The top executive of Coveo says the firm posted strong subscription revenue in its latest earnings report.
Shares of Coveo were flat during late morning trading Wednesday after the Montreal-based software firm reported fourth quarter earnings along with fiscal 2025 results. According to a release from the company, which keeps its books in U.S. dollars, it reported a US$6.3 million net loss during the quarter, rising from a $4.1 million net loss during the same period a year earlier.
According to the company the net operating loss was impacted by an impairment loss of $2.9 million, stemming from a decision to formally depreciate its Qubit Platform.
Total revenue for the fourth quarter reached $34.4 million, rising around five per cent from $32.6 million a year earlier. Meanwhile SaaS subscription revenue rose about six per cent, reaching $32.6 million in the fourth quarter, rising from $30.7 million during the same period a year earlier.
“It was a very good quarter for us because…to understand the business model of Coveo, essentially 95 per cent plus of our revenue is subscription revenue from SaaS subscriptions of our unique platform,” Coveo CEO Louis Tetu said in an interview with BNN Bloomberg Wednesday.
“And that revenue is essentially highly recurring. It actually grew last quarter organically by about 107 per cent net of churn. So, it’s very stable, it’s very recurring and that revenue is 82 per cent gross margin.”
According to Tetu, the company provides a software platform for enterprises that “essentially becomes the spinal backbone for their digital experiences” that can be used for things like commerce and customer service.
Meanwhile the company said it had its best fourth quarter business bookings in its history. Coveo said in its guidance that it expects positive businesses booking momentum to continue in the 2026 fiscal year, ultimately accelerating its revenue growth.
“The more important part of the Coveo story here is that enterprises are now adopting AI. They have now moved from discovering and experimenting (with) AI to adopting AI into areas where they can really earn a lot of benefits,” Tetu said.
“And the technology we provide allows them to save a lot of money, slash costs in customer service, increase revenue in commerce and make employees far more proficient and with massive productivity gains.”
For the full 2025 fiscal year, the company reported a net loss of $13.8 million, compared to $23.6 million the previous year.
Revenue rose six per cent during the year, coming in at $133.3 million compared to $126.1 million a year earlier.
