Coveo Solutions Inc.

but that certain statements made during this conference call are forward-looking information within the meaning of applicable securities laws, including those regarding our future plans, objectives, growth, and expected performance, including our outlook for the fourth quarter and fiscal year 2022. These forward-looking statements represent our outlook only as of the date of this call. While we believe any forward-looking statements we make are reasonable, actual results could differ materially because the statements are based on current expectations and are subject to risks and uncertainties we do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements whether as a result of new information future events or otherwise further information on these and other factors that could affect the company's financial results is included in filings we make with the canadian securities regulatory authority including the section titled Risk Factors in the company's final supplemented PrEP prospectus dated November 17, 2021, which is available under our profile on CDAR at www.cdar.com. Additionally, some of the financial measures discussed on this call are either non-IFRS measures or operating metrics used in our industry. A discussion on why we use non-IFRS financial measures and operating metrics and Where applicable, a reconciliation schedule showing IFRS versus non-IFRS results are currently available in our press release and our MD&A dated as of today, which may both be found on our investor relations website at ir.caveo.com or our CDAR profile at www.cdar.com. Please note that unless otherwise stated, all references to any financial figures are in U.S. dollars. Now I will turn the call over to Luis to begin.

Thank you, Nick. And thank you all for joining us today. I want to start our first earnings call as a public company by thanking all of our employees, customers, partners, and investors for their support in helping us get to where we are today. In our first quarter as a public company, we delivered strong results that demonstrate the demand for our software platform is resonating with our target markets. Our purpose is to democratize the use of AI for every business so that they can deliver the personalized and relevant digital experiences that people expect. And our third quarter results are evidence of the importance of this to today's enterprises in commerce, websites, customer service, and workplaces. In our third quarter ended December 31st, They all saw year-over-year SaaS subscription revenue growth of 50% and total revenue growth of 39%. We also delivered the largest bookings quarter in the history of the company, even when excluding the contribution of Qubit, which we acquired in October 2021. We had strong performance across all four of our lines of business, particularly in commerce, which, excluding the contribution of Qubit, more than doubled year over year. Including the contribution of Qubit, commerce represented our largest line of business in terms of booking. We also meaningfully exceeded our booking targets for our solutions integrations with SAP, Adobe, and Zendesk. Transactions with new customers represented approximately 50% of our total bookings, And our next expansion rate as of December 31st, 2021, remains strong at 112%, demonstrating the traction we made with both new and existing customers. Today, enterprises around the world are discovering the critical importance of relevance in every digital interaction with their customers, partners, and employees, and the imperative of using AI to achieve this goal. As individuals, we expect our digital experiences to be highly relevant to us, personalized, coherent, and even prescriptive. When businesses deliver this, we reward them with our time, our money, and our loyalty. This level of depersonalization cannot be achieved at scale with only manually programmed rules. If you want to deliver a million different experiences to a million individuals, You need AI. This is the challenge Coveo solves. Coveo's AI platform is named the Coveo Relevance Cloud, which provides the intelligence layer that injects relevance and personalization into any digital experience that a business delivers across commerce, websites, customer service, and their workplaces. Within milliseconds from the start of a digital interaction, Coveo begins to personalize a content or shopping experience tailored just for you. Coveo's AI does this by using interaction data to understand who you are, what you like, and what drives better outcomes. Coveo's data platform remembers your actions and preferences across different channels. It also understands what other people like you have experienced and knows what information products content or answers brought them satisfaction and drove better business outcomes. In its simplest form, Coveo delivers tailored search that works better with results centered around individual people, not just content. In its mature form, it means a personalized experience that goes beyond search as Coveo anticipates the user's needs and delivers the personalized recommendations information, or products that are most likely to lead to a positive outcome for both the person and the business. Customers using our platform have seen significant ROI across multiple solutions. In commerce, when a search experience is personalized with AI and product recommendations are rich and more relevant, purchase conversion rates and average order value, or cart size, Within customer service, Coveo helps customers help themselves using AI and deep learning to show them the content they need, deflecting support calls and streamlining operations, while also improving agent proficiency to decrease escalations and increase customer satisfaction. For websites, Coveo helps deliver improvements in site search, website visits, and conversion rates. helping companies ensure their site visitors always have a relevant experience and engage more. And