Q1 2026 Coveo Solutions Inc Earnings Call

All lines are in listen only mode. Following the presentation, we will conduct a question and answer session.

If at any time during this call you require immediate assistance. Please press star zero for the operator.

This call is being recorded on Thursday July 31, 2025, I would now like to turn the conference over to Mr. <unk>. Please go ahead.

Good afternoon, everyone and thank you for joining us with me to discuss <unk> fiscal first quarter 2026 results, our Aloha Shimano <unk> co founder and Chief Executive Officer Louis Kitchen.

Executive Chairman and Brian Murphy.

Chief Financial Officer.

A reminder, that some remarks made today will be forward looking statements within the meaning of applicable securities laws, including those regarding our plans objectives expected performance and our outlook for the second fiscal quarter and full year fiscal 2026.

Speaker #1: Good afternoon, ladies and gentlemen, and welcome to the Qoveo first quarter fiscal 2026 financial results conference call. At this time, all lines are in listen-only mode.

Operator: Good afternoon, ladies and gentlemen, and welcome to the Coveo first quarter fiscal 2026 financial results conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, July 31st, 2025. I would now like to turn the conference over to Mr. Adhir Kadve. Please go ahead.

These are forward looking statements given as of July 31, 2025, and <unk> and while we believe any statements. We make are reasonable they are based on current expectations and assumptions, which are subject to risks and uncertainties.

Speaker #1: Following the presentation, we will conduct a question and answer session. If at any require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, July 31st, 2025, I would now like to turn the conference over to Mr. Adhir Kadve.

Actual results could differ materially from those expressed or implied.

<unk> disclaims any intent or obligation to update our forward looking statements, whether as a result of new information future events or otherwise.

Speaker #1: Please go head.

Speaker #4: Good afternoon, everyone, and thank you for joining us. With me to discuss Qoveo's fiscal first quarter 2026 results are Laurent Simoneau, Qoveo's co-founder. And chief executive officer, Louis Tetu, Qoveo's executive chairman, and Brandon Nussey, Qoveo's chief financial

Adhir Kadve: Good afternoon, everyone, and thank you for joining us. With me to discuss Coveo's fiscal first quarter 2026 results are Laurent Simoneau, Coveo's co-founder and chief executive officer; Louis Tetu, Coveo's executive chairman; and Brandon Nussy, Coveo's chief financial officer. A reminder that some remarks made today will be forward-looking statements within the meaning of applicable securities laws, including those regarding our plans, objectives, expected performance, and our outlook for the second fiscal quarter and full-year fiscal 2026. These are forward-looking statements given as of July 31st, 2025, and while we believe any statements we make are reasonable, they are based on current expectations and assumptions which are subject to risks and uncertainties. Actual results could differ materially from those expressed or implied. Coveo disclaims any intent or obligation to update our forward-looking statements, whether as a result of new information, future events, or otherwise.

Further information on factors that could affect the Companys financial results is included in the filings, we make with Canadian securities regulators, including in the risk factors section of the company's most recently filed annual information form as well as the key factors affecting our performance section of the company's most recently.

Speaker #4: officer. A reminder that some remarks made today will be time during this call you forward-looking statements within the meaning of applicable securities laws. Including those regarding our plans, objectives, expected performance, and our outlook for the second fiscal quarter and full year fiscal 2026.

Filed MD&A, both of which are available on our SEDAR plus profile at SEDAR, plus dossier, and IR Dot <unk> Dot com.

Additionally, some of the financial measures and ratios discussed on this call are either non ifr's measures ratios or operating metrics used in our industry.

Speaker #4: These are forward-looking statements given as of July 31st, 2025, and we and while we believe any statements we make are reasonable, they are based on current expectations and assumptions which are subject to risks and uncertainties.

A discussion on why we use these metrics and where applicable reconciliation.

<unk> showing ifr's result versus non Io first results are available in our press release and our MD&A issued today. Finally, please note that unless otherwise stated all references and financial figures made today are in U S dollars. Our presentation slides accompanying this conference call can be accessed on our IR website under the news <unk>.

Speaker #4: Actual results could differ materially from those expressed or implied. Qoveo disclaims any intent or obligation to update our forward-looking statements, whether as a result of new information, future events, or otherwise.

Speaker #4: Further information on factors that could affect the company's financial results is included in the filings we make with Canadian Securities Regulators including in the risk factors section of the company's most recently filed annual information form, as well as the key factors affecting our performance section the company's most recently filed MDNA.

Adhir Kadve: Further information on factors that could affect the company's financial results is included in the filings we make with Canadian securities regulators, including in the risk factors section of the company's most recently filed annual information form, as well as the key factors affecting our performance section of the company's most recently filed MD&A, both of which are available on our CDAR Plus profile at cdrplus.ca and on ir.coveo.com. Additionally, some of the finance measures and ratios discussed on this call are either non-IFRS measures, ratios, or operating metrics used in our industry. A discussion on why we use these metrics and, where applicable, reconciliation schedules showing IFRS results versus non-IFRS results are available in our press release and our MD&A issued today. Finally, please note that unless otherwise stated, all references and financial figures made today are in US dollars.

Section.

I will now turn the call over to Louis to review our platform and strategy followed by lower <unk>.

US through our operational and strategic highlights of our first quarter and we will end up with Brandon taking you through the financial details and provide our outlook for Q2 and fiscal 2026. We will then open the line to your questions with that over to you Louie.

Speaker #4: Both of which are available on our Cedar Plus profile at cedarplus.ca. And on ir.qoveo.com. Additionally, some of the finance measures and ratios discussed on this call are either non-IFRS measures, ratios, or operating metrics used in our industry.

Thank you Dear and thanks to everyone joining us on the call.

I am happy to share our continued acceleration of growth once again this quarter.

It comes down to the hard work, we've been doing pushing the boundaries of AI innovation alongside our customers in 2012, when we started in AI and seeing real measurable results and financial benefits.

Speaker #4: A discussion on why we use these metrics and where applicable reconciliation schedules showing IFRS results versus non-IFRS results are available in our press release and our MDNA issued today.

Speaker #4: Finally, please note that unless otherwise stated, all references and financial figures made today are in US dollars. Our presentation slides accompanying this conference call can be accessed on our IR website under the news and events section.

That combined with the demand signals, we saw from the market all gave us confidence that we would see growth acceleration in fiscal 2026. This is what we have told investors over this past year and that is exactly what we're delivering.

Adhir Kadve: Our presentation slides accompanying this conference call can be accessed on our IR website under the news and events section. I will now turn the call over to Louis to review our platform and strategy, followed by Laurent, taking us through our operational and strategic highlights of our first quarter, and we will end off with Brandon taking you through the financial details and provide our outlook for Q2 and fiscal 2026. We will then open the line to your questions. With that, over to you, Louis.

Speaker #4: I will now turn the call over to Louis, to review our platform and strategy followed by Laurent, taking us through our operational and strategic highlights of our first quarter, and we will end off with Brandon taking you through the financial details and provide our outlook for Q2 and fiscal 2026.

After a two year period of experimentation following the launch of Chad GPT and now a widespread recognition of AI is important.

<unk> are very anxious to get results from AI and we continue to believe that <unk> is a market taker in applied AI.

Speaker #4: We will then open the line to your questions. With that, over to you, Louis.

Speaker #5: Thank you, Adhir. And thanks to everyone joining us on the call. I'm happy to share our continued acceleration of growth once again this quarter.

Laurel will share the details, but I want to say that I am extremely proud of the results, we posted and how we're on track to deliver on our promises of continued high growth highly differentiated AI innovation that creates significant value for customers and combined with operational excellence.

Louis Tetu: Thank you, Adhir, and thanks to everyone joining us on the call. I'm happy to share our continued acceleration of growth once again this quarter. It comes down to the hard work we've been doing, pushing the boundaries of AI innovation alongside our customers since 2012, when we started in AI, and seeing real, measurable results and financial benefits. That, combined with the demand signals we saw from the market, all gave us confidence that we would see growth acceleration in fiscal 2026. This is what we have told investors over this past year, and that is exactly what we're delivering. After a two-year period of experimentation following the launch of ChatGPT and now a widespread recognition of AI's importance, leaders are very anxious to get results from AI, and we continue to believe that Coveo is a market taker in applied AI.

Speaker #5: It comes down to the hard work we've been doing pushing the boundaries of AI innovation alongside our customers since 2012 when we started in AI.

It's on track to hit our goals for the year.

Speaker #5: And seeing real measurable results in financial benefits. That combined with the demand signals we saw from the market all gave us confidence that we would see growth acceleration in fiscal 2026.

The first quarter really showed how much the market is recognizing the unique value.

Charity and differentiation of <unk>, we brought on several major enterprise customers complex organization that needed a technology partner, who would connect advanced AI to their own data and deliver real value at enterprise scale. This is a feet very few companies.

Speaker #5: This is what we have told investors over this past year, and that is exactly what we're delivering. After a two-year period of experimentation, following the launch of ChatGPT, and now a widespread recognition of AI's importance, leaders are very anxious to get results from AI.

And technologies can deliver.

<unk> AI platform tackle some of the biggest enterprise challenges out there in digital search personalization recommendations content discovery generative AI and now a very important space for AI experts named agent tick Rag.

Speaker #5: And we continue to believe that Qoveo is a market taker in applied AI. Laurent will share the details. But I want to say that I'm extremely proud of the results we posted and how we're on track to deliver on our promises of continued high growth, highly differentiated AI innovation that creates significant value for customers, and combined with operational excellence.

Louis Tetu: Laurent will share the details, but I want to say that I'm extremely proud of the results we posted and how we're on track to deliver on our promises of continued high growth, highly differentiated AI innovation that creates significant value for customers and combined with operational excellence, keeping us on track to hit our goals for the year. The first quarter really showed how much the market is recognizing the unique value, maturity, and differentiation of Coveo. We brought on several major enterprise customers, complex organizations that needed a technology partner who would connect advanced AI to their own data and deliver real value at enterprise scale. This is a feat very few companies and technologies can deliver.

What sets <unk> apart is our ability to make enterprise AI work on secure enterprise data quickly with precision performance and scale and without can measure.

Speaker #5: Keeping us on track to hit our goals for the year. The first quarter, really showed how much the market is recognizing the unique value maturity and differentiation of Qoveo.

Our customers can tie improvements and business kpis directly to prevail as AI features.

Things like case deflection contact center volume reduction higher average order value user engagement conversion, our worker proficiency and productivity.

Speaker #5: We brought on several major enterprise customers complex organizations that needed a technology partner who would connect advanced AI to their own data, and deliver real value at enterprise scale.

These <unk> adopters are amongst the most innovative and known brands across the world.

Speaker #5: This is a feat very few companies and technologies can deliver. Qoveo's AI platform tackles some of the biggest enterprise challenges out there in digital.

You can see those stories on our website and look no further than our deepening partnerships with customers of firms like.

Louis Tetu: Coveo's AI platform tackles some of the biggest enterprise challenges out there in digital: search, personalization, recommendations, content discovery, generative AI, and now a very important space for AI experts named Agentic RAG. What sets Coveo apart is our ability to make enterprise AI work on secure enterprise data quickly with precision, performance, and scale, and with outcomes you can measure. Our customers can tie improvements in business KPIs directly to Coveo's AI features. Things like case deflection, contact center volume reduction, higher average order value, user engagement, conversion, or worker proficiency and productivity. These Coveo adopters are amongst the most innovative and known brands across the world. You can see those stories on our website, and look no further than our deepening partnerships with customers of firms like SAP, Amazon, and Salesforce as a proof of this.

Amazon and Salesforce as a proof of this.

Speaker #5: Search, personalization, recommendations, content discovery, generative AI, and now a very important space for AI experts, named Agentic RAG. What sets Qoveo apart is our ability to make enterprise AI work on secure enterprise data, quickly, with precision, performance, and scale.

Everything we build is centered around one single thing.

Relevance powered by AI relevance as the foundation of every point of interaction that's how we deliver those secure scalable high impact resolve that matter to your business.

With generative AI, we're taking it a step further our platform keeps large language models grounded in fresh secure enterprise knowledge and content. So the AI is more accurate compliant and useful.

Speaker #5: And without comes you can measure. Our customers can tie improvements in business KPIs directly to Qoveo's AI features. Things like case deflection, contact center volume reduction, higher average order value, user engagement, conversion or worker proficiency and productivity, these Qoveo adopters are amongst the most innovative and known brands across the world.

Not just making up stuff.

At the core of it is our relevance augmented retrieval our definition of rock.

This unique technology architecture.

Which we built over more than a decade working with large global enterprises brings together different search methods demand tick vector.

Speaker #5: You can see those stories on our website. And look no further than our deepening partnerships with customers of firms like SAP, Amazon, and Salesforce as a proof this.

I understand the context in persons in real time.

Speaker #5: Everything we build is centered around one single thing. Relevance, powered by AI. Relevance as the foundation of every point of interaction. That's how we deliver those secure, scalable, high-impact results that matter to your business.

Louis Tetu: Everything we build is centered around one single thing: relevance powered by AI. Relevance has the foundation of every point of interaction. That's how we deliver those secure, scalable, high-impact results that matter to your business. With generative AI, we're taking it a step further. Our platform keeps large language models grounded in fresh, secure enterprise knowledge and content, so the AI is more accurate, compliant, and useful, not just making up stuff. At the core of it is our relevance augmented retrieval, our definition of RAG. This unique technology architecture, which we built over more than a decade working with large global enterprises, brings together different search methods: semantic, vector-based, lexical, and wraps them in AI that really understands context and persons in real time. It means every user, every agent, always gets the most contextually relevant, up-to-date answers, recommendations, driving more revenue, lowering costs, and augmenting productivity.

