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Canada's Coveo Q2 loss narrows as revenue rises; announces Anglera acquisition

By Reuters News


Overview

  • Canada AI search platform's Q2 revenue rose 8% yr/yr to $40.4 mln

  • Q2 loss per share of $0.03 missed analyst expectations

  • Company acquired Anglera and completed share buybacks totaling about C$11 mln


Outlook

  • Coveo sees Q3 SaaS subscription revenue of $39.7 mln to $40.2 mln

  • Coveo expects FY27 total revenue of $160 mln-$162 mln and adjusted EBITDA of $2 mln-$7 mln

  • Coveo forecasts FY27 operating cash flows of more than $10 mln


Result Drivers

  • NEW BUSINESS BOOKINGS - Co said record new business bookings were driven by ongoing large deal momentum, including two seven-figure per year transactions

  • GENERATIVE AI SOLUTIONS - Generative AI solutions accounted for more than 50% of new business bookings in the quarter

  • CORE PLATFORM - Coveo core Platform SaaS subscription revenue rose 12% yr/yr to $39.1 mln as the legacy Qubit platform was fully deprecated


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Loss Per Share

Miss

$0.03

$0.01 (4 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy."

  • Wall Street's median 12-month price target for Coveo Solutions Inc. is C$5.75, about 19.3% above its October 28 closing price of C$4.82

  • The stock recently traded at 62 times the next 12-month earnings vs. a P/E of 92 three months ago


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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