Docebo Inc. (NASDAQ: DCBO; TSX:DCBO) (“Docebo” or the “Company”), a leading learning platform provider with a foundation in artificial intelligence (AI) and innovation, announced financial res...
TORONTO: Docebo Inc. (NASDAQ: DCBO; TSX:DCBO) (“Docebo” or the “Company”), a leading learning platform provider with a foundation in artificial intelligence (AI) and innovation, announced financial results for the three and nine months ended September 30, 2023. All amounts are expressed in US dollars unless otherwise stated.
"Consistent execution and operating discipline allowed us to surpass the upper limit of our revenue and profitability guidance for the quarter. The horizontal reach of our platform created momentum in all customer segments," said Claudio Erba, Founder and Chief Executive Officer. “Docebo continues to excel in delivering innovation. Over the past nine months, we introduced an impressive range of nearly 90 new features and capabilities, which were proudly showcased at Docebo Inspire in September. This innovation has not only led to measurable success for our customers, but also significantly contributed to long-term sustainable and profitable growth for our shareholders.”
Third Quarter 2023 Financial Highlights
Third Quarter 2023 Business Highlights
1 Please refer to “Non-IFRS Measures and Reconciliation of Non-IFRS Measures” section of this press release. |
Third Quarter 2023 Results
Selected Financial Measures | ||||||||||||||||||||||||
| Three months ended September 30, |
| Nine months ended September 30, | |||||||||||||||||||||
| 2023 | 2022 | Change | Change |
| 2023 | 2022 | Change | Change | |||||||||||||||
$ | $ | $ | % |
| $ | $ | $ | % | ||||||||||||||||
Subscription Revenue | 43,588 |
| 34,279 |
| 9,309 |
| 27.2 | % |
| 123,278 |
| 95,323 |
| 27,955 |
| 29.3 | % | |||||||
Professional Services | 2,918 |
| 2,687 |
| 231 |
| 8.6 | % |
| 8,281 |
| 8,634 |
| (353 | ) | (4.1 | )% | |||||||
Total Revenue | 46,506 |
| 36,966 |
| 9,540 |
| 25.8 | % |
| 131,559 |
| 103,957 |
| 27,602 |
| 26.6 | % | |||||||
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Gross Profit Margin | 37,727 |
| 29,826 |
| 7,901 |
| 26.5 | % |
| 106,316 |
| 83,286 |
| 23,030 |
| 27.7 | % | |||||||
Percentage of Total Revenue | 81.1 | % | 80.7 | % |
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| 80.8 | % | 80.1 | % |
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Net (Loss) Income | 4,047 |
| 10,274 |
| (6,227 | ) | (60.6 | )% |
| (382 | ) | 5,418 |
| (5,800 | ) | (107.1 | )% | |||||||
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Cash Provided by Operating Activities | 6,215 |
| 975 |
| 5,240 |
| 537.4 | % |
| 9,488 |
| 95 |
| 9,393 |
| 9,887.4 | % |
Key Performance Indicators and Non-IFRS Measures | |||||||||
| As at September 30, | ||||||||
| 2023 | 2022 | Change | Change % | |||||
Annual Recurring Revenue (in millions of US dollars) | 181.8 | 144.6 | 37.2 | 25.7 | % | ||||
Average Contract Value (in thousands of US dollars) | 49.4 | 44.6 | 4.8 | 10.8 | % | ||||
Customers | 3,679 | 3,245 | 434 | 13.4 | % |
| Three months ended September 30, |
| Nine months ended September 30, | ||||||||||||||||||
| 2023 | 2022 | Change | Change |
| 2023 | 2022 | Change | Change | ||||||||||||
$ | $ | $ | % |
| $ | $ | $ | % | |||||||||||||
Adjusted EBITDA | 4,512 | 630 | 3,882 |
| 616.2 | % |
| 9,777 | (971 | ) | 10,748 |
| 1,106.9 | % | |||||||
Adjusted Net Income (Loss) | 4,952 | 1,472 | 3,480 |
| 236.4 | % |
| 12,856 | (1,094 | ) | 13,950 |
| 1,275.1 | % | |||||||
Adjusted Net Income (Loss) per Share - Basic | 0.15 | 0.04 | 0.11 |
| 275.0 | % |
| 0.39 | (0.03 | ) | 0.42 |
| 1400.0 | % | |||||||
Adjusted Net Income (Loss) per Share - Diluted | 0.15 | 0.04 | 0.11 |
| 275.0 | % |
| 0.39 | (0.03 | ) | 0.42 |
| 1400.0 | % | |||||||
Working Capital | 110,938 | 177,258 | (66,320 | ) | (37.4 | )% |
| 110,938 | 177,258 |
| (66,320 | ) | (37.4 | )% | |||||||
Free Cash Flow | 8,353 | 624 | 7,729 |
| 1,238.6 | % |
| 13,113 | (542 | ) | 13,655 |
| 2,519.4 | % |
Financial Outlook
Docebo is providing financial guidance for the three months ended December 31, 2023 as follows:
The information in this section is forward-looking. Please see the sections entitled “Non-IFRS Measures and Reconciliation of Non-IFRS Measures” and “Key Performance Indicators” in this press release for how we define “Adjusted EBITDA” and the section entitled “Forward-Looking Information.” A reconciliation of forward-looking “Adjusted EBITDA” to the most directly comparable IFRS measure is not available without unreasonable effort, as certain items cannot be reasonably predicted because of their high variability, complexity and low visibility. Docebo believes that this type of guidance provides useful insight into the anticipated performance of its business.
