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With that, I've got lots of exciting business updates from the quarter, so let's dive in. Let's start with our most recent customer go-lives. Our commitments to new customers is to accelerate the value they will generate through the Coupa platform as captured by the letter A in Coupa. We proudly offer a time to value proposition that's simply cannot be matched in our industry, leveraging the expertise and best practices we've found over the last 10 plus years.

Also, our rich ecosystem of trained implementation partners, including Accenture, Deloitte and KPMG and a host of other partners amplifies our ability to get Coupa customers up and running quickly, while also adding leverage to our sales and marketing efforts. In Q1, more than 35 customers went live on Coupa and all but a handful of these deployments were led by partners.

Following our several recent go-live examples, which will give you a sense of our geographic, functional and cross-industry coverage. Campari Group, a major player in the global branded spirits industry recently went live with Coupa in Italy. I had the pleasure of visiting them recently as they share their Business Spend Management best practices with members of our Coupa community at the Campari Museum.

nThrive, who is empowering healthcare for everyone in every community is now live with Coupa BSM in the deployments that included Coupa contingent workforce, the capabilities we've integrated from our acquisition of DCR Workforce. Soon after their five-month implementation, nThrive enabled over a 100 P2P suppliers and more than 60 contingent workforce suppliers as well.

Santos Limited, a leading Australian natural gas developer, went live with Coupa BSM in just under five months as part of a strategic initiative to streamline procurement processes and improve the buyer experience. Even with the complex Oracle integration landscape, the implementation was completed at lightning speed, helping Santos's transition of legacy procurement and contract systems and start bringing its spend under management.

Telenor, a major global telecommunications company recently went live with Coupa BSM in Singapore and Denmark, as part of Telenor's worldwide rollout plan. Supported by KPMG as the implementation partner, Telenor is now extending its rollout of Coupa in Sweden and Bangladesh.

U.S. Concrete, a leading producer of construction materials in major markets across the United States went live in Q1 and is using Coupa to manage spend across the entire company in one single platform. U.S. Concrete selected Coupa to drive both operational efficiency and savings and because Coupa's intuitive platform could easily be adopted by new employees, which highlights the user-centric nature of our platform, also known as the letter U in Coupa.

We're thrilled to now have these and many other recent new members of our communities live on Coupa, driving spend through the platform and creating meaningful value for their businesses.

Now I will talk about new customers. As many of you have come to know about us, our partnership with an organization begins well before they start using Coupa in production. We must first achieve vision lock on the agreed upon success metrics and the value we intend to generate together. Our customers and prospects see that ambition when they look in our eyes. When we signed with a new customer, we roll up our sleeves and get straight to work. In Q1, we partnered with many fantastic new customers across numerous geographies and verticals and we are now working side-by-side with each of them to ensure BSM becomes a key value driver for their businesses.

Some of the new customers we signed in Q1 include the American Red Cross, Arkansas Blue Cross and Blue Shield, Baylor University, Dairy Farm international, Exxaro Resources, Goodwill of Central & Southern Indiana, Kroger, MongoDB, NEC America, Provident Mexico, Wikimedia Foundation, and so many others. We look forward to long and prosperous relationships with these and all of our new Coupa community members as we help them unlock huge amounts of measurable business value for their organizations.

Now, let's move on to discuss progress we made during the quarter on the overall growth, expansion and advancement of our business, which now represents well over a thousand customers globally. To start, cumulative spend under management at the end of Q1 was approximately $1.2 trillion, a lot of money. This represents an increase of more than $450 billion or 60% compared to the end of Q1 last year. As you'd expect, we've continued to leverage the substantial volumes of rich transactional data running through our platform to deepen the value of our offering to our customers, while strengthening our competitive barriers to entry.

Cumulative spend under management is the primary source of fuel for community intelligence and we continue to see strong traction in this area. Our customers are using the prescriptive insights, also known as the letter P in Coupa, that we're delivering to benefit their businesses and a whole host of different ways. For example, Teleperformance, a business process outsourcing company providing omnichannel experiences to customers around the world is using community intelligence to enhance its speed and efficiency. Noting that PO approval cycle times have been flat for several months, Teleperformance use community intelligence to show individual approvers their own approval cycle times versus that of other industry leaders in Coupa and in real-time. They saw a 54% reduction in PO approval time, despite a 175% increase in the number of POs processed, increasing their speed of PO approval is allowing Teleperformance to get needed goods and services to their buyers that much faster.

Another way we're leveraging our community data is with the Coupa business spend index, or Coupa BSI, a leading indicator of economic growth based on the current spending decisions of businesses using Coupa. The Coupa BSI is a behavioral-based index, which was primarily a three-key spend factors, the average rate of spend approval, the average time to approve spend decisions and the average spend per person.

In April, we launched our first ever Coupa BSI report for Q1, which suggests that businesses continue to be optimistic about the growth of the economy over the next three to six months. We look forward to continuing to share insights on what our data suggests in future quarterly publication of the Coupa BSI.

Next, at our Inspire Conference, we're looking forward to sharing a host of details about our latest release, Coupa R24. To highlight just one area, let me touch on Coupa Pay. Now beyond virtual cards for POs and Coupa Accelerate, we will be showcasing our Coupa Invoice payments solutions, representing the open nature of our Coupa platform, as captured by the letter O in Coupa, our Invoice payment solution is designed to support integration, so the underlying partner banking rails and digital check technology desired by our global customer community.

