Coveo Solutions, Inc. · TSX:CVO
Coveo Solutions — Q4 2024 Earnings Presentation
31 slides from Coveo Solutions's earnings presentation, Jun 3, 2024
Slide 1: For the three months and the year ended March 31, 2024
For the three months and the year ended March 31, 2024 June 3, 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 annual audited consolidated financial statements for the fiscal
Slide 3: Louis Têtu, Chairman and CEO
Louis Têtu Chairman and CEO, Coveo
Slide 4: Q4 FY'24 Highlights
Q4 FY’24 Highlights US $30.7M 18% (1) +US$4.6M Q4 FY’24 SaaS Q4 FY’24 SaaS Subscription Q4 FY’24 Cash flows Subscription Revenue(2) Revenue(2) Growth from operating activities (Coveo core platform) (Year-over-Year) US $0.2M US ($4.1M) 82% Q4 FY’24 Adjusted EBITDA(3) Q4 FY’24 Net Loss Q4 FY’24 Produc
Slide 5: The capabilities of Generative AI took the world by storm
The capabilities of Generative AI took the world by storm and became the catalyst for an unprecedented interest from global enterprises in adopting AI. 5 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2023 2024
Slide 6: Generative AI changed everything, and Coveo is well positioned
Generative AI changed everything, and Coveo is well positioned November 23 The importance RAG and AI First public advocacy MAJOR DISRUPTION of Coveo Relevance-Augmented Search becomes critical to OpenAI ChatGPT takes the Generative Answering in full production successful GenAI deployments world by s
Slide 7: Digital experience economy is today's competitive front line
We are immersed in the digital experience economy is today’s competitive front line A make-or-break for every business 7 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 8: Xero testimonial: from test to global support rollout
What started with a test turned quickly into rolling out to our global support platform, Xero Central, and the transformation is outstanding. Nigel Piper, Executive General Manager at Xero 8 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 9: The future is Business-to-Person Commerce
Shopping, Selecting, The future is Buying Business-to-Person Commerce In-store Commerce Marketplace / App Store Chatbots Communities Service Self-service, powered by AI Search B2C Commerce In-App Resolution intelligence, Case deflection and Generative AI Partner and Dealer Portals at every Point-of-
Slide 10: The AI-Experience Advantage
Degree to which the content, products, The recommendations, and advice presented AI-Experience to a person online aligns easily with their needs, Advantage intent, preferences, context, and behavior, while driving superior business outcomes Relevance Optimized to each person for the business Experie
Slide 11: Relevance-Augmented Generative Answering Q4 Update
Relevance-Augmented Generative Answering Q4 Update Opportunity Across Every Use Case Cumulative Pipeline Generation ($M) Opportunity to cross-sell Relevance Generative Answering to majority of install base customer across every use case Accelerating momentum with customers, with more than 75 project
Slide 12: New customer wins and bookings
One of the worlds largest tech companies New A large financial software provider customer wins and bookings A global distributor of Several other security products and Generative AI deals services in the service and workplace areas 12 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary
Slide 13: Brandon Nussey, Chief Financial Officer
Brandon Nussey Chief Financial Officer
Slide 14: FY'24 Highlights
FY’24 Highlights US $126M 94% 19% (1) FY’24 Total Revenue SaaS Subscription FY’24E SaaS Subscription Revenue(2) as a % of Revenue(2) Growth Total Revenue (Coveo core platform) (Year-over-Year) 107% (1) 82% +US $4M Net Expansion Rate(2) FY’24 Product FY’24 Cash flows (Coveo core platform) Gross margi
Slide 15: Revenue Growth
Revenue Growth USD millions Q4 FY’24 Q4 FY’23 YoY FY 2024 FY 2023 YoY SaaS Subscription Revenue (1) $30.7 $27.1 13% $118.6 $103.0 15% Coveo core platform (2) $28.7 $24.2 18% $109.1 $91.4 19% Qubit platform (3) $2.0 $2.9 (30%) $9.5 $11.6 (18%) Professional services Revenue $1.8 $2.0 (8%) $7.5 $8.1 (8
Slide 16: Our Customer Success
Our Customer Success Gross Retention Rate (ex. Qubit)(3) Net Expansion Rate (1) Average: ∼95% 100% 107% 95% Net Expansion Rate(1) As of Mar. 31, 2024 90% Coveo core platform (2) 85% 103% 80% Net Expansion Rate(1) As of Mar. 31, 2024 75% Includes impact of the legacy Qubit churn FY23-Q1 FY23-Q2 FY23-
Slide 17: Gross Profit Measures
Gross Profit Measures % Q4 FY’24 Q4 FY’23 FY’24 FY’23 Gross Margin 79% 77% 78% 76% Adjusted Gross Margin(1) 80% 78% 79% 77% Product Gross Margin 82% 81% 82% 81% Adjusted Product Gross 83% 82% 82% 82% Margin(1) (1) Adjusted Gross Margin and Adjusted Product Gross Margin are non-IFRS financial ratios.
