Life is made of experiences, moments, and interactions. The best experiences are the ones that are made just for us, focused on us and our unique journeys. They're relevant to us. Digital experiences are no different. The best ones are made just for us. Relevance means the right experience for each person at the right time. In digital experiences, relevance can transform business. Think of it this way. As consumers, when experiences are relevant to us, we save time, we engage more, buy more, come back for more. We smile more. When digital experiences are relevant at work, we as employees grow faster, deliver better, excel, and enjoy. This is what Coveo does. We democratize relevance. We are the relevance company. Good morning, and welcome to Coveo's very first Capital Markets Day. My name is Paul Moon. I'm the Head of Investor Relations. I would also like to welcome those that are joining us online via the webcast. It's a pleasure for you to attend, and thank you so much for spending your time with us. I would also like to note that this event is being recorded and a replay is accessible on our investor relations website after the conclusion of today's event. Moving to the agenda just quickly here. As you can see, we've got quite a comprehensive program. We're gonna kick things off with Louis Têtu, our CEO and Chairman. We're going to move on to a technology demonstration by our founder, President, and Chief Technology Officer, Laurent Simoneau. We will also go to go-to-market with Louis and also marketing, our Chief Marketing Officer is in the room, Sheila Morin. We'll also discuss a little bit of ESG. We have a 15-minute break in the middle, so I'm sure you'll welcome that. I'm really excited about the customer panel. We've got a couple of fantastic partners with us today, and thank you so much for joining us on this event. Of course, this would not be a capital markets day without a financial review, and we have Jean Lavigueur, our CFO, to present this material. Lastly, we also have a Q&A session. I would ask those that have questions to kindly wait until the Q&A session, and we will have a couple of mic runners, I'll be one of those, and kindly raise your hand for questions and we'd be happy to address them. Those on the webcast, there is a dialog box. If you wanna submit a question, by all means, please do so. We will take priority for those that are in the room to answer questions, but if there's something we cannot address, we'll certainly deal with that offline. A little on this slide. It's of course our legal disclaimer. The material being presented should be considered along with our AIF, our MD&A, and most recently filed financial statements available on our website and also on sedar.com. We will be making reference to non-IFRS measures and ratios, and of course, the reconciliation of those ratios to IFRS is available in the appendix. We also have a definition of these measures in the appendix. Also we'll be making reference to KPIs that are relevant to us and our industry, and a definition of those is also available in the appendix. Lastly, all figures presented will be in U.S. dollars. With that, I take great pleasure introducing our Chairman and CEO, Louis Têtu. Louis. Thank you. Thank you, Paul, and welcome everyone. I'll start my timer because I can talk forever about this company. This company is a passion. Thank you all again for being here. Oh, sorry. I won't- No worries. Mobilize your space here. First of all, thank you to all of you for amazing turnout and for your interest in the company. You've obviously heard a lot about the company through the earnings calls for many of you during the IPO roadshow and through the various presentations. We're gonna try today not repeat everything you know, but to take you a little further. I think you'll hopefully find Laurent's presentation, you know, very enlightening. And really on the backdrop, you know, this is about communicating to you our excitement and what we see. At the end of the day, we can't control the markets right now. Coveo has performed well since the IPO. The market's like the tide. We can control the boat, and we wanna talk to you about the speed of that boat, the quality of that boat, and the size of that boat. Right now what we're seeing and communicate to you know, why? What are the fundamentals that make Coveo such a high potential company, at least in our view. That's not a forward-looking statement. That's our view. Coveo is an AI platform. Fundamentally, we were born in AI a dozen years ago with the desire to use AI essentially to create more relevant experiences. Essentially use artificial intelligence to essentially recommend. They say we started as a search vendor. When you're in the search business, it's really about delivering the right set of results, and that's fundamentally a recommendations process, and we're gonna talk about that. Really our focus is on enterprises, and our focus is on helping enterprises deliver great experiences. The word profitably was added in the past year, where you know, it's not only about using algorithms to deliver highly personalized experiences that people love. Think about your Netflix experience. This is often an analogy I use. How do you do that to maximize business outcomes? We're gonna talk quite a bit about that, and that speaks volumes about our direction from an R&D and investment perspective as a firm. For those of you who are newer to the story, you know, fundamentally, Coveo is built around the fundamental belief that, you know, digital experiences that digital leaders have raised the bar. Think about you as a consumer. We're all a browser window away from taking our experience to Amazon and to Wayfair in the furniture industry and to you know, Spotify or to Booking.com or to even Walmart.com or Target. But there are very, very few companies that do that very well. These companies have hired herds of data scientists. Wayfair has 2,200 developers and data scientists, not the usual profile of a standard furniture company. What happens is these companies have raised the bar essentially where we expect highly personalized experiences that essentially are designed just for us. This is moving way too quickly. This thing has a mind of its own. We expect experiences to be really, really people-centric, not product-centric. In the former world, let's say you were doing e-commerce, you would serve a catalog. You would push products into the market. Now it's about understanding who's at the other end and then designing the experience towards that person. This is really the genius of Laurent and his team literally more than a decade ago, turning search on its head and saying search is not about, you know, keyword or being able to retrieve content. It's about first and foremost, just like Netflix. First question and only question Netflix asks is who's watching? Because that's the one thing I need to know in order to assemble an experience that you will love and that will drive more consumption. those fundamental experiences today that are experiences that need to be super coherent and even prescriptive, that need to anticipate your needs, not only cater to your needs. We're gonna talk about the imperative of AI. this is really again what Coveo does. This problem is really important. you know, have a look at the McKinsey. This is a McKinsey report from November 2021, so it's not that old. Personalization is no longer a nice-to-have, but a must-have for brands. more than 70% of consumers expect one-on-one personalization. It increases revenue by 10% and lowers CAC by 50%. That's, you know, very, very substantial. What happens is that if you fail to provide it in the world, you know. Think about three audiences. Think about consumers or buyers. Think about customers, actual customers looking for service or information. Think about employees even in the workplace. If you're dealing with prospects and you fail to deliver that, you're affecting revenue. If you're dealing with customers, you fail to serve them in a way that you're gonna increase your cost to serve. We're gonna get into why. You're gonna impact loyalty and so on. If you're dealing with employees, it's a loss of productivity. If you can't give employees the information they need in the course of work, you essentially are missing out on a big opportunity. This is really what's going on. What's going on within enterprises, I can certainly share that. I personally sit on some public company boards. I sit on the board of Circle K and Couche-Tard essentially in Canada. I've sat on other boards as well. Customer experience is a boardroom discussion. It absolutely is. It has become, you know, more and more over the past decade because it's at the epicenter of the digital transformation conversation. The minute you start talking about that, you talk naturally about personalization. It naturally leads itself to personalization. You can't talk about personalization without talking about costs, revenue, and margins, because you can't just personalize at all costs. So fundamentally, you know, this is the epicenter of the digital transformation conversation, and only AI and data can solve the challenge. What's happening in large enterprises is large enterprises deal with. This is our focus. Large enterprises deal with very large, you know, volume and variety of content and products. So we have customers in the commerce space that have 1 million SKUs. So when you have 1 million SKUs, it's tough for a merchandising team to do that manually, you know? So you can't just say, "Oh, it's raining today. Let's put umbrellas on sale." It's a little more complicated than that. That problem is compounded by the fact that they deal with very large and diversified audiences. Again, we have customers that have 1 million consumers a day. You know, Bunnings in Australia, which is the equivalent of Home Depot, they had during the pandemic as much as 1 million consumers a day. It's Black Friday every day for them. How do you do that while making sure that you're making profits? Only algorithms can solve that problem because it's very hard to deliver to the expectations of an audience that's asking for a very relevant experience when you're dealing with millions of SKUs, millions of documents, many sources of content, lots of diversity. How do you make money at it? That's what firms like Amazon and so on have become experts at. It's a fight against algorithms, and you're either gonna adopt these algorithms or you're gonna fight against them. If you're in the latter category, give me your stock ticker, I'll short you because you're not gonna win. You're not gonna win in that game. What we've done. If anything, Coveo was early in its market. You know, this has been 15 years of cumulative know-how here, where we started as a search firm and Laurent Simoneau's firm was an offshoot of a company named Copernic Technologies. As I said, you know, Laurent really turned search on its head, and I said it before, by saying search is about understanding the person at the other end so that we got into the world of contextual relevance. That was in 2010, and that's the same year where we became Gartner top right in the Magic Quadrant for Enterprise Search, which is a very important report in enterprise software. In the world of enterprise search, Google at the time was selling a box named the Google Search Appliance and wasn't even in the cloud. We were already known back in 2010 for being the number one very complex advanced enterprise search firm. That's only the beginning. Laurent decided to hire a bunch of data scientists, take the company to the cloud, and then build the machine learning and deep learning and AI semantics infrastructure to deal with some of the world's most complex problems. The early adopters of this technology over these years up until 2017 and 2018 were the tech companies. We have Bernard from Salesforce today. Salesforce is an amazing partner of ours. They are also a massive customer of Coveo. These are the companies, Salesforce.com, Intel, Dell, HP, F5, Zoom, Adobe, et cetera. These are the companies that understood the power of machine learning and the importance of delivering personal digital experiences. For the better part of those years, we worked across the tech sector. We started diversifying around circa 2017, 2018, and taking that technology into manufacturing, into CPG, into financial services, into healthcare. We work with companies like Cigna, Humana. We work with Schwab. We work with Vanguard. We work with Citigroup. We work with Chamberlain Garage Doors, LiftMaster. You know, these are the companies today that use us, you know, all over the world and because they too understand the need to use data, you know, to perform that personalization. Essentially, in the world of enterprise transformation, digital is old news. You know. People talk about digital transformation. I would argue that you need to remove the word digital. Digital is old news. You needed to be digital 10 years ago. That's old news. We're beyond that. It's really about intelligence. There's a new category of software now, you know, and I like the way Satya Nadella puts it at Microsoft, you know, where he said, you know, in the past there were two layers of software: systems of record, where you store data and you manage data and all the infrastructure around it and databases and networks and et cetera, and then systems of engagement, where people engage. Now there's a third layer, which are systems of intelligence. If you look at the topology of a company, essentially it looks pretty much like this. Your journey starts on websites and, you know, you're gonna hit the website, right? You know, think of yourself as a consumer. You start on your mobile device. You're on your website. Typically, the application that runs that website for most large companies is probably something like Adobe Experience Manager, which runs the web content management infrastructure and all of that. Then maybe you wanna buy something or transact. You're gonna be taken to a transactional site, and that you get into commerce. Whether it's a marketplace or a B2C commerce engine or a B2B commerce engine, a retailer, you know, essentially you're gonna have an infrastructure, and that could be a Shopify, but unlikely. Enterprises don't deal with Shopify. Shopify has Shopify Plus and et cetera, but the average Shopify customer processes about $100,000 of gross merchandise value a year. The average SAP Hybris customer processes about $300 million a year of gross merchandise value. Some of them are north of $10 billion. You know, you're dealing with commerce sites that are powered by technologies such as Oracle, ATG, IBM, SAP, et cetera. You're gonna be taken to that site, and then you buy something, and maybe you're gonna come back for the warranty, or you have an issue. You're gonna go to a community. You're gonna try to self-serve, and ultimately, you're gonna hit a contact center. That's the world of customer service. Behind the scenes, you have agents in the contact center, in the workplace, and then that can link back into areas such as research and development, product development, manufacturing or G&A or et cetera. That's the cycle. Fundamentally, what Coveo wants to do is, and what Coveo does is we're the engine behind the scenes. By the way, that's just an anecdote, but the Coveo logo was built on that. The Coveo logo is a signal on one side and an amplifier on the other side, 360 degrees. That's the way it was designed. The reason is that we inject ourselves into these experiences, and we collect signals that we can carry through the experience. In the world of AI, the way I explain AI to my wife, who's a dentist and really is not really good with technology, is before AI, humans programmed data models and rules. You know, you program rules on data models. After AI finds the rules. That's the fundamental difference, and that's the transformational aspect. AI finds the rules because AI creates a flywheel effect. In a way, what I'm gonna watch this weekend, if I do, if I watch something on Netflix this weekend, in a butterfly effect, it will affect your next recommendation and the way Netflix will assemble your next experience. That's the power of AI. AI has the ability to process massive quantities of data and essentially figure out the rules. AI, in our world, learns from every interaction better, and that's really, you know, the way that works. It changes the world from that perspective. We built a platform for that. We built a platform that reaches content at scale, that collects, in almost real-time, the signals from every interaction and is able to serve, you know, dynamically the next interaction in real-time. We created solutions on top of that platform, use cases. One of them is in commerce, and the beauty and really and especially in this day and age, you know, people talk to us about the economy and et cetera, Coveo is all about ROI. Despite the economy, we continue to believe that, you know, I continue to believe that no matter how the economy goes, if I hand you a bag of dimes, you're gonna give me a nickel. I think so. Although right now, I'm not even sure when I look at the markets, but, you know, in general. That's what Coveo is. Coveo, we can come in in commerce and essentially say, "Hey, we can leave your infrastructure as is. You're using SAP. You're using Salesforce Commerce. You're using Oracle ATG. You're using whatever. It doesn't matter. Don't change that. Don't rip and replace. You can do add to carts. You can show products. You can connect them to supply chain. You can process a payment and all of that. We're gonna put our technology on top of that. Within 4-12 weeks, we're gonna increase your revenue. That's what we're talking about. We're gonna increase because by adjusting the relevance dynamically, detecting, you know, customer intent signals, making better recommendations, we're gonna actually increase your conversion, and we're gonna increase your cart sizes, and we can even start looking at constraints, as we'll talk about in a few minutes, around inventory availabilities, around, you know, showing you the full catalog, detecting what's potentially higher revenue, higher margin, et cetera, and ultimately increase loyalty. If you're doing $1 billion of commerce, that matters, and we're gonna show you some of those numbers and some of those examples today. In the area of customer service, especially in a tough economy, the first thing companies wanna hang on to is their customers because that's the cheapest source of revenue. They wanna take care of their customers, but they can't increase the cost. How can you know, if you're not growing, how do you make customers happier and get more revenue from them without increasing the cost or potentially lowering the cost? If you're growing, like Salesforce, for instance, has been growing all along, how do you grow the company without growing support costs linearly? That's through self-service, and pushing the right knowledge to the right customer or the right agent at the right time, so that everybody self-serves and everything is much more efficient and you don't need to hire as many agents, and really bringing intelligence from across an organization to each customer in their context. Then from a platform perspective, we have a search and recommendation platform that essentially can increase you know on websites. You need you know there is also the requirement to make websites much more engaging and much more personal. There is no such a thing. It is no longer acceptable for a large organization to deliver vanilla to everyone, to deliver the exact same experience to everyone. When you go to a URL, the content should adjust dynamically as soon as you start clicking. Now, 99% of companies don't do that. Hence the opportunity, in fact. The expectation is clearly there. In the workplace, same idea. If you can enable more employee self-service, if you can make intranets. I mean, I don't know how many of you love SharePoint. I haven't met many people in my career who love SharePoint, you know, because the idea that you're gonna feed a single platform, put all your knowledge into it, and that you're gonna go get everything you need from there is absolutely flawed. Content is everywhere. You need to be able to find the right content from across an organization and bring it in the course of work within 10 milliseconds to help people become more proficient at what they do and find and get the information they need. That's exactly what we do. Although, you know, right now, as I'll talk about later when I talk about go-to-market, it is very obvious to us that service and commerce is where there's a high ROI. That right now, we don't believe that companies will invest as much into. 5 minutes? 