed solutions that don't give them that common layer? Or is it because maybe that in a mixture of users just not adopting it because it's not as intuitive to use? Well, it's a number of things. First of all, for every process, whether it's procurement expenses, invoicing, or payments, they have separate systems to your point. Some cases they don't even have systems. They're calling in orders, they're handling paper invoices. So they're at different levels of maturity in each of those four areas. So one is getting them onto a common platform where all of those are orchestrating together. Secondarily, there's an opportunity to create synergy between those areas. So a lot of things that are getting expensed really should be pre-approved and should be routed toward preferential pricing that procurement can negotiate on behalf of users. Many times invoices are duplicate coming in from suppliers, and AP departments are so excited that they pay quickly, but they're not necessarily sure whether they receive the goods and services that they invoices for. So having one common platform, that's the C in CUPA, comprehensive. One common comprehensive platform for all these business processes is critical. Leveraging the synergy of all of them working together is critical, and getting that widespread user adoption is part of the secret formula here. Let's talk about the community. It's big, it's growing. 1.3 trillion in spend managed. And I watched our video back at you and I did a few months ago, it was 1.2. So that was four months ago. And you showed a bar chart today of just the last 12 months. Had to look up this slide to see that. So this community that has the ability to help derive and leverage the insights. Talk to me about the insights and being able to help businesses go from reactive to predictive as a game changer for CUPA. Sure, it's a huge game changer and we really aspire to be, if you will, the tail, the wags, the dog and the enterprise software industry overall. Because the enterprise software industry in effect every customer is on their own island using information technology for a certain business process. What we've done with community intelligence is we've aggregated, anonymized and sanitized data from the customer base and then our distilling insights that we could be prescriptive about. So we could tell our customers and we're telling them, Hey, our community is having challenges with such and such supplier based on literally perhaps millions of dollars or millions of pounds in transactional spend. We recommend you consider this supplier in that same category because our community is having great success with them. The products are being shipped on time. There's no over invoicing. There's no breakage in what's delivered. Those are just some examples. We're helping them think through commodities. A lot of our customers have, you know, for a given commodity they have, you know, 20, 30 different suppliers. We're helping them, helping them think through in their industry. How can they do supplier consolidation that makes sense based on benchmarking across the entire industry? We're helping them avoid supplier risk. We're helping them avoid fraud. We're identifying employees that may be expensing things or doing things that are fraudulent based on the collective intelligence of what we're seeing around the entire world in real time. And we're prescribing actions to be taken before payments go out. So these are just some examples of what we're doing. We're doing things in benchmarking based on community intelligence. We're really just at the tip of the spear of what's possible. And, you know, we've prescribed tens of thousands of, you know, prescriptions in our platform to our customers. Many of them are taking those prescriptions and are making their businesses more operationally fit and more agile, which is something we're very, very proud of. So speaking of those prescriptions, I think the number you shared this morning was 22,000 prescriptions delivered in one year? In the last 12 months, that's right. So we've got to talk about acceleration because we've talked about the COUP, the acceleration, that is one example of that. I also saw that you guys have gotten, customers are doing approvals 30% faster than they were a year ago. You're getting mid-market customers up and running in four months. Large enterprises up in eight months. Talk to me about that acceleration that you guys are achieving. The A in COUPA is about accelerated. It's about learning from our entire customer base and taking those learnings and making them part of best practices based deployments. So we can go faster and faster and faster. We look at a retail customer. We've done dozens of retail customers, large and small. We know how to set up catalogs. We know how to set up workflow. We know how to think through the analytics that they need. So when they get going with a deployment from COUPA, they can get up and running way faster and going back to five or six years ago, we had to think about it from scratch in a blueprint. They can leverage the insight from the community. We're doing that in mid-market. We're doing that in sub-verticals like credit unions, for example. I mean, biotechs, we're doing it in insurance. We're doing it in pharma, whole host of industries. And I think as we learn from every deployment and collect those insights, we're going to be able to drive value faster and faster to our customers. And the other element that's important here is it's not just taking the customer life. All of our customers grow with us. They get more and more value every year. I mean, this is why our renewal rate is so strong and customers add more business with us because they're getting value and that value continues to grow. And that's really what value as a service is about. This is not a, we're not a software