Coveo Solutions Q3 2026 Coveo Solutions Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q3 2026 Coveo Solutions Inc Earnings Call
At this time online sir. And 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, January, 29th, 2026, and I would now like to turn the conference over to Mr. Add here. Cadway head of investor relations. Please go ahead.
Good afternoon, everyone and thank you for joining us.
With me to discuss seos, fiscal third, quarter 2026, results are co-founder and chief executive officer Lou tit.
Avails executive chairman Brandon Nasi Coo's Chief Financial Officer and Kevin. Ml seos incoming, internal Chief Financial Officer.
Operator: Good afternoon, ladies and gentlemen, and welcome to the Coveo Solutions third 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, 29 January 2026. I would now like to turn the conference over to Mr. Adhir Kadve, Head of Investor Relations. Please go ahead.
Operator: Good afternoon, ladies and gentlemen, and welcome to the Coveo Solutions third 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, 29 January 2026. I would now like to turn the conference over to Mr. Adhir Kadve, Head of Investor Relations. Please go ahead.
A reminder that some remarks made today will be forward-looking statements within the meeting of applicable. Securities laws, including those regarding our plans, objective expected performance, and our outlook for the fourth fiscal quarter and full year, fiscal 2026,
These are forward-looking statements given out of the January 29th, 2026. 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.
Co disclaims any intent or obligation to update our forward-looking statements whether as a result of new information, future events or otherwise.
Adhir Kadve: Good afternoon, everyone, and thank you for joining us. With me to discuss Coveo's fiscal third quarter 2026 results are Laurent Simoneau, Coveo's Co-founder and Chief Executive Officer, Louis Têtu, Coveo's Executive Chairman, Brandon Nussey, Coveo's Chief Financial Officer, and Karine Hamel, Coveo's Incoming Interim 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 fourth fiscal quarter and full year fiscal 2026. These are forward-looking statements given out of 29 January 2026, 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.
Adhir Kadve: Good afternoon, everyone, and thank you for joining us. With me to discuss Coveo's fiscal third quarter 2026 results are Laurent Simoneau, Coveo's Co-founder and Chief Executive Officer, Louis Têtu, Coveo's Executive Chairman, Brandon Nussey, Coveo's Chief Financial Officer, and Karine Hamel, Coveo's Incoming Interim 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 fourth fiscal quarter and full year fiscal 2026. These are forward-looking statements given out of 29 January 2026, 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.
Further information on factors that could affect the company's Financial results is included. In filing. 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 mdna,
Both of which are available on our CR Plus profile at Crescent plus.ca. And on irco.com
Additionally, some of the financial 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 versus non-irs results are available in our press release and our mdna issued today.
Adhir Kadve: 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 company's financial results is included in 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 SEDAR+ profile at sedarplus.ca and on ir.coveo.com. Additionally, some of the financial 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 versus non-IFRS results are available in our press release and our MD&A issued today.
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 company's financial results is included in 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 SEDAR+ profile at sedarplus.ca and on ir.coveo.com. Additionally, some of the financial 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 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.
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 Louie for an overview of our third quarter.
Followed by LA taking us through a strategic update.
And we will end off with Kevin taking us through the financial details and providing our outlook for the fourth quarter and fiscal 2026. We will then open the line to your questions with that over to you Louie.
Thank you, dear, and thanks everyone for joining us today.
We have excellent news to discuss.
Both of which are available on our CR Plus profile at Crescent plus.ca. And on irs.gov.com
In the third quarter, we broke new records in both subscription. Bookings and net bookings. This is the strongest new bookings performance in the company's history.
Some of the financial 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 versus non-IFRS results are available in our press release and our MD&A issued today.
Adhir Kadve: 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. I will now turn the call over to Louis for an overview of our Q3, followed by Laurent, taking us through a strategic update, and we will end off with Karine, taking us through the financial details and providing our outlook for the Q4 and fiscal 2026. We will then open the line to your questions. With that, over to you, Louis.
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. I will now turn the call over to Louis for an overview of our Q3, followed by Laurent, taking us through a strategic update, and we will end off with Karine, taking us through the financial details and providing our outlook for the Q4 and fiscal 2026. We will then open the line to your questions. With that, over to you, Louis.
Total revenue and fast Revenue, both came in above guidance. And as a result, we are reaffirming guidance for fiscal 26, and are now expecting SAS subscription revenue and total revenue at the top end of the previously guided range.
Customer momentum remains very strong during the quarter with a healthy balance between new customer wins and expansion within our existing base.
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.
I will now turn the call over to Louis for an overview of our third quarter, followed by LA taking us through a strategic update.
we signed major new contracts with leading Brands such as GE Liberty, Mutual total tools and insight to name a few
Notably we secured the largest new customer win in Coos history, a 7-figure deal with a Fortune 500 Global leader in the industrial sector.
And we will end off with Kevin taking us through the financial details and providing our outlook for the fourth quarter and fiscal 2026. We will then open the line to your questions with that over to you Louie.
Louis Têtu: Thank you, Adhir, and thanks everyone for joining us today. We have excellent news to discuss. In Q3, we broke new records in both subscription bookings and net bookings. This is the strongest new bookings performance in the company's history. Total revenue and SaaS revenue both came in above guidance, and as a result, we are reaffirming guidance for fiscal 2026 and are now expecting SaaS subscription revenue and total revenue at the top end of the previously guided range. Customer momentum remained very strong during the quarter, with a healthy balance between new customer wins and expansion within our existing base. We signed major new contracts with leading brands such as GE, Liberty Mutual, Total Tools, and Insight, to name a few. Notably, we secured the largest new customer win in Coveo's history, a seven-figure deal with a Fortune 500 global leader in the industrial sector.
Thank you, Adhir, and thanks everyone for joining us today. We have excellent news to discuss. In Q3, we broke new records in both subscription bookings and net bookings. This is the strongest new bookings performance in the company's history. Total revenue and SaaS revenue both came in above guidance, and as a result, we are reaffirming guidance for fiscal 2026 and are now expecting SaaS subscription revenue and total revenue at the top end of the previously guided range. Customer momentum remained very strong during the quarter, with a healthy balance between new customer wins and expansion within our existing base. We signed major new contracts with leading brands such as GE, Liberty Mutual, Total Tools, and Insight, to name a few. Notably, we secured the largest new customer win in Coveo's history, a seven-figure deal with a Fortune 500 global leader in the industrial sector.
Thank you, Adhir, and thanks everyone for joining us today.
We have excellent news to discuss.
We also expanded more than 80 subscriptions and deployments with existing customers, including Deo. United Airlines Ticket, Master Cardinal Health Andersen, Windows, Thompson, Reuters USAA, Vanguard and workday, all of whom increased adoption of our AI platform.
In the third quarter, we broke new records in both subscription. Bookings and net bookings. This is the strongest new bookings performance in the company's history.
Our Commerce offering continued to deliver exceptional growth retailers. Distributors. And manufacturers increasingly recognize the imperative for AI powered relevance and they're seeing measurable results from Co AI.
Total revenue and SaaS revenue both came in above guidance. And as a result, we are reaffirming guidance for fiscal '26, and are now expecting SaaS subscription revenue and total revenue at the top end of the previously guided range.
During the quarter, we closed. The second largest AI Commerce expansion transaction in our history with Cardinal Health. A customer we discussed last quarter.
Customer momentum remains very strong during the quarter with a healthy balance between new customer wins and expansion within our existing base.
Deliver Enterprise grade AI at massive scale.
We signed major new contracts with leading Brands such as GE Liberty, Mutual total tools and insight to name a few
How we operate in highly complex environments and generates tangible Financial results.
Our generative. AI Solutions. Also sustain, strong growth.
Notably, we secured the largest new customer win in Coveo’s history—a seven-figure deal with a Fortune 500 global leader in the industrial sector.
Louis Têtu: We also expanded more than 80 subscriptions and deployments with existing customers, including Deloitte, United Airlines, Ticketmaster, Cardinal Health, Andersen Windows, Thomson Reuters, USAA, Vanguard, and Workday, all of whom increased adoption of our AI platform. Our commerce offering continued to deliver exceptional growth. Retailers, distributors, and manufacturers increasingly recognize the imperative for AI-powered relevance, and are seeing measurable results from Coveo AI. During the quarter, we closed the second-largest AI commerce expansion transaction in our history with Cardinal Health, a customer we discussed last quarter. Cardinal supports more than $220 billion in healthcare commerce distribution, and has validated our ability to deliver enterprise-grade AI at massive scale, how we operate in highly complex environments, and generates tangible financial results. Our generative AI solutions also sustained strong growth. Laurent will expand on this opportunity and the growth levers enabled by our continued platform innovation.
We also expanded more than 80 subscriptions and deployments with existing customers, including Deloitte, United Airlines, Ticketmaster, Cardinal Health, Andersen Windows, Thomson Reuters, USAA, Vanguard, and Workday, all of whom increased adoption of our AI platform. Our commerce offering continued to deliver exceptional growth. Retailers, distributors, and manufacturers increasingly recognize the imperative for AI-powered relevance, and are seeing measurable results from Coveo AI. During the quarter, we closed the second-largest AI commerce expansion transaction in our history with Cardinal Health, a customer we discussed last quarter. Cardinal supports more than $220 billion in healthcare commerce distribution, and has validated our ability to deliver enterprise-grade AI at massive scale, how we operate in highly complex environments, and generates tangible financial results. Our generative AI solutions also sustained strong growth. Laurent will expand on this opportunity and the growth levers enabled by our continued platform innovation.
The raw will expand on this opportunity and the growth levers enabled by our continued platform Innovation. Overall it was an outstanding quarter and Karen will provide the financial details.
During the quarter, we announced a strategic partnership with Deo, a global leader in digital transformation.
We also expanded more than 80 subscriptions and deployments with existing customers, including Deo. United Airlines Ticket, Master Cardinal Health Andersen, Windows, Thompson, Reuters USAA, Vanguard and workday, all of whom increase adoption of our AI platform.
The Lloyd shares, our belief that the future of Enterprise digital experiences is AI and relevance first and this partnership expands our reach across joint customers.
Our Commerce offering continued to deliver exceptional growth. Retailers, distributors, and manufacturers increasingly recognize the imperatives for AI-powered relevance, and they're seeing measurable results from Coveo AI.
we also signed an important memorandum of understanding with the government of Canada to support the modernization of digital services using coo, AI,
During the quarter, we closed the second largest AI Commerce expansion transaction in our history with Cardinal Health, a customer we discussed last quarter.
Cardinal supports more than $220 billion in healthcare commerce distribution and has validated our ability to deliver enterprise-grade AI at massive scale.
How we operate in highly complex environments and generates tangible Financial results.
Our generative AI solutions also sustain strong growth.
Louis Têtu: Overall, it was an outstanding quarter, and Karine will provide the financial details. During the quarter, we announced a strategic partnership with Deloitte, a global leader in digital transformation. Deloitte shares our belief that the future of enterprise digital experiences is AI and relevance first, and this partnership expands our reach across joint customers. We also signed an important memorandum of understanding with the Government of Canada to support the modernization of digital services using Coveo AI. We already serve the governments of Australia and New Zealand with modern search and generative solutions for citizens and civil servants. And with Canada, discussions are underway to evaluate large-scale deployments across agencies coast to coast to improve efficiency, service quality, and digital sovereignty. I am pleased with the pace and value of our innovation.
Overall, it was an outstanding quarter, and Karine will provide the financial details. During the quarter, we announced a strategic partnership with Deloitte, a global leader in digital transformation. Deloitte shares our belief that the future of enterprise digital experiences is AI and relevance first, and this partnership expands our reach across joint customers. We also signed an important memorandum of understanding with the Government of Canada to support the modernization of digital services using Coveo AI. We already serve the governments of Australia and New Zealand with modern search and generative solutions for citizens and civil servants. And with Canada, discussions are underway to evaluate large-scale deployments across agencies coast to coast to improve efficiency, service quality, and digital sovereignty. I am pleased with the pace and value of our innovation.
We already served the governments of Australia and New Zealand with modern search, and generative solutions for Citizens and civil servants. And with Canada discussions, are on their way to evaluate large-scale, deployments across agencies Coast to Coast, to improve efficiency service quality and digital sovereignty. I am pleased with the pace and value of our Innovation. Our strong bookings and increasing number of larger transactions. Confirmed that these breakthroughs are resonating and that our customers anchor Co in their core AI plans.
The raw will expand on this opportunity and the growth levers enabled by our continued platform innovation. Overall, it was an outstanding quarter, and Ken will provide the financial details.
We're particularly excited about our rag as a service and Co hosted mCP server offerings.
During the quarter, we announced a strategic partnership with Deo, a global leader in digital transformation.
These Solutions allow customers to securely ground, generative, Ai and digital agents in permission. Aware context aware Enterprise data.
Lloyd shares our belief that the future of enterprise digital experiences is AI and relevance first, and this partnership expands our reach across joint customers.
1 of the most difficult challenges, in Enterprise AI.
Coil removes the complexity around retrieval, security and relevance.
we also signed an important memorandum of understanding with the government of Canada to support the modernization of digital services using coo, AI,
Building on this. We announced the availability of rag as a service for AWS, agent tech services, helping AWS accelerate, customer adoption and agent Tech.
Louis Têtu: Our strong bookings and increasing number of larger transactions confirm that these breakthroughs are resonating, and that our customers anchor Coveo in their core AI plans. We're particularly excited about our RAG as a service and Coveo-hosted MCP server offerings. These solutions allow customers to securely ground the generative AI and digital agents in permission-aware, context-aware enterprise data, one of the most difficult challenges in enterprise AI. Coveo removes the complexity around retrieval, security, and relevance. Building on this, we announced the availability of RAG as a service for AWS Agentic Services, helping AWS accelerate customer adoption and Agentic. We also recently launched the Coveo app for OpenAI ChatGPT Enterprise. This brings secure, enterprise-grade relevance directly into natural language workflows. The key takeaway here is that our flexible, agnostic RAG and MCP architecture significantly expands our integration and partnership opportunities across the rapidly growing Agentic ecosystem.
Our strong bookings and increasing number of larger transactions confirm that these breakthroughs are resonating, and that our customers anchor Coveo in their core AI plans. We're particularly excited about our RAG as a service and Coveo-hosted MCP server offerings. These solutions allow customers to securely ground the generative AI and digital agents in permission-aware, context-aware enterprise data, one of the most difficult challenges in enterprise AI. Coveo removes the complexity around retrieval, security, and relevance. Building on this, we announced the availability of RAG as a service for AWS Agentic Services, helping AWS accelerate customer adoption and Agentic. We also recently launched the Coveo app for OpenAI ChatGPT Enterprise. This brings secure, enterprise-grade relevance directly into natural language workflows. The key takeaway here is that our flexible, agnostic RAG and MCP architecture significantly expands our integration and partnership opportunities across the rapidly growing Agentic ecosystem.
We already serve the governments of Australia and New Zealand with modern search and generative solutions for Citizens and civil servants. And with Canada, discussions are underway to evaluate large-scale, deployments across agencies Coast to Coast, to improve efficiency service quality and digital sovereignty. I am pleased with the pace and value of our innovation
We also recently launched the Cleo app for open. AI chat gpp Enterprise. This brings secure enterprise-grade relevance directly into natural. Language workflows the key takeaway here is that our flexible agnostic Rag and mCP architecture. Significantly expands our integration and partnership opportunities across the rapidly growing agent to Echo System.
Our strong bookings and increasing number of larger transactions, confirmed that these breaks are resonating and that our customers anchor Co in their core AI plans.
We're particularly excited about our rag as a service and Co hosted mCP server offerings.
Investors often ask us why Co is so valuable and sustainably differentiated in an increasingly crowded AI landscape. Why do Enterprises choose Co often investing millions in subscriptions of building these capabilities themselves.
The answer is twofold.
These Solutions allow customers to securely ground, generative, Ai and digital agents in permission. Aware context aware Enterprise data.
First Enterprise, AI does not inherently know your data.
1 of the most difficult challenges, in Enterprise AI.
So, they will remove the complexity around retrieval, security, and relevance.
1 of the major, most profound breakthroughs of generative AI is its ability to synthesize and Stitch fragmented, siloed information into coherent answers in real time.
Service for AWS, agent tech services, helping AWS accelerate customer adoption and agent tech.
However, securely connecting models to complex fragmented, Enterprise data at scale remains extremely difficult.
Second reason, AI does not understand context by default.
Enterprises cannot tolerate hallucinations.
Customers employees, and stakeholders require accurate answers based on current context and govern data.
We also recently launched the COO app for OpenAI ChatGPT Enterprise. This brings secure, enterprise-grade relevance directly into natural language workflows. The key takeaway here is that our flexible, agnostic RAG and mCP architecture significantly expands our integration and partnership opportunities across the rapidly growing agent ecosystem.
Louis Têtu: Investors often ask us why Coveo is so valuable and sustainably differentiated in an increasingly crowded AI landscape. Why do enterprises choose Coveo, often investing millions in subscriptions instead of building these capabilities themselves? The answer is twofold. First, enterprise AI does not inherently know your data. One of the major, most profound breakthroughs of generative AI is its ability to synthesize and stitch fragmented, siloed information into coherent answers in real time. However, securely connecting models to complex, fragmented enterprise data at scale remains extremely difficult. Second reason, AI does not understand context by default. Enterprises cannot tolerate hallucinations. Customers, employees, and stakeholders require accurate answers based on current context and governed data. Achieving this level of precision requires surgical governance of relevance. It's a science. Coveo has spent years building and refining AI models that govern relevance and intelligently connect enterprise data to digital experiences.
Investors often ask us why Coveo is so valuable and sustainably differentiated in an increasingly crowded AI landscape. Why do enterprises choose Coveo, often investing millions in subscriptions instead of building these capabilities themselves? The answer is twofold. First, enterprise AI does not inherently know your data. One of the major, most profound breakthroughs of generative AI is its ability to synthesize and stitch fragmented, siloed information into coherent answers in real time. However, securely connecting models to complex, fragmented enterprise data at scale remains extremely difficult. Second reason, AI does not understand context by default. Enterprises cannot tolerate hallucinations. Customers, employees, and stakeholders require accurate answers based on current context and governed data. Achieving this level of precision requires surgical governance of relevance. It's a science. Coveo has spent years building and refining AI models that govern relevance and intelligently connect enterprise data to digital experiences.
Achieving this level of precision requires surgical governance of relevance, it's a science.
Has spent years building and refining AI models that govern relevance and intelligently connect Enterprise data to digital experiences.
That technology is critical.
Investors often ask us, why is so valuable and sustainably differentiated in an increasingly crowded AI landscape. Why do Enterprises choose Co often investing millions in subscriptions of building these capabilities themselves.
The answer is twofold.
First Enterprise, AI does not inherently know your data.
Customers consistently measure, Superior outcomes with our platform validated through AB testing and reflected. In cost, reductions Revenue, growth margin Improvement, productivity, gains, and better decision making just to name a few
1 of the major, most profound breakthroughs of generative AI is its ability to synthesize and Stitch fragmented, siloed information into coherent answers in real time.
In the past, search was just retrieval embedded in apps. Today, relevance is what matters?
However, securely connecting models to complex, fragmented enterprise data at scale remains extremely difficult.
In fact, during the quarter, Salesforce reconnected Co search within his Global, support portal after customer dissatisfaction during a brief disconnection.
