fund manager Martin Mathieu comment Coveo Solutions provides AI platforms that enable individualized, connected, and trusted digital experiences. Its AI platform powers search, recommendations, and generative answering in digital experiences across commerce, service, website, and workplace applications.
Coveo was another SaaS company with modest growth, near EBITDA breakeven, and trading at 1.5x EV/Revenue. With all the hype around AI lately, I thought the valuation looked attractive for a company in this sector.
The results were better than expected, with subscription revenue and EBITDA surpassing the previously issued guidance. Management also highlighted strengthening customer demand and increased momentum going into the second half of the fiscal year. The shares soared 43% higher in the days following the release.
Stock price when profiled (Oct 30): $5.25
Closing stock price yesterday (Nov 26): $7.42
Return: + 41%