Connect with us

Technology

Coveo Reports Second Quarter Fiscal 2025 Financial Results

Published

on

SaaS Subscription Revenue(1) of $31.2 million, above the top end of previous guidance

Cash flows from operating activities of $1.4 million, a 72% improvement year-over-year

Generative Answering customer base grows more than 50% since June 30, 2024

New and Expanded Partnerships with Salesforce, AWS, and Shopify

Coveo reports in U.S. dollars and in accordance with International Financial Reporting Standards (“IFRS”)

MONTREAL and SAN FRANCISCO, Nov. 4, 2024 /CNW/ – 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 second quarter of fiscal year 2025 ended September 30, 2024.

“After a period of thorough evaluation and education, we continue to witness a shift among enterprises towards the adoption of AI solutions that deliver proven results and strong ROI. Our second quarter further validated this trend, with robust demand from new and existing customers,” said Louis Têtu, Chairman and CEO of Coveo. “We are building momentum as enterprises increasingly choose Coveo for personalized and efficient experiences that generate real business value. We are confident in our ability to sustain positive results and drive continued growth.”

Second Quarter Fiscal 2025 Summary Financial Highlights

The following table summarizes our financial results for the second quarter of fiscal year 2025:

In millions of U.S. Dollars, except as otherwise indicated

Q2 2025

Q2 2024

Change

SaaS Subscription Revenue(1)

$31.2

$29.4

6 %

Coveo core Platform(2)

$29.9

$26.9

11 %

Qubit Platform(3)

$1.3

$2.5

(51 %)

Total revenue

$32.7

$31.2

5 %

Gross margin

79 %

78 %

1 %

Product gross margin

82 %

82 %

Net loss

($5.4)

($6.5)

17 %

Adjusted EBITDA(4)

$1.5

$0.0

Cash flows from operating activities

$1.4

$0.8

72 %

Second Quarter Fiscal 2025 Financial Highlights
(All comparisons are relative to the three-month period ended September 30, 2023, unless otherwise stated)

SaaS Subscription Revenue(1) of $31.2 million, an increase of 6% compared to $29.4 million, surpassing the top end of guidance. Within this, SaaS Subscription Revenue for Coveo’s core Platform(2) was $29.9 million, an increase of 11%.Total revenue was $32.7 million compared to $31.2 million, an increase of 5%, and above the top end of guidance.Gross margin was 79%, up from 78% in the prior period. Product gross margin was 82%, consistent with the prior year.Operating loss was $4.8 million compared to $10.2 million, and net loss was $5.4 million compared to $6.5 million.Adjusted EBITDA(4) was $1.5 million compared to $0.0 million last year, and ahead of guidance.Cash flows from operating activities were $1.4 million compared to $0.8 million, an increase of 72%.Cash and cash equivalents were $128.2 million as of September 30, 2024.Net Expansion Rate(1) of 100% as of September 30, 2024. Net Expansion Rate(1) was 104% excluding customer attrition from customers using the Qubit Platform(5).

Other Business and Subsequent Highlights

Positive bookings momentum fueled by a combination of new and existing clients.Achieved the highest number of new logo wins in the past 24 months, winning customers such as Dentsply Sirona, Philip Morris Products, C.H. Robinson and others.Growing demand for Coveo’s Relevance Generative Answering solutions (CRGA), with more than 50% sequential increase in customer count. Customers such as SAP America, Zoom Video Communications, Extreme Networks and others adopted Coveo’s CRGA in the quarter.In addition to strengthening customer demand, Coveo also announced new and expanded relationships with several key alliance partners.Coveo unveiled a new partnership with Salesforce Data Cloud, providing enterprises with the ability to access content from Coveo within Data Cloud. On the back of this, Salesforce and Coveo have commenced joint advocacy showcasing Coveo’s capability to solve complex data requirements and relevance for enterprise customers.Separately announced last week, Coveo has partnered with Shopify to deliver best- in-class AI search and generative experiences to Shopify’s expanding enterprise customer base. This will enable AI-powered product discovery and personalization, driving increased conversion and revenue.Also announced last week, Coveo has joined Amazon Web Services ISV Accelerate program, bringing market-leading AI search, recommendations and generative experiences to AWS enterprise customers.In August, Coveo disclosed a strategic partnership with Optimizely, to bring AI powered search and relevance across sites to deliver personalized experiences at scale.Coveo announced the launch of Relevance-Augmented Passage Retrieval API (RAPR API), empowering organizations to connect their own Large Language Models with the full power of the Coveo Platform. Customer participation in the beta program for RAPR API is oversubscribed.Announced the election of Eric Lamarre to the Board of Directors. With over 30 years of experience, Mr. Lamarre is widely recognized for his expertise in AI and digital transformation.The company renewed its normal course issuer bid to purchase for cancellation a maximum of 2,690,573 subordinate voting shares over the twelve-month period commencing on July 17, 2024. As of September 30, 2024, the Company repurchased for cancellation 809,685 subordinate voting shares for a total consideration of $3.6 million.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.