Second reason, AI does not understand context by default.
Enterprises cannot tolerate hallucinations.
Customers, employees, and stakeholders require accurate answers based on current context and government data.
While agent forces designed to answer questions from within Salesforce data Cloud, Co search relevance is still necessary to surface. The exact issue resolving content for these millions of Salesforce users.
Achieving this level of precision requires surgical governance of relevance, it's a science.
In our view, Co is complimentary to agents such as agent force.
Louis Têtu: That technology is critical. Customers consistently measure superior outcomes with our platform, validated through AB testing and reflected in cost reductions, revenue growth, margin improvement, productivity gains, and better decision-making, just to name a few. In the past, search was just retrieval, embedded in apps. Today, relevance is what matters. In fact, during the quarter, Salesforce reconnected Coveo search within its global support portal after customer dissatisfaction during a brief disconnection. While Agentforce is designed to answer questions from within Salesforce Data Cloud, Coveo Search Relevance is still necessary to surface the exact issue-resolving content for these millions of Salesforce users. In our view, Coveo is complementary to agents such as Agentforce. As Laurent will discuss in a moment, AI search and relevance is needed to enrich and augment agent tech, and we have multiple examples of this with Agentforce customers in particular.
That technology is critical. Customers consistently measure superior outcomes with our platform, validated through AB testing and reflected in cost reductions, revenue growth, margin improvement, productivity gains, and better decision-making, just to name a few. In the past, search was just retrieval, embedded in apps. Today, relevance is what matters. In fact, during the quarter, Salesforce reconnected Coveo search within its global support portal after customer dissatisfaction during a brief disconnection. While Agentforce is designed to answer questions from within Salesforce Data Cloud, Coveo Search Relevance is still necessary to surface the exact issue-resolving content for these millions of Salesforce users. In our view, Coveo is complementary to agents such as Agentforce. As Laurent will discuss in a moment, AI search and relevance is needed to enrich and augment agent tech, and we have multiple examples of this with Agentforce customers in particular.
Has spent years building and refining AI models that govern relevance and intelligently connect Enterprise data to digital experiences.
To enrich and augment agent tick. And we have multiple examples of this with agent force customers in particular.
That technology is critical.
Today, relevance is a necessary enterprise-wide capability that powers interaction channels and agentic workflows with consistent Precision, security and governance across all data silos.
Customers consistently measure superior outcomes with our platform, validated through A/B testing and reflected in cost reductions, revenue growth, margin improvement, productivity gains, and better decision making, just to name a few.
In the past, search was just retrieval embedded in apps. Today, relevance is what matters?
That relevance and connectivity layer is what, coo AI delivers and replicating. It requires years of deep Enterprise engineering and Real World experience.
We are more convinced than ever that seos addressable markets, is large and expanding.
In fact, during the quarter, Salesforce reconnected Coveo Search within his global support portal after customer dissatisfaction during a brief disconnection.
We've built defensible modes in relevance for knowledge intensive Industries and an AI powered search and Discovery for complex consumer and B2B Commerce.
While agent forces designed to answer questions from within Salesforce data Cloud, Co search relevance is still necessary to surface. The exact issue resolving content for these millions of Salesforce users.
We have rapidly evolved Co into a highly flexible AI platform that allows Enterprises to access data anywhere.
In our view, Co is complementary to agents such as Agent Force,
As Laurel will discuss in a moment, AI search and relevance is needed to enrich and augment Agent Tick. And we have multiple examples of this with Agent Force customers in particular.
Louis Têtu: Today, relevance is a necessary enterprise-wide capability that powers interaction channels and agentic workflows with consistent precision, security, and governance across all data silos. That relevance and connectivity layer is what Coveo AI delivers, and replicating it requires years of deep enterprise engineering and real-world experience. We are more convinced than ever that Coveo's addressable market is large and expanding. We've built defensible moats in relevance for knowledge-intensive industries and an AI-powered search and discovery for complex consumer and B2B commerce. We have rapidly evolved Coveo into a highly flexible AI platform that allows enterprises to access data anywhere, adapt to multiple AI and large language models, and inject context-aware intelligence into any application or conversational agent. This flexibility significantly expands our use cases and market verticals potential. We're particularly excited about the large and fast-growing market for Coveo AI in the industrial sector.
Today, relevance is a necessary enterprise-wide capability that powers interaction channels and agentic workflows with consistent precision, security, and governance across all data silos. That relevance and connectivity layer is what Coveo AI delivers, and replicating it requires years of deep enterprise engineering and real-world experience. We are more convinced than ever that Coveo's addressable market is large and expanding. We've built defensible moats in relevance for knowledge-intensive industries and an AI-powered search and discovery for complex consumer and B2B commerce. We have rapidly evolved Coveo into a highly flexible AI platform that allows enterprises to access data anywhere, adapt to multiple AI and large language models, and inject context-aware intelligence into any application or conversational agent. This flexibility significantly expands our use cases and market verticals potential. We're particularly excited about the large and fast-growing market for Coveo AI in the industrial sector.
adapt to multiple Ai and large language models and inject context to where intelligence into any application or conversational agent this flexibility significantly, expands our use cases and Market verticals potential
For particularly excited about the large and fast growing market. For coal, AI in the industrial sector.
Today, relevance is a necessary enterprise-wide capability that powers interaction channels and agentic workflows with consistent Precision, security and governance across all data silos.
think about manufacturing distribution, Aerospace, energy, medical devices, or hardware, for example,
Here, we're addressing the economics of uptime and dependability with AI.
That relevance and connectivity layer is what Co AI delivers and replicating. It requires years of deep Enterprise engineering and Real World experience.
We are more convinced than ever that seos addressable markets, is large and expanding.
In the us alone, nearly 10,000 companies. Generate revenues about 250 million acres and Industrial segments.
We've built defensible modes in relevance for knowledge intensive Industries and an AI powered search and Discovery for complex consumer and d2b commerce.
Think about assets, such as MRI machines, aircrafts AAC systems or heavy equipment, downtime costs. For these are significant often in the millions of dollars annually.
We have rapidly evolved into a highly flexible AI platform that allows enterprises to access data anywhere.
This creates very compelling economics for our software. As we help increase efficiency and uptime with 360 degree, customer care, intelligence,
Industrial data and content are highly complex and siloed.
Adapt to multiple AI and large language models, and inject context-aware intelligence into any application or conversational agent. This flexibility significantly expands our use cases and market verticals potential.
Louis Têtu: Think about manufacturing, distribution, aerospace, energy, medical devices, or hardware, for example. Here, we're addressing the economics of uptime and dependability with AI. In the US alone, nearly 10,000 companies generate revenues above $250 million across these industrial segments. Think about assets such as MRI machines, aircraft, HVAC systems, or heavy equipment. Downtime costs for these are significant, often in the $ millions annually. This creates very compelling economics for our software as we help increase efficiency and uptime with 360-degree customer care intelligence. Industrial data and content are highly complex and siloed. Our AI can unify it and turn it into context-aware intelligence for issue diagnosis, prescribed solutions, service intelligence, and complex parts recommendations.
Think about manufacturing, distribution, aerospace, energy, medical devices, or hardware, for example. Here, we're addressing the economics of uptime and dependability with AI. In the US alone, nearly 10,000 companies generate revenues above $250 million across these industrial segments. Think about assets such as MRI machines, aircraft, HVAC systems, or heavy equipment. Downtime costs for these are significant, often in the $ millions annually. This creates very compelling economics for our software as we help increase efficiency and uptime with 360-degree customer care intelligence. Industrial data and content are highly complex and siloed. Our AI can unify it and turn it into context-aware intelligence for issue diagnosis, prescribed solutions, service intelligence, and complex parts recommendations.
Our AI can unify it and turn it into context. Aware intelligence for issue. Diagnosis, prescribed Solutions, service, intelligence and complex Parts recommendations.
We're particularly excited about the large and fast growing markets for coal, AI in the industrial sector.
think about manufacturing distribution, Aerospace, energy, medical devices, or hardware, for example,
Here, we're addressing the economics of uptime and dependability with AI.
so our manufacturing customers can deploy a single coil platform as the real-time orchestrated intelligence for self-service, contact center agents, search portals field service and of course linked to complex aftermarket parts, Commerce, advice and recommendations
Something that is very time consuming and more costly to do without AI.
In the us alone, nearly 10,000 companies. Generate revenues about 250 million across these industrial segments.
Our AI insights can even be embedded within connected products.
That then continuously feeds back data into our AI models for even greater speed and precision.
Creates very compelling economics for our software.
We are not aware of any other platform that delivers, this breadth of experiences from a unified AI intelligence layer.
As we help increase efficiency and save enough time with 360-degree customer care intelligence,
Industrial data and content are highly complex and siloed.
Our mission and conviction remain unchanged. Since we began combining Enterprise search and machine learning in 2012.
The world runs on digital experiences, it is now widely understood that all of them will be transformed by AI.
Louis Têtu: So our manufacturing customers can deploy a single Coveo platform as the real-time orchestrated intelligence for self-service, contact center agents, search portals, field service, and of course, linked to complex aftermarket parts, commerce, advice, and recommendations, something that is very time-consuming and more costly to do without AI. Our AI insights can even be embedded within connected products that then continuously feed back data into our AI models for even greater speed and precision. We are not aware of any other platform that delivers this breadth of experiences from a unified AI intelligence layer. Our mission and conviction remain unchanged since we began combining enterprise search and machine learning in 2012. The world runs on digital experiences. It is now widely understood that all of them will be transformed by AI.
So our manufacturing customers can deploy a single Coveo platform as the real-time orchestrated intelligence for self-service, contact center agents, search portals, field service, and of course, linked to complex aftermarket parts, commerce, advice, and recommendations, something that is very time-consuming and more costly to do without AI. Our AI insights can even be embedded within connected products that then continuously feed back data into our AI models for even greater speed and precision. We are not aware of any other platform that delivers this breadth of experiences from a unified AI intelligence layer. Our mission and conviction remain unchanged since we began combining enterprise search and machine learning in 2012. The world runs on digital experiences. It is now widely understood that all of them will be transformed by AI.
Our AI can unify it and turn it into context. Aware intelligence for issue. Diagnosis, prescribed Solutions, service, intelligence and complex Parts recommendations.
Co is uniquely positioned as a mature platform that governs and optimizes AI powered experiences on Enterprise data.
Before passing it to, I want to thank Brandon NSE who is stepping down in a few days for his years as our CFO.
so our manufacturing customers can deploy a single coil platform as the real-time orchestrated intelligence for self-service, contact center agents, search portals field service and of course linked to complex aftermarket parts, Commerce, advice and recommendations
Something that is very time-consuming and more costly to do without AI.
Our AI insights can even be embedded within connected products.
After a 20-year career, as a public company CFO, Brandon is moving to the private company side. Brandon we're deeply grateful for your contributions and for helping build our solid growth Foundation.
With that lauron.
That then continuously feedback data into our AI models for even greater speed and precision.
Thank you, Louise.
Firstly proud of our team during this record, third quarter and how we are positioned for continued growth acceleration.
We are not aware of any other platform that delivers this breadth of experiences from a unified AI intelligence layer.
Our mission and conviction remain unchanged. Since we began combining Enterprise search and machine learning in 2012.
He applied AI Market is moving from confusion to Clarity. Organizations are now more educated buyers shaped by early experiments and in many cases inflated the I claims that failed to deliver.
Louis Têtu: Coveo is uniquely positioned as a mature platform that governs and optimizes AI-powered experiences on enterprise data. Before passing it to Laurent Simoneau, I want to thank Brandon Nussey, who is stepping down in a few days, for his years as our CFO. After a 20-year career as a public company CFO, Brandon is moving to the private company side. Brandon, we're deeply grateful for your contributions and for helping build our solid growth foundation. With that, Laurent?
Coveo is uniquely positioned as a mature platform that governs and optimizes AI-powered experiences on enterprise data. Before passing it to Laurent Simoneau, I want to thank Brandon Nussey, who is stepping down in a few days, for his years as our CFO. After a 20-year career as a public company CFO, Brandon is moving to the private company side. Brandon, we're deeply grateful for your contributions and for helping build our solid growth foundation. With that, Laurent?
The world runs on digital experiences, it is now widely understood that all of them will be transformed by AI.
Customers come to Koh with a strong appreciation for platform maturity and more importantly for provable results.
Coveo is uniquely positioned as a mature platform that governs and optimizes AI-powered experiences on enterprise data.
Before passing it to line, I want to thank Brandon Nasi who is stepping down in a few days, for his years as our CFO.
With a focus on tangible outcomes, rather than AIS technology in search of problems.
1 of the largest and most immediate areas of impact is digital experiences.
After a 20-year career, as a public company CFO, granted is moving to the private company side.
Serving buyers, customers citizens and employees.
Brandon, we're deeply grateful for your contributions and for helping build our solid growth foundation.
Persons online with high relevance expectations.
With that lauron.
Laurent Simoneau: Thank you, Louis. First, I'm extremely proud of our team during this record Q3 and how we are positioned for continued growth acceleration. The applied AI market is moving from confusion to clarity. Organizations are now more educated buyers, shaped by early experiments and, in many cases, inflated AI claims that failed to deliver. Customers come to Coveo with a strong appreciation for platform maturity and, more importantly, for provable results. While investment in foundational AI remains strong, the market is shifting towards operationalizing AI with company-specific data and use cases, with a focus on tangible outcomes rather than AI as technology in search of problems. One of the largest and most immediate areas of impact is digital experiences, serving buyers, customers, citizens, and employees, persons online with high relevance expectations.
Laurent Simoneau: Thank you, Louis. First, I'm extremely proud of our team during this record Q3 and how we are positioned for continued growth acceleration. The applied AI market is moving from confusion to clarity. Organizations are now more educated buyers, shaped by early experiments and, in many cases, inflated AI claims that failed to deliver. Customers come to Coveo with a strong appreciation for platform maturity and, more importantly, for provable results. While investment in foundational AI remains strong, the market is shifting towards operationalizing AI with company-specific data and use cases, with a focus on tangible outcomes rather than AI as technology in search of problems. One of the largest and most immediate areas of impact is digital experiences, serving buyers, customers, citizens, and employees, persons online with high relevance expectations.
Thank you, Louise.
Digital and in gintech experiences must be routed and secure proprietary Enterprise data with relevance that remains coherent across the entire Journey.
First, I'm extremely proud of our team during this record third quarter and how we are positioned for continued growth acceleration.
Governing AI models to the liver. Precise relevance is therefore critical.
Given the rapid compensation of AI models. Flexibility and agnosticism are no longer optional.
The applied AI market is moving from confusion to clarity. Organizations are now more educated buyers, shaped by early experiments and, in many cases, inflated AI claims that failed to deliver.
This is where Co plays providing The Trusted foundational. Plumbing, that allows Enterprises to realize value from AI at scale and adapt over time.
Customers come to caavo with a strong appreciation for platform maturity and more importantly for provable results.
As CEO for closing a year. Now I'm focused on 5 Pryor Innovation value to customers and differentiation growth and Market expansion, discipline, execution. And of course, our healthy business economic model,
While investment in foundational AI remains strong, the market is shifting towards operationalizing AI with companies' specific data and use cases, with a focus on tangible outcomes rather than AI as technology in search of problems.
First innovation.
1 of the largest and most immediate areas of impact is digital experience.
Serving buyers, customers citizens and employees.
Persons online with high relevance expectations.
Laurent Simoneau: Digital and agentic experiences must be grounded in secure, proprietary enterprise data, with relevance that remains coherent across the entire journey. Governing AI models to deliver precise relevance is therefore critical. Given the rapid commoditization of AI models, flexibility and agnosticism are no longer optional.... This is where Coveo plays, providing the trusted foundational plumbing that allows enterprises to realize value from AI at scale and adapt over time. As CEO for close to a year now, I'm focused on 5 priorities: innovation, value to customers and differentiation, growth and market expansion, disciplined execution, and of course, our healthy business economic model. First, innovation. I could not be more excited about the pace and impact of the innovation we're delivering with our customers. The progress is driven 100% by the intentional flexibility of our platform. Louis covered our MCP server and RAG service launches. The takeaway is straightforward.
Digital and agentic experiences must be grounded in secure, proprietary enterprise data, with relevance that remains coherent across the entire journey. Governing AI models to deliver precise relevance is therefore critical. Given the rapid commoditization of AI models, flexibility and agnosticism are no longer optional.... This is where Coveo plays, providing the trusted foundational plumbing that allows enterprises to realize value from AI at scale and adapt over time. As CEO for close to a year now, I'm focused on 5 priorities: innovation, value to customers and differentiation, growth and market expansion, disciplined execution, and of course, our healthy business economic model. First, innovation. I could not be more excited about the pace and impact of the innovation we're delivering with our customers. The progress is driven 100% by the intentional flexibility of our platform. Louis covered our MCP server and RAG service launches. The takeaway is straightforward.
I could not be more excited about the pace and impact of the Innovation. We're delivering with our customers. The progress is driven 100%. By the intentional flexibility of our platform. We covered our MCB server and ragged service launches
Digital and intake experiences must be routed and secure proprietary enterprise data with relevance that remains coherent across the entire journey.
The takeaway is straightforward, coo delivers out of the box, connectivity, and governed relevance across digital experiences with security, and precision.
Governing AI models to deliver precision. Relevance is therefore critical.
Given the rapid conversation of AI models, flexibility and agnosticism are no longer optional.
Our platform is easily accessible to the developers applications and genetic systems. Enabling a consistent unified intelligence layer across multiple channels. This capability is Central to our extension to New Markets and higher values cases
This is work, available plays, providing The Trusted foundational, Plumbing that allows Enterprises to realize value from AI at scale and adapt over time.
aail is now available in charge, GPD Enterprise. AWS quick suite and Salesforce agent force. For example, in addition we see many customers independently leverage Co through mCP with AI systems, such as anthropic club and others.
SEO for closing a year. Now, I'm focused on 5 priority Innovation value to customers and differentiation growth and Market expansion, discipline, execution. And of course, our healthy business economic model,
First innovation.
Organizations will adapt multiple agentic platforms over time. It is imperative those platforms rely on a common relevance and productivity layer, and Co is designed to be that stack.
I could not be more excited about the pace and impact of the Innovation. Where delivering, with our customers, the progress is driven 100%. By the intentional flexibility of our platform. We covered our MCB server and ragged service launches
Laurent Simoneau: Coveo delivers out-of-the-box connectivity and governed relevance across digital experiences with security and precision. Our platform is easily accessible to developers, applications, and agentic systems, enabling a consistent, unified intelligence layer across multiple channels. This capability is central to our expansion into new markets and higher value use cases. Coveo is now available in ChatGPT Enterprise, AWS QuickSight, and Salesforce Agentforce, for example. In addition, we see many customers independently leverage Coveo through MCP with AI systems such as Anthropic Claude and others. Organizations will adopt multiple agentic platforms over time. It is imperative those platforms rely on a common relevance and connectivity layer, and Coveo is designed to be that stack. As CEO, I'm fully committed to a strategy centered on interoperability, flexibility, and unique value.
