Coveo Solutions Inc.

Good afternoon, ladies and gentlemen, and welcome to the Caveo Solutions 3rd Quarter Fiscal 2026 Financial Results Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star 0 for the operator. This call is being recorded on Thursday, January 29, 2026. And I would now like to turn the conference over to Mr. Adhir Tadwe, Head of Investor Relations. Please go ahead.

Good afternoon, everyone, and thank you for joining us. With me to discuss Coveo's fiscal third quarter 2026 results are Laurent Simonot, Coveo's co-founder and chief executive officer, Louis Titu, Coveo's executive chairman, Brandon Nussie, Coveo's chief financial officer, and Jamin Amel, Coveo's incoming interim chief financial officer. A reminder that some remarks made today will be forward-looking statements within the meaning of applicable securities laws, including those regarding our plans, objectives, expected performance, and our outlook for the fourth fiscal quarter and full year fiscal 2026. These are forward-looking statements given out of January 29, 2026. And while we believe any statements we make are reasonable, they are based on current expectations and assumptions, which are subject to risk and uncertainties. Actual results could differ materially from those expressed or implied. Coveo disclaims any intent or obligation to update our forward-looking statements, whether as a result of new information, future events, or otherwise. Further information on factors that could affect the company's financial results is included in filings we make with Canadian securities regulators, including in the risk factors section of the company's most recently filed annual information form, as well as the key factors affecting our performance section of the company's most recently filed MD&A, both of which are available on our CDAR Plus profile at cdarplus.ca and on ir.coveo.com. Additionally, some of the financial measures and ratios discussed on this call are either non-IFRS measures, ratios, or operating metrics used in our industry. A discussion on why we use these metrics and where applicable reconciliation schedules showing IFRS versus non-IFRS results are available in our press release and our MD&A issued today. Finally, please note that unless otherwise stated, all references and financial figures made today are in U.S. dollars. Our presentation slides accompanying this conference call can be accessed on our IR website under the News and Events section. I will now turn the call over to Louis for an overview of our third quarter, followed by Lana taking us through a strategic update and we will end off with Kevin taking us through the financial details and providing our outlook for the fourth quarter and fiscal 2026. We will then open the line to your questions. With that, over to you, Louis.

