Kim Bolton Coveo Solutions Inc. CVO-T DON'T BUY Jun 19, 2024

EPS of ($0.095) beat estimates of ($0.133) and revenues of $39.37M beat estimates of $39.106M. CVO saw SaaS subscription revenue growth of 17% and announced a share buyback program of $40M, close to 5% of its total outstanding shares. The company expanded its gross profit margins and improved its operating loss from a prior year loss of $19.4M to a loss of $8.8M. CVO expects to reach positive operating cash flow by FY2025. Sales growth has been good, and management has done an excellent job of expanding its margins and controlling costs. Its balance sheet is fairly healthy and if it can maintain its sales growth rates and achieve profitability, we feel that this name has good long-term potential. The trend has been positive, but we would also like to see a continuation in its progression toward positive free cash flow. 
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An AI play with a search engine that understands the human language. The valuation is always high. Supposedly, they're close to break even. Could be an acquisition target down the road. Wait for a better entry point. If they turn a profit, shares will do well.

Good job overall, well run. Exposed to some of the AI trends. Sizable competition for what they do. He's conservative on whether it can differentiate itself in the coming years. Must show it can get the big, multi-year contracts.