Now, let me also touch another area, global expansion. Along with core enterprise, mid-market, power applications, payments and federal, global growth and the development of international markets is one of our key growth drivers and we remain very excited about the continued traction we're seeing on this front. Last quarter, in Japan, one of our newest markets, we won to milestone deal with the closure of our first major customer in the country, Mitsubishi Health -- Heavy Industries. We're also now -- we've also now closed several meaningful deals in South Africa, after only a relatively short duration since entering the region, including Exxaro, which I mentioned earlier.

Because of this traction abroad, the demand for International Coupa community events continues to accelerate. Our regional symposium events in Australia and Japan, to name a few, have been tremendously successful in connecting hundreds of business spend management community members with one another. Building on this success, this past quarter we held our inaugural Frankfurt symposium, where my colleagues and I welcomed nearly 200 BSM professionals to collaborate with our community. Domestically, we continue to have fantastic events as well. Recently, our newly combined Exari and Coupa team met with current and prospective customers at the Corporate Legal Operations Consortium Annual Conference in Las Vegas to share our vision for a truly comprehensive operationalized contract management solution. These are just a few examples of the nearly 30 well executed Coupa community events held around the globe just this past quarter. We're very excited about the traction we continue to gain globally and we'll look to build upon this momentum.

Now, let's move on to acquisitions. As most of you now know, our acquisition strategy is focused on adding key advanced power user applications that can be seamlessly integrated into our unified organic transactional engine and/or acquiring distinct technology components that enhance this engine. In line with the execution of this strategy, in Q1, we announced our acquisition of Exari, a leader in contract life cycle management.

Exari closed early in Q2 and were already well under way in our process of rapidly integrating Exari's capabilities into the Coupa BSM platform. Together, we will maintain a streamlined, seamless user experience for our customers, delivering comprehensive contract coverage across all aspects of spend. We're also working to co-operate Coupa community intelligence to drive further insights and value from contract. With Exari on board, we are now extending our previous set of basic contract management capabilities to advanced CLM, allowing our customers to manage the entire contract life cycle, everything from contract discovery, request, creation and approval to negotiation, signature capture and optimization with compliance built in throughout the process.

In short, Exari's powerful capabilities will enable our customers to turn negotiations into realized savings. Exari is helping us further solidify our vision of enabling businesses to manage all aspects of their business spend on our platform comprehensively, as captured by the letter C in Coupa. I'll speak on behalf of all of us, when I say that we are thrilled to have the Exari team join us as Coupa colleagues.

Now, during Q1, as always, we are inspired to hand out quarterly most valuable player awards to several colleagues, who truly exceeded expectation. Nominated by their peers, I'm proud to recognize these individuals for their contributions to our company, our customers and our broader community. Jason Brown (ph) was recognized for ensuring customer success. Jason consistently goes the extra mile with customers to identify and define the right solutions for complex used-cases and his ability to communicate with customers is uniquely effective, who one colleague noted that when he turns to Jason for help, Jason always works to ensure his success as an internal customer as well.

Rich Piva, who we welcome to Coupa through our DCR Workforce acquisition won the award for focusing on results. Rich is passionate about what he does and he's constantly pushing the entire team to achieve results. His positive energy is contagious and he simply won't rest until the defined success metrics for any projects have been achieved.

Finally, Daniel Tudercliff (ph) was recognized by all of us for striving for excellence. In the short time Daniel has been with Coupa, he has demonstrated a brilliant combination of technical chop and soft skills, which have been very effective with our customers. Daniel has delivered meaningful, high caliber value to all his customers and continues to do so. One of this colleague sums Daniel's contributions up by saying simply, simply put, you rock. Big congratulations to Jason, Rich and Daniel. Truly inspired.

Our employees, company culture and our core values remain the cornerstone of our success. To that end, we were proud to be named in Fortune's best places to work for small and medium-sized companies.

So, in closing, we began the fiscal year with a very strong quarter and we remain focused on delivering value for our customer community and extending our leadership position in the Business Spend Management space. With this, our 41st Quarter of shaping and cultivating the BSM community and our 11th quarter as a public company, we continue executing on our long-term business objective and are tracking well toward our stated financial milestone of $1 billion in revenue.

Now, let me turn it over to Todd Ford, our CFO, who will review the financial details of the first fiscal quarter and provide an outlook for the second quarter and the full fiscal year. Todd?

Todd Ford -- Chief Financial Officer

Thanks, Rob; and good afternoon, everyone. We have continued to execute and deliver on the commitments we've made to our stakeholders and I'm pleased to report strong results across all key financial metrics for the first quarter.

Total revenues for Q1 grew 44% year-over-year to $81 million. Subscription revenues for Q1 were $73 million, up 46% compared to Q1 of last year, comprising 90% of total revenues. Professional services and other revenues were $8 million. Calculated billings for Q1 were $75 million, up from $50 million in Q1 of last year, representing a 50% year-over-year increase.

For the trailing 12 months, calculated billings were $340 million, up from $235 million in the previous trailing 12-month period, representing a 44% increase. Our robust billings performance was driven by an uncharacteristically strong Q1 for new business with strong business performance across all of our sales organization.

