Q2 2025 Coveo Solutions Inc Earnings Call Transcript
Key Points
- Coveo Solutions Inc (CVOSF) exceeded its guidance for the second quarter of fiscal 2025, delivering SaaS subscription revenue of $31.2 million.
- The company reported positive cash flows from operations amounting to $1.4 million and an improved adjusted EBITDA of $1.5 million.
- Coveo Solutions Inc (CVOSF) has seen significant growth in its generative AI solutions, with a 50% increase in customers using its relevant augmented generative answering solution.
- The company has established strong partnerships with major platforms like Shopify, SAP, and AWS, enhancing its market reach and credibility.
- Coveo Solutions Inc (CVOSF) has successfully launched new innovations, such as the relevant augmented passage retrieval API, which is attracting promising initial demand.
- The company is experiencing some headwinds with enterprise customers being budget-sensitive, leading to lower net expansion rates than planned.
- Coveo Solutions Inc (CVOSF) is facing challenges with churn in the SaaS revenue from the platform acquired from Qubit, which declined by 51%.
- Despite positive bookings, the company is maintaining its annual guidance towards the lower to mid-point of the range, indicating cautious optimism.
- There are ongoing challenges in the enterprise software budgetary environment, which could impact future growth if not improved.
- The company has had to deal with a few M&A-related transactions in its customer base, resulting in lost revenue.
Good afternoon. My name is Jerry and I will be your conference operator today. At this time, I would like to welcome everyone to the Coveo's second-quarter fiscal 2025 financial results conference call. (Operator Instructions) This call is being recorded on Monday, November 4, 2024.
I'll now turn the line over to James Bowen, Head of Investor Relations. Mr. Bowen. You may begin your conference.
Good afternoon and thank you for joining us for Coveo's second-quarter, fiscal 2025 financial results conference call and webcast. With me today are Louis Tetu, Coveo's Chairman and Chief Executive Officer; and Brandon Nussey, Chief Financial Officer. As a reminder that remarks made on 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 third quarter and fiscal-year 2025.
These forward-looking statements are given as of today and while we believe any statements we
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