Financial Outlook

The company is encouraged by the strengthening customer demand for its AI powered solutions and continues to anticipate momentum in new sales to build in the second half of the fiscal year. The company is also seeing, in select cases, enterprises carefully managing budgets which is leading to lower near term Net Expansion Rates.

The company’s financial outlook continues to include 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.

Taking these factors into consideration, Coveo anticipates SaaS Subscription Revenue(1), Total Revenue, and Adjusted EBITDA(4) for Q3 FY’25 and Full Year FY’25 as follows:

Q3 FY’25

Full Year FY’25

SaaS Subscription Revenue(1)

$31.8 – $32.3 million

$126.0 – $130.0 million

Total Revenue

$33.4 – $33.9 million

$133.0 – $138.0 million

Adjusted EBITDA(4)

$0.0 – $1.0 million

$0.0 – $4.0 million

For the Full Year FY’25, the company expects to remain within the previously issued guidance ranges, towards the low-to-midpoint of the ranges.

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.

Q2 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 second quarter of fiscal year 2025. The call will be hosted by Louis Têtu, Chairman and CEO, Brandon Nussey, CFO and other members of its senior leadership team.

Conference Call:               

https://emportal.ink/3XEgCBp

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/xnOKyRalgo5

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 September 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 December 31, 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 customer buying behaviors.Our ability to attract and retain key personnel required to achieve our plans.Foreign exchange rates environment remaining consistent with average Q2 levels, 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 LinkedInTwitter, and YouTube.

Contact Information

James Bowen
Investor Relations
jbowen@coveo.com

Kiyomi Harrington
Director, PR, Social and Corporate Communications
kharrington@coveo.com

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
September 30,

Six months ended
September 30,

2024

2023

2024

2023

$

$

$

$

Revenue

SaaS subscription

31,174

29,406

61,731

57,941

Professional services

1,566

1,813

3,226

3,810

Total revenue

32,740

31,219

64,957

61,751

Cost of revenue

SaaS subscription

5,558

5,323

11,175

10,451

Professional services

1,275

1,484

2,629

3,028

Total cost of revenue

6,833

6,807

13,804

13,479

Gross profit

25,907

24,412

51,153

48,272

Operating expenses

Sales and marketing

14,072

13,898

28,599

27,358

Research and product development

8,648

8,700

19,045

17,882

General and administrative  

6,233

6,814

12,896

13,623

Depreciation of property and equipment

628

595

1,375

1,172

Amortization and impairment of intangible assets

737

4,199

1,462

5,205

Depreciation of right-of-use assets

358

404

736

799

Total operating expenses

30,676

34,610

64,113

66,039

Operating loss

(4,769)

(10,198)

(12,960)

(17,767)

Net financial revenue

(1,262)

(1,630)

(2,988)

(3,307)

Foreign exchange loss (gain)

1,723

(1,260)

742

(256)

Loss before income tax expense (recovery)

(5,230)

(7,308)

(10,714)

(14,204)

Income tax expense (recovery)

147

(855)

767

(796)

Net loss

(5,377)

(6,453)

(11,481)

(13,408)

Net loss per share – Basic and diluted

(0.05)

(0.06)

(0.11)

(0.13)

Weighted average number of shares outstanding – Basic and diluted

98,409,854

102,807,185

100,665,293

104,223,916

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
September 31,

 Six months ended
September 30,

2024

2023

2024

2023

$

$

$

$

Share-based payments and related expenses

SaaS subscription cost of revenue

222

230

360

466

Professional services cost of revenue

142

150

181

313

Sales and marketing 

919

897

1,848

937

Research and product development 

1,391

1,675

2,878

3,231

General and administrative 

1,725

2,064

3,497

3,816

Share-based payments and related expenses

4,399

5,016

8,764

8,763

Reconciliation of Net Loss to Adjusted EBITDA
(expressed in thousands of U.S. dollars, unaudited)

