Coveo Q2 SaaS revenue rises 9% in record bookings quarter; buys Anglera

Coveo (TSX: CVO) reported SaaS subscription revenue of $39.1 million for the second quarter of fiscal 2027, which ended September 30, up 9% from a year earlier, and said it was the strongest new business bookings quarter in its history. The same day, October 29, it acquired Anglera, a San Francisco company backed by Y Combinator whose software fills in missing product data for manufacturers, distributors and retailers. Terms were not disclosed.

The bookings record has not reached the revenue line yet. Growth on Coveo's core platform slowed to 12%, the fourth quarter in a row it has eased, according to a SaasBuzz review of six quarterly releases. At its midpoint, Coveo's updated outlook implies growth of about 13% in the fiscal fourth quarter, by SaasBuzz's calculation.

Above the top of its own forecast

Coveo reports in US dollars under IFRS. Every measure it forecasts came in above the top of the range it gave on July 30. SaaS subscription revenue beat the $38.5 million to $39 million range by $0.1 million. Total revenue rose 8% to $40.4 million, against $39.7 million to $40.2 million guided. Adjusted EBITDA, a non-IFRS measure, was $2 million, against $0.5 million to $1.5 million.

The IFRS operating loss narrowed to $3 million from $6.7 million, and the net loss to $3.1 million, or 3 cents a share, from $4.4 million. Gross margin was 80%. Operating cash flow was negative $14.9 million, which the company put down to the seasonality of working capital, and cash fell to $82.7 million from $107.1 million at June 30. In the quarter Coveo also bought back about 2.6 million shares from an affiliate of the Qatar Investment Authority for about C$9.6 million ($6.9 million), taking that investor out of its stock entirely.

Coveo gave no bookings figure. It said two contracts worth seven figures a year closed in the quarter, one with a Fortune Global 500 technology company and one with Coles Supermarkets, and that generative AI products made up more than 50% of new business bookings. The net expansion rate, which measures how much existing customers' annual contract value grew over 12 months, rose 3 points to 102%, or 105% excluding customers lost from Coveo's retired Qubit platform.

Two seven-figure per year transactions helped us achieve the strongest new business bookings quarter in our history.Laurent Simoneau, co-founder and CEO of Coveo, in the results release, October 29, 2026

The number under the record bookings

Coveo now reports two growth rates. The headline one counts Qubit, a legacy platform that is fully deprecated, so it is held down by year-earlier quarters that still had Qubit revenue ($0.9 million in the second quarter of fiscal 2026). The core platform rate leaves Qubit out. It has slowed for four straight quarters, while the headline rate fell from 15% to 9%.

Source: Coveo's quarterly results releases; SaaS subscription revenue and growth from a year earlier. Coveo's fiscal year ends March 31.

The outlook moved in two directions. Coveo raised the bottom of its full-year SaaS subscription revenue range by $2 million, to $156 million to $158 million, and cut the top of its total revenue range by $2 million, to $160 million to $162 million. At the midpoints that is $1 million more subscription revenue and $1 million less in total, which leaves about $2 million less for professional services than the ranges it gave in May and repeated in July.

Third-quarter guidance of $39.7 million to $40.2 million in SaaS subscription revenue is growth of 8.5% to 9.8%. Take the first half's $76.5 million and that guidance out of the full-year range, and the fourth quarter is left with about $40.6 million at the midpoints, 13% above the $35.9 million of a year earlier. That earlier quarter is the first with no Qubit revenue in it, so from the fourth quarter on the two growth rates become one. At its midpoint, Coveo's forecast therefore asks for core growth to turn up by the fourth quarter, to about 13% from 12% now.

Why a search company is buying product data

Coveo sells search and product discovery to online stores. Its software can only match a shopper, or a shopper's AI assistant, to what a catalog says about a product. Anglera works on that input: Coveo says its AI agents pull product details from manufacturers' specifications, PDFs and images to fill gaps in catalogs that can have hundreds of technical attributes per product. Coveo's own account made the case in a post on X as the deal was announced.

"Anglera enriches data at the source, and Coveo connects it to what buyers are looking for," Simoneau said in the deal announcement. He told The Globe and Mail that "if you have the wrong data, you're not going to serve those agentic commerce experiences," and that the product "is ready to be sold today to select customers."

The deal is small. Anglera was founded in 2024 by Ray Iyer and Amay Aggarwal, former product managers at Uber, and has five employees joining Coveo's roughly 800, The Globe and Mail reported. It is Coveo's first acquisition since it bought Qubit in 2021, the paper said, and Coveo's outlook does not include acquisitions. The evidence for the product so far is Anglera's own: a 30-day test at an apparel retailer, on about 300 product variants, in which pages with enriched data drew 270% more visits referred by AI tools than a control group. Coveo's announcement notes that results may vary.

What to watch

The third-quarter report will show whether SaaS subscription revenue comes in within the $39.7 million to $40.2 million range, and whether the net expansion rate keeps rising after its 3-point jump. Coveo is also looking for a new chief marketing officer: it said Pranshu Tewari is leaving the role. The shares were down 27.3% for the year at the close before the results, The Globe and Mail reported.