Coveo Solutions Inc.: Coveo Reports First Quarter Fiscal 2025 Financial Results

SaaS Subscription Revenue⁽¹⁾ of $30.6 million, above the top end of previous guidance

Cash flows from operating activities of $3.0 million, a 200% improvement year-over-year

Continued momentum with Coveo Relevance Generative Answering

Coveo reports in U.S. dollars and in accordance with International Financial Reporting Standards ("IFRS")

MONTREAL and SAN FRANCISCO, Aug. 7, 2024 /PRNewswire/ - Coveo (TSX: CVO), the leading enterprise AI platform that brings AI search and generative AI ("GenAI") to every point-of-experience, enabling remarkable personalized digital experiences, today announced financial results for its first quarter of fiscal year 2025 ended June 30, 2024.

"I was pleased with our first quarter financial performance, which exceeded our revenue and profitability guidance," said Louis Têtu, Chairman and CEO of Coveo. "Following a transformative fiscal 2024, our industry-leading AI platform continues to drive positive business momentum. Most importantly, our customers are seeing exceptional outcomes from using our platform, and we believe we are well positioned against competitors when customers evaluate generative AI solutions. We believe this will position us well for success and a reacceleration of growth as we move through our fiscal 2025."

First Quarter Fiscal 2025 Summary Financial Highlights

The following table summarizes our financial results for the first quarter of fiscal year 2025:

In millions of U.S. Dollars, except as otherwise indicated	Q1 2025	Q1 2024	Change
SaaS Subscription Revenue(1)	$30.6	$28.5	7 %
Coveo core Platform(2)	$28.7	$25.7	12 %
Qubit Platform(3)	$1.9	$2.9	(34 %)
Total revenue	$32.2	$30.5	6 %
Gross margin	78 %	78 %	-
Product gross margin	82 %	82 %	-
Net loss	($6.1)	($7.0)	12 %
Adjusted EBITDA(4)	($1.7)	($1.8)	8 %
Cash flows from operating activities	$3.0	$1.0	200 %

First Quarter Fiscal 2025 Financial Highlights
(All comparisons are relative to the three-month period ended June 30, 2023, unless otherwise stated)

• SaaS Subscription Revenue⁽¹⁾ of $30.6 million compared to $28.5 million, an increase of 7%, and above the top end of guidance. Within this, SaaS Subscription Revenue for Coveo's core Platform⁽²⁾ was $28.7 million, an increase of 12%.
• Total revenue was $32.2 million compared to $30.5 million, an increase of 6%, and above the top end of guidance.
• Gross margin and product gross margin were 78% and 82% respectively, consistent with the prior year.
• Operating loss was $8.2 million compared to $7.6 million, and net loss was $6.1 million compared to $7.0 million.
• Adjusted EBITDA⁽⁴⁾ was ($1.7) million compared to ($1.8) million, and ahead of guidance.
• Cash flows from operating activities were $3.0 million compared to $1.0 million, an increase of 200%.
• Cash and cash equivalents were $167.7 million as of June 30, 2024.
• Net Expansion Rate⁽¹⁾ of 101% as of June 30, 2024. Net Expansion Rate⁽¹⁾ was 106% excluding customer attrition from customers using the Qubit Platform⁽⁵⁾.

Other Business and Subsequent Highlights

• Announced that John Grosshans, a seasoned executive with extensive SaaS experience, has been appointed as Chief Revenue Officer. Mr. Grosshans has more than 30 years of global sales management experience in numerous SaaS verticals, including most recently cloud and applications.
• Coveo's Relevance Generative Answering product continues to see strong momentum, and represented approximately 20% of new bookings in the quarter. In addition to positive ongoing demand from existing customers, Coveo has also now secured net new GenAI customer wins.
• Won the "AI Search Innovation Award" in the seventh annual AI Breakthrough Awards. This prestigious award is presented by AI Breakthrough, a leading market intelligence organization that recognizes the top companies, technologies and products in the global AI market today.
• On July 12, Coveo announced that it had completed the purchase of 6,493,506 of its subordinate voting shares (including 45,343 multiple voting shares on an as-converted basis) at C$7.70 per share under its substantial issuer bid (commenced June 4, 2024), for an aggregate purchase price of C$50 million, and that it had also renewed its normal course issuer bid ("NCIB") and its Automatic Securities Purchase Plan with a designated broker. Under the NCIB, Coveo is allowed to buy back up to 2,690,573 of its subordinate voting shares over the twelve-month period beginning on July 17, 2024 and ending on July 16, 2025.