Total deferred revenue at quarter end was $176 million, up from $122 million at the end of Q1 last year, a year-over-year increase of 45%, all achieved by delivering real, measurable value to our customers through our best-in-class BSM platform and with the support of our growing Coupa community.

Let's now turn to margins and results of operations. Driven by strong revenue performance from new business and timing of bookings, our first quarter non-GAAP gross margin was 72.6%. Driven by our core values of ensuring customer success, focus on our results and striving for excellence, we delivered non-GAAP operating income of $2.2 million as well as non-GAAP net income of $2.1 million or $0.03 per share on 68.9 million diluted shares.

Cash at quarter end was $346 million, up from $321 million at the end of Q4. Operating cash flows for Q1 were $19 million or 23% of total revenues and free cash flows were $16 million or 20% of total revenues. On a trailing 12-month basis, operating cash flows were $44 million or 15% of total revenue and free cash flows were $35 million or 12% of total revenues. As a reminder, we define free cash flows as an operating cash flow, less purchases of property and equipment.

Now, let's turn to guidance. Before getting into specific guidance numbers, let me provide some context with respect to the Exari acquisition. As Rob mentioned, we acquired Exari at the beginning of Q2 and commensurate with this acquisition we are adopting 606 for Exari. Because of the adoption of 606 and the haircut applied to opening deferred revenue, our Q2 guidance assumes minimal revenue and billings contribution from Exari. But similar to the dynamic we experienced last quarter with Hiperos, we are taking the full expense impact upfront.

With this as the backdrop, we expect total revenues to be between $84.5 million and $85.5 million. This includes subscription revenues of between $77 million and $78 million, and professional services revenues of approximately $7.5 million.

Given the Exari acquisitions, let me provide some color on Q2 billings. For Q2, we expect billings growth to be approximately 42% on a trailing 12-month basis, which excludes any acquired deferred revenue from Exari. We are in the process of calculating the opening deferred revenue balance from Exari and we'll call this number out separately on the next earnings call to provide a meaningful comparison.

Now, let's look at the expense profile for Q2. Factoring in the full impact of expenses from the Exari acquisition, we expect Q2 non-GAAP gross margin to be between 70% and 71%, and non-GAAP loss from operations to be between negative $6.5 million and negative $7.5 million. This results in a non-GAAP net loss per share of $0.10 to $0.12 on approximately 62 million basic weighted average shares for the quarter.

On the OpEx side, let me call out two key factors influencing Q2. First, our sales and marketing expense spikes in Q2 by $3 million to $4 million due to our Annual Inspire User Conference, which will be held in Las Vegas in June. Secondly, expenses related to Exari for employees, normal operating costs and costs related to the acquisition are expected to impact operating margins by $5 million to $6 million in Q2. On a steady state non-GAAP basis, we expect Exari to be operating income and free cash flow positive.

With this factored in, we expect operating and free cash flows for the year to be more back-end weighted. With cash flows for the first half of the year ending at break-even or slightly better. Although it may take a few more quarters for revenues to ramp from our recent acquisitions, we remain committed to the mid-term financial targets we set forth at our Analyst Day in March.

For the fiscal year ending January 31, 2020, we expect total revenues to be between $342 million to $344 million, up from the previous range of $325 million to $327 million with non-GAAP gross margin in the range of 71% to 72%. We expect non-GAAP operating income for the year to be between $7 million and $9 million. We expect non-GAAP earnings per share in the range of $0.07 to $0.10 based upon an estimated 70 million diluted weighted average shares for the year.

To conclude, we remain vigilant on executing against our business objectives and capturing the large opportunity that lies before us. Now, we'd be happy to take your questions. Operator?

Questions and Answers:

Operator

Thank you, Mr. Ford. (Operator Instructions) Your first question comes from the line of Brent Bracelin from KeyBanc. Your line is open.

Brent Bracelin -- KeyBanc Capital Markets -- Analyst

Thank you for taking the question. I guess, first, we'll start off here with Todd. Strength in the quarter uncharacteristically strongly in Q1, I mean, obviously, typically we see Q1 being more seasonally weak quarter, what drove the strength in Q1? And I have one follow-up as well.

Robert Bernshteyn -- Chief Executive Officer

Is that meant for Todd, or would you like me to take that. This is Rob.

Brent Bracelin -- KeyBanc Capital Markets -- Analyst

Rob, why don't you take that. I have a follow-up for Todd as well.

Robert Bernshteyn -- Chief Executive Officer

Sure. Well, we've been building this business, as I mentioned in the opening remarks, for over 40 quarters and we don't look really at one quarter that's a little better or one quarter that's a little lower as an indicator of any kind of significant trend. But I would tell you that when we were on the roadshow going public, our primary driver was to get to a position where we had the rightful legitimacy in the marketplace to get into what we call the early adopter cycle with some of the largest companies in the world taken as very, very seriously. But one or two quarters in, we weren't sure if we had enough statistically significant data to suggest whether or not that legitimacy had helped us as we pushed our way into the market. I would say now, 10 plus quarters in, it's quite clear that that legitimacy is there. We're taking on some of the largest most complex multinational deployments in the world, multi-country, multi-lingual, multi-currency, massive amounts of complexity and we're getting these customers live and through the referenceability and legitimacy that we're creating in a market, we're starting to get closer and closer to what many would call a tipping point in winning a very, very large total addressable market. And when you look at that at it from that broad sense and then zoom into a given quarter, that'll give you some more context as to how, I think, we're doing overall.