Three months ended
September 30,

Six months ended
September 30,

2024

2023

2024

2023

$

$

$

$

Net loss

(5,377)

(6,453)

(11,481)

(13,408)

Net financial revenue

(1,262)

(1,630)

(2,988)

(3,307)

Foreign exchange loss (gain)

1,723

(1,260)

742

(256)

Income tax expense (recovery)

147

(855)

767

(796)

Share-based payments and related expenses(1)

4,399

5,016

8,764

8,763

Amortization and impairment of intangible assets

737

4,199

1,462

5,205

Depreciation expenses(2)

986

999

2,111

1,971

Transaction-related expenses(3)

114

388

Adjusted EBITDA

1,467

16

(235)

(1,828)

(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.

Reconciliation of Adjusted Gross Profit Measures and Adjusted Gross Margin Measures
(expressed in thousands of U.S. dollars, unaudited)

Three months ended
September 30,

Six months ended
September 30,

2024

2024

2024

2023

$

$

$

$

Total revenue

32,740

31,219

64,957

61,751

Gross profit

25,907

24,412

51,153

48,272

Gross margin

79 %

78 %

79 %

78 %

Add: Share-based payments and related expenses

364

380

541

779

Adjusted Gross Profit

26,271

24,792

51,694

49,051

Adjusted Gross Margin

80 %

79 %

80 %

79 %

Product revenue

31,174

29,406

61,731

57,941

Product cost of revenue

5,558

5,323

11,175

10,451

Product gross profit

25,616

24,083

50,556

47,490

Product gross margin

82 %

82 %

82 %

82 %

Add: Share-based payments and related expenses 

222

230

360

466

Adjusted Product Gross Profit

25,838

24,313

50,916

47,956

Adjusted Product Gross Margin

83 %

83 %

82 %

83 %

Professional services revenue

1,566

1,813

3,226

3,810

Professional services cost of revenue

1,275

1,484

2,629

3,028

Professional services gross profit

291

329

597

782

Professional services gross margin

19 %

18 %

19 %

21 %

Add: Share-based payments and related expenses

142

150

181

313

Adjusted Professional Services Gross Profit

433

479

778

1,095

Adjusted Professional Services Gross Margin

28 %

26 %

24 %

29 %

Reconciliation of Adjusted Operating Expense Measures and Adjusted Operating Expense (%) Measures
(expressed in thousands of U.S. dollars, unaudited)

Three months ended
September 30,

Six months ended
September 30,

2024

2023

2024

2023

$

$

$

$

Sales and marketing expenses

14,072

13,898

28,599

27,358

Sales and marketing expenses (% of total revenue)

43 %

45 %

44 %

44 %

Less: Share-based payments and related expenses

919

897

1,848

937

Adjusted Sales and Marketing Expenses

13,153

13,001

26,751

26,421

Adjusted Sales and Marketing Expenses (% of total revenue)

40 %

42 %

41 %

43 %

Research and product development expenses

8,648

8,700

19,045

17,882

Research and product development expenses (% of total revenue)

26 %

28 %

29 %

29 %

Less: Share-based payments and related expenses

1,391

1,675

2,878

3,231

Adjusted Research and Product Development Expenses

7,257

7,025

16,167

14,651

Adjusted Research & Product Development Expenses (% of total revenue)

22 %

23 %

25 %

24 %

General and administrative expenses

6,233

6,814

12,896

13,623

General and administrative expenses (% of total revenue)

19 %

22 %

20 %

22 %

Less: Share-based payments and related expenses

1,725

2,064

3,497

3,816

Less: Transaction-related expenses

114

388

Adjusted General and Administrative Expenses

4,394

4,750

9,011

9,807

Adjusted General and Administrative Expenses (% of total revenue)

13 %

15 %

14 %

16 %

Condensed Interim Consolidated Statements of Financial Position
(expressed in thousands of U.S. dollars, unaudited)

