04:54 PM EST, 02/10/2025 (MT Newswires) -- Coveo Solutions ( CVOSF ) after trade Monday said it swung to a fiscal third-quarter profit on strong revenues, but while it flagged a rise in new bookings over the fourth quarter it also warned of lower than forecast sales for the full year.

The artificial-intelligence company also announced changes to its senior executive team.

Coveo reported a profit of US$4.0 million in the quarter ended Dec.31, a swing from a loss of $6.2 million a year earlier.

Revenue was up 7% to $34.0 million from $31.8 million a year earlier, above the top end of guidance. FactSet forecast $33.9 million. It also had SaaS subscription revenue of $32.3 million, a lift of 8% compared to $29.9 million, at the top end of guidance.

Among other highlights, the company cited record new bookings in the quarter, with accelerating contribution from Commerce, and continued Generative AI momentum, with 36% growth in customers since Sept 30.

"Our third quarter performance underscores growing momentum across our business," said chief executive Louis Tetu. "Enterprises are increasingly recognizing that Search and AI-Relevance is critical to unlocking the business outcomes they are seeking in their AI projects in digital and generative experiences. We believed this year would see an inflection where enterprises moved from experimentation to adoption, and our third quarter is validation that we are tracking well on accelerating our revenue growth in the coming quarters."

In its financial outlook, Coveo said it continues to anticipate momentum in new bookings in the fourth quarter of the fiscal year. However it added it continues to assume the remaining revenue from the acquired Qubit Platform will continue to decline, as Coveo completes its integration of the platform and the intellectual property acquired with Qubit. Additionally, the company's outlook incorporates current foreign-exchange rates which lead to lower recognized amounts for non-US dollar denominated international revenue and expenses.

Taking these factors into consideration, Coveo anticipates fiscal fourth-quarter revenue of $34.1 million to $34.6 million and fiscal 2025 revenue of $133 million to $133.5 million. FactSet is forecasting fourth-quarter sales of $35.6 million and full-year sales of $134.3 million

The company continues to anticipate achieving positive cash flow from operations of near $10 million for Fiscal 2025.

Coveo also announced that in anticipation of its "continued growth, scale and strategic opportunities" it is making adjustments to the responsibilities of its senior executive team.

Effective with the company's new fiscal year on April 1, chief executive Louis Tetu will move to a full-time Executive Chair role where he will remain focused on Coveo's corporate development, strategy, key customers and growth opportunities globally. Laurent Simoneau, the company's founder, President and chief technology officer will as Coveo's chief executive.

Simoneau will receive the added operational support of John Grosshans, who will be promoted from his role as Chief Revenue Officer to become the company's Chief Operating Officer, overseeing all revenue, customer and partner operations for the business. Marc Sanfacon, a company co-founder and current senior vice president, Technology, will be promoted to the role of Chief Technology Officer.

The company's shares closed up $0.13, or 2.2%, to $6.09 on the Toronto Stock Exchange.