Brent Bracelin -- KeyBanc Capital Markets -- Analyst

Got it. So it sounds like you're seeing good customer pull as well. And Todd, for you, obviously you talked a little bit about kind of global expansion. Could you just remind us what percent of revenue is international today and the pace of growth there? Thanks.

Todd Ford -- Chief Financial Officer

Sure. International continues to be a big growth market for us. As Rob mentioned, we landed our first significant account in Japan and several accounts in South Africa as well. If you look year-over-year, the geographic revenue split is relatively the same, because we're growing in all markets, but US revenue contribution was about 62% and non-US at 38%. And one of the things we talked about in Q4 that we're continuing to do is invest heavily in our go-to-market teams, particularly in APAC and some other international regions.

Brent Bracelin -- KeyBanc Capital Markets -- Analyst

Great. Thank you.

Operator

Your next question comes from the line of Brad Sills from Bank of America Merrill Lynch. Your line is open.

Brad Sills -- Bank of America Merrill Lynch -- Analyst

Great. Thanks, guys, for taking my question. It looks like a great quarter here. If I read into it properly, you're seeing, I think, larger new deals come in here, just given the beat here and the customer count metric, the new customer count metric, what's driving that? Is it customers starting with more spend under management initially, or you just getting into that more of those kind of global organizations, just by definition these are larger organizations, or customers starting with a bigger footprint across the suite? How would you describe that?

Robert Bernshteyn -- Chief Executive Officer

Sure, and thanks for that question. If you look historically, virtually every quarter over this 40 plus quarters that we've been at this, we've grown our annual subscription value per deal and that growth is really aligned with the amount of value that we can offer the kinds of customers that are joining us, they're getting more robust functionality, they're getting much broader depth of adoption, they're getting the ability to solve more complex problems and that's commiserate with the annual subscription price we're charging them. So that's really the heart of it, there were, as we've grown, hurdles to overcome as we went international, as we took on a larger and larger footprint. But we feel really confident in terms of having overcome all those hurdles to the extent that we could support some of the largest organizations in the world and at the same time be able to very dynamically and quickly configure solutions for mid-market customers. So the business is really working on all cylinders as far as that's concerned.

Brad Sills -- Bank of America Merrill Lynch -- Analyst

Great. Thanks, Rob. And one more if I may, please, on some of the power apps. Any ones that stood out this quarter, say, versus a year ago that you're seeing real momentum either in new business or cross-sell?

Robert Bernshteyn -- Chief Executive Officer

It's really exciting -- thank you for that question. What was really exciting about it is that we have always focused building our platform and our business in a way where we can be -- we can offer the greatest amount of value in an accelerated way to our customers. So we want the entry point to be -- onto the Coupa platform to be via any vehicle that can deliver the greatest value to the customer or the area that's the least friction to get in and start driving value. So we see it began with spend analysis. We see it begin with customer contract life cycle management most recently. We see it begin with complex sourcing optimization. We've seen it begin with supplier risk assessment. And many times and frankly more often, we see it begin with the capture of transactional spend out the gate. So the procurement invoicing, expenses, which is coming up very quickly or payments, so there is no distinct pattern that I think is statistically significant enough to say this is the entry point, it depends based on industry, based on company size and based on the particular pain points that this thing customers dealing with. But the beauty of our solution is that you could begin with any component of the Swiss Army Knife, if you will, and then ultimately you get the full value of the offer.

Brad Sills -- Bank of America Merrill Lynch -- Analyst

That's great. Thanks, Rob.

Operator

Your next question comes from the line of Mark Murphy with J.P. Morgan. Your line is open.

Mark Murphy -- J.P. Morgan Securities -- Analyst

Yes, thank you very much. Rob, I'm curious where you think we are in the depreciation cycle of some of the old aging legacy types of procurement systems that might be right for renewal with a modern system like Coupa? And what I mean by that is, do you see that there is a replacement cycle coming at you, or is it more of a haphazard kind of inconsistent pattern?

Robert Bernshteyn -- Chief Executive Officer

I would say for the -- thank you, Mark. I would say for the most part, still relatively haphazard and consistent approach. We see some that, no, they have to replace a lot of legacy capabilities and they're getting -- they are proactive about it and they reach out certain course on the front end of that and we do really well with those. There are some that wait a little bit longer and there are many that are out there. Still, obviously, they need to actually take this very seriously. So I think it's still a bit haphazard, but the opportunity is clearly there.

And what I think what's really helping us is the reference ability of our customer base that has made those conversions from incumbent solutions. They're getting real measurable value, they can see it, they have end user delight, they have financial benefit, and so they are helping kind of evangelize what the opportunity is for many of the folks that either bought shelfware or in some cases vaporware or have bought certain things that are very, very -- have very, very low deployment and adoption. And so, we anticipate that to continue.

Mark Murphy -- J.P. Morgan Securities -- Analyst

Thank you. Just as a follow-up, Rob. A couple of quarters ago, you had mentioned some of your data on purchase order approval times stretching out a little, some of the rejection rates rising, I believe it was contained in financial services, in manufacturing verticals and, of course, we realize that commentary is completely distinct from Coupa's own fundamentals. We were trying to separate that out. But based on what you said, I think you said that the spend index had a positive indication for the next three to six months. Could you just comment on those trends, kind of, relative to a couple of quarters ago? And are you kind of something that that's trending in the right direction, right now?