company. We're not a software as a service company. We're truly a value as a service company, which is a very different concept than one that we're cultivating in this marketplace. How, what are some of your favorite, I know you love being in front of the customers, what are some of your favorite examples that really show the value that Coupa is delivering to the changing role of procurement, making that girl or guy much more strategic and much more of a partner to the business? Sure, I mean, I shared some examples this morning that I really loved and appreciated celebrating some of our trend setters of what we call spend setters. You look at Zolando, a retailer where, you know, they weren't necessarily going to take them so seriously about savings, but when they went to marketing and said, we can give you a much more bank for your marketing budget so you could reach more potential consumers. Well, of course they embraced that and we gave them a usable opportunity, a usable platform for doing that as similar as Zolando. They engaged. Now they have something like 85% spend in management. When we started working with them, they had zero purchase orders. I mean, everything was the Wild West, right? You look at, I was just speaking to one of our customers at Procter & Gamble just five minutes ago here at the Expo. You know, they've run more than 50 billion pounds of spend through the Cooper platform, 50 billion. That's not easy, but they've done that in just a couple of years with us. And not only do they have visibility to spend, but they're saving, they're routing purchases to preferred suppliers. So the list just goes on and on. I mean, even on our website at cooper.com on the customers tab, you'll see, you know, obviously dozens of customers holding up signs of the real measurable value they're getting from working with us. And that's something that we really take a lot of pride in. That speaks for itself. Last question for you, Rob. Talk to me about the strategic partnerships that Cooper has. I know some news coming out today with what you guys are doing with American Express. Sure, sure. So look, we've entered the payment space and we entered it because our customer community asked us for it. They said, look, if we're procuring goods and services through you, why wouldn't we all, and we're doing invoice and we're doing all of the components of the pipe, why wouldn't we also, you know, go deeper into payments? I mean, help us, because many of them have to log into all these different ERP systems and kick off batch processes. So we went into payments. And in payments, we have a host of partnerships. Now, today we announced a relationship with American Express in the UK and Australia for virtual credit card payments. Now it's very simple in Cooper. Someone needs a good of service. It gets routed through workflow for approval. Once approved, a dynamic credit card number is generated by American Express. The individual makes the purchase and all the reconciliation on the back end is handled by Cooper. All the reporting, the visibility, the insights to price points and category assessments are there and visible. And the company is in a position to fine tune their spend profile. So that's just one example. And we're doing things in dynamic discounting and accelerating payments. We've just launched today in general availability and Ravi will be discussing it tomorrow ahead of business acceleration. We launched our batch payments capability, the ability to do invoice payments in batch along any rail, whether it be banking relationships, whether it be E-check, whether it be credit card, going into one environment and kicking off batch payments without having to wait for all these different ERP systems to take hold. So we're really, in my mind, at the very beginning of addressing a huge market opportunity or proud of what we've achieved so far and particularly proud of the customer community developing around us. And we're excited about the days, weeks, months, quarters and years to come. So you talked about, last question, the big TAM in this total adjustable market. What are some of the core elements to Coupa's path to a billion in revenue? Well look, we're not as exciting to many investors as a hot startup that grows really, really quickly and maybe has some sort of viral component to it. We've been at this for over 10 years. We've grown thoughtfully, we've grown carefully. The growth is fast, 30, 40 plus percent but it's thoughtful and careful. It's one customer at a time. We're careful in how much we spend on sales and marketing. We actually want our customers to choose us rather than us hard selling them and everything. We want the offering to sell itself. We have an ecosystem of systems integrators, now more than 3,000 Accenture, KPMG, Deloitte and others that are certified on deploying Coupa. We're expanding our product footprint. Our customers now use, on average, 4.7 applications for us and they're consuming those applications rather than us sort of pushing them on them. We're expanding globally. We're expanding in terms of the enterprise business and the mid-market business. Our mid-market business is now really at scale and scaling beautifully. It's a beautiful business model. So those are just some of the vectors in which we'll continue to expand. But I think the path to one billion for us is very clear and ultimately comes down to execution, delivering for every customer, making sure they're getting value from working with us year in and year out. And I think before you know it, we'll be on the doorstep of that one billion. Excellent, Rob. Well, it's been a pleasure having you back on theCUBE. Thank you for having theCUBE out here in London. We appreciate your time. Thank you. For Rob Bernstein, I'm Lisa Martin. You're watching theCUBE from Coupa Inspire 19. Thanks for watching.