Coveo Solutions (CVO) Q4 2024 earnings summary

Executive summary

• Q4 revenue and bottom line exceeded guidance, with positive adjusted EBITDA and strong operating cash flow achieved ahead of plan.

• SaaS subscription revenue on the core platform grew 19% for the year, with nearly half of new pipeline from net new companies in Q4.

• Over 75 generative AI projects in various stages, driving strong customer interest and bookings.

• Company recognized as a leader in AI-powered digital experiences, with major customer wins and industry accolades.

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

Financial highlights

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

• Core platform SaaS revenue grew 18% in Q4 and 19% for the year; Qubit platform revenue declined 30% in Q4 and 18% for FY24.

• Adjusted EBITDA was $0.2M for Q4; full-year adjusted EBITDA loss was $2.4M, a significant improvement from the prior year.

• Net loss for Q4 was $4.1M, improved from $7.2M in Q4 FY23; FY24 net loss was $23.6M, down from $39.7M in FY23.

• Cash and cash equivalents stood at $166.6M as of March 31, 2024, with no debt.

Outlook and guidance

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

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

• Adjusted EBITDA guidance for FY25 is $0–$4M; operating cash flow expected to reach $10M.

• Qubit SaaS revenue expected to decline further, with $4M year-over-year impact; focus remains on core platform.

• Growth expected to accelerate in the second half of FY25 as AI adoption matures.