Conference Call
Management will host a conference call on Thursday, November 9, 2023 at 8:00 am ET to discuss these third quarter results. To access the conference call, please dial 416-764-8624 or 1-888-259-6580 or access the webcast at https://docebo.inc/events-and-presentations/default.aspx. The unaudited condensed consolidated interim financial statements for the nine months ended September 30, 2023 and Management’s Discussion & Analysis for the same period have been filed on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. Alternatively, these documents along with a presentation in connection with the conference call can be accessed online at https://investors.docebo.com.
An archived recording of the conference call will be available until November 16, 2023 and for 90 days on our website. To listen to the recording, please visit the webcast link which can be found on Docebo’s investor relations website at https://docebo.inc/events-and-presentations/default.aspx or call 416-764-8692 or 1-877-674-7070 and enter passcode 944945#.
Forward-Looking Information
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information may relate to our future financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, macroeconomic conditions and global economic uncertainty, the war in Ukraine and inflation, including actions of Central banks to contain it, on our business, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information.
In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects”, “is expected”, “an opportunity exists”, “budget”, “scheduled”, “estimates”, “outlook”, “forecasts”, “projection”, “prospects”, “strategy”, “intends”, “anticipates”, “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or, “will”, “occur” or “be achieved”, and similar words or the negative of these terms and similar terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances.
This forward-looking information includes, but is not limited to, statements regarding the Company’s business; the guidance for the three months ended December 31, 2023 in respect of total revenue, gross profit margin and Adjusted EBITDA as a percentage of total revenue discussed under “Financial Outlook” in this press release; future financial position and business strategy; the learning management industry; our growth rates and growth strategies; addressable markets for our solutions; the achievement of advances in and expansion of our platform; expectations regarding our revenue and the revenue generation potential of our platform and other products; our business plans and strategies; and our competitive position in our industry. This forward-looking information is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Certain assumptions include: our ability to build our market share and enter new markets and industry verticals; our ability to attract and retain key personnel; our ability to maintain and expand geographic scope; our ability to execute on our expansion plans; our ability to continue investing in infrastructure to support our growth; our ability to obtain and maintain existing financing on acceptable terms; our ability to execute on profitability initiatives; currency exchange and interest rates; the impact of inflation and global macroeconomic conditions; the impact of competition; our ability to respond to the changes and trends in our industry or the global economy; and the changes in laws, rules, regulations, and global standards are material factors made in preparing forward-looking information and management’s expectations.
Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that, while considered by the Company to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to:
Our guidance for the three months ended December 31, 2023 in respect of total revenue, gross profit margin, and Adjusted EBITDA as a percentage of total revenue is subject to certain assumptions and associated risks as stated under “Forward-Looking Statements,” and in particular the following:
If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The opinions, estimates or assumptions referred to above and described in greater detail in the “Summary of Factors Affecting our Performance” section of our MD&A for the three and nine months ended September 30, 2023 and in the “Risk Factors” section of our AIF, should be considered carefully by prospective investors.
Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information.
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