SaaS Subscription
Revenue(1) of $30.6
million, above the top end of previous guidance
Cash flows from operating activities of
$3.0 million, a 200% improvement
year-over-year
Continued momentum with Coveo Relevance
Generative Answering™
Coveo reports in U.S. dollars and in accordance with
International Financial Reporting Standards ("IFRS")
MONTREAL and SAN
FRANCISCO, Aug. 7, 2024 /PRNewswire/ -
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 first
quarter of fiscal year 2025 ended June 30,
2024.
"I was pleased with our first quarter financial performance,
which exceeded our revenue and profitability guidance," said Louis
Têtu, Chairman and CEO of Coveo. "Following a transformative fiscal
2024, our industry-leading AI platform continues to drive positive
business momentum. Most importantly, our customers are seeing
exceptional outcomes from using our platform, and we believe we are
well positioned against competitors when customers evaluate
generative AI solutions. We believe this will position us well for
success and a reacceleration of growth as we move through our
fiscal 2025."
First Quarter Fiscal 2025 Summary Financial
Highlights
The following table summarizes our financial results for the
first quarter of fiscal year 2025:
In millions of U.S.
Dollars, except as otherwise indicated
|
Q1 2025
|
Q1 2024
|
Change
|
SaaS Subscription
Revenue(1)
|
$30.6
|
$28.5
|
7 %
|
Coveo core
Platform(2)
|
$28.7
|
$25.7
|
12 %
|
Qubit
Platform(3)
|
$1.9
|
$2.9
|
(34 %)
|
Total
revenue
|
$32.2
|
$30.5
|
6 %
|
Gross margin
|
78 %
|
78 %
|
-
|
Product gross
margin
|
82 %
|
82 %
|
-
|
Net loss
|
($6.1)
|
($7.0)
|
12 %
|
Adjusted
EBITDA(4)
|
($1.7)
|
($1.8)
|
8 %
|
Cash flows from
operating activities
|
$3.0
|
$1.0
|
200 %
|
First Quarter Fiscal 2025 Financial Highlights
(All comparisons are relative to the three-month period ended
June 30, 2023, unless otherwise
stated)
- SaaS Subscription Revenue(1) of $30.6 million compared to $28.5 million, an increase of 7%, and above the
top end of guidance. Within this, SaaS Subscription Revenue for
Coveo's core Platform(2) was $28.7 million, an increase of 12%.
- Total revenue was $32.2 million
compared to $30.5 million, an
increase of 6%, and above the top end of guidance.
- Gross margin and product gross margin were 78% and 82%
respectively, consistent with the prior year.
- Operating loss was $8.2 million
compared to $7.6 million, and net
loss was $6.1 million compared to
$7.0 million.
- Adjusted EBITDA(4) was ($1.7)
million compared to ($1.8)
million, and ahead of guidance.
- Cash flows from operating activities were $3.0 million compared to $1.0 million, an increase of 200%.
- Cash and cash equivalents were $167.7
million as of June 30,
2024.
- Net Expansion Rate(1) of 101% as of June 30, 2024. Net Expansion Rate(1)
was 106% excluding customer attrition from customers using the
Qubit Platform(5).
Other Business and Subsequent Highlights
- Announced that John Grosshans, a
seasoned executive with extensive SaaS experience, has been
appointed as Chief Revenue Officer. Mr. Grosshans has more than 30
years of global sales management experience in numerous SaaS
verticals, including most recently cloud and applications.
- Coveo's Relevance Generative Answering™ product continues to
see strong momentum, and represented approximately 20% of new
bookings in the quarter. In addition to positive ongoing demand
from existing customers, Coveo has also now secured net new GenAI
customer wins.
- Won the "AI Search Innovation Award" in the seventh annual AI
Breakthrough Awards. This prestigious award is presented by AI
Breakthrough, a leading market intelligence organization that
recognizes the top companies, technologies and products in the
global AI market today.
