Coveo Solutions, Inc. · TSX:CVO
Coveo Solutions — Q1 2024 Earnings Presentation
31 slides from Coveo Solutions's earnings presentation, Aug 8, 2023
Slide 1: Fiscal 2024 Q1 Financial Results
Fiscal 2024 Q1 Financial Results For the three months ended June 30, 2023 August 8, 2023
Slide 2: Disclaimer
This presentation (“Presentation”) is qualified in its entirety by reference to, and must be read in conjunction with, the information contained in our Annual Information Form dated May 30, 2023 (the “AIF”), as well as in our condensed interim consolidated financial statements (unaudited) for the th
Slide 3: Q1 Performance Highlights
Q1 Performance Highlights Louis Têtu Chairman and CEO
Slide 4: Q1 FY'24 Highlights
Q1 FY’24 Highlights 19% (20% in cc (1)) 15% (16% in cc(1)) SaaS Subscription Total Revenue Growth Revenue(2) Growth $2.8M 109% Adjusted Operating Loss(3) Net Expansion Rate(2) (1) SaaS Subscription Revenue growth at constant currency and total revenue growth at constant currency are non-IFRS ratios.
Slide 5: We had some recent notable achievements
June 28, 2023 | Montreal, QC and San Francisco, CA Coveo’s AI Platform Earns Coveted ISO 27001 Certification: Setting the Standard for Security and Trust We had some Coveo’s market-leading AI Platform, the Coveo Relevance CloudTM, continues demonstrating strength in security by achieving global secu
Slide 6: Coveo is uniquely positioned to solve key GenAI challenges for enterprises
AI Coveo is uniquely positioned, now, to solve key GenAI challenges for enterprises Secure Truthful & current The Coveo Coveo Auditable prompts & responses Dynamically grounded Relevance Cloud TM Relevance Generative Integrated with search and discovery AI Platform Answering TM Largely scalable Cost
Slide 7: Coveo Relevance Generative Answering
Coveo “Intent” box: Relevance search query or long form conversational question Generative Coveo is Secure, truthful, current, Answering TM “Customer zero” grounded, verifiable generative answer for our own customer service Industry’s most powerful platform for Enterprise AI & GenAI experiences Gene
Slide 8: Relevance Generative Answering Beta Program
20 Premier and Standard Design A number of customers partners including: interested in the Early Access Program Staggered product access starting in Q2 FY’24 Relevance Generative Answering TM Beta Program Early adopter pricing offered 25 enterprise customers in the Advisory Group Long-term pricing e
Slide 9: Key Go-to-Market Partnerships
Key Go-to-Market Partnerships Commerce Service Platform B2B Self-Service Websites B2C retail Contact Centers Workplace 9 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 10: Large US-based Wine and Spirits Distributor
Commerce Customer Highlight Large US-based Wine and Spirits Distributor Partnership with Coveo to improve their B2B eCommerce portal Competitive win based on: 1. Maturity of our enterprise platform 2. Ability to handle complex B2B catalog 3. Strong partnership with SAP Future Coveo implementation to
Slide 11: A Pioneer in the Global Automotive Industry
Commerce Customer Highlight A Pioneer in the Global Automotive Industry Global presence in wholesale, retail, and franchise operations Competitive win based on: Coveo's mature AI infrastructure showcased through a Business Value Assessment Rapid time-to-value demonstrated by Coveo's capabilities Cov
Slide 12: US-Based Leader in Higher Education
Service Customer Highlight US-Based Leader in Higher Education Offering flexible online and on-campus degrees Competitive win based on: Coveo’s trusted partnership with Salesforce Our superior technical capabilities Ability to demonstrate reduced resource maintenance Enhancing self-service and agent
Slide 13: Leading Financial Services Company
Workplace Customer Highlight Leading Financial Services Company Providing financial advice and retirement planning to more than 7 million clients in North America Competitive win based on: Coveo's maturity as a leading SaaS solution with a strong user experience focus Coveo's value proposition cente
Slide 14: Q1 Financial Highlights
Q1 Financial Highlights Brandon Nussey CFO
Slide 15: Revenue Growth
Revenue Growth USD millions, except % Q1 FY’24 YoY 15% Total Revenue $30.5 16% in cc(1) SaaS Subscription Revenue(2) $28.5 19% % of Total Revenue 93% 20% in cc(1) Professional Services $2.0 (6%) % of Total Revenue 7% (1) SaaS Subscription Revenue growth at constant currency and total revenue growth
Slide 16: Key Performance Indicators