Thank you, Adir, and thanks, everyone, for joining us today. We have excellent news to discuss. In the third quarter, we broke new records in both subscription bookings and net bookings. This is the strongest new bookings performance in the company's history. Total revenue and SAS revenue both came in above guidance. And as a result, we are reaffirming guidance for fiscal 26 and are now expecting SAS subscription revenue and total revenue at the top end of the previously guided range. Customer momentum remained very strong during the quarter, with a healthy balance between new customer wins and expansion within our existing base. We signed major new contracts with leading brands such as GE, Liberty Mutual, Total Tools, and Insight, to name a few. Notably, we secured the largest new customer win in Coveo's history, a seven-figure deal with a Fortune 500 global leader in the industrial sector. We also expanded more than 80 subscriptions and deployments with existing customers, including Deloitte, United Airlines, Ticketmaster, Cardinal Health, Anderson Windows, Thomson Reuters, USAA, Vanguard, and Workday, all of whom increased adoption of our AI platform. Our commerce offering continued to deliver exceptional growth. Retailers, distributors, and manufacturers increasingly recognize the imperative for AI-powered relevance, and they're seeing measurable results from Coveo AI. During the quarter, we closed the second-largest AI commerce expansion transaction in our history with Cardinal Health, a customer we discussed last quarter. Cardinal supports more than $220 billion in healthcare commerce distribution and has validated our ability to deliver enterprise-grade AI at massive scale, how we operate in highly complex environments, and generates tangible financial results. Our generative AI solutions also sustain strong growth. Laurent will expand on this opportunity and the growth levers enabled by our continued platform innovation. Overall, it was an outstanding quarter, and Karin will provide the financial details. During the quarter, we announced a strategic partnership with Deloitte, a global leader in digital transformation. Deloitte shares our belief that the future of enterprise digital experiences is AI and relevance first, and this partnership expands our reach across joint customers. We also signed an important Memorandum of Understanding with the Government of Canada to support the modernization of digital services using Coveo AI. We already serve the governments of Australia and New Zealand with modern search and generative solutions for citizens and civil servants. And with Canada, discussions are underway to evaluate large-scale deployments across agencies coast-to-coast to improve efficiency, service quality, and digital sovereignty. I am pleased with the pace and value of our innovation. Our strong bookings and increasing number of larger transactions confirm that these breakthroughs are resonating and that our customers anchor Coveo in their core AI plans. We're particularly excited about our RAG as a service and Coveo-hosted MCP server offerings. These solutions allow customers to securely ground generative AI and digital agents in permission-aware, context-aware enterprise data, one of the most difficult challenges in enterprise AI. Coveo removes the complexity around retrieval, security, and relevance. Building on this, we announced the availability of RAG as a service for AWS agent tech services, helping AWS accelerate customer adoption and agent tech. We also recently launched the Coveo app for OpenAI ChatGPT Enterprise. This brings secure, enterprise-grade relevance directly into natural language workflows. The key takeaway here is that our flexible, agnostic RAG and MCP architecture significantly expands our integration and partnership opportunities across the rapidly growing agent ecosystem. Investors often ask us why Prevail is so valuable and sustainably differentiated in an increasingly crowded AI landscape. Why do enterprises choose Coveo, often investing millions in subscriptions instead of building these capabilities themselves? The answer is twofold. First, enterprise AI does not inherently know your data. One of the major, most profound breakthroughs of generative AI is its ability to synthesize and stitch fragmented, siloed information into coherent answers in real time. However, securely connecting models to complex fragmented enterprise data at scale remains extremely difficult. Second reason, AI does not understand context by default. Enterprises cannot tolerate hallucinations. Customers, employees, and stakeholders require accurate answers based on current context and governed data. Achieving this level of precision requires surgical governance of relevance. It's a science. Cavill has spent years building and refining AI models that govern relevance and intelligently connect enterprise data to digital experiences. That technology is critical. Customers consistently measure superior outcomes with our platform. validated through A-B testing and reflected in cost reductions, revenue growth, margin improvement, productivity gains, and better decision-making, just to name a few. In the past, search was just retrieval, embedded in apps. Today, relevance is what matters. In fact, during the quarter, Salesforce reconnected Coveo Search within its global support portal after customer dissatisfaction during a brief disconnection. While AgentForce is designed to answer questions from within Salesforce Data Cloud, Coveo search relevance is still necessary to surface the exact issue resolving content for these millions of Salesforce users. In our view, Coveo is complementary to agents such as AgentForce. As Laurent will discuss in a moment, AI search and relevance is needed to enrich and augment agent tech, and we have multiple examples of this with agent force customers in particular. Today, relevance is a necessary enterprise-wide capability that powers interaction channels and agent tech workflows with consistent precision, security, and governance across all data silos. That relevance and connectivity layer is what Coveo AI delivers, and replicating it requires years of deep enterprise engineering and real-world experience. We are more convinced than ever that Coveo's addressable market is large and expanding. We've built defensible moats in relevance for knowledge-intensive industries and in AI-powered search and discovery for complex consumer and B2B commerce. We have rapidly evolved Coveo into a highly flexible AI platform that allows enterprises to access data anywhere, adapt to multiple AI and large language models, and inject context-aware intelligence into any application or conversational agent. This flexibility significantly expands our use cases and market verticals potential. We're particularly excited about the large and fast-growing market for Coveo AI in the industrial sector. Think about manufacturing, distribution, aerospace, energy, medical devices or hardware, for example. Here, we're addressing the economics of uptime and dependability with AI. In the US alone, nearly 10,000 companies generate revenues above $250 million across these industrial segments. Think about assets such as MRI machines, aircrafts, HVAC systems, or heavy equipment. Downtime costs for these are significant, often in the millions of dollars annually. This creates very compelling economics for our software. as we help increase efficiency and uptime with 360-degree customer care intelligence. Industrial data and content are highly complex and siloed. Our AI can unify it and turn it into context-aware intelligence for issue diagnosis, prescribed solutions, service intelligence, and complex parts recommendations. So our manufacturing customers can deploy a single Coveo platform as the real-time orchestrated intelligence for self-service, contact center agents, search portals, field service, and of course, linked to complex after-markets parts commerce, advice, and recommendations. Something that is very time-consuming and more costly to do without AI. Our AI insights can even be embedded within connected products. that then continuously feedback data into our AI models for even greater speed and precision. We are not aware of any other platform that delivers this breadth of experiences from a unified AI intelligence layer. Our mission and conviction remain unchanged since we began combining enterprise search and machine learning in 2012. The world runs on digital experiences. It is now widely understood that all of them will be transformed by AI. Coveo is uniquely positioned as a mature platform that governs and optimizes AI-powered experiences on enterprise data. Before passing it to Lorraine Kerin, I want to thank Brandon Nasse, who is stepping down in a few days, for his years as our CFO. After a 20-year career as a public company CFO, Brandon is moving to the private company side. Brandon, we're deeply grateful for your contributions and for helping build our solid growth foundation. With that, Laurent.