Coveo (the “Company”) (TSX: CVO), a leader in AI platforms that
transform digital experiences with intelligent search,
recommendations, 1:1 personalization, and merchandising, today
announced financial results for its first quarter of fiscal 2024
ended June 30, 2023.
“Our years of experience in developing applied AI solutions for
large, complex enterprises have allowed us to bring to market what
we believe is a transformative offering in generative AI,” said
Louis Têtu, Chairman and CEO of Coveo. “I’m thrilled with the early
interest and feedback from our design partners and customers, and
excited about how we can quickly help enterprises realize the value
that Coveo Relevance Generative AnsweringTM can bring.”
During the quarter, the Company announced the launch of Coveo
Relevance Generative AnsweringTM, a powerful and natural extension
of its industry leading solutions, combining Large Language Model
(“LLM“) technology with the secure indexing and relevance
capabilities of the Coveo Relevance CloudTM AI platform. Coveo
Relevance Generative AnsweringTM is one of the first solutions to
address critical challenges around leveraging LLMs for enterprise
use cases, including issues such as enforcing security and privacy,
controlling hallucinations, and ensuring up-to-date answers while
offering a cost-effective, unified user experience. The Company is
currently working with 20 design partners, such as Informatica,
Synopsis, VMware, Xero, and Zoom, as well as 25 additional
customers in its advisory group. Coveo expects to provide access to
Coveo Relevance Generative AnsweringTM to its design partners in
the second quarter of fiscal 2024 and make it generally available
during fiscal 2024.
“It was another quarter of solid progress during a very exciting
time for Coveo. Our business achieved 20% growth in constant
currency for SaaS Subscription Revenue in Q1, and we continued to
accelerate our path to profitability. I am pleased with the
operational efficiency of our business in the current business
environment, enabling us to prudently invest for future growth,”
said Brandon Nussey, CFO of Coveo.
First Quarter Fiscal 2024 Financial
Highlights(All comparisons are relative to the
three-month period ended June 30, 2022, unless otherwise
stated)
- SaaS Subscription Revenue(1) of $28.5 million compared to $24.0
million, an increase of 19%, or 20% in constant currency(2).
- Total revenue was $30.5 million compared to $26.5 million, an
increase of 15%, or 16% in constant currency(2).
- Current SaaS Subscription Remaining Performance Obligations(1)
of $94.4 million as of June 30, 2023, up 12% compared to $84.4
million as of June 30, 2022.
- Gross margin was 78%, an increase of 3%, and product gross
margin was 82%, an increase of 2%.
- Operating loss was $7.6 million, a significant improvement
compared to $13.3 million, and Adjusted Operating Loss(3) was $2.8
million, a significant improvement compared to $7.5 million.
- Net loss was $7.0 million compared to net loss of $12.5
million.
- Cash flow from operating activities was $1.0 million.
- Cash and cash equivalents were $201.2 million as of June 30,
2023.
The reconciliation table in the appendices highlights the impact
of foreign exchange rate fluctuations on SaaS Subscription Revenue
(1) and total revenue for the three months ended June 30, 2023.
First Quarter Fiscal 2024 Operational
Highlights
- Net Expansion Rate(1) of 109% as of June 30, 2023.
- The Company achieved the status of Adobe Gold Partner, a
recognition of its excellence providing personalized digital
experiences for customers within the Adobe ecosystem. As a Gold
Partner, Coveo will enjoy additional benefits, including access to
Adobe product teams, prioritized planning with Adobe's sales team,
and preferential marketing opportunities, among others.
- Announced the Coveo Relevance Cloud™ AI platform's achievement
of the ISO 27001 certification, underscoring the Company’s
commitment to customer security and trust. The certification
recognizes Coveo's adherence to rigorous standards in protecting
sensitive information and systems, enabling enterprises to leverage
Coveo's AI platform with confidence. The ISO 27001 certification
establishes Coveo's systematic and documented approach to
information security, ensuring the confidentiality, integrity, and
availability of customer data while complying with applicable laws
and regulations.
- Coveo services are now available on the Amazon Web Services
(“AWS“) Canada (Central) Region, enabling Canadian customers to
store their data securely in-country and leverage benefits such as
lower latency, greater fault tolerance, and increased flexibility
for critical cloud workloads. Coveo's availability now spans
multiple AWS Regions globally, including Europe, the United States,
and Australia, and its AI-powered search is accessible through the
AWS Marketplace.
Subsequent Highlights
- On July 12, 2023, the Company announced that it had completed
the purchase of 3,706,194 of its subordinate voting shares
(including 480,000 multiple voting shares on an as-converted basis)
at C$8.50 per share under its substantial issuer bid (launched May
30, 2023), for an aggregate purchase price of approximately C$31.5
million, and that it had also authorized a normal course issuer bid
(“NCIB”) to buy back up to 2,559,247 subordinate voting shares of
the Company over the twelve-month period beginning on July 17, 2023
and ending on July 16, 2024.