September 30,
2024

March 31,
2024

$

$

Assets

Current assets

Cash and cash equivalents

128,162

166,586

Trade and other receivables

27,312

29,947

Government assistance

7,089

9,987

Prepaid expenses

9,626

8,622

172,189

215,142

Non-current assets

Contract acquisition costs

9,904

10,168

Property and equipment

4,845

5,608

Intangible assets

7,627

8,710

Right-of-use assets

5,219

6,032

Deferred tax assets

3,002

4,265

Goodwill

26,911

25,960

Total assets

229,697

275,885

Liabilities

Current liabilities

Trade payable and accrued liabilities

20,592

21,822

Deferred revenue

63,228

64,731

Current portion of lease obligations

2,082

2,153

Accrued liability for shares to be repurchased under automatic

securities purchase plan

5,179

91,081

88,706

Non-current liabilities

Lease obligations

5,850

6,885

Deferred tax liabilities

1,554

1,771

Total liabilities

98,485

97,362

Shareholders’ Equity

Share capital

777,340

836,271

Contributed surplus

67,074

40,484

Deficit

(672,370)

(655,598)

Accumulated other comprehensive loss

(40,832)

(42,634)

Total shareholders’ equity

131,212

178,523

Total liabilities and shareholders’ equity

229,697

275,885

Condensed Interim Consolidated Statements of Cash Flows
(expressed in thousands of U.S. dollars, unaudited)

Six months ended September 30,

2024

2023

$

$

Cash flows from operating activities

Net loss

(11,481)

(13,408)

Items not affecting cash

Amortization of contract acquisition costs

2,147

2,248

Depreciation of property and equipment

1,375

1,172

Amortization and impairment of intangible assets

1,462

5,205

Depreciation of right-of-use assets

736

799

Share-based payments

9,477

7,800

Interest on lease obligations

224

279

Deferred income tax expense (recovery)

778

(765)

Unrealized foreign exchange loss (gain)

646

(316)

Changes in non-cash working capital items

(910)

(1,179)

4,454

1,835

Cash flows used in investing activities

Additions to property and equipment

(554)

(626)

Additions to intangible assets

(9)

(21)

(563)

(647)

Cash flows used in financing activities

Proceeds from exercise of stock options

978

980

Tax withholding for net share settlement

(1,490)

(1,011)

Payments on lease obligations

(1,256)

(1,198)

Shares repurchased and cancelled

(40,588)

(26,353)

Repurchase of stock options

(4,553)

(42,356)

(32,135)

Effect of foreign exchange rate changes on cash and cash equivalents

41

309

Decrease in cash and cash equivalents during the period

(38,424)

(30,638)

Cash and cash equivalents – beginning of period

166,586

198,452

Cash and cash equivalents – end of period

128,162

167,814

Cash

22,888

25,275

Cash equivalents

105,274

142,539

View original content to download multimedia:https://www.prnewswire.com/news-releases/coveo-reports-second-quarter-fiscal-2025-financial-results-302295795.html

SOURCE Coveo Solutions Inc.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

Loyyal’s Xpand Point Partners with Easyrewardz to bring Loyalty Points Exchange for Programs across Middle East, India, Europe and APAC

Published

on

By

Partnership to offer loyalty points exchange for travel, hospitality, and lifestyle rewards for banking customers beyond borders

DUBAI, UAE, Nov. 7, 2024 /PRNewswire/ — Easyrewardz, a leading provider of cloud-based CRM and loyalty platform, has announced a strategic partnership with Loyyal, a UAE-based pioneer in blockchain-powered loyalty solutions. This collaboration is set to redefine the loyalty landscape by introducing enhanced point conversion capabilities and offering unique, experiential redemption options, giving customers more flexible and engaging ways to use their loyalty points.

The collaboration will bring Loyyal’s innovative loyalty points exchange platform, Xpand Point to India’s BFSI (Banking, Financial, and Insurance) sector, integrating it with Easyrewardz Loyalty Management System (LMS) to provide businesses with tools that enhance customer retention and drive deeper engagement. Through this partnership, millions of banking members will unlock a new world of benefits, both within India and globally, with exciting opportunities to earn, redeem, and exchange points across various categories of offers.

