Coveo Solutions, Inc. · TSX:CVO
Coveo Solutions — Q4 2023 Earnings Presentation
27 slides from Coveo Solutions's earnings presentation, May 30, 2023
Slide 1: Fiscal 2023 Q4 and Year End Financial Results
Fiscal 2023 Q4 and Year End Financial Results For the three and twelve months ended March 31, 2023 May 30, 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 Market, Industry, and Other Data Information Form dated May 30, 2023 (the “AIF”), as well as in our audited consolidated financial statements
Slide 3: Q4 Performance Highlights
Q4 Performance Highlights Louis Têtu Chairman and CEO
Slide 4: Q4 FY'23 Highlights
Q4 FY’23 Highlights 17% (19% in cc (1)) 14% (16% in cc(1)) SaaS Subscription Total Revenue Growth Revenue(2) Growth $4.3M 110% Adjusted Operating Loss(3) Net Expansion Rate(1) (1) SaaS Subscription Revenue growth at constant currency and total revenue growth at constant currency are non-IFRS ratios.
Slide 5: Coveo Relevance Generative Answering: Advancing Enterprise AI with LLMs
Coveo Relevance Generative Answering: Advancing Enterprise AI with LLMs Generative AI Coveo's Expertise in Coveo Relevance Enterprise LLM and LLMs Semantic AI and LLMs Generative Answering Challenges Addressed Revolutionizing and democratizing Pioneering the application of Integrates LLM technology
Slide 6: Customer Land Highlights
Leading SaaS Platform IT Security Provider Interactive, real-time content Provides software and creation for numerous industries Commerce Service hardware products globally Customer Land Highlights Leading Video Game Global Cooperative Websites Workplace Developer Provides products and services for
Slide 7: Multinational Food Corporation Subsidiary
Multinational Food Corporation Subsidiary Industry: Specialty Beverage ~15,000 employees and operating in over 80 countries Partnership with Coveo for search and recommendations in B2C and B2B eCommerce stores Growing partnership: Focuses on evaluating, piloting, and leveraging flexible and scalable
Slide 8: A Global Digital First Consumer Brands Group
A Global Digital First Consumer Brands Group Industry: eCommerce Founded in 2004 and Headquartered in Europe The Company’s purpose is to significantly improve how brands connect digitally to consumers Previous pilot program resulted in multi-million- dollar uplift in revenue alongside merchandising
Slide 9: Global Leader in Health Care and Lifesciences
Global Leader in Health Care and Lifesciences >60,000 employees and operating in more than 60 countries Partnership with a global leader in healthcare and life sciences for employee intranet Use of Coveo: Delivering a best-in-breed employee experience Implementation of Coveo's workplace solution acr
Slide 10: Product Enhancements: Coveo Relevance
Relevance Generative Answering Collaboration with Scale AI Industry-first capability leveraging multiple LLMs Partnership with a global AI innovation cluster for the enterprise-grade answering across funded by governments of Canada and Quebec various use cases Developing proprietary algorithms to en
Slide 11: Q4 Financial Highlights
Q4 Financial Highlights Brandon Nussey CFO
Slide 12: Revenue Growth
Revenue Growth USD millions, except % Q4 FY’23 YoY 14% Total Revenue $29.1 16% in cc(1) SaaS Subscription Revenue(2) $27.1 17% % of Total Revenue 93% 19% in cc(1) Professional Services $2.0 (4%) % of Total Revenue 7% (1) SaaS Subscription Revenue growth at constant currency and total revenue growth
Slide 13: Key Performance Indicators
Key Performance Indicators 17% (19% in cc*) Q4 FY’23 SaaS Subscription Revenue (1) Growth $95.3M, up 18% YoY (Year-over-Year) 27.1 Current SaaS Subscription 23.1 Remaining Performance Obligations(1) As of Mar. 31, 2023 $ millions 110% Net Expansion Rate(1) As of Mar. 31, 2023 (1) SaaS Subscription R
Slide 14: Adjusted Gross Profit Measures
Adjusted Gross Profit Measures % Q4 FY’23 Q4 FY’22 Gross Profit 77% 73% Adjusted Gross Profit(1) 78% 76% Product Gross Profit 81% 79% Adjusted Product Gross Profit(1) 82% 81% (1) Adjusted Gross Profit (%) and Adjusted Product Gross Profit (%) are non-IFRS financial ratios. Please refer to the "Non-I
Slide 15: Operating Loss
Operating Loss USD millions Q4 FY’23 Q4 FY’22 Operating Loss $8.8 $19.4 Adjusted Operating Loss(1) $4.3 $8.6 Net Loss $7.2 $19.4 (1) Adjusted Operating Loss is a non-IFRS measure. Please refer to the "Non-IFRS Measures and Ratios" section of the disclaimer to this Presentation, and to the "Reconcili
Slide 16: Q1 FY'24 and Full Year Guidance
Q1 FY’24 and Full Year Guidance USD millions Q1 FY’24 Full Year FY’24 SaaS Subscription Revenue(1) $27.9 – $28.4 $118.0 – $120.0 Total Revenue $29.9 – $30.4 $127.0 – $129.0 Adjusted Operating Loss(2) $4.0 – $5.0 $13.0 – $15.0 Coveo expects to achieve positive operating cash flow in fiscal year 2025
Slide 17: Q4 FY'23 Results Q&A
Q4 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: Consolidated Statements of Income or Loss and Comprehensive Income or Loss
Consolidated Statements of Income or Loss and Comprehensive Income or Loss (in thousands of US dollars, except share and per share data, audited) 19 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 20: Consolidated Statements of Income or Loss and Comprehensive Income or Loss
Consolidated Statements of Income or Loss and Comprehensive Income or Loss (in thousands of US dollars, audited) 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) “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 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) “Adjusted Gross Profit”, “Adjusted Product Gross Profit”, and “Adjusted Professional Services Gross Profit” are respectively defined as gross profit, product gross profit, and profess
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) “Adjusted Sales and Marketing Expenses”, “Adjusted Research and Product Development Expenses”, and “Adjusted General and Administrative Expenses” are respectively defined as
Slide 24: 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 25: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position (in thousands of US dollars, audited) 25 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 26: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (in thousands of US dollars, audited) 26 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 27: 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