Robert Bernshteyn -- Chief Executive Officer

Sure. Thank you, friend. Thank you for drawing that distinction between our customer base and what we're seeing and what we're now putting out as the Coupa business spend index. And so the first version of that obviously was released in April for Q1 and indeed it was very positive for all industries manufacturing being the one that was the least positive relative to the positivity of all of them. But I will tell you, Mark, we will next month release the Q2 Coupa business spend index and we will share it both at an aggregate level as well as by industry, so stay tuned to that. That should give us a real -- a good sense of things to come.

Mark Murphy -- J.P. Morgan Securities -- Analyst

Thank you.

Operator

Your next question comes from the line of Terry Tillman from SunTrust. Your line is open.

Terry Tillman -- SunTrust Robinson Humphrey -- Analyst

Hey, good afternoon, gentlemen. Rob, I guess the first question, just kind of going back to it. It seems like it was like yesterday, the Analyst Day, it seems like the power of data that you increasingly have with the platform and all the transactional spend, so maybe just -- the first question for you is on community intelligence, what you're seeing in sales cycles and attach rate with the early components of community intelligence that you've released so far? And then I have a follow-up for Todd.

Robert Bernshteyn -- Chief Executive Officer

Sure. Thank you for that question, Terry. I mean, this is just so exciting for us not only among our customer community, but among our employee base as well. As we're starting to see these prescriptive insights present themselves in a way that we could offer distinct value for every individual customer based on the collective intelligence of the customer community, right. So we've seen really strong uplift in our Risk Aware product, for example, in our commodity insights offerings, in our bench-marking offerings, and just with this last release with Spend Guard, we're bringing forth intelligence as to how to avoid spent fraud across every component of spend from expensing to procurement to invoicing, so it continues to be a very distinct capabilities that our community of customers now that starting to really understand, because they are seeing the value being exposed. And I think in coming quarters, we're going to have a chance to really take it to the next level. It goes well beyond creating barriers to entry for our business. It goes toward creating a non-linear value driver for every one of our customers and it's absolutely beginning to resonate in the way that we had always hoped.

Terry Tillman -- SunTrust Robinson Humphrey -- Analyst

Okay. All right. Thanks. And then, Todd, a quick question for the CLM acquisition. I know that there is adjustments in accounting, purchase accounting adjustments and then 606, so it's going to be noisy, but just anything on the run rate of the business? And as we think about into the next fiscal year, I'm not trying to get into, by the way, of giving guidance next year of what you want to, but like -- it seems like there could be an acceleration next year, because then some of these headwinds around these acquisitions start to reverse? Thank you.

Todd Ford -- Chief Financial Officer

Yeah, it's a good point and a similar as we acknowledged with Hiperos and there is a big deferred revenue haircut and you have to rebuild that deferred revenue and then recognize revenue as that deferred revenue bleeds off. Clearly, we're not going to give guidance on FY2021 yet, but I think it is fair to ask what we would expect on a -- for next year with respect to Exari, given it was a large acquisition. And at this point and we'll see how things roll in with 606 in the deferred revenue haircut, but when you look at FY 2021 we would expect Exari to contribute revenues of approximately $25 million.

Terry Tillman -- SunTrust Robinson Humphrey -- Analyst

Okay, thanks. Nice job.

Operator

Your next question comes from the line of Raimo Lenschow from Barclays. Your line is open.

Raimo Lenschow -- Barclays Capital Inc. -- Analyst

Hey, congrats on an amazing Q1 from me as well. Rob, can you talk a little bit about the customer feedback you've got off to the Exari announcement, obviously you saw some clients this quarter, like how are you thinking about it? And if you think about adoption, is there going to be like -- what are they think in terms of waiting for you to integrate it fully versus kind of going ahead already and what are the plans term? Thank you.

Robert Bernshteyn -- Chief Executive Officer

Sure, sure. Thanks for the question, Raimo. So I have a very distinct view on this space of contract life cycle management and that it has a great deal of value, but that value really presents itself when integrated into a transactional platform. And if you look at some of the best-in-class reports out there by folks around the adoption of CLM as a stand-alone, you'll find that the vast majority of them use it primarily as a centralized contracts repository, but they're not getting all of the value that they could be from the whole life cycle of requesting a contracts to creation, approval, negotiation, all of the compliance components and alerts the contracts that are going to expire and whether or not you spending against them and optimizing the contract life cycle of soup to nuts.

So, the few -- and it's still -- it's just a few existing customers and prospective customers I've spoken to since we completed the acquisition very recently. There was a great deal of interest in not only having them from one provider being Coupa, because of what we think is a distinct customer success oriented culture, because of the speed of deployment, because of our focus on integration and value creation, but also because they see the synergy of having those capabilities made real through our transactional engine. So they're not necessarily waiting for any distinct primary integration hooks, but I can tell you we're already well under way on integrating not only the ability to sign on to both applications seamlessly and have a seamless user experience, but also in the business use cases where you take contracts that are completed in a best-in-class Coupa CLM and made real through transactional spend inorganic core. So, we couldn't be more excited about it.