Coveo delivers out-of-the-box connectivity and governed relevance across digital experiences with security and precision. Our platform is easily accessible to developers, applications, and agentic systems, enabling a consistent, unified intelligence layer across multiple channels. This capability is central to our expansion into new markets and higher value use cases. Coveo is now available in ChatGPT Enterprise, AWS QuickSight, and Salesforce Agentforce, for example. In addition, we see many customers independently leverage Coveo through MCP with AI systems such as Anthropic Claude and others. Organizations will adopt multiple agentic platforms over time. It is imperative those platforms rely on a common relevance and connectivity layer, and Coveo is designed to be that stack. As CEO, I'm fully committed to a strategy centered on interoperability, flexibility, and unique value.
The takeaway is straightforward: Coveo delivers out-of-the-box connectivity and governed relevance across digital experiences with security and precision.
Our platform is easily accessible to developers, applications, and genetic systems, enabling a consistent, unified intelligence layer across multiple channels.
SEO and fully committed to a strategy centered on interoperability flexibility and unique value. This capability is allowed to be able to evolve from addressing a limited set of use cases to broaden its scope across more strategic vertical specific challenges from a growth perspective. This is also driving broader expansions and more 7 figure subscriptions for COA. Once we land in an account with initial more urgent, use case or ability to expand meaning fully with the same platform increases,
Second value to customers and differentiation.
This capability is central to our extension to new markets and higher-value use cases.
Let me share concrete examples.
First in Commerce, we built on our platform. A genetic Discovery solution that moves Co from ranking results to orchestrating the storefront experiments.
Suite and Salesforce Agentforce. For example, in addition, we see many customers independently leverage Coveo through mCP with AI systems such as Entropic, CLAW, and others.
Now, an intelligent agent, can dynamically select and present, the optimal mix of products and content to serve, both user and business objectives.
Organizations will adopt multiple agentic platforms over time. It is imperative those platforms rely on a common relevance and productivity layer, and Kabo is designed to be that stack.
Laurent Simoneau: This capability has allowed Coveo to evolve from addressing a limited set of use cases to broaden its scope across more strategic, vertical, and specific challenges. From a growth perspective, this is also driving broader expansions and more seven-figure subscriptions for Coveo. Once we land in an account with initial, more urgent use case, our ability to expand meaningfully with the same platform increases. Second, value to customers and differentiation. Let me share concrete examples. First, in commerce, we built on our platform agentic discovery solution that moves Coveo from ranking results to orchestrating the storefront experience. Now, an intelligent agent can dynamically select and present the optimal mix of products and content to serve both user and business objectives.
This capability has allowed Coveo to evolve from addressing a limited set of use cases to broaden its scope across more strategic, vertical, and specific challenges. From a growth perspective, this is also driving broader expansions and more seven-figure subscriptions for Coveo. Once we land in an account with initial, more urgent use case, our ability to expand meaningfully with the same platform increases. Second, value to customers and differentiation. Let me share concrete examples. First, in commerce, we built on our platform agentic discovery solution that moves Coveo from ranking results to orchestrating the storefront experience. Now, an intelligent agent can dynamically select and present the optimal mix of products and content to serve both user and business objectives.
Over time. Genetic Discovery will evolve into a true end to-end agent that guides customers seamlessly from free. Purchase Discovery to post sales support, proactively recommending products, providing guidance and resolving needs across the entire customer Journey.
We highlighted our growing presence in the industrial sector, including a new 7-figure customer in Industrial Automation, their decision, reflects our ability to unify content across their complex technology stacks and improve knowledge, access and service efficiency.
SEO. I'm fully committed to a strategy centered on interoperability, flexibility, and unique value. This capability is allowed to be able to evolve from addressing a limited set of use cases to broaden its scope across more strategic, vertical-specific challenges from a growth perspective. This is also driving broader expansions and more 7-figure subscriptions for Paiva. Once we land in an account with an initial, more urgent use case, our ability to expand meaningfully with the same platform increases.
Second, value to customers and differentiation.
Let me share concrete examples.
As you know, AI was built over more than a decade working with leading tech companies. They were the early adopters of relevance Revenue across their engineering and customer service operation.
First in Commerce, we built on our platform and genetic Discovery solution that moves Coveo from ranking results to orchestrating the storefront experience.
Today available is trusted by many of the world's leading technology companies. From AMD Intel Dell and Nvidia to sap Snowflake and Doc sign.
Now, an intelligent agent, can dynamically select and present, the optimal mix of products and content to serve, both user and business objectives.
Laurent Simoneau: Over time, agentic discovery will evolve into a true end-to-end agent that guides customers seamlessly from pre-purchase discovery to post-sale support, proactively recommending products, providing guidance, and resolving needs across the entire customer journey. Louis highlighted our growing presence in the industrial sector, including a new seven-figure customer in industrial automation. Their decision reflects our ability to unify content across their complex technology stacks and improve knowledge, access, and service efficiency. As you know, Coveo AI was built over more than a decade working with leading tech companies. They were the early adopters of relevance-driven AI across their engineering and customer service operation. Today, Coveo is trusted by many of the world's leading technology companies, from AMD, Intel, Dell, and NVIDIA to SAP, Snowflake, and DocuSign. The same dynamic applies across aerospace, energy, transportation, and heavy industry. Companies such as Halliburton, Schlumberger, Cummins, Honeywell, already rely on Coveo.
Over time, agentic discovery will evolve into a true end-to-end agent that guides customers seamlessly from pre-purchase discovery to post-sale support, proactively recommending products, providing guidance, and resolving needs across the entire customer journey. Louis highlighted our growing presence in the industrial sector, including a new seven-figure customer in industrial automation. Their decision reflects our ability to unify content across their complex technology stacks and improve knowledge, access, and service efficiency. As you know, Coveo AI was built over more than a decade working with leading tech companies. They were the early adopters of relevance-driven AI across their engineering and customer service operation. Today, Coveo is trusted by many of the world's leading technology companies, from AMD, Intel, Dell, and NVIDIA to SAP, Snowflake, and DocuSign. The same dynamic applies across aerospace, energy, transportation, and heavy industry. Companies such as Halliburton, Schlumberger, Cummins, Honeywell, already rely on Coveo.
The same Dynamic applies across Aerospace energy. Transportation heavy industry companies such as Haley Burton Schlumberger, cumins Honeywell already rely on COA.
We recently successfully built an AI power diagnostic solution for Global medical devices. Company synchronized with intelligent aftermarket parts comments.
Over time. Genetic Discovery will evolve into a true end-to-end agent that guides customers seamlessly from free. Purchase Discovery to post sales support, proactively recommending products, providing guidance and resolving needs across the entire customer Journey.
We highlighted our growing presence in the industrial sector, including a new 7. Figure customer in Industrial Automation.
Rapid resolution depends on securely, interpreting siloed, engineering data maintenance history and parts. Compatibility and availability through context that way around.
Their decision reflects our ability to unify content across their complex technology stacks and improve knowledge, access, and service efficiency.
Without the ability to securely connect and interpret the siloed information that scale resolution times. Lengthen, C Rises renew the clients and outcomes suffer
As, you know, I was built over more than a decade working with leading tech companies. They were the early adopters of relevance driven AI across their engineering and customer service operation.
related to Deaths our partnership with sap remained. A key driver booking during the quarter and also anchoring industrial segments where sap has deep Market penetration.
Today, Coveo is trusted by many of the world's leading technology companies—from AMD, Intel, Dell, and Nvidia to SAP, Snowflake, and DocuSign.
What began with sap Commerce and Global retailers is now expanding into multiple knowledge, use cases reinforcing the Strategic importance of this partnership.
The same dynamic applies across aerospace, energy, transportation, and heavy industry companies such as Halliburton, Schlumberger, Cummins, Honeywell already rely on Coveo.
Laurent Simoneau: We recently successfully built an AI-powered diagnostic solution for a global medical devices company, synchronized with intelligent aftermarket parts commerce. In environments where equipment failure carries high financial and human stakes, such as an MRI machine, for example, rapid resolution depends on securely interpreting siloed engineering data, maintenance history, and parts compatibility and availability through context-aware routes. Without the ability to securely connect and interpret this siloed information at scale, resolution times lengthen, cost rises, revenue declines, and outcomes suffer. Related to this, our partnership with SAP remained a key driver of bookings during the quarter and also an anchor in industrial segments where SAP has a deep market penetration. What began with SAP Commerce and global retailers is now expanding into multiple knowledge use cases, reinforcing the strategic importance of this partnership.
We recently successfully built an AI-powered diagnostic solution for a global medical devices company, synchronized with intelligent aftermarket parts commerce. In environments where equipment failure carries high financial and human stakes, such as an MRI machine, for example, rapid resolution depends on securely interpreting siloed engineering data, maintenance history, and parts compatibility and availability through context-aware routes. Without the ability to securely connect and interpret this siloed information at scale, resolution times lengthen, cost rises, revenue declines, and outcomes suffer. Related to this, our partnership with SAP remained a key driver of bookings during the quarter and also an anchor in industrial segments where SAP has a deep market penetration. What began with SAP Commerce and global retailers is now expanding into multiple knowledge use cases, reinforcing the strategic importance of this partnership.
In 2025 Cleo was 1 of the saps. Fastest growing indoor partner in the sap CX ecosystem.
We recently built an AI-powered diagnostic solution for global medical devices. The company synchronized this with intelligent aftermarket parts commerce.
I'm also pleased with our momentum and financial services, the core knowledge industry vertical for kovaya during the quarter, a leading Global asset manager over seeing nearly 10 trillion in asset under management, significantly expanded scale subscription
In environments, where equipment, feder carries, High financial and human states such as an MRI machine. For example, rapid resolution depends on securely, interpreting siloed, engineering data maintenance history and parts. Compatibility and availability through context that way around.
Without the ability to securely connect and interpret the siloed information at scale, resolution times lengthen, CSAT rises, renewals decline, and the clients and outcomes suffer.
Related to this are partnerships with SAP that remained. The key driver was bookings during the quarter, and also an anchor in industrial segments where SAP has deep market penetration.
This customer initially deployed or generative, answering to support financial, advisors handling complex, investor questions in real time. The results were compelling, driving meaningful improvements in productivity consistency and overall customer experience based on this success and strong internal confidence in our accuracy and security. They have no extended these capabilities to investor facing self-service experiences. Today, they are using Co AI across more men, 40 internal and external digital properties.
This for us is a big deal.
Laurent Simoneau: In 2025, Coveo was one of the SAP's fastest growing endorsed partner in the SAP CX ecosystem. I'm also pleased with our momentum in financial services, a core knowledge industry vertical for Coveo. During the quarter, a leading global asset manager overseeing nearly 10 trillion in asset under management, significantly extended its Coveo subscription. This customer initially deployed our generative answering to support financial advisors handling complex investor questions in real time. The results were compelling, driving meaningful improvements in productivity, consistency, and overall customer experience. Based on this success and strong internal confidence in our accuracy and security, they have now extended these capabilities to investor-facing self-service experiences. Today, they are using Coveo AI across more than 40 internal and external digital properties. This, for us, is a big deal....
In 2025, Coveo was one of the SAP's fastest growing endorsed partner in the SAP CX ecosystem. I'm also pleased with our momentum in financial services, a core knowledge industry vertical for Coveo. During the quarter, a leading global asset manager overseeing nearly 10 trillion in asset under management, significantly extended its Coveo subscription. This customer initially deployed our generative answering to support financial advisors handling complex investor questions in real time. The results were compelling, driving meaningful improvements in productivity, consistency, and overall customer experience. Based on this success and strong internal confidence in our accuracy and security, they have now extended these capabilities to investor-facing self-service experiences. Today, they are using Coveo AI across more than 40 internal and external digital properties. This, for us, is a big deal....
What began with a CP Commerce and global retailers is now expanding into multiple knowledge use cases, reinforcing the strategic importance of this partnership.
The 2025 Co was one of the SAP's fastest growing indoors partners in the SAP CX ecosystem.
First this represents a growing 7, figure subscription and content expansion but more importantly this validates for you as a core technology, platform delivering relevant security and reliability in highly regulated high-stakes environments.
I'm also pleased with our momentum in financial services, a core knowledge industry vertical for Coveo.
It also reflects the confidence to move from advisor, assisted to a problem. Probably more on forgiving, Direct customer facing self-service.
During the quarter, a leading global asset manager overseeing nearly $10 trillion in assets under management significantly extended scale subscription.
these marketing wins with industrial leaders who have the scale to build in-house or choose from many vendors highlight why they partner with coo,
Diagnostic test stat platform, maturity improving ability to manage complexity and governance at scale are the reasons.
Australian will explain many of our largest customers. Continue to increase their spend with coo to us this validates, our platform, and reinforces seos position as a vendor of choice, for generative and genetic AI road maps.
Customer initially deployed, our generative answering to support financial advisors handling complex, investor questions in real time. The results were compelling, driving meaningful improvements in productivity, consistency and overall customer experience based on the success and strong internal confidence in our accuracy and security. They have no extended these capabilities to investor facing self-service experiences. Today they are using coai across more than 40 internal and external digital properties.
This for us is a big deal.
Laurent Simoneau: First, this represents a growing seven-figure subscription and constant expansion, but more importantly, this validates Coveo as a core technology platform, delivering relevant security and reliability in highly regulated, high-stakes environments. It also reflects the confidence to move from advisor-assisted to a probably more unforgiving, direct customer-facing self-service. These market wins with industry leaders, who have the scale to build in-house or choose from many vendors, highlight why they partner with Coveo. Our agnostic tech stack, platform maturity, and proven ability to manage complexity and govern relevance at scale are the reasons. As Karine will explain, many of our largest customers continue to increase their spend with Coveo. To us, this validates our platform and reinforces Coveo's position as a vendor of choice for Generative and Agentic AI roadmaps. These are powerful illustrations of our long-standing vision of unified relevance in action.
First, this represents a growing seven-figure subscription and constant expansion, but more importantly, this validates Coveo as a core technology platform, delivering relevant security and reliability in highly regulated, high-stakes environments. It also reflects the confidence to move from advisor-assisted to a probably more unforgiving, direct customer-facing self-service. These market wins with industry leaders, who have the scale to build in-house or choose from many vendors, highlight why they partner with Coveo. Our agnostic tech stack, platform maturity, and proven ability to manage complexity and govern relevance at scale are the reasons. As Karine will explain, many of our largest customers continue to increase their spend with Coveo. To us, this validates our platform and reinforces Coveo's position as a vendor of choice for Generative and Agentic AI roadmaps. These are powerful illustrations of our long-standing vision of unified relevance in action.
Highly regulated high stakes environments.
Powerful illustrations of our longstanding vision of unified relevance in Action. A single AI platform, connecting internal advisors and customer self-service for a bank, a single AI platform, unifying, Diagnostics aftermarket parts and service in 1 for an industrial company.
It also reflects the confidence to move from advisor-assisted to a probably more unforgiving direct customer-facing self-service.
By delivering high impact, use cases on a shared Foundation. We increasingly address strategic challenges for customers and open the door to New Vertical markets and expanded technology. Alliances
These marketing wins with industry leaders, who have the scale to build in-house or choose from many vendors, highlight why they partner with Kava.
Our third area of focus is our growth and Market extension, we are building a powerful growth engine on a single flexible. Agnostic, AI platform.
All right, Gnostic tech stack, platform maturity, and proven ability to manage complexity and governance at scale are the reasons.
on the 1 hand, the strategy drives consumption and subscription expansion with our existing customers
By running use cases, and solving more strategic higher value problems in a more integrated way.
As Karen will explain many of our largest customers. Continue to increase their spend with Co to us this validates, our platform, and reinforces seos position as a vendor of choice, for generative and genetic AI road maps.
On the other hand, it feels Market expansion by enabling applications and genetic to leverage Echo platform across multiple New Vertical Industries.
Laurent Simoneau: A single AI platform connecting internal advisors and customer self-service for a bank, a single AI platform unifying the diagnostics, aftermarket parts, and service in one coherent, intelligent layer for an industrial company. By delivering high-impact use cases on a shared foundation, we increasingly address strategic challenges for customers and open the door to new vertical markets and expanded technology alliances. Our third area of focus is our growth and market expansion. We are building a powerful growth engine on a single, flexible, agnostic AI platform. On the one hand, this strategy drives consumption and subscription expansion with our existing customers by broadening use cases and solving more strategic, higher-value problems in a more integrated way. On the other hand, it fuels market expansion by enabling applications and agentic to leverage a Coveo platform across multiple new vertical industries.
A single AI platform connecting internal advisors and customer self-service for a bank, a single AI platform unifying the diagnostics, aftermarket parts, and service in one coherent, intelligent layer for an industrial company. By delivering high-impact use cases on a shared foundation, we increasingly address strategic challenges for customers and open the door to new vertical markets and expanded technology alliances. Our third area of focus is our growth and market expansion. We are building a powerful growth engine on a single, flexible, agnostic AI platform. On the one hand, this strategy drives consumption and subscription expansion with our existing customers by broadening use cases and solving more strategic, higher-value problems in a more integrated way. On the other hand, it fuels market expansion by enabling applications and agentic to leverage a Coveo platform across multiple new vertical industries.
Our powerful illustrations of our longstanding vision of unified relevance in Action. A single AI platform, connecting internal advisors and customer self-service for a bank. A single AI platform unifying, Diagnostics
Is focused on Commerce for retailers Brands, large Distributors and B2B industrial customers. While remaining a leader in Search and generative experiences for knowledge Industries, such as Financial and Professional Services. These segments, represent a large and growing 10.
Aftermarket parts and service in 1 Co and intelligent layer for an industrial company.
We see significant upsides from further. Verticalization into new markets.
By delivering high-impact use cases on a shared foundation, we increasingly address strategic challenges for customers and open the door to new vertical markets and expanded technology alliances.
So net net. Our customers are expending with us and we're increasing our ability to serve a broader and more diverse set of customers.
Our third area of focus is our growth and market expansion.
Finally, my overarching priority is discipline and execution and a strong sustainable economic model.
We are building a powerful growth engine on a single flexible. Agnostic, AI platform.
on the 1 hand, the strategy drives consumption and subscription expansion with our existing customers
By broadening use cases and solving more strategic, higher-value problems in a more integrated way.
Laurent Simoneau: Today, Coveo is focused on commerce for retailers, brands, large distributors, and B2B industrial customers, while remaining a leader in search and generative experiences for knowledge industries such as financial and professional services. These segments represent a large and growing TAM. We see significant upsides from further verticalizing our applications into new markets. So net-net, our customers are expanding with us, and we're increasing our ability to serve a broader and more diverse set of customers. Finally, my overarching priority is disciplined execution and a strong, sustainable economic model. Focus matters for any successful business. At Coveo, our focus is on playing where we win and where customers win. Vertical markets, where we deliver the highest financial and operational value, operates with repeatability and consistency, and where we're the most trusted partner for our customers, of course, in markets we carefully select.
Today, Coveo is focused on commerce for retailers, brands, large distributors, and B2B industrial customers, while remaining a leader in search and generative experiences for knowledge industries such as financial and professional services. These segments represent a large and growing TAM. We see significant upsides from further verticalizing our applications into new markets. So net-net, our customers are expanding with us, and we're increasing our ability to serve a broader and more diverse set of customers. Finally, my overarching priority is disciplined execution and a strong, sustainable economic model. Focus matters for any successful business. At Coveo, our focus is on playing where we win and where customers win. Vertical markets, where we deliver the highest financial and operational value, operates with repeatability and consistency, and where we're the most trusted partner for our customers, of course, in markets we carefully select.