It means every user every agent always gets the most contextually relevant up to date answers recommendations driving more revenue lowering costs and augmenting productivity.

Looking ahead as businesses move into the world of agent PKI, our platforms gives intelligence agents everything they need to take the right action securely contextually aligned with what matters most to the business.

Speaker #5: With generative AI, we're taking it a step further. Our platform keeps large language models grounded in fresh, secure, enterprise knowledge and content. So the AI is more accurate, compliant, and useful not just making up stuff.

<unk> helps with the intelligence these agents need to automate digital experiences grounded in current and secure enterprise data and keeping everything focused on clear business outcomes.

Speaker #5: At the core of it is our relevance augmented retrieval, our definition of RAG. This unique technology architecture which we built over more than a decade working with large global enterprises brings together different search methods, semantic, vector-based, lexical, and wraps them in AI that really understands context and persons in real time.

In the end <unk> like the connective tissue for the whole enterprise, the spinal intelligence and relevant stack that integrates all content and powering coherent points of experience across digital journeys.

Even for the most complex agent tick AI workflows.

Speaker #5: It means every user, every agent, always gets the most contextually relevant up-to-date answers recommendations, driving more revenue, lowering costs, and augmenting productivity. Looking ahead, as businesses move into the world of Agentic AI, our platforms give intelligent agents everything they need to take the right action.

Relevant teams within large enterprises loved it because.

Because our AI relevance platform is mature fast and flexible.

It works on any data integrates headless into any app or any agent and agent tick orchestrator. So they can launch these powerful highly relevant experiences in a matter of weeks plus.

Louis Tetu: Looking ahead, as businesses move into the world of agentic AI, our platform gives intelligent agents everything they need to take the right action, securely, contextually, aligned with what matters most to the business. Coveo helps with the intelligence these agents need to automate digital experiences, grounded in current and secure enterprise data, and keeping everything focused on clear business outcomes. In the end, Coveo acts like the connective tissue for the whole enterprise, the spinal intelligence and relevance stack that integrates all content and powering coherent points of experience across digital journeys, even for the most complex agentic AI workflows. Development teams within large enterprises love this because our AI relevance platform is mature, fast, and flexible. It works on any data, integrates headless into any app or any agent and agentic orchestrator, so they can launch these powerful, highly relevant experiences in a matter of weeks.

Speaker #5: Securely, contextually, aligned with what matters most to the business. Qoveo helps with the intelligence these agents need to automate digital experiences grounded in current and secure enterprise data and keeping everything focused on clear business outcomes.

Plus we've got powerful tools built in AB testing model transparency tune ability analytics. So teams can keep refining and improving our results all while saving time and lowering risks.

And due to the multi tenancy nature of our platform.

Speaker #5: In the end, Coveo acts like the connective tissue for the whole enterprise, the spinal intelligence and relevance stack that integrates all content and powers coherent points of experience across digital journeys.

Each and every one of our customers gets ongoing evergreen innovation from us.

So I can't wait to see what we achieve next our market is really changing to a degree AI was a technology in search of problems now AI leaders look for results and here, we are delivering great results fast every time, where others aren't.

Speaker #5: Even for the most complex Agentic AI workflows. Development teams within large enterprises love this. Because our AI relevance platform is mature, fast, and flexible.

That's why we're confident about the future.

Speaker #5: It works on any data, integrates headless into any app or any agent and Agentic orchestrator, so they can launch these powerful, highly relevant experiences in a matter of weeks.

With that I'll pass it off to Laura who will further dive into some of the highlights from this quarter morale.

Thank you Luis.

We're starting the year from a position of strength delivering the strongest Q1 bookings performance in company history.

Speaker #5: Plus, we've got powerful tools built in: A/B testing, model transparency, tunability, and analytics. This enables teams to keep refining and improving results, all while saving time and lowering risks.

Louis Tetu: Plus, we've got powerful tools built in: A/B testing, model transparency, tunability, analytics, so teams can keep refining and improving results, all while saving time and lowering risk. And due to the multi-tenancy nature of our platform, each and every one of our customers gets ongoing evergreen innovation from us. So I can't wait to see what we achieve next. Our market is really changing. To a degree, AI was a technology in search of problems. Now, AI leaders look for results. And here we are, delivering great results, fast, every time, where others aren't. That's why we're confident about the future. With that, I'll pass it off to Laurent, who will further dive into some of the highlights from this quarter. Laurent?

SaaS subscription revenue grew to $34 2 million exceeding our guidance and our core of your platform saw subscription revenue growth rate accelerated to 16% year over year.

Speaker #5: And due to the multi-tenancy nature of our platform, each and every one of our customers gets ongoing, evergreen innovation from us. So I can't wait to see what we achieve next.

Although our portfolio platform continues its upward trajectory and expanded 100 basis points sequentially to 108%.

New bookings were diversified across all use cases in regions and came from new and existing customers, including <unk>.

Speaker #5: Our market is really changing to a degree AI was a technology in search of problems. Now, AI leaders look for results. And here we are, delivering great results fast, every time, where others aren't.

<unk> National Bank of Canada comp from our Iberia, Hercules sealing products, Laura, Quebec, and many others.

Speaker #5: That's why we're confident about the future. With that, I'll pass it off to Laurent who will further dive into some of the highlights from this quarter.

Ultra some highlights from the quarter I'd like to underscore another strong performance from our generative AI solutions in a significant expansion transaction with SCB.

Speaker #5: Laurent?

Speaker #6: Thank you, Louis. We're starting the year from a position of strength, delivering the strongest Q1 bookings performance in company history. Our SaaS subscription revenue grew to 34 point 2 million exceeding our guidance and our core Qoveo platform SaaS subscription revenue growth rate accelerated to 16% year over year.

Brandon Nussey: Thank you, Louis. We're starting the year from a position of strength, delivering the strongest Q1 bookings performance in company history. Our self-subscription revenue grew to 34.2 million, exceeding our guidance, and our core Coveo platform's self-subscription revenue growth rate accelerated to 16% year over year. NER on our core Coveo platform continues its upward trajectory and extended 100 basis points sequentially to 108%. New bookings were diversified across all use cases and regions and came from new and existing customers, including: WatchGuard, National Bank of Canada, Comforama Iberia, Hercules Ceiling Products, Lauder Quebec, and many others. Onto some highlights from the quarter, I'd like to underscore another strong performance from our generative AI solutions and a significant expansion transaction with SAP. We're seeing solid momentum here with organizations such as SAP, UKG, AND, and many others selecting Coveo this quarter.

We're seeing solid momentum here with organizations, such as SVP U K G AMD and many other selecting <unk>. This quarter. It is clear that we have a value proposition that is resonating in this dynamic market.

We're leading in this space because the market requires more than just good search capabilities generative AIA has unlocked a new era of personalized experiences that end users now expect a standard however, the native capabilities of the platforms our customers use for commerce and knowledge use cases are often fund.

Speaker #6: NER, on our core Qoveo platform, continues its upward trajectory and extended 100 basis points sequentially to 108%. New bookings were diversified across all use cases and regions, and came from new and existing customers including WatchGuard, National Bank of Canada, Confirma, Iberia, Hercules Ceiling Products, Lotto Quebec, and many others.

Limited when managing the complexity of enterprise level data <unk>.

So it will help solve this our architectural leverages, a retrieval or in the case of Colorado Irrelevance augmented generation framework also known as Rag that combines both lexical in Semitic search to retrieve the most relevant content, which is then used to ground <unk> response.

Speaker #6: On to some highlights from the quarter, I'd like to underscore another strong performance from our generative AI solutions in a significant expansion transaction with SAP.

Speaker #6: We're seeing solid momentum here, with organizations such as SAP, the UKG, AMD, and many others selecting Qoveo this quarter. It is clear that we have a value proposition that is resonating in this dynamic market.

This ensures superior accuracy reduces health nation and provides traceable citation backed outputs.

<unk> indexing layer allows for ingestion of structured and unstructured data across multiple systems.

Brandon Nussey: It is clear that we have a value proposition that is resonating in this dynamic market. We're leading in this space because the market requires more than just good search capabilities. Generative AI has unlocked a new era of personalized experiences that end users now expect a standard. However, the native capabilities of the platforms our customers use for commerce and knowledge use cases are oftentimes limited when managing the complexity of enterprise-level data straws. Coveo helps solve this. Our architecture leverages a retrieval, or in the case of Coveo, a relevance augmented generation framework, also known as RAG, that combines both lexical and semantic search to retrieve the most relevant content, which is then used to ground the LLM's response. This ensures superior accuracy, reduces hallucination, and provides traceable citation-backed outputs.

Speaker #6: We're leading in this space because the market requires more than just good search capabilities. Generative AI has unlocked a new era of personalized experiences that end users now expect as standard.

Well its fine grained security model ensures role based in Ireland, This year, where our access control query time.

While we're extremely privileged to be working with such a diverse and forward thinking group of customers.

Speaker #6: However, the native capabilities of the platforms our customers use for commerce and knowledge use cases are oftentimes limited when managing the complexity of enterprise-level data sprawl.

I want to take a moment on highlights one of them.

<unk>.

We significantly expanded our relationship with S&P. This quarter. It can be understated. This was a landmark transaction that positions <unk> in my view is one of <unk> key AI partners.

Speaker #6: Qoveo helps solve this. Our architectural leverages a retrieval or, in the case of Qoveo, a relevance augmented generation framework, also known as RAG, that combines both lexical and semantic search to retrieve the most relevant content.

We have been collaborating with SPP for several years and most recently, we enabled the journey of AI capabilities behind FCB conquer service portal globally.

Speaker #6: Which is then used to ground the LLM's response. This ensures superior accuracy, reduces house nation, and provides traceable, citation-backed outputs. Qoveo's indexing layer allows for ingestion of structured and unstructured data across multiple systems, while its fine-grained security model ensures role-based and identity-aware access control at query time.

This initiative has delivered significant results, including over 8 million euros in annual cost savings and a 31% reduction in support case volumes.

Brandon Nussey: Coveo's indexing layer allows for ingestion of structured and unstructured data across multiple systems, while its fine-grained security model ensures role-based and identity-aware access control at query time. While we're extremely privileged to be working with such a diverse and forward-thinking group of customers, I want to take a moment and highlight one of them: SAP. We significantly expanded our relationship with SAP this quarter. It can't be understated, this was a landmark transaction that positions Coveo, in my view, as one of SAP's key AI partners. We've been collaborating with SAP for several years, and most recently, we enabled the generative AI capabilities behind SAP's Encur service portal globally. This initiative has delivered significant results, including over 8 million euros in annual cost savings and a 31% reduction in support case volumes.

Building on that success, we're now powering sap's global customer support strategy, what our generative search technology across multiple self service properties.

We anticipate that the annual cost savings will be a multiple of those achieved with culture.

Speaker #6: While we're extremely privileged to be working with such a diverse and forward-thinking group of customers, I want to take a moment and highlight one of them.

This directly supports one of Sep's key strategic priorities, leveraging AI internally to drive operational efficiency and margin expansion.

Speaker #6: SAP. We significantly expanded our relationship with SAP this quarter. It can't be understated. This was a landmark transaction that positions Qoveo in my view as one of SAP's key AI partners.

This expansion showcases the growing adoption of <unk> platform as foundational layer in large scale enterprise deployments.

Moving on to Commerce, our AI powered relevance is also leading to momentum in commerce, our platform delivers measurable business results, including increased conversion revenue and profitability we.

Speaker #6: We've been collaborating with SAP for several years. And most recently, we enabled the generative AI capabilities behind SAP Concur service portal globally. This initiative has delivered significant results, including over 8 million euros in annual cost savings and a 31% reduction in support case volumes.

We achieved this scale across both <unk> and <unk> E Commerce.

This was another strong quarter in commerce, new business bookings grew by 60% year over year and representing one of the best quarters for new business in our history for this use case.

Speaker #6: Building on that success, we're powering SAP's global customer support strategy with our generative search technology across multiple self-service properties. We anticipate that the annual cost savings will be a multiple of those achieved with Concur.

Brandon Nussey: Building on that success, we're now powering SAP's global customer support strategy with our generative search technology across multiple self-service properties. We anticipate that the annual cost savings will be a multiple of those achieved with Concur. This directly supports one of SAP's key strategic priorities: leveraging AI internally to drive operational efficiency and margin expansion. This expansion showcases the growing adoption of Coveo's platform as a foundational layer in large-scale enterprise AI deployments. Moving on to commerce, our AI-powered relevance is also leading to momentum in commerce. Our platform delivers measurable business results, including increased conversion, revenue, and profitability. We achieve this at scale across both B2C and B2B commerce. It was another strong quarter in commerce. New business bookings grew by 60% year over year, and representing one of the best quarters for new business in our history for this use case. Notable customer wins include S.

Notable customer wins include a solid group, San Mar and airgas, each leveraging the career platform to enhance and optimize their commerce experiences.

Speaker #6: This directly supports one of SAP's key strategic priorities, leveraging AI internally to drive operational efficiency and margin expansion. This expansion showcases the growing adoption of Qoveo's platform as foundational layer in large-scale enterprise AI deployments.

I'm excited to highlight our S. Oliver win this quarter S. Oliver is a leading European fashion retailer and this partnership demonstrates a key milestone or b to C growth, we closed the deal and <unk> and <unk> all within the same quarter.

