Q1 2025 Coveo Solutions Inc Earnings Call Transcript
Key Points
- Coveo Solutions Inc (CVOSF) exceeded its revenue guidance and outperformed profitability expectations for Q1 fiscal 2025.
- The company has signed over 30 generative AI deals with large enterprises, demonstrating significant ROI and double-digit gains.
- Coveo Solutions Inc (CVOSF) reported strong bookings performance in the EMEA region, marking its best quarter for bookings since fiscal 2023.
- The company achieved positive cash flow from operations of $3 million in Q1, up from $1 million a year ago.
- Coveo Solutions Inc (CVOSF) has a solid long-term business model with 95% of revenue coming from recurring SaaS subscriptions and high product gross margins.
- SaaS revenue for the platform acquired from Qubit declined by 34%, impacting total revenue growth.
- New bookings, while improved, are not yet at targeted levels, indicating potential challenges in achieving growth projections.
- The company continues to experience elongated sales cycles due to the market's ongoing discovery and validation phase for AI and GenAI technologies.
- Coveo Solutions Inc (CVOSF) expects ongoing attrition in Qubit SaaS subscription revenue, which will continue to impact overall revenue.
- Despite positive cash flow, the company reported an adjusted EBITDA loss of $1.7 million for the quarter.
My name is Ina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coveo first-quarter fiscal 2025 financial results conference call. (Operator Instructions)
Thank you. I'll now turn the line over to Nick Goode, Chief Business Officer at Coveo. Mr. Goode, you may begin your conference.
Good afternoon, and thank you for joining us today for Coveo's first-quarter fiscal 2025 financial results conference call and webcast. With me on the call are Louis Tetu, Coveo's Chairman and Chief Executive Officer; and Brandon Nussey, Chief Financial Officer.
A reminder that remarks made during today's call may be forward-looking statements within the meaning of applicable securities laws, including those regarding our plans, objectives, expected performance, and our outlook for the second quarter and fiscal year 2025. These forward-looking statements are given as of today, and while we believe any statements we make are reasonable, they are based on
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