This alliance brings together two industry leaders, creating a powerful synergy that enhances their value propositions and sets the stage for a transformation in the loyalty market. The partnership also taps into growth opportunities in the Middle East, Europe and APAC region, with a focus on high-demand markets like Saudi Arabia, UAE, UK, Germany, Turkey, Singapore, Hong Kong and Australia where the need for advanced loyalty programs is rapidly increasing. These opportunities will be harnessed through a comprehensive redemption catalogue and Loyyal’s Xpand Point platform, enabling seamless integration and enhanced member experiences.

Ashish Kumar Singh, CEO of Loyyal, quoted, “We are thrilled to partner with Easyrewardz to bring our blockchain-powered loyalty ecosystem to the BFSI sector in India. This collaboration represents a significant opportunity for both companies to innovate and redefine customer engagement across multiple markets, leveraging our combined strengths to deliver personalized and rewarding experiences.”

The partnership aims to create additional growth opportunities for both companies by establishing them as channel partners. Together, Easyrewardz and Loyyal will promote each other’s services, collaborate on marketing initiatives, and offer cross-platform solutions that amplify customer loyalty and engagement. This partnership will enable Easyrewardz to leverage Loyyal’s network of merchants and points exchange partners in India to its clients and prospects in the GCC region through a redemption catalogue and the Loyyal Points Exchange platform.

Soumya Chatterjee, Co-Founder & CEO of Easyrewardz, highlighted the broader impact of this collaboration, saying, “At Easyrewardz, we have always been committed to creating exceptional customer experiences by understanding and anticipating the needs of businesses.

Our partnership with Loyyal will not only allow us to deepen our presence in the BFSI sector but also open doors to new possibilities in the GCC region. Easyrewardz has always had a customer-centric approach and thus by integrating Loyyal’s innovative Points Exchange platform – Xpand Point, into our existing reward offering we are further enhancing our affluent offerings and catering to the growing demand in premium segments for outbound travel and experiences.  Together, we will reshape the way businesses approach loyalty, focusing on delivering exceptional value and driving sustainable growth for our clients across industries.”

This partnership is set to deliver significant benefits for businesses by enabling them to adopt more flexible, personalized, and data-driven loyalty programs. With the ability to engage customers at multiple touchpoints and simplify redemption processes, the combined expertise of Loyyal and Easyrewardz will offer unparalleled loyalty solutions that foster deeper customer relationships and generate long-term value.

Gunjan Kumar, Chief Revenue Officer of Loyyal, expressed the significance of this collaboration, stating, “Our partnership with Easyrewardz marks a pivotal step in redefining customer loyalty. By integrating Loyyal’s cutting-edge Xpand Point platform with Easyrewardz extensive expertise in the BFSI sector, we are crafting a robust solution that not only meets current demands but also anticipates future trends in customer engagement. Together, we are moving beyond mere transactional loyalty to foster deeper, lasting relationships that enhance member retention.”

As industries increasingly focus on retaining loyal customers and nurturing brand advocates, this partnership positions Loyyal and Easyrewardz at the forefront of innovation, offering businesses the tools and strategies they need to remain competitive in the rapidly evolving loyalty landscape.

About Loyyal

Loyyal is renowned for its innovative Enterprise SAAS Suite for Loyalty & Payments powered with patented blockchain technology, based in UAE, US and India. Loyyal SAAS disrupts loyalty industry with metrics of incremental revenue, rapid growth and scalability at the lowest possible cost. Xpand Point, the world’s first blockchain enabled loyalty points exchange platform leverages Loyyal’s unique USP to empower every program with interoperable exchange facility across different programs, categories both locally and internationally. For more information, please visit www.loyyal.com for PR related queries contact Janis.dsouza@loyyal.com.

About Easyrewardz

Easyrewardz is an industry-agnostic cloud-based CRM & Loyalty platform that enables seamless omnichannel customer experience. Easyrewardz innovative ways to engage new customers & retain existing ones by leveraging technology are helping businesses embrace digital disruption leading to excellent customer experiences. Easyrewardz has more than a decade experience in managing BFSI, Retail and B2B loyalty & CRM programs to provide a seamless & rewarding experience to their customers, enabling consistent engagement.

