Coveo Solutions (CVO) investor relations material

Executive summary

• Revenue and adjusted EBITDA exceeded guidance, with strong positive cash flow and disciplined execution, as SaaS subscription revenue reached $37.4M in Q1 FY'27, up 13% year-over-year for the core platform, and total revenue at $38.5M, an 8% increase from Q1 FY'26.

• Achieved a milestone with the first customer generating over $10 million in annual subscription revenue, marking the largest transaction in company history and validating the strategy of building larger, strategic relationships.

• Operating cash flows improved to $9.2M, reflecting a focus on efficiency and profitability while investing in growth.

• The enterprise AI market is maturing, with customers demanding measurable business value and ROI from AI deployments, and Coveo's platform positioned as the intelligence layer for enterprise Experience AI.

• Strategic customer wins and expansions, including Fortune 500 and Global 500 companies, reinforce the platform's value and land-and-expand model.

Financial highlights

• SaaS subscription revenue for the core platform grew 13% year-over-year to $37.4M; total revenue increased 8% to $38.5M.

• Product gross margin was 81%, with overall gross margin at 78%.

• Adjusted EBITDA was $0.1M, improving from -$1.9M in the prior period.

• Operating cash flow was $9.2M; cash and equivalents stood at $107.1M with no debt.

• Net loss narrowed to $5.8M from $15.1M year-over-year.

Outlook and guidance

• Q2 FY'27 SaaS subscription revenue expected between $38.5M-$39M; total Q2 revenue between $39.7M-$40.2M.

• Full-year FY'27 SaaS subscription revenue guidance reaffirmed at $154M-$158M; total revenue expected at $160M-$164M.

• Q2 adjusted EBITDA projected at $0.5M-$1.5M; full-year adjusted EBITDA expected between $2M-$7M.

• Operating cash flows for the year expected to exceed $10M.