Coveo Solutions, Inc. · TSX:CVO
Coveo Solutions — Q3 2023 Earnings Presentation
26 slides from Coveo Solutions's earnings presentation, Feb 6, 2023
Slide 1: Fiscal 2023 Q3 Financial Results
Fiscal 2023 Q3 Financial Results For the three months ended December 31, 2022 February 6, 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 Market, Industry, and Other Data Disclaimer our Annual Information Form dated June 14, 2022 (the “AIF”), as well as in our unaudited condensed interim c
Slide 3: Q3 Performance Highlights
Q3 Performance Highlights Louis Têtu Chairman and CEO
Slide 4: Q3 FY'23 Highlights
Q3 FY’23 Highlights 25% 23% SaaS Subscription Total Revenue Growth Revenue(1) Growth 107% $3.9M Net Expansion Rate(1) Adjusted Operating Loss(2) (1) SaaS Subscription Revenue and Net Expansion Rate are Key Performance Indicators of Coveo. Please refer to the "Definition of Key Performance Indicators
Slide 5: Customer Land Highlights
Customer Land Highlights Commerce Global Direct Seller Power Transmission Manufacturer Operating in ~100 countries Used in several critical Largest land transaction to-date industries globally Service and Platform Semiconductor and Multinational Telecommunications Pharmaceutical Company Services Com
Slide 6: Customer Expand Highlights
Customer Expand Highlights American Healthcare Multinational Large Home Improvement Services Company Oil & Gas Company Retail Chain 6 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 7: A Top-3 Global Consumer Electronics Manufacturer
A Top-3 Global Consumer Electronics Manufacturer Post implementation, the single region had Industry: Consumer electronics and home appliances >200,000 employees and revenue of ~USD $60B their biggest sales day to-date Coveo partnered with a leading electronics company (Black Friday) focused on deve
Slide 8: One of the Largest DIY and Home Hardware Chains in Oceania
One of the Largest DIY and Home Hardware Chains in Oceania Industry: Home Improvement and Hardware >50,000 employees and revenue of ~USD $15B For almost two years, the company has been utilizing Coveo's Relevance Platform and machine learning capabilities Use of Coveo: Reported millions of dollars W
Slide 9: A Global Leader in Network Security and Related Technologies
A Global Leader in Network Security and Related Technologies Industry: IT Security >250,000 customers, 17,000 security resellers, and ~100 service agents Deployed nearly a million of its integrated, multi-function threat management appliances worldwide, to businesses that range from SMEs to large di
Slide 10: New Product Features: Coveo Relevance Cloud
New Product Features: Coveo Relevance Cloud TM New Coveo Merchandising Hub Intelligent, Out-of-the-Box Analysis and Developer Tools (announced Jan. 11/’23) Facet Generator within Snowflake • The integration of Qubit into the • Coveo’s AI delivers a smart, • Real-time access to Coveo Analytics Coveo
Slide 11: Q3 Financial Highlights
Q3 Financial Highlights Jean Lavigueur CFO
Slide 12: Revenue Growth
Revenue Growth USD millions, except % Q3 FY’23 YoY Total Revenue $28.5 23% SaaS Subscription Revenue $26.4 25% % of Total Revenue 93% Self-Managed Licenses and Maintenance $0.3 (39%) % of Total Revenue 1% Professional Services $1.8 13% % of Total Revenue 6% 12 Copyright © Coveo Solutions Inc. All ri
Slide 13: Key Performance Indicators
Key Performance Indicators 25% Q3 FY’23 SaaS Subscription Revenue (1) Growth 26.4 (Year-over-Year) $92.1M, up 28% YoY 21.2 Current SaaS Subscription Remaining Performance Obligations(1) $ millions As of Dec. 31, 2022 107% Net Expansion Rate(1) As of Dec. 31, 2022 Q3 FY'22 Q3 FY'23 (1) SaaS Subscript
Slide 14: Adjusted Gross Profit Measures
Adjusted Gross Profit Measures % Q3 FY’23 Q3 FY’22 Gross Profit 77% 74% Adjusted Gross Profit(1) 78% 76% Product Gross Profit 81% 79% Adjusted Product Gross Profit(1) 82% 80% Professional Services Gross Profit 9% 2% Adjusted Professional Services Gross Profit(1) 17% 18% (1) Adjusted Gross Profit (%)
Slide 15: Operating Loss
Operating Loss USD millions Q3 FY’23 Q3 FY’22 Operating Loss $(10.7) $(23.4) Adjusted Operating Loss(1) $(3.9) $(8.2) Net Income (Loss)(2) $(10.0) $426.3 (1) Adjusted Operating Loss is a non-IFRS measure. Please refer to the "Non-IFRS Measures and Ratios" section of the disclaimer to this Presentati
Slide 16: Q4 FY'23 and Full Year Guidance
Q4 FY’23 and Full Year Guidance USD millions, Q4 FY’23 Full Year FY’23 except shares outstanding SaaS Subscription Revenue(1) $26.6 – $27.1 $102.5 – $103.0 Total Revenue $28.6 – $29.1 $111.5 – $112.0 Adjusted Operating Loss(2) $5.0 – $6.0 $20.9 – $21.9 Weighted Average Shares 105.5 – 106.0 million 1
Slide 17: Q3 FY'23 Results Q&A
Q3 FY’23 Results Q&A 17 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 18: Appendix
Appendix 18 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 19: Condensed Interim Consolidated Statements of Income or Loss and Comprehensive Income or Loss
Condensed Interim Consolidated Statements of Income or Loss and Comprehensive Income or Loss (in thousands of US dollars, except share and per share data, unaudited) 19 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 20: Condensed Interim Consolidated Statements of Income or Loss and Comprehensive Income or Loss
Condensed Interim Consolidated Statements of Income or Loss and Comprehensive Income or Loss (in thousands of US dollars, unaudited) 20 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 21: Reconciliation of Adjusted Operating Loss to Operating Loss
Reconciliation of Adjusted Operating Loss to Operating Loss (in thousands of US dollars, unaudited) “Adjusted Operating Loss” is defined as operating loss excluding share-based payment and related expenses, amortization of acquired intangible assets, acquisition-related compensation, transaction-rel
Slide 22: Reconciliation of Adjusted Gross Profit Measures and Adjusted Gross Profit (%) Measures
Reconciliation of Adjusted Gross Profit Measures and Adjusted Gross Profit (%) 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,
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 2023
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 2023
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