More than 180 brands, including RBL Bank, Kotak Bank, J&K Bank, Bajaj Finserv, IIFL, Muthoot Fincorp, Bata (India & APAC), BESTSELLER, The Belgian Waffle, The Body Shop, Levi’s, Soch, Senco, and Motherhood Hospitals have trusted Easyrewardz to create brand markers and delight customer. For more information, please visit www.Easyrewardz.com

Photo – https://mma.prnewswire.com/media/2550900/Loyyal_and_Easyrewardz.jpg

 

View original content:https://www.prnewswire.co.uk/news-releases/loyyals-xpand-point-partners-with-easyrewardz-to-bring-loyalty-points-exchange-for-programs-across-middle-east-india-europe-and-apac-302298085.html

Continue Reading

Technology

XtalPi and Sinar Mas Multiartha Launch Strategic Partnership to Revolutionize AI Across Asia-Pacific

Published

on

By

SINGAPORE, Nov. 7, 2024 /PRNewswire/ — XtalPi (2228.HK) has announced a strategic partnership with Indonesia’s powerhouse, led by one of its prominent business pillar Sinar Mas Multiartha. This landmark collaboration is set to transform the future of artificial intelligence (AI) and robotics across the Asia-Pacific region. By establishing an ambitious joint venture, the alliance will integrate XtalPi’s cutting-edge AI and robotics research capabilities with Sinar Mas Group’s extensive industry reach, setting the stage for a commercial and technological revolution.

Sinar Mas Group, one of Indonesia’s most influential and diversified conglomerates, maintains a commanding presence across sectors such as healthcare, mining, renewable energy, logistics, consumer goods, chemicals, and financial services. With its robust supply chain and deep market penetration across the Asia-Pacific, the Group is well-positioned to drive industry innovation through advanced AI solutions, reshaping the region’s economic landscape.

XtalPi is a global leader in integrating AI and robotics for life sciences and advanced materials R&D, collaborating with over 300 top-tier enterprises and research institutions worldwide. Known for transforming scientific discoveries into commercially viable technologies, XtalPi has developed groundbreaking platforms that empower scientists to generate and analyze innovative, complex chemical and biological molecules of desired properties and functions at exceptional speed and precision. 

Founded in 2015 by three visionary MIT postdoctoral physicists, XtalPi has been at the forefront of advancements in AI for Science. By combining quantum physics, AI, cloud computing, and large-scale robotics, XtalPi delivers world-class R&D services that solve bottleneck problems and accelerate innovation in medicine, renewable energy, advanced materials, and beyond. XtalPi positions itself as a transformative force reshaping global industries, helping its partners increase the overall efficiency and success rate for breakthrough discoveries.

The partnership between XtalPi and Sinar Mas Group is set to unlock a powerful synergy of expertise. By delivering pioneering, commercially potent solutions across various sectors, this venture will drive significant revenue growth and fuel regional economic expansion. Together, the companies aim to seize opportunities in Southeast Asia’s booming AI market, setting new benchmarks for innovation, competitiveness, and economic influence.

“We are honored to join forces with Sinar Mas Group to realize our shared vision of using advanced technologies like AI to build a healthier, more sustainable future rich in discoveries,” said Shuhao Wen, Chairman of XtalPi. “The Group’s extensive industrial expertise and strategic market reach, combined with XtalPi’s trailblazing AI and robotics platform, will enable us to lead digital and intelligent transformation in key sectors such as renewable energy and advanced materials. We are thrilled about the unprecedented commercial potential this partnership unlocks, bringing next-generation solutions to Southeast Asia and beyond, benefiting global communities.”

By merging their strengths, XtalPi and Sinar Mas Group are set to redefine AI’s impact on industries across the Asia-Pacific, igniting accelerated growth and groundbreaking technological advancements. Together, they are paving the way for a smarter, more sustainable future.

About XtalPi

XtalPi (stock code: 2228.HK) is a quantum physics-based, AI-powered, and robotics-driven, innovative R&D platform company. Established in 2015 by three postdoctoral physicists at Massachusetts Institute of Technology (MIT), the company is dedicated to driving intelligent and digital transformation in the life sciences and materials sciences sectors. XtalPi combines quantum physics, AI, cloud computing, and large-scale robotics to provide R&D solutions and services for biomedicine, chemical, renewable energy and advanced materials industries globally.

About Sinar Mas Group

Sinar Mas Group, one of Indonesia’s most influential and diversified conglomerates, maintains a commanding presence across sectors such as healthcare, mining, renewable energy, logistics, consumer goods, chemicals, and financial services. With its robust supply chain and deep market penetration across the Asia-Pacific, the Group is well-positioned to drive industry innovation through advanced AI solutions, reshaping the region’s economic landscape.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/xtalpi-and-sinar-mas-multiartha-launch-strategic-partnership-to-revolutionize-ai-across-asia-pacific-302298273.html

SOURCE XtalPi Inc.

