Q1 2026 Coveo Solutions Inc Earnings Call Transcript
Key Points
- Coveo Solutions Inc (CVOSF) reported the strongest Q1 bookings performance in company history, with SaaS subscription revenue growing to $34.2 million, exceeding guidance.
- The company's core Coveo platform SaaS subscription revenue growth rate accelerated to 16% year-over-year, with a net expansion rate (NER) of 108%.
- Coveo's generative AI solutions showed strong performance, with significant expansion transactions, including a landmark deal with SAP, leading to over EUR8 million in annual cost savings.
- Commerce remains the fastest-growing use case for Coveo, with new business bookings growing by 60% year-over-year, driven by notable customer wins such as s.Oliver Group and Airgas.
- Coveo's platform is recognized for its ability to deliver measurable business results, such as increased conversion, revenue, and profitability, across both B2C and B2B commerce.
- Coveo Solutions Inc (CVOSF) reported an adjusted EBITDA loss of $1.9 million compared to a $1.7 million loss last year.
- Revenue from the Qubit platform decreased by nearly 50% from last year, with expectations of full churn this year.
- The company continues to face challenges in professional services revenue, which is declining as more work is leveraged to partners.
- Despite strong demand signals, there is still uncertainty in achieving the targeted 20% growth rate by the end of the fiscal year.
- The company is making significant investments in expanding its field organization, which may take time to convert into bookings and impact short-term profitability.
Good afternoon, ladies and gentlemen, and welcome to the Coveo first-quarter fiscal 2026 financial results conference call. (Operator Instructions) This call is being recorded on Thursday, July 31, 2025.
I would now like to turn the conference over to Mr. Adhir Kadve. Please go ahead.
Good afternoon, everyone, and thank you for joining us. With me to discuss Coveo's fiscal first quarter 2026 results are Laurent Simoneau, Coveo's Co-Founder and Chief Executive Officer; Louis Têtu, Coveo's Executive Chairman; and Brandon Nussey, Coveo's Chief Financial Officer.
A reminder that some remarks made today will be forward-looking statements within the meaning of applicable securities laws, including those regarding our plans, objectives, expected performance, and our outlook for the second fiscal quarter and full year fiscal 2026. These are forward-looking statements given as of July 31, 2025, and while we believe any statements we make are reasonable, they are based on current expectations and
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