What makes this significant instead as I'll ever came to us after all growing our competitors search capabilities, they need a partner who could deliver truly advanced product discovery that meet modern consumer expectations, while preparing them for next generation shopping experiences.

Speaker #6: Moving on to commerce. Our I-powered relevance is also leading to momentum in commerce. Our platform delivers measurable business results, including increased conversion, revenue, and profitability.

Speaker #6: We achieve this at scale across both B2C and B2B commerce. It was another strong quarter in commerce. New business bookings grew by 60% year over year, and representing one of the best quarters for new business in our history, for this use case.

Importantly, this implementation was delivered through our customers' internal resources and ecosystem. This scalable delivery model is exactly what we've been building towards and demonstrates both our platforms maturity and the growing ecosystem around it.

Speaker #6: Notable customer wins include S Oliver Group, Sanmar, and Airgas, each leveraging the Qoveo platform to enhance and optimize their commerce experiences. I'm excited to highlight our S Oliver win this quarter.

First of all are represented with sophisticated b to C customers, we're winning esolar various six brands each with menu locales and hundreds of thousands of Skus for locale.

Brandon Nussey: Oliver Group, Sanmar, and Airgas, each leveraging the Coveo platform to enhance and optimize their commerce experiences. I'm excited to highlight our S. Oliver win this quarter. S. Oliver is a leading European fashion retailer, and this partnership demonstrates a key milestone in our B2C growth. We closed the deal and submitted, and it went live all within the same quarter. What makes this significant is that S. Oliver came to us after outgrowing a competitor's search capabilities. They needed a partner who could deliver truly advanced product discovery that meets modern consumer expectations while preparing them for next-generation shopping experiences. Importantly, this implementation was delivered through our customers' internal resources and ecosystem. This scalable delivery model is exactly what we've been building toward and demonstrates both our platform's maturity and the growing ecosystem around it. S. Oliver represents the sophisticated B2C customers we're winning. S.

Companies like this view search and discovery strategic Differentiators not just basic functionality.

Speaker #6: S Oliver is a leading European fashion retailer, and this partnership demonstrates a key milestone in our B2C growth. We closed the deal and cemented an event like all within the same quarter.

Finally, let me speak about our growing position in agent Tech.

Our agent <unk> ambitions are progressing nicely.

Speaker #6: What makes this significant is that S Oliver came to us after our growing competitors' search capabilities. They needed a partner who could deliver truly advanced product discovery that meets modern consumer expectations while preparing them for next-generation shopping experiences.

Now, it's a host of enhancements to our capabilities for customers using Salesforce and AWS you will recall that we were a launch partner with Salesforce agent force back in March, but we are always available on the new agent exchange marketplace, providing salesforce customers with the ability to access relevant.

Speaker #6: Importantly, this implementation was delivered through our customers' internal resources and ecosystem. This scalable delivery model is exactly what we've been building toward and demonstrates both our platform's maturity and the growing ecosystem around it.

Chris and secure content from the broader enterprise and makes it available inside agent force.

We recently announced support for agent force tree with specific investments around MCP interoperability.

Speaker #6: S Oliver represents the sophisticated B2C customers we're weighing. S Oliver is six brands, each with many locales, and hundreds of thousands of SKUs per locale.

It's early days, but I'm glad to report we already are seeing in the show's success.

Brandon Nussey: Oliver is six brands, each with many locales and hundreds of thousands of SKUs per locale. Companies like this view search and discovery as strategic differentiators, not just basic functionality. Finally, let me speak about our growing position in Agentic. Our Agentic ambitions are progressing nicely. We announced a host of enhancements to our capabilities for customers using Salesforce and AWS. You will recall that we were a launch partner with Salesforce Agentforce back in March. Coveo is available on the new Agent Exchange Marketplace, providing Salesforce customers with the ability to access relevant, accurate, and secure content from the broader enterprise and make it available inside Agentforce. We recently announced support for Agentforce 3 with specific investments around MCP interoperability.

And I remain quite excited about our potential to continue to help organization with their agent Force Rollouts.

Speaker #6: Companies like this use search and discovery as strategic differentiators, not just basic functionality. Finally, let me speak about our growing position in Agentic. Our Agentic ambitions are progressing nicely.

We have also announced will prevail will be available on the AWS marketplace, a rug capabilities will enhance and enrich these agent experiences built using AWS bedrock agents.

Speaker #6: We announced a host of enhancements to our capabilities for customers using Salesforce and AWS. You will recall that we were a launch partner with Salesforce Agent Force back in March.

Last quarter, we announced that we would be developing our agent <expletive> rug capabilities similar to what we did with <unk>, we're leveraging our customers design partners in our efforts and is coming along nicely.

Speaker #6: Qoveo is available on the new agent exchange marketplace, providing Salesforce customers with the ability to access relevant, accurate, and secure content from the broader enterprise and make it available inside Agent Force.

I want to note that recent industry move which has highlighted the risks of refining too heavily on the vertically integrated platforms, especially when orchestration and retrieval are tightly coupled.

Speaker #6: We recently announced support for Agent Force 3 with specific investments around MCP interoperability. It's early days, but I'm glad to report we already are seeing initial success.

While it remains to be seen how this will ultimately play out I want to remind everyone that in contrast prevail remains deliberately agnostic to the orchestration layer.

Brandon Nussey: It's early days, but I'm glad to report we already are seeing initial success, and I remain quite excited about our potential to continue to help organizations with their Agentforce rollouts. We've also announced that Coveo will be available on the AWS Marketplace. Our RAG capabilities will enhance and enrich these Agentic experiences built using AWS Bedrock Agents. Last quarter, we announced that we would be developing our Agentic RAG capabilities. Similar to what we did with CRGA, we're leveraging our customers as design partners in our efforts, and it's coming along nicely. I want to note a recent industry move, which has highlighted the risks of relying too heavily on vertically integrated platforms, especially when orchestration and retrieval are tightly coupled. While it remains to be seen how this will ultimately play out, I want to remind everyone that in contrast, Coveo remains liberty-agnostic to the orchestration layer.

We don't seek to own the UX or compete for end user attention instead, we focus on borrowing retrieval and relevance behind the scenes.

Speaker #6: And I remain quite excited about our potential to continue to help organizations with their Agent Force rollouts. We've also announced that Qoveo will be available on the AWS marketplace.

This enables customers to build differentiated AI experiences wherever they need without fear of platform politics disrupting their workflows.

Speaker #6: Our RAG capabilities will enhance and enrich these agentic experiences built using AWS Bedrock agents. Last quarter, we announced that we would be developing our Agentic RAG capabilities.

To wrap up I want to briefly reiterate the fiscal 2026 priorities, we outlined back in May.

Speaker #6: Similar to what we did with CRGA, we're leveraging our customers as design partners in our efforts. And it's coming along nicely. I want to note a recent industry move which has highlighted the risks of relying too heavily on vertically integrated platforms, especially when orchestration and retrieval are tightly coupled.

Number one drive growth with strong unit economics, and a high recurring margin profile.

And Rick to deliver meaningful innovation that creates real tangible value for our customers.

Number three maintain and enhance operational excellence with a clear focus on sales execution and customer success.

Speaker #6: While it remains to be seen how this will ultimately play out, I want to remind everyone that in contrast, Qoveo remains deliberately agnostic to the orchestration layer.

We believe we are well on track across all three fronts and this quarter lays a strong foundation for the year ahead.

Speaker #6: We don't seek to own the UX or compete for end-user attention. Instead, we focus on powering retrieval and relevance behind the scenes. This enables customers to build differentiated AI experiences wherever they need, without fear of platform politics disrupting their workflows.

Brandon Nussey: We don't seek to own the UX or compete for end-user attention. Instead, we focus on powering retrieval and relevance behind the scenes. This enables customers to build differentiated AI experiences wherever they need, without fear of platform politics disrupting their workflows. To wrap up, I want to briefly reiterate the fiscal 2026 priorities we outlined back in May. Number one, drive growth with strong unit economics and a high recurring margin profile. Number two, deliver meaningful innovation that creates real, tangible value for our customers. And number three, maintain and enhance operational excellence with a clear focus on sales execution and customer success. We believe we are well on track across all three fronts, and this quarter lays a strong foundation for the year ahead. With that, I will turn it over to Brandon. We'll walk you through the financial details. Brandon?

With that I will turn it over to Brandon will walk you through the financial details Brendan.

Brendan.

Thanks, Laura.

<unk> is off to a strong start.

Building on two record setting quarters in Q3, and Q4 of fiscal 'twenty five we delivered the strongest Q1 bookings performance in the company's history.

Speaker #6: To wrap up, I want to briefly reiterate the fiscal 2026 priorities we outlined back in May. Number one, drive growth with strong unit economics and a high recurring margin profile.

This performance has contributed to a reacceleration in our reported revenue with <unk> core platform revenue growing 16% year over year.

Consistent with our earlier guidance the demand signals remain strong reinforcing our confidence in continued revenue growth through the remainder of the fiscal year.

Speaker #6: Number two, deliver meaningful innovation that creates real tangible value for our ustomers. And number three, maintain and enhance operational excellence with a clear focus on sales execution and customer success.

This momentum is reflected in the Q2 and full year guidance, we're sharing today and more on that shortly.

Quickly summarize Q1, SaaS subscription revenue was $34 2 million, an increase of 12% year over year and ahead of our guidance.

Speaker #6: We believe we are well on track across all three fronts. And this quarter lays a strong foundation for the year ahead. With that, I will turn it over to Brandon.

As always our focus remains on the <unk> platform, where we delivered $33 1 million in revenue growing 16% year over year.

Speaker #6: We'll walk you through the financial details. Brandon?

Speaker #7: Thanks, Laurent. Fiscal '26 is off to a strong start. Building on two record-setting quarters in Q3 and Q4 of fiscal '25, we delivered the strongest Q1 bookings performance in the company's history.

<unk> also showed this reacceleration with our IRR growth rate being slightly higher than our core SaaS revenue growth rate for the quarter.

Brandon Nussey: Thanks, Laurent. Fiscal '26 is off to a strong start. Building on two record-setting quarters in Q3 and Q4 of fiscal '25, we delivered the strongest Q1 bookings performance in the company's history. This performance has contributed to a re-acceleration in reported revenue, with Coveo core platform revenue growing 16% year over year. Consistent with our earlier guidance, the demand signals remain strong, reinforcing our confidence in continued revenue growth through the remainder of the fiscal year. This momentum is reflected in the Q2 and full-year guidance we're sharing today, and more on that shortly. To quickly summarize, Q1 SaaS subscription revenue was 34.2 million, an increase of 12% year over year, and ahead of our guidance. As always, our focus remains on the Coveo core platform, where we delivered 33.1 million in revenue, growing 16% year over year.

Currency movements had minimal influence this quarter with a positive impact of less than 1%.

Speaker #7: This performance has contributed to a re-acceleration in reported revenue, with Qoveo core platform revenue growing 16% year over year. Consistent with our earlier guidance, the demand signals remain strong, reinforcing our confidence in continued revenue growth through the remainder of the fiscal year.

Revenue from the <unk> platform was $1 million in the quarter down nearly 50% from last year.

We've communicated at the end of life for the platform and we continue to expect that remaining revenue fully churn this year.

Our total revenue was $35 5 million, increasing 10% year over year.

Speaker #7: This momentum is reflected in the Q2 and full year guidance we're aring today, and more on that shortly. To quickly summarize Q1, SaaS subscription revenue was 34.2 million and reased of 12% year over year, and ahead of our guidance.

Total revenue was impacted by ongoing qubit churn and declining professional services revenue as we continue to leverage our partners to take on more of this work.

Adjusted EBITDA loss was $1 9 million compared to a $1 7 million loss last year.

Cash flows from operations were a strong $7 1 million in the quarter versus 3.0 million last year, and we ended the quarter with $128 5 million and no debt.

Speaker #7: As always, our focus remains on the Qoveo core platform where we delivered 33.1 million in revenue, growing 16% year over year. Our ARR also showed this re-acceleration with our ARR growth rate being slightly higher than our core SaaS revenue growth rate for the quarter.

Brandon Nussey: Our ARR also showed this re-acceleration, with our ARR growth rate being slightly higher than our core SaaS revenue growth rate for the quarter. Currency movements had minimal influence this quarter, with a positive impact of less than 1%. Revenue from the QBit platform was 1 million in the quarter, down nearly 50% from last year. We've communicated end of life for the platform, and we continue to expect that remaining revenue will fully churn this year. Our total revenue is 35.5 million, increasing 10% year over year. Total revenue is impacted by ongoing QBit churn and declining professional services revenue as we continue to leverage our partners to take on more of this work. Adjusted EBITDA loss was 1.9 million compared to a 1.7 million loss last year.

During the quarter approximately $2 $7 million were used to purchase for cancellation approximately 511000 shares pursuant to our CIB.

Speaker #7: Currency movements had minimal influence this quarter with a positive impact of less than 1%. Revenue from the qubit platform was 1 million in the quarter, down nearly 50% from last year.

From the launch of our NCI B in July of 2024 were purchased for cancellation. The maximum $2 7 million shares for an aggregate consideration of $12 $6 million.

Speaker #7: We've communicated end-of-life for the platform, and we continue to expect that remaining revenue will fully churn this year. Our total revenue was 35.5 million, increasing 10% year over year.

Looking deeper at bookings and knowledge use cases, we see ongoing strong demand for our generative AI solutions, which represented approximately 50%.