15. Oh, okay. Good. I was looking at my timer over there, and I was like, "Okay." For us, it's really right now about commerce and service. It's really about the idea that, you know, because those are high ROI solutions, this is how we land new accounts. Let's talk about commerce for a moment, and Laurent will go into more details. I'll talk to you about commerce, I'll talk to you about service, and I'll talk to you about the platform, the application. Commerce right now, we announced it in our last quarter, was our best quarter ever. We're excited with our service business. We're excited with. We love all of our children the same, you know, platform, service, and commerce, but there's no question that the opportunity in commerce is mind-boggling right now. I'd like to give you an example of how intelligent personalization can transform commerce, and I'll give you an example of how. Today, companies work like this. They look at things like, you know, traditional search engines look at click-through rates, and they monitor that, and they serve you more of what's popular. If you're a Canadian Tire and you run a search engine, I'm gonna understand, you know, what people click on and number one, so let's say product A, 10%, product B, 9%. Then I'm gonna look at add to cart, what people buy. People click on A a little more, but they don't add to cart as much. They click on B a little less, but they add to cart more. That's where right now the world is, and most companies stop right there, and search engines learn that and serve more of what's popular, what people click on, and what people add to cart. You know, you see, you. We've all been on commerce sites where it says most popular products, for instance. When you start doing that, what happens is that suddenly the engine starts learning what's most popular, and typically in retail, as an example, what's most popular, you know, there's a notion of popularity. What is really popular is something that people love, and that's 30% discounted. Now, that's really, really popular. What the search engine starts doing is promoting stuff that's heavily discounted and that's popular. It forgets to display the tail end of the catalog, the entire catalog, to the consumer, so those products stay in the warehouse because they never get sold. The margins go down, and the first thing you know is the stuff that's in the warehouse needs to get sold, so you're gonna discount it, you know, two months from now. That, my friends, is part of the reasons why in digital commerce, the margins went down dramatically over the past few years. When you start looking at more sophisticated algorithms, you start looking at things like that. Margin, excess inventory. If you have 5,500 of product A in the warehouse, you gotta sell them. That ought to be factored in in what you're gonna show customers as they come. How about return rates? How about shipping expenses, in-stock at store, brand support, et cetera? What we're building, and we're continuing to do R&D there. That's the main difference between a search engine and an intelligent AI platform. What we're building, in fact, is the algorithms that actually can deal with these multiple dimensions and make the best decisions to maximize both the balance between delivering great experiences but driving, in fact, better revenue and better margins for the company. We're doing a lot of R&D in that area. Our commerce solution essentially allows a company to deliver, and again, Laurent will show you some visual examples of that and so on, but allows companies to deliver highly personal customer experiences. I thought they were clapping for us. Really, but also, you know, where we're moving, and this is an ongoing thing, this is really the main R&D direction for us, is automating revenue maximization. This is a five-year journey for us. We wanna be, and continue to be, the best at that. So we're really taking it, you know, way beyond. Then enable a different type of merchandising where merchants no longer make manual decisions about putting umbrellas on sale before it rains or barbecues because it's sunny. You know, where merchants will really have the tools to test and run machine learning. Essentially, our retailers, they not only want to be like Amazon, they need to be like Amazon. You don't have a choice because consumers, again, are a browser window away from going to Amazon. This is where the bar is. You're dealing with complex demand, you're dealing with complex business, each product with different attributes and then the merchants have insights and they have a thousand of ideas that they want to test. We want to give them the infrastructure, the AI infrastructure, actually, that allows them to both delight the customers, but, you know, really maximize revenue and profit at the same time. Nobody in the commerce world is talking about that. Nobody in the commerce world is talking about that. If you go to Salesforce Commerce Cloud, if you go to SAP, if you go to Adobe Commerce, if you go to. Well, Oracle is winding down its commerce business and so on, or IBM. This. They're not talking about the algorithms that actually do that. These are the fundamental algorithms that are not about delivering commerce, but are about making sure that companies actually sell and make money. We think that's really, really important. Laurent will show you that, you know, it. This is just an example that, you know, in the world of commerce, you know, different people looking at the same thing in the world of Coveo will actually get different recommendations, as you see below. I won't steal Laurent's thunder. He'll talk about that. Essentially, there's a huge difference between the scenario on the right and the scenario on the left. This, my friends, is really fundamental to driving business and so on. Highly important. At the same time, how we can use deep learning to actually adapt in real time. It's called the cold start problem. In the world of commerce, oftentimes we don't know who's at the other end. We don't even have a cookie. Just by watching behavior through deep learning, we can actually adjust a different type of experience. Again, Laurent will show you that. We'll also show you the financials on how that moves the needles. That's an example. Caleres is an example. They own 14 brands of shoes. You know, Allen Edmonds and Famous Footwear and Ryka, Sam Edelman, and et cetera. You see the types of increases in conversion and lift in conversion rate that we're doing with machine learning. That company does more than $3 billion worth of sales of shoes, and so that really matters economically. In the area of service, we're you know it's really about increasing customer satisfaction by driving a better experience. That's important because it impacts revenue, it impacts loyalty, it impacts retention. Really, at the same time, improving the agent efficiency and reducing costs. How can you get both is really the idea. Historically, if you wanted to improve customer service, you needed to spend more money. What Coveo is doing is we're going to companies, and we're saying, "Hey, through better algorithms by using AI, you can do both." You can drive more self-service intelligence, and when you drive self-service, customers prefer that. I don't know how many of you say, "Hey, I really..." You know, when you wake up in the morning, "I really want to go talk to a contact center agent today. You know, I'd really love that," right? No, nobody likes that. So the idea here is you can do both. We are at a point where we're now starting to triangulate what's the impact on OpEx and obviously cost reduction of self-service, call deflection, and et cetera. Ultimately, you know, how do you turn service from a cost center to a profit center? We're doing a lot of work around analytics and dashboards and BI to understand the financial impact of that. We already know that it's huge, and you're going to hear from Bernard at Salesforce, you know, later on today. The AI service solution of Coveo is the same platform, but in this case applied to service. In this case, what we do is we use that same technology to provide intelligent knowledge in the course of a self-service interaction or even in product. We recommend it for agents. When agents need to interact, we connect them as well. We connect the full experience. What we mean by that is we're able to integrate Coveo in their software. At Salesforce, Coveo is in the product so that you don't even need to leave the product to get contextually relevant recommendations of knowledge and help files, et cetera. We're behind chatbots. We push knowledge real time as you try to submit a case, if you haven't been able to self-serve, and we still try to deflect and avoid that you're going to talk to an agent. If you do talk to an agent, we're gonna be the inside panel of the agent that understands the customer context and the upstream journey to tell that agent, you know, what kind of knowledge is required so that the knowledge can solve the issue quickly and all the way to agent full search of knowledge, et cetera. We provide the entire end-to-end knowledge experience, again, that increases customer satisfaction and reduces cost. It's really important, and we have huge customers doing that. Xero is one of them. Xero is the largest SMB accounting software firm in the world. They're based in New Zealand. They have 3 million businesses using their software. They're bigger than Intuit in the space. We moved their self-service from less than 70% to 95%. Every time we do that, they don't need to hire an agent, essentially. That's what that really means in this particular case. The platform itself is really the ultimate glue of that story. We will see in the go-to-market section that we land with commerce and service, but then we are in a position to go to the CIO and say, "Hey, Coveo can be your unified intelligence layer across the entire enterprise." We do that for many customers, and Salesforce is one of them. Again, you're gonna hear from Bernard, who's vice president of Salesforce. But these are all the use cases that Coveo helps power at Salesforce today. We keep continuing to expand. It's the AppExchange, which is the largest business apps marketplace in the world. It's their websites, it's Trailhead, which is all the personalized learning. It's the customer self-service, and so on. Coveo is an extremely... We've demonstrated here we're an extremely flexible platform, so we have the ability to take those stories, and we do the same for HP, for Dell, for a number of them, and go to the CIO and say, "Hey, sign an enterprise license agreement with us, and we can essentially roll out Coveo as your single source of customer interaction signals and your single, you know, central AI engine to run a fully connected customer experience across the board." We think that's a huge market. Our view hasn't changed since the IPO. The details on how we compute that are in our filings. Essentially I would argue that from a value creation standpoint, only in commerce, if you take the installed base of SAP in the commerce world, by the end of this year, the SAP commerce group of customers will be processing about $1 trillion of gross merchandise value of sales, of revenue. Technically, theoretically, if you put AI on top of that's another $100 billion that you're gonna increase that revenue, notwithstanding the fact that you're probably gonna double the margin from that revenue. This is a very significant value creation, and this is a very significant market. For us, I'll conclude on two things. For us, it's really about we look at Coveo as a startup, literally. Despite the size we are today, we're still a small company. We're really building an infrastructure. My day-to-day job and the management team is really focused on these six pillars. First of all, you know, how, and I'll talk about it in go-to-market, where we focus the company to get, you know, better economics for the shareholders is our number one focus. How we gain efficiency. You see us gaining more operating leverage faster, and becoming really much more efficient quicker. This is really a key initiative for us. It's not about cutting costs. You know, that's not the idea. We're growing. It's about, you know, making sure that we continue to tune the organization, and again, I'll talk about that one as well. We're tuning our go-to-market model, and Sheila and I will talk about that later on. We're designing constantly re-engineering the customer journey so that it becomes, we reduce the friction to engage with customers. We create a simpler customer journey that is delightful and so on. You know, that's how we've built our brand and our reputation. We're bringing the customers into innovation. We have now customer advisory boards and our product managers are very active with our customers and so on to understand, you know, how we can move the needle and how we can partner with them in results. Finally, you know, we're really focused on our people. Coveo is a culture of relevance and excellence. I personally spend a lot of time on making sure that the right people are getting on the bus and for scale and that we preserve a you know a very high performance and leading culture. That's really you know those are the six things that certainly I worry about you know when I wake up in the morning. From a growth perspective, it's you know we have many opportunities. You know most software companies sell one application. I built with Jean and Guy, our COO, a business before named Taleo and it was a very good business in the HR world and so on, but we had one app. You know, it was a talent management SaaS application that we sold in the world, across the world, but we didn't have much opportunities other than to upsell. You know, when our customers hired more employees, we charged them a little more. In the case of Coveo, we have a platform that has, you know, on which solutions run, and we can cross-sell new use cases. If I land with commerce, then I can go back to you and talk to you about service. Then there's a compound effect of using more use cases from us because we collect the data along the way and we can connect ultimately commerce to service to web and et cetera. There are many opportunities for us to grow and to grow also our pricing. We think there's a lot of headroom, you know, in terms of gaining, getting a bigger share of wallet essentially from our customers. Number two, we're continuing to acquire new customers. We're expanding into new use cases. We're working with systems integrators and expanding, you know, Accenture, Deloitte, E&Y, Perficient, Smith, you know, a number of them. We're expanding the distribution infrastructure continuously. Number three, you know, we have the ability to develop new markets. We think Asia-Pac has some opportunities for us. We're growing in Europe thanks to the acquisition of Qubit, but also, you know, quite a bit organically, and we have an ability to do that. Then, you know, we're gonna pursue M&A, you know, when in a responsible fashion. You know, when the valuations, I would say on the private side, come down and make sense for our shareholders. Those are really the levers that we can pull to grow the business and, you know, above all that, I'll say, you know, making responsible choices. With that's a bit of an intro. I hope you appreciate it, and we're obviously extremely excited with the growth prospect of the company. Now you'll see it in action, which is really at the end of the day, what matters is what a customer sees and how we create value and how we triangulate that to the economic value of what we do, which drives a lot of what we can charge for our software. Thank you very much. There you go. All right. Thank you, Louis. Good morning, everyone, and good morning to our remote audience. My name is Laurent Simoneau, the founder, president, and CTO of the company. I'd like to say I'm the old guy here. In the next 30 minutes or so, we're going to give you an update of where we are, what we're investing in, what is important for us, and what is strategically important for our customers, which is quite tight. I'd like to start with an update on this slide. Some