- Coveo's Relevance Cloud™ AI Platform won “Best LLM Application“
in the 2023 AI Breakthrough Awards, highlighting its leadership in
AI and paving the way for its groundbreaking generative AI
solution, Coveo Relevance Generative Answering™.
- Coveo announces the planned retirement of Guy Gauvin from his
role as Chief Operating Officer of the Company. As part of the
succession plan spearheaded by Coveo’s compensation committee and
its board of directors, Mr. Gauvin will transition into a Senior
Advisor role effective August 8, 2023, with his responsibilities to
be distributed to other members of the senior management team of
the Company.
Financial Outlook
While the macroeconomic environment continues to impact new
bookings, we are encouraged by the early demand for Coveo Relevance
Generative AnsweringTM and the pipeline generated through our
partnership with SAP. In light of this, Coveo anticipates SaaS
Subscription Revenue(1), Total Revenue, and Adjusted Operating
Loss(3) to be in the following ranges:
|
Q2 FY’24 |
Full Year FY’24 |
SaaS Subscription
Revenue(1) |
$28.8 – $29.3 million |
$118.0 – $120.0 million |
Total Revenue |
$30.8 – $31.3 million |
$127.0 – $129.0 million |
Adjusted Operating
Loss(3) |
$1.5 – $2.5 million |
$11.5 – $13.5 million |
|
|
|
Coveo continues to expect to achieve positive operating cash
flow in its next fiscal year (fiscal 2025) as it executes on its
growth plan while continuing to improve its efficiency.
These guidance ranges, including the timing to achieve positive
operating cash flow, are based on several assumptions, including
the following, in addition to those set forth under the
“Forward-Looking Information” section below:
- Achieving expected levels of sales of SaaS subscriptions to new
and existing customers, including timing of those sales, as well as
expected levels of renewals of SaaS subscriptions with existing
customers.
- Achieving expected levels of implementations and other sources
of professional services revenue.
- Maintaining planned levels of operating margin represented by
our Adjusted Gross Profit Measures(3) and Adjusted Gross Margin
Measures(2).
- Expected financial performance as measured by our Adjusted
Operating Expense Measures(3) and Adjusted Operating Expense (%)
Measures(2).
- Stabilization of ongoing headwinds, including those related to
economic and geopolitical factors, impacting sales cycles, pricing,
and the ability to generate new business.
- Our ability to attract and retain key personnel required to
achieve our plans.
- Similar foreign exchange rates, inflation rates, interest
rates, customer spending, and other macro-economic conditions.
- Our financial outlook does not include the impact of
acquisitions that may be announced or closed from time to
time.
These statements are forward-looking and actual results may
differ materially. Coveo’s outlook constitutes “financial outlook”
within the meaning of applicable securities laws and is provided
for the purpose of, among other things, assisting the reader in
understanding the Company’s financial performance and measuring
progress toward management’s objectives, and the reader is
cautioned that it may not be appropriate for other purposes. Please
refer to the “Forward-Looking Information” section below for
additional information on the factors that could cause our actual
results to differ materially from these forward-looking statements
and a description of the assumptions thereof.
(1) |
SaaS Subscription Revenue, Current SaaS Subscription Remaining
Performance Obligations, and Net Expansion Rate are Key Performance
Indicators of Coveo. Please see the “Key Performance Indicators”
section below. |
(2) |
Adjusted Gross Margin Measures, Adjusted Operating Expense (%)
Measures, Adjusted Product Gross Margin, SaaS Subscription Revenue
growth at constant currency, and total revenue growth at constant
currency are non-IFRS ratios. Please see the “Non-IFRS Measures and
Ratios” section below and the reconciliation tables within this
release. |
(3) |
Adjusted Gross Profit Measures, Adjusted Operating Expense
Measures, Adjusted Operating Loss, SaaS Subscription Revenue at
constant currency, and total revenue at constant currency are
non-IFRS measures. Please see the “Non-IFRS Measures and Ratios”
section below and the reconciliation tables within this
release. |
|
|
Establishment of an Automatic Securities Purchase
Plan
Coveo also announced today that, in connection with the NCIB, it
recently entered into an automatic securities purchase plan (the
“ASPP”) with BMO Capital Markets, as designated broker responsible
for the NCIB. The ASPP is intended to allow for the purchase of
subordinate voting shares under the NCIB at times when Coveo would
ordinarily not be permitted to purchase its securities due to
regulatory restrictions and customary self-imposed blackout
periods.