Slide 18: Profitability Measures
Profitability Measures USD millions Q4 FY’24 Q4 FY’23 FY’24 FY’23 Net Loss ($4.1) ($7.2) ($23.6) ($39.7) Operating Loss ($5.5) ($8.8) ($29.7) ($44.4) Adjusted Operating Loss(1) ($0.8) ($4.4) ($6.3) ($20.4) Adjusted EBITDA(1) $0.2 ($3.4) ($2.4) ($16.3) (1) Adjusted Operating Loss and Adjusted EBITDA
Slide 19: Significant Earnings Leverage
YoY Change in Total Revenue and Adjusted EBITDA(1) Significant $14.1M $13.9M Earnings Leverage ~100% of revenue growth flowed directly to Adjusted EBITDA(1) $3.5M $3.5M Increase in Total Revenue Increase in Adjusted EBITDA Q4 FY'24 FY'24 (1) Adjusted EBITDA is a non-IFRS measure. Please refer to the
Slide 20: Reaching Cash Flow Positive
Reaching Adjusted EBITDA(1) and Cash Flows from Operating Activities Cash Flow +85% +167% Positive $ 4.2M Adjusted EBITDA Cash flows from operating activities ($ 2.4M) ($ 6.3M) 85% improvement in Adjusted EBITDA(1) in FY24; reaching Adjusted EBITDA(1) positive in Q4 167% improvement in Cash Flows fr
Slide 21: Q1 FY'25 and Full Year Guidance
Q1 FY’25 and Full Year Guidance USD millions Q1 FY’25 Full Year FY’25 SaaS Subscription Revenue(1) $30.2 – $30.5 $126.0 – $130.0 Total Revenue $31.8 – $32.1 $133.0 – $138.0 Adjusted EBITDA(2) ($2.2) – ($2.7) $0.0 – $4.0 The company expects to achieve positive cash flow from operations of approximate
Slide 22: Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
22 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 23: Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
23 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 24: Consolidated Statements of Loss and Comprehensive Loss
Consolidated Statements of Loss and Comprehensive Loss (in thousands of US dollars, except share and per share data, audited) 24 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 25: Consolidated Statements of Loss and Comprehensive Loss
Consolidated Statements of Loss and Comprehensive Loss (in thousands of US dollars, audited) 25 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 26: Reconciliation of Net Loss to Adjusted Operating Loss and Adjusted EBITDA
Reconciliation of Net Loss to Adjusted Operating Loss and Adjusted EBITDA (in thousands of US dollars) “Adjusted Operating Loss” is defined as operating loss excluding share-based payment and related expenses, amortization and impairment of acquired intangible assets, acquisition-related compensatio
Slide 27: 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) “Adjusted Gross Profit”, “Adjusted Product Gross Profit”, and “Adjusted Professional Services Gross Profit” are respectively defined as gross profit, product gross profit, and professiona
Slide 28: Reconciliation of 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 29: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position (in thousands of US dollars, audited) 29 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 30: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (in thousands of US dollars, audited) 30 Copyright © Coveo Solutions Inc. All rights reserved. Proprietary and CONFIDENTIAL 2024
Slide 31: 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