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Oct 2, 2018 · 22m · top-founders

1165 Coveo CEO: "We'll pass $100m ARR imminently" on $150m raised for AI powered search

Louis Têtu · 13m spoken Nathan Latka · 6m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

Nathan Latka interviews Coveo CEO Louis Têtu to examine how the enterprise AI search engine scales toward $100 million in ARR with 50% organic growth, sub-5% churn, and a 158% two-year net revenue retention rate.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 34.1% of the talking time here. How this is scored →

Nathan as informed peer 6.0 Guest teaching 3.2 Guest disagreement 3.0 Nathan pushing back 5.6
05100:0010:0020:001:30–5:02 · Nathan as informed peer 6/10 Introducing Louis Têtu and Coveo's Product Model Latka explores Coveo's SaaS business model, pricing metrics, and customer numbers. He immediately calculates that 1,000 customers at $200k ACV would imply $200M in revenue, setting up the central tension.5:02–9:53 · Nathan as informed peer 7/10 ARR Projections, Growth Rates, and Capital Raised Latka repeatedly challenges Têtu to verify Coveo's revenue based on his own customer and ACV figures. Têtu refuses to disclose private numbers due to investors, explaining that $200k is a recent sales average rather than historical blended ARR.9:56–14:05 · Nathan as informed peer 6/10 Sponsor Spotlight: Freshchat by Freshworks Following an ad read, Latka confronts Têtu directly, stating he is frustrated because the math on a 50% growth rate and imminent $100M ARR points to $70M ARR the prior year. Têtu relents slightly, admitting Latka is in the ballpark.14:06–18:33 · Nathan as informed peer 7/10 Cohort Retention Modeling and Actuarial SaaS Metrics Latka questions why Têtu reports retention over a 24-month window rather than standard annual net revenue retention. Têtu delivers a detailed masterclass on actuarial SaaS modeling, cohort economics, and net present value discount curves.18:34–21:02 · Nathan as informed peer 4/10 Customer Acquisition Cost and The Famous Five Latka rapidly gathers CAC figures before heading into the Famous Five rapid-fire questions. Têtu resists naming a single CEO to study, prompting Latka to press him before moving on.1:30–5:02 · Guest teaching 2/10 Introducing Louis Têtu and Coveo's Product Model Latka explores Coveo's SaaS business model, pricing metrics, and customer numbers. He immediately calculates that 1,000 customers at $200k ACV would imply $200M in revenue, setting up the central tension.5:02–9:53 · Guest teaching 3/10 ARR Projections, Growth Rates, and Capital Raised Latka repeatedly challenges Têtu to verify Coveo's revenue based on his own customer and ACV figures. Têtu refuses to disclose private numbers due to investors, explaining that $200k is a recent sales average rather than historical blended ARR.9:56–14:05 · Guest teaching 2/10 Sponsor Spotlight: Freshchat by Freshworks Following an ad read, Latka confronts Têtu directly, stating he is frustrated because the math on a 50% growth rate and imminent $100M ARR points to $70M ARR the prior year. Têtu relents slightly, admitting Latka is in the ballpark.14:06–18:33 · Guest teaching 8/10 Cohort Retention Modeling and Actuarial SaaS Metrics Latka questions why Têtu reports retention over a 24-month window rather than standard annual net revenue retention. Têtu delivers a detailed masterclass on actuarial SaaS modeling, cohort economics, and net present value discount curves.18:34–21:02 · Guest teaching 1/10 Customer Acquisition Cost and The Famous Five Latka rapidly gathers CAC figures before heading into the Famous Five rapid-fire questions. Têtu resists naming a single CEO to study, prompting