Technology

Coveo Reports Third Quarter Fiscal 2025 Financial Results

Published

1 year ago

February 10, 2025

SaaS Subscription Revenue(1) of $32.3 million, at the top end of previous guidance
Record new bookings in the quarter, with accelerating contribution from Commerce
Continued Generative AI momentum, with 36% growth in customers since Sept 30, 2024

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

MONTREAL and SAN FRANCISCO, Feb. 10, 2025 /CNW/ – Coveo (TSX: CVO), the market leader in AI-Relevance — delivering AI-search, generative, and business-aware relevance at every point-of-experience —, today announced financial results for its third quarter of fiscal year 2025 ended December 31, 2024.

“Our third quarter performance underscores growing momentum across our business,” said Louis Têtu, Chairman and CEO of Coveo. “Enterprises are increasingly recognizing that Search and AI-Relevance is critical to unlocking the business outcomes they are seeking in their AI projects in digital and generative experiences. We believed this year would see an inflection where enterprises moved from experimentation to adoption, and our third quarter is validation that we are tracking well on accelerating our revenue growth in the coming quarters.”

“Coveo’s leadership in bringing AI-Relevance to large enterprise customers has enabled us to innovate quickly in generative AI and commerce. Our customers are consistently telling us that the Coveo AI-Relevance platform is a critical component to powering their generative AI ambitions, and I’m thrilled with the results we are helping them achieve”, said Laurent Simoneau, President and CTO of Coveo.

Third Quarter Fiscal 2025 Summary Financial Highlights

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

In millions of U.S. Dollars, except as otherwise
indicated

Q3 2025

Q3 2024

Change

SaaS Subscription Revenue(1)

$32.3

$29.9

8 %

Coveo core platform(2)

$31.1

$27.8

12 %

Qubit platform(3)

$1.2

$2.1

(44 %)

Total revenue

$34.0

$31.8

7 %

Gross margin

78 %

77 %

1 %

Product gross margin

82 %

81 %

1 %

Net income (loss)

$4.0

($6.2)

166 %

Adjusted EBITDA(4)

$0.6

($0.7)

178 %

Cash flows used in operating activities

$0.2

$2.3

92 %

Third Quarter Fiscal 2025 Financial Highlights
(All comparisons are relative to the three-month period ended December 31, 2023, unless otherwise stated)

SaaS Subscription Revenue(1) of $32.3 million, an increase of 8% compared to $29.9 million, at the top end of guidance. Within this, SaaS Subscription Revenue for Coveo’s core platform(2) was $31.1 million, an increase of 12%.Total revenue was $34.0 million compared to $31.8 million, an increase of 7%, and above the top end of guidance.Gross margin was 78%, up from 77% in the prior period. Product gross margin was 82%, up from 81% in the prior period.Operating loss was $5.4 million compared to $6.5 million, and net income was $4.0 million compared to a net loss of $6.2 million.Adjusted EBITDA(4) was $0.6 million compared to ($0.7) million last year, and within our guidance range.Cash flows used in operating activities were $0.2 million compared to $2.3 million.Cash and cash equivalents were $119.1 million as of December 31, 2024.Net Expansion Rate(1) of 101% as of December 31, 2024. Net Expansion Rate(1) was 105% excluding customer attrition from customers using the Qubit platform(5).

Other Business and Subsequent Highlights

Achieved record new bookings, fueled by a combination of new and existing clients and well diversified bookings across geographies and customer use cases.Strong growth in Commerce, with record number of new clients added. Customers such XXXLutz, Agilent Technologies, Trek Bicycles and others adopted Coveo’s Commerce solution. 50% of new Commerce customers were acquired through our partnership with SAP.Unveiled at NRF 2025 in New York, Coveo showcased its AI-Search and recommendations within a Shopify Enterprise environment.Continued strong demand for Coveo’s Generative AI solution, with a 36% sequential increase in customer count. Customers such as ABB Ltd, Verisk Analytics and Lexmark adopted Coveo’s Generative AI in the quarter. In addition, after a successful initial deployments, existing customers such as SAP, Vanguard, and Edward Jones signed additional order forms to further expand their use of Coveo’s Generative AI solution.After a successful beta program that was over-subscribed, Coveo announced the general availability of Passage Retrieval API, empowering organizations to connect their own Large Language Models (LLMs) with the full power of the Coveo AI-Relevance Platform™.Expanded partnership with SAP to deliver AI capabilities across CX channels from Commerce to Customer Service.Accelerated European growth with DACH expansion. New bookings growth in EMEA was 79% in the quarter as compared to the same period last year.Poised for continued expansion into Australia and the broader APAC region. After winning Freedom Furniture, a leading Australian and New Zealand retailer, pursuant to a competitive RFP process, Freedom recently reported a 15% uplift in customer sessions utilizing Coveo’s AI-powered search, along with a 5.5% improvement in Average Order Value.

