Coveo Solutions (CVO) Q4 2024 earnings summary

Executive summary

• Q4 SaaS subscription revenue reached $30.7M, up 18% year-over-year for the core platform, and at the high end of guidance.

• FY24 total revenue was $126.1M, a 13% increase from FY23, with SaaS subscription revenue comprising 94% of total revenue.

• Adjusted EBITDA turned positive in Q4 at $0.2M, with FY24 adjusted EBITDA at ($2.4M), a significant improvement from ($16.3M) in FY23.

• Cash flows from operating activities were positive at $4.6M in Q4 and $4.2M for FY24, marking a 167% year-over-year improvement.

• Over 75 generative AI projects in various stages, with strong win rates and tangible customer results.

Financial highlights

• Q4 total revenue was $32.6M, up 12% year-over-year; full-year revenue was $126.1M, up 13%.

• Core platform SaaS revenue grew 18% in Q4 and 19% for the year; Qubit platform revenue declined 30%.

• Adjusted operating loss for Q4 was $0.8M, a significant improvement from $4.4M a year ago; full-year adjusted operating loss was $6.3M, better than guidance.

• Adjusted EBITDA for Q4 was $0.2M; full-year adjusted EBITDA loss was $2.4M, improved from $16.3M last year.

• Cash and cash equivalents stood at $166.6M as of March 31, 2024.

Outlook and guidance

• FY25 SaaS subscription revenue expected between $126M–$130M; total revenue between $133M–$138M.

• Q1 FY25 SaaS subscription revenue expected between $30.2M and $30.5M; total revenue $31.8M–$32.1M.

• Full-year adjusted EBITDA expected between $0M–$4M; operating cash flow from operations targeted at ~$10M.

• Qubit SaaS revenue expected to decline further, with minimal levels by year-end, impacting revenue by ~$4M.

• Bookings performance expected to build, with stronger growth in the second half of the year.