Coveo's Q3 2025 Conference Call: A Glimpse into the Future of AI-Driven Digital Experiences

Wesley ParkMonday, Jan 20, 2025 5:06 pm ET
2min read



As we approach the midpoint of 2025, Coveo (TSX: CVO), the leading enterprise AI platform, has announced the date for its fiscal third quarter 2025 conference call. Scheduled for Monday, February 10, 2025, at 5:00 p.m. Eastern Time, the call will provide investors and stakeholders with an opportunity to discuss the company's financial results and strategic initiatives. In this article, we will delve into Coveo's recent performance, the impact of its strategic acquisition of Qubit, and the key drivers behind its strong SaaS subscription revenue growth.

Coveo's strategic acquisition of Qubit has had a significant impact on its financial performance and growth trajectory. While the Qubit Platform initially contributed to Coveo's revenue, its contribution has been declining as Coveo completes the integration of the Platform and IP acquired with Qubit. In the first quarter of fiscal 2025, Qubit Platform revenue was $1.9 million, a 34% decrease from the same period in the previous year. Similarly, in the second quarter of fiscal 2025, Qubit Platform revenue was $1.3 million, a 51% decrease from the same period in the previous year. Despite the decline in Qubit Platform revenue, Coveo's overall revenue has continued to grow, driven by its core platform and the increasing demand for generative AI solutions. In the first quarter of fiscal 2025, Coveo's total revenue was $32.2 million, a 6% increase from the same period in the previous year. In the second quarter of fiscal 2025, Coveo's total revenue was $32.7 million, a 5% increase from the same period in the previous year. This growth in total revenue demonstrates Coveo's ability to adapt and grow despite the challenges posed by the integration of the Qubit Platform.

One of the key drivers behind Coveo's strong SaaS subscription revenue growth in recent quarters has been its core platform. In the first quarter of fiscal 2025, SaaS subscription revenue for Coveo's core platform increased by 12% year-over-year to $28.7 million. This growth is likely due to the platform's ability to unify content securely and deliver AI search, AI recommendations, true personalization, and a trusted generative experience at every touchpoint with each individual customer, partner, and employee. Additionally, Coveo's Relevance Generative Answering product has seen strong momentum, representing approximately 20% of new bookings in the first quarter of fiscal 2025. This product integrates LLM technology with the Coveo platform to feed generative AI with a common, secured unified index and real-time content. The growing demand for generative AI solutions has likely contributed to the increase in SaaS subscription revenue.

Coveo's Relevance Generative Answering product has significantly contributed to its overall revenue and customer base expansion. In the first quarter of fiscal 2025, the product represented approximately 20% of new bookings. By the second quarter of fiscal 2025, the product's contribution to new bookings had grown, with more than 50% sequential increase in customer count. Coveo has also formed strategic partnerships with key players like Salesforce, AWS, and Shopify to integrate its Relevance Generative Answering product, expanding its reach and customer base. These partnerships enable Coveo to offer AI-powered search and generative experiences to a broader range of customers, driving increased conversion and revenue.

In conclusion, Coveo's fiscal third quarter 2025 conference call presents an opportunity for investors to gain insights into the company's financial performance and strategic initiatives. Despite the challenges posed by the integration of the Qubit Platform, Coveo has demonstrated strong revenue growth, driven by its core platform and the increasing demand for generative AI solutions. The company's Relevance Generative Answering product has played a significant role in contributing to its overall revenue and customer base expansion, and strategic partnerships have further enhanced its reach and customer base. As we look ahead to the remainder of 2025, investors should keep a close eye on Coveo's progress and the continued evolution of the AI-driven digital experiences market.