Coveo Solutions Inc
TSX:CVO
Coveo Solutions Inc
Coveo Solutions, Inc. designs and develops enterprise search engine applications. The company is headquartered in Quebec City, Quebec. The company went IPO on 2021-11-18. Its software as a service (SaaS) native, multi-tenant platform injects search, recommendations, and personalization solutions into digital experiences. The company provides solutions for e-commerce, service, Website, and workplace applications. Its applied AI solutions enabling enterprises to deliver relevant digital experiences at scale. Its technology indexes massive amounts of data and content from a variety of siloed and disparate sources. Using behavioral analytics, machine learning, and deep learning, it leverages data to: understand context and deliver search, ranking, and navigation; anticipate likely outcomes and formulate recommendations to tailor every individual digital experience; and create personalized and content, culminating in 360 degrees of relevance.
Coveo Solutions, Inc. designs and develops enterprise search engine applications. The company is headquartered in Quebec City, Quebec. The company went IPO on 2021-11-18. Its software as a service (SaaS) native, multi-tenant platform injects search, recommendations, and personalization solutions into digital experiences. The company provides solutions for e-commerce, service, Website, and workplace applications. Its applied AI solutions enabling enterprises to deliver relevant digital experiences at scale. Its technology indexes massive amounts of data and content from a variety of siloed and disparate sources. Using behavioral analytics, machine learning, and deep learning, it leverages data to: understand context and deliver search, ranking, and navigation; anticipate likely outcomes and formulate recommendations to tailor every individual digital experience; and create personalized and content, culminating in 360 degrees of relevance.
Record Bookings: Coveo achieved record subscription and net bookings in Q3, marking the strongest new bookings performance in the company’s history.
Revenue Beat: Both total revenue and SaaS subscription revenue came in above guidance, with SaaS subscription revenue at $36.6 million (up 13% YoY), and total revenue at $38 million (up 12% YoY).
Guidance Raised: Full-year revenue and SaaS subscription revenue are now expected at the top end of the previous guidance range.
Large Customer Wins: Secured the largest new customer in company history—a 7-figure deal with a Fortune 500 industrial leader—and expanded with major brands like Deloitte, Cardinal Health, and United Airlines.
AI & Product Momentum: Strong adoption of generative AI and commerce solutions; notable launch of RAG-as-a-Service and strategic partnerships with Deloitte and the Canadian government.
Strong Expansion: Top 20 customers averaged over $1 million ARR and achieved a 3-year net expansion rate of nearly 150%.
Financial Strength: Gross margin stayed strong at 78%, with product gross margin at 81%. Cash position was $100.8 million with no debt.
Outlook: Q4 revenue guidance reflects the end of Qubit platform revenue and two fewer calendar days in the quarter, with expectations of continued positive operating cash flow and breakeven adjusted EBITDA.