Speaker #7: Total revenue is impacted by ongoing qubit churn, and declining professional services revenue as we continue to leverage our partners to take on more of this work.

Bookings in the quarter, we have tripled our IRR contribution from this product from a year ago and generative AI solutions now make up approximately 10% of our aggregate IRR from a standing start less than two years ago I am quite pleased with the progress of this product are continue to be encouraged by our near perfect rich.

Speaker #7: Adjusted EBITDA loss was 1.9 million compared to a 1.7 million loss last year. Cash flows from operations were a strong 7.1 million in the quarter versus 3.0 million last year.

Brandon Nussey: Cash flows from operations were a strong 7.1 million in the quarter versus 3.0 million last year, and we ended the quarter with 128.5 million in no debt. During the quarter, approximately $2.7 million were used to purchase for cancellation approximately 511,000 shares pursuant to our NCIB. From the launch of our NCIB in July of 2024, we purchased for cancellation the maximum 2.7 million shares for an aggregate consideration of $12.6 million. Looking deeper at bookings, in knowledge use cases, we see ongoing strong demand for our generative AI solutions, which represented approximately 50% of our bookings in the quarter. We have tripled our ARR contribution from this product from a year ago, and generative AI solutions now make up approximately 10% of our aggregate ARR. From a standing start less than two years ago, I'm quite pleased with the progress of this product.

Pension rates here in any of our for this specific product continues to be greater than 150%.

Speaker #7: And we ended the quarter with 128.5 million and no debt. During the quarter, approximately 2.7 million dollars were used to purchase for cancellation approximately 511 thousand shares pursuant to our NCIB.

Commerce remains our fastest growing use case and represented more than half of our new customer wins this quarter with ongoing success from our SAP partnership.

Speaker #7: From the launch of our NCIB in July 2024, we purchased for cancellation the maximum 2.7 million shares for an aggregate consideration of $12.6 million.

This partnership is firmly hitting its stride and we continue to be optimistic about the future opportunities here and for commerce in general.

All told I'm encouraged by our bookings performance and continue to see some signals of ongoing momentum.

Speaker #7: Looking deeper at bookings, in knowledge use cases, we see ongoing strong demand for our generative AI solutions which represented approximately 50% of our bookings in the quarter.

Our net expansion rate for the quarter came in at 108% when excluding Cuba related churn.

This was up 100 basis points sequentially and up from 106% a year ago, our investments in our account management function are showing real results and I'm pleased with the progress.

Speaker #7: We have tripled our ARR contribution from this product from a year ago, and generative AI solutions now make up approximately 10% of our aggregate ARR.

Speaker #7: From a standing start less than two years ago, I'm quite pleased with the progress of this product. I continue to be encouraged by our near-perfect retention rates here, and NER for this specific product continues to be greater than 150%.

As noted last quarter, we plan to reinvest or incremental cash flow this year to fuel future growth.

Brandon Nussey: I continue to be encouraged by our near-perfect retention rates here, and NER for this specific product continues to be greater than 150%. Commerce remains our fastest growing use case and represented more than half of our new customer wins this quarter, with ongoing success from our SAP partnership. This partnership is firmly hitting its stride, and we continue to be optimistic about the future opportunities here and for commerce in general. All told, I'm encouraged by our bookings performance and continue to see signals of ongoing momentum. Our net expansion rate for the quarter came in at 108% when excluding the QBit-related churn. This was up 100 basis points sequentially and up from 106% a year ago. Our investments in our account management function are showing real results, and I'm pleased with the progress.

Given the strong demand signals ongoing go to market efficiency gains.

And with our healthy gross margins and strong customer retention. We believe these investments will be key to driving greater long term profitability.

Speaker #7: Commerce remains our fastest growing use case. And representing more than half of our new customer wins this quarter, with ongoing success from our SAP partnership.

<unk>, we plan to make these investments while maintaining positive operating cash flows of approximately $10 million for this fiscal year. We've already made meaningful progress in Q1, we increased our quota carrying field organization by roughly 20% and it is now approximately 80% larger than this time last year.

Speaker #7: This partnership is firmly hitting its stride, and we continue to be optimistic about the future opportunities here and for commerce in general. All told, I'm encouraged by our bookings performance and continue to see signals of ongoing momentum.

We continue to believe this investment will pay off.

Speaker #7: Our net expansion rate for the quarter came in at 108% when excluding the qubit-related churn. This was up 100 basis points sequentially and up from 106% a year ago.

The larger field presence amplifies, our reach and impact across our active and markets. While it's still early to fully assess results given the typical multi quarter ramp before these efforts converted into bookings we remain confident and we will closely monitor performance.

Speaker #7: Our investments in our account management function are showing real results. And I'm pleased with the progress. As noted last quarter, we plan to reinvest our incremental cash flow this year to fuel future growth.

Brandon Nussey: As noted last quarter, we plan to reinvest our incremental cash flow this year to fuel future growth. Given the strong demand signals, ongoing go-to-market efficiency gains, and combined with our healthy gross margins and strong customer retention, we believe these investments will be key to driving greater long-term profitability. Importantly, we plan to make these investments while maintaining positive operating cash flows of approximately $10 million this fiscal year. We've already made meaningful progress. In Q1, we increased our quota-carrying field organization by roughly 20%, and it is now approximately 80% larger than this time last year. We continue to believe this investment will pay off. A larger field presence amplifies our reach and impact across our active end markets. While it's still early to fully assess results, given the typical multi-quarter ramp before these efforts convert into bookings, we remain confident and will closely monitor performance.

I'll end off with our guidance for Q2 and the fiscal year.

Based on our Q1 results and the signals. We are seeing we are on track to return to 20% growth rates by the end of the fiscal year for our <unk> core.

Speaker #7: Given the strong demand signals, ongoing go-to-market efficiency gains, and combined with our healthy gross margins and strong customer retention, we believe these investments will be key to driving greater long-term profitability.

As always <unk> growth will lead to reported revenue growth by a quarter or so.

Speaker #7: Importantly, we plan to make these investments while maintaining positive operating cash flows of approximately 10 million dollars this fiscal year. We've ready made meaningful progress.

For Q2, we expect SaaS subscription revenue of between 35, 3% and $35 8 million in total revenue between $36 six to $37 1 million for the fiscal year, we remain confident with our previously issued SaaS subscription revenue guidance of 100.

Speaker #7: In Q1, we increased our quota-carrying field organization by roughly 20%. And it is now approximately 80% larger than this time last year. We continue to believe this investment will pay off.

41, five to $144 5 million and total revenue guidance of $1 47, five to $150 5 million.

Speaker #7: A larger field presence amplifies our reach and impact across our active end markets. While it's still early to fully assess results given the typical multi-quarter ramp before these efforts convert into bookings, we remain confident and will closely monitor performance.

Which would see us return to the growth rates I just mentioned.

On adjusted EBITDA for Q2, we are expecting adjusted EBITDA to be between negative 0.5 to positive zero point $5 million and we expect to be approximately breakeven for the full fiscal year.

Speaker #7: I'll end off with our guidance for Q2 and the fiscal year. Based on our Q1 results and the signals we are seeing, we are on track to return to 20% growth rates by end of the fiscal year for our Qoveo core.

Brandon Nussey: I'll end off with our guidance for Q2 and the fiscal year. Based on our Q1 results and the signals we are seeing, we are on track to return to 20% growth rates by the end of the fiscal year for our Coveo core. As always, ARR growth will lead reported revenue growth by a quarter or so. For Q2, we expect SaaS subscription revenue of between 35.3 and 35.8 million, and total revenue between 36.6 to 37.1 million. For the fiscal year, we remain confident with our previously issued SaaS subscription revenue guidance of 141.5 to 144.5 million, and total revenue guidance of 147.5 to 150.5 million, which would see us return to the growth rates I just mentioned.

We continue to expect to deliver approximately $10 million in operating cash flow for the year and this will have some variability quarter to quarter with working capital fluctuations.

Speaker #7: As always, ARR growth will lead reported revenue growth by a quarter or so. For Q2, we expect SaaS subscription revenue of between 35.3 and 35.8 million.

In summary, we're off to a great start in 2026 and remain optimistic on the future.

With that operator, you may now open the line for questions.

Speaker #7: And total revenue between 36.6 to 37.1 million. For the fiscal year, we remain confident with our previously issued SaaS subscription revenue guidance. Of 141.5 to 144.5 million.

Thank you.

Ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by the number one on your Touchtone. Following you will hear a pump that Johan has been raised should you wish to decline from the Permian Rockies. Please press the star followed by the number two if.

Speaker #7: And total revenue guidance of 147.5 to 150.5 million. Which would see us return to the growth rates I just mentioned. On adjusted EBITDA, for Q2, we are expecting adjusted EBITDA to be between negative 0.5 million to positive 0.5 million.

<unk> Nikko.

Please lift the handset before pressing anarchy.

Brandon Nussey: On adjusted EBITDA for Q2, we are expecting adjusted EBITDA to be between negative 0.5 million to positive 0.5 million, and we expect to be approximately break-even for the full fiscal year. We continue to expect to deliver approximately 10 million in operating cash flow for the year, and note this will have some variability quarter to quarter with working capital fluctuations. In summary, we're off to a great start in 2026 and remain optimistic on the future. With that, operator, you may now open the line for questions.

One moment. Please for your first question.

Your first question comes from the line of Donald Smith, <unk> from BMO capital markets. Your line is now open. Please go ahead.

Speaker #7: And we expect to be approximately break-even for the full fiscal year. We continue to expect to deliver approximately 10 million in operating cash flow for the year, and note this will have some variability quarter to quarter with working capital fluctuations.

Hi, good afternoon.

Perhaps when the accelerating momentum in the business.

With respect to the.

Sales hires just remind us as most of your hiring for this year has that already happened is very much front end loaded or.

Speaker #7: In summary, we're off to a great start in 2026. And remain optimistic on the future. And with that, operator, you may now open the line for questions.

There is still open.

Ill open positions that you plan to sell through the course of the year.

Hey.

Thanks for the comments.

Yes. It is it is more heavily tilted towards the front half of the year of course, we will continue to.

Speaker #1: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star, followed by the number one on your touch-tone phone.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star, followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star, followed by the number two. If you are using a speaker phone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from the line of Thanos Musciopolis from BMO Capital Markets. Your line is now open. Please go ahead.

Build as we see results and as we continue to see confidence, but yes. They are in more tilted to the beginning of the year.

Speaker #1: You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the number two.

Great and.

Regarding S&P, Great news, obviously with respect to their expansion.

Speaker #1: If ou are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from the line of Thanos Mustapolis from BMO Capital Markets.

In terms of S&P as E channel.

Clearly you called out some wins there but.

Maybe some more color in terms of.

That's been growing in progressing and.

Speaker #1: Your line is now open. Please ahead.

The traction youre seeing on that front.

Speaker #8: Hi. Good afternoon. And congrats on the accelerating momentum in the . with respect to the, sales hires, just remind us, is is most of your, hiring for this year, has that already happened?

Analyst (various, e.g., Thanos Musciopolis, David Kwan, Paul Treiber, Suthan Sukunar, Doug Taylor, Richard Day, Koji Aikita, George McGrean): Hi, good afternoon, and congrats on the accelerating momentum in the business. With respect to the sales hires, just remind us, is most of your hiring for this year, has that already happened? Is it very much front-end loaded, or are there still open positions that you plan to fill through the course of the year?

Alright, Thanos this l'oreal here so from a from a commerce perspective.

Is.

He is a great partner to us and we're seeing we're seeing success together.

Speaker #8: Is it very much front-end loaded , are there still, open positions that you plan to fill through the course of year?

No. Obviously, we we can potentially do more wood SVP and there is the <unk>.

Speaker #7: Hey, Thanos. thanks for the ments. yeah, it is, it is more heavily tilted towards the front half of the year. of course, we'll continue to, you know, build as we see results, and as we, continue to see confidence.

Brandon Nussey: Hey, Thanos, thanks for the comments. Yeah, it is more heavily tilted towards the front half of the year. Of course, we'll continue to build as we see results and as we continue to see confidence, but yeah, they are more tilted to the beginning of the year.

A player into the agent deck space and we are looking forward for future collaboration with them.

Okay, and what about the opportunity on the surface side with S&P.

Speaker #7: But yeah, they are more tilted to the beginning of the year.

Speaker #8: Agree. And, regarding SAP, great news, obviously. with respect to their expansion, in terms of SAP as a channel, it clearly you call that some, some wins there.

Yes, yes.

Analyst (various, e.g., Thanos Musciopolis, David Kwan, Paul Treiber, Suthan Sukunar, Doug Taylor, Richard Day, Koji Aikita, George McGrean): Agreed. And regarding SAP, great news, obviously, with respect to their expansion. In terms of SAP as a channel, clearly you call that some wins there, but maybe some more color in terms of how that's been growing and progressing and the traction you're seeing on that front.

Yes, I think.

What we mentioned on the call about our CPE is.

And they are using us as SVP of customer for multiple use cases, and Seb Coe sure. As if you remember was has been using <unk> for a while now and documented.

Speaker #8: But, maybe some more color in terms , how, how that's been growing and progressing

Speaker #8: and, the traction you're go eing on that front.

Right. We believe great results in terms of in terms of cadence of flexion and plus avoidance over a year now we're moving to their global customer experience, which will we anticipate will be a multiple of that right.

Speaker #7: Hi, Thanos. This is Laurent here. So, from a, from a commerce perspective, SAP is, is a great partner to us. And, we're seeing, we're seeing, seeing success together.

