Slide 1: Q3 Fiscal 2024 Financial Results
Q3 Fiscal 2024 Financial Results For the three months ended December 31, 2023 February 5, 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 May 30, 2023 (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: Relevance-Augmented Generative Answering Q3 Update
Relevance-Augmented Generative Answering Q3 Update Signed transactions at Now Live! an accelerating rate Live Links: Announced general Xero Central Support availability in Additional customer Coveo Partner Community December 2023 go-lives, including first Transactions in commerce closed across all s
Slide 5: 2 major financial services companies with $10 trillion in global assets
2 major financial services companies with 10 trillion in global assets under management Both using Coveo's GenAI Workplace solution for Workplace; Website one also using it for their Website Coveo's solution selected following comprehensive testing against other offerings Demonstrated value through
Slide 6: Collaboration with a major U.S. airline
Collaboration with a major U.S. airline Coveo chosen by leading U.S. airline for Relevance-Augmented Generative Answering on their website after extensive evaluation R&D's proof of concept, tested internally, Website achieved fast, accurate responses, easing pressure on the contact center Anticipate
Slide 7: Collaboration with a major U.S. cybersecurity enterprise
Collaboration with a major U.S. cybersecurity enterprise Collaboration aiming to boost customer self-service metrics by at least 20% and enhance agent Service effectiveness Chosen for the core platform's unified index, tight integrations, GenAI answer superiority, and established presence within the
Slide 8: Accelerating GenAI adoption in Q3
Accelerating GenAI adoption in Q3 including: A leader in A global electronic pharmaceutical system design company 8 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 9: Select New Transactions in Q3
Select New Transactions in Q3 Workplace Commerce Commerce Commerce Service Website Our largest An EU-based A major Canadian A key new customer multinational Canadian financial government deal with a in the fashion automotive services department global and fragrance distributor company responsible au
Slide 10: Q3 Financial Highlights
Q3 Financial Highlights Brandon Nussey Chief Financial Officer
Slide 11: Revenue Growth
Revenue Growth USD millions, except % Q3 FY’24 YoY Total Revenue $31.8 11% SaaS Subscription Revenue(1) $29.9 13% % of Total Revenue 94% Professional Services $1.9 3% % of Total Revenue 6% (1) SaaS Subscription Revenue is a Key Performance Indicator of Coveo. Please refer to the "Definition of Key P
Slide 12: Key Performance Indicators
Key Performance Indicators 13% Q3 FY’24 SaaS Subscription Revenue (1) Growth 105% (Year-over-Year) 29.9 Net Expansion Rate(1) 26.4 As of Dec. 31, 2023 Includes impact of the legacy Qubit churn $ millions 109% Net Expansion Rate(1) As of Dec. 31, 2023 Excludes legacy Qubit churn(2) (1) SaaS Subscript
Slide 13: Gross Profit Measures
Gross Profit Measures % Q3 FY’24 Q3 FY’23 Gross Margin 77% 77% Adjusted Gross Margin(1) 78% 78% Product Gross Margin 81% 81% Adjusted Product Gross Margin(1) 82% 82% (1) Adjusted Gross Margin and Adjusted Product Gross Margin are non-IFRS financial ratios. Please refer to the "Non-IFRS Measures and
Slide 14: Operating Loss
Operating Loss USD millions Q3 FY’24 Q3 FY’23 Operating Loss $6.5 $10.7 Generated $1M in cash Adjusted Operating Loss(1) $1.7 $3.9 from ops in Q1 FY’24 Net Loss $6.2 $10.0 (1) Adjusted Operating Loss is a non-IFRS measure. Please refer to the "Non-IFRS Measures and Ratios" section of the disclaimer
Slide 15: Q4 FY'24 and Full Year Guidance
Q4 FY’24 and Full Year Guidance USD millions Q4 FY’24 Full Year FY’24 SaaS Subscription Revenue(1) $30.2 – $30.7 $118.0 – $118.5 Total Revenue $32.1 – $32.6 $125.6 – $126.1 Adjusted Operating Loss(2) $2.0 – $3.0 $7.5 – $8.5 Coveo remains on track of its previous commitment to achieve positive operat
Slide 16: Q&A Session
Q&A Session 16 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 17: Appendix
Appendix 17 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 18: 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) 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, unaudited) 19 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 20: 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 and impairment of acquired intangible assets, acquisition-related compensation,
Slide 21: 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
Slide 22: 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 23: Condensed Interim Consolidated Statements of Financial Position
Condensed Interim Consolidated Statements of Financial Position (in thousands of US dollars, unaudited) 23 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 24: Condensed Interim Consolidated Statements of Cash Flows
Condensed Interim Consolidated Statements of Cash Flows (in thousands of US dollars, unaudited) 24 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 25: 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