On the other hand, it feels Market expansion by enabling applications. And genic to leverage a coop platform across multiple New Vertical Industries.
Ability and consistency and where we're the most trusted partner for our customers. Of course, in markets, we carefully select I've shared multiple proof points and we continue to build a roster of leading Innovative. Global Enterprise customers with close to a thousand Brands and organizations with thousands of use cases deployed
Coo is focused on Commerce for retailers spreads, large Distributors, and B2B industrial customers. While remaining a leader in Search and generative experiences for knowledge Industries, such as Financial and Professional Services. These segments, represent a large and growing 10.
and we're winding our competitive advantage and expanding into markets industries, use cases and channels that were previously unimaginable.
We see significant upsides from further verticalization into new markets.
So net-net, our customers are expanding with us, and we're increasing our ability to serve a broader and more diverse set of customers.
At the same time, we remain disciplined about economics, we operate with high product growth. Margins about 80% very sticky, recurring Revenue, that grows organically and a favorable customer acquisition costs relative to the lifetime value of our customers.
Finally, my overarching priority is discipline and execution, and a strong, sustainable economic model.
We manage the business with a long-term mindset. We have built a real company with clear strategy to scale and we believe this is only the beginning.
To wrap up. I'm incredibly proud of our team's execution in this record core.
Laurent Simoneau: I've shared multiple proof points, and we continue to build a roster of leading, innovative, global enterprise customers, with close to a thousand brands and organizations, with thousands of use cases deployed. We're widening our competitive advantage and expanding into markets, industries, use cases, and channels that were previously unimaginable. At the same time, we remain disciplined about economics. We operate with high product growth margins, above 80%, very sticky, recurring revenue that grows organically, and a favorable customer acquisition cost relative to the lifetime value of our customers. We manage the business with a long-term mindset. We have built a real company with clear strategy to scale, and we believe this is only the beginning. To wrap up, I'm incredibly proud of our team's execution in this record quarter.
I've shared multiple proof points, and we continue to build a roster of leading, innovative, global enterprise customers, with close to a thousand brands and organizations, with thousands of use cases deployed. We're widening our competitive advantage and expanding into markets, industries, use cases, and channels that were previously unimaginable. At the same time, we remain disciplined about economics. We operate with high product growth margins, above 80%, very sticky, recurring revenue that grows organically, and a favorable customer acquisition cost relative to the lifetime value of our customers. We manage the business with a long-term mindset. We have built a real company with clear strategy to scale, and we believe this is only the beginning. To wrap up, I'm incredibly proud of our team's execution in this record quarter.
Our focus on Innovation and obsession with customer, outcomes continues to differentiate Co and the flexibility of our platform positions us well to capture the significant Market opportunity. I had
Finally, I also want to thank Brandon for his contribution and for being such an outstanding colleague and leader over the years.
Focus matters for any successful business. Let's go—our focus is on playing where we win and where customers win: vertical markets, where we deliver the highest financial and operational value, operate with repeatability and consistency, and where we're the most trusted partner for our customers. Of course, in markets we carefully select, I've shared multiple proof points, and we continue to build a roster of leading, innovative, global enterprise customers, with close to a thousand brands and organizations, and with thousands of use cases deployed.
With that, I'll turn it over to Kevin to walk through the financial details.
And we're widening our competitive advantage and expanding into markets, industries, use cases, and channels that were previously unimaginable.
Thanks. As you've heard from Aloha. We're pleased to report. That Q3 was a record quarter for Co, delivering the strongest booking performance in the company's history.
This was driven by meaningful land and expense transactions across our core growth drivers, especially our Genai and commerce Solutions.
At the same time, we remain disciplined about economics, we operate with high product growth. Margins about 80% very sticky, recurring Revenue, that grows organically and a favorable customer acquisition costs relative to the lifetime value of our customers.
First, I will quickly summarize or Q3 fiscal 2026 results.
We manage the business with a long-term mindset. We have built a real company with a clear strategy to scale, and we believe this is only the beginning.
Best subscription Revenue was 36.6 million us coming in ahead of guidance and representing a 13% year-over-year growth.
Laurent Simoneau: Our focus on innovation and obsession with customer outcomes continues to differentiate Coveo, and the flexibility of our platform positions us well to capture the significant market opportunity ahead. Finally, I also want to thank Brandon for his contribution and for being such an outstanding colleague and leader over the years. With that, I'll turn it over to Karine to walk through the financial details. Karine?
Our focus on innovation and obsession with customer outcomes continues to differentiate Coveo, and the flexibility of our platform positions us well to capture the significant market opportunity ahead. Finally, I also want to thank Brandon for his contribution and for being such an outstanding colleague and leader over the years. With that, I'll turn it over to Karine to walk through the financial details. Karine?
To wrap up, I'm incredibly proud of our team's execution and this record quarter.
Within this KO core platform, subscription Revenue was 35.8 Million.
Growing 15% year-over-year with our growth, roughly in line.
Our focus on innovation and obsession with customer outcomes continues to differentiate Coveo, and the flexibility of our platform positions us well to capture the significant market opportunity ahead.
Finally, I also want to thank Brandon for his contribution and for being such an outstanding colleague and leader over the years.
As previously announced we have now fully deprecated. The qubit platform and no longer expect any further cubed Revenue Beyond this quarter.
With that, I'll turn it over to Kevin to walk through the financial details.
Total revenue was 38 million up 12% from last year?
Get in.
Karine Hamel: Thanks, Laurent. As you've heard from Louis and Laurent, we're pleased to report that Q3 was a record quarter for Coveo, delivering the strongest bookings performance in the company's history. This was driven by meaningful land and expand transactions across our core growth drivers, especially our GenAI and commerce solutions. First, I will quickly summarize our Q3 fiscal 2026 results. That subscription revenue was $36.6 million, coming in ahead of guidance and representing a 13% year-over-year growth. Within this, Coveo core platform subscription revenue was $35.8 million, growing 15% year-over-year, with AR growth roughly in line. As previously announced, we have now fully deprecated the Qubit platform and no longer expect any further Qubit revenue beyond this quarter. Total revenue was $38 million, up 12% from last year. NER on the Coveo core platform was 105%.
Karine Hamel: Thanks, Laurent. As you've heard from Louis and Laurent, we're pleased to report that Q3 was a record quarter for Coveo, delivering the strongest bookings performance in the company's history. This was driven by meaningful land and expand transactions across our core growth drivers, especially our GenAI and commerce solutions. First, I will quickly summarize our Q3 fiscal 2026 results. That subscription revenue was $36.6 million, coming in ahead of guidance and representing a 13% year-over-year growth. Within this, Coveo core platform subscription revenue was $35.8 million, growing 15% year-over-year, with AR growth roughly in line. As previously announced, we have now fully deprecated the Qubit platform and no longer expect any further Qubit revenue beyond this quarter. Total revenue was $38 million, up 12% from last year. NER on the Coveo core platform was 105%.
Ner on the Cayo core platform was 105%.
Thanks. So, as you've heard from L. Noah, we're pleased to report that Q3 was a record quarter for Coveo.
Delivering, the strongest booking performance in the company's history.
Growth margin and product growth margin remains strong and broadly in line with last year at 78% and 81% respectively.
This was driven by meaningful land and expand transactions across our core growth drivers, especially our gen Ai and commerce Solutions.
Adjusted ibida was in line with our expectations at negative Point. 2 million down from positive 6 million in the prior year.
First, I will quickly summarize or Q3 fiscal 2026 results.
Cash flow from a parading activities. Was 0.5 million compared to negative -.2 million a year ago.
Was $36.6 million US coming in ahead of guidance and representing a 13% year-over-year growth?
Our cash position remains strong at 100.8 million us as of December, 31st with no debt.
Within this KO core platform, subscription revenue was $35.8 million.
Growing 15% year-over-year with our growth, roughly in line.
Getting into further details. As you've heard from Lewis and Q3 was a strong quarter across the business marked by high-quality wins, meaningful validation, from new and existing customers transactions, and solid and execution by the team.
As previously announced, we have now fully deprecated the Qubit platform and no longer expect any further Qubit revenue beyond this quarter.
Total revenue was $38 million, up 12% from last year.
This performance, reinforces seos position as a strategic platform supporting our customers search, gen Ai, and agentic, AI use cases.
Ner on the Cayo core platform was 105%.
Karine Hamel: Growth margin and product growth margin remained strong and broadly in line with last year, at 78% and 81%, respectively. Adjusted EBITDA was in line with our expectations, at -$0.2 million, down from $0.6 million in the prior year. Cash flow from operating activities was $0.5 million compared to -$0.2 million a year ago. Our cash position remains strong at $100.8 million as of December 31, with no debt. Getting into further details, as you've heard from Louis and Laurent, Q3 was a strong quarter across the business, marked by high quality wins, meaningful validation from new and existing customers' transactions, and solid and efficient execution by the team. This performance reinforces Coveo's position as a strategic platform supporting our customers' search, GenAI, and agentic AI use cases.
Growth margin and product growth margin remained strong and broadly in line with last year, at 78% and 81%, respectively. Adjusted EBITDA was in line with our expectations, at -$0.2 million, down from $0.6 million in the prior year. Cash flow from operating activities was $0.5 million compared to -$0.2 million a year ago. Our cash position remains strong at $100.8 million as of December 31, with no debt. Getting into further details, as you've heard from Louis and Laurent, Q3 was a strong quarter across the business, marked by high quality wins, meaningful validation from new and existing customers' transactions, and solid and efficient execution by the team. This performance reinforces Coveo's position as a strategic platform supporting our customers' search, GenAI, and agentic AI use cases.
Growth margin and product growth margin remain strong and broadly in line with last year at 78% and 81%, respectively.
And you are for the coil core platform with 105% in Q3 as a reminder from last quarter. Earnings, this continues to reflect the impact from a single 1-time contract renegotiation that took effect last quarter.
Without this event, anyer would have been 108% in Q3.
Adjusted ibida was in line with our expectations at negative -.2 million down from positive 0.6 million in the prior year.
We emphasized last quarter that this was a unique customer specific event.
Cash flow from operating activities was $0.5 million compared to negative $0.2 million a year ago.
What we see from our largest customer is K. Will becoming a core AI Tech partner with impressive expansion.
Our cash position remains strong at 100.8 million us as of December, 31st with no debt.
to give you some context, our current top 20 customers, none of which individually represent more than 5% of total revenue and averaging more than 1 million in our as achieved a 3 year, net extension rate of nearly 150%
Getting into further details. As you've heard from Louis, Q3 was a strong quarter across the business, marked by high-quality wins, meaningful validation from new and existing customers, transactions, and solid and efficient execution by the team.
This performance reinforces SEO's position as a strategic platform supporting our customers' search, Gen AI, and agentic AI use cases.
Karine Hamel: NER for the Coveo Core Platform was 105% in Q3. As a reminder from last quarter earnings, this continues to reflect the impact from a single one-time contract renegotiation that took effect last quarter. Without this event, NER would have been 108% in Q3. We emphasized last quarter that this was a unique customer-specific event. What we see from our largest customer is Coveo becoming a core AI tech partner with impressive expansion. To give you some context, our current top 20 customers, none of which individually represent more than 5% of total revenue and averaging more than 1 million in AR, have achieved a 3-year net expansion rate of nearly 150%. Over the past 3 years, this group has materially increased its spend with Coveo.
NER for the Coveo Core Platform was 105% in Q3. As a reminder from last quarter earnings, this continues to reflect the impact from a single one-time contract renegotiation that took effect last quarter. Without this event, NER would have been 108% in Q3. We emphasized last quarter that this was a unique customer-specific event. What we see from our largest customer is Coveo becoming a core AI tech partner with impressive expansion. To give you some context, our current top 20 customers, none of which individually represent more than 5% of total revenue and averaging more than 1 million in AR, have achieved a 3-year net expansion rate of nearly 150%. Over the past 3 years, this group has materially increased its spend with Coveo.
Form to power their Ai and gen AI experiences.
NR for the core platform was 105% in Q3, as a reminder from last quarter. Earnings, this continues to reflect the impact from a single one-time contract renegotiation that took effect last quarter.
Learning into the economics of the business growth margin and product growth margin remains strong at 78 and 81 respectively.
Without this event, ANR would have been 108% in Q3.
We emphasized last quarter that this was a unique, customer-specific event.
As we continue to see strong uptick and product eration of geni and Adoption of some of our newer Solutions. We've maintained Enterprise best-in-class product growth margin which speaks to our ability to efficiently grow the business.
What we see from our largest customer is KU will become a core AI tech partner with impressive expansion.
Adjusted individual for the quarter with negative Point. 2 million compared to 6 million a year ago,
Cash flows from operating activities were 0.5 million compared to negative 0.2 Million last year.
To give you some context, our current top 20 customers—none of which individually represent more than 5% of total revenue—are averaging more than $1 million. In our, that achieved a three-year net extension rate of nearly 150%.
Karine Hamel: Notably, this period aligns with the broader emergence of generative AI, underscoring how large enterprises are increasingly turning to Coveo's platform to power their AI and GenAI experiences. Turning into the economics of the business, gross margin and product gross margin remained strong at 78% and 81%, respectively. As we continue to see strong uptick and proliferation of GenAI and adoption of some of our newer solutions, we've maintained enterprise best-in-class product growth margin, which speaks to our ability to efficiently grow the business. Adjusted EBITDA for the quarter was -$0.2 million, compared to $0.6 million a year ago. Cash flows from operating activities were $0.5 million, compared to -$0.2 million last year.
Notably, this period aligns with the broader emergence of generative AI, underscoring how large enterprises are increasingly turning to Coveo's platform to power their AI and GenAI experiences. Turning into the economics of the business, gross margin and product gross margin remained strong at 78% and 81%, respectively. As we continue to see strong uptick and proliferation of GenAI and adoption of some of our newer solutions, we've maintained enterprise best-in-class product growth margin, which speaks to our ability to efficiently grow the business. Adjusted EBITDA for the quarter was -$0.2 million, compared to $0.6 million a year ago. Cash flows from operating activities were $0.5 million, compared to -$0.2 million last year.
Please note that adjusted ebitda and operating, cash flows. Both include 1.4 million 1-time, Services expense associated with targeted Workforce, optimization actions as part of our continued. Focus on directing investment towards the highest return opportunities.
Over the past 3 years. This group as materially increased, its pain with Co notably this period of lines with the brawler emergence of generative, AI underscoring, how large Enterprises are increasingly turning to kuo's platform to power their Ai and Genai experiences.
We will ended the quarter in a strong financial position with approximately 100 million Us in cash and no debt.
Learning into the economics of the business, growth margin and product growth margin remain strong at 78% and 81%, respectively.
during the quarter, we deployed 4.7 million to retire, approximately 1.1, million shares, under our ncib, reflecting, or continued, focus on discipline, Capital allocation
As we continue to see a strong uptick and proliferation of GenAI and adoption of some of our newer solutions, we've maintained enterprise best-in-class product gross margin, which speaks to our ability to efficiently grow the business.
All in all and consistent with what you've heard from us in the past. Our primary focus remains on growing our Top Line while operating efficiency and with discipline
Supported by a strong, balance sheet, and improving cash flow profile.
Adjusted, even though for the quarter with negative $0.2 million compared to $0.6 million a year ago,
I will now wrap up and discuss our guidance.
Karine Hamel: Please note that adjusted EBITDA and operating cash flows both include $1.4 million one-time severances expense associated with targeted workforce optimization actions as part of our continued focus on directing investment towards the highest return opportunities. Coveo ended the quarter in a strong financial position with approximately $100 million in cash and no debt. During the quarter, we deployed $4.7 million to retire approximately 1.1 million shares under our MCIB, reflecting our continued focus on disciplined capital allocation. All in all, and consistent with what you've heard from us in the past, our primary focus remains on growing our top line while operating efficiently and with discipline, supported by a strong balance sheet and improving cash flow profile. I will now wrap up and discuss our guidance. Our revenue guidance reflects the now completed end of life of the Qubit platform.
Please note that adjusted EBITDA and operating cash flows both include $1.4 million one-time severances expense associated with targeted workforce optimization actions as part of our continued focus on directing investment towards the highest return opportunities. Coveo ended the quarter in a strong financial position with approximately $100 million in cash and no debt. During the quarter, we deployed $4.7 million to retire approximately 1.1 million shares under our MCIB, reflecting our continued focus on disciplined capital allocation. All in all, and consistent with what you've heard from us in the past, our primary focus remains on growing our top line while operating efficiently and with discipline, supported by a strong balance sheet and improving cash flow profile. I will now wrap up and discuss our guidance. Our revenue guidance reflects the now completed end of life of the Qubit platform.
Cash flows from operating activities were 0.5 million compared to negative -.2 Million last year.
Our Revenue guidance reflects the now completed end of life of the qubit platform.
as a result Q4 says, subscription Revenue will now consist solely of kubo's score platform Revenue,
I would also like to remind everyone that we recognize revenue on a daily basis.
Please note that adjusted EBITDA and operating cash flows both include a $1.4 million one-time services expense associated with targeted workforce optimization actions as part of our continued focus on directing investment towards the highest return opportunities.
Q4 includes 2, fewer calendar days than Q3 which impacts sequential Revenue comparisons by approximately 0.8 million.
We will end the quarter in a strong financial position, with approximately $100 million in cash and no debt.
With that context for Q4 fiscal 2026. We expect fast subscription Revenue to be in the range of 35.6 to 36.1 million.
During the quarter, we deployed $4.7 million to retire approximately 1.1 million shares under our NCIB, reflecting our continued focus on disciplined capital allocation.
Total revenue to be in the range of 37.1 to 37.6 million.
For full fiscal year 2026 Revenue. We now expect to exit the year at the high end of the previously announced range.
All in all and consistent with what you've heard from us in the past. Our primary focus remains on growing our Top Line while operating efficiency and with discipline
Supported by a strong balance sheet and improving cash flow profile.
That subscription Revenue to be in the range of 142.2 to 142.7 million.
I will now wrap up and discuss our guidance.
Total revenue to be in the range of 148 to 148.5 million.
Karine Hamel: As a result, Q4 SaaS subscription revenue will now consist solely of Coveo's core platform revenue. I would also like to remind everyone that we recognize revenue on a daily basis. Q4 includes 2 fewer calendar days than Q3, which impacts sequential revenue comparison by approximately $0.8 million. With that context, for Q4 fiscal 2026, we expect SaaS subscription revenue to be in the range of $35.6 to 36.1 million. Total revenue to be in the range of $37.1 to 37.6 million. For full fiscal year 2026 revenue, we now expect to exit the year at the high end of the previously announced range. SaaS subscription revenue to be in the range of $142.2 to 142.7 million. Total revenue to be in the range of $148 to 148.5 million.
As a result, Q4 SaaS subscription revenue will now consist solely of Coveo's core platform revenue. I would also like to remind everyone that we recognize revenue on a daily basis. Q4 includes 2 fewer calendar days than Q3, which impacts sequential revenue comparison by approximately $0.8 million. With that context, for Q4 fiscal 2026, we expect SaaS subscription revenue to be in the range of $35.6 to 36.1 million. Total revenue to be in the range of $37.1 to 37.6 million. For full fiscal year 2026 revenue, we now expect to exit the year at the high end of the previously announced range. SaaS subscription revenue to be in the range of $142.2 to 142.7 million. Total revenue to be in the range of $148 to 148.5 million.