Financial Outlook

The company is encouraged by the strengthening customer demand for its AI powered solutions and continues to anticipate momentum in new bookings in the fourth quarter of the fiscal year.

The company’s financial outlook continues to include 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. Additionally, the company’s outlook incorporates the current FX rates which lead to lower recognized amounts for non-USD denominated international revenue and expenses.

Taking these factors into consideration, Coveo anticipates SaaS Subscription Revenue(1), Total Revenue, and Adjusted EBITDA(4) for Q4 FY’25 and Full Year FY’25 as follows:

Q4 FY’25

FY’25

SaaS Subscription Revenue(1)

$32.3 – $32.8 million

$126.3 – $126.8 million

Total Revenue

$34.1 – $34.6 million

$133.0 – $133.5 million

Adjusted EBITDA(4)

$0.0 – $1.0 million

$0.3 – $1.3 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.

Q3 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 third quarter of fiscal year 2025. The call will be hosted by Louis Têtu, Chairman and CEO, Brandon Nussey, CFO and other members of its senior leadership team.

Conference Call:

https://emportal.ink/3VfD2Y3
Use the link above to join the conference call without operator assistance. If you prefer to have operator assistance, please dial: 1-888-699-1199

Live Webcast:

https://app.webinar.net/0Qnwo9kB3x7

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 December 31, 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 income (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 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, reacceleration of revenue growth 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 generative AI solutions, both with new and existing customers, and our ability to continue 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:

Remaining Qubit SaaS ACV(6) will continue to churn in the fourth quarter of fiscal 2025, 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 for the second half of fiscal 2025 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 customer buying behaviors.Our ability to attract and retain key personnel required to achieve our plans.Foreign exchange rates environment remaining consistent with end of Q3 levels, 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

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.

Our Coveo AI-Relevance Platform™ ️enables enterprises to deliver hyper-personalization at every point-of-experience, unifying all their data securely, with the highest level of contextual and prescriptive accuracy while simultaneously optimizing business outcomes.

Coveo brings AI-Relevance to the digital experiences of many of the world’s premier and most innovative brands, serving millions of people across billions of interactions.

What we believe is bold: Digital is table stakes, Relevance is not. It’s the only way to win in the digital age.

The Coveo AI-Relevance Platform™ is ISO 27001 and ISO 27018 certified, SOC2 compliant, HIPAA compatible, with a 99.999% SLA available. We are a Salesforce ISV Partner, an SAP EndorsedⓇ App, an Adobe Gold Partner, MACH Alliance member, Optimizely Partner, Shopify Partner, 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 and YouTube.

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

Three months ended
December 31,

Nine months ended
December 31,

2024

2023

2024

2023

Revenue

SaaS subscription

32,284

29,901

94,015

87,842

Professional services

1,681

1,860

4,907

5,670

Total revenue

33,965

31,761

98,922

93,512

Cost of revenue

SaaS subscription

5,932

5,731

17,107

16,182

Professional services

1,410

1,439

4,039

4,467

Total cost of revenue

7,342

7,170

21,146

20,649

Gross profit

26,623

24,591

77,776

72,863

Operating expenses

Sales and marketing

15,282

13,788

43,881

41,146

Research and product development

8,322

9,153

27,367

27,035

General and administrative

6,709

6,409

19,605

20,032

Depreciation of property and equipment

610

605

1,985

1,777

Amortization and impairment of intangible
assets

743

721

2,205

5,926

Depreciation of right-of-use assets

355

383

1,091

1,182

Total operating expenses

32,021

31,059

96,134

97,098

Operating loss

(5,398)

(6,468)

(18,358)

(24,235)

Net financial revenue

(1,052)

(1,663)

(4,040)

(4,970)

Foreign exchange loss (gain)

(6,546)

1,583

(5,804)

1,327

Income (loss) before income tax recovery

2,200

(6,388)

(8,514)

(20,592)

Income tax recovery

(1,844)

(236)

(1,077)

(1,032)

Net income (loss)

4,044

(6,152)

(7,437)