of you have seen this slide before, so that's a new version of the slide reflecting our priorities and reflecting where we're investing. We are an engine in the middle. We have a platform that is driven by AI that does classic enterprise search on the left side, so we are indexing all sorts of content in the enterprise securely, so it can be searchable in fractions of a second. That's a classic Coveo. On the right side, that's the behavioral data that we capture from all of those experiences at the top that we power with search, with recommendation in a personalized fashion. We capture all of this behavioral data, clicks, searches, page views, add to carts, buys and so on. We capture all of that and transform that into machine learning-powered relevance, AI-powered relevance. We do that across multiple lines of businesses. Louis mentioned really commerce and service being our two main lines of businesses. This is interesting because those are two different challenges. In service, most of the time, if you're going to ask for help, you're going to be logged in. You're going to provide your user identity and so on, right? In commerce, especially in B2C commerce, 75% of the sessions are anonymous. How do you personalize anonymous sessions? That's an amazing challenge that we are addressing right now. How are we going to do that? We are first of all measuring everything that we do through A/B testing, so we can increase revenue per visit in the context of commerce, profitability as a future conversion and so on. How are we going to do that? We are capturing a lot of information on our platform. We are indexing content with security and permissions and so on. We are starting. We already have a user profile for those who are familiar with the CDP market. We connect to existing data in CDPs, and our customers are also sharing with us a lot of this data about their operation. We capture all of that to build our machine learning models. Now we're experimenting with some customers about things like, cost to serve, long-term value of customers, propensity to buy and so on. Same thing on the product catalog, especially in commerce. We already have store availability when there's a brick-and-mortar store associated to the e-commerce. We care about entitlements in the context of B2B commerce. We've got different price lists for different customers, right? Now we are experimenting with some customers about, with product margins. They're sharing with us their product margins, which is critically important if the ultimate goal is to look at overall profits, right? Cost of shipping and probability of returns, all of those things are related to product margins, so that's a big deal. We are experimenting with that as we speak. All of those experiences at the top that are powered by Coveo, we position ourselves as the intelligence behind. While our customers can build user experiences with our own tools, most of the time, they will use our APIs behind the scene to power those experiences. That's why we like to say we're the intelligence behind. We like to do this at a high scale. We look at big problems where there's a lot of volume, a lot of different users, complex product catalogs, complex customer service environments. We thrive there. The more complex the environment is, the most value we're going to create. We focus on the data, the behavioral data, so we can build specialized AI. I mentioned the difference between service and commerce. From the same platform, we build different models that will specialize for the audiences and the problem at hand. We do all of that with the utmost respect for privacy and security. That's the deal that we have with our customers. They trust us with their customer data, so we take that very seriously. Let's look at what we do in commerce, our areas of investment, what we care about, what is important. First of all, the first point is relevance and value. How are we going to create or help create great experiences for the shopper and bring value for the merchant? That's where we also have additional capabilities around merchandising that we will show you. Strategic integrations. There are big platforms out there that are capturing a lot of commerce volume. We think we can help make those environments and those platforms better. Enterprise capabilities is about our ability to deal with big, complex environments. At a very high level, this is what we care about. Understand the shopper intent to provide the best results, right? You're looking for fish in a grocery store, we're not going to give you fish cookies like it is right now with some big grocers, right? That's the relevance part. Then if you're only showing what people want, that is at the highest discount, then the margins may be a problem down the road. We need also to couple that with the business outcomes that are defined by the merchandisers. Align both at the same time, for us, that's in a way the Holy Grail, and no one is doing that, I would say in the proper way for all sorts of reasons. Technology is hard to build. The data may not be available at the same time. We're really focusing on that right now with our strategic customers at getting to a point where this will be aligned perfectly. Let me give you a few highlights on what we've built that will help us get there. To understand the intent of a user or a shopper, you need to understand, you need to have a little bit of personalization running in the background or a lot of personalization actually. Problem is you're anonymous. You We have nothing on you basically to personalize your experience, right? How do we do that? Under the hood, we capture all of this behavioral data from other shoppers. We mix that with the product catalog. We create what we call product vectors. We understand what's the natural path from one product to another in the product catalog, not defined by the merchandiser, defined by other user sessions. That's what we use to power one-to-one personalization for shoppers. It works in real time. It works for search. It works for product listing. It works for recommendation. Let me give you an example here. I'm on a shopping website. I'm browsing and I'm looking for T-shirt, baseball hat, and a few additional things. Then I search for men hoodie, right? This is what I'm going to get. All right. It kind of makes sense with my history. Merchandisers have not created those links. It's been done automatically. Let's look at the different session. I'm looking for gloves and toque. Like, I live in Quebec City, Canada, so in November, that's what I need to look for. I'm looking for men's hoodies. Look at the different results. This is all done automatically because folks in the past that were looking for this on the top presumably bought what was there in the bottom. It needs to be embedded in the experience, it needs to be transparent, and it needs to be fluid. We're experimenting that with some of our strategic customers right now, and we're seeing already a very good impact from revenue per visit when we're doing A/B testing between experiences that are classic, powered by Coveo, and experiences where we're enabling this one-to-one personalization. We're quite excited by this. Some elements also that are helping from a conversion perspective and revenue per visit perspective. For a long time, we've had store availability, which is quite important, especially post-COVID. People may buy online, but pick up in store. People may wanna see is this available in store and all of that, so it increases conversion. We've proved that. Variance, so color, size, and so on at the first level, this is super important. If you're like me, and you're trying to buy this shirt, and it's only available in medium size, it's not exactly a great experience, right? What we brought from the Qubit acquisition is also the ability to do badging. The merchandisers will create badging rules and insert that into the experience. I'll show you a little bit more what's the view on the merchant. How do we now provide great consoles and tools for the merchandiser to configure the whole experience, right? This is the evolution of the Qubit product that we acquired last year. We call that the Coveo Merchandising Hub. From that console, you have the ability to personalize content, create badges, configure product recommendations, so on. More importantly, you can build campaigns. You're building campaigns. From those campaigns, you can do analytics, and you can get product insights on what works and what doesn't in real-time. You have, for instance, here you have a few campaigns, and you see that there is an incremental revenue generated versus the baseline. If I click on the campaign here, you can look at the campaign metrics. You can look at conversion rate, revenue per visitor. You can look at the additional data here, because often in online stores, that data may not be reliable, right? All of this helps the merchant understand what's going on and make decisions on what's working and what's not. Now, this is new, and this is what we're testing with customers right now. That's the merchandising for product listing manager. Think of a category page, so men's sweater or things of that nature. Merchants will wanna have some control on what they are showing. They are trusting AI and machine learning, but sometimes you're releasing a new item or so on. How are you going to surface that, right? One way to do that, and that's what we've built in the past months, we call that a product listings manager. You will see here all sorts of listing pages or category page. You're going to select the men's sweatshirt, and you already see revenues and conversion and bounce rate, and you all see metrics tied on that, right? I wanna boost Nike products. I'm a merchant here. I wanna boost Nike products. I've got a promotion. I wanna boost that, right? How are you going to do that? Click here, select brand. Say brand is Nike. I wanna push that, and boom. As a merchant, already you see the results changing. As a merchant, you may wanna drag and drop. You may wanna say, "For this listing page, I wanna see these results at the top. I wanna pin those results." You're going to drag and drop at the top here the results, right? You can save this and test if it works and do an A/B testing and test if it works. You can measure when this customer starts sharing with us the margins. In the campaign, instead of just tracking revenues, we are going to track profits from those campaigns. Of course, we have all of those dashboards at the top that will track the overall system, how it works. By mixing relevance, and one-to-one personalization is a big component of the relevance, and the Merchandising Hub, we think we're addressing really the challenge of stores, online stores out there, right? Bringing increasing revenue and increasing profits. With this, we think we have the right components. All right, let's switch to service. We still must care about relevance and value in service. The value is different. It's not about revenue, it's about case deflection, it's about time to resolution and metrics of that nature, and we do that with a lot of investment in relevance. We care about omni-channel support. As Louis said, it's not exactly the best outcome to talk to a customer service agent all the time, right? People wanna get service across multiple channels, and we're investing quite a lot of resources making sure that our integration with strategic partners like Salesforce are the best that it can be. Let's talk about the omni-channel and the journey. When you're a customer, you have multiple ways to get service when you have a problem. On the right, this is the most expensive one for the company to provide service. On the left, that's the cheapest one. Our goal is to cover the entire journey through various methods, through various technologies, through various integrations and make sure that all of this journey is connected. Let's look at some examples here. Self-service success. That's, in a way, classic search. You go on a website of Intel, you ask a question or you ask a complex query, we're going to surface you the best answer that we found with a degree of precision. We don't show things that we're not sure about. Think of a little bit of what Google does, okay? We call that Smart Snippets. We surface the answer from the question. Then we have classic search results, and then at the bottom, we also have people ask this, people ask that, and when you look at the analytics that's quite popular. That's all based on the same technology from a question answering standpoint. If you're not finding what you want and you wanna log a case, we call that case deflection. You get into a form like this one, this is from Okta, another of our great customers, and you're entering your content here, right? "Oh, I need to change the MFA, I want to reset template." And you will see that on the right Coveo is surfacing results automatically that may help you not log a case, and with our deep learning capabilities, we're surfacing also tags that may help you route the case when you submit it. You log a case. Now the agent within its console, so that's Salesforce, Coveo is embedded in Salesforce on the right side. The agent will have results coming from the entire enterprise being proposed, being recommended on the right based on the case that was just logged in. The agent also has the ability to search. We're going to provide answers when we can, and then the results will also adjust. There's a session summary, what we call the user action, where the agent knows what the user has done previously. Finally, this is new, we're investing quite a lot in Slack. You're all familiar with Slack, I assume. Slack is a different channel. It can be used for customers, but it can also use for swarming. Multiple agents will provide a question to Slack channel and provide answers, sorry. Same technology here will show answers when needed. Okay. Finally, if you really want to go as early as possible, you do what we call issue avoidance. This is Xero. Louis mentioned Xero. We are embedded in the Xero app for millions of users each and every day. When you enter the Xero app here, this is what you see, right? Dashboards about your company. You're looking into your contacts and you have a question. The question mark here at the top right, this is powered by Coveo. Look at the recommendation. Of course there's a search box, but look at the recommendations tied to what you're doing and where you are in the application. If you go into invoices, recommendations are obviously different. Okay? That's a way to do issue avoidance. You're in Xero, you don't need to log a case. We want you to find your problem before even asking question or before searching, but of course you can search and it will be contextual, right? We're working at getting even earlier in the journey. We call that issue anticipation, and down the road we are also experimenting with field service enablement. Finally, from a platform investment perspective, we care about scalability, we care about reliability, security and compliance, and global presence. All of our customers are running on the same cloud. We release more or less 1,500 times a month in a seamless fashion. We monthly, more or less, 4 billion index updates, 25 billion events, and billions of searches. This is what we do each and every month. We have a U.S. presence. We have a HIPAA cloud for the healthcare sector. We have a European cloud for data residency. We have a cloud also in Australia, and now we're opening a Canadian cloud in January. All of this allows us to innovate faster, to also have, I would say, a pretty solid cost of operations from a cloud perspective. With that, thank you for your time, and back to you, Louis. All right. Let's talk about go-to-market and so Sheila and I. I'll introduce Sheila in a minute, but we'll talk to you a little bit about how we continue to go-to-market and how we're expanding the go-to-market. First of all, for us, it's all about optimizing the P&L for the company. You know, we wanna grow efficiently, and you know, very simple, down-to-earth principles. We wanna, you know, Coveo is a company that has a multitude of applications and you know, there are a lot of places where we can go, and for us it's a matter of focus and really picking the three things that we should do and then dropping all the rest. It really boils down to where can we get more revenue per customer over time? Given that we're a platform and that we can land and expand, which I'll talk about in a minute, you know, how do we acquire customers that have the ability, have the profile to expand with us? Today, our largest customer is a $4 million a year subscription. We wanna see that number go to $10 million, and we wanna have, you know, many more than one. You know, in market selection that matters. Number two is continuing to increase the efficiency of our customer acquisition model relative to the revenue that we bring in is obviously a key consideration. The cost of sales in the SaaS industry doesn't go down linearly, you know, again, versus the revenue. It doesn't cost you know, 10x to sell a customer that is 10 times larger, that will give you $1 million over a customer that will give you a $100K. We're not unlike any of your businesses, any other business. This is really, really important, is understanding exactly, you know, where we can find that optimal mix. You know, needless to say, where we excel, where we dominate is really the terrain where, you know, when we engage in sales, we convert, we win, essentially, and it has to be a very sustainable differentiation in the market selection, so to increase our conversion rate, make our salespeople wildly successful and increase the revenue. Finally, you look at the back end of it, customers that follow a certain pattern that really are a good fit for the platform that our product development guys, our R&D people love, our service people love, and customers that are great to work with like Bernard and really so from a retention, and that translates into continuing to increase the net expansion rate, obviously, and making sure that we're successful. It's really about six key initiatives, five key initiatives, sorry, that and it's really around, you know, continuing to push value. You know, play where you bring a lot of value, just drop the rest, and so on. If you're a software company today and you don't deal with Coveo, you're losing money every month. That's