Coveo Solutions (TSE:CVO) Announces Quarterly Earnings Results

Coveo Solutions (TSE:CVO) released its quarterly earnings results on Thursday. The company reported C($0.09) earnings per share for the quarter, FiscalAI reports. The firm had revenue of C$54.77 million for the quarter. Coveo Solutions had a negative return on equity of 26.89% and a negative net margin of 19.27%.

Here are the key takeaways from Coveo Solutions’ conference call:

• Q1 execution was in line or better than expected, with total revenue of CAD 38.5 million, adjusted EBITDA of CAD 0.1 million versus a CAD 1.9 million loss a year earlier, and CAD 9.2 million in operating cash flow.
• Coveo closed its largest transaction to date, expanding an existing Fortune Global 500 technology customer to more than $10 million in annual subscription revenue; the expansion included additional use cases, regions, languages, and consumption.
• Demand for AI applications is increasing, with generative AI representing approximately 30% of Q1 bookings and early adoption of Conversational Search, Conversational Product Discovery, and Merchandising Copilot. Management said customers are moving from pilots toward production deployments tied to measurable business outcomes.
• The company reaffirmed fiscal 2027 guidance, including SaaS subscription revenue of $154 million–$158 million, total revenue of $160 million–$164 million, adjusted EBITDA of $2 million–$7 million, and operating cash flow above $10 million; management noted that the timing of large enterprise deals remains difficult to forecast.
• Reported net expansion rate was 102% for the Coveo Core platform and 99% including legacy Qubit customers, indicating that legacy cohorts continue to weigh on the consolidated metric even as strategic cohorts expand at stronger rates.

Coveo Solutions Stock Down 2.7%

CVO stock opened at C$4.33 on Friday. The company has a quick ratio of 3.14, a current ratio of 1.42 and a debt-to-equity ratio of 16.57. The business has a 50 day moving average price of C$4.28 and a two-hundred day moving average price of C$4.89. The company has a market cap of C$404.73 million, a price-to-earnings ratio of -14.43, a P/E/G ratio of 0.09 and a beta of 1.57. Coveo Solutions has a twelve month low of C$3.59 and a twelve month high of C$9.53.

Wall Street Analyst Weigh In

CVO has been the topic of a number of recent research reports. Stifel Nicolaus lowered their price objective on shares of Coveo Solutions from C$11.00 to C$9.00 and set a “buy” rating on the stock in a report on Friday, May 29th. National Bank Financial reduced their target price on shares of Coveo Solutions from C$7.00 to C$5.50 and set a “sector perform” rating for the company in a report on Wednesday, May 27th. TD decreased their target price on shares of Coveo Solutions from C$9.50 to C$6.50 and set a “buy” rating for the company in a research report on Thursday, May 28th. Finally, BMO Capital Markets lowered their price target on shares of Coveo Solutions from C$10.00 to C$6.00 and set an “outperform” rating on the stock in a research note on Thursday, May 28th. Six investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, Coveo Solutions presently has a consensus rating of “Moderate Buy” and a consensus target price of C$8.50.

About Coveo Solutions

Coveo brings superior AI-Relevance to every point-of-experience, transforming how enterprises connect with their customers and employees to maximize business outcomes. Relevance is about moving from persona to person, the degree to which the enterprise-wide content, products, recommendations, and advice presented to a person online aligns easily with their context, needs, preferences, behavior and intent, setting the competitive experience gold standard. Every person’s journey is unique, and only AI can solve the complexity of tailoring experiences across massive, diverse audiences and large volumes and variety of content and products.