- On July 12, Coveo announced that
it had completed the purchase of 6,493,506 of its subordinate
voting shares (including 45,343 multiple voting shares on an
as-converted basis) at C$7.70 per
share under its substantial issuer bid (commenced June 4, 2024), for an aggregate purchase price of
C$50 million, and that it had also
renewed its normal course issuer bid ("NCIB") and its Automatic
Securities Purchase Plan with a designated broker. Under the NCIB,
Coveo is allowed to buy back up to 2,690,573 of its subordinate
voting shares over the twelve-month period beginning on
July 17, 2024 and ending on
July 16, 2025.
Financial Outlook
Our financial outlook includes the assumption that the remaining
revenue from the acquired Qubit Platform will continue to decline,
as Coveo completes its integration of the platform and IP that was
acquired with Qubit. Coveo anticipates SaaS Subscription
Revenue(1), Total Revenue, and Adjusted
EBITDA(4) for Q2 FY'25 and fiscal year 2025 to be in the
following ranges:
|
Q2 FY'25
|
Full Year FY'25
|
SaaS Subscription
Revenue(1)
|
$30.6 – $31.0
million
|
$126.0 – $130.0
million
|
Total
Revenue
|
$32.0 – $32.4
million
|
$133.0 – $138.0
million
|
Adjusted
EBITDA(4)
|
($0.5) – $0.0
million
|
$0.0 – $4.0
million
|
The company continues to anticipate achieving positive cash flow
from operations of approximately $10
million for Fiscal 2025.
These statements are forward-looking and actual results may
differ materially. Coveo's outlook constitutes "financial outlook"
within the meaning of applicable securities laws and is provided
for the purpose of, among other things, assisting investors and
others in understanding certain key elements of our expected
financial results, as well as our objectives, strategic priorities
and business outlook, and in obtaining a better understanding of
our anticipated operating environment. Investors and others are
cautioned that it may not be appropriate for other purposes. Please
refer to the "Forward-Looking Information" and "Financial Outlook
Assumptions" sections below for additional information on the
factors that could cause our actual results to differ materially
from these forward-looking statements and a description of the
assumptions underlying same.
Q1 Conference Call and Webcast Information
Coveo will host a conference call today at 5:00 p.m. Eastern Time to discuss its financial
results for its first quarter of fiscal year 2025. The call will be
hosted by Louis Têtu, Chairman and CEO, and other members of its
senior leadership team.
Conference Call:
|
https://emportal.ink/3LxF68t
|
|
Use the link above to
join the conference call without operator assistance. If
you
prefer to have operator
assistance, please dial: 1-800-836-8184
|
Live Webcast:
|
https://app.webinar.net/ybgRj5DZOoW
|
Webcast
Replay:
|
ir.coveo.com under
the "News & Events" section
|
Non-IFRS Measures and Ratios
Coveo's unaudited condensed interim consolidated financial
statements have been prepared in accordance with IFRS as issued by
the International Accounting Standards Board. The information
presented in this press release includes non-IFRS financial
measures and ratios, namely (i) Adjusted EBITDA; (ii) Adjusted
Gross Profit, Adjusted Product Gross Profit, and Adjusted
Professional Services Gross Profit (collectively referred to as our
"Adjusted Gross Profit Measures"); (iii) Adjusted Gross Margin,
Adjusted Product Gross Margin, and Adjusted Professional Services
Gross Margin (collectively referred to as our "Adjusted Gross
Margin Measures"); (iv) Adjusted Sales and Marketing Expenses,
Adjusted Research and Product Development Expenses, and Adjusted
General and Administrative Expenses (collectively referred to as
our "Adjusted Operating Expense Measures"); and (v) Adjusted Sales
and Marketing Expenses (%), Adjusted Research and Product
Development Expenses (%), and Adjusted General and Administrative
Expenses (%) (collectively referred to as our "Adjusted Operating
Expense (%) Measures"). These measures and ratios are not
recognized measures under IFRS and do not have standardized
meanings prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies.