literally, you know, where we are in the customer service area, and we're soon gonna be there. I'm confident in commerce intelligence. If you're a retailer and you don't deal with Coveo, I would love to. You know, when I'm online at Canadian Tire, I would love to put Coveo on top of that and get only 10% of the margin we can generate for them. You know, we see that, you know, all day, every day, and this is where we wanna play. Fundamentally, the message of Coveo, first of all, if you go on our website, there's a platform message. If you look on the left-hand side here, you know, it's really about an AI platform that makes every experience delightful and profitable. It's really also on the right-hand side about ROI. Everything we do stems from ROI. We have a business value assessment team within Coveo. Those are expert analysts, financial analysts, and when we work with a customer, we do not engage unless we understand the financial return, the projected financial return of what we do. We believe actually that in this economy, there is one buyer, the CFO. No matter who we sell to, there's always, especially in this economy, a CFO at the end who will say, "Wait a minute. How is that?" You know, they're very meticulous right now about how they spend. "Wait a minute. Is that bringing us revenue, or is that cutting costs?" We're designed for that. You can see here it's about boosting CSAT, it's about websites, it's about productivity, you know, measures. It's about obviously revenue margins, et cetera. You can visit our website. It's about profitizing every digital interaction. This is really, you know, the key message here at the center of this slide, and this is really the go-to-market message and the positioning of Coveo. To our knowledge, we're the only company in this space. Everyone in this space talks about bits and bytes and technology and all of that. We're about dollars, and we care about that. Our lines of business are really aligned with that. We run the company with three lines of business, and the company is divided in the form of a pod structure, so we have teams, cross-functional teams in each area. Commerce and service, so both in B2B, we're very strong in business to business. We're very strong in retail now also. We've talked about self-service and contact centers. The platform play. The way that we run the business is we invest. New logo acquisition to land is done in commerce and service because this is where we can demonstrate very quickly hard ROI. We can show immediate ROI. We can walk to a large organization and say, "If you deal with us, within 90 days you're gonna earn $X million, period." We expand. We have a platform team that once we do that successfully, and we gain a lot of trust with the customers and the metrics and et cetera, we can go to the CIO and expand and then cross-sell solutions and et cetera. This is today how we run the railroad, and we think it's extremely well-adapted to the current economy. To do that, we have packaged integrations to the most popular enterprise apps. In the service area, Salesforce dominates. There's no point dealing with anybody else. Salesforce owns 70% of that market within the enterprise on a global basis with a product offering named Service Cloud and a product offering named Experience Cloud in particular. On the website area, it's really an Adobe world. You know, most large organizations deal with Adobe, and then we do a lot of work also with Salesforce on the platform. In the commerce space, the dominant player is SAP. We also work with Salesforce. Salesforce is definitely growing in the space, a little smaller in business to business. They acquired a company named CloudCraze a few years ago, and we work very well with CloudCraze. We make it much better. They acquired a company named Demandware also in B2C retail. Little more, you know, high-end markets but, you know, growing into larger enterprises, so it's a very great mix. You know, SAP and Salesforce in the space don't compete that often, sort of different market positioning. We're very well covered from that perspective, and we invest aggressively in R&D to make sure that we are the absolute best solution for these customers, and we're far ahead from any competition in those ecosystems. We're also aligned with systems integrators, so those are the family doctors of these companies. If you're Thomson Reuters, I'm just gonna name companies that are customers, Pfizer, J&J, Philips, et cetera, you work with Accenture, you work with Deloitte Digital, you work with NTT Data, you work with, you know, all those large systems integrators. They all have practices. If you type Accenture's Coveo on the web, you'll find the Accenture machine learning practice in the space designed around Coveo. We spend a lot of time, and we have entire teams at Coveo focused on recruiting, enabling, supporting these systems integrators as well, and they're aligned by line of business, as well. Smith is a smaller system integrator, but 100% focused on enterprise commerce. They're very specialized in this space. They're one of the best in the market, and hence why we deal with them, et cetera. These are the partners. Essentially, the go-to-market strategy is designed around supporting the entire cycle. We have groups that, as I just described, support systems integrators, doing a lot of educating, education training enablement. The more we enable some of their developers at Accenture, you know, their salespeople, their project leaders and their partners, the more we get referrals, and we certify them. Obviously, you can hop on the web. If you're a developer, you can hop on the web. Coveo is an API first headless low-code platform, so that's a bit technical for some of you. But essentially it means that it's very easy for a developer to fire up Coveo and it is definitely our strategy to, you know, make it easier and easier to engage for a developer. Those developers are either found within big companies or within the systems integrators we deal with. If you're a developer at Accenture in India, wherever in the world, you just log on the Coveo website and you can touch the platform right away and start building essentially. We're creating that, we've created that developer experience and allow the self-service trials. The goal here is not to go down market for us. The need for Coveo is with enterprises, but you know there are thousands of developers at Procter & Gamble, and those are the people we talk to. Our sales team is focused on selling to business units, so we have commerce black belts, service black belts, platform black belts, search recommendation engine black belts, calling on heads of digital, heads of marketing, if it's websites, heads of customer service and CIOs. Ultimately our platform team, once we're in a company, our platform team is you know a very senior group that you know is tasked with establishing strategic relationships with CIOs. Essentially the play here is we go to CIOs with a very senior team, and we talk to them about the Coveo platform and how to create a center of excellence within their company and leveraging the fact that we're already in their company and very successful with a number of use cases, and so talk the CIO into signing large scale enterprise agreements. We think there's a lot of upside for the company in doing that. We're definitely investing in that area. With that, I'd like to introduce Sheila, our CMO. I'll just say that Sheila came to us almost two years ago now, and when Sheila came to us, she said, "Louis Têtu, I don't know technology, I know yogurt, shampoo, and clowns." The reason is Sheila ran marketing at L'Oréal in Canada. She ran marketing at Danone, and she was the CMO at Cirque du Soleil. Sheila's joined us and has really transformed our global marketing and our global brand, and it's with a lot of pride that I introduce you. Thank you. I'll put this as well. Thank you. Hello, everyone. A pleasure to be here with you to talk about marketing. Today I'll talk about how we increase pipeline, and not only in terms of quantity of pipeline, but in terms of quality of pipeline, so we can be more efficient. That's what we pass to the sales team, because that's what we do in B2B, we create pipeline so that we can pass the baton to the sales team, and they go and sell it. How do we create more volume of pipeline and more quality of pipeline? Here are some metrics for calendar year 2022, so year to date, calendar versus last year, of how we improve marketing qualified leads in terms of volume quality. In terms of volume, we have definitely a lot more prospects interested in Coveo, plus 65% more leads. In terms of quality, one thing that we've done that is not in here is that we created a lead scoring system. When a lead comes in, we look at the quality of this lead. Is that an enterprise? We love enterprise. We mention it. We want enterprise. Is that an enterprise? What industry? What tech stack? Then we can know what the priority is for the sales team because we know that those customers, we want to win them, and we know we can bring a lot of value to them. We are also obsessed by hot marketing qualified leads. What is that? Hot MQL is actually people asking for a meeting with us. We created enough content, enough visibility, so that they are interested in asking a meeting with us, through book a meeting, get a demo, contact us. I'll talk about this later, but those are gold leads. We want more of those. We were able to increase it by 83% calendar year. Also, Salesforce and ACP leads. We mentioned it before. We like those leads. We know we can be really successful with this integration. Plus 140% of leads coming from Salesforce and ACP, and this will continue to grow in the future. Expanding with our installed base, tons of opportunity within our own customers. We want to attract people in other departments to come and look at Coveo, plus 107% here. We're doing great things. What are we doing that is creating this, and what are we doing that will continue to bring growth to Coveo from a marketing standpoint? Four main things, and I'll go into each of them. The first one is continuously optimize digital marketing and maximize the return of in-person events. Let me explain this a little bit. From 2005 to 2020, Coveo pipeline was mainly coming from in-person events, trade shows. Then COVID happened, and the team asked to shift urgently to digital marketing because there was no such things as trade shows and in-person events. Where do we find pipeline? Online. From 2020 to 2021, the marketing team built the foundation of a strong digital marketing machine. I'm pretty proud of where we are today in 2022 with our digital marketing. It's performing well, very well. On top of that, we're bringing in-person events. We have the two best worlds coming together, digital marketing plus in-person events. This year in Q2, 35% of our leads were coming from in-person events. In Q4, it's gonna be even higher. In-person events work, and now we're adding this to what we were doing in the last two years. On digital marketing front, you know that there's a lot of touch points, and it's never finish, the optimization we can do with digital marketing. There's always things we can try. Test. Testing new messaging, testing new channels, testing new approach, new visual. What people are gonna click on. We have a full team doing this. We're working with the expert at Google, at LinkedIn to improve our marketing digital machine, and we're at a very good place, but tons of great opportunity in front of us. Hot marketing qualified lead, like I mentioned before. Why are we so obsessed about this? My team would tell you that they look at their hot MQL every morning when they wake up in the morning because they have 10 more chance to get into a meetings than a normal leads. It's people asking for a meeting. They wanna meet with us, and Louis mentioned it, we're at the table, when we are in the meetings, we win. We love them, and we were able to grow really fast on the marketing qualified leads, plus 83%. It's 19% of our leads today, in last year actually, 21% this year, and we wanna be at 30% next year. We're doing tons of things that you can see here to increase people being interested in our brand, and it comes from awareness, just knowing we exist and then understanding what we do, understanding the value we can bring to them, and then giving them a easy way to meet with us by adding tons of call to action, I mean, to increase our click-through rate so that they meet with us. Many things that you can see here with kind of book a meeting with us, meet with us, a 15-minute meeting with us, and then we know that if they meet, we can win them. Next one is maximize partnerships. With ACP and Salesforce majorly, but we have others, and we showed you all the partners we're working with, but those two were summit partner with Salesforce and were spotlight partners with ACP, and this comes with a lot of great advantages, those partnerships. The first part is that we target their installed base. We actually target their customers, and we tell them how our integration can actually superpower what they're doing today, how we can bring their experience to the next level right into ACP, right into Salesforce. They don't have to change their tech stack. We're just coming in, fitting right in, and boosting all their KPIs. We maximize our partnership through co-marketing and joint go-to-market. When we are summit partners, when we are spotlight partners, it comes with a team of people at ACP and at Salesforce helping us to create leads, helping us to generate more customers. I have a team of four people at Salesforce working with us on a weekly basis to actually accelerate some leads and create some events and create some content. We're participating in all those events like ACP CX, Dreamforce, Salesforce World Tour. We're there. We're talking to their customers, and Salesforce is and ACP is helping us just telling the added value that Coveo can bring. Last but not least is deal acceleration. When one of our deal lead is stuck, it's not converting into a meeting, or it's just not we're not able to win it, then they sometimes jump in and they help us. ACP, Salesforce or what we mentioned, like OSF and Smiths and all other partners, we can call them, have discussion, and they can help us accelerate some deals. Partnership is key in everything we're doing in marketing. The fourth thing we're doing to accelerate pipeline and improve the quality of pipeline is account-based marketing. I always use this fishing metaphor, and this is the only thing that I know about fishing. Everything is on this slide. I know nothing else about fishing, so don't ask me question about fishing. Net fishing is what is the closest thing to traditional B2B marketing. You create a big campaign. It's like a big net that you send to the market, and we try to attract as many fish as possible. Then during the sales process, you disqualify the smaller fish. You disqualify the fish that you don't like that much, and then you qualify the one that you really like, and then you transform them into customers. Spear fishing is closer to ABM. ABM, it's about sales team and marketing team working closely together to identify customers we want to win, the customer that we know we can be really successful with. We identify them, and then we go at them. We can go at them from a one-to-one perspective, so choosing one customer. This one, we know they're in market. We know they're looking for something for us, like us, and then we go with the VIP plan just for them. There's the one-to-few ABM, when we create a small cluster of customer with the same pain point, the same industry, the same tech stack, and then we can adapt content, and we go at them as a cluster of customers. There's the one-to-many, a bigger group of customer that are look-alike, and we go at them with the sales team all together to go and win those customer proactively. It's a bit different than what we do today, but there's a lot of potential. We started this last year, doing a lot of ABM. We started slowly. In Q3, we accelerate this. We actually hired 2 ABM expert at Coveo, and we wanna be the best in class in ABM in SaaS, in the SaaS business. Q4, we have many projects, 20 projects of ABM touching many accounts in all our line of business in all the three ABM approaches. This should have amazing results. We will continue to optimize our digital marketing. We will go big and bold in events and in-person events. We will continue to be obsessed with getting hot MQLs, maximize all our partnerships, work with them, it could be a win-win situation for them and for their customers, and then master account-based marketing is. There's much more to that, of course, what we do, but those are the four things that really move the needle. That was for marketing. Now let's move into the other part of my job, which I'm really proud of, and it's our ESG and 1% Pledge. I'll take a little bit of time with you to talk to you about what happened since we went IPO last year and when we pledged 1%, 1% of our time, 1% of our product, 1% of our equity, and 1% of our profit down the road. First, we actually had to decide what we wanted to do with that time and that money and that products that we are offering to foundation. We quickly got to this mission. We were all aligned about the fact that we wanted to democratize knowledge and education. That knowledge is the ultimate equalizer. That education is the key to empower people to do more on their own. We decided to invest our 1% of time, equity, and product into helping foundations, nonprofit organizations that are actually making accessible, giving it access to young people, mainly 6 to 18 years old, are focused in vulnerable communities to education and knowledge. What does it mean concretely? For our 1% equity, we already give two cycles of donations. We had the 6 months where we, after IPO, where we were not allowed to do anything, but we started in Q2, so we gave a first donation in July, and then Q3, we gave a donation in October for a total of CAD 184,000 in Canada and around $75,000 in US that will be given for Q4. The timing is a bit different for the US donation. We're working with Benevity as a platform for our equity donations, so we actually, upon IPO, we transfer them 1% of our share, and they liquidate it every quarter for us, a portion for the next 10 years, and we tell them where to give the money. We chose many foundations. You