Financial Outlook

Our financial outlook includes the assumption that the remaining revenue from the acquired Qubit Platform will continue to decline, as Coveo completes its integration of the platform and IP that was acquired with Qubit. Coveo anticipates SaaS Subscription Revenue⁽¹⁾, Total Revenue, and Adjusted EBITDA⁽⁴⁾ for Q2 FY'25 and fiscal year 2025 to be in the following ranges:

	Q2 FY'25	Full Year FY'25
SaaS Subscription Revenue(1)	$30.6 - $31.0 million	$126.0 - $130.0 million
Total Revenue	$32.0 - $32.4 million	$133.0 - $138.0 million
Adjusted EBITDA(4)	($0.5) - $0.0 million	$0.0 - $4.0 million

The company continues to anticipate achieving positive cash flow from operations of approximately $10 million for Fiscal 2025.

These statements are forward-looking and actual results may differ materially. Coveo's outlook constitutes "financial outlook" within the meaning of applicable securities laws and is provided for the purpose of, among other things, assisting investors and others in understanding certain key elements of our expected financial results, as well as our objectives, strategic priorities and business outlook, and in obtaining a better understanding of our anticipated operating environment. Investors and others are cautioned that it may not be appropriate for other purposes. Please refer to the "Forward-Looking Information" and "Financial Outlook Assumptions" sections below for additional information on the factors that could cause our actual results to differ materially from these forward-looking statements and a description of the assumptions underlying same.

Q1 Conference Call and Webcast Information

Coveo will host a conference call today at 5:00 p.m. Eastern Time to discuss its financial results for its first quarter of fiscal year 2025. The call will be hosted by Louis Têtu, Chairman and CEO, and other members of its senior leadership team.

Conference Call:	https://emportal.ink/3LxF68t
	Use the link above to join the conference call without operator assistance. If you prefer to have operator assistance, please dial: 1-800-836-8184
Live Webcast:	https://app.webinar.net/ybgRj5DZOoW
Webcast Replay:	ir.coveo.com under the "News & Events" section

Non-IFRS Measures and Ratios

Coveo's unaudited condensed interim consolidated financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board. The information presented in this press release includes non-IFRS financial measures and ratios, namely (i) Adjusted EBITDA; (ii) Adjusted Gross Profit, Adjusted Product Gross Profit, and Adjusted Professional Services Gross Profit (collectively referred to as our "Adjusted Gross Profit Measures"); (iii) Adjusted Gross Margin, Adjusted Product Gross Margin, and Adjusted Professional Services Gross Margin (collectively referred to as our "Adjusted Gross Margin Measures"); (iv) Adjusted Sales and Marketing Expenses, Adjusted Research and Product Development Expenses, and Adjusted General and Administrative Expenses (collectively referred to as our "Adjusted Operating Expense Measures"); and (v) Adjusted Sales and Marketing Expenses (%), Adjusted Research and Product Development Expenses (%), and Adjusted General and Administrative Expenses (%) (collectively referred to as our "Adjusted Operating Expense (%) Measures"). These measures and ratios are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures and ratios are provided as additional information to complement IFRS measures by providing further understanding of the company's results of operations from management's perspective.

Accordingly, these measures and ratios should not be considered in isolation nor as a substitute for analysis of the company's financial information reported under IFRS. Adjusted EBITDA, the Adjusted Gross Profit Measures, the Adjusted Gross Margin Measures, the Adjusted Operating Expense Measures, and the Adjusted Operating Expense (%) Measures are used to provide investors with supplemental measures and ratios of the company's operating performance and thus highlight trends in Coveo's core business that may not otherwise be apparent when relying solely on IFRS measures and ratios. The company's management also believes that securities analysts, investors, and other interested parties frequently use non-IFRS financial measures and ratios in the evaluation of issuers. Coveo's management uses non-IFRS financial measures and ratios in order to facilitate operating performance comparisons from period to period, and to prepare annual operating budgets and forecasts.

See the "Non-IFRS Measures" section of our MD&A for the quarter ended June 30, 2024, which is available as of the date hereof under our profile on SEDAR+ at www.sedarplus.ca for a description of these measures. Please refer to the financial tables appended to this press release for additional information including a reconciliation of (i) Adjusted EBITDA to net loss; (ii) Adjusted Gross Profit to gross profit; (iii) Adjusted Product Gross Profit to product gross profit; (iv) Adjusted Professional Services Gross Profit to professional services gross profit; (v) Adjusted Sales and Marketing Expenses to sales and marketing expenses; (vi) Adjusted Research and Product Development Expenses to research and product development expenses; and (vii) Adjusted General and Administrative Expenses to general and administrative expenses.