Pursuant to the ASPP, Coveo may provide instructions to the
designated broker to purchase subordinate voting shares within
pre-established parameters without further instructions by Coveo,
in compliance with the rules of the Toronto Stock Exchange (“TSX”),
applicable securities laws, and the terms of the ASPP. The ASPP has
been pre-cleared by the TSX and will be available for use as of
August 10, 2023.
Outside the ASPP, subordinate voting shares may be purchased
under the NCIB based on management’s discretion, in compliance with
the rules of the TSX and applicable securities laws. The NCIB
commenced on July 17, 2023 and will end no later than July 16,
2024. All purchases made under the ASPP, if any, will be included
in computing the number of subordinate voting shares purchased
under the NCIB. As of the date hereof, Coveo has not purchased any
subordinate voting shares under the NCIB, as the NCIB was launched
during a customary self-imposed quarterly blackout period.
Q1 Conference Call and Webcast Information
Coveo will host a conference call today at 5:00 p.m. Eastern
Time to discuss its financial results for its first quarter fiscal
year 2024. The call will be hosted by Louis Têtu, Chairman and CEO,
and other members of its senior leadership team.
Conference Call: |
https://emportal.ink/44ijQei |
|
Use the link above to join the
conference call without operator assistance. If you prefer to have
operator assistance, please dial: 1-888-664-6392 |
Live
Webcast: |
https://app.webinar.net/beyXkqVMWK0 |
Webcast
Replay: |
ir.coveo.com under the “News
& Events” section |
|
|
Non-IFRS Measures and Ratios
Coveo’s unaudited condensed interim financial statements have
been prepared in accordance with IFRS as issued by the
International Accounting Standards Board. The information presented
in this press release includes non-IFRS financial measures and
ratios, namely (i) Adjusted Operating Loss; (ii) Adjusted Gross
Profit, Adjusted Product Gross Profit, and Adjusted Professional
Services Gross Profit (collectively referred to as our “Adjusted
Gross Profit Measures”); (iii) Adjusted Gross Margin, Adjusted
Product Gross Margin, and Adjusted Professional Services Gross
Margin (collectively referred to as our “Adjusted Gross Margin
Measures”); (iv) Adjusted Sales and Marketing Expenses, Adjusted
Research and Product Development Expenses, and Adjusted General and
Administrative Expenses (collectively referred to as our “Adjusted
Operating Expense Measures”); (v) Adjusted Sales and Marketing
Expenses (%), Adjusted Research and Product Development Expenses
(%), and Adjusted General and Administrative Expenses (%)
(collectively referred to as our “Adjusted Operating Expense (%)
Measures”); (vi) SaaS Subscription Revenue growth at constant
currency; (vii) total revenue growth at constant currency; (viii)
SaaS Subscription Revenue at constant currency; and (ix) total
revenue at constant currency (collectively, with the measures set
forth in (vi), (vii) and (viii) of the foregoing, the “Constant
Currency Measures and Ratios”). These measures and ratios are not
recognized measures under IFRS and do not have standardized
meanings prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies.
Rather, these measures and ratios are provided as additional
information to complement IFRS measures by providing further
understanding of the Company’s results of operations from
management’s perspective.
Accordingly, these measures and ratios should not be considered
in isolation nor as a substitute for analysis of the Company’s
financial information reported under IFRS. Adjusted Operating Loss,
the Adjusted Gross Profit Measures, the Adjusted Gross Margin
Measures, the Adjusted Operating Expense Measures, the Adjusted
Operating Expense (%) Measures and the Constant Currency Measures
and Ratios are used to provide investors with supplemental measures
and ratios of the Company’s operating performance and thus
highlight trends in Coveo’s core business that may not otherwise be
apparent when relying solely on IFRS measures and ratios. The
Company’s management also believes that securities analysts,
investors, and other interested parties frequently use non-IFRS
measures and ratios in the evaluation of issuers. Coveo’s
management uses and intends to continue to use non-IFRS measures
and ratios in order to facilitate operating performance comparisons
from period to period, and to prepare annual operating budgets and
forecasts.
See the “Non-IFRS Measures” section of our latest MD&A,
which is available under our profile on SEDAR+ at www.sedarplus.ca
for a description of these measures, other than the Constant
Currency Measures and Ratios which are defined in the tables
appended to this press release. Please refer to the financial
tables appended to this press release for a description of such
measures and a reconciliation of (i) Adjusted Operating Loss to
operating loss; (ii) Adjusted Gross Profit to gross profit; (iii)
Adjusted Product Gross Profit to product gross profit; (iv)
Adjusted Professional Services Gross Profit to professional
services gross profit; (v) Adjusted Sales and Marketing Expenses to
sales and marketing expenses; (vi) Adjusted Research and Product
Development Expenses to research and product development expenses;
(vii) Adjusted General and Administrative Expenses to general and
administrative expenses; (viii) SaaS Subscription Revenue at
constant currency to SaaS Subscription Revenue; (ix) total revenue
at constant currency to total revenue; (x) SaaS Subscription
Revenue growth at constant currency to SaaS Subscription Revenue
growth; and (xi) total revenue growth at constant currency to total
revenue growth.