Rather, these measures and ratios are provided as additional
information to complement IFRS measures by providing further
understanding of the company's results of operations from
management's perspective.
Accordingly, these measures and ratios should not be considered
in isolation nor as a substitute for analysis of the company's
financial information reported under IFRS. Adjusted EBITDA,
the Adjusted Gross Profit Measures, the Adjusted Gross Margin
Measures, the Adjusted Operating Expense Measures, and the Adjusted
Operating Expense (%) Measures are used to provide investors with
supplemental measures and ratios of the company's operating
performance and thus highlight trends in Coveo's core business that
may not otherwise be apparent when relying solely on IFRS measures
and ratios. The company's management also believes that securities
analysts, investors, and other interested parties frequently use
non-IFRS financial measures and ratios in the evaluation of
issuers. Coveo's management uses non-IFRS financial measures and
ratios in order to facilitate operating performance comparisons
from period to period, and to prepare annual operating budgets and
forecasts.
See the "Non-IFRS Measures" section of our MD&A for the
quarter ended June 30, 2024, which is
available as of the date hereof under our profile on SEDAR+ at
www.sedarplus.ca for a description of these measures. Please refer
to the financial tables appended to this press release for
additional information including a reconciliation of (i) Adjusted
EBITDA to net loss; (ii) Adjusted Gross Profit to gross profit;
(iii) Adjusted Product Gross Profit to product gross profit; (iv)
Adjusted Professional Services Gross Profit to professional
services gross profit; (v) Adjusted Sales and Marketing Expenses to
sales and marketing expenses; (vi) Adjusted Research and Product
Development Expenses to research and product development expenses;
and (vii) Adjusted General and Administrative Expenses to general
and administrative expenses.
Key Performance Indicators
This press release refers to "SaaS Subscription Revenue" and
"Net Expansion Rate". They are operating metrics used in Coveo's
industry. We monitor our key performance indicators to help us
evaluate our business, measure our performance, identify trends,
formulate business plans, and make strategic decisions. Our key
performance indicators provide investors with supplemental measures
of our operating performance and thus highlight trends in our core
business that may not otherwise be apparent when relying solely on
IFRS measures. We also believe that securities analysts, investors,
and other interested parties frequently use industry metrics in the
evaluation of issuers. Certain of our key performance indicators
are measures that do not have any standardized meaning prescribed
by IFRS Accounting Standards and therefore may not be comparable to
similar measures presented by other issuers and cannot be
reconciled to a directly comparable IFRS measure. Our key
performance indicators may be calculated and designated in a manner
different than similar key performance indicators used by other
companies.
"SaaS Subscription Revenue" means the company's SaaS
subscription revenue, as presented in our financial statements in
accordance with IFRS.
"Net Expansion Rate" is calculated by considering a cohort of
customers at the end of the period 12 months prior to the end of
the period selected and dividing the SaaS Annualized Contract Value
("SaaS ACV", as defined below) attributable to that cohort at the
end of the current period selected, by the SaaS ACV attributable to
that cohort at the beginning of the period 12 months prior to the
end of the period selected. Expressed as a percentage, the ratio
(i) excludes any SaaS ACV from new customers added during the 12
months preceding the end of the period selected; (ii) includes
incremental SaaS ACV made to the cohort over the 12 months
preceding the end of the period selected; (iii) is net of the SaaS
ACV from any customers whose subscriptions terminated or decreased
over the 12 months preceding the end of the period selected; and
(iv) is currency neutral and as such, excludes the effect of
currency variation.
In this section and throughout this press release, "SaaS
Annualized Contract Value" means the SaaS annualized contract value
of a customer's commitments calculated based on the terms of that
customer's subscriptions, and represents the committed annualized
subscription amount as of the measurement date.
Please also refer to the "Key Performance Indicators" section of
our latest MD&A, which is available under our profile on SEDAR+
at www.sedarplus.ca, for additional details on the abovementioned
key performance indicators.