in workplaces, we use the same AI technology to make intranets intelligent and to personalize employee self-service across unified enterprise knowledge, helping employees to become more proficient so they can do more on their own. Today, we help businesses across a variety of industry verticals deliver relevance and their digital experiences. As we disclosed at the time of our IPO, these areas represent the combined $39 billion estimated total addressable market, with commerce representing more than half of that. We continue to believe that our addressable market remains underserved today. and see a tremendous opportunity to capture additional market share as we expand the use of our platform with existing customers. To tap into this addressable market, Coveo has three powerful compounding growth factors. The first is growth within our existing customers. Whenever we land a Coveo customer with a single use case, that customer becomes a source of near-term expansion. If we start in commerce, for example, we can expand into customer service and their website and so on. Second, we will continue to penetrate our current markets to acquire new customers using both our established sales and go-to-market channels and also new distribution mechanisms such as our product-led growth strategy. And third, We intend to tackle new markets and opportunities as we bring on new partners, develop new verticals, and expand geographically or via M&A. In the quarter, we added a number of exciting new customers, including Spectrum Brands, a home essentials company trusted by millions of consumers all over the world. We also had significant expand transactions with companies such as Informatica, an enterprise cloud data management leader, and Brother International, a premier provider of home office and business products and industrial solutions. I would also like to share how some of our customers are using Coveo's platform to deliver relevant digital experiences at scale. One of North America's leading retailers for outdoor recreation merchandise leverages Coveo's platform in commerce. With over a million items in their product catalog, Coveo is able to promote the most relevant products to customers using query suggest and product recommendation machine learning models. The launch of Coveo in mid-November drove an immediate impact on this customer's commerce website with Black Friday sales increasing by 11%. Since the start of 2022, They've reported that nearly 40% of all website traffic has been positively influenced by Coveo's automatic relevance tuning model, which fine-tunes an incoming search query to ensure items that are most relevant to that query appear in the result list and have an increased ranking score. Coveo works with a large multinational conglomerate where within five months, our AI was able to surface relevant content for their extensive set of websites, which currently spans 87 countries with 14 more to deploy and 35 languages. Coveo delivers a relevant customer experience at every level of interaction within these websites, from suggesting useful products from a catalog of over 20,000 products to service solutions that prioritize relevance, individualized content on every results page. As of January 2022, the vast majority of all products and service solutions that users accessed across this customer's websites were promoted by Coveo's machine learning capability. Further, the company is now expanding to implement our product recommendation solutions to provide useful and related products to their end customers at the point of purchase. Additionally, a leading APAC retailer in the household hardware industry is now using Coveo's platform to provide their online customers with relevant products and advice from their expansive product catalog of over 250,000 items. By implementing multiple of Coveo's product recommendations machine learning models, This customer is able to seamlessly tailor the right products and solutions for their customers based on what's trending, appropriate to the customer's context, or more importantly, what drives the most revenue. In an environment where the supply of certain products has been limited, Coveo's recommendations have enabled the website's hundreds of millions of searches per month. to adapt to, display, recommend, and track the purchase of the right products for end customers. Finally, a global financial software company with approximately $10 billion in revenue leverages our solutions to create relevant intranet search experiences for their employees. Coveo's search experience directly impacts employee satisfaction and productivity. As a company that is acquiring new business and operating with a seasonal influx of employees that can increase anywhere from 50% to 100%, depending on time of year, search effectiveness is essential. Their 2022 goals include expanding Coveo to other areas of their business. On the M&A front, in Q3, we acquired Qubit, a UK-based leader in AI-powered personalization for merchandising teams. The acquisition expanded our presence in Europe and also added many prestige B2C customers in verticals like luxury, fashion, beauty, and travel and hospitality. I am pleased to report that in Q3, Qubits bookings exceeded our expectations and increased significantly year over year when compared to the third quarter of our fiscal 2021. with a number of marquee wins with both new and existing customers, including Third Love, River Island, and Kate Spade UK. We continue to invest in research and development, and I'm excited to announce the rollout of multiple new innovations in the quarter. The first is our deep learning case classification model that greatly improves the quality of support cases submitted by users through automatic prompting of relevant classification tags. These classification tags are learned using natural language processing techniques and a deep learning algorithm that processes and understands the text appearing in existing