Coveo Solutions Inc.

Good afternoon. My name is Sylvie, and I will be your conference operator today. At this time, I would like to welcome everyone to the CAVEO First Quarter 2023 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then number one on your telephone keypad. And if you would like to withdraw your question, simply press two. Thank you. Mr. Goode, you may begin your conference.

Good afternoon, and thank you for joining us today. With me on the call are Luis Setú, Chairman and Chief Executive Officer of Caveo, and Jean Lévière, Chief Financial Officer. Before we get started, I would like to note 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 second quarter and fiscal year 2023. 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 including in filings we make with the Canadian Securities Regulatory Authority, including the section titled Risk Factors in the company's most recently filed annual information form, which is available under our profile on CDAR at www.cdar.com. Additionally, some of the financial measures discussed on this call are either not IFRS measures or operating metrics used in our industry. A discussion on why we use non-IFRS financial measures in 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'll turn the call over to Louie to begin.

Thank you, Nick, and thank you all for joining us today. Building on the momentum of our record fiscal 2022 results, we had a solid start to fiscal 2023. Even in an uncertain macro environment, we're seeing continued demand for our AI-powered relevance platform as businesses look to maximize efficiency and gain ROI from their investments. And as digital transformation remains a priority for businesses worldwide, Coveo helps to enable these enterprises deliver the relevant experiences that optimize business outcomes at scale. For the first quarter ended June 30th, we delivered year-over-year SaaS subscription revenue growth of 47% and total revenue growth of 45%. Growth bookings remained solid. with all lines of business growing double digits on a trailing 12-month basis. And of note, we're continuing to attract and add customers with increasing cost efficiency. Our net expansion rate as of June 30, 2022, came in strong at 112% compared to 110% in Q4 of fiscal 2022, demonstrating continued momentum in cross-sells and upsells and strong customer retention. Lastly, but importantly, we demonstrated the operating leverage inherent in our business and our commitment to accelerating our path to future profitability by posting bottom line results better than our guidance. I'm also pleased to share that we had a strong start to our fiscal Q2 with two significant e-commerce deals closing just after the first quarter ended. with one of these deals being a large cross-sell of Coveo search and recommendations capabilities to a legacy Qubit customer, and the other being a large upsell in EMEA. Had those deals signed in Q1, we would have had the second largest bookings quarter in the history of the company, and commerce bookings would have been in line with last quarter. However, we've also seen some elongation of sales cycles like many other software companies, especially for some larger transactions. Having said that, demand for our platform remains strong, as evidenced by the record pipeline generation levels we experienced in the quarter. In parallel, we also continue to improve our efficiency in sales and marketing spend. Coveo remains steadfast in our mission to deliver the relevant and personalized digital experiences crucial to compete and thrive in the current environment. which can only be achieved through the application of AI. We believe AI is not only a true disruptor in the digital landscape, but has the potential to change the world even more than the Internet did. We want to see Coveo as a leader in this new wave and believe we are at the forefront of this large opportunity. As we enter into a period of more macro uncertainty for many businesses, Platforms like Coveo become even more relevant to conversations around strategically applying AI and leveraging tools to deliver optimal business outcomes, including improving profitability. Each of our lines of business represent a compelling ROI for customers as they look to achieve the dynamic goals of their business. In commerce, This means delivering a relevant and personalized shopping experience that boosts customer conversation and spend while optimizing margins and lifetime value. Fostering customer loyalty, however, requires ongoing support that is prompt and addresses the customer's needs. Coveo's service business enables our customers to achieve not only this, but does so while reducing costs and the need for manual intervention. And lastly, for websites and workplaces, improvements in search and recommendations give users personalized and relevant content that optimizes their experience, leading to more engagement and proficiency. In the quarter, we expanded our relationships with a number of key customers in terms of contract value and use cases and completed expand transactions with customers such as Hewlett Packard Enterprise and Enbridge. We also completed a seven-figure expand transaction with a leading multinational enterprise software company. We added new customers in the quarter, such as Groupe Deschain and Nordstrand, as well as a leading multinational healthcare services company with whom we believe there is a significant opportunity to expand our relationship over time. I would now like to take a moment to highlight a few examples of customers using Coveo's platform to optimize their business outcomes with personalized, relevant digital experiences. One of Canada's largest alcoholic beverage retailers leverages our e-commerce solutions for over 100,000 products in their catalog. These solutions include query suggestions with automatic relevance tuning, to access the most relevant content for customers, content recommendations to complement product search, dynamic navigation to assist with filtering, and machine learning models to deliver highly personalized experiences for users at scale. Since going live with Coveo during the first quarter, they have experienced a 20% uplift in click-through rates and a significant increase in average cart size. Coveo partnered with one of the best-known telecom companies in Europe. Their communications and cloud infrastructure solutions for telecommunications enterprises are sold worldwide. And they're using Coveo's AI and machine learning capabilities to increase findability and content personalization on both their corporate website and technical help center. With multilingual content spread across various repositories, Their main objective is to increase content consumption and customer satisfaction while streamlining support costs. Noticing how valuable the experience was to their end users, they expanded their use case internally to help their support agents solve cases more efficiently. Earlier this year, Kaleo partnered with one of the largest publicly traded food-based companies in the world with over 250,000 employees. As our largest ever workplace implementation, we're currently powering their custom-built workplace sites across several of their larger European and South American territories ahead of a gradual rollout in October 2022. Coveo is helping employees search through vast amounts of internal content to find relevant information. The results of our collective work have been warmly received by end users with further optimization plans. And lastly, Coveo brought artificial intelligence to the public-facing websites of one of the oldest continuously operating companies in Northern Europe. Although still very early in deployment, we have implemented close to 50 machine learning models, which are already bringing end users the most relevant products and information, driving higher cart sizes, click-through rates, and recommending the most relevant items. I'd now like to give you an update on some exciting new features and launches made within the quarter as we continue to prioritize research and development as one of our strategic investment focuses. We released new recommendations decisioning capabilities to allow deployment of explicit, finer-grained strategies for specific audiences and streamline deployment of global, multi-region configurations to help generate more engagement from merchandisers, and increased revenue driven through the Coveo merchandising hub. We also simplified the ingestion of complex catalogs found in SAP's commerce by introducing native SAP commerce sources to make the deployment of Coveo alongside SAP significantly easier as well as to enable processing of all catalog data by our machine learning algorithms. Additionally, We introduced new decisioning capabilities that allow merchandisers to tailor recommendations at the user type or audience level, enabling them to test entirely different strategies per audience or apply granular rules to specific audiences on top of the personalization based on user behavior performed by Coveo Recommendations models. And finally, we added a new no-code builder experience for hosted search pages to enable any user to easily create and share next-gen Coveo Atomic search page experiences. In closing, I am pleased with the progress we are sharing today that demonstrates not only the demand for our platform, but also the compelling opportunity in AI, which Coveo sits at the forefront of. To deliver relevant, profitable digital experiences at scale, you need AI. and Coveo has created an industry-leading platform that enables businesses to do just that while getting full value out of their strategic investments. I look to the future with conviction that this large and underserved market will continue to be of utmost importance to all businesses looking to compete and succeed. I will now hand the call over to Jean to discuss our financial results in more detail. Jean?