Market MoversOn The Rise Coveo Solutions Inc., a Montreal-based enterprise software firm, surged following the late Monday release of better-than-expected third-quarter 2024 financial results and an increase to its full-year guidance, driven by “strong early interest” in its generative artificial intelligence platform.
Revenue came in at $31.8-million, up 11 per cent year-over-year and above both the company’s guidance of $30.9-$31.4-million and the Street’s expectation of $31.3-million with software-as-a-service subscription revenue jumping 13 per cent. An adjusted EBITDA loss of $0.7-million was also better than anticipated (a loss of $1.9-million).
Coveo now expects fiscal 2024 revenue of $125-$126.1-million, up from $124.5-$125.5-million, and an SaaS subscription revenue of $118-$118.5-million, up from $117-118-million. Its operating loss assumption is now $7.5-$8.5-million, shrinking from $9.5-$10.5-million.
“Coveo reported Q3/F24 results which were ahead of the Street’s and our expectations both on the top and bottom lines. Q4/F24 total revenue, SaaS revenue and adj. operating loss guidance were all above expectations, which flowed into an increase in the annual guidance,” said Eight Capital analyst Adhir Kadve. “While the macro continues to present some uncertainty, RGA and the SAP channel continue to be offsetting factors and drive strength. To that end, the two initiatives drove the strongest overall bookings quarter and the strongest new logo bookings quarter since F22. The strength in bookings was in-line with management expectations communicated throughout this fiscal year and represents strong early evidence, which should lead to a reacceleration of growth in F25 and thus validate management’s execution on its two key initiatives (RGA and the SAP channel) and thus our broader thesis on the name.”