(19,560)

Net income (loss) per share – Basic and diluted

0.04

(0.06)

(0.08)

(0.19)

Weighted average number of shares
outstanding – Basic

96,398,006

102,471,561

99,237,691

103,601,713

Weighted average number of shares
outstanding – Diluted

104,858,139

102,471,561

99,237,691

103,601,713

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

Three months ended
December 31,

Nine months ended
December 31,

2024

2023

2024

2023

Share-based payments and related expenses

SaaS subscription cost of revenue

241

200

601

666

Professional services cost of revenue

148

119

329

432

Sales and marketing

900

810

2,748

1,747

Research and product development

1,361

1,391

4,239

4,622

General and administrative

1,603

1,518

5,100

5,334

Share-based payments and related expenses

4,253

4,038

13,017

12,801

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

Three months ended
December 31,

Nine months ended
December 31,

2024

2023

2024

2023

Net income (loss)

4,044

(6,152)

(7,437)

(19,560)

Net financial revenue

(1,052)

(1,663)

(4,040)

(4,970)

Foreign exchange loss (gain)

(6,546)

1,583

(5,804)

1,327

Income tax expense (recovery)

(1,844)

(236)

(1,077)

(1,032)

Share-based payments and related
expenses(1)

4,253

4,038

13,017

12,801

Amortization and impairment of intangible
assets

743

721

2,205

5,926

Depreciation expenses(2)

965

988

3,076

2,959

Transaction-related expenses(3)

–

388

–

Adjusted EBITDA

563

(721)

328

(2,549)

(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.

Reconciliation of Adjusted Gross Profit Measures and Adjusted Gross Margin Measures
(expressed in thousands of U.S. dollars, unaudited)

Three months ended
December 31,

Nine months ended
December 31,

2024

2023

2024

2023

Total revenue

33,965

31,761

98,922

93,512

Gross profit

26,623

24,591

77,776

72,863

Gross margin

78 %

77 %

79 %

78 %

Add: Share-based payments and related
expenses

389

319

930

1,098

Adjusted Gross Profit

27,012

24,910

78,706

73,961

Adjusted Gross Margin

80 %

78 %

80 %

79 %

Product revenue

32,284

29,901

94,015

87,842

Product cost of revenue

5,932

5,731

17,107

16,182

Product gross profit

26,352

24,170

76,908

71,660

Product gross margin

82 %

81 %

82 %

Add: Share-based payments and related
expenses

241

200

601

666

Adjusted Product Gross Profit

26,593

24,370

77,509

72,326

Adjusted Product Gross Margin

82 %

Professional services revenue

1,681

1,860

4,907

5,670

Professional services cost of revenue

1,410

1,439

4,039

4,467

Professional services gross profit

271

421

868

1,203

Professional services gross margin

16 %

23 %

18 %

21 %

Add: Share-based payments and related
expenses

148

119

329

432

Adjusted Professional Services Gross Profit

419

540

1,197

1,635

Adjusted Professional Services Gross Margin

25 %

29 %

24 %

29 %

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

Three months ended
December 31,

Nine months ended
December 31,

2024

2023

2024

2023

Sales and marketing expenses

15,282

13,788

43,881

41,146

Sales and marketing expenses (% of total revenue)

45 %

43 %

44 %

Less: Share-based payments and related expenses

900

810

2,748

1,747

Adjusted Sales and Marketing Expenses

14,382

12,978

41,133

39,399

Adjusted Sales and Marketing Expenses (% of total
revenue)

42 %

41 %

42 %

Research and product development expenses

8,322

9,153

27,367

27,035

Research and product development expenses (% of total
revenue)

25 %

29 %

28 %

29 %

Less: Share-based payments and related expenses

1,361

1,391

4,239

4,622

Adjusted Research and Product Development Expenses

6,961

7,762

23,128

22,413

Adjusted Research & Product Development Expenses (%
of total revenue)

20 %

24 %

23 %

24 %

General and administrative expenses

6,709

6,409

19,605

20,032

General and administrative expenses (% of total revenue)

20 %

21 %

Less: Share-based payments and related expenses

1,603

1,518

5,100

5,334

Less: Transaction-related expenses

–

388

–

Adjusted General and Administrative Expenses

5,106

4,891

14,117

14,698

Adjusted General and Administrative Expenses (% of total
revenue)

