Slide 1: Q3 Fiscal 2025 Financial Results
Q3 Fiscal 2025 Financial Results For the three and nine months ended December 31, 2024 February 10, 2025
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: Q3 Performance Highlights
Q3 Performance Highlights Louis Têtu Chairman and CEO, Coveo
Slide 4: Q3 FY'25 Highlights
Q3 FY’25 Highlights $32.3M 12% (1) 82% Q3 FY’25 SaaS Q3 FY’25 SaaS Subscription Q3 FY’25 Product Subscription Revenue(2) Revenue(2) Growth Gross Margin (Coveo core Platform) (Year-over-Year) $0.6M $4.0M $(0.2M) Q3 FY’25 Adjusted EBITDA(3) Q3 FY’25 Net Q3 FY’25 Cash Flows income from Operating Activi
Slide 5: Coveo, the AI-Relevance Company, powers augmented relevance at every point-of-experience
Coveo, the AI-Relevance Company, powers augmented relevance at every point-of-experience for the world’s leading enterprises, driving superior business outcomes from all their digital experiences. powered by TM Coveo AI-Relevance Platform Copyright © Coveo Solutions Inc. All rights reserved. Proprie
Slide 6: Initial excitement around generative AI evolving into focus on execution and results
"The initial excitement around AI, especially generative AI (GenAI), is evolving into a deeper focus on execution and results. AI’s importance in the C-suite is steadfast; three- quarters of executives name it as a top-three strategic priority for 2025. Companies also plan to invest more in GenAI in
Slide 7: Relevance is not. Digital is table stakes.
Support Marketplace / Portals App Store AI Agents Store Associates In-App/in-product In-store Commerce Partner and rce Se rv e Dealer Portals m ice m Co B2C Commerce Chatbots omer and con ust te x B2B c Digital is table stakes. f ts °o Commerce ign Customer 360 als Support Agents Relevance is not. 3
Slide 8: Relevance, in digital experiences, impact business
Relevance, in digital experiences, impact business Today more than ever, people are saying, “Don’t waste what I value the most—my time.” This is why digital technology adoption has become so person-centric over the past decade. All these advancements have made the average digital citizen more than a
Slide 9: In digital experiences, relevance refers to how closely content aligns with user intent
HYBRID SEARCH, DISCOVERY PERSONALIZED AI GENERATIVE ANSWERING, NEXT BEST QUESTIONS, GENERATIVE PRODUCT & DYNAMIC NAVIGATION RECOMMENDATIONS CONVERSATIONS, ADVICE, SOURCES & CITATIONS & CATEGORY RECOMMENDATIONS In digital experiences, RELEVANCE refers to how closely enterprise content, products, reco
Slide 10: Unified AI-Relevance sets a new bar for remarkable experiences
One “intent” box THE UNIVERSAL DX CONTENT ENGAGEMENT PARADIGM User queries or questions, AI-suggestions HYBRID SEARCH, DISCOVERY Generated answer for you GENERATIVE ANSWERING, NEXT BEST & DYNAMIC NAVIGATION QUESTIONS, CONVERSATIONS, ADVICE, SOURCES & CITATIONS Unified Learn more: 1 2 IN-LINE SOURCES
Slide 11: AI enables Persona to Person
AI enables Persona to Person You have to bring your entire enterprise, your best foot forward, to every person, all day, every day …while each digital journey, each person is different, and data is everywhere 11 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 12: Customers report significant financial benefits with the Coveo AI-Relevance Platform
Our customers report realizing significant financial benefits, fast, with the Coveo AI-Relevance Platform Commerce – includes Coveo AI-Merchandising(1) Knowledge – includes Coveo Relevance-Augmented Generation(1) +10% +9.6% +5.5% 21% €8M $3.5M Conversion Rate Conversion Rate Average Order Value Redu
Slide 13: Only AI-Relevance can solve the digital experience challenge at enterprise scale
Only AI-Relevance high volume and variety Revenue & Costs can solve the and sources of content or products Business digital experience Content outcomes challenge at enterprise scale Complex Indexing, Embeddings, Security • Hundreds of thousands of products • Millions of documents – structured / unst
Slide 14: Coveo AI-Relevance Platform
