Coveo Reports Second Quarter Fiscal 2026 Financial Results

Core Insights - Coveo reported SaaS Subscription Revenue of $35.9 million for Q2 FY2026, exceeding guidance with a growth of 15% compared to $31.2 million in Q2 FY2025 [3][4] - The Coveo core Platform saw a 17% increase in revenue, reaching $35.0 million, while total revenue for the quarter was $37.3 million, up 14% from $32.7 million [3][4] - Generative AI solutions contributed significantly, with customer and revenue growth of approximately 2.5 times year-over-year [4][8] Financial Performance - SaaS Subscription Revenue increased by 15% year-over-year, with the Coveo core Platform growing by 17% [3][4] - Total revenue for the first half of FY2026 was $72.9 million, a 12% increase from $65.0 million in the same period last year [3][4] - The company reported a net loss of $4.4 million, an improvement from a net loss of $5.4 million in the previous year [3][4] Business Developments - Commerce remains Coveo's fastest-growing use case, accounting for approximately 50% of new business bookings, driven by the partnership with SAP [4][8] - The company received the SAP Global Customer Experience Award for Partner Excellence 2025, highlighting the success of its collaboration with SAP [8] - New customer acquisitions included notable companies such as Halliburton and Deckers Outdoor Corp., indicating strong demand for Coveo's solutions [8] Future Outlook - Coveo revised the upper end of its revenue guidance for FY2026, reflecting solid market demand for its AI-powered platform [5][6] - Expected SaaS Subscription Revenue for Q3 FY2026 is projected to be between $35.7 million and $36.2 million, with total revenue guidance for the full year set between $147.5 million and $148.5 million [6][5] - The company anticipates achieving positive operating cash flows for the full fiscal year [6][5]