Key Performance Indicators

This press release refers to "SaaS Subscription Revenue" and "Net Expansion Rate". They are operating metrics used in Coveo's industry. We monitor our key performance indicators to help us evaluate our business, measure our performance, identify trends, formulate business plans, and make strategic decisions. Our key performance indicators provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors, and other interested parties frequently use industry metrics in the evaluation of issuers. Certain of our key performance indicators are measures that do not have any standardized meaning prescribed by IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers and cannot be reconciled to a directly comparable IFRS measure. Our key performance indicators may be calculated and designated in a manner different than similar key performance indicators used by other companies.

"SaaS Subscription Revenue" means the company's SaaS subscription revenue, as presented in our financial statements in accordance with IFRS.

"Net Expansion Rate" is calculated by considering a cohort of customers at the end of the period 12 months prior to the end of the period selected and dividing the SaaS Annualized Contract Value ("SaaS ACV", as defined below) attributable to that cohort at the end of the current period selected, by the SaaS ACV attributable to that cohort at the beginning of the period 12 months prior to the end of the period selected. Expressed as a percentage, the ratio (i) excludes any SaaS ACV from new customers added during the 12 months preceding the end of the period selected; (ii) includes incremental SaaS ACV made to the cohort over the 12 months preceding the end of the period selected; (iii) is net of the SaaS ACV from any customers whose subscriptions terminated or decreased over the 12 months preceding the end of the period selected; and (iv) is currency neutral and as such, excludes the effect of currency variation.

In this section and throughout this press release, "SaaS Annualized Contract Value" means the SaaS annualized contract value of a customer's commitments calculated based on the terms of that customer's subscriptions, and represents the committed annualized subscription amount as of the measurement date.

Please also refer to the "Key Performance Indicators" section of our latest MD&A, which is available under our profile on SEDAR+ at www.sedarplus.ca, for additional details on the abovementioned key performance indicators.

Forward-Looking Information

This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws, including with respect to Coveo's "financial outlook" (within the meaning of applicable securities laws) and related assumptions (as set forth below and elsewhere in this press release) for the three months ending September 30, 2024 and the year ending March 31, 2025 (for greater certainty, for cash flows from operations, solely the year ending March 31, 2025), and expectations regarding the remaining Qubit SaaS ACV, bookings performance and gross retention rates for fiscal 2025 (collectively, "forward-looking information"). This forward-looking information is identified by the use of terms and phrases such as "may", "would", "should", "could", "might", "will", "achieve", "occur", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", "continue", "target", "opportunity", "strategy", "scheduled", "outlook", "forecast", "projection", or "prospect", the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking information contains these terms and phrases. In addition, any statements that refer to expectations, intentions, projections, or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates, and projections regarding future events or circumstances.

Forward-looking information is necessarily based on a number of opinions, estimates, and assumptions (including those discussed under "Financial Outlook Assumptions" below and those discussed immediately hereunder) that we considered appropriate and reasonable as of the date such statements are made. Although the forward-looking information contained herein is based upon what we believe are reasonable assumptions, actual results may vary from the forward-looking information contained herein. Certain assumptions made in preparing the forward-looking information contained in herein include, without limitation (and in addition to those discussed under "Financial Outlook Assumptions" below): our ability to capitalize on growth opportunities and implement our growth strategy; our ability to attract new customers, expand our relationships with existing customers, and have existing customers renew their subscriptions; our ability to maintain successful strategic relationships with partners and other third parties; market awareness and acceptance of enterprise AI solutions in general and our products in particular; the market penetration of our new generative AI solutions, both with new and existing customers, and our ability to capture the generative AI opportunity; our future capital requirements, and availability of capital generally; the accuracy of our estimates of market opportunity, growth forecasts, and expectations around cash flow; our success in identifying and evaluating, as well as financing and integrating, any acquisitions, partnerships, or joint ventures; the significant influence of our principal shareholders; and our ability to convert pipeline into closed deals, and the timeframe thereof. Moreover, forward-looking information is subject to known and unknown risks, uncertainties, and other factors, many of which are beyond our control, that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to macro-economic uncertainties and the risk factors described under "Risk Factors" in the company's most recently filed Annual Information Form and under "Key Factors Affecting our Performance" in the company's most recently filed MD&A, both available under our profile on SEDAR+ at. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, prospective investors should not place undue reliance on forward-looking information, which speaks only as of the date made. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information.