Forward-Looking Information
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
securities laws, including with respect to Coveo's "financial
outlook" (within the meaning of applicable securities laws) and
related assumptions (as set forth below and elsewhere in this press
release) for the three months ending September 30, 2024 and the year ending
March 31, 2025 (for greater
certainty, for cash flows from operations, solely the year ending
March 31, 2025), and expectations
regarding the remaining Qubit SaaS ACV, bookings performance and
gross retention rates for fiscal 2025 (collectively,
"forward-looking information"). This forward-looking information is
identified by the use of terms and phrases such as "may", "would",
"should", "could", "might", "will", "achieve", "occur", "expect",
"intend", "estimate", "anticipate", "plan", "foresee", "believe",
"continue", "target", "opportunity", "strategy", "scheduled",
"outlook", "forecast", "projection", or "prospect", the negative of
these terms and similar terminology, including references to
assumptions, although not all forward-looking information contains
these terms and phrases. In addition, any statements that refer to
expectations, intentions, projections, or other characterizations
of future events or circumstances contain forward-looking
information. Statements containing forward-looking information are
not historical facts but instead represent management's
expectations, estimates, and projections regarding future events or
circumstances.
Forward-looking information is necessarily based on a number of
opinions, estimates, and assumptions (including those discussed
under "Financial Outlook Assumptions" below and those discussed
immediately hereunder) that we considered appropriate and
reasonable as of the date such statements are made. Although the
forward-looking information contained herein is based upon what we
believe are reasonable assumptions, actual results may vary from
the forward-looking information contained herein. Certain
assumptions made in preparing the forward-looking information
contained in herein include, without limitation (and in addition to
those discussed under "Financial Outlook Assumptions" below): our
ability to capitalize on growth opportunities and implement our
growth strategy; our ability to attract new customers, expand our
relationships with existing customers, and have existing customers
renew their subscriptions; our ability to maintain successful
strategic relationships with partners and other third parties;
market awareness and acceptance of enterprise AI solutions in
general and our products in particular; the market penetration of
our new generative AI solutions, both with new and existing
customers, and our ability to capture the generative AI
opportunity; our future capital requirements, and availability of
capital generally; the accuracy of our estimates of market
opportunity, growth forecasts, and expectations around cash flow;
our success in identifying and evaluating, as well as financing and
integrating, any acquisitions, partnerships, or joint ventures; the
significant influence of our principal shareholders; and our
ability to convert pipeline into closed deals, and the timeframe
thereof. Moreover, forward-looking information is subject to known
and unknown risks, uncertainties, and other factors, many of which
are beyond our control, that may cause the actual results, level of
activity, performance, or achievements to be materially different
from those expressed or implied by such forward-looking
information, including but not limited to macro-economic
uncertainties and the risk factors described under "Risk Factors"
in the company's most recently filed Annual Information Form and
under "Key Factors Affecting our Performance" in the company's most
recently filed MD&A, both available under our profile on SEDAR+
at . There can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, prospective investors should not place
undue reliance on forward-looking information, which speaks only as
of the date made. Although we have attempted to identify important
risk factors that could cause actual results to differ materially
from those contained in forward-looking information, there may be
other risk factors not presently known to us or that we presently
believe are not material that could also cause actual results or
future events to differ materially from those expressed in such
forward-looking information.
You should not rely on this forward-looking information, as
actual outcomes and results may differ materially from those
contemplated by this forward-looking information as a result of
such risks and uncertainties. Additional information will also be
set forth in other public filings that we make available under our
profile on SEDAR+ at www.sedarplus.ca from time to time. The
forward-looking information provided in this press release relates
only to events or information as of the date hereof, and is
expressly qualified in their entirety by this cautionary statement.
Except as required by law, we do not assume any obligation to
update or revise any forward-looking information, whether as a
result of new information, future events, or otherwise, after the
date on which the statements are made or to reflect the occurrence
of unanticipated events.