Laurent Simoneau: Hi, Thanos. This is Laurent here. So from a commerce perspective, SAP is a great partner to us, and we're seeing success together. Now, obviously, we can potentially do more with SAP, and they are a player into the agentic space, and we are looking forward for future collaboration with them.

Speaker #7: Now, obviously, we, we can potentially do more with SAP. And there's, they are a player into the agentic space. And, we are looking forward for, for future collaboration with them.

So SVP of course has agentic ambitions.

We you can assume that we are discussing how we will how we will get there.

Dam and <unk>.

We are doing with ACP is a customer obviously provided.

Speaker #8: Okay. And what about the opportunity on the service side with SAP?

Analyst (various, e.g., Thanos Musciopolis, David Kwan, Paul Treiber, Suthan Sukunar, Doug Taylor, Richard Day, Koji Aikita, George McGrean): Okay. And what about the opportunity on the service side with SAP?

Good a good foundation for that.

Alright, I'll pass the line. Thank you.

Speaker #7: Yes. Yes. I think, I think what we mentioned on the call about SAP is, they're using us as SAP to customer for multiple use cases.

Laurent Simoneau: Yes. Yes. I think what we mentioned on the call about SAP is they're using us as SAP to customer for multiple use cases. And SAP Concur, as you remember, has been using Coveo for a while now and documented great, we believe, great results in terms of case deflection and cost avoidance over a year. Now we're moving to their global customer experience, which we anticipate will be a multiple of that, right? So SAP, of course, has agentic ambitions. You can assume that we're discussing how we'll get there with them, and what we're doing with SAP as a customer obviously provides a good foundation for that.

Your next question comes from the line of David Klein from TD Cowen. Your line is now open. Please go ahead.

Speaker #7: And, SAP Concur, as, as you ember, was, has been using Qoveo for a while now. And documented, great. We believe great results. In terms of, in terms of case affliction and cost avoidance over, over a year.

Hey, good afternoon guys.

Touching on our SAP partnership.

Little bit more here can you talk about maybe the size and the composition of the team.

<unk> got dedicated to the SAP partnership.

How do you see the size of sizes of <unk> growing in the coming.

Speaker #7: Now we're moving to their global, customer experience. Which will, we anticipate, will be in multiple of that, right? so SAP, of course, has agentic ambitions.

As in years.

Hey, David.

Look we've got dedicated partner managers and folks that spend a lot of time walking the halls of S&P and strengthening the overall relationship there that's a small team.

Speaker #7: we, you can assume that we're discussing how we'll, how we'll get there. with them. And, and what we're doing with SAP as a customer, obviously, provides a, a od, a good foundation for that.

Their job is.

It is to uncover opportunities and make sure it <unk> front of mind wherever they can.

We don't have a dedicated field organization.

Speaker #8: Great. I'll pass the line. Thank you.

Analyst (various, e.g., Thanos Musciopolis, David Kwan, Paul Treiber, Suthan Sukunar, Doug Taylor, Richard Day, Koji Aikita, George McGrean): Great. I'll pass the line. Thank you.

In other words, a dedicated sales team per se.

Just an important alliance partner and as we map out our territories and.

Speaker #1: Your next question comes from the line of David Quan from TD Cowan. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of David Kwan from TD Cowan. Your line is now open. Please go ahead.

The markets were going after and we do that collaboratively with SAP field to see where they can be helpful.

Speaker #9: Good afternoon, guys. Touching on the SAP partnership a little bit more here, can you talk about maybe the size and composition of the team that you've got dedicated to the SAP partnership?

Analyst (various, e.g., Thanos Musciopolis, David Kwan, Paul Treiber, Suthan Sukunar, Doug Taylor, Richard Day, Koji Aikita, George McGrean): Good afternoon, guys. Touching on SAP, the partnership a little bit more here, can you talk about maybe the size and the composition of the team that you've got dedicated to the SAP partnership, and how do you see the size of this team here growing in the coming quarters and years?

But theres not theres not dedicated salespeople per se, it's just our overall rep.

Inside of Commerce that leverage the SAP relationship.

Speaker #9: And how do you see the size as size of this team here growing in, in the coming, quarters and years?

Maybe David if I can add on here.

Our platform is agnostic as you know, it's pretty it's pretty generic so we have a light.

Speaker #7: Hey, David. look, we've got dedicated partner managers and, and folks that spend a lot of time walking the halls of, of SAP and, and strengthening the overall relationship there.

Brandon Nussey: Hey, David. Look, we've got dedicated partner managers and folks that spend a lot of time walking the halls of SAP and strengthening the overall relationship there. That's a small team. You know, their job is to uncover opportunities and make sure Coveo is front of mind wherever they can. We don't have a dedicated field organization, in other words, a dedicated sales team per se. SAP is just an important alliance partner, and as we map out our territories and the markets we're going after, we do that collaboratively with SAP's field to see where they can be helpful. But there's not dedicated salespeople per se. It's just our overall reps inside of commerce that leverage the SAP relationship.

<unk> team on the product side and tech side or a native integration.

SAP, allowing us to be and endorsed partner with as CPE, which is which is very high category either highest category a partnership with them.

Speaker #7: That's a small team. you know, their job is, is to uncover opportunities and ake sure, you know, Qoveo's front of mind wherever they can.

So.

Speaker #7: we don't have a dedicated field organization in, in other words, a dedicated sales team per se. SAP is just an important alliance partner. And as we map out our, our territories and, the markets we're going after, we do that collaboratively with SAP's field to see where they can be helpful.

It's a.

That's a great investment for us base.

Yeah. Thanks, Thanks for additional color there.

And also Brendan so I guess would it be fair to say that SAP SAP is really kind of the number one partner opportunities for you guys over the next.

Couple of years, and how do you see that.

Speaker #7: but there's not, there's not dedicated salespeople per se. It's just our overall, reps inside of commerce, that leverage the SAP relationship.

The comparisons lets say sales force or shop fiery or AWS.

Speaker #10: And maybe, David, if I can add that this is Laurent here. our platform is agnostic. As you know, it's pretty, it's pretty generic. So we have a light team on a product side and tech side for a native integration.

Laurent Simoneau: And maybe, David, if I can add, this is Laurent here. Our platform is agnostic, as you know. It's pretty generic. So we have a light team on the product side and tech side for a native integration with SAP, allowing us to be an endorsed partner with SAP, which is a very high category, the highest category of partnership with them. So it's a great investment for us, basically.

We have evolved over the years to become really agnostic and really supporting those multiple platforms with multiple on those multiple players out there. So so.

<unk> is a great partner to us such as AWS and we're also seeing.

Speaker #10: With SAP, allowing us to be an endorsed partner with SAP, which is, which is very high category, ither highest category of partnership with them.

Good movement with Salesforce agent force right now, so, but really we're positioning ourselves.

Speaker #10: So it's, it's a, it's a great investment for us, basically.

As an agnostic platform to support all of these players and there are more of course, potentially where we where we can bring a lot of value to it.

Speaker #8: Yep. Thanks, thanks for the itional call in there, ent. And, and, and, and, also Brandon. So I guess it would it be fair to say that SAP, SAP is really kind of the, the number one partner opportunity for you guys over the next, you know, couple of years?

Analyst (various, e.g., Thanos Musciopolis, David Kwan, Paul Treiber, Suthan Sukunar, Doug Taylor, Richard Day, Koji Aikita, George McGrean): No, thanks for the additional color there, Laurent, and also Brandon. So I guess, would it be fair to say that SAP is really kind of the number one partner opportunity for you guys over the next couple of years? And how do you see the comparisons with, say, Salesforce or Shopify or AWS?

Hey, Thanks, a lot.

I just want to say.

They cover different market, let's remind ourselves as we talked about on previous calls that as A&P really from in.

Speaker #8: And, and how do you see that, the comparisons with, say, Salesforce or Shopify or, or AWS?

As measured in gross merchandise value is that safety remains one of the most if not the most important e-commerce platform across the world. They have about 300 503500 customers, but they are the basically all the large enterprises they occupy that particular segment.

Speaker #7: we have evolved over the years. To become really agnostic, and really, supporting those multiple platforms with those multiple players out there. So, so SAP is a great partner to us, such as is AWS and, we're also seeing, good movement with, Salesforce Agent Force right now.

Laurent Simoneau: We have evolved over the years to become really agnostic and really supporting those multiple platforms or those multiple players out there. So SAP is a great partner to us, such as is AWS, and we're also seeing a good movement with Salesforce Agentforce right now. But really, we're positioning ourselves as an agnostic platform to support all of these players. And there are more, of course, potentially where we can bring a lot of value to it.

And our <unk> relationship.

Means that we're one of the few apps in the world where the.

The SAP sales team gets full quota credit.

And full commission on the gross dollar just like their own app. So.

Speaker #7: So, but really, we position ourselves as an agnostic platform to support all of these players. And there are more, of course, potentially, where we can bring a lot of value to it.

It's quite a privileged relationship obviously and it took a lot of work to get there, but thats in that specific space.

Our partnership with Salesforce is.

Is now Salesforce is launched.

Speaker #2: Hey, Louis. I just want to say they, they cover different markets. You know, let's remind ourselves as we talked about on previous calls that SAP really, from in, in, you ow, as measured in gross merchandise values, SAP remains, one of the most, if not the most important, e-commerce platform across the world.

Adhir Kadve: Hey, Louis T. I just want to say they cover different markets. You know, let's remind ourselves, as we talked about on previous calls, that SAP really, as measured in gross merchandise values, SAP remains one of the most, if not the most important e-commerce platform across the world. They have about 3,500 customers, but they're basically all the large enterprises. You know, they occupy that particular segment. You know, and our endorsed relationship means that we're one of the few apps in the world where the SAP sales team gets full quota credit and full commission on the gross dollar, just like their own app. So it's quite a privileged relationship, obviously, and it took a lot of work to get there. But that's in that specific space.

Agent Force.

And agent exchange, which is kind of an extension of our appexchange and worldwide.

Early bond partners. There if you if you go on agent exchange Youll find prevail and we serve a specific set of functionality more on the knowledge side.

Speaker #2: They have about 300, 500, 3,500 customers, but they're the basically all the large enterprises, you know, they, occupy, that particular segment. you know, and, and our endorsed relationship, means that, we're one of the few apps in the world where SAP, the SAP sales team gets full quota credit, and, and full commission on the gross dollar, just like their own app.

And for agent AI.

And large scale complex knowledge content environment. So they are there different sometimes complementary but different different markets and different market motions for us just to clarify.

No that's great I appreciate that.

And just the last question.

So you are trying to push more of your professional service of our tier implementation partners.

Speaker #2: So it's, it's quite a privileged relationship, obviously. And it took a lot of work to get there. But that's, in, in that specific space, as you know, our partnership with Salesforce is, is now, Salesforce has launched, Agent Force, and, Agent Exchange, you know, which is kind of an extension of, of, App Exchange and we're one of the early, launch partners there.

Just given how you've got it seems like a pretty pretty healthy pipeline of opportunities some strong bookings.

Adhir Kadve: As you know, our partnership with Salesforce is now Salesforce has launched Agentforce and Agent Exchange, you know, which is kind of an extension of AppExchange, and we're one of the early launch partners there. If you go on Agent Exchange, you'll find Coveo, and we serve a specific set of functionality more on the knowledge side and for agentic AI in large-scale complex knowledge content environments. So they're different, sometimes complementary, but different markets and different market motions for us, just to clarify.

Do you feel comfortable with the bandwidth.

Our implementation partners in terms of being able to execute on that.

Yes. Good question, we're definitely building.

Continuing to build it and we're very happy with.

Some some global partnerships that.

Speaker #2: If you, if ou go on, on Agent Exchange, you'll, you'll find Qoveo. And we serve, you know, a specific set of functionality more on the knowledge side, and, and for agentic AI, in, in large, scale complex, you know, knowledge content environments.

That we have with large system integrators.

And in fact, if you look at our our service revenue, which is 4% of our overall revenue a lot of this the majority of this is working in partnership.

Speaker #2: So they're different—sometimes complementary, but different markets and different market motions for us. Just to clarify.

And with with ESI partners, and helping them grow obviously in the context of.

Speaker #8: No, that's great, Louis. I appreciate that. and just the last question, you know, you obviously are trying to push more of your, professional service work to your implementation partners.

Analyst (various, e.g., Thanos Musciopolis, David Kwan, Paul Treiber, Suthan Sukunar, Doug Taylor, Richard Day, Koji Aikita, George McGrean): No, that's great, Louis. I appreciate that. And just the last question, you know, you obviously are trying to push more of your professional service work to your implementation partners. Just given how you've got, it seems like a pretty healthy pipeline of opportunities and strong bookings, do you feel comfortable with the bandwidth of your implementation partners in terms of being able to execute on that?

Large scale deployments of <unk>. So we continue to expand that but so far and we've beefed up the team.

Debt deals we brought some new senior executives and have beefed up the team that deals with the with.

Speaker #8: just given how you've got, it ems like a pretty, pretty healthy, pipeline of opportunities and strong bookings. do you feel comfortable with the bandwidth, of your implementation partners in terms of being able to execute on that?

With the recruitment and the enablement and the ongoing collaboration with with larger size.

Both in EMEA.

And in North America.

Speaker #2: Yeah, good question. We're, we're definitely building it. continuing to build it. And we're, we're very happy with, you know, some, some global partnerships, that we have with, with, large, system integrators.