15 %

14 %

16 %

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

December 31,
2024

March 31,
2024

Assets

Current assets

Cash and cash equivalents

119,108

166,586

Trade and other receivables

38,506

29,947

Government assistance

9,144

9,987

Prepaid expenses

6,758

8,622

173,516

215,142

Non-current assets

Contract acquisition costs

10,446

10,168

Property and equipment

4,271

5,608

Intangible assets

6,506

8,710

Right-of-use assets

4,514

6,032

Deferred tax assets

2,794

4,265

Goodwill

25,831

25,960

Total assets

227,878

275,885

Liabilities

Current liabilities

Trade payable and accrued liabilities

21,178

21,822

Deferred revenue

71,022

64,731

Current portion of lease obligations

1,747

2,153

93,947

88,706

Non-current liabilities

Lease obligations

5,159

6,885

Deferred tax liabilities

–

1,771

Total liabilities

99,106

97,362

Shareholders’ Equity

Share capital

767,684

836,271

Contributed surplus

73,730

40,484

Deficit

(663,035)

(655,598)

Accumulated other comprehensive loss

(49,607)

(42,634)

Total shareholders’ equity

128,772

178,523

Total liabilities and shareholders’ equity

227,878

275,885

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

Nine months ended December 31,

2024

2023

Cash flows from (used in) operating activities

Net loss

(7,437)

(19,560)

Items not affecting cash

Amortization of contract acquisition costs

3,248

3,337

Depreciation of property and equipment

1,985

1,777

Amortization and impairment of intangible assets

2,205

5,926

Depreciation of right-of-use assets

1,091

1,182

Share-based payments

13,528

11,759

Interest on lease obligations

323

407

Deferred income tax recovery

(478)

(987)

Unrealized foreign exchange loss (gain)

(5,826)

1,113

Changes in non-cash working capital items

(4,368)

(5,388)

4,271

(434)

Cash flows used in investing activities

Additions to property and equipment

(836)

(953)

Additions to intangible assets

(17)

(23)

(853)

(976)

Cash flows used in financing activities

Proceeds from exercise of stock options

1,116

1,392

Tax withholding for net share settlement

(2,454)

(1,267)

Payments on lease obligations

(1,869)

(1,750)

Shares repurchased and cancelled

(46,868)

(29,649)

Repurchase of stock options

–

(4,553)

(50,075)

(35,827)

Effect of foreign exchange rate changes on cash and cash equivalents

(821)

1,903

Decrease in cash and cash equivalents during the period

(47,478)

(35,334)

Cash and cash equivalents – beginning of period

166,586

198,452

Cash and cash equivalents – end of period

119,108

163,118

Cash

42,875

21,854

Cash equivalents

76,233

141,264

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SOURCE Coveo Solutions Inc.

Technology

Galaxy Digital Inc. Announces Pricing of $3.507 Billion of Senior Secured Notes

Published

6 minutes ago

July 24, 2026

NEW YORK, July 23, 2026 /PRNewswire/ — Galaxy Digital Inc. (NASDAQ: GLXY) (“Galaxy” or the “Company”), a global leader in digital assets and data center infrastructure, today announced that its indirect wholly owned subsidiary, Galaxy Helios Data Centers II LLC (the “Issuer”), has priced a $3.507 billion private offering (the “Offering”) of 9.875% senior secured notes due 2031 (the “Notes”). The Offering is expected to close on July 28, 2026, subject to market and other conditions.

The Issuer intends to use the net proceeds from the Offering to finance a portion of the development and construction of two buildings containing eight data halls with a combined total of 400 megawatts (“MW”) of utility capacity and 260 MW of critical IT capacity (the “Project”) to be built on an approximately 260-acre property in Dickens County, Texas and to fund debt service reserves.

The Notes will bear interest at a rate of 9.875% per annum payable semi-annually in cash in arrears on February 1 and August 1 of each year, beginning on February 1, 2027 and will mature on August 1, 2031. The Notes will amortize at a rate of 4.00% per annum of the original principal amount subject to adjustment, with amortization payments payable semi-annually with the first payment date to occur at least ten months after the completion of the Project.

The Notes will be fully and unconditionally guaranteed by Galaxy Helios II LLC, a wholly owned direct subsidiary of the Issuer (the “Guarantor”), and will constitute the senior secured obligations of the Issuer and the Guarantor. The Notes and related note guarantee will be secured by first-priority liens on (i) substantially all assets of the Issuer and the Guarantor, other than certain excluded property and (ii) all equity interests of the Issuer held by the direct parent company of the Issuer.