Key Performance Indicators
This press release refers to “SaaS Subscription Revenue”,
“Current SaaS Subscription Remaining Performance Obligations”, and
“Net Expansion Rate”, which are operating metrics used in Coveo’s
industry. We monitor such key performance indicators to help us
evaluate our business, measure our performance, identify trends,
formulate business plans, and make strategic decisions. These key
performance indicators provide investors with supplemental measures
of our operating performance and thus highlight trends in our core
business that may not otherwise be apparent when relying solely on
IFRS measures. We also believe that securities analysts, investors,
and other interested parties frequently use industry metrics in the
evaluation of issuers. Our key performance indicators may be
calculated in a manner different than similar key performance
indicators used by other companies.
“SaaS Subscription Revenue” means Coveo’s SaaS subscription
revenue, as presented in our financial statements in accordance
with IFRS.
“Current SaaS Subscription Remaining Performance Obligations” is
a forward-looking indicator of anticipated future revenue under
contract that has not yet been recognized as revenue but that is
expected to be recognized over the next 12 months, as presented in
our financial statements in accordance with IFRS.
“Net Expansion Rate” is calculated by considering a cohort of
customers at the end of the period 12 months prior to the end of
the period selected and dividing the SaaS Annualized Contract Value
(as defined below) attributable to that cohort at the end of the
current period selected, by the SaaS Annualized Contract Value
attributable to that cohort at the beginning of the period 12
months prior to the end of the period selected. Expressed as a
percentage, the ratio (i) excludes any SaaS Annualized Contract
Value from new customers added during the 12 months preceding the
end of the period selected; (ii) includes incremental SaaS
Annualized Contract Value made to the cohort over the 12 months
preceding the end of the period selected; and (iii) is net of the
SaaS Annualized Contract Value from any customers whose
subscriptions terminated or decreased over the 12 months preceding
the end of the period selected.
“SaaS Annualized Contract Value” means the SaaS annualized
contract value of a customer’s commitments calculated based on the
terms of that customer’s subscriptions, and represents the
committed annualized subscription amount as of the measurement
date.
Please also refer to the “Key Performance Indicators” section of
our latest MD&A, which is available under our profile on SEDAR+
at www.sedarplus.ca, for additional details on the abovementioned
key performance indicators.
Forward-Looking Information
This press release contains “forward-looking information” and
“forward-looking statements” within the meaning of applicable
securities laws, including with respect to Coveo’s financial
outlook on SaaS Subscription Revenue, Total Revenue, and Adjusted
Operating Loss for the three months ending September 30, 2023 and
the year ending March 31, 2024 and expectations and timing around
achieving positive operating cash flow, as well as statements
around demand for Coveo Relevance Generative Answering and pipeline
generated through our partnership with SAP (collectively,
“forward-looking information”). This forward-looking information is
identified by the use of terms and phrases such as “may”, “would”,
“should”, ”could”, “might”, “will”, “achieve”, “occur”, “expect”,
“intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”,
“continue”, “target”, “opportunity”, “strategy”, “scheduled”,
“outlook”, “forecast”, “projection”, or “prospect”, the negative of
these terms and similar terminology, including references to
assumptions, although not all forward-looking information contains
these terms and phrases. In addition, any statements that refer to
expectations, intentions, projections, or other characterizations
of future events or circumstances contain forward-looking
information. Statements containing forward-looking information are
not historical facts but instead represent management’s
expectations, estimates, and projections regarding future events or
circumstances.
Coveo’s financial outlook on SaaS Subscription Revenue, Total
Revenue, and Adjusted Operating Loss also constitutes “financial
outlook” within the meaning of applicable securities laws and is
provided for the purposes of assisting the reader in understanding
the Company’s financial performance and measuring progress toward
management’s objectives and the reader is cautioned that it may not
be appropriate for other purposes. Please refer to “Financial
Outlook” above for more information.