see them on the slide. The four more important ones are Actua. Actua is an amazing Canadian foundation supporting STEM education in vulnerable communities. There's Girlstart, which is really close to Actua, STEM education as well, focusing on girls in U.S. Pour 3 Points. It's a Quebec foundation that are actually using sports to get the kids. So coaching coaches to be more than a sports coach, to be a life coach, to help kids have an inspiring model in front of them. It's amazing what they do, and I'm super proud to be associated with them. Then LOVE. LOVE is about emotional intelligence, about how to build your confidence as a kid when you may not have the great role models in front of you and many other on this. Again, that fund donation that will happen every quarter for the next 10 year and will build stronger and stronger partnership with those foundation and add more in the future as well. For the Pledge 1% product, we gave our first product donation with Alloprof. This should be live at the end of November. It's another amazing platform. They actually help student and parents for homework. Imagine if you're a parent and you cannot help your kids to do their homework. At least you have a resource with tons of amazing content and great tools to help kids do what they have to do to succeed at school. This is great. We're really happy to see our Coveo technology behind this great platform. It should actually be live end of November, and we'll announce the results and the go live through a press release. Next product donation should go with our key partner that I mentioned before, Actua, LOVE, Pour 3 Points, Girlstart, and Centraide. We wanna work with them to offer them our technology. The next one is one percent of time. We are giving two days at Coveo to all our employees for volunteering, and then we inspire them with different option of volunteering. Tons of things are happening there. More to come because we're building volunteering opportunities with our key partners that you see on the slide. You see examples here of things that we've done in October, November in different type of foundations. ESG is more than, it's more than the one percent pledge. We also have an environmental play. We have our people well-being, so making sure that we are a good employer at Coveo, that it's great to work at Coveo, and then embracing inclusion and diversity. On the environmental front, I won't go into all the details of this, but the thing that could interest you is the fact that we're gonna officially launch our carbon footprint evaluation. We're working to find the best supplier right now to do that in the first part of next year, and then of course, taking this and build our plan to decrease it and improve it in the future. Well-being. A lot of things have been done here to make sure our employee feels good at work or at home, working from home. A lot of things about mental health that we've put in place to support our employees and physical health as well with sports and gyms that we sponsor, and also activities that are happening at the office. Inclusion and diversity. Two projects that I'm really happy with is the launch of our Professional Women's Network at Coveo. Many initiatives to really regroup women at Coveo, making sure they have a network that they can rely on. We have one thing that I really like is the Inspiring Women series, when we invite women from other companies to talk to our women and say how it is in other company. How can you succeed in your role in this man's world? How do you succeed, and how do you get a place at the table, a spot at the table? The other thing that I'm really interested in is the pilot project we're doing with neurodiverse internship. We're gonna have two interns on the autism spectrum who will actually come and work at Coveo. It's a test we're doing. We're pretty convinced that this is gonna work really well. We're one of the best environments to work for those type of people, and we think we can actually learn. It could be a really win-win situation for us. We have our two first intern coming in Q1 next year, and we want to scale this project in the future. There's also Centraide. We're giving to Centraide every year for the last 10 years. We just launched a campaign on November 10. It's gonna finish on November 29, and our objective is to raise $400,000 to give to Centraide. Last but not least, we work with the Pledge 1% organization that actually work with all companies that are doing the Pledge 1%, and they invited us to join them at the Nasdaq bell ringing event on November 29. They mentioned actually that they invited us because we're next generation of corporate leaders in the social impact space, and we're really proud of it. They actually invited us also to present what we're doing at Coveo, to inspire other company to do the same. That's it for me. Thank you very much, and I think it's time for the break, right? I'll pass it on to you. Thank you. Thank you, Sheila. All right, it's the moment you've been waiting for. It's a bit of a 15-minute break. We'll start again at 10:55. Again, we're gonna kick off the second half with our excellent customer panel. Be sure to be there on time for that. Thank you so much. From heaven for you and me. Oh, the shark, baby, has such teeth, dear, and it shows them pearly white. Just a jackknife has old MacHeath, babe, and he keeps it out of sight. You know when that shark bites with his teeth, babe, scarlet billows start to spread. Fancy gloves wears old MacHeath, babe, so there's never a trace of red. Now, on the sidewalk, Sunday morning, lies a body just oozing life. Someone sneaking round the corner. Could that someone be Mack the Knife? There's a tugboat, down by the river, don't you know? Where a cement bag's just a-drooping on down. Oh, that cement is just, it's there for the weight, dear. Five'll get you ten old Macky's back in town. Did you hear about Louie Miller? He disappeared, babe, after drawing out all his hard-earned cash. Now MacHeath spends just like a sailor. Could it be our boy's done something rash? Jenny Diver, ho, yeah, Sukey Tawdry, ooh, Miss Lotte Lenya, and old Lucy Brown. Oh, the line forms on the right, babe. Now that Macky's back in town. I said Jenny Diver, whoa, Sukey Tawdry, look out to Miss Lotte Lenya, and old Lucy Brown. Yes, that line forms on the right, babe. Now that Macky's back in town. Look out, old Macky's back. Every night I hope and pray a dream lover will come my way. A girl to hold in my arms and know the magic of her charms. 'Cause I want a girl to call my own. I want a dream lover so I don't have to dream alone. Dream lover, where are you? With a love, oh, so true. A hand that I can hold feeling near as I grow old. 'Cause I want a girl to call my own. I want a dream lover so I don't have to dream alone. Someday, I don't know how, I hope she'll hear my plea. Some way, I don't know how, she'll bring her love to me. Dream lover, until then, I'll go to sleep and dream again. That's the only thing to do till all my lover's dreams come true. 'Cause I want a girl to call my own. I want a dream lover so I don't have to dream alone. Only thing to do, get all my lover's dreams come true. 'Cause I want a girl to call my own. I want a dream lover, so I don't have to dream alone. Please don't make me dream alone. I beg you, don't make me dream alone. No, I don't wanna dream. Out of the tree of life, I just picked me a plum. You came along and everything's starting to hum. Still, it's a real good bet the best is yet to come. The best is yet to come and babe, won't it be fine? You think you've seen the sun, but you ain't seen it shine. Wait 'til the warm-up's underway. Wait 'til our lips have met. Wait 'til you see that sunshine babe, you ain't seen nothing yet. The best is yet to come and babe, won't it be fine? The best is yet to come the day you're mine. Come the day you're mine, I'm gonna teach you to fly. We've only tasted the wine, we're gonna drink the cup dry. Wait 'til your charms are ripe for these arms to surround. You think you've flown before, but you ain't left the ground. Wait 'til you're locked in my embrace. Wait 'til I draw you near. Wait 'til you see that sunshine babe, ain't nothing like it here. The best is yet to come and babe, won't it be fine? The best is yet to come the day you're mine. Somewhere beyond the sea, somewhere waiting for me. My lover stands on golden sands, and watches the ships that go sailing. Somewhere beyond the sea, she's there watching for me. If I could fly like birds on high, then straight to her arms I'd go sailing. It's far beyond the stars, it's near beyond the moon. I know beyond a doubt, my heart will lead me there soon. We'll meet beyond the shore, we'll kiss just as before. Happy we'll be beyond the sea, and never again I'll go sailing. I know beyond a doubt, my heart will lead me there soon. We'll meet, I know we'll meet beyond the shore. We'll kiss just as before. Happy we'll be beyond the sea, and never again I'll go sailing. No more sailing. So long sailing. Bye-bye sailing. Goodbye. No, we don't need another mountain. There are mountains and hillsides enough to climb. There are oceans and rivers enough to cross. Enough to last till the end of time. What the world needs now is love, sweet love. No, not just for some, but for everybody. Everyone. What the world needs now is love, sweet love. It's the only thing that there's just too little of. What the world needs now is love, sweet love. No, not just for some, oh, but just for every, everyone. What the world needs now is love, sweet love. What the world needs now is love, sweet love. C'est si bon de partir n'importe où. Bras dessus, bras dessous. En chantant des chansons. C'est si bon de se dire des mots doux. De petits riens du tout. Mais qui en disent long. En voyant notre mine ravie. Les passants dans la rue nous envient. C'est si bon de guetter dans ses yeux. Une étincelle merveille. Qui donne le frisson. C'est si bon. Ces petites sensations. Ça vaut mieux que million. C'est tellement bon. Bon, c'est bon. C'est bon. C'est bon, c'est bon. Voilà, c'est bon. C'est bon, c'est bon. Les passants dans la rue. C'est bon, c'est bon. Bras dessus, bras dessous. C'est bon, c'est bon. En chantant des chansons. C'est bon, c'est bon. J'ai l'esprit merveilleux. C'est bon, c'est bon. C'est bon. C'est bon, c'est bon. Je cherche un millionnaire. C'est bon, c'est bon. Avec des- C'est bon, c'est bon. - grands Cadillac car. C'est bon, c'est bon. Mink coats. C'est bon, c'est bon. Des bijoux jusqu'au cou, tu sais. C'est bon. C'est bon. C'est bon, c'est bon. Ces petites sensations. C'est bon, c'est bon. Peut-être quelqu'un avec un petit yacht, non? C'est bon, c'est bon. Oh, c'est bon. C'est bon, c'est bon. C'est bon, c'est bon. C'est bon, c'est bon. Vous savez bien que j'attendrai quelqu'un qui pourrait m'apporter beaucoup de loot. C'est bon, c'est bon. Ce soir. C'est bon, c'est bon. Demain. C'est bon, c'est bon. La semaine prochaine. C'est bon, c'est bon. N'importe quand. C'est bon, c'est bon. C'est bon. C'est bon, c'est bon. C'est bon. Crazy, no? Okay. I think we can close the doors and we're ready to go. Hang on a second. I'll be right back. All right. With us, we have Bernard Slowey, VP Digital Customer Success at Salesforce or who's SVP Marketing and Digital for FleetPride. Yes, sir. Thanks for having us. Welcome, gentlemen. Thank you so much for first of all being two amazing partners of us and customers and for your presence today sharing your story. I'll start with you, your background and describe FleetPride. Sure. Well, thanks again for having me. My name's Darren Taylor. I've been doing digital transformation for, you know, since the late nineties and more recently at FleetPride. FleetPride's the largest independent heavy-duty distributor and service provider, so we've been operating faster and more reliably. Very good. Excellent. We'll hear more about your digital transformation and so on. Bernard, I think, Yeah. I think so. Yeah. If you can talk specifically about your background and. Sure. your role at Salesforce. Sure. Thank you for having me here today. Really happy to be here. I head customer success organization. I'll talk about what that is kinda through some of the questions. Before that, I spent a year at GitHub. I led digital customer success at GitHub, and before that, 15 years at Microsoft. Always in support and success, a lot of managed a lot of agents, managed a lot of self-help experiences, and today at Salesforce, I manage all of our digital experiences. Our portal, strategy, help, all of that kinda sits under me and my team. Great. Thank you for that. Darren, I'll start with you and same question to Bernard afterwards. Talk to us about why customers engage with FleetPride and the kind of experience that is. Give us some context here. Okay. The simplest way to think about it is, we sell truck parts and repair them, okay, in the simplest terms. Like heavy duty, huge trucks, right? All across the U.S. When a truck's down, right, they need. They don't know what they're gonna need, but they need it right now in like Virginia or in New York or wherever. Why they come to FleetPride is that they need expertise of what is this thing and where is it, and then reliability, and then solutions to manage their business and manage their fleets and people. You know, that's what we focus and hone in on. From a digital transformation standpoint, that's literally where we focus, right? If you think about it and how it relates to Coveo, right, is pretty obvious, right, is what is this and I need it right now? The parts, right? They're in stock across branches and distribution centers, and sometimes even on customer's premises, right? We have products all over. Give us so everyone in the room understands the scale at which you operate at FleetPride. Okay. We have about 4,000 employees, right? We have hundreds of branches and service centers across the country in the US, and we sell about 800,000 products online, soon to be much more than that. Yeah. That's great. It's a high volume essentially, all day, every day. Bernard, give us a sense of magnitude and some of the key reasons customers you want customers to choose Salesforce, and how do you wanna serve them. Yeah. Give us a sense of scale also? Yeah. Talk about our help portal, which is where customers go. You know, I think we show an image of it later. We're probably gonna get about 60 million unique visitors to that portal by the end of this year. So we're seeing huge growth on our portal. Customers come to our portal, and we think about it in three reasons. We have three journeys that customers come to us. It's education, I wanna learn more about your product. Issue resolution, I have a problem, and I need you to fix it. And then the first journey is onboarding. I'm new to the product, and I want to come and learn. You mentioned something earlier on about all of them scenarios being handled by humans, right? Most of the time, people don't want to engage with humans. You mentioned it earlier on. Nobody wakes up in the morning and says, "I want to contact support." Right? They wanna go to a video, whether that's a knowledge article, community post, and Coveo powers that for us. We have a search-first experience on our help portal that's powered by Coveo. We have our agent console experience in the name of giving the customer the right content at the right time to solve their issue. That's kind of how we think about it. How you think about it. FleetPride, when you think about the e-commerce experience, what were some of your goals? You know, if you look at the before and after, you know, GenAI and et cetera, and then, you know, give us a sense of that journey and maybe some of the future journey. Sure. Well, first and foremost was to be the leading and when we sell availability and reliability, we need to be the best at search and become the number one search destination. We've done that, right? Even our competitors are young. We're just saying, hey, that's number one. Number two is adoption, you know, with customers in the field. Three is to understand the customer's, you know, experience or really the customer in B2B, the customer's process, and then provide solution, digital solutions to them. Digital solutions could be like rogue spending or centralized management and stuff like that. To me Just building on that, you know, we're all familiar with the immense supply chain pressures that a company like yourself has. How does automated AI recommendations and search help alleviate some of these challenges as an example? That's a very good question. It helps directly, I mean, in literally of what is this? What are my options? If you're out of stock here, what other products would work with this, and where are they, right? You need product data, you need a great search engine and AI in order to do that. If you think about it now, you know, hundreds of thousands of drivers and trucks and multiple branches and so on, how do you do that manually? I know this is a loaded question. Right. You know, how do you do that manually? You don't. Right. Just to give an order of magnitude, this year we will have added 10 times the number of SKUs onto our website. Okay. Yeah. Some of them are highly specialized parts. It's like a clutch for a 10-year-old truck, right? This specific engine, right? There's patterns to it as you're pointing out, right? The second thing is that all of us expect, 'cause we use technology and websites and all this stuff in our daily lives, see, right? But you got to follow the rules of the company that they work for, right? But it has to be simple. You all understand that, and that's really understand the business outcomes both from the customer and from us, and understand that it needs to be simple, and we're gonna use the search engine to do digital marketing too, but it's also a business tool for our customers, right? We become part of their process, and you have to be reliable and fast, et cetera, and relevant to do that, or they'll kick you out in two seconds. Can you comment on some of the metrics that you're monitoring that we've been able to achieve so far and, you know, talk about the importance of that competitively because, you know, your customers have alternatives for these parts and so on. How are we moving the needle from a metrics? What are you tracking? One of the things as it relates to Coveo and your team and I, and my team worked on this together is search rank, right? Which is, you know, when you type