Docebo Reports First Quarter 2021 Results
Revenue growth of 61% and Annual Recurring Revenue (“ARR”) growth of 60% driven by strong new logo performance and customer expansions.
Docebo Inc. (NASDAQ: DCBO; TSX:DCBO) (“Docebo” or the “Company”), a leading artificial intelligence (AI)-powered learning suite, today announced financial results for the three months ended March 31, 2021. All amounts are expressed in US dollars unless otherwise stated.
“As enterprises develop learning programs to train internal employees, partners and customers today, and in a post-pandemic world, digital learning remains at the center of their long-term strategy. We are seeing this unfold through the actions of our customers and the strength of our pipeline,” said Claudio Erba CEO and Founder of Docebo. "Our first quarter was particularly rewarding as growth in both revenue and ARR growth eclipsed 60% for the first time in our life as a public company driven by record customer expansion activity and continued strength in new logo activity and OEM sales.”
Added Mr. Erba, “I am particularly excited about the initiatives underway in 2021 that set Docebo's foundation for the future. The launch of the Docebo Learning Suite to address challenges across the entire learning lifecycle, the addition of three new OEM agreements subsequent to quarter end and the ongoing investments we are making in our sales and marketing organization are all levers we have to drive strong returns on our capital and continued business momentum."
First Quarter 2021 Financial Highlights
- Revenue of $21.7 million, an increase of 61% from the comparative period in the prior year
- Subscription revenue of $19.8 million, representing 91% of total revenue, and an increase of 62% from the comparative period in the prior year
- Gross profit of $17.9 million, or 82% of revenue, a 300 bps improvement from the comparative period in the prior year
- Net loss of $5.6 million, or $0.17 per share, compared to net income of $0.7 million, or $0.03 per share ($0.03 per diluted share), for the comparative period in the prior year
- Annual Recurring Revenue1, 2 as at March 31, 2021 of $83.4 million, an increase of $31.3 million from $52.1 million at the end of the first quarter of 2020, or an increase of 60%
- Negative Adjusted EBITDA2 of $2.5 million, or 11% of revenue, compared to negative $2.4 million or 18% of revenue, for the comparative period in the prior year
- Negative cash flow generated from operating activities of $2.2 million, compared to negative $2.5 million for the comparative period in the prior year
- Negative free cash flow2 of $2.4 million compared to negative $2.7 million for the comparative period in the prior year
- Cash and cash equivalents of $217.4 million as at March 31, 2021 compared to $219.7 million as at December 31, 2020
First Quarter 2021 Business Highlights
- Docebo is now used by 2,333 customers, an increase from 1,831 customers at the end of March 31, 2020
- Strong growth in average contract value, calculated as total Annual Recurring Revenue divided by the number of active customers, increasing from $28,454 to $35,739
- Signed a new customer agreement with Lightspeed POS to launch a multi-audience learning use case that includes their internal employees as well as customers
- Signed new customer agreements in the sports vertical with First Tee and Spurs Sports and Entertainment in the first quarter of 2021, and the Toronto Blue Jays in the fourth quarter of 2020, providing easy access to team branded learnings, tools and resources
- Signed a customer expansion agreement with ClearCorrect, a Straumann Group brand and customer since 2017 that has grown its program and shown a significant increase in learner engagement, leading to the expansion of the platform to other countries like Brazil in the first quarter
- Launched the Docebo Learning Suite including Docebo Learn LMS, Docebo Shape, Docebo Content, and Docebo Learning Impact, providing a comprehensive learning technology platform that extends beyond content delivery to address challenges across the entire learning lifecycle
- Docebo Learning Suite coincided with the launch of Docebo Shape, a content creation product built on AI
- Joined the Amazon Web Services (AWS) ISV Partner Path, broadening our market reach by tapping into a number of tailored programs to access AWS’ resources and partner network
- Subsequent to quarter end added a new OEM partnership agreement with Vartopia, a partnership agreement Vinsys, and expanded partnerships with Bluewater and MHR.