Adhir Kadve: Yeah, good question. We're definitely building it, continuing to build it, and we're very happy with some global partnerships that we have with large system integrators. And in fact, if you look at our service revenue, which is 4% of our overall revenue, a lot of this, the majority of this is working in partnership with the SI partners and helping them grow, obviously in the context of large-scale deployments of Coveo. So we continue to expand that. But so far, and we've beefed up the team that deals, we brought some new senior executives and have beefed up the team that deals with the recruitment and the enablement and the ongoing collaboration with large SIs, both in MAA, AP, and North America.

Perfect. Thanks.

Sure.

Your next question comes from the line of Paul Treiber from RBC Capital markets. Your line is now open. Please go ahead.

Speaker #2: and in fact, if you look our, our service revenue, which is, you know, 4% of our overall revenue, a lot of this, you know, the majority of this is working in partnership, and, and, you know, with, with the SI partners and helping them grow.

Thanks, very much and good afternoon.

Question on the net expansion.

At Youre generative AI customers greater than a 150 percentage really solid.

Can you speak to the breadth of what you've been seeing at customers. As it is it is that 150% typically is it is it kind of a typical or is it tend to be skewed to some customers that some customers are seeing it more so than others and also can you speak to the fundamental drivers of it is it is inquiry volume.

Speaker #2: obviously, in the context of, you know, large-scale deployments of, of Qoveo. So we continue to expand that. But, you know, so far and, and we've, we've beefed up the team, that deals we brought some new senior executives and, and have beefed the team that deals with, with the recruitment and the enablement and the ongoing collaboration with, with large SIs.

And was it expansion in scope is there something else that's driving that.

Hey, Paul this moral here shortly.

Speaker #2: Both in MAL, AP, and North America.

The short answer is all of the above so we're seeing we're seeing more consumption.

Speaker #8: Perfect. Thanks.

It works, it's measured toward courtesy through phase the flexion for example conversion in terms of in terms of service.

Analyst (various, e.g., Thanos Musciopolis, David Kwan, Paul Treiber, Suthan Sukunar, Doug Taylor, Richard Day, Koji Aikita, George McGrean): Perfect. Thanks.

Speaker #1: Your next question comes from the line of Paul Triber from RBC Capital Markets. Your line is now open. Please go head.

Operator: Your next question comes from the line of Paul Treiber from RBC Capital Markets. Your line is now open. Please go ahead.

And then well these customers will want to do more right. They will want to they will want to add more languages that will want to add more experiences more use cases.

Speaker #8: Thanks very much. And good afternoon. A question on the, the net expansion, rate at, h, your, your generative AI customers and your greater than 150% is really solid.

Analyst (various, e.g., Thanos Musciopolis, David Kwan, Paul Treiber, Suthan Sukunar, Doug Taylor, Richard Day, Koji Aikita, George McGrean): Thanks very much, and good afternoon. Question on the net expansion rate at your generative AI customers, you know, greater than 150% is really solid. Can you speak to the breadth of what you've been seeing at customers? Is that 150% typically fairly typical, or does it tend to be skewed to some customers or some customers seeing it more so than others? And then also, can you speak to the fundamental drivers of it? Is it query volume? Is it expansion in scope? Is there something else that's driving that?

And now what we're starting to see also is internal use cases that are moving to customer facing into.

Speaker #8: The, can you speak to the, the breadth of, of what you've been seeing at, at customers? Is it, is it, is that 150% typically, is it, is it fairly typical?

Really regulated industries. So we're quite excited about this and it's testament of the of currency and the precision of.

Speaker #8: Or is it, you know, tend to be skewed to, to somewhat customers or some customers seeing it more so than others? And can you also speak to the fundamental drivers of it?

And what we're doing here so so again it's.

Speaker #8: it, is it query volume? Is it expansion in scope? Is it, is it something else that's driving that?

It's growing from multiple dimensions.

Okay.

Great customer referenced and as more and more of them coming out.

Speaker #7: Hey, Paul. This is Laurent here. the short answer is all of the above. So we are seeing, we're seeing more consumption. it works. 's measured through accuracy, through case affliction, for example, through conversion.

Laurent Simoneau: Hey, Paul. This is Laurent here. The short answer is all of the above. So we are seeing more consumption. It works. It's measured through accuracy, through case deflection, for example, through conversion in terms of service. And then, well, these customers will want to do more, right? They will want to add more languages. They will want to add more experiences, more use cases. And now what we're starting to see also is internal use cases that are moving to customer-facing into highly regulated industries. So we're quite excited about this, and it's a testament of the accuracy and the precision of what we're doing here. So again, it's growing from multiple dimensions.

Can you speak to the how win rates have been tracking.

Specifically for Gen AI.

And then also you've been primarily competing against and has that changed over time.

Speaker #7: In terms of, in terms of service, and then well, these customers will want to do more, right? They will want to, they will want to add more languages.

Yeah. So so when rates about Jenny island to NII has been.

Speaker #7: They will want to add more, experiences, more use cases. and now what we're starting to see also is internal use cases that are moving to customer-facing into, highly regulated industries.

Of course, we don't report on win rates, specifically on <unk>, but what I can say from a process perspective is typically customers will do a proof of concept very quick proof of concept to validate if it works.

And we're.

Speaker #7: So, we're, we're quite excited about this. And it's testament of the accuracy, and the precision of, what we're doing here. So, so again, it's, it's growing from multiple dimensions.

We're quite ERP typically about the results and it held.

Helps accelerate the transaction.

Thanks, and then just.

Lastly.

Jenny I like to.

Speaker #8: And it sounds like even a great customer reference is more and more of them coming out over time. Can you speak to how win rates have been tracking, specifically for Gen AI, and then also, you know, who have you been primarily competing against?

Analyst (various, e.g., Thanos Musciopolis, David Kwan, Paul Treiber, Suthan Sukunar, Doug Taylor, Richard Day, Koji Aikita, George McGrean): Like you've made customer references more and more of them coming out over time. Can you speak to how win rates have been tracking specifically for GenAI? And then also, you know, who have you been primarily competing against, and has that changed over time?

The percent of bookings I think theres, a large jumped to 50% of bookings from 25% last quarter.

Why is this such a large increase in one quarter.

Is that just due to some some large deals or to see it sustained at this rate going forward.

Speaker #8: And has that changed over time?

Yes, I don't know if it will sustain at this rate, but I have to say if we go back to some of the comments that Lillian.

Speaker #7: Yeah. So, the win rates about Gen AI on Gen AI have been, we, of course, don't report on win rates specifically on Gen AI.

Laurent Simoneau: Yeah. So win rates about GenAI, on GenAI, have been, of course, we don't report on win rates specifically on GenAI, but what I can say from a process perspective is typically customers will do a proof of concept, a very quick proof of concept to validate if it works, and we're quite happy typically about the results, and it helps accelerate the transaction.

Put it in the prepared remarks, I think we've just got a market that's getting more and more comfortable.

Speaker #7: But what I can say from a process perspective is typically customers will do a proof of concept, a quick proof of concept to validate if it works.

Deploying Gen AI and of course, the more customer success stories, we put out there the more comfortable it is so we are we're seeing.

Whether our customers coming in the door for commerce.

Speaker #7: And, we're quite happy typically about the results. And it, it helps accelerate the transaction.

Coming in for service existing customers as they go through renewal processes.

Theres just a lot more.

Comfort from our ability to convey value and position it well.

Speaker #8: Thanks. And then just, just lastly, just on, Gen AI, like the, as a, as a percent of bookings, it looked like there's a large jump to 50% of bookings from 25% last quarter.

Analyst (various, e.g., Thanos Musciopolis, David Kwan, Paul Treiber, Suthan Sukunar, Doug Taylor, Richard Day, Koji Aikita, George McGrean): Thanks. And then just lastly, just on GenAI, like as a percent of bookings, it looks like there's a large jump to 50% of bookings from 25%.Last

Customer willingness to buy on the top.

Alright, thanks for taking the questions.

Your next question comes from the line of Susan <unk> from Stifel. Your line is now open. Please go ahead.

Operator: quarter. You know, why is there such a large increase in one quarter? is that just due to some some large deals, or do you just see it sustained at this rate going forward?

Speaker #8: You know, why is there such a large increase in one quarter? is that just due to some, some large deals? Or do ou just see it sustained at this rate going forward?

Good evening gents and congrats.

Congrats on an impressive quarter here.

Speaker #7: yeah, I, I don't know if it'll sustain at this rate. But I'd just say, you know, if you go back to some of the comments that, Louis and Laurent, put in the prepared remarks, I think we just got a market that's getting, more and more comfortable, deploying Gen AI.

Brandon Nussey: Yeah, I don't know if it'll sustain at this rate, but I'd just say, you know, if you go back to some of the comments that, Louis and Laurent put in the prepared remarks, I think we've just got a market that's getting more and more comfortable, deploying GenAI. And of course, the more customer success stories we put out there, the more comfortable it is. So we're we're seeing, you know, whether customers coming in the door for e-commerce, coming in for service, existing customers, as they go through renewal processes. there's just a lot more, comfort from our ability to convey value and position it well and, customer willingness to buy and adopt.

I wanted to double click on the agenda take AI opportunity and you guys are obviously seeing good validation here with the energy Partners' Salesforce Amazon are potentially of SAP.

Can you talk a little bit about the strategy here more broadly with respected gene AI.

Speaker #7: And of course, the more customer success stories we put out there, the more comfortable it is. So we're, we're seeing, you know, whether customers coming in the door for commerce, coming in for service, existing customers, as they go through renewal processes, there's just a lot more, comfort from our ability to convey value and position it well.

Just wondering are you guys targeting.

Jed take AI deal, specifically or is that really just a natural expansion of the customer journey with <unk> AI and what are the monetization implications when you move from <unk> to <unk> use cases.

Thank you that's a great question so.

The way the way, we see the market evolving is that there will be multiple multiple touch points multiple points of experienced per se within large customers, including agent tech, including a co pilot like experience.

Operator: All right. Thanks for taking the questions.

Conference Facilitator: Your next question comes from the line of Suthan Sukunar from Stifo. Your line is now open. Please go ahead.

Our job is to be behind those experiences to beat us pinal layer of relevance of Q1 connecting all of this information and content within the enterprise makes sense of that personalize it and make it available across those different point of experiences so eight what agent <unk>.

Adhir Kadve: Good evening, Jens, and congrats on an impressive quarter here. I wanted to double-click on the Agentic AI opportunity. I mean, you guys are obviously seeing good validation here with your partners, Salesforce, Amazon, and potentially SAP. Can you talk a little bit about the strategy here more broadly with respect to GenAI? Just wondering, are you guys targeting Agentic AI deals specifically, or is that really just a natural expansion of the customer journey with GenAI? And what are the monetization implications when you move from a GenAI to Agentic AI use cases?

<unk> brings is really diversification of experiences in new ways to go into that to get to that information.

We believe that we are the best in our customers believe we're the best at leveraging that information within the agent deck.

Framework and from that the agent workflow will have the ability to take better decisions take more accurate actions and so on because they have access to all of this information powered by covalent relevance standpoint, and there's consistency across those touch points of experiences which is critically important for our customer.

Brandon Nussey: Thank you. That's a great question. So the way we see the market evolving is that there will be multiple touchpoints, multiple points of experience per se within large customers, including Agentic, including a copilot-like experience. Our job is to be behind those experiences, to be the final layer of relevance, if you want, connecting all of this information and content within the enterprise, make sense of it, personalize it, and make it available across those different points of experiences. So what Agentic brings is really diversification of experiences, a new way to go into that, to get to that information. We believe that we are the best, and our customers believe we're the best at leveraging that information within the Agentic framework.

<unk>.

Hey, Sudan I'd like to add this is Louis I would like to add that if you think think of it. This way. If you think about agent take AI whats really happening here is you've got a digital worker at the other end as opposed to human really at a high level.

Executing on on tasks and typically driven by workflows and that's why we call those agent take orcas traders, we believe that <unk> that agents will proliferate that every app will have agents. If you think today about agent force is a good example, if you think about service now as you think about <unk>.

SAP Xul, if you think about what Adobe is doing but also many apps so agents will proliferate, but they do need an infrastructure underneath the ground. These agents into data and relevance whether again, it's a human and asking a question to the <unk> infrastructure or an agent.

Brandon Nussey: And from that, the Agentic workflow will have the ability to take better decisions, take more accurate actions, and so on because they have access to all of this information powered by Coveo from a relevance standpoint. And there's consistency across those touchpoints of experiences, which is critically important for customers.

And using the result of that question to feed. The next question and then during the agent Nick orchestration process. This is what we're here for and so the early results in all four of Coville working for instance to help enhance agent force at Salesforce are quite successful and we already have customers.

Louis Tetu: Hey, Suthan. I'd like to add, this is Louis. I'd like to add that if you think of it this way, if you think about Agentic AI, what's really happening here is you've got a digital worker at the other end as opposed to a human, you know, really at a high level, executing on tasks and typically driven by workflows. And that's why we call those Agentic orchestrators. We believe at Coveo that agents will proliferate, that every app will have agents. If you think today about Agentforce, it's a good example. If you think about ServiceNow, if you think about SAP Joule, if you think about what Adobe is doing, and but also many apps. So agents will proliferate, but they do need an infrastructure underneath to ground these agents into data and relevance.

Starting to adopt that and so I hope this clarifies.

Really the way to think about it.

Thank you that's helpful.

I also wanted to touch on obviously the go to market traction we've seen now a number of quarters. It just consistent performance and it feels like it's a combination of both the strong and increasingly stronger demand backdrop, but also improving sales execution.