Raimo Lenschow -- Barclays Capital Inc. -- Analyst

Perfect. And maybe one follow-up for Todd. Todd, can you just -- you mentioned a more back-end nature of the year, can you just -- as you -- if I think about the second half, is this kind of more Q4 versus Q3 or is it equal? Just a little bit more color there would be nice. Thank you.

Todd Ford -- Chief Financial Officer

Yeah. It would definitely be more weighted toward Q4 than Q3, and just given typical enterprise software seasonality, majority of the new business is booked and the renewals come up in Q4. So from a cash flow perspective with respect to not only Coupa, but the acquisitions we've done I would expect it to be more back-end loaded with us taking some of the cash flow hit in Q2 with respect to Exari and a little bit from Inspire.

Raimo Lenschow -- Barclays Capital Inc. -- Analyst

Perfect. Thank you. Congrats.

Operator

Your next question comes from the line of Ryan MacDonald from Needham. Your line is open.

Ryan MacDonald -- Needham & Company -- Analyst

Yeah. Good afternoon, Rob and Todd. Congrats on the great quarter. I guess just touching on Exari, it seems like they've got a pretty good footprint I think in the financial services vertical and also I guess from a geographic perspective has had some nice success in EMEA. Can you talk about sort of what assets they have or they bring to the table in terms of expanding that go-to-market both from a vertical perspective and a geographic perspective?

Robert Bernshteyn -- Chief Executive Officer

Well, I would say to you the number one asset they bring are their people and these are our new colleagues, they are excited to be part of this journey around creating a best-in-class Business Spend Management experience that drives value for customers. That's number one. And with that comes a great deal of domain expertise and the depth and breadth of this area that's so important to many companies. Underneath that is, of course, a very robust platform that is able to support the entire lifecycle of contracts in a way that very, very few in that category have been able to do for some of the largest companies in the world and across a whole host of different industry.

I would say I'm particularly excited about the contract types that they're able to support and the way that they use AI-powered data extraction to get contracts into the system, so that they can be optimized for transactional spend and I think we're in a very unique situation to have brought this product asset into the Coupa fold. But even more so excited about the people and their excitement to join us on this journey.

Ryan MacDonald -- Needham & Company -- Analyst

Got it. And then just a quick follow-up. I think you mentioned in response to an earlier question that you're winning larger customers with more complex scenarios and implementations. Over it seem like earlier in the call that those implementation times have actually been compressing, can you kind of reconcile that a bit and talk a bit about any potential incremental investments you need to make to address those more complex scenarios moving forward?

Robert Bernshteyn -- Chief Executive Officer

Yes. Thank you for bringing out that what's seemingly a paradox and I will explain that, because I think it's phenomenal. We're seeing some of the largest companies in the world not so much coming to us with the traditional 150 page RFPs trying to figure out how we might be able to support their complexity. They are more and more coming to us asking us for support in delivering a best practices, thoughtful results-oriented deployment for them. And that is, in my mind, a very distinct change that what we're seeing just perhaps two to three years ago, where it was, can you do everything we want? Now it's, can you do the things that you believe are going to get us the best-in-class in this category and then elements around this core spend management category that of course we define as BSM? That's a big change and it's a phenomenal one for us.

Ryan MacDonald -- Needham & Company -- Analyst

Great. Thanks very much.

Operator

Your next question comes from the line of Stan Zlotsky from Morgan Stanley. Your line is open.

Stan Zlotsky -- Morgan Stanley & Co. -- Analyst

Hey, guys. Good afternoon. I apologize for the background noise. Just wanted to go back to the US Postal Service, when would you announced on the Q1 call, which is very impressive, and we certainly (technical difficulty) an update on the US RPS specifically, but how's federal pipeline looking for the rest of the year? And then I have a quick follow-up.

Robert Bernshteyn -- Chief Executive Officer

Well, the pipeline continues to develop, Stan. This was a very exciting deal for us, obviously, that we shared last quarter. But I would say, overall, in federal we continue to develop and cultivate a strong pipeline, we continue to make significant strides in the product areas to ensure that we have all the boxes checked that a whole host of federal, state, local and educational institutions will be interested in deploying our Business Spend Management platform. So a lot of steady progress continues to be made in the area of federal and we'll certainly keep you posted as there are key milestones or events worth calling out.

Stan Zlotsky -- Morgan Stanley & Co. -- Analyst

Okay, perfect. Thank you. And then I have quick follow-up for Todd. On the inorganic contributions, can you enlighten us what the inorganic contribution was in Q1? And you talked about the 606 impact to Exari and you're not expecting too much from a revenue perspective, but how should we think about Exari and as well as Hiperos for the rest of this year? Thank you.

Robert Bernshteyn -- Chief Executive Officer

Yes. So with respect to Hiperos, as we noted on the last call, the beginning deferred revenue balance at the end of Q4 was roughly $6 million and we expect that to bleed in and the billings that were in Q1 were minimal. And if you look at what drove the out-performance in Q1 from a billings and revenue, it really was execution on the sales front and in the linearity of the bookings. But if you look at the trailing 12-month revenue growth rate 41% versus 39% last year and the billings growth rate of 44% at the end of Q1 on a trailing 12-month basis versus 41% in Q1, that growth was really driven by the new business acquisition. And then with respect to breaking out M&A, as we have in the past, we will continue to provide data that provides meaningful comparisons, but we don't intend to break out all the financial details every quarter.