Forward-looking information is necessarily based on a number of
opinions, estimates, and assumptions (including those discussed
under “Financial Outlook” above and those discussed immediately
hereunder) that we considered appropriate and reasonable as of the
date such statements are made. Although the forward-looking
information contained herein is based upon what we believe are
reasonable assumptions, actual results may vary from the
forward-looking information contained herein. Certain assumptions
made in preparing the forward-looking information contained in
herein include, without limitation (and in addition to those
discussed under “Financial Outlook” above): our ability to
capitalize on growth opportunities and implement our growth
strategy; our ability to attract new customers, both domestically
and internationally; the success of our efforts to expand our
product portfolio and market reach; our ability to maintain
successful strategic relationships with partners and other third
parties; market awareness and acceptance of enterprise AI solutions
in general and our products in particular; our future capital
requirements; the available liquidity under our revolving credit
facility; the accuracy of our estimates of market opportunity,
growth forecasts, and expectations and timing around achieving
positive operating cash flow; our success in identifying and
evaluating, as well as financing and integrating, any acquisitions,
partnerships, or joint ventures; our ability to execute on our
expansion plans; the significant influence of our principal
shareholders; our ability to convert pipeline into closed deals,
and the timeframe thereof; and the future impact of any worsening
of the COVID-19 pandemic. Moreover, forward-looking information is
subject to known and unknown risks, uncertainties, and other
factors, many of which are beyond our control, that may cause the
actual results, level of activity, performance, or achievements to
be materially different from those expressed or implied by such
forward-looking information, including but not limited to
macro-economic uncertainties and the risk factors described under
“Risk Factors” in the Company’s most recently filed Annual
Information Form available under our profile on SEDAR+ at
www.sedarplus.ca. There can be no assurance that such
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, prospective investors
should not place undue reliance on forward-looking information,
which speaks only as of the date made.
Moreover, we operate in a very competitive and rapidly changing
environment. Although we have attempted to identify important risk
factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other
risk factors not presently known to us or that we presently believe
are not material that could also cause actual results or future
events to differ materially from those expressed in such
forward-looking information.
You should not rely on this forward-looking information, as
actual outcomes and results may differ materially from those
contemplated by this forward-looking information as a result of
such risks and uncertainties. Additional information will also be
set forth in other public filings that we make available under our
profile on SEDAR+ at www.sedarplus.ca from time to time. The
forward-looking information provided in this press release relates
only to events or information as of the date hereof, and are
expressly qualified in their entirety by this cautionary statement.
Except as required by law, we do not assume any obligation to
update or revise any forward-looking information, whether as a
result of new information, future events, or otherwise, after the
date on which the statements are made or to reflect the occurrence
of unanticipated events.
About Coveo
We believe AI is a competitive imperative to deliver the
delightful and relevant digital experiences people expect, while
maximizing profitability. Coveo accelerates the application of AI
platforms in enterprises, helping them personalize and profitize
every experience at scale.
The Coveo Relevance Cloud™ AI platform is a market-leading AI
platform that enhances search, recommendations, personalization,
and merchandising intelligence in digital experiences across
commerce, service, website, and workplace applications. Coveo’s
platform includes analytics, AI model testing capabilities, and can
easily integrate into almost any digital user experience a large
enterprise delivers. Our platform is cloud-native SaaS,
multi-tenant, API-first, and headless.
Coveo has been a pioneer in the application of AI within the
enterprise. Our Coveo Relevance Generative Answering™ capability,
which integrates LLM technology with Coveo's platform to feed
generative AI with a common, secure unified index and real-time
content, helps to drive relevance at scale and consistent
factuality, with secure sources of truth across all channels.
Specifically, this helps to solve many of the key challenges of
utilizing generative AI for enterprise use cases.
We help hundreds of the world’s leading brands create tangible
financial value. We believe our platform is differentiated by its
sophisticated applied AI, designed to deliver highly relevant,
bespoke digital experiences that drive superior business outcomes.
In addition, our platform’s scalability, rapid time to value,
enterprise-grade security and compliance, and native integrations
with other third-party technology applications set us apart. We are
a Salesforce Summit ISVforce Partner, an SAPⓇ Endorsed App, and an
Adobe Gold Partner.
Coveo is a trademark of Coveo Solutions Inc.
Stay up to date on the latest Coveo news and content by
subscribing to the Coveo blog, and following Coveo
on LinkedIn, Twitter, and YouTube.