So given you.

The recent.

Zero hire can you talk a little bit about.

And what's been working on the go to market front for you guys, what what's left to optimize further and what do you see opportunity to invest in further.

Louis Tetu: Whether, again, it's a human asking a question to the Coveo infrastructure or an agent and using the result of that question to feed the next question and, you know, during the Agentic orchestration process, this is what we're here for. And so the early results, you know, for Coveo working, for instance, to help enhance Agentforce at Salesforce are quite successful. And we already have customers, you know, starting to adopt that. And so I hope this clarifies, you know, really the way to think about it.

Yes, great Great question.

Think of it as a combination of the two events in the compounded effect of two things.

As we've said.

If you go back to <unk>.

Prior earnings calls and et cetera, we strongly believe and we've seen that since the launch of chat GPT AI and there's been a lot of talk about AI and et cetera, but there was a lot of confusion also AI was a bit of a technology as we said in search of problems and and the market has been experimenting and we've seen a lot.

Adhir Kadve: Thank you. That's helpful. I also want to touch on, you know, obviously the go-to-market traction. You know, we've seen now a number of quarters of just consistent performance. And it feels like it's a combination of both a strong and increasingly stronger demand backdrop, but also improving sales execution. So given the recent CRO hire, can you talk a little bit about what's been working on the go-to-market front for you guys? What's left to optimize further? And where do you see opportunity to invest in further?

Maturity gain in terms of the understanding of customers and with that greater demand greater understanding for instance of the importance of search and relevant technology to ground.

Generative AI as an example, and so so thats the first dimension, which is the <unk>.

Clear evidence of stronger demand and a recognition of the importance of the kind of infrastructure and tech that <unk> provides.

Louis Tetu: Yeah, great question. Look, think of it as a combination of the two events and the compounded effect of two things. You know, as we've said, if you go back to, you know, prior earnings calls and et cetera, we strongly believe and we've seen that, you know, since the launch of ChatGPT AI, there's been a lot of talk about AI and et cetera, but there was a lot of confusion also. AI was a bit of a technology, as we said, in search of problems. And the market has been experimenting, and we've seen a lot of maturity gain in terms of the understanding of customers. And with that, you know, greater demand, greater understanding, for instance, of the importance of search and relevance technology to ground, you know, generative AI as an example.

That architecture.

We couple that obviously with greater execution, so with demand comes the need to grow the sales team and so on and <unk> has been very very focused since the IPO and continuing to improve our execution and really position ourselves for scale and this is what we've been doing and we're I.

We'll say, we're very proud Jonathan that John <unk>, our COO is really driving the railroad very very well with the team and.

We continue to hire great people and grow the team and improve the efficiency and were very very were very very satisfying.

With our unit economics in our performance metrics improvement for sure.

Louis Tetu: And so that's the first dimension, which is the clear evidence of stronger demand and a recognition of the importance of the kind of infrastructure and tech that Coveo provides, you know, in that architecture. We couple that, obviously, with greater execution. So with demand comes the need to, you know, grow the sales team and so on. And, you know, Coveo has been very, very focused since the IPO on continuing to improve our execution and really position ourselves for scale. And this is what we've been doing. And I will say we're very proud. John, our COO, is really driving the railroad very, very well with the team. And, you know, we continue to hire great people and grow the team and improve the efficiency. And we're very, very, we're very, very satisfied, you know, with our unit economics and our performance metrics improvement for sure.

Okay.

Good color. Thank you.

And then just.

Last one for me for Brendan.

Given this.

Improving validation from a product market fit perspective.

Do you see opportunity here for for more pricing optimization.

We've been generally making headway I'd say growing our HCV per customer.

Our strategy or one of our biggest opportunities has been getting to our accounts and then expand them over time.

Average ACB per customer now I think is just over $200000.

And thats up nicely from at least a couple of years ago.

So in terms of in terms of how we think about pricing we're constantly looking at the value we derive for our customers and thinking about how we can.

To drive greater.

Greater pricing power that comes from that.

Adhir Kadve: That's a good call there. Thank you. And just the one last one from me for Brandon. You know, just given this, you know, improving validation from a product-market fit perspective, do you see opportunity here for more pricing optimization?

But we're making headway there we'll keep at it.

Good opportunity ahead, though.

Perfect. Thank you for taking my questions guys.

Absolutely.

Thanks for that.

Your next question comes from the line of Doug Taylor from Canaccord Genuity. Your line is now open. Please go ahead.

Brandon Nussey: We've been generally making headway, I would say, growing our ACV per customer. You know, our strategy, or one of our biggest opportunities, has been, you know, get into our accounts and then expand them over time. Average ACV per customer now, I think, is just over $200,000. And that's up nicely from at least a couple of years ago. So in terms of how we think about pricing, you know, we're constantly looking at the value we derive for our customers and thinking about how we can, you know, just drive greater pricing power that comes from that. But we're making headway there, and we'll keep at it. Good opportunity ahead, though.

Yes. Thank you good evening.

Fantastic to hear about the expansion of the SAP.

Our relationship as a customer do you see this expansion as you being now.

Fully deployed within the SAP properties or perhaps can you give us a sense of how much bigger they can be.

The customer and then I'll ask in a little bit more about the partnership and the channel partnership after that.

Alright.

Thank you for the question Doug So.

It's really just the beginning in our opinion since the agent Chris of all the agency market is evolving very rapidly obviously.

<unk> is a player there with jewel.

Adhir Kadve: Perfect. Thank you for taking my questions, guys.

So we're seeing a lot of.

A lot of potential here now when some of that.

Louis Tetu: Thanks, Suthan.

We're going to we're going to make sure that the S&P at a customer.

Conference Facilitator: Your next question comes from the line of Doug Taylor from Connecticut Genuity. Your line is now open. Please go ahead.

Is is deploy this successful at the level, we believe it can be but in parallel.

Adhir Kadve: Yeah, thank you. Good evening. Yeah, fantastic to hear about the expansion of the SAP relationship as a customer. Do you see this expansion as you being now fully deployed within the SAP properties, or perhaps, you know, can you give us a sense of how much bigger they can be, you know, as a customer? And then, you know, I'll ask a little bit more about the partnership and the channel partnership after that.

We're going to have you can expect us to have the conversation on how to leverage this to a larger market.

So you touched on something there that I wanted to follow up on.

You're selling the S&P as a customer you got them as a partner I guess I'd just like to understand how closely tie those two.

Initiatives are it would seem like they'd be on different sides of that organization, maybe I'm wrong. So could you clarify that or talk about where in the organization are off how high the Kobe a relationship since that you can have an impact on these two sides.

Brandon Nussey: Right. Thank you for the question, Doug. So it's really just the beginning, in our opinion, since the agent, first of all, the agentic market is evolving very rapidly. Obviously, SAP is a player there with Joule. So we're seeing a lot of potential here. Now, one step at a time, we're going to make sure that SAP, the customer, is deployed and is successful at the level we believe it can be. But in parallel, we're going to have, you can expect us to have the conversation on how to leverage this to a larger market.

Yes so.

<unk> is one important component.

The S&P customer experience.

Main property.

So obviously, we have visibility and we have.

We have I would say high level of collaboration with.

The folks with the executives that are in charge of customer experience at Seb.

In parallel we.

We're having conversations also with with the groups that are related to that are related to go to market around <unk> and we.

Adhir Kadve: And so you touched on something there that I wanted to follow up on. You know, you're selling to SAP as a customer. You've got them as a partner. I guess I'd just like to understand how closely tied those two, you know, initiatives are. It would seem like they'd be on different sides of that organization. Maybe I'm wrong. So could you clarify that or talk about, you know, where in the SAP organization or how high the Coveo relationship sits that you can have an impact on these two sides?

Again as I said, we hope that what we're doing today with with FCB the customer will be.

It will help us accelerate the relationship with these folks on the on the go to market side.

Okay I appreciate the color one more question for for.

Brandon Nussey: Yeah. So Coveo is one important component of the SAP customer experience main property. So obviously, we have visibility, and we have, I would say, a high-level collaboration with the folks and with the executives that are in charge of customer experience at SAP. In parallel, we are having conversations also with the groups that are related to go-to-market around SAP CX. And we, again, as I said, we hope that what we're doing today with SAP to customer will help us accelerate the relationship with these folks on the go-to-market side.

Brandon Q2 guidance here suggests I think by my math and uptick.

13% to 15% overall SaaS growth and that includes Cuba. So if we take out Q3.

Three or 4% higher I think we are lapping similar amounts it would seem to suggest 16% to 19% core SaaS growth next quarter to hit your guidance I guess my first question is am I missing anything there.

Alright, sorry, Doug.

Meet the runway there.

<unk>.

Okay.

Your logic is correct.

I think some of your math.

On the high end is a little high.

If you take the high end of the guidance.

Whom.

<unk> continues to.

<unk>.

Smaller quarter to quarter.

There will still be some <unk> revenue in Q2.

Adhir Kadve: Okay. I appreciate the color. One more question for Brandon. Q2 guidance here suggests, I think by my math, an uptick to 13% to 15% overall SaaS growth, and that includes QBit. So if we take out QBit, 3% or 4% higher, I think we're lapping similar amounts. It would seem to suggest 16% and 19% core SaaS growth next quarter to hit your guidance. I guess my first question is, am I missing anything there?

It's not going to zero in other words, but your logic is otherwise correct.

Okay, and then Directionally correct as well, so I guess I'd like to finish by saying you previously talked about the prospect of getting to sort of a 20% overall growth rate on this metric by the end of the year on a normalized basis.

That seems to be coming into view, perhaps a little quicker or is that a fair statement or maybe I'll get you to speak to the confidence in getting to those types of numbers with another quarter of bookings under your belt.

Brandon Nussey: Sorry. Sorry, Doug. I hit mute the wrong way there. Your logic is correct. I think some of your math on the high end is a little high. If you take the high end of the guidance and assume QBit continues to get smaller quarter to quarter, there will still be some QBit revenue in Q2. It's not going to zero, in other words. But your logic is otherwise correct.

Yeah, So look as I said on the call.

We think we're off to a great start for the year.

Getting back to 20% growth rates is certainly a.

The key objective of ours, and we continue to feel confident.

And how our ability to get there.

Look it's the first quarter.

<unk> of the year lots of execution still ahead.

But we're feeling good about the path that we're on.

Thanks ill pass the line.

Adhir Kadve: Okay. And then directionally correct as well. So I guess, you know, I'd like to finish by saying you previously talked about the prospect of getting to sort of a 20% overall growth rate on this metric by the end of the year on a normalized basis. You know, that seems to be coming into view perhaps a little quicker. Is that a fair statement, or maybe I'll get you to speak to, you know, the confidence in getting to those types of numbers with another quarter of bookings under your belt?

Okay.

Your next question comes from the line of Richard Davis from National Bank Financial Your line is now open. Please go ahead.

Hi, Yes. Good afternoon. This is Mike Stevens on for rich.

Congrats on another strong quarter, just more high level broadly just given the rate of advancements that we've seen in AI and our models seemingly monthly.

Brandon Nussey: Yeah. So look, as I said on the call, we think we're off to a great start for the year. You know, getting back to 20% plus growth rates is certainly a key objective of ours, and we continue to feel confident in how our ability to get there. You know, look, it's the first quarter of the year. Lots of execution still ahead. But we're feeling good about the path that we're on.

I'm just wondering on your side is that been felt is there any impact on that.

Our customers kind of seeing an evolution in their tool.

Quarter to quarter type of thing or maybe just any insight on that.

Okay.

Thank you for thank you for the question. So what we're seeing is.

A.

<unk> specialization of those models.

Some of them are better in answering short queries orders are better at.

Adhir Kadve: Thanks. I'll pass the line.

Being a quick and and.

Conference Facilitator: Your next question comes from the line of Richard Day from National Bank Financial. Your line is now open. Please go ahead.

And cheap to a certain extent orders are very good at research like.

Answers so what we so what we're starting to see us have a more flexible infrastructure to select really the right model for the right purpose right task and.

Brandon Nussey: Hi. Yeah, good afternoon. This is Mike Stevens on for Rich. Congrats on another strong quarter. Just more high level, broadly, just given the rate of advancements that we've seen in AI and LLM models seemingly monthly, I'm just wondering on your side, has that been felt? Is there any impact on that? Are customers kind of seeing an evolution in their tools, you know, quarter to quarter type of thing, or maybe just any insights on that?

And having the interoperability capabilities for customers also to use their own models, if they need to depending on again on the use case and circumstances, so and so it is evolving quite rapidly.

When the way we have designed our the way we're designing our platform is really to take to benefit from all of these changes.

Brandon Nussey: Yeah. Thank you for the question. So what we're seeing is a specialization of those models. Some of them are better at answering short queries. Others are better at being quick and cheap to a certain extent. Others are very good at research-like answers. So what we're starting to see is have a more flexible infrastructure to select really the right model for the right purpose and the right task and having the interoperability capabilities for customers also to use their own models if they need to, depending on, again, on the use case and the circumstances. So it's evolving quite rapidly when the way we've designed our platform is really to take to benefit from all of these changes.

Okay, Great that's helpful.

And in terms of your use cases commerce has clearly been a leader in.

In these early days I'm, just wondering your thoughts on into the future.

Do you think that that's something a function of your go to market strategy and sales partners or is that.

A general market dynamics kind of function, where you think commerce mi.

<unk>, maybe maybe highest to some of those players.