You should not rely on this forward-looking information, as actual outcomes and results may differ materially from those contemplated by this forward-looking information as a result of such risks and uncertainties. Additional information will also be set forth in other public filings that we make available under our profile on SEDAR+ at www.sedarplus.ca from time to time. The forward-looking information provided in this press release relates only to events or information as of the date hereof, and is expressly qualified in their entirety by this cautionary statement. Except as required by law, we do not assume any obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Financial Outlook Assumptions

Our financial outlook under the "Financial Outlook" section above and elsewhere in this press release is based on several assumptions, including the following, in addition to those set forth under the "Financial Outlook" section above and under the "Forward-Looking Information" section above:

• The majority of the remaining Qubit SaaS ACV⁽⁶⁾ will churn by the end of the fiscal year, with the revenue impact being that the SaaS Subscription Revenue⁽¹⁾ recognized in fiscal 2025 for subscriptions to the Qubit Platform will decline by approximately half.
• Bookings performance building during fiscal 2025, with the second half exceeding the first half.
• Maintaining gross retention rates⁽⁷⁾ at their historical levels.
• Achieving expected levels of sales of SaaS subscriptions to new and existing customers, including timing of those sales, as well as expected levels of renewals of SaaS subscriptions with existing customers.
• Achieving expected levels of implementations and other sources of professional services revenue.
• Maintaining planned levels of operating margin represented by our Adjusted Gross Profit Measures⁽⁴⁾ and Adjusted Gross Margin Measures⁽⁸⁾.
• The market for our solutions showing ongoing improvements in line with our expectations.
• Our ability to attract and retain key personnel required to achieve our plans.
• Foreign exchange rates environment remaining consistent, and similar or better inflation rates, interest rates, customer spending, and other macro-economic conditions.
• Our ability to collect from our customers as planned, and to otherwise manage our cash inflows (including government grants and tax credits) and outflows as we currently expect.
• Expected financial performance as measured by our Adjusted Operating Expense Measures⁽⁴⁾ and Adjusted Operating Expense (%) Measures⁽⁸⁾.

Our financial outlook does not include the impact of acquisitions that may be announced or closed from time to time.

Notes to this press release:
(1)	SaaS Subscription Revenue and Net Expansion Rate are Key Performance Indicators of Coveo. Please see the "Key Performance Indicators" section below.
(2)	SaaS Subscription Revenue earned in connection with subscriptions by customers to the Coveo core Platform for the period, and thus excluding revenue from subscriptions to the Qubit Platform.
(3)	SaaS Subscription Revenue earned through subscriptions to the Qubit Platform for the period covered.
(4)	The Adjusted Gross Profit Measures, the Adjusted Operating Expense Measures, and Adjusted EBITDA are non-IFRS financial measures which may not be comparable to similar measures or ratios used by other companies. Please see the "Non-IFRS Measures and Ratios" section below and the reconciliation tables within this release.
(5)	Net Expansion Rate excluding the effect of SaaS ACV attributable to subscriptions to the Qubit Platform.
(6)	SaaS ACV means the SaaS annualized contract value of a customer's commitments calculated based on the terms of that customer's subscriptions, and represents the committed annualized subscription amount as of the measurement date.
(7)	Gross retention rate ("GRR") is generally calculated for a period by subtracting SaaS ACV contractions and losses over the period selected from SaaS ACV at the beginning of the period selected and dividing the result by the SaaS ACV from the beginning of the period selected. We use GRR to provide insight into the company's success in retaining existing customers.
(8)	The Adjusted Gross Margin Measures, the Adjusted Operating Expense (%) Measures, and Adjusted Product Gross Margin are non-IFRS ratios. Please see the "Non-IFRS Measures and Ratios" section below and the reconciliation tables within this release.

About Coveo

We strongly believe that the future is business-to-person. That experiences are today's competitive front line, a make or break for every business. We also believe that remarkable experiences not only enhance user satisfaction but also yield significant gains for enterprises. That is what we call the AI-experience advantage - the degree to which the content, products, recommendations, and advice presented to a person online aligns easily with their needs, intent, preferences, context, and behavior, resulting in superior business outcomes.

