Coveo Reports Second Quarter Fiscal 2025 Financial Results

In This Article:

SaaS Subscription Revenue(1) of $31.2 million, above the top end of previous guidance

Cash flows from operating activities of $1.4 million, a 72% improvement year-over-year

Generative Answering customer base grows more than 50% since June 30, 2024

New and Expanded Partnerships with Salesforce, AWS, and Shopify


Coveo reports in U.S. dollars and in accordance with International Financial Reporting Standards ("IFRS")

MONTREAL and SAN FRANCISCO, Nov. 4, 2024 /CNW/ - Coveo (TSX: CVO), the leading enterprise AI platform that brings AI search and generative AI ("GenAI") to every point-of-experience, enabling remarkable personalized digital experiences, today announced financial results for its second quarter of fiscal year 2025 ended September 30, 2024.

"After a period of thorough evaluation and education, we continue to witness a shift among enterprises towards the adoption of AI solutions that deliver proven results and strong ROI. Our second quarter further validated this trend, with robust demand from new and existing customers," said Louis Têtu, Chairman and CEO of Coveo. "We are building momentum as enterprises increasingly choose Coveo for personalized and efficient experiences that generate real business value. We are confident in our ability to sustain positive results and drive continued growth."

Second Quarter Fiscal 2025 Summary Financial Highlights

The following table summarizes our financial results for the second quarter of fiscal year 2025:

In millions of U.S. Dollars, except as otherwise indicated

Q2 2025

Q2 2024

Change

SaaS Subscription Revenue(1)

$31.2

$29.4

6 %

Coveo core Platform(2)

$29.9

$26.9

11 %

Qubit Platform(3)

$1.3

$2.5

(51 %)

Total revenue

$32.7

$31.2

5 %

Gross margin

79 %

78 %

1 %

Product gross margin

82 %

82 %

-

Net loss

($5.4)

($6.5)

17 %

Adjusted EBITDA(4)

$1.5

$0.0

-

Cash flows from operating activities

$1.4

$0.8

72 %

Second Quarter Fiscal 2025 Financial Highlights
(All comparisons are relative to the three-month period ended September 30, 2023, unless otherwise stated)

  • SaaS Subscription Revenue(1) of $31.2 million, an increase of 6% compared to $29.4 million, surpassing the top end of guidance. Within this, SaaS Subscription Revenue for Coveo's core Platform(2) was $29.9 million, an increase of 11%.

  • Total revenue was $32.7 million compared to $31.2 million, an increase of 5%, and above the top end of guidance.

  • Gross margin was 79%, up from 78% in the prior period. Product gross margin was 82%, consistent with the prior year.

  • Operating loss was $4.8 million compared to $10.2 million, and net loss was $5.4 million compared to $6.5 million.

  • Adjusted EBITDA(4) was $1.5 million compared to $0.0 million last year, and ahead of guidance.

  • Cash flows from operating activities were $1.4 million compared to $0.8 million, an increase of 72%.

  • Cash and cash equivalents were $128.2 million as of September 30, 2024.

  • Net Expansion Rate(1) of 100% as of September 30, 2024. Net Expansion Rate(1) was 104% excluding customer attrition from customers using the Qubit Platform(5).