Contact InformationPaul MoonHead of Investor
Relationsinvestors@coveo.com Kiyomi HarringtonDirector, PR, Social
and Corporate Communicationskharrington@coveo.com
|
Condensed Interim Consolidated Statements of Loss and
Comprehensive Loss |
(expressed in thousands of US dollars, except share and per share
data, unaudited) |
|
|
Three months ended June 30, |
|
|
2023 |
|
2022 |
|
|
$ |
|
$ |
|
Revenue |
|
|
SaaS subscription |
28,535 |
|
24,003 |
|
Self-managed licenses and maintenance |
- |
|
324 |
|
Product
revenue |
28,535 |
|
24,327 |
|
Professional services |
1,997 |
|
2,135 |
|
Total
revenue |
30,532 |
|
26,462 |
|
|
|
|
Cost of
revenue |
|
|
Product |
5,128 |
|
4,758 |
|
Professional services |
1,544 |
|
1,977 |
|
Total cost of
revenue |
6,672 |
|
6,735 |
|
Gross
profit |
23,860 |
|
19,727 |
|
|
|
|
Operating
expenses |
|
|
Sales and marketing |
13,460 |
|
14,561 |
|
Research and product development |
9,182 |
|
9,132 |
|
General and administrative |
6,809 |
|
7,093 |
|
Depreciation of property and equipment |
577 |
|
692 |
|
Amortization of intangible assets |
1,006 |
|
1,161 |
|
Depreciation of right-of-use assets |
395 |
|
397 |
|
Total operating
expenses |
31,429 |
|
33,036 |
|
Operating
loss |
(7,569 |
) |
(13,309 |
) |
|
|
|
Net financial revenue |
(1,677 |
) |
(399 |
) |
Foreign exchange loss (gain) |
1,004 |
|
(500 |
) |
Loss before income tax
expense (recovery) |
(6,896 |
) |
(12,410 |
) |
Income tax expense
(recovery) |
59 |
|
109 |
|
Net loss |
(6,955 |
) |
(12,519 |
) |
|
|
|
Other comprehensive
loss |
|
|
Items that may be reclassified to the consolidated statements of
income (loss): |
|
|
Foreign currency differences on translation to presentation
currency |
3,428 |
|
(8,602 |
) |
Total comprehensive
loss |
(3,527 |
) |
(21,121 |
) |
|
|
|
Net loss per share – Basic and
diluted |
(0.07 |
) |
(0.12 |
) |
|
|
|
Weighted average number of
shares outstanding – Basic and diluted |
105,656,216 |
|
103,829,091 |
|
|
|
|
|
|
Condensed Interim Consolidated Statements of Loss and
Comprehensive Income Loss |
(expressed in thousands of US dollars, unaudited) |
|
The following table presents share-based payments and related
expenses recognized by the Company: |
|
|
Three months ended June 30, |
|
|
2023 |
|
2022 |
|
|
$ |
|
$ |
|
Share-based payments
and related expenses |
|
|
|
|
Product cost of revenue |
236 |
|
182 |
|
Professional services cost of revenue |
163 |
|
144 |
|
Sales and marketing |
40 |
|
1,531 |
|
Research and product development |
1,556 |
|
1,433 |
|
General and administrative |
1,752 |
|
1,185 |
|
Share-based payments
and related expenses |
3,747 |
|
4,475 |
|
|
|
|
|
|
Reconciliation of Adjusted Operating Loss to Operating
Loss |
(expressed in thousands of US dollars) |
|
|
Three months ended June 30, |
|
|
2023 |
|
2022 |
|
|
$ |
|
$ |
|
Operating
loss |
(7,569) |
|
(13,309) |
|
Share-based payments and related expenses (1) |
3,747 |
|
4,475 |
|
Amortization of acquired intangible assets (2) |
1,005 |
|
1,160 |
|
Acquisition-related compensation (3) |
- |
|
211 |
|
Adjusted Operating
Loss |
(2,817) |
|
(7,463) |
|
(1) |
These expenses relate to issued stock options, restricted share
units, and other awards under share-based plans to our employees
and directors as well as related payroll taxes that are directly
attributable to the share-based payments. These costs are included
in product and professional services cost of revenue, sales and
marketing, research and product development, and general and
administrative expenses. |
(2) |
These expenses represent the amortization of intangible assets
acquired through the acquisition of Qubit Digital Ltd (“Qubit”).