To realize this AI-experience advantage at scale, enterprises require a robust, spinal and composable infrastructure capable of unifying content securely and delivering AI search, AI recommendations, true personalization, and a trusted generative experience at every touchpoint with each individual customer, partner and employee. Coveo is dedicated to bringing this advantage to every point-of-experience, using powerful data and AI models to transform the enterprise in commerce, customer service, website, and workplace.

The Coveo platform is ISO 27001 and ISO 27018 certified, SOC2 compliant, and HIPAA compatible, with a 99.999% SLA available. We are a Salesforce AppExchange Partner, an SAP^? Endorsed App, an Adobe Technology Gold Partner, a MACH Alliance member, and a Genesys AppFoundry^? ISV Partner.

Coveo is a trademark of Coveo Solutions Inc.

Stay up to date on the latest Coveo news and content by subscribing to the Coveo blog, and following Coveo on LinkedIn, Twitter, and YouTube.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(expressed in thousands of U.S. dollars, except share and per share data, unaudited)

	Three months ended June 30,
	2024	2023
	$	$
Revenue
SaaS subscription	30,557	28,535
Professional services	1,660	1,997
Total revenue	32,217	30,532
Cost of revenue
SaaS subscription	5,617	5,128
Professional services	1,354	1,544
Total cost of revenue	6,971	6,672
Gross profit	25,246	23,860
Operating expenses
Sales and marketing	14,527	13,460
Research and product development	10,397	9,182
General and administrative	6,663	6,809
Depreciation of property and equipment	747	577
Amortization and impairment of intangible assets	725	1,006
Depreciation of right-of-use assets	378	395
Total operating expenses	33,437	31,429
Operating loss	(8,191)	(7,569)
Net financial revenue	(1,726)	(1,677)
Foreign exchange loss (gain)	(981)	1,004
Loss before income tax expense	(5,484)	(6,896)
Income tax expense	620	59
Net loss	(6,104)	(6,955)
Net loss per share - Basic and diluted	(0.06)	(0.07)
Weighted average number of shares outstanding - Basic and diluted	102,888,475	105,656,216

Condenses Interim Consolidated Statements of Loss and Comprehensive Income Loss
(expressed in thousands of U.S. dollars, unaudited)

The following table presents share-based payments and related expenses recognized by the company:

	Three months ended June 30,
	2024	2023
	$	$
Share-based payments and related expenses
SaaS subscription cost of revenue	138	236
Professional services cost of revenue	39	163
Sales and marketing	929	40
Research and product development	1,487	1,556
General and administrative	1,772	1,752
Share-based payments and related expenses	4,365	3,747

Reconciliation of Net Loss to Adjusted EBITDA
(expressed in thousands of U.S. dollars, unaudited)

	Three months ended June 30,
	2024	2023
	$	$
Net loss	(6,104)	(6,955)
Net financial revenue	(1,726)	(1,677)
Foreign exchange loss (gain)	(981)	1,004
Income tax expense	620	59
Share-based payments and related expenses(1)	4,365	3,747
Amortization and impairment of intangible assets	725	1,005
Depreciation expenses(2)	1,125	973
Transaction-related expenses(3)	274	-
Adjusted EBITDA	(1,702)	(1,844)

(1)	These expenses relate to issued stock options and share-based awards under our share-based plans to our employees and directors as well as related payroll taxes that are directly attributable to the share-based payments. These costs are included in product and professional services cost of revenue, sales and marketing, research and product development, and general and administrative expenses.
(2)	Depreciation expenses include depreciation of property and equipment and depreciation of right-of-use assets.
(3)	These expenses relate to professional, legal, consulting, accounting, advisory, and other fees relating to transactions that would otherwise not have been incurred. These costs are included in general and administrative expenses.

Condensed Interim Consolidated Statements of Financial Position
(expressed in thousands of U.S. dollars, unaudited)

	Three months ended June 30,
	2024	2023
	$	$
Total revenue	32,217	30,532
Gross profit	25,246	23,860
Gross margin	78 %	78 %
Add: Share-based payments and related expenses	177	399
Adjusted Gross Profit	25,423	24,259
Adjusted Gross Margin	79 %	79 %
Product revenue	30,557	28,535
Product cost of revenue	5,617	5,128
Product gross profit	24,940	23,407
Product gross margin	82 %	82 %
Add: Share-based payments and related expenses	138	236
Adjusted Product Gross Profit	25,078	23,643
Adjusted Product Gross Margin	82 %	83 %
Professional services revenue	1,660	1,997
Professional services cost of revenue	1,354	1,544
Professional services gross profit	306	453
Professional services gross margin	18 %	23 %
Add: Share-based payments and related expenses	39	163
Adjusted Professional Services Gross Profit	345	616
Adjusted Professional Services Gross Margin	21 %	31 %