So so we're winning in e-commerce, and we're successful in commerce for two big reasons right.

The first one is we have proven our ability to drive.

Revenue per visit lift conversion and now profitability with AI.

And our customers have been quite successful with this so so that's the first point the second the second aspect of it is also our customers and our prospects are trusting us they believe with our gen turnaround of AI capabilities to provide to help provide a devices advice does not.

Brandon Nussey: Okay, great. That's helpful. And in terms of your use cases, you know, commerce has clearly been a leader in these early days. I'm just wondering your thoughts on, you know, into the future. If you think that that's something a function of your go-to-market strategy and sales partners, or is that, you know, a general market dynamics kind of function where you think commerce may, the value prop may be highest to some of those players?

Finding product, but how to build this how to address that is extremely important in <unk> e-commerce.

So not only they are believing that that capability in polymers.

We're seeing some some convergence that is happening and that will grow between b to B E Commerce.

Brandon Nussey: So we're winning in commerce, and we're successful in commerce for two big reasons, right? The first one is we've proven our ability to drive revenue per visit lift, conversion, and now profitability with AI. And our customers have been quite successful with this. So that's the first point. The second aspect of it is also our customers and our prospects are trusting us. They believe with our generative AI capabilities to help provide advice, not just finding product, but how to build this, how to address that. It's extremely important in B2B commerce. So not only they are believing in that capability in commerce, and we're seeing some convergence that is happening and that will grow between B2B commerce and knowledge or in customer service also. So that's another driver, if you want, for the future.

And knowledge or in customer service also so that's another driver if you want for the future.

Okay, I appreciate that and just to sneak in a last one.

<unk> go to market partner.

Size you have some major non MSI player.

It's how you see that mix evolving or how you would like to see that mix evolving.

In the future.

Bookings.

Well the bookings are all direct right I mean that size or the family doctors and referral partners for <unk> when they do a lot of the work.

They get certified and they do a lot a lot of the work they insert aveo as as kind of the.

Core <unk> core platform within within the architecture.

What these <unk> are doing is really bring into their customers.

Hi transformation within digital experiences.

The transformation what the market is realizing is that.

Brandon Nussey: Okay, I appreciate that. And just to speak on the last one, as your go-to-market partners, you have SIs, you have some major non-SI players. I'm just, is how you see that mix evolving or how you would like to see that mix evolving in the future, as your bookings?

Bringing AI to points of experience is becoming an imperative and it's a major major transformation agenda and an <unk> becomes the platform to do that so then just to clarify there not resellers.

We work together with them and then we bring them.

Revenue.

<unk>.

Louis Tetu: Well, the bookings are all direct, right? I mean, SIs are the family doctors and referral partners for Coveo, and they do a lot of the work. You know, they get certified, and they do a lot of the work. They insert Coveo as kind of the, you know, core platform within the architecture. What these SIs are doing is really, you know, bringing to their customers the AI transformation within digital experiences. You know, the transformation, what the market is realizing is that bringing AI to points of experience is becoming an imperative, and it's a major, major, you know, transformation agenda. And Coveo becomes the platform to do that. So just to clarify, they're not resellers. We work together with them, and then we bring them, you know, revenue with that.

With that.

Okay. So just on the mix you see kind of going forward in the future as far as the to non Si partners, bringing in.

Revenue for you guys versus you.

Directly without them.

And that we can kind of glean.

In the future.

Yes, well continue on that model because it is working really really well.

I think I think worthy ongoing.

We say and I think our customers.

I would agree in that <unk>.

We're obviously a software as a service provider, but thanks.

Think about as I think of us with our Si partners out of data science as a service and really ongoing innovation as a service because our platform is multi tenant.

Evergreen, we released 500 changes and innovations every month and it's rolled out in near real time to all of our customers simultaneously. So this is an ongoing thing and our role in this is really to provide part of the knowledge that some of the knowledge the data science and the.

Brandon Nussey: Okay. So just in the mix you see kind of going forward in the future as far as the non-SI partners bringing in revenue for you guys versus, you know, you go directly without them, anything that we can kind of glean, you know, in the future?

The technology, obviously in the innovation and then the size is to provide the transformation the deployment of the implementation.

And continue to roll that out and expand and in that model for us is working extremely well and the major ESI as we deal with as you know our companies buy.

Louis Tetu: Yeah, we'll continue on that model because it's working really, really well. You know, I think we're the ongoing, you know, we say, and I think our customers would agree, and you know that Coveo is, you know, we're obviously a software as a service provider, but think of us with our SI partners as data science as a service and really ongoing innovation as a service because our platform is multi-tenant. It's evergreen. You know, we release 1,500 changes and innovations every month, and it's rolled out, you know, in near real time to all of our customers simultaneously. So this is an ongoing thing. And, you know, our role in this is really to provide, you know, part of the knowledge, some of the knowledge, the data science, and the technology, obviously, and the innovation.

Deloitte and Accenture and many others and focus that psi is like like proficient or <unk> or <unk> or others and.

And we're certainly pleased with those relationships, we're continuing to build them, we have we're enabling more people and.

And continuing that in.

Again, the demand for what we do and above that for the transformation of digital experiences with AI is really really inflect thing.

Okay I appreciate the end clients is all true.

Yes.

Thank you for the questions.

Your next question comes from the line of Koji Ikea from Bank of America. Your line is now open. Please go ahead.

Louis Tetu: And then the SI is to provide the transformation, the deployment, the implementation, and continue to roll that out and expand. And that model for us is working extremely well. And the major SIs we deal with, as you know, are companies like, you know, Deloitte and Accenture and many others, and, you know, focused SIs like Proficient or Slalom or Valtec or others. And you're certainly pleased with those relationships. We're continuing to build them. We're enabling, you know, more people and continuing that. And, you know, again, the demand for what we do and, you know, above that for the transformation of digital experiences with AI is really, really inflecting.

Hi, guys. This is George <unk> on for Cogent, Akita and thanks for taking our question.

I wanted to ask just in light of.

The.

Kind of success you guys have seen in terms of.

Commerce customers.

The partnership motion there that's driving results.

As well as the 20%.

Acceleration.

Goal.

Where you guys are also seeing great great success and progress towards towards reaching it.

You know I guess.

To what extent did.

Does that goal incorporate commerce acceleration and then maybe kind of just with with the success you've seen it partnerships and the momentum there.

Brandon Nussey: Okay. Appreciate the insights as always. Cheers.

Louis Tetu: Yep.

Brandon Nussey: Thank you for the questions.

Kind of the potential for outperformance and maybe acceleration past 20%.

Conference Facilitator: Your next question comes from the line of Koji Aikita from Bank of America. Your line is now open. Please go ahead.

Going into the future. Thank you.

Yeah look George Thanks for the question.

Adhir Kadve: Hi, guys. This is George McGrean on for Koji Aikita. Thanks for taking our question. You know, I wanted to ask just in light of the kind of success you guys have seen in terms of commerce customers and the partnership motion there that's driving results, as well as the 20% acceleration goal where you guys are also seeing great success and progress towards reaching it. You know, I guess to what extent does that goal incorporate commerce acceleration? And then maybe kind of just with the success you've seen in partnerships and the momentum there, what's kind of the potential for outperformance and maybe acceleration past 20% going into the future? Thank you.

I think I.

Hope and I think by now.

The market and you guys understand that work.

Not conservative, but realistic and in guidance and have had a history of meeting goals and targets. So it's really one step at a time here. This is the first quarter. This is obviously the third quarter in a row, where we reported.

Last summer.

The that we were seeing the inflection in demand and.

The AI engine AI market, gaining much more understanding and clarity on the part of buyers and we're seeing that we're showing that.

So again, one step at a time, we were pretty happy with reduced resuming.

<unk>.

Growth growth rate that starts with it too.

<unk> guided in and around the 30 on a rule of 30 basis. So the unit economics are very healthy and et cetera.

Louis Tetu: Yeah. Look, George, thanks for the question. You know, I think, I hope, and I think by now, you know, the market and you guys understand that we're, you know, not conservative, but realistic in guidance and have had a history of meeting goals and targets. So it's really one step at a time here. This is the first quarter. This is obviously the third quarter in a row where we reported, you know, last summer, you know, that we were seeing the inflection in demand and, you know, the AI and GenAI market gaining much more understanding and clarity on the part of buyers. And we're seeing that. We're showing that. So again, one step at a time. We were pretty happy with resuming, you know, growth rate that starts with a 2.

I want to come back on the first part of your question, which is about commerce <unk> is really about bringing AI digital experiences and that is in knowledge content as well as in commerce or as Luann mentioned and Bob when you think about it.

<unk> e-commerce in particular, Theres, a lot of room for sort of experiences in the convergence of service and commerce, because typically in <unk> e-commerce. It starts with a problem.

<unk>.

Description right to find the right part or component or whatever.

To fix the fixed and issue and so its really across the board I think I think we're seeing a lot of traction as we said in Congress because our algorithms.

Do deliver.

Very tangible results I think what's going on in knowledge is quite interesting is that initially when <unk> came out of the market said serves as debt and now has a full reversal of events. It's almost turned on its head where people will say well you know what in order to make these large language models work you need to ground them and search and relevance and in enterprise.

Um, you know, the, the that we were seeing the inflection in demand and, and, you know, the, the, the, the AI and gen AI Market, gaining much more understanding and Clarity on the part of buyers. And, and we're seeing that we're showing that. Um, so again, 1 step at a time, uh, we were pretty happy with resuming, um, you know? Um, um,

Louis Tetu: We've guided, you know, in and around the 30 on a rule of 30, you know, basis. So it's the unit economics are very healthy and et cetera. I want to come back on the first part of your question, which is about commerce. Coveo is really about bringing AI to digital experiences, and that is in knowledge content as well as in commerce, or as Laurent mentioned, in both. You know, when you think about B2B commerce in particular, you know, there's a lot of room for generative experiences and the convergence of service and commerce because typically in B2B commerce, you know, it starts with a problem, you know, description, right, to find the right part or component or whatever to fix an issue. And so it's really across the board.

Data and so we're seeing.

Good solid growth in that area and a lot of interest around what we do because guess what unless you have.

<unk> powerful indexing, <unk>, symantec and relevant stability that we have.

You just can't make agent take work at apt at the scale and precision that enterprises require so the net net of this is that we're seeing growth across the board.

But about acceleration of growth and again, it's one step at a time.

Louis Tetu: I think we're seeing a lot of traction, as we said, in commerce because our algorithms, you know, do deliver, you know, very tangible results. I think what's going on in knowledge is quite interesting is that, you know, initially when GenAI came out, the market said search is dead. And now it's a full reversal of events. You know, it's almost turned on its head where people say, well, you know what? In order to make these large language models work, you need to ground them in search and relevance and in enterprise data. And so we're seeing, you know, good solid growth in that area and a lot of interest around what we do because guess what?

Youll hear from us guidance that were comfortable with.

And.

You know, growth growth rate that starts with a 2. Uh, we've got it, you know, in and around the the the 30 on a rule of 30, you know, basis. So it's it's the unit economics are very healthy and Etc. I want to, I want to come back on on the first part of your question, which is about Commerce Co, is really about bringing AI to digital experiences and that is in knowledge content as well as in Commerce, or as Laura mentioned in both, you know, when you think about B2B Commerce, in particular, you know, there's a lot of room for generative experiences and the convergence of service and commerce. Because typically in B2B Commerce, you know, it starts with a problem, um, you know, uh, description right to to find the right part or or component or or whatever, um, to, to fix it to fix an issue. And so it's it's really a cross the board. I think I think we're seeing a lot of traction as we said in Commerce because our algorithms, you know, you know due to

I don't think Theres any reason right now to get ahead of that.

<unk>.

It's.

We are building strong foundations.

Not just for the next three quarters obviously.

I hope that helps.

Yeah very clear thank you.

There are no further questions at this time, please continue Mr. <unk> from mono.

Louis Tetu: You know, unless you have, you know, the powerful indexing, vectorization, semantic, and relevance ability that we have, you just can't make agentic work at the scale and precision that enterprises require. So the net net of this is that we're seeing growth across the board. And, but about acceleration of growth, you know, again, it's one step at a time. you know, you'll hear from us guidance that, you know, we're we're comfortable with. and, and, I don't think there's any reason right now to get ahead of that. you know, it's, it's, it's, we're building strong foundations, not just for the next three quarters, obviously. Hope that helps.

Alright, so I want to thank you all for joining us today and for your continued support and interest in our company.

We appreciate your time and we look forward to reconnecting with you in three months for our next earnings call. Thank you.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.

A growth. And, you know, again, it's 1 step at a time. Um, you know, you'll hear from us guidance. That, you know, we're we're comfortable with, um, and uh, and uh, I don't think there's any reason right now to get ahead of that. Um, you know, it's it's, it's, um, we're building strong foundations. Um, not just for the next 3 quarters, obviously,

Adhir Kadve: Yep. Very clear. Thank you.

Hope that helps.

Yep, very clear. Thank you.

Conference Facilitator: There are no further questions at this time. Please continue, Mr. Laurent Simoneau.

There are no further questions at this time. Please continue, Mr. Laurent Semao.

Brandon Nussey: All right. So I want to thank you all for joining us today and for your continued support and interest in our company. We appreciate your time, and we look forward to reconnecting with you in three months for our next urgent call. Thank you.

All right, so I want to thank you all for joining us today and for your continued support and interest in our company. We appreciate your time, and we look forward to reconnecting with you in 3 months for our next earnings call. Thank you.

Conference Facilitator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.