Coveo Solutions, Inc. · TSX:CVO
Coveo Solutions — Q1 2025 Earnings Presentation
27 slides from Coveo Solutions's earnings presentation, Aug 7, 2024
Slide 1: Q1 Fiscal 2025 Financial Results
Q1 Fiscal 2025 Financial Results For the three months ended June 30, 2024 August 7, 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 June 3, 2024 (the “AIF”), as well as in our condensed interim consolidated financial statements (unaudited)
Slide 3: Q1 Performance Highlights
Q1 Performance Highlights Louis Têtu Chairman and CEO, Coveo
Slide 4: Q1 FY'25 Highlights
Q1 FY’25 Highlights $32.2M 12% (1) 82% Q1 FY’25 Total Revenue Q1 FY’25 SaaS Subscription Q1 FY’25 Product Revenue(2) Growth Gross Margin (Coveo core Platform) (Year-over-Year) ($1.7M) ($6.1M) $3.0M Q1 FY’25 Adjusted EBITDA(3) Q1 FY’25 Net Loss Q1 FY’25 Cash Flows from Operating Activities (1) Exclud
Slide 5: Select Customer Wins and Progress: Q1 Update
Select Customer Wins and Progress: Q1 Update Signed GenAI lands with Trinity Life Sciences over 30 and a leading global generative AI manufacturer of GPUs deals in total since launch Expand transaction with F5 Networks Last to hype, first to results 5 Copyright © Coveo Solutions Inc. All rights rese
Slide 6: The Power of Coveo AI
The Power of Coveo AI 5% 80% 64% reduction in customer reduction in the decrease in content service cases number of searches gaps per customer visit 23% 11% 14% click - through rate improvement in improvement in self-service improvement in online self-service success success rate in their customer c
Slide 7: Query volume from Relevance Generative Answering has increased 10x
The volume of queries from Relevance Generative Answering has increased 10x since January 2024 7 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 8: Select Customer Wins and Progress: Q1 Update
Select Customer Wins and Progress: Q1 Update Significant EMEA: expansion with a Best bookings quarter Top 5 US bank since FY’23, and momentum with SAP Robust net-new New lands with customer pipeline Thalia and generation, with more Carlton One than 2x increase quarter-over-quarter in new customer Ge
Slide 9: Strengthening our Leadership Position in Applied AI
Strengthening our Leadership Position in Applied AI Coveo Named a Leader and Positioned Highest on the Ability to Execute axis Coveo for Genesys Cloud Gartner, Magic Quadrant for Search and Product Discovery, Mike Lowndes and 3 others, 13 May 2024. Gartner is a registered trademark and service mark
Slide 10: Ready for the Future
COVEO INDUSTRY REPORT RESULTS 2024 CX Industry Report Ready for 61% of consumers believe effective search significantly impacts brand perception the Future Bringing AI to every 2024 EX Industry Report Point-of-Experience 40% of employees see GenAI as a way to enhance their work efficiency 2024 Comme
Slide 11: New Sales Leadership: Investing in Growth
New Sales Leadership: Investing in Growth John Grosshans | Chief Revenue Officer Over 30 years of global sales management in SaaS, recently as CRO and SVP at Palo Alto Networks Led companies to $1B+ revenue four times, managed sales teams of 600+ 11 Copyright © Coveo Solutions Inc. All rights reserv
Slide 12: Q1 Financial Highlights
Q1 Financial Highlights Brandon Nussey Chief Financial Officer, Coveo
Slide 13: Q1 FY'25 Highlights
Q1 FY’25 Highlights $30.6M 12% (2) 95% Q1 FY’25 SaaS Q1 FY’25 SaaS Subscription Q1 FY’25 SaaS Subscription Revenue(1) Revenue(1) Growth Subscription Revenue(1) (Coveo core Platform) (as a % of Total Revenue) (Year-over-Year) 106% (2) 82% $3.0M Net Expansion Rate(1) Q1 FY’25 Product Q1 FY’25 Cash Flo
Slide 14: Revenue Growth
Revenue Growth USD millions Q1 FY’25 Q1 FY’24 YoY SaaS Subscription Revenue(1) $30.6 $28.5 7% Coveo core Platform(2) $28.7 $25.7 12% Qubit Platform(3) $1.9 $2.9 (34%) Professional Services Revenue $1.7 $2.0 (17%) Total Revenue $32.2 $30.5 6% (1) SaaS Subscription Revenue is a Key Performance Indicat
Slide 15: Gross Profit Measures
Gross Profit Measures % Q1 FY’25 Q1 FY’24 Gross Margin 78% 78% Adjusted Gross Margin(1) 79% 79% Product Gross Margin 82% 82% Adjusted Product Gross 82% 83% 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 16: Profitability Measures
Profitability Measures USD millions Q1 FY’25 Q1 FY’24 Net Loss ($6.1) ($7.0) Adjusted EBITDA(1) ($1.7) ($1.8) Cash Flows from Operating $3.0 $1.0 +200% Activities YoY (1) Adjusted EBITDA is a non-IFRS measure. Please refer to the "Non-IFRS Measures and Ratios" section of the disclaimer to this Prese
Slide 17: Q2 FY'25 and Full Year Guidance
Q2 FY’25 and Full Year Guidance USD millions Q2 FY’25 Full Year FY’25 SaaS Subscription Revenue(1) $30.6 – $31.0 $126.0 – $130.0 Total Revenue $32.0 – $32.4 $133.0 – $138.0 Adjusted EBITDA(2) ($0.5) – $0.0 $0.0 – $4.0 The company expects to achieve positive cash flow from operations of approximately
Slide 18: Q&A Session
Q&A Session 18 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 19: Appendix
Appendix 19 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 20: 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) 20 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 21: Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (in thousands of US dollars, unaudited) 21 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 22: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA (in thousands of US dollars, unaudited) Adjusted EBITDA is defined as net loss, excluding interest, taxes, depreciation of property and equipment and right-of-use-assets, amortization and impairment of intangible assets (or EBITDA), adjusted for stock-ba
Slide 23: 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 profes
Slide 24: 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 25: Condensed Interim Consolidated Statements of Financial Position
Condensed Interim Consolidated Statements of Financial Position (in thousands of US dollars, unaudited) 25 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 26: Condensed Interim Consolidated Statements of Cash Flows
Condensed Interim Consolidated Statements of Cash Flows (in thousands of US dollars, unaudited) 26 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
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