Stan Zlotsky -- Morgan Stanley & Co. -- Analyst

Got it. Thank you.

Operator

Your next question comes from the line of Yao Chew from RBC Capital Markets. Your line is open.

Yaoxian Chew -- RBC Capital Markets -- Analyst

Hi, everyone. Congrats on the quarter, and thanks for taking my question. You guys have done incredibly well with integrating the companies you bought so far, but I have a high level question here around the Business Spend Management category as a whole. It seems the category in general is heating up with both partner growth and competitors taking a recent round of funding, I value in particular talking about doubling headcount over the next 18 months or so, can you speak to this a bit more? Do you run into them? Competitively, can you speak to win rates of Welldone (ph), but more importantly can you speak to competition for the assets you're looking for an M&A processes as more capital to the sector, inflated sort of expectations, one should use more meaningful competition or you still the buyer of choice of these assets?

Robert Bernshteyn -- Chief Executive Officer

Well, I can tell you that we've done quite a few acquisitions over our 10 plus years in building out this business and in every case we've known the company and the people within the company that we acquired for a significant period of time. In some cases, seven years, in some cases a few years, gotten to know the leader, gotten to know the culture, gotten to know what it is that they really offer for the long-term if they are part of us. So we look for that type of synergy. We haven't been in a situation where we're dealing directly with another competitive bidder in acquiring any of the assets that we've acquired to-date. So I can tell you that has to do with having that vision lock with that company that we're going out to acquire well before we go out on the journey of the acquisition.

Now, as you were talking about potential competitors, in general, I can tell you that now the only competition we really see in our market is ourselves. We have a very distinct and innovative approach that's very different than anything that's been done before in Business Spend Management. As you know, we're a comprehensive, open, user-centric, prescriptive with large amounts of volumes of data on one unified cloud platform and, as discussed earlier, we're getting these customers live and accelerated way in driving meaningful value to them.

So the last thing I'd say is that, we are currently positioned as the leader in Business Spend Management proudly, but any activity, a movement in the space, including new capital investments, it's ultimately buoyant for the entire industry and we think it's healthy over the long-term, but we continue to focus on what we offer and that's value-as-a-service for our customers.

Yaoxian Chew -- RBC Capital Markets -- Analyst

That's great. Thank you.

Operator

Your next question comes from the line of Joseph Foresi from Cantor Fitzgerald. Please go ahead.

Joseph Foresi -- Cantor Fitzgerald & Co. -- Analyst

Hi. I wonder if we could get an update on your progress on the payment processing side? And I just wanted to get a sense of sort of anything that's changed anything as updated, I know we've talked about a potential, maybe, dashboard where procurement could see all the different pieces of the process, although maybe we could start with an update there.

Robert Bernshteyn -- Chief Executive Officer

Sure, sure. So regarding the timeline, the roadmap, as we stated in our past that typical timeline for these new major areas of product development is that we continue to announce them at our conference as we first come out with something that's in development, then early access, and then we fully take it GA. And we're still operating in that timeline. We first announced our four inter payments in May of last year, we moved our way into virtual pay, virtual credit cards, excuse me, moved our way into dynamic discounting or Coupa Accelerate and now we are in early access with Coupa Invoice payments. Now we have dozens of customers adopting our solutions now. We are managing now thousands of transactions. So it remains a very, very healthy new set of capabilities we brought out to our customer community and we'll continue to monitor that as we get to levels. They are worthy of sharing you with you distinctly. We'll definitely won't be sharing that long now (ph).

Operator

Your next question comes from the line of Joseph Vafi from Loop Capital. Your line is now open.

Joseph Vafi -- Loop Capital -- Analyst

Hey, guys. Let me go add my congratulations here again. Maybe can we talk a little bit about the partners here relative to implementation times. I know on one of the previous questions, you said that perhaps your methodology -- your platform is being adopted as a best practice methodology as well as a piece of software, are the integrators helping influence that decision by some other customers now? I have a follow-up. Thanks.

Robert Bernshteyn -- Chief Executive Officer

Sure, sure, Joseph. So, look, we continue to have strong partnerships with our global systems integrators and that's both domestically and certainly internationally as well. And I would tell you that a good leading indicator to that success is when we see deals that come up and close a lot quicker, because the systems integrator says we are supposed to be agnostic, but realistically this is by far the best thing that you should be looking at Mr and Mrs prospective customer. So as time goes on, we're seeing more and more pull from these partners to get them certified on Coupa. Now, we've certified thousands of folks on Coupa, so they're getting really, really good at best practices style deployments and that makes its way around the industry. People start to understand what it is to get a solution deployed quickly and they realized that it opens up the opportunity for that GSI to go up in the stack in terms of the offering and the value they could drive for their customers, they could focus on spend management transformation, they could focus on a whole host of value-adds beyond configuration and low value work that we've made a lot easier for them. So it creates a win-win-win and the industry is learning about that and the success cases are presenting themselves and that creates a very nice virtuous cycle for us to continue to cultivate.

Joseph Vafi -- Loop Capital -- Analyst

Okay, that's helpful. And then just circling back to the Coupa Pay module, I know it sounds like you're adopting some of the banking technologies that are out in the marketplace today and providing early access to some customers for Coupa Invoice Pay, I was wondering how do you choose those potential early access customers, or are these customers that want a solution, they need the solution more than others perhaps or how does that work? Thanks a lot.