Financial Outlook Assumptions
Our financial outlook under the "Financial Outlook" section
above and elsewhere in this press release is based on several
assumptions, including the following, in addition to those set
forth under the "Financial Outlook" section above and under the
"Forward-Looking Information" section above:
- The majority of the remaining Qubit SaaS ACV(6) will
churn by the end of the fiscal year, with the revenue impact being
that the SaaS Subscription Revenue(1) recognized in
fiscal 2025 for subscriptions to the Qubit Platform will decline by
approximately half.
- Bookings performance building during fiscal 2025, with the
second half exceeding the first half.
- Maintaining gross retention rates(7) at their
historical levels.
- Achieving expected levels of sales of SaaS subscriptions to new
and existing customers, including timing of those sales, as well as
expected levels of renewals of SaaS subscriptions with existing
customers.
- Achieving expected levels of implementations and other sources
of professional services revenue.
- Maintaining planned levels of operating margin represented by
our Adjusted Gross Profit Measures(4) and Adjusted Gross
Margin Measures(8).
- The market for our solutions showing ongoing improvements in
line with our expectations.
- Our ability to attract and retain key personnel required to
achieve our plans.
- Foreign exchange rates environment remaining consistent, and
similar or better inflation rates, interest rates, customer
spending, and other macro-economic conditions.
- Our ability to collect from our customers as planned, and to
otherwise manage our cash inflows (including government grants and
tax credits) and outflows as we currently expect.
- Expected financial performance as measured by our Adjusted
Operating Expense Measures(4) and Adjusted Operating
Expense (%) Measures(8).
Our financial outlook does not include the impact of
acquisitions that may be announced or closed from time to time.
Notes to this press
release:
|
(1)
|
SaaS Subscription
Revenue and Net Expansion Rate are Key Performance Indicators of
Coveo. Please see the "Key Performance Indicators" section
below.
|
(2)
|
SaaS Subscription
Revenue earned in connection with subscriptions by customers to the
Coveo core Platform for the period, and thus excluding revenue from
subscriptions to the Qubit Platform.
|
(3)
|
SaaS Subscription
Revenue earned through subscriptions to the Qubit Platform for the
period covered.
|
(4)
|
The Adjusted Gross
Profit Measures, the Adjusted Operating Expense Measures, and
Adjusted EBITDA are non-IFRS financial measures which may not be
comparable to similar measures or ratios used by other companies.
Please see the "Non-IFRS Measures and Ratios" section below and the
reconciliation tables within this release.
|
(5)
|
Net Expansion Rate
excluding the effect of SaaS ACV attributable to subscriptions to
the Qubit Platform.
|
(6)
|
SaaS ACV means the SaaS
annualized contract value of a customer's commitments calculated
based on the terms of that customer's subscriptions, and represents
the committed annualized subscription amount as of the measurement
date.
|
(7)
|
Gross retention rate
("GRR") is generally calculated for a period by subtracting SaaS
ACV contractions and losses over the period selected from SaaS ACV
at the beginning of the period selected and dividing the result by
the SaaS ACV from the beginning of the period selected. We use GRR
to provide insight into the company's success in retaining existing
customers.
|
(8)
|
The Adjusted Gross
Margin Measures, the Adjusted Operating Expense (%) Measures, and
Adjusted Product Gross Margin are non-IFRS ratios. Please see the
"Non-IFRS Measures and Ratios" section below and the reconciliation
tables within this release.
|
About Coveo
We strongly believe that the future is business-to-person. That
experiences are today's competitive front line, a make or break for
every business. We also believe that remarkable experiences not
only enhance user satisfaction but also yield significant gains for
enterprises. That is what we call the AI-experience advantage – the
degree to which the content, products, recommendations, and advice
presented to a person online aligns easily with their needs,
intent, preferences, context, and behavior, resulting in superior
business outcomes.