Continue Reading

Technology

SkyPixel and DJI Call on Creators for 10th Annual Photo and Video Contest

Published

on

By

Entrants Invited to Share Creativity and Win Prizes Totaling Over $170,000

SHENZHEN, China, Nov. 6, 2024 /PRNewswire/ — DJI and SkyPixel, one of the world’s most popular online communities for aerial photography and videography, have opened the 10th anniversary of the Annual SkyPixel Photo & Video Contest. Running from November 7, 2024, to February 10, 2025, the competition showcases the evolution of aerial photography over the past ten years with an ever-increasing number of people appreciating other’s unique forms of expression found on the community site. As part of this evolution, this year will include the first ever ‘Handheld’ category in response to the growing number of people using handheld cameras to showcase their talent. To recognize the creativity submitted, the total prize package is worth over $170,000.

“Beauty is in the eye of the beholder, and for 10 years now, the SkyPixel Annual Photo & Video Contest has been proud to award photographers and videographers for capturing and sharing their perspective of beauty with the world,” said Ferdinand Wolf, Creative Director at DJI. “The SkyPixel platform continues to be a community that ignites imaginations, reimagines the art of imagery, and embraces the diverse experiences of individuals and communities across the world.”

Ten Years Celebrating Creativity

Established in 2014, SkyPixel is a leading global community celebrating the remarkable stories that have shaped the art of image capture. The platform has become a huge success, garnering over 55 million registered users and accumulating over 50 million breathtaking aerial images and videos uploaded daily by photography and videography enthusiasts around the globe.

Since 2015, SkyPixel has successfully organized nine annual aerial photography and video contests, inspiring the imaginativeness of DJI users worldwide, resulting in more than 400k submissions from around the globe that have received over 1 billion views. Whether using handheld DJI cameras like the Osmo and Ronin series or DJI’s diverse line of drones that can empower anyone to become an aerial cinematographer, the magnitude of submissions and community engagement is testament to the exceptional creativity of the DJI community and the ability of DJI technology to help anyone anywhere capture uniquely individual cinematic moments.

Explore Without Limits

In the tenth iteration of the contest, DJI and SkyPixel are placing the boundless potential of human expression at the center of the competition, encouraging participants to “Explore Without Limits” which is the central theme. To ignite the artistic passion within all DJI users and support as many entries as possible, the categories for this year’s contest have been simplified to just three separate categories, namely Aerial Photography, Aerial Videography and Handheld Videography.  Furthermore, for the first time, contestants can also submit their entries via all DJI social media channels. Alongside the “Aerial Photography” and “Aerial Videography” categories, this year’s SkyPixel competition is unveiling the all new “Handheld” video category, opening up the award to people who chose to share their creativity from the ground. Meanwhile, each month will feature “Popularity Awards” recognizing content that explores new trends or innovate art.

Details of the SkyPixel 10th Annual Photo & Video Contest

The photo contest consists of one category:

Aerial Photography
Overlooking the world, framing moments of eternity. Whether awe-inspiring nature or grand architecture, energetic sporting moments or portraits brimming with emotion – all show the charm of the art of photography.Entries must be shot on aerial photography equipment and entered as a single work with a single image of no less than 3MB and a resolution of no less than 300dpi.Inspire / Mavic / Air / Mini / Phantom series, DJI Neo are eligible to participate.

The video contest is comprised of two categories:

Aerial Videography
Soar through the skies and capture the magnificent beauty of the earth. From natural wonders to urban jungles within cities, from impassioned sporting events to tranquil or colorful getaways – push the limits and let your creativity shine.Entries must be no longer than 5 minutes in length with no less than 30 seconds of footage shot on DJI products.Entries must contain more than 50% aerial footage.Inspire / Mavic / Air / Mini / Avata / Phantom series, DJI FPV / DJI Neo are eligible to participate.Handheld Videography
Hold the camera and record the most intimate moments of life. Whether it’s the pulse of the city, the serenity of nature, the speed and passion of the sports field, the excitement and experience of travel, you are free to interpret the spirit of the footage and tell your unique story.Entries must be no longer than 5 minutes in length with no less than 30 seconds of footage shot on DJI products.Entries must contain more than 50% handheld footage.Ronin Stabilizer / Ronin Cinema Cameras / Osmo Action / Osmo Pocket / Osmo Mobile series are eligible to participate.