Robert Bernshteyn -- Chief Executive Officer

Sure. Thank you. It's such a great question. We have this incredible customer community that we're cultivating, just I didn't share in my opening remarks, but we have user group sessions happening all over the world and extremely well attended by our customer community members and many of them step up literally and, say, look, we'd like to be the ones that are first to use this. We're at a place where in our Coupa journey where we have the bandwidth to begin to turn on more people in this area. We're at a level of maturity, where we'd like to try these capabilities. In some cases, there are more people interested then they're willing -- then we're willing to take on. So it's a wonderful problem to have, but there is no signs to it. We've kind of work with the community to pick the right folks and engage with them to effectively represent the community in that early stage process.

Operator

Your next question comes from the line of Chris Merwin from Goldman Sachs. Your line is open.

Christopher Merwin -- Goldman Sachs -- Analyst

Okay. Thanks for taking my questions. So just one more follow-up on Invoice payments. I think we'll probably hear more about this in a few weeks, but is there any thoughts you can share about how it might be monetized whether it's on a subscription basis or percentage of spend under management? Obviously, the growth we're seeing there in spend under management is accelerating, so just curious how you're thinking about it? And I just had a quick follow-up. Thanks.

Robert Bernshteyn -- Chief Executive Officer

Yeah. Thank you, Chris. So we see value both from a subscription perspective as well as the transactional components. And so, we are working with both of those dimensions to right size the pricing to be commiserate with the value that we're delivering. So this is one of those capabilities that is not sure transactional and it's not purely annual subscription, it's a combination of the two and it's in our hands to figure out the way to continue to be on the same side of the table with our customers, but at the same time make sure that we're fairly monetizing the value that we're creating.

Christopher Merwin -- Goldman Sachs -- Analyst

Okay, great. And then like when you originally guided to the 1Q, you talked about a 300 basis point headwind from a fewer number of days in the quarter, was that still the case in terms of what you saw, I guess, we think about an apples-to-apples subscription revenue growth number? Is that fair to say it's 300 basis points higher perhaps than what was reported?

Robert Bernshteyn -- Chief Executive Officer

In our guidance, there's 89 days enough to get into the miniature (ph) of that in Q1 versus Q4, so when you look at the exit rate of Q4 from a subscription perspective, it is about 300 basis points lower and that played out exactly as we had contemplated when we gave guidance for Q1.

Operator

Your next question comes from the line of Terry Kiwala from First Analysis. Your line is open.

Terry Kiwala -- First Analysis -- Analyst

Congratulations on a great quarter. My question is on the Exari, the Exari acquisition, and you mentioned that you're getting a very positive response from current and prospective customers. I'm wondering if you're getting any feedback from your sales staff, some early signs as to whether the sales cycle maybe shortened or close rates may be increased by way of this additional suite of services? Thank you.

Robert Bernshteyn -- Chief Executive Officer

Yeah. Thank you, Terry. I would say somatically it's very positive from just about anyone we've had any interaction with regarding this news, whether it'd be analysts, our internal sales team, prospective customers and existing customers, because it's such an obviously synergistic set of capabilities with the right team, the right culture and the right willingness to go on this journey, so generally very positive. Anything that I would share that is specific to one or two individuals is really not statistically significant enough, but I would tell you broadly very positive.

Operator

And your next question comes from Brian Peterson from Raymond James. Your line is open.

Alex Sklar -- Raymond James & Associates, Inc. -- Analyst

Great. Thanks. This is Alex Sklar here for Brian. Rob, you talked about accelerating value capture of the go-live. I'm curious how Coupa Advantage has played into that? Are you -- there is kind of percent of new customers that are taking this or -- of your total base?

Robert Bernshteyn -- Chief Executive Officer

Yes. I would tell you that the vast majority of our customers see the value in Coupa Advantage. It's a key component in the pre-sales effort and we're seeing it grow at rapid pace in terms of utilization, it's real hard dollar value that exist as part of being a Coupa community member. We're very proud of it, it's growth both domestically as well as now internationally and we think it's going to be a continued driver for us for many years to come.

Operator

At this time, there are no further questions. This concludes the conference for today. We do thank you for joining us. You may now disconnect.

Duration: 57 minutes

Call participants:

Nicole Noutsios -- Investor Relations

Robert Bernshteyn -- Chief Executive Officer

Todd Ford -- Chief Financial Officer

Brent Bracelin -- KeyBanc Capital Markets -- Analyst

Brad Sills -- Bank of America Merrill Lynch -- Analyst

Mark Murphy -- J.P. Morgan Securities -- Analyst

Terry Tillman -- SunTrust Robinson Humphrey -- Analyst

Raimo Lenschow -- Barclays Capital Inc. -- Analyst

Ryan MacDonald -- Needham & Company -- Analyst

Stan Zlotsky -- Morgan Stanley & Co. -- Analyst

Yaoxian Chew -- RBC Capital Markets -- Analyst

Joseph Foresi -- Cantor Fitzgerald & Co. -- Analyst

Joseph Vafi -- Loop Capital -- Analyst

Christopher Merwin -- Goldman Sachs -- Analyst

Terry Kiwala -- First Analysis -- Analyst

Alex Sklar -- Raymond James & Associates, Inc. -- Analyst

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