GAAP TO NON-GAAP RECONCILIATION (CONT’D) Q1 FY'17 Q2 FY'17 Q3 FY'17 Q4 FY'17 Q1 FY'18 Q2 FY'18 FY 2017 GAAP Research & Development $7,840 $7,206 $7,179 $8,037 $9,171 $10,720 $30,262 Amortization of acquired intangible assets $0 $0 $0 $0 $0 $0 $0 Share-based compensation expense $322 $303 $357 $784 $1,152 $1,647 $1,766 Non-GAAP R&D expenses $7,518 $6,903 $6,822 $7,253 $8,019 $9,073 $28,496 % of Revenue 26% 22% 19% 19% 19% 20% 21% GAAP Sales & Marketing $15,836 $19,252 $16,315 $17,159 $20,679 $23,812 $68,562 Amortization of acquired intangible assets $0 $0 $0 $0 $0 $189 $0 Share-based compensation expense $471 $441 $937 $1,282 $1,600 $2,340 $3,131 Non-GAAP S&M expenses $15,365 $18,811 $15,378 $15,877 $19,079 $21,283 $65,431 % of Revenue 53% 60% 43% 42% 46% 48% 49% GAAP General & Administrative $5,553 $4,620 $6,068 $7,865 $8,177 $9,430 $24,106 Litigation-related costs $123 $26 $1 $0 $0 $0 $150 Share-based compensation expense $653 $566 $785 $1,064 $1,607 $2,406 $3,068 Non-GAAP G&A expenses $4,777 $4,028 $5,282 $6,801 $6,570 $7,024 $20,888 % of Revenue 16% 13% 15% 18% 16% 16% 16% GAAP Operating Profit ($12,064) ($11,427) ($5,497) ($6,436) ($10,387) ($14,359) ($35,424) % Margin (41%) (37%) (16%) (17%) (25%) (32%) (26%) Non-GAAP Operating Profit ($10,014) ($9,630) ($2,900) ($2,325) ($4,624) ($5,743) ($24,869) % Margin (34%) (31%) (8%) (6%) (11%) (13%) (19%) Operating Cash Flows (10,226) 2, 507 ( 2,825) (10,411) 7, 160 9, 178 (20,955) Investing Cash Flows ( 1,386) ( 1,070) ( 1,044) ( 7,741) ( 1,353) (40,038) (11,241) Less: Acquisitions - - - ( 6,750) (140) (38,933) ( 6,750) Free Cash Flow (FCF)* (11,612) 1, 437 ( 3,869) (11,402) 5, 947 8, 073 (25,446) % Margin (40%) 5% (11%) (30%) 14% 18% (19%) * Free cash flow is generally calculated as cash flow from operating activities plus cash flow from investing activities. As illustrated above, the Company excludes the impact of acquisitions when reporting free cash flow. ©2017 Coupa Software, Inc. – Confidential – All Rights Reserved 42