Always fly with caution, observe the flight environment, and follow local regulations at all times.

Industry Leading Judges

This year’s SkyPixel submissions will be judged by some of the leading videographers and photographers from across the globe.

In photography, there are pioneering experts such as:

Anne Farrar, Assistant Managing Editor-Photography at National Geographic MagazineWeimin Chu, renowned landscape photographer, winner of the 2019 National Geographic Travel Photo Contest, 2023 World Press Photo Award, and 2024 Hasselblad Masters AwardDaniel Kordan, renowned landscape photographerLuke Stackpoole, trailblazer in the world of travel and adventure photography.

In the video category, industry heavy-weights include:

Claudio Miranda, Academy Award-winning cinematographer known for projects including Life of Pi, The Curious Case of Benjamin Button, and Top Gun: MaverickChenyu Jin, Director of Photography known for Blossoms Shanghai and Like A Rolling StoneTianhong Pan, Director of Photography for Commercials, founder of the well-known self-media MediaStormSam Newton, renowned travel filmmaker.

Bonanza of Prizes

This year, SkyPixel and DJI will award three ‘Grand Winners’ and give away more than 80 prizes over the course of the competition with a total value of over US $170,000. For the Grand Winners awarded “Best Work”:

The winning photo participant will receive an all-new Hasselblad X2D 100C, XCD 3.5-4.5/35-75mm, and an XCD F4/45P (worth over $14,000)The winning aerial video participant will receive a DJI Inspire 3 drone, a DL 18 mm F2.8, PROSSD 1TB, and two TB51 Batteries (worth over $20,000)The winning handheld video participant will be awarded a DJI Ronin 4D-8K cinema camera, DJI Transmission, and two TB50 batteries (worth over $15,000).

All grand winners will also receive a SkyPixel trophy and be recognized as an official “SkyPixel Creator.” The full list of awards can be seen on the official SkyPixel website and includes prizes such as the DJI Mavic 3 Pro, DJI Air 3S, DJI Avata 2, and the Osmo Pocket 3. All entrants will also receive DJI credits which can be used at store.dji.com.

 Submission Details

Submission Start Date: November 7, 2024, 12:00 (UTC+8)Submission End Date: February 10, 2025, 23:59 (UTC+8)Award Announcement: March 27, 2025, 12:00 (UTC+8)

Submissions will be accepted via the official SkyPixel website and all DJI social media channels. Interested participants can visit the SkyPixel 10th Annual Photo & Video Contest website for more information on contest rules and guidelines: https://www.skypixel.com/contests/2024.

About SkyPixel

Founded in 2014, SkyPixel is a leading global community for aerial photographers and videographers. The platform has over 55 million registered users and hosts thousands of aerial images and videos uploaded daily around the world. In November 2023, SkyPixel hosted its 9th annual aerial photo and video contest and received over 130,000 submissions from 148 countries and regions – a 100% increase from 2022. For more info, please visit https://www.skypixel.com.

About DJI

Since 2006, DJI has led the world with civilian drone innovations that have empowered individuals to take flight for the first time, visionaries to turn their imagination into reality, and professionals to transform their work entirely. Today, DJI serves to build a better world by continuously promoting human advancement. With a solution-oriented mindset and genuine curiosity, DJI has expanded its ambitions into areas such as cycling, renewable energy, agriculture, public safety, surveying and mapping, and infrastructure inspection. In every application, DJI products deliver experiences that add value to lives around the world in more profound ways than ever before.

For more information, visit our:

Website: https://www.dji.com
Online Store: https://store.dji.com
Facebook: https://www.facebook.com/DJI
Instagram: https://www.instagram.com/DJIGlobal
X: https://www.X.com/DJIGlobal
LinkedIn: https://www.linkedin.com/company/dji
Subscribe to our YouTube Channel: https://www.youtube.com/DJI

View original content:https://www.prnewswire.com/news-releases/skypixel-and-dji-call-on-creators-for-10th-annual-photo-and-video-contest-302297246.html

SOURCE DJI; SkyPixel

Continue Reading

Trending