TM Coveo AI-Relevance Platform 15+ years of Search & AI Relevance innovation TM One single AI-Relevance platform The Coveo Coveo AI-Relevance Platform combines the power of unified secure indexing and vectorization with the A history of industry 1st and leadership precision of hybrid search, relevan
Slide 15: Relevance is poor & disjointed across points-of-experience
Relevance is poor & disjointed across points-of-experience Multiple search engines, sources of truth, answers and relevance across digital journeys… WEBSITES PORTALS B2B COMMERCE B2C COMMERCE STORE ASSOCIATES SALES DEALER SUPPORT IN-PRODUCT SELF-SERVICE PORTALS CONTACT CENTERS FIELD SERVICE KNOWLEDG
Slide 16: One Coveo AI-Relevance Platform
Relevance is poor & disjointed across points-of-experience Multiple search engines, sources of truth, answers and relevance across digital journeys… WEBSITES PORTALS B2B COMMERCE B2C COMMERCE STORE ASSOCIATES SALES DEALER SUPPORT IN-PRODUCT SELF-SERVICE PORTALS CONTACT CENTERS FIELD SERVICE KNOWLEDG
Slide 17: Examples of recent customers live with Relevance-Augmented Generation
Examples of recent customers live & large-scale deployments of Coveo Relevance-Augmented Generation within their digital experiences The vast majority are Salesforce, ServiceNow, and/or Genesys, SAP, Oracle, etc. customers… Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFID
Slide 18: Q3 Update: Momentum in Commerce, Significant Wins
Record number of new Q3 Update: clients in commerce including Momentum in Commerce Significant Wins 50% of new commerce customers wins coming from partnership with 18 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 19: Q3 Update: Generative AI Progress
36% sequential increase in Q3 Update: generative AI customers Generative AI Progress Driving Selected wins Measurable Financial Benefits Existing customers are expanding GenAI 19 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 20: Delivering AI capabilities across CX channels from Commerce to Customer Service
Delivering AI Expanded partnership with SAP capabilities across SERVICE CLOUD CX channels from COMMERCE CLOUD Commerce to Customer Service 20 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 21: Growing momentum with key partners
Growing momentum with key partners Precise answers in service interactions help reduce service costs and improve customer satisfaction. Coveo’s extensive connectivity to content sources and its capability to add relevance to this content is a key enabler for enterprise customers with complex search
Slide 22: Leadership Announcements
Leadership Announcements Louis Têtu Laurent Simoneau John Grosshans Marc Sanfaçon Chairman and CEO Founder, President and CTO CRO SVP Technology Executive CEO COO CTO chairman 22 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 23: Innovation
Innovation Laurent Simoneau Founder, President & CTO, Coveo
Slide 24: A powerful AI-Relevance Platform
A powerful AI-Relevance Platform 24 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 25: Hybrid/Semantic Search, AI-Powered Relevance, Generative AI
The market is increasingly recognizing that AI-Relevance Hybrid/Semantic Search is a critical gap in the tech stack. + AI-Powered Relevance Coveo has consistently proven that our AI-driven Relevance + generates tangible real-world Generative AI results. Together they are truly The true value of Rele
Slide 26: Unified AI-Relevance
WEBSITES PORTALS B2B COMMERCE B2C COMMERCE STORE ASSOCIATES SALES DEALER SUPPORT IN-PRODUCT SELF-SERVICE PORTALS CONTACT CENTERS FIELD SERVICE KNOWLEDGE MANAGEMENT INTRANETS EMPLOYEE EXPERIENCES Customer experiences [shopper, buyer, customer, partner, dealer, …] Employee experiences Websites Commerc
Slide 27: Natural Question Generative Answer & Citations
Natural Question Note the misspellings and the Does led 4 on KM901MAJ mean I need a new flote switch 4A3624.02? improper part # formatting Shop Resource Center Generative Answer & AI Generated answer Citations Not necessarily. If LED 4 is the only one lit it could indicate issues Clear and direct an
Slide 28: Chat / Agent