in something, what do people usually click? Tenth thing on the page or the fifth thing, right? The lower the number, the better. We've improved that dramatically in the last 12 months. Right. When they, you know, for those of you in the audience, when you increase or when you reduce that number, when you're become really good at showing the right product on the first result, much more customer satisfaction, much more conversion. That's right. Much more sales and every- Our conversion rates more than doubled and which translates to dollars of course, and so is what we do on our e-commerce solutions, and we've raised dramatically and for that. Yeah. You know, conversion rates double. We'll remember that. That's really good. Bernard, you make a difference at Salesforce between customer support and customer success. Just to frame the conversation, could you start by ex- We used to actually treat them. They were separate organizations in our company, and most companies have support organizations, and they can have success managers to help drive adoption. We've actually brought them more about it all as one thing, customer success. Whether a customer has a problem, whether trying to learn to do something, whether they want to adopt, it's all about driving success of the customer. That's what we're here for. Right. When you think about the evolution of that customer journey, you know, we now have. Well, maybe you could describe the number of AI-powered experiences. Yeah. That we've been working on together. Yeah. You know, at Salesforce with Coveo starting in the product and then the community and the, you know, et cetera. I'll let you. Yeah. Well, I'll just start with our portal because we've actually been on a journey ourselves. You know, about 18 months ago, we relaunched our portal using Experience Cloud. We were on a kind of custom IT stack, and with that, we enabled Coveo to be that kind of search-first experience, and we saw incredible results with our new portal in Coveo. We measure something that we call self-help success, which is customer came to the portal, they consumed the piece of content. It could be a video, it could be an article, and they don't go on and create a case. Right now, our self-help success is at 97% for our portal. If you think about the amount of customers I said earlier on that are coming to that portal, 60 million unique visitors, not even returning, it's a huge number for us, and we were at the low 80s. You know, you think about the growth that we've had there. We haven't stopped there with Coveo. When a customer wants to submit a case, we've simplified the process for them to submit a case. We have a lot of products. It's a complex ecosystem. Sometimes it's confusing for customers, like what do I need to give them? What do they have? We used to have a horrible case submission form, and you've probably all experienced this with certain companies where it was, you know, scroll down, scroll down, select all these options, give us all this information on problem. We're using Coveo in the back end, an AI classification model with Coveo that's able to recognize matching intents and see, okay, customer has given us this description, route that to the right support engineer on the back end. That's been something new we've been working on with Coveo. The other piece is we recently launched Einstein chatbot within our case submission forms. It fails terribly if it doesn't have the right dialogue for that intent, and you've probably all experienced this on different websites you've gone to. It just kind of fails. What we have is Coveo dialogue, Coveo. It falls back to Coveo. Coveo is the search engine within the Einstein bot, so we can still give them articles, et cetera, within the bot if the bot is not able to solve. Experiences that I would think of right now. When you think about it, you mentioned, you know, we like numbers, right? You know, it's really important to understand the economics of this. When you think about 60 million visitors, unique visitors, right? Yeah. Is that what you said? Yeah. A year. The ability, in fact, to help them help themselves and help them self-serve and et cetera, what would be the alternative? Again, a bit of a loaded question, but, you know, how would you do that without technology? I honestly don't know if we could have enough bums in seats. We have a huge support engineer footprint. You know, we've got credible support engineers, but we still manage a lot of volume through them today, even though 97% of customers are going to do it without technology. You know, I don't know if it would be possible without what we have with you guys and our portal. Is it fair to say that, as Salesforce grew and, you know? Yeah We all know that Salesforce is such a high-growth organization and an incredible, you know, growth story, you know, that support infrastructure, those agents, there's quite a bit of complexity in hiring them, training them, getting them proficient enough so that they can truly help customers who often are pretty competent. Yeah Scale that. As Salesforce grew, this group didn't grow quite as fast, right? Yeah. It's been. You know, obviously things are changing a little bit in the macro environment right now, but it has been hard for us to hire support engineers that be at the quality we need for Salesforce. As you mentioned, our products are, you know, quite technical. A lot of customers who we deal with will be admins, et cetera, very technical as well. So we need to find the right profile to ramp that person to be at the level we need them to be to be a support engineer. So that's difficult for us. It's difficult to find the right people. But what I rely on is that in-console experience with Coveo, that helps our support engineers reach the levels they need to reach, right? Yeah. Because it's given them content, just like we would to a customer, that's helping them do their jobs with the customer. Yeah. It's fair to say that you don't want a black belt support engineer that's so heavily trained and knowledgeable and et cetera to help a customer change their password. Exactly. for instance or, you know. Yeah do simple things that could be done. Yeah self-service and so on. Then in turn, junior support people through with technology can actually, you know, gain more proficiency essentially to solve issues. Exactly. If you talk to a support engineer, nothing frustrates them more than dealing with the simple scenarios over and over. Yeah. Like, they're smart people. They wanna handle the complex scenarios. They wanna try and troubleshoot it, swarm, spend time with other support engineers to get to it. You need to get that other volume out of the system, you know, and that's what self-service is all about, is you need to get it out of the system so that they can handle the more complex scenarios. Maybe one last question for you is when you think about Salesforce at a high level as a company, you know, there's the product that you sell, you know, the power of the Salesforce platform, but there is competition also out there. What, on a relative scale, how important to you know, for the growth of your company, is the experience? Is it about the product or is it about the experience? I think for every company right now, if you're not thinking about the experience, you're gonna fail. We care incredibly about the experience for our customers. Even that example of case submission, like that doesn't seem like a big thing, right? But we were. That's what we mean about caring about the experiences. We're getting into the minute detail of how many times do they need to click on something in order to do something. At Salesforce, we're laser-focused if it's at the center, and we're always thinking about that experience. All the data is out there, Gartner, Forrester. Like, customers will leave you now based on that experience. Yeah. They will leave you now based on that experience. That's what they're buying. Darren, perhaps you can build on that. If I operate a fleet of trucks or I'm an independent, you know, truck on the road and so on, I have multiple alternatives. On a relative scale, you know, we're not just buying a part from you. You know, how important is that experience for the you know, to keep to retain customers, and potentially, you know, does that give you price power, in fact, to a degree? Right. It's absolutely critical. Ability, right? You have to do it over and over and over and over again, right? To your point. It's not just a, you know, one time, right? You're providing not only a transactional to one part, you're also doing that, you know, thousands of times 'cause some of them are very large fleets. They have trucks all over the place, right? They're managing a ton. As soon as thousands of dollars a day, what do they do? You know, that type of problem-solving and doing it's all about the customer experience and doing that reliably. In closing, to both of you, I'm gonna ask the same question. You know, what's next for us? What, you know, working together, you know, how can we Well, one of those is continuing to push on the relevancy in AI. I mean, that's really what it's all about, right? As we you know have 10 times the amount of SKUs and rolling the small mom and pops at the same time, the amount of users we have is growing exponentially 'cause it's a slower industry to adopt. We are in a mass change. We have to push the envelope from the customer inward and do that together, right? Focusing on relevancy logic, and not only do I need this part, to your point, is I need these six. I need to complete the job. These four things also have to go through that. It's not just, you know, buy a sweater and some shoes, you actually. An AI engine that keeps tuning it. We believe that now next into all our digital marketing efforts and integrating into our customer systems. Bernard, same question, you know, what's the future? You know, what will this look like three years from now? Yeah. You mentioned something a little bit earlier as well. We're starting to do a lot more in-app experiences. We don't want the person to have to start on a portal and search and come to us. Partnering again with Coveo, then they're trying to do something in the product. We have data of what they're trying to do. Using Coveo's model to understand this is what they're trying to do, this is the type of content can solve for that, and giving them that content experience within the app. They never have to leave Salesforce. They stay in Salesforce, get what they need, and then able to go and achieve their business outcome. That's really important to us. The other thing I'd say where we're partnering with you guys as well is we're trying to expand language capabilities. You know, as we're starting to launch our bot, it's English only. We're working with you on the models to make sure that it works well in some of these, like Japanese is a very complex language, et cetera. Starting to work through different languages with Coveo as we want to go beyond English. Go global. Yes. All right. Well, thanks to both of you for being here with us and sharing your stories and the success that we have together, and we certainly hope to continue. Thank you. Awesome. Thanks. Thanks for being a great partner. Hey, good morning. Pleasure to be with you and to talk about our financials. My name is Jean Lavigueur, I'm Chief Financial Officer of Coveo. Let's start by reviewing our key metrics and KPIs. We reported for the September quarter revenues of $27.9 million. Those are US dollars. Total revenue, that was up. Of that revenue, 91% was comprised of SaaS subscription revenue. That was up 47% year-over-year. Looking at organic revenue only though, that 47% was 30%. We've been public for a year now. Reporting for the last four quarters, we're able to meet, reaffirm, or even raise guidance both on the top line and on the bottom line. When you look at our revenues, 91% from SaaS subscription revenue, the difference is from professional services revenue, which is about 8% of revenue, and there's only 1% left from old legacy customers that were on-prem, and that now, for the most part, with the exception of that 1%, has all moved to the cloud. That transition from on-prem to cloud at Coveo is done. When you look at other KPIs, CRPO up at 51%. As you know, CRPO is good metric when you look at billings. We look at CRPO. I think always, you know, very comforting to see that. As you know, of course, revenue looks more backwards. Certainly, CRPO gives you a snapshot of billings and bookings that we've done as of September 30. Reporting at 51%. Net expansion rate at 111%. Over 600 customers and over 700 employees. Let's focus now. Let's double-click on SaaS subscription revenue. Incredibly proud here to show the predictability of that SaaS subscription revenue, right? If you look at our MD&A last eight quarters, you will see revenue going up each and every quarters. How are we able to deliver, be so consistent with that SaaS subscription revenue while we've had COVID, recession, et cetera? First of all, it starts with signing customers, you know, signing long-term agreements with customers. Most of our customers sign for three years. Furthermore, you know, when we sign with them, it's always, you know, invoiced annually in advance. For those customers that actually, you know, they always commit with regard to, you know, users or number of queries. When you think of our use cases, everything that's customer-facing, we sell based on the number of queries, and those are committed for the entire term of the typical three-year agreement. It makes for a very predictable revenue stream. What happens then is that we work with them typically to increase their commitment for the remainder of the term of the contract. As a reminder, last October 2021, we acquired Qubit, hence why we had the delta where, you know, revenue grew 47% and 30% organically. The September quarter will be the last quarter where we had the full contribution of Qubit. Of course, next quarter will be solely organically, will be a very small portion of Qubit revenue. Turning to another key remaining performance obligations. As I said, when you look at SaaS subscription revenue, these are all revenue that's recognized ratably. CRPO really takes a snapshot as of September 30 of the remaining performance obligations over the coming 12 months, standing at $88.7 million, up 51%. If you think about really our business model, you look at our balance sheet, you'll see deferred revenue. Deferred revenue sits at $53 million. As I said, customers sign 3 years, but we invoice annually in advance. That's what's on the balance sheet, right? That's what's contracted and invoiced. That's $53 million. Then the next layer is CRPO. As we get to the second and third anniversary of the contract, then CRPO includes those renewal years, not invoiced yet, but included in CRPO. That's the next level. That's $88.7 million. Third layer is ARR. ARR looks at the entire, you know, it looks at revenue, 'cause that it will get renewed over the coming year. Last quarter, we reported $25.5 million of SaaS subscription revenue. ARR is, you know, crossed, it's over $100 million of total RPO. RPO over all the years, everything that's been contracted, and that's $160 million. It's not only a very predictable revenue model, but also provides high visibility as well in the future. Moving over to net expansion rate, right? Net expansion rate, two components here. The first component are, of course, GRR, gross retention rate. Those are the renewals. Of course, to get from GRR, then you add on top upsells and cross-sells. We focus, to start with, on GRR, so when you consider that 100% of ARR comes up for renewal every year, right? We're really proud of, again, being in the, you know, call it, you know, mid-90% GRR rate. Again, very high rate, very strategic application for our customers that come three years, of course, very high renewal rate. Support, we don't claim to be as good as Bernard's organization, but we certainly believe that we have also a, you know, a world-class organization with regards to those two areas. When you add upsells and cross-sells, that's how you get to the 111%, 112% that we've experienced over the past six quarters. First of all, you know, about 40% of those are upsells, right? When you look at upsells versus cross-sells, it's 40/60 mix, right? Typically as I mentioned, queries for customer-facing types of use cases, and agents for employee-facing, they're committed. Customers may start with a division, with a geo, and then will expand during the term, and will contract for the remainder of the contract, right? That sells. What's really exciting, though, is cross-sells. You know, Laurent showed you the breadth of the platform, right? As much as we want to land with, you know, service, certainly expanding, and we've dedicated teams now to ensure that customers, once they've adopted that initial use case, that then they cross-sell, right? Let me give you a couple of examples. One of the top three TV manufacturers in the world started with us, but started with commerce. They wanted to make sure that on the B2B front, they were able to ensure that they had an amazing, you know, digital journey for their customers. It was already planned that once they would live with us, then and only then did give us the customer service because, of course, all those customers buying those TVs, whenever they wanted to upgrade the firmware, the software, one platform to capture all of those user interactions so that you can go back and sell back to those customers, maybe accessories for that TV, right? Journey. Let me give you another example of a cross-sell which we reported a couple of earnings call ago. One of the largest software companies in the world, we were in one of their divisions in customer service only, right? Once we were successful with them, they were, of course, our champions internally. From a global perspective, the global team looked at all the success that they had in that division and went global with it. Now all divisions within that company that has 400,000 customers, large enterprise customers, all of them will be using Coveo across their customer service and as well as in product. We cross-sell. We upsold with regards to number of agents, of course, queries in the customer service center, but also in the product for all of those 400,000 customers. Again, amazing cross-sells. Certainly now, Louis has promoted one of our sales executives