The Offering is subject to market and other conditions, and there can be no assurance as to whether, when or on what terms the Offering may be completed.

The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction, and the Notes may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and any applicable state securities laws. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Galaxy

Galaxy Digital Inc. (Nasdaq: GLXY) is a global leader in digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence. Our digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology. In addition, we develop and operate cutting-edge data center infrastructure to power AI and HPC workloads. Our 1.63 GW Helios campus in Texas positions Galaxy among the largest and fastest-growing data center developers in North America. The Company is headquartered in New York City, with offices across North America, Europe, the Middle East, and Asia.

Forward Looking Statements

This press release includes forward-looking statements, including statements relating to the completion, size and timing of the Offering, the terms of the Notes and the intended use of proceeds. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements represent the Company’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the satisfaction of the closing conditions related to the Offering and risks relating to the Company’s business, including those described in periodic reports that the Company files from time to time with the SEC. The Issuer may not consummate the proposed Offering described in this press release and, if the proposed Offering is consummated, cannot provide any assurances regarding the final terms of the Offering or the Notes or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and the Company does not undertake to update the statements included in this press release for subsequent developments, whether as a result of new information, future events, or otherwise, except as may be required by law.

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SOURCE Galaxy Digital Inc.

Technology

The Finish Line that Changed China: Retracing the Long March to Yan’an

Published

6 minutes ago

July 24, 2026

BEIJING, July 23, 2026 /PRNewswire/ — A news report from China.org.cn on the Long March, and what it means for China today:

Every journey has a destination.

But some destinations become the beginning of something even greater.

This is Yan’an.

Over 90 years ago, an army of soldiers embarked from Yudu, Jiangxi Province, on a journey that would go down in history.

They crossed snow-capped mountains, vast grasslands and raging rivers, eventually arriving in northern Shaanxi.

Across this grueling 12,500-kilometer journey, they wrote a magnificent epic in human history with willpower and courage.

Here, their Long March came to a victorious end. But a new chapter of history was only beginning.

In Yan’an, the Red Army found time to recover and rebuild, and the Central Committee of the Communist Party of China regrouped, gathering strength for the next chapter.

Here, new ideas were debated, new strategies were shaped, and a vision for China’s future gradually took form.

Today, while preserving its revolutionary legacy, Yan’an has grown into a vibrant, modern city — with a greener environment, thriving industries and happier lives for its people.

Nearly 90 years ago, American journalist Edgar Snow came to northern Shaanxi, seeking to uncover a story that few outside China knew. He later chronicled it in his book “Red Star Over China,” which carried the story of the Long March to the world.

Today, people from around the world are once again retracing those steps.

As part of China International Communications Group (CICG)’s “Together on the Long March” international communication project, participants have spent more than a month retracing the route across six key regions.

From Jiangxi to Shaanxi, they followed the Red Army’s journey and witnessed the remarkable changes that have taken place along the way.

I asked them one simple question: What does this journey mean to you?

Zhavier Harris, marketing and communications manager at the Springfield Urban League, said conversations with local residents and descendants of the Red Army made history feel far more immediate than he had expected.

He said history isn’t as distant as we often think. “We’re only one or two generations from these great sacrifices that led to the development and the greatness that we see from the Communist Party of China and China as a whole.”

David Ferguson, honorary chief English editor at Foreign Languages Press under CICG and a recipient of the 2021 Chinese Government Friendship Award, said the journey deepened his understanding of the Long March.

He said the journey helped him understand not only the historical facts, but also what the Red Army endured. “If you see the Long March merely as a military campaign, it ended in Yan’an. But as a spirit, it has never truly come to an end.”

We came to retrace history. We leave with something more: a deeper understanding of China’s past, a clearer view of its present, and perhaps a greater appreciation for the stories that connect us across cultures.

Edgar Snow called the Long March “an Odyssey unequalled in modern times.” He believed that what sustained it was a flame — consisting of an undimmed ardor, an undying hope and an amazing revolutionary optimism.

Ninety years later, that flame still burns.

Passed down through generations, the spirit of the Long March continues to light China’s path forward.

And as it crosses borders and cultures, it offers the world a glimpse of a nation defined by resilience, perseverance and an enduring drive to move forward.

