Coveo Solutions, Inc. · TSX:CVO
Coveo Solutions — Q2 2025 Earnings Presentation
26 slides from Coveo Solutions's earnings presentation, Nov 4, 2024
Slide 1: Q2 Fiscal 2025 Financial Results
Q2 Fiscal 2025 Financial Results For the three and six months ended September 30, 2024 November 4, 2024
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 Disclaimer Information Form dated June 3, 2024 (the “AIF”), as well as in our condensed interim consolidated financial statements (unaudited)
Slide 3: Q2 Performance Highlights
Q2 Performance Highlights Louis Têtu Chairman and CEO, Coveo
Slide 4: Q2 FY’25 Highlights
Q2 FY’25 Highlights $31.2M 11% (1) 82% Q2 FY’25 SaaS Q2 FY’25 SaaS Subscription Q2 FY’25 Product Subscription Revenue(2) Revenue(2) Growth Gross Margin (Coveo core Platform) (Year-over-Year) $1.5M ($5.4M) $1.4M Q2 FY’25 Adjusted EBITDA(3) Q2 FY’25 Net Loss Q2 FY’25 Cash Flows from Operating Activiti
Slide 5: Generative AI became the catalyst for enterprise interest in Applied AI
The capabilities of Generative AI took the world by storm and became the catalyst for an unprecedented interest from global enterprises in Applied AI. After education, experimentation and evaluation, enterprises are increasingly ready to adopt and operationalize AI solutions. Coveo is well positione
Slide 6: Selected customers trusting Coveo’s Relevance-Augmented Generative Answering
Selected customers trusting Coveo’s Relevance-Augmented Generative Answering Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 7: Q2 update: Generative AI progress drives ROI
Q2 update: Generative AI progress Selected >50% customers wins sequential increase in generative AI customers CRGA CRGA Pipeline continues to build drives ROI with healthy in multiple use cases conversion rates 7 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 8: Q2 Update: momentum in Commerce
Q2 Update: momentum in Commerce New global Key lands including partnership in Dentsply, a leading enterprise commerce American food service with distributor, and a leading homewares retailer Success Progress in driven by our Australia and partnership with New Zealand with our newly established team
Slide 9: Growing momentum with key partners
Growing momentum with key partners Amazon AWS ISV Accelerate program + + + + + 9 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 10: The Proven Value of Coveo Relevance Generative Answering
The Proven Value of Coveo Relevance Generative Answering 30% Increase in €8m Reduction in Annual Case Deflection Cost-to-Serve 80% Decrease in 64% Decrease in Searches per Visit Content Gap • *Coveo believes that the market and customer and other data presented is reliable and, with respect to data
Slide 11: Q2 Financial Highlights
Q2 Financial Highlights Brandon Nussey Chief Financial Officer, Coveo
Slide 12: Q2 FY’25 Highlights
Q2 FY’25 Highlights $31.2M 11% (2) 95% Q2 FY’25 SaaS Q2 FY’25 SaaS Subscription Q1 FY’25 SaaS Subscription Revenue(1) Revenue(1) Growth Subscription Revenue(1) (Coveo core Platform) (as a % of Total Revenue) (Year-over-Year) 104% (2) 82% $1.4M Net Expansion Rate(1) Q2 FY’25 Product Q2 FY’25 Cash Flo
Slide 13: Revenue Growth
Revenue Growth USD millions Q2 FY’25 Q2 FY’24 YoY SaaS Subscription Revenue(1) $31.2 $29.4 6% Coveo core Platform(2) $29.9 $26.9 11% Qubit Platform(3) $1.3 $2.5 (51%) Professional Services Revenue $1.6 $1.8 (14%) Total Revenue $32.7 $31.2 5% (1) SaaS Subscription Revenue is a Key Performance Indicat
Slide 14: Gross Profit Measures
Gross Profit Measures % Q2 FY’25 Q2 FY’24 Gross Margin 79% 78% Adjusted Gross Margin(1) 80% 79% Product Gross Margin 82% 82% Adjusted Product Gross 83% 83% Margin(1) (1) Adjusted Gross Margin and Adjusted Product Gross Margin are non-IFRS financial ratios. Please refer to the "Non-IFRS Measures and
Slide 15: Profitability Measures
Profitability Measures USD millions Q2 FY’25 Q2 FY’24 Net Loss ($5.4) ($6.5) Adjusted EBITDA(1) $1.5 $0.0 Cash Flows from Operating +72% $1.4 $0.8 Activities YoY (1) Adjusted EBITDA is a non-IFRS measure. Please refer to the "Non-IFRS Measures and Ratios" section of the disclaimer to this Presentati
Slide 16: Q3 FY’25 and Full Year Guidance
Q3 FY’25 and Full Year Guidance USD millions Q3 FY’25 Full Year FY’25 SaaS Subscription Revenue(1) $31.8 – $32.3 $126.0 – $130.0 Total Revenue $33.4 – $33.9 $133.0 – $138.0 Adjusted EBITDA(2) $0.0 – $1.0 $0.0 – $4.0 For the Full Year, the company expects to remain within the previously issued guidan
Slide 17: Q&A Session
Q&A Session 17 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 18: Appendix
Appendix 18 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 19: 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) 19 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 20: Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (in thousands of US dollars, unaudited) 20 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 21: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA (in thousands of US dollars, unaudited) Adjusted EBITDA is defined as net loss, excluding interest, taxes, depreciation of property and equipment and right-of-use-assets, amortization and impairment of intangible assets (or EBITDA), adjusted for stock-ba
Slide 22: 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, unaudited) Adjusted Gross Profit, Adjusted Product Gross Profit, and Adjusted Professional Services Gross Profit are respectively defined as gross profit, product gross profit, and profes
Slide 23: 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, unaudited) “Adjusted Sales and Marketing Expenses”, “Adjusted Research and Product Development Expenses”, and “Adjusted General and Administrative Expenses” are respectively
Slide 24: Condensed Interim Consolidated Statements of Financial Position
Condensed Interim Consolidated Statements of Financial Position (in thousands of US dollars, unaudited) 24 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 25: Condensed Interim Consolidated Statements of Cash Flows
Condensed Interim Consolidated Statements of Cash Flows (in thousands of US dollars, unaudited) 25 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 26: 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