to focus on this day in, day out. We'll talk a little bit more about that white space actually later. ARR. When you look at the mix, you know, we talked about how commerce is super exciting. You see those four rows up there. When you look at the growth rate, you know, super excited, of course. This is the product, you know, the line of business, the product line that we've launched only four years ago, and certainly, you know, very excited with the growth on that line of business. Service, though, we've launched it over 10 years ago. It's a very mature one. Still growing very fast. You've seen all the maturity that Laurent showed. Very excited, of course, with service. Websites is also a good line of business where typical average revenue per customer here is lower than the other ones. However, it's easy to buy, easy to deploy. We get some good volume from that line of business, and certainly we can expand from that or cross-sell, of course. Finally, Workplace. Workplace, typically in those types of environments with a software ROI, not growing as fast, but still a nice cross-sell once we've landed with one of those kinda hard ROI type of use cases in commerce and service that we talked about. Certainly, Workplace can be a nice cross-sell. When you look at geos, we did report that we did have headwind with regards to currency with our top line by about 3%. It impacted us negatively on the top line. The reason for that is that, you know, 80% of our, of our revenues is denominated in US dollars. The 20% remaining across Canada, Europe, and rest of the world, that's that 20% that's causing that 3% variation and the headwind with regards to the top line. However, when it comes to expenses, because we're over-indexed in Canada with regards to R&D, most of Laurent's team is in Canada, that becomes a tailwind for us and is helping us with regards to the adjusted operating loss, and we'll talk about it in a second. Okay, let's talk a little bit about growth, but especially talk about efficiency here. As I said, really proud of the you know of our ability to meet exceed you know our own guidance consensus with regards to the top line. What about the bottom line, though? Went from a year ago, -26% adjusted operating loss to 17% year, so a year later, right? We've been able to keep the acceleration to keep the growth rate on the top line while showing efficiency with our operating leverage across the business. We'll dig you know we'll double-click on each of those items as to how we've been able to do that. Certainly you know we you know I think we've adapted to the market. We have a very strong balance sheet. We got over $200 million with no debt on the balance sheet. We have plenty of cash. We need $30 million to get to cash flow breakeven in two years. With that, but still regardless, we're showing more balanced growth. Clearly, as you can tell, we've adapted our approach, hence delivering -17%. Keep in mind though, that for the September quarter, having a lot of R&D folks in Canada, there's a lot of vacation that did help us for about 2%. As well, FX helped us for about 2% as well there. When we look at cohorts, right? When we look at you know customer cohorts we've looked at the data for the last seven years. This is data that we've taken from the prospectus that we've shown and it hasn't changed much really. Really you know proud to see that you know when you look at a dollar where we land five years later we'll actually double. Now we've talked about the net expansion rate at 110%, right? How actually the first couple of years it's actually faster than that. Why is that? Well most customers sign for three years as I reported so there's very little churn and hence why you see you know that dollar becoming a dollar two and then a dollar four in years after the first and second year. Then of course comes renewal. That's when we see some churn. However, we're still able to, you know, cross-sell and up-sell, as I described earlier, to get all the way to, you know, 2x after 5 years with those cohort. We talked a little bit about cross-sells and up-sells. Wanted to give you a little bit of a understanding of, you know, what is the opportunity here, right? As I mentioned, you know, Louis appointed an executive to focus specifically on that, right? When you look at our customers, about 50 of them are giving us, right now they're paying between $100 and $1 million a year, right? But for the vast majority, almost, you know, half of those customers are on, call it, service or even within just one use case within line of business. That line of business, say they're only you know, with their, they've started with us, right? Can we convert a portion of those 250 customers already paying us between $100,000 plus a year into... Look at this. We've got you know, we've got over 10 customers that are paying us over $1 million a year. They have adopted three or sometimes all four lines of businesses, right? If we convert only 25% of those 250 customers, put them on the right-hand side, and get them over $1 million with those cross-sells and up-sells, that's a $40 million-$50 million opportunity that do a good job of, again, creating those centers of excellence. That is how they've done this, how we've done this, right? Making sure that those customers actually personalize, you know, just for search, for recommendations, merchandising. Whenever there's an opportunity, there's this center of excellence where our technology gets adopted, capture those signals across the customer journey, right? That's what feeds the machine learning models. That's how we get smarter. That's how we can help. Let's double-click a little bit on the bottom line now, and it's how we will accelerate our path to profitability. It starts with gross margin, right? When you look at the gross margin, it's in red at the bottom. Product gross profit margin is, you know, has consistently increased from 80% six quarters ago to 83%. Laurent showed you all the innovation on the platform, but also in parallel to that, there's a lot of optimization on the computing infrastructure while ensuring that we're still four nines, five nines, and that there's no security issues, right? It's a daunting issue. You add the engineering team, lots of stability in the team, lots of expertise across the computing infrastructure that we leverage so far. As a reminder, when you think of, you know, cost of revenue, the computing infrastructure is really the most important cost in there. But there's also the cloud ops team, there's customer success, there's tech support, which are important components, but certainly computing infrastructure costs are certainly the highest cost in there. Of course, when you look at the, you know, total product, the total gross margin, it does get diluted by professional services. As a reminder, it's about 8% of our revenue. It's about 15%-20% margin. It does get to be a bit lumpy on the professional services front. It's still a small organization. When we acquired Qubit, the profitability was not to the levels that we've typically experienced in the past. So right now you've seen a little bit of lumpiness, but overall very happy with the progression of that team, of integrating the Qubit team into Coveo. Now the next item is the operating expenses, right? Here again, what you'll see is that over the last four quarters, where, you know, it, where we used to spend, you know, 100% of all of our operating expenses as a percentage of revenue a year ago, now we're down 9%. 900 basis points of efficiency that we've saved over the last four quarters. How were we able to do that? Came from sales and marketing. Sales and marketing, 8%. Of that 9%, it came 8% from sales and marketing as they were more efficient. Sheila showed you, right, how she's been able to go from, you know, in-person events to 100%, you know, of course, digital, and now she's able to optimize between those two. We used to be organized by territory. When we moved to COVID, we reorganized, specialized. That increased productivity. With all those measures, of course, we've had, you know, that's how we've been able to go from 53% of sales and marketing expenses as a percentage of revenue down to 45%. Amazing. When you look at R&D, it's remained constant. We believe that we're still in the very early, you know, applications. From our perspective, we don't, you know, we're not asking Laurent right now and R&D to make some important savings here. We want him to keep innovating at a fast clip. Certainly from a G&A perspective, you know, we did have to, you know, absorb a number of costs, you know, being a public company. Now it's all about leveraging systems, teams, as we grow, of course. We often get asked about unit economics. Let me start with, you know, talking a little bit about, you know, what the definitions of each of those two that we're gonna talk about. We're gonna talk about LTV to CAC, okay? CAC, of course, is customer acquisition cost. When we're gonna talk about customer acquisition cost, for us it's gonna be the entire sales and marketing organization, fully loaded, right? For the given period, we're gonna work with them where we will be measuring the, you know, ACV, the annualized contract value. It's gonna be how much did we invest in sales and marketing versus how many bookings in annual contract value did we generate during the given period? We'll look at that. The next one we'll talk about LTV, a key metric. Here again, to calculate LTV, customer lifetime value, we will look here at the average ACV when we land revenue per customer is $160,000 per year per customer, typically three years. When we land, of course, it's a GRR. What we do is that we just take that ACV, and we divide it by our GRR, which we saw is in the mid-90s%, right? That's how we calculate customer lifetime value, and then we'll calculate, you know, what's the metric of how much we invest in sales and marketing per customer and see versus the actual customer lifetime value. On the left-hand side here, CAC to ACV, as you see, as you've seen, we've been able to improve, as we've discussed. For us, it's all about, you know, we've talked about the sales and marketing efficiency, right? Where we went from, you know, where we've reduced as a percentage of revenue, sales, and marketing. It directly translated, of course, into improving our CAC to ACV. Where bookings kept growing at a very nice clip, did increase. We increased sales and marketing over 20%. But of course, bookings grew at a much faster rate than sales and marketing expenses, and that's how we were able to improve this key metric. With regards to LTV to CAC, it's even better. 40% increase over that period. Well, first of all, the average land. When we land a customer, the average ACV has grown tremendously over those six quarters. The GRR, our gross retention rate, also improved. Of course, when you talk about CAC, we've also been able to reduce our CAC, so we're spending less per customer, hence why we've. Because we've been able to improve on all those metrics, that's how this all translated into such an improvement over such a short period of time, a year and a half, basically. If I kinda bring it all together, it really comes to accelerating our path to profitability, right? About how we're improving our, you know, our product gross profit margin, you know, from 80% to 83%. We've talked about how we've been more disciplined from a sales over those four quarters, 49%-45%, as we've been more efficient. We've talked about certainly from an R&D perspective as well, being more focused, being more prioritized. Louis talked about the focus on certain key initiatives in commerce, in service. Of course, leveraging from a G&A perspective, now that it's been a year since we've been public, all those initial expenses, those initial investments are paying off. What does that translate into the adjusted operating loss as a percentage of revenue? You've seen here, you know, for last quarter at 17%, which was an amazing beat. We're extending it. We're extending it for next quarter as well. For the December quarter, midpoint of the guidance is at 20%. For us, for the fiscal year, that was $8.5 million, almost 900 basis points improvement with regards to adjusted operating loss. Again, we're adapting to the times, and while certainly from a top-line perspective, being able to deliver on, you know, strong growth, certainly being more efficient with it, and of course, extending that for the remainder of 2023. With that, I'd like to just conclude that for us, we believe that we're in the early innings of AI and ML. It will be a revolution. Hopefully, you've understood the innovation that we're pushing in the market right now. All those customers, certainly from all those global, you know, tech leaders all the way to very traditional, you know, industries are adopting it. You know, we have one platform, one single, you know, multi-tenant platform for all those customers, enabling, of course, fast upsells and cross-sells. We have a large TAM that Louis talked about. Initially, we started with intranets way back when Laurent founded the company. Doubled that with service, now doubled it again with commerce. We have a loyal customer base. We talked about the GRR and then the NER at 111%. Of course, you know, Louis talked about all those areas that we have for us to grow across. You know, we talked about the white space within our customer base, but as, you know, winning new customers with our partners and of course, on our own. Finally, an experience management team to keep delivering and executing on this plan. With that, I'd like. As well, the rest of the team. Mine's working. It is? Okay. Oh, yours is working? Okay. Here, maybe I'll steal somebody else's. Let's see. Does this? There we go. Okay. yeah, we'll start here. Thanks. Ittai Kidron from Oppenheimer, thanks for the day today. It was very informative and very impressive, I might say. Louis, I will say for how impressed I am with the vision and the product, I'm kind of scratching my head what's little left on top of it and saying, "How come you make so little economics from your customers?" For all the value that you bring to the table, my question is, why isn't the ticket bigger? Yeah. Maybe I should ask Darren, would you pay double the price? I'm asking seriously 'cause ROI is very clear. Time to value is very clear. Why can't customers pay more for this? That's question one. Question two, now that you have a much broader portfolio, and commerce has clearly been a very big game changer for you, what are the opportunities not to cross-sell, but to up-sell faster and bigger, rather than heel to toe type of progress, more like jumping up a hill kind of a movement? Yeah. Well, I mean, right at the core of our strategy. The answer to your first question is we're getting there. We work with large global organizations, and getting the data to close the loop and connect what we do, you start with a relevance platform. That's a little bit, you know. If you say in a bar on a Friday night that you're in the relevance platform business, you're not. That's not a very good conversation. You have to make it really, really tangible, with data and then close the loop. Basically, deploy, measure, connect that to the financial outcomes and then, you know, close that loop. You heard me early in the first presentation this morning. We're obviously amazed by some of the metrics that we see. Customers are billion-dollar, you know, multiple billion-dollar sales companies. You know, when you move these metrics by several percentage points and so on, the value of that software is significantly higher than what we get for. I think it's, you know, it leads to re-engineering the business model and engaging, taking on more risk and engaging on a performance basis with some of our customers, more like, you know, if I hand you 10 bucks of cash flow, maybe, and then guarantee the results and so on. We certainly have a team that's focused on that right now. It's easier said than done. You need to measure that and so on. We're definitely. I can confirm that we're definitely working along those lines, right now, and that, we know. It's not about abusing our customers or whatever. It is about getting into a real partnership. Today, we've been more, you know, because of the evolution of the company, we've been more a software supplier, so to speak, as opposed to a business partner, in many instances. To change that relationship to a more strategic relationship, kind of goes hand in hand with the evolution of the brand. You know, Coveo was a no-name company, you know, just a few years ago, and then suddenly, you know, we do some amazing things with some of the greatest brands in the world. That recognition allows us to get into the C-suite much more often and partner at that level and then talk to the CFO and then talk you know financial metrics and so on. That's the long answer to your first question, but definitely you're on the right track here. Performance Group now is able to really, to your point, bundle or position the Coveo platform. It's always been a platform. But when you start a software company, if you want to sell a platform, people won't quite see it unless you make. We designed Coveo as an AI platform. We made it a customer service intelligence solution and then a commerce intelligence solution and a workplace intelligence solution. It is really a platform to unify digital journeys and digital journey intelligence. Coveo is an enterprise-wide intelligence platform. We're making some good headway in traction there as well. Of course, that will lead to some much more bigger engagements, you know, with customers once they understand the true power of the platform, as opposed to being pigeonholed in a tactical use case, you know, in a silo within a large company. That's still interesting, but you know a year, and the platform is $5 million-$10 million a year. You know, that's really the difference. We're working definitely along those lines. Yeah, but I mean even, you know, within particular lines of business today where we have one use case and there might be two, three, four others that we can go within that particular LOB, we're in the very early innings of that opportunity and that's exactly why we have the platform team now that can go and hopefully attack that. Yeah, Richard. Sorry. Okay. Yeah. It's Richard Tse with National Bank Financial. You know, Louis Têtu, you talked about the Canadian Tire example, and I think we can all sort of appreciate that. What's holding them back from moving ahead? Is it sort of a technical thing like they're trying to understand the market? I guess a related question is that- Well, we didn't run a sale campaign yet with Canadian Tire specifically. Right. I'm just sort of talking more broadly. Yeah, more broadly. We're just giving multiple examples because we're all consumers and we all go to these sites and so on. Just to illustrate that these are big companies and that when we look at, given our knowledge and so on, you know, without any specific analysis as it relates to Canadian Tire in particular. For a company of that size, that is, you know, between $5 billion and $10 billion of revenue, you know, when we look at the digital experience and so on, we believe that, you know, the value of a technology like ours is in the hundreds of millions of dollars. And that's the scale that, you know, we operate at. When we look at their experience today relative to what a technology like ours could provide. I'm just giving that as an example. Retailers and providers of digital experiences. This is a new application of AI. I mentioned earlier this morning that if anything, we were early in our market. The machine learning is not new, but it was limited to the companies who had scientists and so on. I mentioned the Wayfair example, and it's public. Steve Conine, the CEO of Wayfair, went public a few years ago and said, "We're processing out the set of carpets that you will likely enjoy next better than anything that you could search." Now, in order to do that, they hired 2,200 developers and data scientists. 