These costs are included in amortization of intangible assets. |
(3) |
These expenses relate to non-recurring acquisition-related
compensation in connection with acquisitions. These costs are
included in product and professional services cost of revenue, and
sales and marketing, research and product development, and general
and administrative expenses. |
|
|
Reconciliation of Adjusted Gross Profit Measures and
Adjusted Gross Margin Measures |
(expressed in thousands of US dollars) |
|
|
Three months ended June 30, |
|
|
2023 |
|
2022 |
|
|
$ |
|
$ |
|
Total
revenue |
30,532 |
|
26,462 |
|
Gross
profit |
23,860 |
|
19,727 |
|
Gross margin |
78% |
|
75% |
|
Add: Share-based payments and
related expenses |
399 |
|
326 |
|
Add: Acquisition-related
compensation |
- |
|
81 |
|
Adjusted Gross
Profit |
24,259 |
|
20,134 |
|
Adjusted Gross Margin |
79% |
|
76% |
|
|
|
|
Product
revenue |
28,535 |
|
24,327 |
|
Product cost of
revenue |
5,128 |
|
4,758 |
|
Product gross
profit |
23,407 |
|
19,569 |
|
Product gross margin |
82% |
|
80% |
|
Add: Share-based payments and
related expenses |
236 |
|
182 |
|
Add: Acquisition-related
compensation |
- |
|
60 |
|
Adjusted Product Gross
Profit |
23,643 |
|
19,811 |
|
Adjusted Product Gross
Margin |
83% |
|
81% |
|
|
|
|
Professional services
revenue |
1,997 |
|
2,135 |
|
Professional services
cost of revenue |
1,544 |
|
1,977 |
|
Professional services
gross profit |
453 |
|
158 |
|
Professional services gross
margin |
23% |
|
7% |
|
Add: Share-based payments and
related expenses |
163 |
|
144 |
|
Add: Acquisition-related
compensation |
- |
|
21 |
|
Adjusted Professional
Services Gross Profit |
616 |
|
323 |
|
Adjusted Professional Services
Gross Margin |
31% |
|
15% |
|
|
|
|
|
|
Reconciliation of Adjusted Operating Expense Measures and
Adjusted Operating Expense (%) Measures |
(expressed in thousands of US dollars) |
|
|
Three months ended June 30, |
|
|
2023 |
|
2022 |
|
|
$ |
|
$ |
|
Sales and marketing
expenses |
13,460 |
|
14,561 |
|
Sales and marketing expenses
(%) |
44% |
|
55% |
|
Less: Share-based payments and
related expenses |
40 |
|
1,531 |
|
Less: Acquisition-related
compensation |
- |
|
34 |
|
Adjusted Sales and
Marketing Expenses |
13,420 |
|
12,996 |
|
Adjusted Sales and Marketing
Expenses (%) |
44% |
|
49% |
|
|
|
|
Research and product
development expenses |
9,182 |
|
9,132 |
|
Research and product
development expenses (%) |
30% |
|
35% |
|
Less: Share-based payments and
related expenses |
1,556 |
|
1,433 |
|
Less: Acquisition-related
compensation |
- |
|
88 |
|
Adjusted Research and
Product Development Expenses |
7,626 |
|
7,611 |
|
Adjusted Research and Product
Development Expenses (%) |
25% |
|
29% |
|
|
|
|
General and
administrative expenses |
6,809 |
|
7,093 |
|
General and administrative
expenses (%) |
22% |
|
27% |
|
Less: Share-based payments and
related expenses |
1,752 |
|
1,185 |
|
Less: Acquisition-related
compensation |
- |
|
8 |
|
Adjusted General and
Administrative Expenses |
5,057 |
|
5,900 |
|
Adjusted General and
Administrative Expenses (%) |
17% |
|
22% |
|
|
|
|
|
|
Reconciliation of Constant Currency Measures and
Ratios |
(expressed in thousands of US dollars) |
|
|
Three months ended June 30, 2023 |
|
|
SaaS Subscription Revenue |
|
Total revenue |
|
|
$ |
|
$ |
|
SaaS Subscription Revenue and total revenue, as reported |
28,535 |
|
30,532 |
|
Foreign exchange impact on revenue |
178 |
|
186 |
|
SaaS Subscription Revenue and total revenue at
constant currency |
28,713 |
|
30,718 |
|
|
|
|
Revenue growth |
19% |
|
15% |
|
Revenue growth at constant
currency |
20% |
|
16% |
|
|
|
|
|
|
In this table, SaaS Subscription Revenue and total revenue in
currencies other than US dollars are converted into US dollars
using the exchange rates from the prior period rather than the
actual exchange rates in effect during the current period.
“SaaS Subscription Revenue at constant currency” means SaaS
Subscription Revenue of the Company as presented in our financial
statements in accordance with IFRS, adjusted for the impact of
foreign currency exchange fluctuations. SaaS Subscription Revenue
in currencies other than US dollars is converted into US dollars
using the exchange rates from the prior period rather than the
actual exchange rates in effect during the current period.
“SaaS Subscription Revenue growth at constant currency” means
the year-over-year change in SaaS Subscription Revenue at constant
currency divided by the reported SaaS Subscription Revenue in the
prior period.
“Total revenue at constant currency” means total revenue of the
Company as presented in our financial statements in accordance with
IFRS, adjusted for the impact of foreign currency exchange
fluctuations. Total revenue in currencies other than US dollars is
converted into US dollars using the exchange rates from the prior
period rather than the actual exchange rates in effect during the
current period.
“Total revenue growth at constant currency” means the
year-over-year change in total revenue at constant currency divided
by the reported total revenue in the prior period.