To realize this AI-experience advantage at scale, enterprises
require a robust, spinal and composable infrastructure capable
of unifying content securely and delivering AI search, AI
recommendations, true personalization, and a trusted generative
experience at every touchpoint with each individual customer,
partner and employee. Coveo is dedicated to bringing this advantage
to every point-of-experience, using powerful data and AI models to
transform the enterprise in commerce, customer service, website,
and workplace.
The Coveo platform is ISO 27001 and ISO 27018 certified,
SOC2 compliant, and HIPAA compatible, with a 99.999% SLA available.
We are a Salesforce AppExchange Partner, an
SAPⓇ Endorsed App, an Adobe Technology Gold
Partner, a MACH Alliance member, and a Genesys
AppFoundryⓇ ISV Partner.
Coveo is a trademark of Coveo Solutions Inc.
Stay up to date on the latest Coveo news and content by
subscribing to the Coveo blog, and following Coveo
on LinkedIn, Twitter, and YouTube.
Condensed Interim Consolidated Statements of Loss and
Comprehensive Loss
(expressed in thousands of U.S. dollars, except share and per share
data, unaudited)
|
Three months ended
June 30,
|
|
2024
|
2023
|
|
$
|
$
|
Revenue
|
|
|
SaaS
subscription
|
30,557
|
28,535
|
Professional
services
|
1,660
|
1,997
|
Total
revenue
|
32,217
|
30,532
|
|
|
|
Cost of
revenue
|
|
|
SaaS
subscription
|
5,617
|
5,128
|
Professional
services
|
1,354
|
1,544
|
Total cost of
revenue
|
6,971
|
6,672
|
Gross
profit
|
25,246
|
23,860
|
|
|
|
Operating
expenses
|
|
|
Sales and
marketing
|
14,527
|
13,460
|
Research and product
development
|
10,397
|
9,182
|
General and
administrative
|
6,663
|
6,809
|
Depreciation of
property and equipment
|
747
|
577
|
Amortization and
impairment of intangible assets
|
725
|
1,006
|
Depreciation of
right-of-use assets
|
378
|
395
|
Total operating
expenses
|
33,437
|
31,429
|
Operating
loss
|
(8,191)
|
(7,569)
|
|
|
|
Net financial
revenue
|
(1,726)
|
(1,677)
|
Foreign exchange loss
(gain)
|
(981)
|
1,004
|
Loss before income
tax expense
|
(5,484)
|
(6,896)
|
Income tax
expense
|
620
|
59
|
Net
loss
|
(6,104)
|
(6,955)
|
|
|
|
Net loss per share –
Basic and diluted
|
(0.06)
|
(0.07)
|
Weighted average number
of shares outstanding – Basic and diluted
|
102,888,475
|
105,656,216
|
Condenses Interim Consolidated Statements of Loss and
Comprehensive Income Loss
(expressed in thousands of U.S. dollars, unaudited)
The following table presents share-based payments and related
expenses recognized by the company:
|
Three months ended
June 30,
|
|
2024
|
2023
|
|
$
|
$
|
Share-based payments
and related expenses
|
|
|
SaaS subscription cost
of revenue
|
138
|
236
|
Professional services
cost of revenue
|
39
|
163
|
Sales and
marketing
|
929
|
40
|
Research and product
development
|
1,487
|
1,556
|
General and
administrative
|
1,772
|
1,752
|
Share-based payments
and related expenses
|
4,365
|
3,747
|
Reconciliation of Net Loss to Adjusted EBITDA
(expressed in thousands of U.S. dollars, unaudited)
|
Three months ended
June 30,
|
|
2024
|
2023
|
|
$
|
$
|
Net
loss
|
(6,104)
|
(6,955)
|
Net financial
revenue
|
(1,726)
|
(1,677)
|
Foreign exchange loss
(gain)
|
(981)
|
1,004
|
Income tax
expense
|
620
|
59
|
Share-based payments
and related expenses(1)
|
4,365
|
3,747
|
Amortization and
impairment of intangible assets
|
725
|
1,005
|
Depreciation
expenses(2)
|
1,125
|
973
|
Transaction-related
expenses(3)
|
274
|
-
|
Adjusted
EBITDA
|
(1,702)
|
(1,844)
|
(1)
|
These expenses relate
to issued stock options and share-based awards under our
share-based plans to our employees and directors as well as related
payroll taxes that are directly attributable to the share-based
payments. These costs are included in product and professional
services cost of revenue, sales and marketing, research and product
development, and general and administrative expenses.