Latka to press him before moving on.1:30–5:02 · Guest disagreement 1/10 Introducing Louis Têtu and Coveo's Product Model Latka explores Coveo's SaaS business model, pricing metrics, and customer numbers. He immediately calculates that 1,000 customers at $200k ACV would imply $200M in revenue, setting up the central tension.5:02–9:53 · Guest disagreement 4/10 ARR Projections, Growth Rates, and Capital Raised Latka repeatedly challenges Têtu to verify Coveo's revenue based on his own customer and ACV figures. Têtu refuses to disclose private numbers due to investors, explaining that $200k is a recent sales average rather than historical blended ARR.9:56–14:05 · Guest disagreement 4/10 Sponsor Spotlight: Freshchat by Freshworks Following an ad read, Latka confronts Têtu directly, stating he is frustrated because the math on a 50% growth rate and imminent $100M ARR points to $70M ARR the prior year. Têtu relents slightly, admitting Latka is in the ballpark.14:06–18:33 · Guest disagreement 3/10 Cohort Retention Modeling and Actuarial SaaS Metrics Latka questions why Têtu reports retention over a 24-month window rather than standard annual net revenue retention. Têtu delivers a detailed masterclass on actuarial SaaS modeling, cohort economics, and net present value discount curves.18:34–21:02 · Guest disagreement 3/10 Customer Acquisition Cost and The Famous Five Latka rapidly gathers CAC figures before heading into the Famous Five rapid-fire questions. Têtu resists naming a single CEO to study, prompting Latka to press him before moving on.1:30–5:02 · Nathan pushing back 4/10 Introducing Louis Têtu and Coveo's Product Model Latka explores Coveo's SaaS business model, pricing metrics, and customer numbers. He immediately calculates that 1,000 customers at $200k ACV would imply $200M in revenue, setting up the central tension.5:02–9:53 · Nathan pushing back 7/10 ARR Projections, Growth Rates, and Capital Raised Latka repeatedly challenges Têtu to verify Coveo's revenue based on his own customer and ACV figures. Têtu refuses to disclose private numbers due to investors, explaining that $200k is a recent sales average rather than historical blended ARR.9:56–14:05 · Nathan pushing back 8/10 Sponsor Spotlight: Freshchat by Freshworks Following an ad read, Latka confronts Têtu directly, stating he is frustrated because the math on a 50% growth rate and imminent $100M ARR points to $70M ARR the prior year. Têtu relents slightly, admitting Latka is in the ballpark.14:06–18:33 · Nathan pushing back 5/10 Cohort Retention Modeling and Actuarial SaaS Metrics Latka questions why Têtu reports retention over a 24-month window rather than standard annual net revenue retention. Têtu delivers a detailed masterclass on actuarial SaaS modeling, cohort economics, and net present value discount curves.18:34–21:02 · Nathan pushing back 4/10 Customer Acquisition Cost and The Famous Five Latka rapidly gathers CAC figures before heading into the Famous Five rapid-fire questions. Têtu resists naming a single CEO to study, prompting Latka to press him before moving on.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 66.1% · guest 33.9%0:00 · Nathan 66.1% · guest 33.9%3:00 · Nathan 19.3% · guest 80.7%3:00 · Nathan 19.3% · guest 80.7%6:00 · Nathan 13.9% · guest 86.1%6:00 · Nathan 13.9% · guest 86.1%9:00 · Nathan 68.4% · guest 31.6%9:00 · Nathan 68.4% · guest 31.6%12:00 · Nathan 18% · guest 82%12:00 · Nathan 18% · guest 82%15:00 · Nathan 18.3% · guest 81.7%15:00 · Nathan 18.3% · guest 81.7%18:00 · Nathan 19.1% · guest 80.9%18:00 · Nathan 19.1% · guest 80.9%21:00 · Nathan 91.3% · guest 8.7%21:00 · Nathan 91.3% · guest 8.7%
Sharpest disagreement ▶ 11:21 Têtu stone-walls revenue deduction