support cases. We started rolling out this feature with several customers and have seen strong results with clicks through rate improvements in excess of 60% in some cases. We also launched our Smart Snippets feature, enabling users to get direct answers to their queries without having to navigate away from the results page. Answer snippets are automatically extracted from the content using rules based on document structure and tags. Smart Snippets scoring model leverages a combination of both linguistic and dense semantic features to match queries to answers. We are already seeing strong traction with customers going live and testing this feature. Our partners are an important part of our business as we improve user experience and increase value through our deep integrations. We work with about 150 systems integrated partners globally to allow our customers to implement Coveo successfully. We also have a number of strategic relationships with leading global technology platforms, such as Adobe, SAP, Salesforce, ServiceNow, Zendesk, and Sitecore, to deliver an easy and secure experience that feels truly native within these third-party applications. This quarter, we announced a deeper integration with Adobe Experience Manager, including the release of Coveo for Adobe Experience Manager on the Adobe Exchange Marketplace. This makes it easier for digital leaders and developers to bring robust, relevant search experiences to Adobe-powered websites, intranets, online stores, and technical documentation. Our solution combines prepackaged machine learning models for query suggestion, automatic re-ranking, dynamic faceting, question answering and smart snippets, and recommendations alongside a new native connector for indexing content. We also launched Coveo Search and Recommendations for SAP Commerce on the SAP Store. Our offering uses relevant search and real-time intent detection to deliver the buying experience today's consumers expect. thereby helping to drive more revenue conversion for SAP clients. Coveo's enterprise-class AI complements the SAP customer experience portfolio and helps retailers and manufacturers get even more out of SAP Commerce Cloud. This quarter also saw the continuation of our strong momentum in EMEA. EMEA bookings, excluding Qubit, were more than two times what they were a year ago, and including Qubit, EMEA represented over 25% of our total booking. We expect to continue to make additional investments in our go-to-market organization in EMEA to sustain this momentum and further grow our footprint. I'm also extremely excited to announce that Nicolas Darvaux-Garneau joined our executive team on January 31st as our Chief Growth and Strategy Officer. Nicola brings incomparable experience and knowledge to the company, specifically when it comes to digital innovation and disruption, and particularly in AI. Nicola will oversee our global go-to-market and corporate strategy and help us maximize our next stage of growth as a global leader in applied AI for digital experiences. Nicola is a former Google executive where he worked 11 years and most recently served as chief evangelist In this role, Nicola oversaw the entire global team responsible for advising and working with executives at large global corporations and Google's top advertisers, helping them improve their global digital strategy through the creation of many innovative digital marketing best practices that leverage data and AI technology. Before I turn the call over to Jean to discuss our financials in more detail, I want to reiterate my pride in Coveo's historic 1% pledge. We have pledged 1% of our employees' time, 1% of our product, and 1% of our profits to make a difference in our community. Additionally, at the time of our IPO, we pledged 1% of our equity to support Coveo's ESG activity around democratizing knowledge and education. We are committed to making a real impact in our communities and are excited to update you as our ESG efforts expand. In closing, we believe that the Coveo Relevance Cloud is a platform that makes it possible for any business to participate and compete in the new digital experience economy we're in, powered by data and AI. We help. by democratizing the use of AI for every one of those businesses, enabling them to participate and compete. And we all win when that happens. Our success today is just the beginning of our efforts to re-democratize business. And I and the team look forward to Coveo's future with enormous excitement. I will now hand the call over to Jean to discuss our financial results in more detail.

Jean? Thank you, Louis, and good evening, everyone. As this is our first earnings call as a public company, I'd like to spend a moment to go over our differentiated business model. Our SaaS subscription revenue is composed mostly of long-term contracts, typically three years or more in duration with no termination for convenience, in which revenue can only go up during the committed term of the contract through upsells or cross-sells. This quarter, 91% of our total revenue was from SaaS subscription, and we continue to expect that number to grow, particularly as we end support of our legacy on-premise software, which represented only 2% of our revenue in the third quarter, down from 4% last quarter. For internal-facing use cases like workplace or contact centers, Coveo is priced per number of users who access our platform. In e-commerce or websites where users are not authenticated, Coveo is priced per number of queries. And as I indicated, pricing per contract value is committed for the entire duration, making our business model highly predictable. As Louis highlighted, we delivered record bookings in the quarter even excluding Qubit, as we saw strong performance across all four of our lines of business, especially in e-commerce, which more than doubled compared to the third quarter of fiscal year 2021. We also continued to see the acceleration of our year-over-year organic tax subscription