|
(2)
|
Depreciation expenses
include depreciation of property and equipment and depreciation of
right-of-use assets.
|
(3)
|
These expenses relate
to professional, legal, consulting, accounting, advisory, and other
fees relating to transactions that would otherwise not have been
incurred. These costs are included in general and administrative
expenses.
|
Condensed Interim Consolidated Statements of Financial
Position
(expressed in thousands of U.S. dollars, unaudited)
|
Three months ended
June 30,
|
|
2024
|
2023
|
|
$
|
$
|
Total
revenue
|
32,217
|
30,532
|
Gross
profit
|
25,246
|
23,860
|
Gross
margin
|
78 %
|
78 %
|
Add: Share-based
payments and related expenses
|
177
|
399
|
Adjusted Gross
Profit
|
25,423
|
24,259
|
Adjusted Gross
Margin
|
79 %
|
79 %
|
|
|
|
Product
revenue
|
30,557
|
28,535
|
Product cost of
revenue
|
5,617
|
5,128
|
Product gross
profit
|
24,940
|
23,407
|
Product gross
margin
|
82 %
|
82 %
|
Add: Share-based
payments and related expenses
|
138
|
236
|
Adjusted Product
Gross Profit
|
25,078
|
23,643
|
Adjusted Product
Gross Margin
|
82 %
|
83 %
|
|
|
|
Professional
services revenue
|
1,660
|
1,997
|
Professional
services cost of revenue
|
1,354
|
1,544
|
Professional
services gross profit
|
306
|
453
|
Professional
services gross margin
|
18 %
|
23 %
|
Add: Share-based
payments and related expenses
|
39
|
163
|
Adjusted
Professional Services Gross Profit
|
345
|
616
|
Adjusted
Professional Services Gross Margin
|
21 %
|
31 %
|
Reconciliation of Adjusted Operating Expense Measures and
Adjusted Operating Expense (%) Measures
(expressed in thousands of U.S. dollars, unaudited)
|
Three months ended
June 30,
|
|
2024
|
2023
|
|
$
|
$
|
Sales and marketing
expenses
|
14,527
|
13,460
|
Sales and marketing
expenses (% of total revenue)
|
45 %
|
44 %
|
Less: Share-based
payments and related expenses
|
929
|
40
|
Adjusted Sales and
Marketing Expenses
|
13,598
|
13,420
|
Adjusted Sales and
Marketing Expenses (% of total revenue)
|
42 %
|
44 %
|
|
|
|
Research and product
development expenses
|
10,397
|
9,182
|
Research and product
development expenses (% of total revenue)
|
32 %
|
30 %
|
Less: Share-based
payments and related expenses
|
1,487
|
1,556
|
Adjusted Research
and Product Development Expenses
|
8,910
|
7,626
|
Adjusted Research
and Product Development Expenses (% of total
revenue)
|
28 %
|
25 %
|
|
|
|
General and
administrative expenses
|
6,663
|
6,809
|
General and
administrative expenses (% of total revenue)
|
21 %
|
22 %
|
Less: Share-based
payments and related expenses
|
1,772
|
1,752
|
Less:
Transaction-related expenses
|
274
|
-
|
Adjusted General and
Administrative Expenses
|
4,617
|
5,057
|
Adjusted General and
Administrative Expenses (% of total revenue)
|
14 %
|
17 %
|
Condensed Interim Consolidated Statements of Financial
Position
(expressed in thousands of U.S. dollars, unaudited)
|
June 30,
2024
|
March 31,
2024
|
|
$
|
$
|
Assets
