Machine learning and artificial intelligence are hot in the tech world today, and for good reason. These tools can help businesses deliver customized offerings to customers, provide insights, and enhance their online experience, all while virtually automated.
Coveo is at the forefront of this movement and is using machine learning and AI to bring intelligent search, insight engines, and data-driven recommendations to businesses around the world. Their software is helping leading retailers and global brands drive growth, raise revenue per visitor and increase customer lifetime value.
How much is Coveo doing in ARR?
Coveo is a pure-play B2B SaaS vendor that charges its customers on an annual, subscription basis. Average contract values range from as low as $50k per year to several million dollars annually. According to CEO Louis Tetu, the average customer joining Coveo today pays them approximately $200k in year one.
With 1k total paying customers today, Coveo is on track to cross $100M and “much more” imminently, according to Tetu. The company is growing 50% year over year right now and attributes their healthy growth to their land and expand model.
What is Coveo’s churn?
Coveo has maintained impressive retention thus far and is currently churning less than 5% of their revenue, on a gross basis annually. The company takes pride in their ability to drive expansion revenue and is exhibiting 124% net revenue retention annually and 158% net revenue retention after 24 months.
In terms of customer acquisition, Tetu noted that the company spends between $1.20 and $1.70 in dollar based CAC. Coveo is also conservatively models lifetime value over 5 years.
How much has Coveo raised?
Launched over ten years ago, Coveo has raised $150M in total outside capital. Most recently, the company raised $125M in early 2018 from Evergreen Coast Capital in order to help accelerate growth.
Coveo’s team of over 300 employees is headquartered in Quebec City and has four offices around the world.