Key Performance Indicators 19% (20% in cc*) Q1 FY’24 SaaS Subscription Revenue (1) 109% Growth (1) (Year-over-Year) Net Expansion Rate 28.5 As of Jun. 30, 2023 24.0 $ millions $94.4M, up 12% YoY Current SaaS Subscription Remaining Performance Obligations (1) As of Jun. 30, 2023 (1) SaaS Subscription
Slide 17: Gross Profit Measures
Gross Profit Measures % Q1 FY’24 Q1 FY’23 Gross margin 78% 75% Adjusted Gross Margin(1) 79% 76% Product gross margin 82% 80% Adjusted Product Gross Margin(1) 83% 81% (1) Adjusted Gross Margin and Adjusted Product Gross Margin are non-IFRS financial ratios. Please refer to the "Non-IFRS Measures and
Slide 18: Operating Loss
Operating Loss USD millions Q1 FY’24 Q1 FY’23 Operating Loss $7.6 $13.3 Generated $1M in cash Adjusted Operating Loss(1) $2.8 $7.5 from ops in Q1 FY’24 Net Loss $7.0 $12.5 (1) Adjusted Operating Loss is a non-IFRS measure. Please refer to the "Non-IFRS Measures and Ratios" section of the disclaimer
Slide 19: Q2 FY'24 and Full Year Guidance
Q2 FY’24 and Full Year Guidance USD millions Q2 FY’24 Full Year FY’24 SaaS Subscription Revenue(1) $28.8 – $29.3 $118.0 – $120.0 Total Revenue $30.8 – $31.3 $127.0 – $129.0 Expect <$10M of Adjusted Operating Loss(2) $1.5 – $2.5 $11.5 – $13.5 cash used in operations in FY’24 Coveo continues to expect
Slide 20: 2nd Annual Capital Markets Day
S AV E TH E DATE 2nd Annual Capital Markets Day Thursday, November 16, 2023 TMX Market Centre, Toronto Save the date for our upcoming half-day in-person event! Join members of Coveo's senior leadership team as they share the latest updates on our organization. Don't miss this opportunity to stay inf
Slide 21: Q1 FY'24 Results Q&A
Q1 FY’24 Results Q&A 21 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 22: Appendix
Appendix 22 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 23: Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (in thousands of US dollars, except share and per share data, unaudited) 23 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 24: Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (in thousands of US dollars, unaudited) 24 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 25: Reconciliation of Adjusted Operating Loss to Operating Loss
Reconciliation of Adjusted Operating Loss to Operating Loss (in thousands of US dollars) “Adjusted Operating Loss” is defined as operating loss excluding share-based payment and related expenses, amortization of acquired intangible assets, acquisition-related compensation, transaction-related expens
Slide 26: Reconciliation of Adjusted Gross Profit Measures and Adjusted Gross Margin Measures
Reconciliation of Adjusted Gross Profit Measures and Adjusted Gross Margin Measures (in thousands of US dollars) “Adjusted Gross Profit”, “Adjusted Product Gross Profit”, and “Adjusted Professional Services Gross Profit” are respectively defined as gross profit, product gross profit, and professiona
Slide 27: Reconciliation of Adjusted Operating Expense Measures and Adjusted Operating Expense (%) Measures
Reconciliation of Adjusted Operating Expense Measures and Adjusted Operating Expense (%) Measures (in thousands of US dollars) “Adjusted Sales and Marketing Expenses”, “Adjusted Research and Product Development Expenses”, and “Adjusted General and Administrative Expenses” are respectively defined as
Slide 28: Reconciliation of Constant Currency Measures and Ratios
Reconciliation of Constant Currency Measures and Ratios (in thousands of US dollars) (1) SaaS Subscription Revenue is a Key Performance Indicator of Coveo. Please refer to the "Definition of Key Performance Indicators" section of the Appendix for the definitions of such measure. In this table, SaaS
Slide 29: Condensed Interim Consolidated Statements of Financial Position
Condensed Interim Consolidated Statements of Financial Position (in thousands of US dollars, unaudited) 29 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 30: Condensed Interim Consolidated Statements of Cash Flows
Condensed Interim Consolidated Statements of Cash Flows (in thousands of US dollars, unaudited) 30 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 31: Definition of Key Performance Indicators
Definition of Key Performance Indicators “SaaS Subscription Revenue” means Coveo’s SaaS subscription revenue, as presented in its financial statements in accordance with IFRS. “Current SaaS Subscription Remaining Performance Obligations” is a forward-looking indicator of anticipated future revenue u