revenue growth, which increased above the 31% year-over-year growth rate of our SaaS subscription revenue from the second quarter. Our success in retaining and expanding our relationships with customers, one of the primary growth vectors that we mentioned, is demonstrated through our net expansion rate of 112% as of December 31st, 2021. Our goal remains to engage with our customers at one of our multiple price entry points and grow these relationships by adding capabilities and expanding usage. ultimately moving to the enterprise level where they can deploy Coveo across multiple lines of business and benefit from 360 degrees of relevance. Moving to our results. SaaS subscription revenue for the third quarter of fiscal year 2022 was $21.2 million, up 50% year-over-year. Total revenue came in at $23.2 million, growing 39% on a year-over-year basis. Self-managed licenses and maintenance revenue was $0.5 million, and professional services came in at $1.6 million. Note that all of these figures include the contribution from our acquisition of Qubit, which was completed on October 14, 2021. Another metric we focus on is current SAS subscription RPO, which grew 49% year-over-year this quarter to $72.2 million. The growth in our current SAS subscription RPO further exemplifies our strong bookings performance for the quarter, and we expect its growth rate to generally track our growth and annualized recurring revenue. From a geographic standpoint, we are continuing to make tremendous progress expanding into EMEA with our second largest bookings deal in the quarter coming from the EMEA region. The acquisition of Qubit also increased our footprint in EMEA, with over 25% of our booking this quarter coming from the region. While only 16% of our revenue this quarter came from outside North America, we do expect international markets to continue to be an important growth vector for us in the future, as we added in 2020 new cloud regions in Ireland and Australia to open these markets for our solutions. We plan to continue to pursue this sizable opportunity in these markets and make further investments to expand and deepen our international presence. Turning to our operating results, our third quarter gross profit percentage came in at 74% compared to 73% for the same period last year. Our product gross profit margin was 79% in a quarter compared to 77% for the same period last year. Our professional services gross profit percentage was 2% for the quarter compared to 30% for the same period last year. This year-over-year decline was primarily driven by the addition of Qubit, which had a lower professional services gross profit margin. We expect to improve our professional services gross profit percentage as we further complete the integration of Qubit. Operating loss for the quarter was $23.4 million, and non-IFRS adjusted operating loss for the quarter was $8.1 million. We continue to make investments to drive additional booking and revenue growth, as well as product innovation, and expect to do so going forward. Also, as Louis mentioned earlier, at the time of our IPO, we pledged 1% of our equity to support the Coveo's ESG activity around democratizing knowledge and education. This resulted in a one-time expense of $10.4 million in G&A in the quarter that was included in our operating loss. Net income came in at $426.3 million, or $7.65 per share, compared to a loss of $101.7 million or negative $5.55 per share in the third quarter of fiscal year 2021. The weighted average share count used in calculating the third quarter loss per share was 55.7 million shares versus 18.3 million in Q3 of last year. Looking at our balance sheet, we ended the quarter with 233.7 million in cash, including the 179.9 million in net proceeds from our IPO, the exercise of the overlapment, and concurrent private placement. Cash flow from operations was negative 7.9 million in the quarter. Finishing with guidance for the fourth quarter of fiscal year 2022, we expect SAS subscription revenue to be between 21.5 and 22 million, representing growth of 41 to 45% year over year. total revenue in the range of 23 to 24 million, representing growth of 32 to 38% year over year, adjusted operating loss in the range of negative 9.5 and 10.5 million, and between 103.4 and 103.9 million weighted average shares outstanding. For fiscal year 2022, We expect SAS subscription revenue to be between 76.3 and 76.8 million, representing growth of 38 to 39% year-over-year. Total revenue in the range of 84 to 85 million, representing growth of 30 to 31% year-over-year. Adjusted operating loss in the range of negative 29 and 30 million. and between 50.8 and 51.3 weighted average shares outstanding. As I have previously mentioned, there are three factors that we believe are helping to drive Coveo's robust growth rate. First, expanding into new use cases or lines of business. After already establishing ourselves in workplace, websites, and customer service, Several years ago, we began moving aggressively to commerce supported by investments in R&D, sales, and marketing. Second is geographic expansion into EMEA and AsiaPAC, which we've begun to establish through the opening of new data centers in Europe and Australia, Booking's growth in EMEA, and the acquisition of Qubit. And third is by bringing on new key strategic partnerships. We've already mentioned our successful alliance with Salesforce. Now we've broadened our number of key partners, bringing on Adobe and SAP, for instance. By doing so, we invest in reducing friction in these marketplaces by making it easy for customers to use Coveo within those large ecosystems. To conclude, we are very pleased with the results we have shared with you today and believe Coveo represents a compelling opportunity in AI. As a global leader in AI solutions at scale, our technology is built for growth, and we look forward to capturing that sizable opportunity. And with that, operator, you may now open the line for questions.