99% of companies cannot do that. We're in the early innings of that. Nevertheless, the imperative, as we heard from Daryl and, you know, the imperative of doing this is absolutely there because again, you know, goodwill is very volatile. No way. You know, and the ability of algorithms to maximize business outcomes is incredible in terms of value creation. You know. All of that, but there's an imperative that is driven by competitive pressures which is if you start losing, you know. Any business that's online, selling online goes away. See. And so, you know, that's where. And so there's more and more education, but we see. You know, we would have gone five years ago even to retailers and to distributors, you know, talking to them about an AI platform and the importance of personalization and the use of algorithms to optimize revenue and conversion and profits and, you know, everyone would look at us and say, "Hey, what are you talking about?" While today it's becoming, you know, mainstream, you know. We believe that we're right at the inflection point of that market. Tanos. Tanos. From BMO. Can you speak to the competitive dynamic? Typically in a sales process, is very often the decision the customer's making whether to go with a turnkey platform like yours versus hiring the hundreds of engineers, or is it more about, you know, other solutions that claim to be out of the box like yours more competitively? It's a bit of a spectrum. I would say that in large companies, it's increasingly easy to make the argument that going to scientists is probably not, you know, a good scenario that will, you know. It's certainly a very high, very risky and very expensive scenario. Same as Target, Walmart or something like that, and even there. That's number one. Number two is sometimes I would say in the sales cycle, we run what we call the art of the possible sessions with prospects because sometimes we need to educate prospects on what is even possible out of the box. A lot of them come to us and say, "Well, my problem is search. I just need to fix search." They don't understand, you know, what that means. I kind of explained this morning the search. If you put a search engine on a retail site, you're gonna drive margins to zero. I explained why this morning, 'cause search engine's gonna start learning what converts and what converts is popular product. We run a lot of sessions that are in the sales process. They're not long sessions. They can take 60 minutes or whatever to sort of educate. They're pretty amazed, and it kind of resets their perception of what can be done and how easy it is because deploying Coveo is a matter of weeks. It's the ratio between effort versus benefit is extremely low in terms of, or high depending on how you look at it, benefit versus effort. One of the technologies that brings you the most ROI relative to a very small effort, in fact, relative to the effort you're gonna put in. There's a lot of that. We get competitive pressure when the perception is that, you know, all you need is a search engine, and we get compared to other search products and et cetera. In 12 years building an AI platform, we have hundreds of millions of cumulative R&D. We've never done a one-off for customer. As Jean mentioned, it's one single multi-tenant. By the way, when you invest in SaaS computing, whether it's with Coveo or anybody else, that model is extremely critical. SaaS is just a delivery model. SaaS is about putting an app on the Internet and delivering it through the Internet and charging a subscription for it. That's SaaS, software as a service. We are a cloud-native multi-tenant platform. A quarter you said? Yeah, 1,500 times a quarter. A month. Several times a day to all of our customers simultaneously across the world. Robust, super secure because we only manage one. It means that from an innovation rate perspective, all of our R&D is focused on enhancing that platform. Take a piece of software, and the R&D team is busy dealing with customer 1, 2, 3, 4, 10, 20, 40, and ultimately, it doesn't scale. You know, our R&D team is larger than the vast majority of our competitors, you know, altogether, and they're working. The innovation rate, and then for those of you who've been following us for a while now, you see the speed of innovation that we're doing, and this is because of that architecture. Long story short on innovation and increasingly raising the distance, you know, between the competing search products, certainly the likes of Adobe and et cetera. They realize that the gap is only increasing. They don't have the teams internally to do what we do, so we're in a pretty good. It's hard to beat because of the cumulative innovation that is built in the product. I have a question for Laurent Simoneau, which is, if we were to look at a graph in terms of improvement, where you turn on Coveo, you get a very rapid increase in improvements. How does it work after a couple of months? Do you kind of hit sort of, you know, diminishing return, or does it always keep getting better and better? How does that trajectory look? Sure. Yeah, that's a great question. Typically, it's easier to measure your impact because the customer already has a lot of the instrumentation in place. We typically have a big impact in terms of revenue per visit, conversions, things of that nature. But then we will start working at ingesting more data. At one customer, we have a catalog coverage, meaning how many products are part of those product vectors that are mentioned. With a few optimization, we moved that to 85%. It has an impact on revenue per visit. We are adding new models, so that's a good example. With the ability to do A/B testing all the time, almost in real time, it allows to change or adapt their strategy given the circumstances. It's not done after the initial deployment. Look at Caleres. You know, one of the things that they've been able to do with some of our merchandising tools, they can test certain scenarios, and they've found a couple that have bumped their revenue per separate occasion. I mean, that's big time. It's one of those things where I think, you know, as Laurent said, you know, you get us up and running, especially in commerce, but then there are ways to optimize and find ways to, you know, generate more value. If I may, the next big frontier will be when they start sharing, and all of this data that I shared early in my presentation. When we start seeing that on a regular basis from customers, then we'll see. If I may add, Thanos, the literal answer to your question is, obviously, you get a quicker improvement at the beginning, and then, you know, you know you plateau. I don't, I wouldn't say you plateau. You can continue to optimize models and bring more models and et cetera. You become the engine. The stickiness is then the option on, upon renewal becomes, you know, "Hey, do you wanna disconnect basically the brain of your commerce?" This is not. You know, so you understand what I'm saying. It's a little bit like, you know, the mainframe in an insurance company that runs the, has been running the policy, you know, and the actuarial system for 40 years. You don't disconnect that easily, you know. It's in COBOL. That's another problem. You see what I mean is, to the extent that we tie value to the value we create, and then, you know, we can, we think we can maintain that revenue stream over time and continue to grow it. Just the demo on Merchandising Hub was really interesting because I think it shows that the retailers don't like to give up some rules and we like to try to manage some of the results. The question is around advertising, though. Advertising seems like it is an increasing trend within retail, particularly within. Site? And, and- Yeah. Conceptually, how do you see integrating advertising into search results? Yeah. Retail advertising for large brands is a big opportunity. In fact, let me give you a stat. Actually, Amazon's strategy right now is to run their retail operation breakeven, and they make money. They wanna kill their retail competitors, and they fuel that with retail advertising. The key challenge in a way that is not detrimental to the customer experience. Because fundamentally, you go to a site like Famous Footwear, you're looking for, I don't know, Nike shoes or whatever, you know, you don't necessarily want to see a lot of it. Really to sort of understand a degree of relevance, basically, of retail advertising and push that, but make sure that it's well under recommended products, promoted products, and then advertisement. We think we have the platform for that. This can become an opportunity for us, you know. Today, we're not in that space yet, but certainly, we have the platform to integrate. Thanks. This is David Weiss from Scotiabank. Just have a question on QLs, and you provided some interesting stats there, along with the efficiencies that you gained in the sales organization. In terms of the potential customer win rate, like in terms of the type of customer in terms of size or perhaps by vertical, a little bit. You said you win, but I'd like to get a little bit more detail if I could. Yeah. I mean, we don't disclose the percentage of the win rate and et cetera. We can say that once we engage our sales organization is substantially high. We want it to be, you know, continuously higher because at the end of the day, this is the yield of your sales expense. Say, you know, we're We wanna win. We wanna beat the benchmark of the industry at every single level, and we do. Yeah. I would just add, David, ours are really good. From an industry vertical standpoint, I mean, look, you know the five verticals that we focus on. Certainly, tech is our. I think also on the service side in general, our market position in service is very strong, and in particular in the Salesforce ecosystem, we're very solid. I guess, you know, targeting six-figure land-and-expand type of transactions, and again, I think, you know, we do very well in those situations. Where, you know, we might be a little bit overkill is when you're looking at, you know, like we talked about a Shopify account or something like that, where there's a very small number of SKUs, and it might be a, you know, four-figure type of transaction. That's not where we. Things like that. Okay. Great. That's great. Thanks. One more sort of question switching to just the margin side. In terms of personalization, could you provide some points on how you differentiate yourself in that aspect of the business? Just wondering if you actually leverage Coveo's AI yourself in customer feedback and satisfaction, but perhaps margin improvement as well. Yeah. We call ourselves customer zero. Coveo runs on Coveo, it's fair to say. We have, you know, our platform available in our customer communities, in our partner organization and elsewhere in the company. Yes, we do get a lot of feedback. We basically use the infrastructure that most of our customers use. Disconnected Coveo on one platform recently and as a temporary transition, and the employees are complaining. Yes, we use it extensively. Our leader in this space presented at the Technology & Services Industry Association, TSIA. We benchmark off his, but we've been at from that association multiple years, again, leveraging Coveo. Certainly, we do drink our own champagne, and it's paying off. The investments. Jean, this question's for you. In your presentation, you mentioned that the vast majority of your customers are on three-year contracts, so three years. For the customers that do churn or leave the platform after three years, what are the biggest reasons that they leave? Yeah. Really, typically it would be M&A. We so see some of our customers acquiring other of our. When they do, sometimes the company that does acquire our client does not run, for example, on Salesforce or on SAP on Suite. So of course there's two edges of a go-to-market motion. However, you know, when, of course, the acquirer does not run on that same platform, they want to re-platform, and it's a different platform that is not a close partner. Secure our position. So that's really been our most important reason for churn. Though, as I said, churn is, you know, we talked about, you know, mid-single digits. In those situations, M&A has been the big driver, the biggest driver. Yeah. I'd just add, you know, we often see situations in which, in some of those M&A situations, customers coming back to us 2, 3 years down the road saying, "Oh, wow, you know, I was promised that this native solution was gonna do this, and it." We see situations where customers go away, and then they come back at some point down the road. David Kwan at TD. Louis, I think at near the start. Sure. Is that maybe targeting some of these developers, your enterprise customers that maybe don't have a lot of budgets to work with, or is there something else? No. It's the developers to create centers of excellence within customers, we think is a best practice. What we're interested in is the power of our platform and machine learning with expertise to team up with, you know. Eventually, we're in a position where, you know. We're certainly building all the BI. You know, we have a pretty extensive Coveo, and we're building a BI right now that really is focused on the digital metrics, but the digital, but also triangulating that to financial returns. We're interested in teaming up. There are a certain number of customers that we're in discussion with as a business partner to help them to commit with them to certain improvements in terms of revenue increases, margin increases, and et cetera, and performance basis. They see the advantage of doing that. While it may cost them more money down the road, you know, they see the advantage in doing that and having the full force of the expertise combined with technology to really commit to those results. Essentially, you know, what we say internally at Coveo is when we get one, conceptually. Increasingly, there are companies willing to do that. There are also like Accenture, even McKinsey right now has a massive digital business that is, and their revenue is entirely performance. Gonna team up, you know, and let's look at your margins, let's look at your revenue, and we're gonna put the full force of our expertise to commit to results, and we're only gonna charge you when we achieve those results. Yeah. I appreciate that. We are with a fairly low level of risk. Obviously it could change for those deals the profile of the revenue recognition in doing that, you know, from a. Because if you're a software supplier, and I'll just finish on that. If you're perceived as a software supplier to a degree, you know, you work with a customer on a use case, you're procuring a software, a statement of work to deploy, which has a beginning and an end. They see that the project has a beginning date and an end date, and it's almost like afterwards it's customer support and et cetera. I would argue that the end of the deployment should be the beginning. I throw data scientists in there and et cetera, I can take their metrics through the roof. Customers don't see that because they tend to have a, well, no offense, they tend to see us as a supplier as opposed to someone who can double their margins. You know, this is certainly something that we tend to be a little more strategic, you know, and want us to do that for them because at the end of the day, this is what matters to them is growth for that. That was great. I appreciate it, Olivier. Maybe a couple of questions for Sheila. You know, obviously in-person events you talked about going more to that now with the pandemic, but they're more effective in generating MQLs, right? Can you maybe talk about the differences in the ROI, I guess between your in-person events and- That's a very good question. Actually, we don't separate both. They both work together. That's the most important thing about events is that events is not just about the event, not just about the booth that you have. The digital marketing to contact your prospect and have a discussion with them pre-event. During the event, how do you also interact with them with having meetings and organizing prospects that you met and the ones that didn't have the chance to be there so that you can provide the content that other people had during this event. We don't look at the event. It's important using digital to maximize it and to scale it. Others suggest the event itself as a really good ROI because the in-person is much better. It also propels and accelerates our digital marketing through events. It's a bundle together that we don't separate. I can tell you that since events are back, ROI is going like this. Great. Thanks. Other questions? For joining both in person and virtually, we'll look forward to pushing ahead here and executing, and hopefully we'll see everybody next year for Capital Markets Day number two.