Our revenue guidance reflects the now-completed end of life of the Qubit platform.
Consistent with our, prior commitments, for Q4 and the full fiscal year 2026, we continue to expect at just a debit to be approximately break, even and to deliver positive operating cash flows. For the fiscal year.
I would also like to remind everyone that we recognize revenue on a daily basis.
In closing, I will end where I started.
Q4 includes 2 fewer calendar days than Q3, which impacts sequential revenue comparison by approximately $0.8 million.
Q3 was a strong quarter with solid and efficient execution record booking and results that validate our growth strategy.
While we remain focused on discipline and execution, we are encouraged by the momentum, we are seeing across the business.
With that context, for Q4 fiscal 2026, we expect FaaS subscription revenue to be in the range of $35.6 to $36.1 million.
With that operator, you may now open the line for questions.
Total revenue to be in the range of 37.1 to 37.6 million.
For full fiscal year 2026 revenue, we now expect to exit the year at the high end of the previously announced range.
That subscription revenue to be in the range of $142.2 to $142.7 million.
Thank you, ladies and gentlemen, we will now begin the question and answer session. Should you have a question please? Press star. Followed by the 1 on your telephone keypad and should you wish to cancel your request? Please press star followed by the 2 if you're using a speaker-phone, please? Lift the handset. Before pressing any Keys 1 moment, please for your first question.
Total revenue to be in the range of $148 to $148.5 million.
Karine Hamel: Consistent with our prior commitments for Q4 and the full fiscal year 2026, we continue to expect Adjusted EBITDA to be approximately break even and to deliver positive operating cash flows for the fiscal year. In closing, I will end where I started. Q3 was a strong quarter with solid and efficient execution, record bookings, and results that validate our growth strategy. While we remain focused on disciplined execution, we are encouraged by the momentum we are seeing across the business. With that, operator, you may now open the line for questions.
Consistent with our prior commitments for Q4 and the full fiscal year 2026, we continue to expect Adjusted EBITDA to be approximately break even and to deliver positive operating cash flows for the fiscal year. In closing, I will end where I started. Q3 was a strong quarter with solid and efficient execution, record bookings, and results that validate our growth strategy. While we remain focused on disciplined execution, we are encouraged by the momentum we are seeing across the business. With that, operator, you may now open the line for questions.
And your first question comes from the line of David Quinn, from TD Cohen, please go ahead.
Consistent with our prior commitments, for Q4 and the full fiscal year 2026, we continue to expect adjusted EBITDA to be approximately break even, and to deliver positive operating cash flows for the fiscal year.
In closing, I will end where I started.
Q3 was a strong quarter with solid and efficient execution, record bookings, and results that validate our growth strategy.
Good afternoon. Uh, congratulations on on a great quarter and in case I forget uh good luck Brandon, um I wanted to to dig into kind of maybe look into the bigger picture. You mentioned seeing strength across your primary solution areas which I assume kind of is Commerce service and crga. I was wondering though, are you also seeing strength across the customer base or is there maybe some pockets in terms of end markets, where demand might be a bit softer?
While we remain focused on discipline and execution, we are encouraged by the momentum we are seeing across the business.
With that operator, you may now open the line for questions.
Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the one on your telephone keypad, and should you wish to cancel your request, please press star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. And your first question comes from the line of David Kwan from TD Cowen. Please go ahead.
Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the one on your telephone keypad, and should you wish to cancel your request, please press star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. And your first question comes from the line of David Kwan from TD Cowen. Please go ahead.
Thank you, ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by 1 on your telephone keypad. Should you wish to cancel your request, please press star followed by 2. If you're using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question.
And your first question comes from the line of David Quinn from TD Cohen. Please go ahead.
David Kwan: ... Good afternoon. Congratulations on a great quarter, and in case I forget, good luck, Brandon. I wanted to dig into kind of maybe look in the bigger picture. You mentioned seeing strength across your primary solution areas, which I assume kind of is commerce, service, and CRGA. I was wondering, though, are you also seeing strength across the customer base, or is there maybe some pockets in terms of end markets where demand might be a bit softer?
David Kwan: ... Good afternoon. Congratulations on a great quarter, and in case I forget, good luck, Brandon. I wanted to dig into kind of maybe look in the bigger picture. You mentioned seeing strength across your primary solution areas, which I assume kind of is commerce, service, and CRGA. I was wondering, though, are you also seeing strength across the customer base, or is there maybe some pockets in terms of end markets where demand might be a bit softer?
And Karen mentioned during the prepared remarks are near on the top, 20 customers of 150%. Um, these customers are seeing us as a strategic platform and, uh, and they're expending substantially with coo, but doesn't stop at those 20 customers obviously. And we are seeing a market dynamics here where, um, with the interoperability that we're building and uh, the the requirements and the interests of customers that connecting coo with their genetic AI Frameworks that they are deploying coo is uniquely positioned to, um, to cover the ground.
Good afternoon. Uh, congratulations on a great quarter and, in case I forget, uh, good luck Brandon. Um, I wanted to dig into, kind of, maybe look into the bigger picture. You mentioned seeing strength across your primary solution areas, which I assume kind of is Commerce, Service, and CRGA. I was wondering though, are you also seeing strength across the customer base, or is there maybe some pockets in terms of end markets where demand might be a bit softer?
Laurent Simoneau: Yeah, sure. Good afternoon, David. This is Laurent here. So look, we're seeing a lot of strength with our large customers. And Karine mentioned during the prepared remarks, our NER on the top 20 customers of 150%. These customers are seeing us as a strategic platform, and they're expanding substantially with Coveo, but it doesn't stop at those 20 customers, obviously. And we are seeing a market dynamics here, where, with the interoperability that we're building and the requirements and the interests of customers at connecting Coveo with their agentic AI frameworks that they are deploying, Coveo is uniquely positioned to cover the ground, these agentic AI frameworks with the enterprise, the enterprise-secured platform in a very relevant way.
Laurent Simoneau: Yeah, sure. Good afternoon, David. This is Laurent here. So look, we're seeing a lot of strength with our large customers. And Karine mentioned during the prepared remarks, our NER on the top 20 customers of 150%. These customers are seeing us as a strategic platform, and they're expanding substantially with Coveo, but it doesn't stop at those 20 customers, obviously. And we are seeing a market dynamics here, where, with the interoperability that we're building and the requirements and the interests of customers at connecting Coveo with their agentic AI frameworks that they are deploying, Coveo is uniquely positioned to cover the ground, these agentic AI frameworks with the enterprise, the enterprise-secured platform in a very relevant way.
These genetic AI Frameworks with the Enterprise, the Enterprise secured platform, a very relevant way. So, uh, we are, uh, yeah, we're becoming critical for these, uh, for these large customers David.
It's a tough thing tomorrow and when you look at the the new customer wins that you've uh you've had obviously you highlighted that the large industrial uh customer Fortune 5 500. Um in terms of the solutions that are driving those wins is is it really still primarily on the Commerce side and and crga? Or are you seeing also on on the services side of the knowledge side?
It's, uh, it's across the board. So, uh, B2B Commerce, b2c Commerce, uh, and uh, knowledge Solutions. All fueled with crga in with, uh, Jenny ien Tech, uh, gentic capabilities. So,
Yes, sure. Um, good afternoon David. This is lauron here. So look, we're seeing, uh, we're seeing seeing a lot of strength with, uh, with our large customers and Karen mentioned during the prepared remarks or ner on the top, 20 customers of 150%. Um, these customers are seeing us as a strategic platform and, uh, and they're expending substantially with coveo, but doesn't stop at those 20 customers obviously. And we are seeing a market dynamics here where, um, with the interoperability that we're building and uh, the the requirements and the interests of customers that connecting coo with their genetic AI Frameworks that they are deploying coo is uniquely positioned to, um, to cover the ground.
Laurent Simoneau: So, yeah, we're becoming critical for these large customers, David.
So, yeah, we're becoming critical for these large customers, David.
These genetic AI frameworks with the enterprise, the enterprise-secured platform—a very relevant way. So, uh, we are, uh, yeah, we're becoming critical for these, uh, for these large customers, David.
David Kwan: That's helpful. Thanks, Laurent. In when you look at the new customer wins that you've had, obviously, you highlighted that the large industrial customer, Fortune 500. In terms of the solutions that are driving those wins, is it really still primarily on the commerce side and RGA, or are you seeing also on the services side and the knowledge side?
David Kwan: That's helpful. Thanks, Laurent. In when you look at the new customer wins that you've had, obviously, you highlighted that the large industrial customer, Fortune 500. In terms of the solutions that are driving those wins, is it really still primarily on the commerce side and RGA, or are you seeing also on the services side and the knowledge side?
What is uh what is super interesting? This quarter what we're seeing is uh we we're not only fueling user experience as making user experience as better. We're also making genetic Frameworks better which is uh which is something that we were expecting in the past and now that we are seeing picking up this quarter
Thank you. And your next question comes from the line of Stannis mop from BMO Capital markets. Please go ahead.
Laurent Simoneau: It's, it's across the board. So, B2B commerce, B2C commerce, and knowledge solutions, all fueled with RAG and with GenAI, Agentic, Agentic capabilities. So what is, what is super interesting this quarter, what we're seeing is, we, we're not only fueling user experiences and making user experiences better, we're also making Agentic frameworks better, which is, which is something that we were expecting in the past and now that we are seeing picking up this quarter.
Laurent Simoneau: It's, it's across the board. So, B2B commerce, B2C commerce, and knowledge solutions, all fueled with RAG and with GenAI, Agentic, Agentic capabilities. So what is, what is super interesting this quarter, what we're seeing is, we, we're not only fueling user experiences and making user experiences better, we're also making Agentic frameworks better, which is, which is something that we were expecting in the past and now that we are seeing picking up this quarter.
It's it's helpful, thanks Laurel. And when you look at the, the new customer wins that you've uh you've had obviously you highlighted that the large industrial uh customer Fortune 5 500. Um in terms of the solutions that are driving those wins is is it really still primarily on the Commerce side and crga or are you seeing also on the surface? It's on the knowledge side.
Hi, good afternoon. Um, can you comment on um, a argument that quarter broadly if that was similar, um, to the park border and and you have to connect in that regard and then as you look at your pipeline, um,
Whether you would expect that to to accelerate in the coming quarters, whether it kind of remains a consistent level and any color on that front would be helpful.
It's, uh, it's across the board. So, uh, B2B Commerce, B2C Commerce, uh, and, uh, Knowledge Solutions, all fueled, uh, with CRGA in, with, uh, genAI, genic, agentic capabilities. So,
Your question. Hey, Thanos. Uh, good, good? Good to talk to you. Your questions specifically is with as it relates to the, the pipeline or the growth. Yeah, specifically just uh, ARR growth in in the quarter and um, kind of the trajectory that you're seeing in that regards based on your commentary.
Making genetic frameworks better, which is, uh, which is something that we were expecting in the past. And now that we are seeing it picking up this quarter.
Operator: Thank you. And your next question comes from the line of Thanos Moschopoulos from BMO Capital Markets. Please go ahead.
Operator: Thank you. And your next question comes from the line of Thanos Moschopoulos from BMO Capital Markets. Please go ahead.
Thanos Moschopoulos: Hi, good afternoon. Can you comment on ARR growth in the quarter broadly, if that was similar to the prior quarter and, and the uptick in that regard? And then as you look at your pipeline, whether you would expect that to, to accelerate in the coming quarters, whether it kind of remains at a consistent level, and any color on that front would be helpful.
Thanos Moschopoulos: Hi, good afternoon. Can you comment on ARR growth in the quarter broadly, if that was similar to the prior quarter and, and the uptick in that regard? And then as you look at your pipeline, whether you would expect that to, to accelerate in the coming quarters, whether it kind of remains at a consistent level, and any color on that front would be helpful.
Thank you. And your next question comes from the line of Stannis Mops from BMO Capital Markets. Please go ahead.
So good evening, D here. Um, as you've heard on the prepared, remark, uh, I believe, I mentioned that our growth for Q3 was roughly in line with SAS subscription, Revenue growth of 18%. And remember, we have a 3% headwind from last quarter, a renegotiated contract that we've heard from us.
Now, when you look at the guidance for Q4, uh, I think you can drive a similar pattern in terms of uh, of growth there. Does that answer your question?
It does, I apologize. I I missed that. We're not, we're not, we're not guiding. Uh, we're not guiding 27 yet. As you know, right?
Hi, good afternoon. Um, can you comment on, um, our algorithm this quarter broadly—if that was similar, um, to the park border, and, and you have to connect in that regard? And then as you look at your pipeline, um, whether you would expect that to accelerate in the coming quarters, whether it kind of remains at a consistent level, and any color on that front would be helpful.
Laurent Simoneau: Your question? Hey, Thanos, good to talk to you. Your question specifically is with respect to the pipeline or the growth?
Laurent Simoneau: Your question? Hey, Thanos, good to talk to you. Your question specifically is with respect to the pipeline or the growth?
Thanos Moschopoulos: Yeah, specifically just ARR growth in the quarter and kind of the trajectory that you're seeing in that regard, based on your commentary?
Thanos Moschopoulos: Yeah, specifically just ARR growth in the quarter and kind of the trajectory that you're seeing in that regard, based on your commentary?
No, I understand. Um, and then, um, regarding sap, who's obviously, you know, I heard you talk about, um, relationship there on the Commerce side, um, your sap service Cloud relationship or, you know, has been kind of more recent. Um, how's the pipeline building on the service, Cloud side of the CB
Yeah. What's What's um what's really interesting um tainos with uh the sap endorse relationship?
Your question specific. Hey, Thanos, good good, good? Good to talk to you. Your questions specifically is with as it relates to the, the pipeline or the growth. Yeah, specifically just, uh, ARR growth in in the quarter and um, kind of the the trajectory that you're seeing in that regards based on your commentary.
Karine Hamel: So, good evening, Thanos. It's Karine here. As you've heard on the prepared remark, I believe I mentioned that AR growth for Q3 was roughly in line with SaaS subscription revenue growth of 18%. And remember, we have a 3% headwind from last quarter, renegoti- not renegotiated contract that you heard from us. Now, when you look at the guidance for Q4, I think you can drive similar patterns in terms of of growth there. Does that answer your question?
Karine Hamel: So, good evening, Thanos. It's Karine here. As you've heard on the prepared remark, I believe I mentioned that AR growth for Q3 was roughly in line with SaaS subscription revenue growth of 18%. And remember, we have a 3% headwind from last quarter, renegoti- not renegotiated contract that you heard from us. Now, when you look at the guidance for Q4, I think you can drive similar patterns in terms of of growth there. Does that answer your question?
Is, uh, is that increasingly as as the co platform broadens? Um, we become more and more relevant to, um, the the broad sector that we described, which we call Industrials, where sap truly dominates
um, increasingly companies don't look at
So, good evening can also get in here. Um, as you've heard on the prepared remarks, uh, I believe I mentioned that our growth for Q3 was roughly in line with that subscription revenue growth of 18%. And remember, we have a 3% headwind from last quarter, a reoccurring cost not been negotiated contract that you've heard from us.
Thanos Moschopoulos: It does. I apologize. I missed that in your-
Thanos Moschopoulos: It does. I apologize. I missed that in your-
Now, when you look at the guidance for Q4, I think you can drive similar patterns in terms of growth there. Does that answer your question?
Laurent Simoneau: We're not guiding 27 yet, as you know, right?
Laurent Simoneau: We're not guiding 27 yet, as you know, right?
Thanos Moschopoulos: No, I understand. And then, regarding SAP, we've obviously, you know, heard you talk about your relationship there on the commerce side. Your SAP Service Cloud relationship, or, you know, has been kind of more recent. How's the pipeline building on the service cloud side with SAP?
Thanos Moschopoulos: No, I understand. And then, regarding SAP, we've obviously, you know, heard you talk about your relationship there on the commerce side. Your SAP Service Cloud relationship, or, you know, has been kind of more recent. How's the pipeline building on the service cloud side with SAP?
It does. I apologize. I missed that. We're not, we're not, we're not guiding—uh, we're not guiding 2027 yet. That's, you know, right?
Laurent Simoneau: Yeah. What's really interesting, Thanos, with the SAP endorsed relationship is that increasingly as the Coveo platform broadens, we become more and more relevant to the broad sector that we describe, which we call industrials, where SAP truly dominates. Increasingly, companies don't look at commerce and service in silos. You know, they look at the holistic picture. You know, let's say you're an aircraft manufacturer; your goal is to be extremely effective when there's an aircraft on ground, to put their aircraft, that aircraft back in the air, for example.
Laurent Simoneau: Yeah. What's really interesting, Thanos, with the SAP endorsed relationship is that increasingly as the Coveo platform broadens, we become more and more relevant to the broad sector that we describe, which we call industrials, where SAP truly dominates. Increasingly, companies don't look at commerce and service in silos. You know, they look at the holistic picture. You know, let's say you're an aircraft manufacturer; your goal is to be extremely effective when there's an aircraft on ground, to put their aircraft, that aircraft back in the air, for example.
No, I understand. Um, and then, um, regarding SCP—was obviously, you know, heard you talk about, um, relationship there on the Commerce side—um, your SCP Service Cloud relationship or, you know, has been kind of more recent. Um, how's the pipeline building on the Service Cloud side of the CB?
the convergence of, uh, of Commerce and knowledge, you know, the the ability to understand with AI Parts, availability substitutes, but also diagnosis, um, you know, recommended Solutions, um, Etc to serve
Yeah. What's—what's, um, really interesting, um, to note is with the SAP-endorsed relationship.
Is uh, is is that increasingly? As as the co platform broadens? Um, we become more and more relevant to, um, the the broad sector that we described, which we call Industrials, where sap truly dominates
Um, increasingly, companies don't look at
Laurent Simoneau: So we're seeing really the convergence of commerce and knowledge, you know, the ability to understand with AI parts availability, substitutes, but also diagnosis, you know, recommended solutions, et cetera, to serve everything from, you know, engineers, to self-service, to end product, to field service.
So we're seeing really the convergence of commerce and knowledge, you know, the ability to understand with AI parts availability, substitutes, but also diagnosis, you know, recommended solutions, et cetera, to serve everything from, you know, engineers, to self-service, to end product, to field service.
Everything from, you know, Engineers to self-service to end product to field service and commerce. And so, this is increasingly what we're seeing and frankly, what we're quite, uh, what we're quite excited about and that drives, you know, higher value, uh, bigger bigger deals, uh, ultimately we announced in the quarter that we had landed, um, you know, the biggest, um, the biggest land ever and that's, that's 1 of the 1 of those examples in in industrial. And so this is where the Synergy with sap, really lives. Um, so, you know, a lot of words here, maybe, but the, the direct answer to your question is we continue to do extremely well in B2B Commerce because, uh, in in these e-commerce with large Enterprises because this is where sap dominates
Commerce and service in silos. Uh, you know, they look at the holistic picture, you know. Uh, let's say you're an aircraft manufacturer. Your goal is to, you know, um, be extremely effective when there is an aircraft on ground to put that aircraft back in the air, for example. And so, so we're seeing really the convergence of, uh, of commerce and knowledge. You know, the
To understand with AI parts, availability, substitutes, but also diagnosis, you know, recommended solutions, etc., to serve.
