Coveo Solutions, Inc. · TSX:CVO
Coveo Solutions — Q2 2024 Earnings Presentation
25 slides from Coveo Solutions's earnings presentation, Nov 6, 2023
Slide 1: Fiscal 2024 Q2 Financial Results
Fiscal 2024 Q2 Financial Results For the three months ended September 30, 2023 November 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 our Annual Disclaimer Information Form dated May 30, 2023 (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: Relevance Generative Answering Roll-out Program
Relevance Generative Answering Roll-out Program General Signed first five availability expected generative AI in December 2023 transactions in Q2 FY’24 ahead of GA Service Website Workplace Announced Preliminary early access for A/B testing results: B2B and B2C >20% improvement Commerce customers in
Slide 5: Xero unveils new GenAI-driven search
Xero unveils new GenAI-driven search Generated answers in Xero Central is the evolution of customer support and learning for 3.7M businesses subscribing to Xero Future GenAI rollout for employee support and knowledge management for Xero’s ~4,000 global employees 5 Copyright © Coveo Solutions Inc. Al
Slide 6: GenAI collaboration with a major U.S. home improvement retail chain
GenAI collaboration with a major U.S. home improvement retail chain Groundbreaking capability in Commerce Connects internal product documentation to product catalog, creating a rich guided product discovery experience for customers 6 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary
Slide 7: Additional Generative AI Wins New Lands
Additional Generative AI Wins New Lands Leader in chip design and Leading global B2B software security distributor of connector and Commerce GenAI for self-service sensor products Spatial data solutions leader Major retailer in Australia GenAI for self-service for next generation Service employee po
Slide 8: Coveo announces new AI and Generative Answering capabilities
June 28, 2023 | Montreal, QC and San Francisco, CA August 10, 2023 | Montreal, QC and San Francisco, CA Coveo’s AI Platform Earns Coveted ISO 27001 Certification: Setting the Standard for Security and Trust Caleres and Coveo AI Take Top Honors in Best Personalized Shopping Coveo’s market-leading AI
Slide 9: A decade of enriching our AI Platform
Daily SaaS innovation After a decade of enriching our AI Platform with forward-thinking global enterprises, we know what it Our SaaS model is a subscription to on-going takes to gain a trusted AI-Experience Advantage AI innovation and evergreen delivery Unified Journeys analytics, unified Ecommerce,
Slide 10: Q2 Financial Highlights
Q2 Financial Highlights Brandon Nussey CFO, Coveo
Slide 11: Revenue Growth
Revenue Growth USD millions, except % Q2 FY’24 YoY Total Revenue $31.2 12% SaaS Subscription Revenue(1) $29.4 15% % of Total Revenue 94% Professional Services $1.8 (17%) % of Total Revenue 6% (1) SaaS Subscription Revenue is a Key Performance Indicator of Coveo. Please refer to the "Definition of Ke
Slide 12: Key Performance Indicators
Key Performance Indicators 15% Q2 FY’24 SaaS Subscription Revenue (1) Growth 106% (Year-over-Year) 29.4 Net Expansion Rate(1) 25.5 As of Sept. 30, 2023 Includes impact of the legacy Qubit churn $ millions 111% Net Expansion Rate(1) As of Sept. 30, 2023 Excludes legacy Qubit-related attrition(2) (1)
Slide 13: Gross Profit Measures
Gross Profit Measures % Q2 FY’24 Q2 FY’23 Gross Margin 78% 76% Adjusted Gross Margin(1) 79% 78% Product Gross Margin 82% 82% Adjusted Product Gross Margin(1) 83% 83% (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 Q2 FY’24 Q2 FY’23 Operating Loss $10.2 $11.6 Generated $1M in cash Adjusted Operating Loss(1) $1.0 $4.7 from ops in Q1 FY’24 Net Loss $6.5 $9.9 (1) Adjusted Operating Loss is a non-IFRS measure. Please refer to the "Non-IFRS Measures and Ratios" section of the disclaimer
Slide 15: Q3 FY'24 and Full Year Guidance
Q3 FY’24 and Full Year Guidance USD millions Q3 FY’24 Full Year FY’24 SaaS Subscription Revenue(1) $29.1 – $29.6 $117.0 – $118.0 Total Revenue $30.9 – $31.4 $124.5 – $125.5 Adjusted Operating Loss(2) $2.5 – $3.5 $9.5 – $10.5 Following two consecutive quarters of positive cash flows from operating ac
Slide 16: Q&A Session
Q&A Session 16 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
Slide 17: Appendix
Appendix 17 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023
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 2023
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 2023
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 2023
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 2023
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