China Mosaic
http://www.china.org.cn/video/node_7230027.htm

The Finish Line that Changed China: Retracing the Long March to Yan’an
http://www.china.org.cn/video/2026-07/23/content_118614941.shtml

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SOURCE China.org.cn

Technology

Visa and Lianlian Advance Trusted B2B Agentic Commerce Through LoopXPay’s First Live B2B Agentic Transaction

Published

6 minutes ago

July 24, 2026

First live B2B agentic transaction in Greater China highlights how AI-enabled commerce can help SMBs streamline purchasing and payments, supported by Visa’s Agentic Directory for trusted AI agent interactions

SINGAPORE, July 24, 2026 /PRNewswire/ — Visa (NYSE: V), a global leader in digital payments, and Lianlian DigiTech Co., Ltd. (“Lianlian”), an AI-native global financial infrastructure provider, today announced the first live B2B agentic transaction completed using LoopXPay, Lianlian’s AI agent.

Small and medium sized businesses (SMBs) often lack dedicated procurement teams and spend valuable time sourcing, purchasing and making payments themselves. In the transaction, the LoopXPay agent was used to source a product sample from a supplier and complete the purchase in a single workflow. The agent identified the purchasing requirement, recommended suitable suppliers, compared options, placed the order and securely executed the payment within a single workflow, while operating within pre-defined spending controls and approval parameters.

The milestone highlights how AI-powered commerce experiences can help SMBs simplify purchasing and payment activities while maintaining appropriate controls and oversight. By enabling AI agents to operate within pre-defined spending parameters and approval controls, businesses can reduce manual effort while retaining visibility into commercial decision-making.

As AI agents become more involved in purchasing and payment activities, businesses will require confidence that transactions are being executed by verified participants, within approved parameters and with appropriate oversight. Capabilities aligned with Visa’s Trusted Agent Protocol can help provide the identity, transparency and controls needed to support these interactions.

As part of the collaboration, LoopXPay has been registered in Visa’s Agentic Directory, enabling participating businesses and merchants to identify verified AI agents within the ecosystem. Supporting the implementation of Visa’s Trusted Agent Protocol, the Agentic Directory helps provide greater transparency into agent-driven interactions and confidence that participating agents have met Visa’s requirements.

“AI-powered commerce experiences can help businesses simplify purchasing and payments while maintaining the controls and oversight they require,” said Darren Parslow, Global Head, Visa Commercial Solutions, Visa. “For SMBs, that means less complexity in managing day-to-day commercial activities and more time focused on growth. As businesses increasingly look to embed intelligence into purchasing and payment experiences, trust will become a critical enabler of adoption. Through our collaboration with Lianlian, we are helping advance the trusted foundations that businesses will need to participate in this next era of commerce with confidence.”

Building on this milestone, Visa and Lianlian are exploring how AI agents can support a broader range of commercial activities, including procurement, digital advertising optimisation and B2B platform payments, helping advance trusted commerce through greater efficiency, transparency and control.

Zhang Zhengyu, Founder, Chairman of the Board and CEO, Lianlian DigiTech, said, “AI is reshaping the entire commercial value chain, where a growing number of business activities will be autonomously executed by AI agents, with payments serving as the critical infrastructure connecting them to global commerce. Leveraging its experience in global cross-border payments, compliance, as well as payment network, LianLian is actively building AI-native financial infrastructure, delivering an integrated suite of capabilities for the Agent Economy, spanning identity verification, transaction authorisation, intelligent payment, and global fund settlement. Through this collaboration with Visa, we aim to combine Lianlian’s AI-native capabilities with Visa’s trusted global network and commercial payment expertise to help businesses transact more securely, intelligently and efficiently in an increasingly agent-driven commerce environment.”

About Visa

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, sellers, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.

About Lianlian

Lianlian DigiTech Co., Ltd. (“Lianlian DigiTech” or “Lianlian”) was founded in 2009 and listed on the Main Board of the Hong Kong Stock Exchange in 2024 (stock code: 2598.HK). As China’s leading global provider of digital and intelligent payment services, Lianlian adheres to its mission of “Connecting the world, empowering global commerce” and pursues an “AI-Native + Globalization” strategy. The Company is committed to building a trusted global intelligent financial infrastructure, enabling seamless connectivity between Chinese enterprises and global businesses. As of now, Lianlian has established a global licensing portfolio comprising 68 payment licenses and related qualifications, and holds a VATP license issued by the Hong Kong SFC. It supports services in more than 200 countries and regions and enables transaction settlement in over 140 currencies, connecting over 180 global e-commerce platforms and serving a cumulative total of over 13.3 million customers. Learn more at www.lianlian.com.

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SOURCE Visa Worldwide Pte. Limited