Têtu firmly shuts down Latka's deduction of historical ARR by citing investor confidentiality obligations.

 Hardest push from Nathan ▶ 11:49 Latka calls out guest's contradictory evasiveness

Latka directly expresses his frustration, refusing to drop the line of inquiry and demanding to know why his math based on Têtu's own stated numbers would be wrong.

 Biggest teaching moment ▶ 17:19 Actuarial valuation and IRR discount rates

Têtu counters Latka's objection to multi-year cohort modeling with an expert breakdown of 15-20% IRR discount curves and net present value plateaus.

 Nathan holds their own ▶ 5:39 Latka catches conflicting ARR implications

Latka leverages Têtu's disclosed 1,000 customers and $200k ACV to immediately expose that the literal math implies $200M revenue.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Louis Têtu and Coveo's Product Model 6214 Latka explores Coveo's SaaS business model, pricing metrics, and customer numbers. He immediately calculates that 1,000 customers at $200k ACV would imply $200M in revenue, setting up the central tension.
ARR Projections, Growth Rates, and Capital Raised 7347 Latka repeatedly challenges Têtu to verify Coveo's revenue based on his own customer and ACV figures. Têtu refuses to disclose private numbers due to investors, explaining that $200k is a recent sales average rather than historical blended ARR.
Sponsor Spotlight: Freshchat by Freshworks 6248 Following an ad read, Latka confronts Têtu directly, stating he is frustrated because the math on a 50% growth rate and imminent $100M ARR points to $70M ARR the prior year. Têtu relents slightly, admitting Latka is in the ballpark.
Cohort Retention Modeling and Actuarial SaaS Metrics 7835 Latka questions why Têtu reports retention over a 24-month window rather than standard annual net revenue retention. Têtu delivers a detailed masterclass on actuarial SaaS modeling, cohort economics, and net present value discount curves.
Customer Acquisition Cost and The Famous Five 4134 Latka rapidly gathers CAC figures before heading into the Famous Five rapid-fire questions. Têtu resists naming a single CEO to study, prompting Latka to press him before moving on.

Statements from this episode (12)

Assertion Not checkable as stated
Têtu: Coveo average contract value is around $200k ARR
“More around 200,000 ACV annual recurring revenue for the software.”
Louis Têtu Oct 2, 2018 ▶ 3:02
Assertion Not checkable as stated
Têtu: Coveo has slightly over 1,000 customer installations
“We have about a thousand installations, a little more than a thousand actually mostly in the high tech sector, financial services, and manufacturing.”
Louis Têtu Oct 2, 2018 ▶ 4:11
Assertion Partly supported
Têtu: Coveo recently raised $125M from a Palo Alto investor
“We recently raised an additional one hundred and twenty five million from a large Palo Alto investor.”
Louis Têtu Oct 2, 2018 ▶ 5:07
Prediction Held up
Têtu: Coveo will pass $100M ARR very imminently
“We'll cross this and much more very imminently.”
Louis Têtu Oct 2, 2018 ▶ 8:10
Assertion Supported
Têtu: Coveo powers Salesforce AppExchange and embeds in Adobe Photoshop
“We power the AppExchange you know, at Salesforce, and you know we're embedded within Adobe Photoshop, and you know, we power a lot of the self-service sites of a lot of the software companies.”
Louis Têtu Oct 2, 2018 ▶ 9:05
Assertion Supported
Têtu: Coveo has raised over $150M in total capital
“We've raised a little in excess of a hundred and fifty million to date.”
Louis Têtu Oct 2, 2018 ▶ 9:39
Assertion Not checkable as stated
Têtu: Coveo maintains under 5% annual revenue churn across business lines
“We're at about I would say less than five percent depending on the lines of business. We have lines of business that are at about 2.2%. We have lines of business that are around five.”
Louis Têtu Oct 2, 2018 ▶ 13:19
Assertion Not checkable as stated
Têtu: Coveo averaged 158% 24-month net revenue retention over six years
“And net, net overall this is a number we've published, because that's the actual measurement we're at about, net of that churn, we're at about 158% over 24 a month on average for the past six years.”
Louis Têtu Oct 2, 2018 ▶ 13:50
Assertion Partly supported
Coveo's founding team previously built Taleo, selling to Oracle for $2B
“The whole team here at Coveo, we built Taleo, which was bought by Oracle for about two billion. And we were a large SaaS player with about three hundred million of recurring revenue.”
Louis Têtu Oct 2, 2018 ▶ 15:27
Assertion Not checkable as stated
Têtu: Coveo's annual net revenue retention rate is approximately 124%
“On a one-year basis, it's about 24% net of return.”
Louis Têtu Oct 2, 2018 ▶ 16:21
Insight
Têtu: SaaS LTV modeling beyond five years hits a mathematical plateau
“When you do what's called an NPV, a net present value, if you type that in with that type of IRR, what you'll realize is that looking way, looking beyond five, six, seven, actually beyond eight years out, it's plateau. It's a plateau basically, because if you …”
Louis Têtu Oct 2, 2018 ▶ 17:41
Assertion Not checkable as stated
Têtu: Coveo spends $1.20 to $1.70 per dollar of ACV
“We spend depending on our lines of business, we spend between a dollar 20 to a dollar 70 to acquire a dollar of a CV.”
Louis Têtu Oct 2, 2018 ▶ 18:39
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