Docebo Inc. (NASDAQ: DCBO; TSX:DCBO), a leading artificial intelligence (AI)-powered learning suite, today announced financial results for the three and six months ended June 30, 2022. All amounts are expressed in US dollars unless otherwise stated.
“Our consistent execution enabled us to deliver strong ARR and revenue growth with positive free cash flow in the face of a macro-economic environment that saw enterprise sales cycles stretch as the June quarter came to a close,” said Claudio Erba, CEO and Founder of Docebo.
“As organizations prioritize learning and training in this economic environment, Docebo is ideally positioned to help consolidate their tech stack by delivering external and internal learning at scale in a federated environment. With our long-term secular growth drivers intact, we believe our investments will continue to drive the success of our balanced growth strategy.”
Second Quarter 2022 Financial Highlights
- Revenue of $34.9 million, an increase of 36% from the comparative period in the prior year
- Revenue increased by 47% excluding a one-time cumulative catch up in the second quarter of 2021 of $1.1 million relating to a customer contract that previously did not meet all requirements for revenue recognition (the “Q2 2021 Catch Up”) and after adjusting for the negative impact of approximately 4.5 percentage points given the significant strengthening of the U.S. dollar relative to foreign currencies
- Subscription revenue of $31.9 million, representing 91% of total revenue, and an increase of 35% from the comparative period in the prior year
- Subscription revenue increased by 46% excluding the Q2 2021 Catch Up and after adjusting for the negative impact of approximately 5 percentage points given the significant strengthening of the U.S. dollar relative to foreign currencies
- Gross profit of $28.0 million, an increase of 37% from the comparative period in the prior year, or 80% of revenue, consistent with the comparative period in the prior year
- Net income of $2.1 million, or $0.06 per share, compared to net loss of $7.2 million, or $0.22 per share for the comparative period in the prior year
- Annual Recurring Revenue1 as at June 30, 2022 of $138.2 million, an increase of $44.8 million from $93.4 million at the end of the second quarter of 2021, or an increase of 48%
- Annual Recurring Revenue grew 51% adjusting for the negative impact of approximately 3 percentage points given the significant strengthening of the U.S. dollar relative to foreign currencies in the second quarter of 2021
- Adjusted EBITDA1 loss of $0.3 million compared to adjusted EBITDA loss of $2.0 million for the comparative period in the prior year
- Positive cash flow generated from operating activities of $1.1 million, compared to negative $0.6 million for the comparative period in the prior year
- Free cash flow1 of positive $0.9 million compared to negative $0.8 million for the comparative period in the prior year
- 1 Please refer to “Non-IFRS Measures and Reconciliation of Non-IFRS Measures” section of this press release.
Second Quarter 2022 Business Highlights
- Docebo is now used by 3,106 customers, an increase from 2,485 customers at the end of June 30, 2021.
- Strong growth in Average Contract Value2, calculated as total Annual Recurring Revenue divided by the number of active customers, increasing from $37,569 as at June 30, 2021 to $44,495 as at June 30, 2022.
- Notable new logo wins include Docebo being chosen to replace Chipotle's existing LMS with the goal of offering immersive learning and development opportunities and upskilling employees for future roles within the company.
- New customer British United Provident Association Limited, more widely known as Bupa, an international healthcare service company serving over 38 million customers worldwide, committed to implementing a one click digital environment for their employees, chose Docebo's full suite offering for its innovative design and easy to visualize analytics provided to various stakeholders.
- Continued to scale our relationship with Amazon Web Services (AWS) with the launch of AWS Skills Builder Subscriptions which is powered by Docebo, as well as the launch of our newly created extended enterprise support offering.
- Eurofins Scientific is a group of international life sciences companies which provide a unique range of analytical testing services to clients across multiple industries. They chose Docebo to address their Onboarding, Compliance, Professional Development, Management Training, and Sales Enablement needs based on Docebo's simple to use design and ability to efficiently connect to the third party systems they are using.
- Seven Hills Foundation offers a continuum of support and services to caregivers who support more than 28,000 children and adults through 14 Affiliate organizations. As part of their Technology Innovation initiative, they chose Docebo for the solution's ability to enhance employee engagement, productivity and retention while connecting to improved content libraries.
- Leading Real Estate Companies of The World (LeadingRE) is the home of the world's market-leading independent residential brokerages in over 70 countries, with 550 firms and 136,000 sales associates producing 1.2 million global transactions. Docebo's ability to handle multiple audiences, both internal and external were key in the firm's selection of Docebo Learn to address their onboarding and compliance training requirements.
- Genuine Parts Company, the parent company of NAPA Auto, was seeking to upgrade employee learning experiences across their retail outlets, which include Midas and Good Year. Docebo was selected for the modern architecture of the solution, which includes mobile applications, multilingual capability and power-user functionality for different domains.