We believe the Constant Currency Measures and Ratios provide
helpful supplemental indicators on comparable SaaS Subscription
Revenue and total revenue growth by removing the effect of changes
in foreign currency exchange rates year-over-year to aid investors
better understand our performance.
|
Condensed
Interim Consolidated Statements of Financial Position |
(expressed in thousands of US dollars, unaudited) |
|
|
As of June 30,2023 |
|
As of March 31,2023 |
|
|
$ |
|
$ |
|
Assets |
|
|
Current assets |
|
|
Cash and cash equivalents |
201,169 |
|
198,452 |
|
Trade and other receivables |
26,419 |
|
24,233 |
|
Refundable tax credits |
9,545 |
|
7,142 |
|
Prepaid expenses |
6,799 |
|
8,707 |
|
|
243,932 |
|
238,534 |
|
Non-current assets |
|
|
Contract acquisition costs |
11,063 |
|
11,148 |
|
Property and equipment |
6,588 |
|
6,846 |
|
Intangible assets |
14,409 |
|
15,107 |
|
Right-of-use assets |
7,408 |
|
7,645 |
|
Deferred tax assets |
3,662 |
|
3,896 |
|
Goodwill |
26,062 |
|
25,642 |
|
Total
assets |
313,124 |
|
308,818 |
|
|
|
|
Liabilities |
|
|
Current liabilities |
|
|
Trade payable and accrued liabilities |
21,107 |
|
21,435 |
|
Current portion of deferred revenue |
60,000 |
|
55,260 |
|
Current portion of lease obligations |
2,082 |
|
1,929 |
|
Accrued liability for shares to be repurchased under substantial
issuer bid |
30,220 |
|
- |
|
|
113,409 |
|
78,624 |
|
Non-current liabilities |
|
|
Lease obligations |
8,605 |
|
8,940 |
|
Deferred tax liabilities |
2,599 |
|
2,721 |
|
Total liabilities |
124,613 |
|
90,285 |
|
Shareholders' equity |
|
|
Share capital |
869,749 |
|
868,409 |
|
Contributed surplus |
27,550 |
|
25,949 |
|
Deficit |
(668,379) |
|
(631,988) |
|
Accumulated other comprehensive loss |
(40,409) |
|
(43,837) |
|
Total shareholders' equity |
188,511 |
|
218,533 |
|
Total liabilities and
shareholders' equity |
313,124 |
|
308,818 |
|
|
|
|
|
|
Condensed
Interim Consolidated Statements of Cash Flows |
(expressed in thousands of US dollars, unaudited) |
|
|
Three months ended June 30, |
|
|
2023 |
|
2022 |
|
|
$ |
|
$ |
|
Cash flows from
operating activities |
|
|
Net loss |
(6,955) |
|
(12,519) |
|
Items not affecting cash |
|
|
Amortization of contract acquisition costs |
1,159 |
|
1,077 |
|
Depreciation of property and equipment |
577 |
|
692 |
|
Amortization of intangible assets |
1,006 |
|
1,161 |
|
Depreciation of right-of-use assets |
395 |
|
397 |
|
Share-based payments |
3,454 |
|
5,796 |
|
Interest on lease obligations |
141 |
|
170 |
|
Variation of deferred tax assets and liabilities |
41 |
|
83 |
|
Unrealized foreign exchange loss (gain) |
922 |
|
(500) |
|
|
|
|
Changes in non-cash working capital items |
268 |
|
5,048 |
|
|
1,008 |
|
1,405 |
|
|
|
|
Cash flows used in
investing activities |
|
|
Additions to property and equipment |
(154) |
|
(527) |
|
Additions to intangible assets |
- |
|
(5) |
|
|
(154) |
|
(532) |
|
|
|
|
Cash flows used in
financing activities |
|
|
Proceeds from exercise of stock options |
325 |
|
291 |
|
Tax withholding for net share settlement |
(372) |
|
- |
|
Payments on lease obligations |
(552) |
|
(633) |
|
Substantial issuer bid transaction costs |
(48) |
|
- |
|
|
(647) |
|
(342) |
|
|
|
|
Effect of foreign exchange
rate changes on cash and cash equivalents |
2,510 |
|
(5,935) |
|
|
|
|
Increase (decrease) in
cash and cash equivalents during the year |
2,717 |
|
(5,404) |
|
|
|
|
Cash and cash equivalents –
beginning of year |
198,452 |
|
223,072 |
|
|
|
|
Cash and cash
equivalents – end of year |
201,169 |
|
217,668 |
|
|
|
|
Cash |
31,819 |
|
45,088 |
|
Cash equivalents |
169,350 |
|
172,580 |
|
Coveo Solutions (TSX:CVO)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Coveo Solutions (TSX:CVO)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024