At sap dominates, really the Enterprise, uh, Commerce Market. Um, but really really, um, expanding with uh, with customer service and, uh, and more broadly, knowledge Solutions, AI powered, Diagnostic, and things, things of that nature. And as I said, you know, this drives high value because we're in the economics of of time here on those equipments and, um,
Louis Têtu: ... and commerce. And so this is increasingly what we're seeing, and frankly, what we're quite excited about. And that drives, you know, higher value, bigger, bigger deals. Ultimately, we announced in the quarter that we had landed, you know, the biggest land ever, and that's one of those examples in industrial. And so this is where the synergy with SAP really lives. So, you know, a lot of words here maybe, but the direct answer to your question is, we continue to do extremely well in B2B commerce because, in B2C commerce with large enterprises, because this is where SAP dominates. SAP dominates really the enterprise commerce market.
Louis Têtu: ... and commerce. And so this is increasingly what we're seeing, and frankly, what we're quite excited about. And that drives, you know, higher value, bigger, bigger deals. Ultimately, we announced in the quarter that we had landed, you know, the biggest land ever, and that's one of those examples in industrial. And so this is where the synergy with SAP really lives. So, you know, a lot of words here maybe, but the direct answer to your question is, we continue to do extremely well in B2B commerce because, in B2C commerce with large enterprises, because this is where SAP dominates. SAP dominates really the enterprise commerce market.
That's those are significant dollars in Roi. So I hope that puts some uh some perspective on the on your question.
Thank you. Once again that is star and want to ask a question. I would like to advise everyone to have a limit of 1 question and 1 follow-up. If anyone have any additional question you can put yourself back in the queue by pressing star 1 and your next question comes from the line of Taylor McInnis from UBS Company. Please go ahead.
Everything from, you know, Engineers to self-service to end product to field service and commerce. And so, this is increasingly what we're seeing and frankly, what we're quite, uh, what we're quite excited about and that drives, you know, higher value. Um, bigger bigger deals, uh, ultimately we announced in the quarter that we had landed. Um, you know, the biggest, um, the biggest land ever and that's, that's 1 of the 1 of those examples in in industrial. And so this is where the Synergy with sap, really lives. Um, so you know, a lot of words here, maybe, but the, the direct answer to your question is we continue to extremely well in B2B Commerce because uh, in in these e-commerce with large Enterprises because this is where sap dominates
Louis Têtu: But really, really, expanding with with customer service and and more broadly, knowledge solutions, AI-powered diagnostics and things of that nature. And as I said, you know, this drives high value because we're in the economics of uptime here on those equipments. And that's, those are significant dollars in ROI. So I hope that puts some perspective on your question.
But really, really, expanding with with customer service and and more broadly, knowledge solutions, AI-powered diagnostics and things of that nature. And as I said, you know, this drives high value because we're in the economics of uptime here on those equipments. And that's, those are significant dollars in ROI. So I hope that puts some perspective on your question.
Yeah. Hi thanks so much. Um, for for taking my questions just to build on the the last our question. Could you give us a little bit more color on maybe what the normalized, new net, new bookings growth or net new. Our growth was this past quarter. So if we're going to adjust for qubit and then renegotiate it negotiated a contract and maybe you know how that compares to um prior trends.
And then it's just a second uh part to that question. Um when you strip out you know the 7 figure deal within that, I'm curious how bookings momentum was broadly across the base.
At sap dominates, really the Enterprise, uh, Commerce Market. Um, but really really, um, expanding with uh, with customer service and, uh, and more broadly, knowledge Solutions, AI powered, Diagnostic, and things, things of that nature. And as I said, you know, this drives high value because we're in the economics of of time here on those equipments and, um,
Those are significant dollars in ROI.
So, I hope that puts some, uh, some perspective on your question.
Operator: Thank you once again. That is star and one to ask a question. I would like to advise everyone to have a limit of one question and one follow-up. If anyone have any additional question, you can put yourself back in the queue by pressing star one. And your next question comes from the line of Taylor McGinnis from UBS. Please go ahead.
Operator: Thank you once again. That is star and one to ask a question. I would like to advise everyone to have a limit of one question and one follow-up. If anyone have any additional question, you can put yourself back in the queue by pressing star one. And your next question comes from the line of Taylor McGinnis from UBS. Please go ahead.
Yes. Uh, thanks Taylor for your questions. So maybe. Um, what I would like to add here to give you some color on 23. Uh, we're really pleased with the breath of the transactions. We've seen? Yes, we have highlighted this this large, um, 7 digit, uh, deal for us, which was a good 1. But, you know, it's not, it's not the only 1 that made a good quarter. So when you
Thank you. Once again, that is star. I want to ask a question. I would like to advise everyone to have a limit of one question and one follow-up. If anyone has an additional question, you can put yourself back in the queue by pressing star one. Your next question comes from the line of Taylor McInnis from UBS Company. Please go ahead.
Taylor McGinnis: Yeah, hi. Thanks so much for taking my questions. Just to build on the last ARR question, could you give us a little bit more color on maybe what the normalized net new bookings growth or net new ARR growth was this past quarter? So if we're gonna adjust for Qubit and the renegotiated contract, and maybe, you know, how that compares to prior trends. And then it's just a second part to that question. When you strip out, you know, the seven-figure deal within that, I'm curious how bookings momentum was broadly across the base.
Taylor McGinnis: Yeah, hi. Thanks so much for taking my questions. Just to build on the last ARR question, could you give us a little bit more color on maybe what the normalized net new bookings growth or net new ARR growth was this past quarter? So if we're gonna adjust for Qubit and the renegotiated contract, and maybe, you know, how that compares to prior trends. And then it's just a second part to that question. When you strip out, you know, the seven-figure deal within that, I'm curious how bookings momentum was broadly across the base.
We look at both from a land from an expand perspective size of transactions names that we have added to our, you know, um, expanding list of customers. Uh, we're really proud to all of that going into the right direction. So I don't think there is any normalization necessary uh with regards to q3's result. Um it was a good quarter. Remember that compares to a strong quarter last year same timing as well.
Yeah. Hi thanks so much. Um, for for taking my questions just to build on the the last our question. Could you give us a little bit more color on maybe what the normalized, new net, new bookings growth or net new. Our growth was this past quarter. So if we're going to adjust for qubit and then renegotiate it negotiated contract and maybe you know how that compares to um prior trends.
Karine Hamel: Yes. Thanks, Taylor, for your question. So maybe, what I would like to add here, to give you some color on Q3, we're really pleased with the breadth of the transactions we've seen. Yes, we have highlighted this, this large, seven-digit, deal for us, which was a, a good one, but, you know, it's not, it's not the only one that made a good quarter. So when we look at both from a land, from an expand perspective, size of transactions, names that we have added to our, you know, expanding list of customers, we're really proud to all of that going into the right direction. So I don't think there is any normalization necessary, with regards to Q3's result. It was a good quarter. Remember, that compares to a strong quarter last year, same timing as well.
Karine Hamel: Yes. Thanks, Taylor, for your question. So maybe, what I would like to add here, to give you some color on Q3, we're really pleased with the breadth of the transactions we've seen. Yes, we have highlighted this, this large, seven-digit, deal for us, which was a, a good one, but, you know, it's not, it's not the only one that made a good quarter. So when we look at both from a land, from an expand perspective, size of transactions, names that we have added to our, you know, expanding list of customers, we're really proud to all of that going into the right direction. So I don't think there is any normalization necessary, with regards to Q3's result. It was a good quarter. Remember, that compares to a strong quarter last year, same timing as well.
And then it's just a second, uh, part to that question. Um, when you strip out, you know, the seven-figure deal within that, I'm curious how bookings momentum was broadly across the base.
What I want to add as well as when we think about Q4 a couple of things, as you said, um, qubit no more further Revenue expecting from that. And when you think at the core platform, uh, we got to remember that, you know, we're recognizing revenue on a daily basis and that of course, will impact sequential revenue for Q4. And then I want to mention as well that, you know, we have great opportunities ahead of us. We are very pleased to what we've seen in Q3 and when we look um in terms of Pipeline and Etc uh we're excited for what is in front of us. However, you know, we we can't get ahead of ourselves and execution is key here. So I hope that addresses your questions there.
Karine Hamel: What I wanna add as well is, when you think about Q4, couple of things, as you said, Qubit, no more further revenue expecting from that. And when you think of the core platform, we've got to remember that, you know, we're recognizing revenue on a daily basis, and that, of course, will impact sequential revenue for Q4. And then I want to mention as well that, you know, we have great opportunities ahead of us. We are very pleased to what we've seen in Q3, and when we look in terms of pipeline and et cetera, we're excited for what is in front of us. However, you know, we, we can't get ahead of ourselves and execution is key here. So I hope it addresses your questions, Taylor.
What I wanna add as well is, when you think about Q4, couple of things, as you said, Qubit, no more further revenue expecting from that. And when you think of the core platform, we've got to remember that, you know, we're recognizing revenue on a daily basis, and that, of course, will impact sequential revenue for Q4. And then I want to mention as well that, you know, we have great opportunities ahead of us. We are very pleased to what we've seen in Q3, and when we look in terms of pipeline and et cetera, we're excited for what is in front of us. However, you know, we, we can't get ahead of ourselves and execution is key here. So I hope it addresses your questions, Taylor.
Yes. Uh, thanks, David, for your question. So maybe, um, what I would like to add here, to give you some color on June 3: uh, we're really pleased with the breadth of the transactions we've seen. Yes, we have highlighted this large, um, seven-digit, uh, deal for us, which was a good one. But, you know, it's not the only one that made a good quarter. So when we look at both from a land, from an expense perspective, size of transactions, names that we have added to our, you know, um, expanding list of customers, uh, we're really proud of all of that going into the right direction. So I don't think there is any normalization necessary, uh, with regards to Q3's result. Um, it was a good quarter. Remember that compares to a strong quarter last year, same timing as well.
Yeah, thanks so much. And then, um, just lasts 1 for me. If I look at the implied guide for 4 q for subscription Revenue, it looked like it came down a little bit, so it sounds like you're seeing a lot of really good, you know, momentum in the business. So could you just help us you know, square that maybe with a slightly lower guide and what you guys are? You know seeing at the start of for Q particularly on the back of some of these AI announcements.
So, uh, we have a lot of opportunities ahead of us.
What I want to add as well is, when we think about Q4, a couple of things. As you said, Qubit—no more further revenue expected from that. And when you think about the core platform, we’ve got to remember that, you know, we’re recognizing revenue on a daily basis, and that, of course, will impact sequential revenue for Q4. And then I want to mention as well that, you know,
We have great opportunities.
Thank you. And your next question comes from the line of Paul River from RBC Capital markets. Please go ahead.
Um thanks very much and good afternoon. Just a a question on the the the the business momentum. Um I mean if you put aside um the the the the large customer um um
We are very pleased with what we've seen in Q3, and when we look, um, in terms of pipeline and etc., uh, we're excited for what is in front of us. However, you know, we can't get ahead of ourselves, and execution is key here. So I hope that addresses your questions there.
Taylor McGinnis: Yeah, thanks so much. Then, just last one for me. If I look at the implied guide for Q4 for subscription revenue, it looked like it came down a little bit. So it sounds like you're seeing a lot of really good, you know, momentum in the business. So could you just help us, you know, square that maybe with a slightly lower guide and what you guys are, you know, seeing at the start of Q4, particularly on the back of some of these AI announcements?
Taylor McGinnis: Yeah, thanks so much. Then, just last one for me. If I look at the implied guide for Q4 for subscription revenue, it looked like it came down a little bit. So it sounds like you're seeing a lot of really good, you know, momentum in the business. So could you just help us, you know, square that maybe with a slightly lower guide and what you guys are, you know, seeing at the start of Q4, particularly on the back of some of these AI announcements?
turning off the, you know, new business bookings have been strong for a couple quarters. Now, you know, when you look at it, fundamentally like what's changed? A lot of the last couple quarters is it is it more external factors like customer Readiness? Um, or is it internal factors like, sales execution. That's allowing you to better capture or convert the the deals in the pipeline.
Yeah, thanks so much. And then, um, just last one for me. If I look at the implied guide for Q4 for subscription revenue, it looked like it came down a little bit, so it sounds like you're seeing a lot of really good, you know, momentum in the business. So could you just help us, you know, square that maybe with a slightly lower guide and what you guys are, you know, seeing at the start of Q4, particularly on the back of some of these AI announcements?
Karine Hamel: Yes, of course. I mean, as I said, we're pleased with what we're seeing. We just don't want to get too much ahead of ourselves here. Dynamic markets, we're getting good signals, we're grounded on execution, and, you know, we have a lot of opportunities ahead of us.
Karine Hamel: Yes, of course. I mean, as I said, we're pleased with what we're seeing. We just don't want to get too much ahead of ourselves here. Dynamic markets, we're getting good signals, we're grounded on execution, and, you know, we have a lot of opportunities ahead of us.
It's it's it's both and I'll add a third 1. It's, uh, it's also the, uh, the evolution of our platform and positioning. So first of all, um,
I bought. Thanks for the question. And so, as we said in the prepared remarks, clearly clearly we're selling to a much more um, educated Market
Yes, of course. I mean, as I said, we're pleased with what we're seeing. Uh, we just don't want to get too much ahead of ourselves here. Uh, dynamic markets. We're getting good signals. We're rounded in execution. And, uh, you know, uh, we have a lot of opportunities ahead of us.
Operator: Thank you. And your next question comes from the line of Paul Treiber from RBC Capital Markets. Please go ahead.
Operator: Thank you. And your next question comes from the line of Paul Treiber from RBC Capital Markets. Please go ahead.
Thank you. And your next question comes from the line of October from RBC Capital Markets. Please go ahead.
um, there there's no question, there's a huge difference, you know, from a year ago where, you know, people were still experimenting, uh, lots of hype, um, you know,
Louis Têtu: Thanks very much, and good afternoon. Just a question on the business momentum. I mean, if you put aside the large customer turning off the, you know, new business bookings have been strong for a couple of quarters now. You know, when you look at it fundamentally, like what's changed in the last couple of quarters? Is it more external factors like customer readiness, or is it internal factors like sales execution that's allowing you to better capture or convert the deals in the pipeline? It's both, and I'll add a third one. It's also the evolution of our platform and positioning. So first of all, hi, Paul, thanks for the question.
Paul Treiber: Thanks very much, and good afternoon. Just a question on the business momentum. I mean, if you put aside the large customer turning off the, you know, new business bookings have been strong for a couple of quarters now. You know, when you look at it fundamentally, like what's changed in the last couple of quarters? Is it more external factors like customer readiness, or is it internal factors like sales execution that's allowing you to better capture or convert the deals in the pipeline? It's both, and I'll add a third one. It's also the evolution of our platform and positioning. So first of all, hi, Paul, thanks for the question.
Some successes with lots of failures. So customers come to us with a much clearer understanding of the stack,
Uh, thanks so much and good afternoon. Just a a question on the the the the business momentum. Um I mean if you put aside um, the the the the large customer um, um
Turning off the in a new business spoken has been strong for a couple quarters. Now, you know, when you look at it, fundamentally like what's change of the last couple quarters is it is it more external factors like customer Readiness? Um, or is it internal factors like, sales execution. That's allowing you to better capture or convert the the deals in the pipeline.
It's, it's, it's both, and I'll add a third one. It's, uh, it's also the, uh, the evolution of our platform and positioning. So first of all, um,
Louis Têtu: As we said in the prepared remarks, clearly, we're selling to a much more educated market. There's no question there's a huge difference, you know, from a year ago where, you know, people were still experimenting, lots of hype, you know, frankly, some successes, but lots of failures. So customers come to us with a much clearer understanding of the stack and hence, a much greater appreciation for what we do. So that makes, you know, much better sales conversations. You know, number two is really the expansion of the platform. The platform is becoming really, you know, Laurent talked about RAG as a service, MCP servers, supporting agentic, and so on.
Louis Têtu: As we said in the prepared remarks, clearly, we're selling to a much more educated market. There's no question there's a huge difference, you know, from a year ago where, you know, people were still experimenting, lots of hype, you know, frankly, some successes, but lots of failures. So customers come to us with a much clearer understanding of the stack and hence, a much greater appreciation for what we do. So that makes, you know, much better sales conversations. You know, number two is really the expansion of the platform. The platform is becoming really, you know, Laurent talked about RAG as a service, MCP servers, supporting agentic, and so on.
Hi Paul. Uh, thanks for the question. And so, as we said in the prepared remarks, clearly, clearly we're selling to a much more, um, educated market.
And, and, and, and, and, and so much greater appreciation for what we do. So that that makes you know, much better sales conversations. Uh, you know, number 2 is, uh, is really the, uh, the, uh, the expansion of the platform. The platform is becoming, uh, really, you know, lorant talked about rag as a service NCP, service supporting agent tick and so on the flexibility of the coil platform to adapt to any data, any llm, any app, and any agent, uh, is starting to be recognized, and, um, and, uh, and, and highly valuable, to, to these customers. So that's really what's you? What's, you know, driving? Um, here, the the difference, and yes, there is a difference in in Market Dynamic overall. And, uh, and and we're seeing, you know, a positive trend here,
Um, there's—there's no question. There's a huge difference, you know, from a year ago where, you know, people were still experimenting, uh, lots of hype, um, you know, frankly some successes but lots of failures. So, customers come to us with a much clearer understanding of the stack.
It is a follow-up to son, can you speak to the pipeline for, you know, rag as a service? And then mCP like is that um, is that a separate pipeline? Is it? Is it part of the, the the, the current, um, Pipeline and do you see the nature of customers that you're that's in that pipeline different, um, um, than than, than maybe your your core product?
Louis Têtu: The flexibility of the Coveo platform to adapt to any data, any LLM, any app, and any agent is starting to be recognized and highly valuable to these customers. So that's really what's, you know, driving here, the difference. And yes, there is a difference in market dynamic overall, and we're seeing, you know, a positive trend here.
The flexibility of the Coveo platform to adapt to any data, any LLM, any app, and any agent is starting to be recognized and highly valuable to these customers. So that's really what's, you know, driving here, the difference. And yes, there is a difference in market dynamic overall, and we're seeing, you know, a positive trend here.
and any
Well, the the pipeline is made up of uh of uh, 2 2, uh, 2 main areas, right? I mean, the, uh, what we call land and expand so Landing new customers and, uh, and then expanding, you know, the, uh, the existing 1, um, that pipeline is, uh, would qualify as, uh, as very healthy, uh, for the reasons I've explained before, uh, you know, the, the, um, you know, recognition of the, I'll use the term necessity of of, of of the, the stack that we provide to inherently, as we said, you know, AI models, do not understand your data, do not understand corporate data.
Agent, uh, is starting to be recognized and, um, and uh, and, and highly valuable, to, to these customers. So that's really what's you? What's, you know, driving? Um, here, the the difference, and yes, there is a difference in in Market Dynamic overall. And, uh, and and we're seeing, you know, a positive trend here,
Paul Treiber: Just a follow-up. Just on the pipeline for, you know, RAG as a service and then MCP? Like, is that a separate pipeline? Is it part of the current pipeline? And do you see the nature of customers that you're, that's in that pipeline different than maybe your core product?