Reconciliation of Adjusted Operating Expense Measures and Adjusted Operating Expense (%) Measures
(expressed in thousands of U.S. dollars, unaudited)

	Three months ended June 30,
	2024	2023
	$	$
Sales and marketing expenses	14,527	13,460
Sales and marketing expenses (% of total revenue)	45 %	44 %
Less: Share-based payments and related expenses	929	40
Adjusted Sales and Marketing Expenses	13,598	13,420
Adjusted Sales and Marketing Expenses (% of total revenue)	42 %	44 %
Research and product development expenses	10,397	9,182
Research and product development expenses (% of total revenue)	32 %	30 %
Less: Share-based payments and related expenses	1,487	1,556
Adjusted Research and Product Development Expenses	8,910	7,626
Adjusted Research and Product Development Expenses (% of total revenue)	28 %	25 %
General and administrative expenses	6,663	6,809
General and administrative expenses (% of total revenue)	21 %	22 %
Less: Share-based payments and related expenses	1,772	1,752
Less: Transaction-related expenses	274	-
Adjusted General and Administrative Expenses	4,617	5,057
Adjusted General and Administrative Expenses (% of total revenue)	14 %	17 %

Condensed Interim Consolidated Statements of Financial Position
(expressed in thousands of U.S. dollars, unaudited)

	June 30, 2024	March 31, 2024
	$	$
Assets
Current assets
Cash and cash equivalents	167,746	166,586
Trade and other receivables	30,733	29,947
Government assistance	5,226	9,987
Prepaid expenses	8,412	8,622
	212,117	215,142
Non-current assets
Contract acquisition costs	9,835	10,168
Property and equipment	5,108	5,608
Intangible assets	7,999	8,710
Right-of-use assets	5,502	6,032
Deferred tax assets	3,370	4,265
Goodwill	25,985	25,960
Total assets	269,916	275,885
Liabilities
Current liabilities
Trade payable and accrued liabilities	20,831	21,822
Deferred revenue	64,818	64,731
Current portion of lease obligations	2,089	2,153
Accrued liability for shares to be repurchased under substantial issuer bid	36,550	-
	124,288	88,706
Non-current liabilities
Lease obligations	6,243	6,885
Deferred tax liabilities	1,620	1,771
Total liabilities	132,151	97,362
Shareholders' equity
Share capital	838,279	836,271
Contributed surplus	42,447	40,484
Deficit	(698,959)	(655,598)
Accumulated other comprehensive loss	(44,002)	(42,634)
Total shareholders' equity	137,765	178,523
Total liabilities and shareholders' equity	269,916	275,885

Condensed Interim Consolidated Statements of Cash Flows
(expressed in thousands of U.S. dollars, unaudited)

	Three months ended June 30,
	2024	2023
	$	$
Cash flows from operating activities
Net loss	(6,104)	(6,955)
Items not affecting cash
Amortization of contract acquisition costs	1,091	1,159
Depreciation of property and equipment	747	577
Amortization and impairment of intangible assets	725	1,006
Depreciation of right-of-use assets	378	395
Share-based payments	4,865	3,454
Interest on lease obligations	116	141
Deferred income tax recovery	588	41
Unrealized foreign exchange loss (gain)	(1,082)	922
Changes in non-cash working capital items	1,705	268
	3,029	1,008
Cash flows used in investing activities
Additions to property and equipment	(367)	(154)
Additions to intangible assets	(3)	-
	(370)	(154)
Cash flows used in financing activities
Proceeds from exercise of stock options	588	325
Tax withholding for net share settlement	(976)	(372)
Payments on lease obligations	(638)	(552)
Substantial issuer bid transaction costs	(38)	(48)
	(1,064)	(647)
Effect of foreign exchange rate changes on cash and cash equivalents	(435)	2,510
Increase in cash and cash equivalents during the period	1,160	2,717
Cash and cash equivalents - beginning of period	166,586	198,452
Cash and cash equivalents - end of period	167,746	201,169
Cash	18,827	31,819
Cash equivalents	148,919	169,350

SOURCE Coveo Solutions Inc.