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
167,746
|
166,586
|
Trade and other
receivables
|
30,733
|
29,947
|
Government
assistance
|
5,226
|
9,987
|
Prepaid
expenses
|
8,412
|
8,622
|
|
212,117
|
215,142
|
Non-current
assets
|
|
|
Contract acquisition
costs
|
9,835
|
10,168
|
Property and
equipment
|
5,108
|
5,608
|
Intangible
assets
|
7,999
|
8,710
|
Right-of-use
assets
|
5,502
|
6,032
|
Deferred tax
assets
|
3,370
|
4,265
|
Goodwill
|
25,985
|
25,960
|
Total
assets
|
269,916
|
275,885
|
|
|
|
Liabilities
|
|
|
Current
liabilities
|
|
|
Trade payable and
accrued liabilities
|
20,831
|
21,822
|
Deferred
revenue
|
64,818
|
64,731
|
Current portion of
lease obligations
|
2,089
|
2,153
|
Accrued liability for
shares to be repurchased under substantial issuer bid
|
36,550
|
-
|
|
124,288
|
88,706
|
Non-current
liabilities
|
|
|
Lease
obligations
|
6,243
|
6,885
|
Deferred tax
liabilities
|
1,620
|
1,771
|
Total
liabilities
|
132,151
|
97,362
|
Shareholders'
equity
|
|
|
Share
capital
|
838,279
|
836,271
|
Contributed
surplus
|
42,447
|
40,484
|
Deficit
|
(698,959)
|
(655,598)
|
Accumulated other
comprehensive loss
|
(44,002)
|
(42,634)
|
Total shareholders'
equity
|
137,765
|
178,523
|
Total liabilities
and shareholders' equity
|
269,916
|
275,885
|
Condensed Interim Consolidated Statements of Cash
Flows
(expressed in thousands of U.S. dollars, unaudited)
|
Three months ended
June 30,
|
|
2024
|
2023
|
|
$
|
$
|
Cash flows from
operating activities
|
|
|
Net
loss
|
(6,104)
|
(6,955)
|
Items not affecting
cash
|
|
|
Amortization of
contract acquisition costs
|
1,091
|
1,159
|
Depreciation of
property and equipment
|
747
|
577
|
Amortization and
impairment of intangible assets
|
725
|
1,006
|
Depreciation of
right-of-use assets
|
378
|
395
|
Share-based
payments
|
4,865
|
3,454
|
Interest on lease
obligations
|
116
|
141
|
Deferred income tax
recovery
|
588
|
41
|
Unrealized foreign
exchange loss (gain)
|
(1,082)
|
922
|
|
|
|
Changes in non-cash
working capital items
|
1,705
|
268
|
|
3,029
|
1,008
|
|
|
|
Cash flows used in
investing activities
|
|
|
Additions to property
and equipment
|
(367)
|
(154)
|
Additions to
intangible assets
|
(3)
|
-
|
|
(370)
|
(154)
|
|
|
|
Cash flows used in
financing activities
|
|
|
Proceeds from exercise
of stock options
|
588
|
325
|
Tax withholding for
net share settlement
|
(976)
|
(372)
|
Payments on lease
obligations
|
(638)
|
(552)
|
Substantial issuer bid
transaction costs
|
(38)
|
(48)
|
|
(1,064)
|
(647)
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
(435)
|
2,510
|
|
|
|
Increase in cash and
cash equivalents during the period
|
1,160
|
2,717
|
|
|
|
Cash and cash
equivalents – beginning of period
|
166,586
|
198,452
|
|
|
|
Cash and cash
equivalents – end of period
|
167,746
|
201,169
|
|
|
|
Cash
|
18,827
|
31,819
|
Cash
equivalents
|
148,919
|
169,350
|
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SOURCE Coveo Solutions Inc.