Paul Treiber: Just a follow-up. Just on the pipeline for, you know, RAG as a service and then MCP? Like, is that a separate pipeline? Is it part of the current pipeline? And do you see the nature of customers that you're, that's in that pipeline different than maybe your core product?
And are not really good at at at relevance and, uh, and governing that, and that's what we do. So, um, so that that pipeline is, um, is expanding, you know, for that reason. Um, and uh, the conversion rate, you know, are are also, uh, in in, uh, in healthy territory.
Louis Têtu: Well, the pipeline is made up of two main areas, right? I mean, the what we call land and expand. So landing new customers and then expanding, you know, the existing one. That pipeline would qualify as very healthy for the reasons I've explained before. You know, the recognition of the, I'll use the term necessity, of the stack that we provide to inherently, as we've said, you know, AI models do not understand your data, do not understand corporate data, and are not really good at relevance and governing that, and that's what we do. So, that pipeline is expanding, you know, for that reason.
Louis Têtu: Well, the pipeline is made up of two main areas, right? I mean, the what we call land and expand. So landing new customers and then expanding, you know, the existing one. That pipeline would qualify as very healthy for the reasons I've explained before. You know, the recognition of the, I'll use the term necessity, of the stack that we provide to inherently, as we've said, you know, AI models do not understand your data, do not understand corporate data, and are not really good at relevance and governing that, and that's what we do. So, that pipeline is expanding, you know, for that reason.
It is a follow-up just on, can you speak to the pipeline for, you know, rag as a service and then mCP like is that um, is that a separate pipeline? Is it? Is it part of the, the the, the current, um, Pipeline and do you see the nature of customers that you're that's in that pipeline different, um, um, than than, than maybe your your core product?
And um, and again it it goes back to the reasons before the markets more mature people understand what we do, um, the flexibility of of, of, of the platform. So it's really it's really across the board back to the fundamentals of what we do. Um, and that, um, that obviously creates some, uh, some um, uh, you know, growth in in, in, um, in across the board in, in both knowledge, their Solutions and commerce, uh,
Well, the the pipeline is made up of uh of uh, 2 2, uh, 2 main areas, right? I mean, the, uh, what we call land and expand so Landing new customers and, uh, and then expanding, you know, the, uh, the existing 1, um, that pipeline is, uh, would qualify as, uh, as very healthy, uh, for the reasons I've explained before, uh, you know, the, the, um, you know, recognition of the, I'll use the term necessity of of, of, of the the fact that we provide to inherently, as we said, you know, AI models, do not understand your data, do not understand corporate data, and are not really good at at, at
Louis Têtu: The conversion rates, you know, are also in healthy territory. Again, it goes back to the reasons before. The market's more mature, people understand what we do, the flexibility of the platform. So it's really, it's really across the board, back to the fundamentals of what we do. That obviously creates some, you know, growth across the board in both knowledge there, solutions, and commerce, as well.
The conversion rates, you know, are also in healthy territory. Again, it goes back to the reasons before. The market's more mature, people understand what we do, the flexibility of the platform. So it's really, it's really across the board, back to the fundamentals of what we do. That obviously creates some, you know, growth across the board in both knowledge there, solutions, and commerce, as well.
Thank you. And your next question comes from the line of kogi ikada from Bank of America Securities. Please go ahead.
Hi everybody. Uh, this is George agreeing on for cojita, appreciate you taking your question. Um, so I wanted to ask just, um, you know, in light of um, everything good happening. Uh, in terms of how coo is viewed. Um, more strategically by customers and and the momentum you're seeing both um,
Laurent Simoneau: And if I may add, Paul, what it does also ultimately drives additional consumption of Coveo. These new capabilities around interoperability, what we do around MCP servers and so on, it exposes Coveo to additional experiences and also additional agentic experiences, and it will drive consumption of Coveo. So we want this to be as present as possible in our future deals.
Laurent Simoneau: And if I may add, Paul, what it does also ultimately drives additional consumption of Coveo. These new capabilities around interoperability, what we do around MCP servers and so on, it exposes Coveo to additional experiences and also additional agentic experiences, and it will drive consumption of Coveo. So we want this to be as present as possible in our future deals.
In expand and land. Um,
How do you guys feel about?
Relevance and, uh, and governing that. And that's what we do. So, um, so that pipeline is, um, is expanding, you know, for that reason. Um, and, uh, the conversion rate, you know, are, are also, uh, in, in, uh, in healthy territory. And, um, and again, it goes back to the reasons before—so markets more mature, people understand what we do, um, the flexibility of, of, of, of the platform. So it's really, it's really across the board, back to the fundamentals of what we do. Um, and that, um, that obviously creates some, uh, some, um, you know, growth in, in, in, in, across the board in, in both Knowledge, their Solutions and Commerce, uh, as well. And, uh, and if I may add to that, Paul, what it does also, ultimately, drives additional consumption of Coveo. These new capabilities are...
Um, SNM capacity and and maybe if you could share some color on on how productivity in the Salesforce is kind of trended. Um,
Appreciate it.
so so productivity in terms of uh well I I think I'll qualify uh George uh this is Louisa I'll just qualify by saying that um
Around interoperability, uh, which we, uh, what we do around mCP servers. And so on, it exposes Co to additional experiences and also additional genetic experiences, and it will drive consumption of coo. So we want this to be uh, as uh, as present as possible in our in our future deals.
Operator: Thank you. And your next question comes from the line of Koji Ikeda from Bank of America Securities. Please go ahead.
Operator: Thank you. And your next question comes from the line of Koji Ikeda from Bank of America Securities. Please go ahead.
Thank you. And your next question comes from the line of Kogi Ikada from Bank of America Securities. Please go ahead.
George McGreehan: Hi, everybody, this is George McGreehan on for Koji Ikeda. Appreciate you taking our question. So I wanted to ask just, you know, in light of everything good happening in terms of how Coveo is viewed more strategically by customers and the momentum you're seeing both in expand and land, how do you guys feel about S&M capacity? And maybe if you could share some color on how productivity in the sales force has kind of trended. Appreciate it.
George McGreehan: Hi, everybody, this is George McGreehan on for Koji Ikeda. Appreciate you taking our question. So I wanted to ask just, you know, in light of everything good happening in terms of how Coveo is viewed more strategically by customers and the momentum you're seeing both in expand and land, how do you guys feel about S&M capacity? And maybe if you could share some color on how productivity in the sales force has kind of trended. Appreciate it.
Hi, everybody. Uh, this is George agreeing on for Cojita.
You know, very healthy performance from our sales team evidenced by the bookings and uh and and the guidance and the performance. Um, but um you know you know the we measure productivity in terms of quota achievement in terms of uh, conversion rate and uh also in terms of uh, long-term customer value, um, you know, the types of customers that we land and then how we, how we expand them and what's the expand potential of these customers?
Appreciate you taking your question. Um, so I wanted to ask just, um, you know, in light of, um, everything good happening, uh, in terms of how Coveo is viewed, um, more strategically by customers and the momentum you're seeing both, um,
In expand and land. Um,
I would put all these metrics at Green right now. So we're we're growing. Um, you know, when we see at or I should say George as we see a more mature Market
How do you guys feel about it?
As we see very healthy, you know, deal economics.
Um, SNM capacity, and maybe if you could share some color on how productivity in the Salesforce has kind of trended. Um,
Appreciate it.
Louis Têtu: So, productivity in terms of... Well, I think I'll qualify, George, this is Louis. I'll just qualify by saying that, you know, very healthy performance from our sales team, evidenced by the bookings and the guidance and the performance. But, you know, we measure productivity in terms of quota achievement, in terms of conversion rate, and also in terms of long-term customer value. You know, the types of customers that we land and then how we expand them, and what's the expand potential of these customers. And, I would put all these metrics at green right now.
Louis Têtu: So, productivity in terms of... Well, I think I'll qualify, George, this is Louis. I'll just qualify by saying that, you know, very healthy performance from our sales team, evidenced by the bookings and the guidance and the performance. But, you know, we measure productivity in terms of quota achievement, in terms of conversion rate, and also in terms of long-term customer value. You know, the types of customers that we land and then how we expand them, and what's the expand potential of these customers. And, I would put all these metrics at green right now.
So, so productivity in terms of, uh, well, I—I think I'll qualify, uh, George. Uh, this is Louisa. I'll just qualify by saying that, um,
Convert both conversion and deal size, moving in the right direction. Um, obviously, you know, you'll see us continue to invest, uh, and expand our, our Field Force, you know, you just don't throw you just don't throw, um, you know, a sales team when you don't have a defensible moat or, you know, healthy economics. Uh, we're very, very pleased with our cap. To ACV our cap to long-term customer value. We operate the company at 80 plus, uh, gross margin. And so, uh, you know, from a product site and, uh, and so those are all and and and, uh, as you know, net expansion rate is, uh, is also very healthy. So, uh, you know, from a
From a sales standpoint. Uh, this is, this is where you'll see us invest.
You know, very healthy performance from our sales team evidenced by the bookings and uh and and the guidance and the performance. Um but um you know you know the we measure productivity in terms of quota achievement in terms of uh conversion rate and uh also in terms of uh, long-term customer value, um, you know, the types of customers that we land and then how we, how we expand them and what's the expand potential of these customers and
Louis Têtu: So we're growing, you know, when we see or I should say, George, as we see a more mature market, as we see very healthy, you know, deal economics, both conversion and deal size moving in the right direction, obviously, you know, you'll see us continue to invest and expand our field force. You know, you just don't throw, you just don't throw, you know, a sales team when you don't have a defensible moat or you know, healthy economics. We're very, very pleased with our CAC to ACV, our CAC to long-term customer value. We operate the company at 80+ gross margin, and so, you know, from a product side. And as you know, net expansion rate is also very healthy.
So we're growing, you know, when we see or I should say, George, as we see a more mature market, as we see very healthy, you know, deal economics, both conversion and deal size moving in the right direction, obviously, you know, you'll see us continue to invest and expand our field force. You know, you just don't throw, you just don't throw, you know, a sales team when you don't have a defensible moat or you know, healthy economics. We're very, very pleased with our CAC to ACV, our CAC to long-term customer value. We operate the company at 80+ gross margin, and so, you know, from a product side. And as you know, net expansion rate is also very healthy.
I would put all these metrics at green right now. So we're growing. You know, when we see— or I should say, George, as we see a more mature market—
Thank you and your next question comes from the line of satanic Kumar from civil. Please go ahead.
As we see very healthy, you know, deal economics.
Good afternoon. Jens. Um, first question for me is on is on the on the demand environment uh in terms of recent wins um
Convert both conversion and deal size—moving in the right direction. Um, obviously, you know, you'll see us continue to invest.
what would you say has changed or or what is different about the company's buying Co
say like you know, it's wondering are these companies um
Later adopters or did they did they attempt to do AI without Enterprise Surge and coming back? Or are they moving from competing Solutions? And um and how are you describe the sense of urgency compared to say the last quarter or 6 months ago?
So, that's a great question. Uh, this is Laurel here so
Louis Têtu: So, you know, from a sales standpoint, this is where you'll see us invest.
So, you know, from a sales standpoint, this is where you'll see us invest.
Of course, you know, you just don't throw you just don't throw, um, you know, a sales team when you don't have a defensible moat or, you know, healthy economics. Uh, we're very, very pleased with our cap. To ACV our cap to long-term customer value. We operate the company at 80 plus, uh, gross margin. And so, uh, you know, from a product site and, uh, and so those are all and and and, uh, as you know, net expansion rate is, uh, is also very healthy. So, uh, you know, from a
From a sales standpoint, uh, this is—this is where you'll see us invest.
Operator: Thank you. Your next question comes from the line of Chaitanya Sikhamar from Stifel. Please go ahead.
Operator: Thank you. Your next question comes from the line of Chaitanya Sikhamar from Stifel. Please go ahead.
Here's what we're experimenting with what we're experiencing is. A companies that see the value of AI, That's 1 investment AI, um, but that understand that they need to ground AI in their own content. That's what kavo does. Right does really well. They um,
Thank you, and your next question comes from the line of Japan. Please go ahead.
Chaitanya Sikhamar: Hi, good afternoon, gents. First question for me is on the demand environment. In terms of recent wins, what would you say has changed, or what is different about the companies buying Coveo? They... Like, you know, I was wondering, are these companies later adopters, or did they attempt to do AI without enterprise search and coming back, or are they moving from competing solutions? And how would you describe the sense of urgency compared to, let's say, last quarter or six months ago?
Chaitanya Yaramada: Hi, good afternoon, gents. First question for me is on the demand environment. In terms of recent wins, what would you say has changed, or what is different about the companies buying Coveo? They... Like, you know, I was wondering, are these companies later adopters, or did they attempt to do AI without enterprise search and coming back, or are they moving from competing solutions? And how would you describe the sense of urgency compared to, let's say, last quarter or six months ago?
sometimes these companies have also started some internal projects uh trying to build that on their own and uh
Good afternoon. Jens. Um, first question for me is on is on the on the demand environment uh in terms of recent wins um
What would you say has changed, or what is different about the companies buying Coveo?
They like, you know, it's—wondering, are these companies, um—
Are these leader adopters, or did they attempt to do AI without enterprise search and are now coming back, or are they moving from competing solutions? And, how would you describe the sense of urgency compared to, say, last quarter or six months ago?
Laurent Simoneau: So that's a great question. This is Laurent here. So here's what we're experiencing is companies that see the value of AI, that want to invest in AI, but that understand that they need to ground AI in their own content. That's what Coveo does, right? Does really well. They sometimes these companies have also started some internal projects trying to build that on their own. And they discovered that it's hard, they discovered that it's expensive, and it's even harder to maintain and evolve. So Coveo is becoming really an important piece of the infrastructure for these large companies. I would say a year ago, we were convincing companies that it was the case. Now they are adopting this.
Laurent Simoneau: So that's a great question. This is Laurent here. So here's what we're experiencing is companies that see the value of AI, that want to invest in AI, but that understand that they need to ground AI in their own content. That's what Coveo does, right? Does really well. They sometimes these companies have also started some internal projects trying to build that on their own. And they discovered that it's hard, they discovered that it's expensive, and it's even harder to maintain and evolve. So Coveo is becoming really an important piece of the infrastructure for these large companies. I would say a year ago, we were convincing companies that it was the case. Now they are adopting this.
They discovered that it's hard. It is discovered that it's, uh, expensive. And um, it's uh, it's even harder to maintain and evolve. So Co is becoming really an important piece of the infrastructure for these large companies. I would say, a year ago, we were, um, we were convincing companies that it was the case. Now they are, uh, they are adopting this and not only are adopting this. They are expanding with us, which is, uh, which is an amazing proof point.
So, that's a great question. Uh, this is Laurel here, so
Great, thank you. And um,
Here's what we're experimenting. What we're experiencing is companies that see the value of AI, that want to invest in AI, um, but that understand that we need to ground AI in their own content. That's what Coveo does, right? Does really well. They, um,
The core core use cases that you guys are well positioned for to solve for the, for the government. You know, I was wondering if there's, you know, anything kind of from a low hanging fruit perspective that you guys are going to be tackling in the near term.
Sometimes these companies have also started some internal projects, trying to build that on their own, and uh,
Right. Um, as I said in the, the prepared remarks, um, you know, we already, um, do business with, um, uh, agent
Such as uh, for instance, the Australian taxation office or the New Zealand, taxation office, the state of Tennessee, you have a city of New York or so on and and mostly it's about using generative AI for acute. Uh, um,
Laurent Simoneau: And not only they are adopting this, they are expanding with us, which is an amazing proof point.
Laurent Simoneau: And not only they are adopting this, they are expanding with us, which is an amazing proof point.
They discovered that it's hard. It is covered that it's, uh, expensive. And, um, it's, uh—it's even harder to maintain and evolve. So Coveo is becoming really an important piece of the infrastructure for these large companies. I would say, a year ago we were, um, we were convincing companies that it was the case. Now they are, uh, they are adopting this, and not only are they adopting this—they are expanding with us, which is, uh, which is an amazing proof point.
Chaitanya Sikhamar: Great. Thank you. And, for my second question, just wanted to touch on the Canadian government opportunity. From where you sit today, what are some of the core use cases that you guys are well positioned for to solve for the government? I was wondering if there's, you know, anything kind of from a low-hanging fruit perspective that you guys are gonna be tackling in the near term.
Chaitanya Yaramada: Great. Thank you. And, for my second question, just wanted to touch on the Canadian government opportunity. From where you sit today, what are some of the core use cases that you guys are well positioned for to solve for the government? I was wondering if there's, you know, anything kind of from a low-hanging fruit perspective that you guys are gonna be tackling in the near term.
Thank you. And, um, for my second question, just wanted to touch on the the Canadian, uh, the Canadian government opportunity. Um, from where you, where you sit today, uh, what are some of the or core core use cases that you guys are well, positioned for, to solve, for the, for the government. You know, I was wondering if there's, you know, anything kind of from a low hanging fruit perspective that you guys are going to be tackling in the near term.
Louis Têtu: Right. As I said in the prepared remarks, you know, we already do business with agencies such as, for instance, the Australian Taxation Office or the New Zealand Taxation Office, the state of Tennessee or the city of New York or so on. Mostly it's about using generative AI for acute citizen services and really civil servants insights. So there's a lot of opportunity in Canada to deploy AI.
Louis Têtu: Right. As I said in the prepared remarks, you know, we already do business with agencies such as, for instance, the Australian Taxation Office or the New Zealand Taxation Office, the state of Tennessee or the city of New York or so on. Mostly it's about using generative AI for acute citizen services and really civil servants insights. So there's a lot of opportunity in Canada to deploy AI.
Uh, citizens services and, uh, and and really civil servants, um, insights. And uh, so there's a lot of opportunity, uh, in Canada, uh, to uh to uh uh, deploy AI. Um, and um, you know, I guess, I guess on not on related to the overall you know macroeconomic environment right now Canada is really taking AI, very seriously. Uh both from an industrialization standpoint which we can participate in across the country. But also from a government efficiency perspective, which is top of the agenda for um our prime minister, Mark Carney and so as a result Cavo being 1 of the Canadian sort of like Canadian
Applied AI.
Right. Um, as I said in the prepared remarks, um, you know, we already, um, do business with, um, uh, agents.
has been, um,
Such as, uh, for instance, the Australian Taxation Office or the New Zealand Taxation Office, the state of Tennessee, or the city of New York, and so on. And mostly it's about using generative AI for acute, uh, um,
Uh, called by the government, uh, you know, and we've signed a memorandum of understanding which is sort of a normal way that the government proceeds to, uh, to essentially explore, um, you know, deployments across, uh, agencies essentially Coast to Coast. Uh, so um, so we'll see how that unfolds. We're not announcing anything. There's nothing formal
Louis Têtu: You know, I guess, not unrelated to the overall, you know, macroeconomic environment right now, Canada is really taking AI very seriously, both from an industrialization standpoint, which we can participate in across the country, but also from a government efficiency perspective, which is top of the agenda for our Prime Minister, Mark Carney. And so as a result, Coveo, being one of the Canadian, sort of, like, Canadian leaders in applied AI, has been called by the government, you know, and we've signed a memorandum of understanding, which is sort of a normal way that the government proceeds to essentially explore, you know, deployments across agencies, essentially coast to coast. So we'll see how that unfolds. We're not announcing anything. There's nothing formal.