Chat / Agent Does led 4 on KM901MAJ mean I need a new flote switch 4A3624.02? Chat Conversation – LED 4 Does led 4 on KM901MAJ mean I need a new flote Shop Resource Center switch 4A3624.02? Sent – 10:32 PM AI Generated answer Not necessarily. If LED 4 is the only one lit it could indicate issues Not
Slide 29: Generated Answer based on content
Generated Answer based on content Automatic facet selector Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 30: Search results with AI Relevance
Search results with AI Relevance Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 31: Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 32: Generated Answer based on content: Sources & Citations
Generated Answer based on content Sources & Citations Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 33: Product Categories linked to content
Product Categories linked to content Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 34: Q3 Financial Highlights
Q3 Financial Highlights Brandon Nussey Chief Financial Officer, Coveo
Slide 35: Q3 FY'25 Highlights
Q3 FY’25 Highlights $32.3M 12% (2) 95% Q3 FY’25 SaaS Q3 FY’25 SaaS Subscription Q3 FY’25 SaaS Subscription Revenue(1) Revenue(1) Growth Subscription Revenue(1) (Coveo core Platform) (as a % of Total Revenue) (Year-over-Year) 105% (2) 82% ($0.2M) Net Expansion Rate(1) Q3 FY’25 Product Q3 FY’25 Cash F
Slide 36: Revenue Growth
Revenue Growth USD millions Q3 FY’25 Q3 FY’24 YoY SaaS Subscription Revenue(1) $32.3 $29.9 8% Coveo core Platform(2) $31.1 $27.8 12% Qubit Platform(3) $1.2 $2.1 (44%) Professional Services Revenue $1.7 $1.9 (10%) Total Revenue $34.0 $31.8 7% (1) SaaS Subscription Revenue is a Key Performance Indicat
Slide 37: Gross Profit Measures
Gross Profit Measures % Q3 FY’25 Q3 FY’24 Gross Margin 78% 77% Adjusted Gross Margin(1) 80% 78% Product Gross Margin 82% 81% Adjusted Product Gross 82% 82% 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 38: Profitability Measures
Profitability Measures USD millions Q3 FY’25 Q3 FY’24 Net income (loss) $4.0 ($6.2) Adjusted EBITDA(1) $0.6 $(0.7) Cash Flows used in Operating $0.2 $2.3 Activities (1) Adjusted EBITDA is a non-IFRS measure. Please refer to the "Non-IFRS Measures and Ratios" section of the disclaimer to this Present
Slide 39: Q4 FY'25 and Full Year Guidance
Q4 FY’25 and Full Year Guidance USD millions Q4 FY’25 Full Year FY’25 SaaS Subscription Revenue(1) $32.3 – $32.8 $126.3 – $126.8 Total Revenue $34.1 – $34.6 $133.0 – $133.5 Adjusted EBITDA(2) $0.0 – $1.0 $0.3 – $1.3 The company also expects to achieve positive cash flow from operations of approximat
Slide 40: Q&A Session
Q&A Session 41 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 41: Appendix
Appendix 42 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 42: Condensed Interim Consolidated Statements of Income (Loss)
Condensed Interim Consolidated Statements of Income (Loss) (in thousands of US dollars, except share and per share data, unaudited) 43 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 43: Condensed Interim Consolidated Statements of Income (Loss)
Condensed Interim Consolidated Statements of Income (Loss) (in thousands of US dollars, unaudited) 44 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 44: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands of US dollars, unaudited) Adjusted EBITDA is defined as net income or net loss, excluding interest, taxes, depreciation of property and equipment and right-of-use-assets, amortization and impairment of intangible assets (or EBITDA)
Slide 45: Reconciliation of Adjusted Gross Profit and 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 46: Reconciliation of 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 47: Condensed Interim Consolidated Statements of Financial Position
Condensed Interim Consolidated Statements of Financial Position (in thousands of US dollars, unaudited) 48 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 48: Condensed Interim Consolidated Statements of Cash Flows
Condensed Interim Consolidated Statements of Cash Flows (in thousands of US dollars, unaudited) 49 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2025
Slide 49: 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