You know, I guess, not unrelated to the overall, you know, macroeconomic environment right now, Canada is really taking AI very seriously, both from an industrialization standpoint, which we can participate in across the country, but also from a government efficiency perspective, which is top of the agenda for our Prime Minister, Mark Carney. And so as a result, Coveo, being one of the Canadian, sort of, like, Canadian leaders in applied AI, has been called by the government, you know, and we've signed a memorandum of understanding, which is sort of a normal way that the government proceeds to essentially explore, you know, deployments across agencies, essentially coast to coast. So we'll see how that unfolds. We're not announcing anything. There's nothing formal.
And mou is uh is essentially a you know the equivalent of a letter of intent in government jargon. Um but certainly, you know, there's a there's a significant opportunity for us to uh save and we've already said publicly that we can save, you know, billions to, to the government
And uh, so there's a lot of opportunity, uh, in Canada, uh, to uh, to uh, uh deploy AI. Um, and um, you know, I guess, I guess on—not unrelated to the overall, you know, macroeconomic environment right now—Canada is really taking AI very seriously. Uh, both from an industrial
Industrialization standpoint, which we can participate in across the country. But also from a government efficiency perspective, which is top of the agenda for, um, our Prime Minister, Mark Carney. And so as a result, Cavalo being one of the Canadian, sort of, like Canadian leaders, uh, in, uh, in applied AI has been, um,
And, um, and create that equivalent of that, that the billions also and economic value with our technology and we can do that. You know, we have thousands of use cases of Co and we can do that in a highly industrialized way which most people cannot do and, uh, and so, you know, we think that could be a significant opportunity. Now, the mou was signed by 2 ministers. Um, the minister of AI Evan Solomon. And uh, Joe and live band, the minister of um of uh, government transformation and so, and uh, Service Canada Service Canada.
Louis Têtu: An MOU is essentially a, you know, the equivalent of a letter of intent in government lang, jargon. But certainly, you know, there's a significant opportunity for us to save, and we've already said publicly that we can save, you know, billions to the government, and create that equivalent amount, that billions also in economic value with our technology. And we can do that. You know, we have thousands of use cases of Coveo, and we can do that in a highly industrialized way, which most people cannot do. And so, you know, we think that could be a significant opportunity. Now, the MOU was signed by two ministers, the Minister of AI, Evan Solomon, and Joël Lightbound, the Minister of Government Transformation and Service Canada, Service Canada.
Louis Têtu: An MOU is essentially a, you know, the equivalent of a letter of intent in government lang, jargon. But certainly, you know, there's a significant opportunity for us to save, and we've already said publicly that we can save, you know, billions to the government, and create that equivalent amount, that billions also in economic value with our technology. And we can do that. You know, we have thousands of use cases of Coveo, and we can do that in a highly industrialized way, which most people cannot do. And so, you know, we think that could be a significant opportunity. Now, the MOU was signed by two ministers, the Minister of AI, Evan Solomon, and Joël Lightbound, the Minister of Government Transformation and Service Canada, Service Canada.
So, um, you know, we'll see, I can't speak on their behalf as far as, uh, what decisions, they'll make, um, you know, regarding, uh, their transformation and, uh, how they'll deploy AI in The Sovereign way in Canada. But it's certainly, uh, those are certainly discussions underway as you might expect.
Thank you. Once again, should you have a question please? Press star. Then the number 1 on your telephone keypad. Your next question comes from the line of Richard. J from National Bank Capital Market. Please go ahead.
Is essentially a, you know the equivalent of a letter of intent in government jargon. Um but certainly, you know, there's a there's a significant opportunity for us to uh save and we've already said publicly that we can save, you know, billions to, to the government
Yes. Uh thanks for taking my question. Um,
And, um, and create that equivalent of that, the billions also in economic value with our technology, and we can do that.
Louis Têtu: So, you know, we'll see. I can't speak on their behalf as far as what decisions they'll make, you know, regarding their transformation and how they'll deploy AI in a sovereign way in Canada. But it's certainly, those are certainly discussions underway, as you might expect.
So, you know, we'll see. I can't speak on their behalf as far as what decisions they'll make, you know, regarding their transformation and how they'll deploy AI in a sovereign way in Canada. But it's certainly, those are certainly discussions underway, as you might expect.
Seems like you sort of had some really accelerated momentum in sort of new verticals, or I don't say new, but sort of verticals like, industrial and financial services. I, I think your sort of, called out Industrials in particular, what would you attribute that to? Is that kind of because you've made a sales push there, or is it, uh, goes back to your comments, that there's more sort of understanding in the market. Like it, it seems like that is becoming, uh, a much bigger opportunity than you have sort of talked about in the past.
Absolutely. So our our customers are bringing us there we uh,
Thousands of use cases of Co, and we can do that in a highly industrialized way which most people cannot do, and, uh, and so, you know, we think that could be a significant opportunity. Now, the MOU was signed by two ministers: um, the Minister of AI, Evan Solomon, and, uh, Joe and Liv Band, the minister of, um, of, uh, Government Transformation and so, and, uh, Service Canada, Service Canada. So, um, you know, we'll see. I can't speak on their behalf as far as, uh, what decisions they'll make, um, you know, regarding their transformation and, uh, how they'll deploy AI in the sovereign way in Canada. But it's certainly, uh, those are certainly discussions underway as you might expect.
Operator: Thank you once again. Should you have a question, please press star then the number one on your telephone keypad. Your next question comes from the line of Richard Tse from National Bank Financial. Please go ahead.
Operator: Thank you once again. Should you have a question, please press star then the number one on your telephone keypad. Your next question comes from the line of Richard Tse from National Bank Financial. Please go ahead.
The fact that we cover both the Commerce part, think about large catalogs and pricing entitlements, inventory and so on, and the knowledge side.
Thank you. Once again, should you have a question, please press star, then the number 1 on your telephone keypad. Your next question comes from the line of Richard Chat from National Bank Capital Markets. Please go ahead.
Richard Tse: Yes, thanks for taking my question. It seems like you've sort of had some really accelerated momentum in sort of new verticals or, I don't want to say new, but sort of, verticals like industrial and financial services. I think you sort of called out industrials in particular. What would you attribute that to? Is that kind of because you've made a sales push there, or is it, goes back to your comments that there's more sort of understanding in the market? Like, it seems like that is becoming a much bigger opportunity than you have sort of talked about in the past.
Richard Tse: Yes, thanks for taking my question. It seems like you've sort of had some really accelerated momentum in sort of new verticals or, I don't want to say new, but sort of, verticals like industrial and financial services. I think you sort of called out industrials in particular. What would you attribute that to? Is that kind of because you've made a sales push there, or is it, goes back to your comments that there's more sort of understanding in the market? Like, it seems like that is becoming a much bigger opportunity than you have sort of talked about in the past.
That involves, uh, service involves field service, and so on it. It becomes a, uh, it becomes a logical, next step to handle that altogether. Now, what is also accelerating? This is, uh,
Search and conversation conversational.
Yes. Uh, thanks for taking my question. Um, it seems like you sort of had some really accelerated momentum and sort of new verticals. Or I don't want to say new, but sort of verticals like, industrial and financial services. I, I think your sort of, called out Industrials in particular, what would you attribute that to? Is that kind of because you've made a sales push there, or is it, uh, goes back to your comments, that there's more sort of understanding in the market. Like it, it seems like that is becoming, uh, a much bigger opportunity than you have sort of talked about in the past.
Laurent Simoneau: ... Absolutely. So our customers are bringing us there. We, the fact that we cover both the commerce part, think about large catalogs and pricing entitlements, inventory and so on, and the knowledge side that involves service, involves field service and so on, it becomes a logical next step to handle that altogether. Now, what is also accelerating this is search and conversational experiences are allowing to stitch all of this information altogether. So, customers are evolving in a way where these new experiences will serve customers, all silos of the customer lifetime into customer lifetime with them, which is highly strategic.
Laurent Simoneau: ... Absolutely. So our customers are bringing us there. We, the fact that we cover both the commerce part, think about large catalogs and pricing entitlements, inventory and so on, and the knowledge side that involves service, involves field service and so on, it becomes a logical next step to handle that altogether. Now, what is also accelerating this is search and conversational experiences are allowing to stitch all of this information altogether. So, customers are evolving in a way where these new experiences will serve customers, all silos of the customer lifetime into customer lifetime with them, which is highly strategic.
Absolutely. So, our customers are bringing us there, we, uh,
The fact that we cover both the Commerce part—think about large catalogs, and pricing, and entitlements, and inventory, and so on—and the knowledge side.
Customer lifetime into, um, customer lifetime with them, which is highly strategic. So Co serves as an infrastructure layer supporting all of that and because again, we connect to Commerce, we connect to service and knowledge. And, uh, we have the AI on top of it, to deal with relevance, we become a strategic component for them in the future. Richard, I'll, I'll add the following to to, uh, perhaps illustrate this. And, uh, for everyone on the call, which is, which really speaks volume to our thesis and, uh, and what we're experiencing.
That involves a service that involves field service and so on. It becomes a, it becomes a logical next step to handle that all together. Now, what is also accelerating this is, uh,
1 of the most. And this I think I think for everyone this is really really important to understand Co 1 1 of the most fundamental fundamental breakthroughs or paradigms that.
Search and conversation conversational.
New paradigm that generative AI in particular enables is the ability to stitch content in real time, in real time and bring it in context.
Laurent Simoneau: So Coveo serves as an infrastructure layer supporting all of that, and because, again, we connect to commerce, we connect to service and knowledge, and we have the AI on top of it to deal with relevance, we become a strategic component for them in the future.
So Coveo serves as an infrastructure layer supporting all of that, and because, again, we connect to commerce, we connect to service and knowledge, and we have the AI on top of it to deal with relevance, we become a strategic component for them in the future.
So, so think about how you can go on chat GPT and, and essentially asked a very complex question, provide the context, and how table GPT was will literally Stitch it for you and tailor it for you.
and so, so if you think about that in the context of an Enterprise,
Data doesn't need to be moved anymore.
Louis Têtu: Richard, I'll add, I'll add the following to, to, perhaps, illustrate this and, and what we're experiencing. One of the most and this I think, I think for everyone, this is really, really important to understand Coveo. One, one of the most fundamental, fundamental breakthroughs or paradigms that new paradigm that generative AI, in particular, enables, is the ability to stitch content in real time, in real time and bring it in context. So, so think about how you can go on ChatGPT and, and essentially ask a very complex question, provide the context, and how ChatGPT will will literally stitch it for you and tailor it for you.
Louis Têtu: Richard, I'll add, I'll add the following to, to, perhaps, illustrate this and, and what we're experiencing. One of the most and this I think, I think for everyone, this is really, really important to understand Coveo. One, one of the most fundamental, fundamental breakthroughs or paradigms that new paradigm that generative AI, in particular, enables, is the ability to stitch content in real time, in real time and bring it in context. So, so think about how you can go on ChatGPT and, and essentially ask a very complex question, provide the context, and how ChatGPT will will literally stitch it for you and tailor it for you.
You do not need you. If you think about something like like agent force, for instance, at Salesforce, it was designed to work on data Cloud. You need to move all your data into Data Cloud. Well, guess what? And for a lot of use cases, especially the ones we cover. You don't need to do that anymore.
Experiences or allowing to stitch all of this information all together. So, um, customers are evolving in a way where these new experiences will serve customers all silos of the customer lifetime into, um, customer lifetime with them, which is highly strategic. So, Co serves as an infrastructure layer supporting all of that and because again, we connect to Commerce, we connect to service and knowledge. And, uh, we have the AI on top of it, to deal with relevance, we become a strategic component for them in the future. Richard, I'll add, I'll add the following to, to, uh, perhaps illustrate this. And, uh, for everyone on the call, which is, which really speaks volume to our thesis and, uh, and what we're experiencing.
Why does that matter is that search and the the the ability, which, you know, we've mastered for now, 15 years, the ability to reach content across, multiple silos, highly securely govern, that process, understand the semantics behind it, vectorize it and, and then and then and then the relevance to understand the context and Stitch it together in real time is what we enable.
1 of the most. And this, I think, I think for everyone, this is really, really important to understand Co 1 1 of the most fundamental fundamental breakthroughs or paradigms that new paradigm that generative AI in particular enables is the ability to stitch content in real time, in real time and bring it in context.
And so and so fundamentally as companies discover that, and they they they understand better than ever, how to take advantage of that.
Louis Têtu: So if you think about that in the context of an enterprise, data doesn't need to be moved anymore. You do not need. If you think about something like Agentforce, for instance, at Salesforce, it was designed to work on Data Cloud. You need to move all your data into Data Cloud. Well, guess what? For a lot of use cases, especially the ones we cover, you don't need to do that anymore. Why does that matter is that search and the ability, which, you know, we've mastered for now 15 years, the ability to reach content across multiple silos, highly securely, govern that process, understand the semantic behind it, vectorize it, and then the relevance to understand the context and stitch it together in real time, is what we enable.
So if you think about that in the context of an enterprise, data doesn't need to be moved anymore. You do not need. If you think about something like Agentforce, for instance, at Salesforce, it was designed to work on Data Cloud. You need to move all your data into Data Cloud. Well, guess what? For a lot of use cases, especially the ones we cover, you don't need to do that anymore. Why does that matter is that search and the ability, which, you know, we've mastered for now 15 years, the ability to reach content across multiple silos, highly securely, govern that process, understand the semantic behind it, vectorize it, and then the relevance to understand the context and stitch it together in real time, is what we enable.
So, so think about how you can go on ChatGPT and essentially ask a very complex question, provide the context, and how ChatGPT will literally stitch it for you and tailor it for you. And so, so if you think about that in the context of an enterprise,
Data doesn't need to be moved anymore.
And that is really, really, really critical to to what the market is realizing to what AI is truly enabling and to what Co at the core is doing, we're in the Stitch and Taylor business. We stitch data and we tailor it
Think about it that way in those terms and and this is why we're becoming, you know, very relevant to these customers because of that ability.
Does that make sense?
You do not need to use you. If you think about something like, like Agent Force, for instance, that's Salesforce—it was designed to work on Data Cloud. You need to move all your data into Data Cloud. Well, guess what? For a lot of use cases, especially the ones we cover, you don't need to do that anymore.
Yeah. Yeah, that's very helpful. Thank you. Um, my next question, like a second question here is uh, yeah, as workflows shift more away from sort of search and directly in the agents. Does that kind of change the revenue model going forward in any way? Or is it essentially the same?
Louis Têtu: Fundamentally, as companies discover that, and they understand better than ever how to take advantage of that. And that is really, really, really critical to what the market is realizing, to what AI is truly enabling, and to what Coveo at the core is doing. We're in the stitch and tailor business. We stitch data, and we tailor it. Think about it that way, in those terms. And this is why we're becoming, you know, very relevant to these customers, because of that ability. Does that make sense?
To understand the context and stitch it together in real time is what we enable.
Fundamentally, as companies discover that, and they understand better than ever how to take advantage of that. And that is really, really, really critical to what the market is realizing, to what AI is truly enabling, and to what Coveo at the core is doing. We're in the stitch and tailor business. We stitch data, and we tailor it. Think about it that way, in those terms. And this is why we're becoming, you know, very relevant to these customers, because of that ability. Does that make sense?
Well, for us, we uh, we have primarily a consumption model, right? So we don't we don't really sell seats. Um, so if the, if the usage of coo, um, goes through a genetic workflows, it's, uh, fully fine. We are going to, we're going to serve these agentic workflows, just like we serve user experiences plus the user experiences and it brings more consumption for coo. So we are, uh,
And so, and so fundamentally, as companies discover that, and they, they, they understand better than ever how to take advantage of that. And that is really, really, really critical to what the market is realizing, to what AI is truly enabling, and to what Coveo at the core is doing. We're in the stitch and tailor business. We stitch data and we tailor it.
uh, we are quite comfortable with uh, with serving this diversity of uh the diversity of uh of experiences basically.
Think about it that way, in those terms, and this is why we're becoming, you know, very relevant to these customers because of that ability.
Does that make sense?
Richard Tse: Yeah. Yeah, that's very helpful. Thank you. For my next question, I guess second question here is, yeah, as workflows shift more away from sort of search and directly into agents, does that kinda change the revenue model going forward in any way, or is it essentially the same?
Richard Tse: Yeah. Yeah, that's very helpful. Thank you. For my next question, I guess second question here is, yeah, as workflows shift more away from sort of search and directly into agents, does that kinda change the revenue model going forward in any way, or is it essentially the same?
We're in the good side of gentec as a summary.
Thank you. And there are no further questions at this time. I will now hand the call back to learn Simona for any closing remarks.
Yeah, yeah, that's very helpful, thank you. Um, my next question, I got a second question here, is uh, yeah, as workflows shift more away from sort of search and directly into the agents, does that kind of change the revenue model going forward in any way, or is it essentially the same?
Laurent Simoneau: Well, for us, we have primarily a consumption model, right? So we don't really sell seats. So if the usage of Coveo goes through agentic workflows, it's totally fine. We're going to serve these agentic workflows just like we serve user experiences, classic user experiences, and it brings more consumption for Coveo. So we are quite comfortable with serving this diversity of diversity of experiences, basically. We're on the good side of agentic, as a summary.
Laurent Simoneau: Well, for us, we have primarily a consumption model, right? So we don't really sell seats. So if the usage of Coveo goes through agentic workflows, it's totally fine. We're going to serve these agentic workflows just like we serve user experiences, classic user experiences, and it brings more consumption for Coveo. So we are quite comfortable with serving this diversity of diversity of experiences, basically. We're on the good side of agentic, as a summary.
All right. So thank you again, everyone for joining us today and to our shareholders, for your continued support. We look forward to updating you on our next earnings. Call after our Q4 and full year results. Thank you.
This concludes today's call. Thank you for participating. Give me all this disconnect.
Well, for us, we, uh, we have primarily a consumption model, right? So we don't—we don't really sell seats. Um, so if the, if the usage of, uh, goes through genetic workflows, it's, uh, fully fine. We are going to—we're going to serve these genetic workflows.
Workflows. Just like we serve user experiences, plus a user experiences, and it brings more consumption for Coveo. So we are, uh,
Uh, we are quite comfortable with, uh, with serving this diversity of, uh, the diversity of, uh, of experiences, basically.
We're on the good side of GenTec, as a summary.
Operator: Thank you. There are no further questions at this time. I will now hand the call back to Laurent Simoneau for any closing remarks.
Operator: Thank you. There are no further questions at this time. I will now hand the call back to Laurent Simoneau for any closing remarks.
Thank you. And there are no further questions at this time. I will now hand the call back to Laurent Simoneau for any closing remarks.
Laurent Simoneau: All right. So thank you again, everyone, for joining us today and to our shareholders for your continued support. We look forward to updating you on our next earnings call after our Q4 and full year results. Thank you.
Laurent Simoneau: All right. So thank you again, everyone, for joining us today and to our shareholders for your continued support. We look forward to updating you on our next earnings call after our Q4 and full year results. Thank you.
All right. So thank you again, everyone, for joining us today, and to our shareholders for your continued support. We look forward to updating you on our next earnings call after our Q4 and full-year results. Thank you.
Operator: This concludes today's call. Thank you for participating. You may all disconnect.
Operator: This concludes today's call. Thank you for participating. You may all disconnect.
This concludes today's call. Thank you for participating. You may all disconnect.
