Company Performance - Docebo Inc. reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and up from $0.23 per share a year ago, representing an earnings surprise of 28.57% [1] - The company posted revenues of $57.3 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.32% and increasing from $51.4 million year-over-year [2] - Over the last four quarters, Docebo has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Docebo shares have declined approximately 28.5% since the beginning of the year, compared to a decline of 3.7% for the S&P 500 [3] - The current Zacks Rank for Docebo is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $59.2 million, and for the current fiscal year, it is $1.22 on revenues of $240.39 million [7] - The outlook for the industry, specifically the Internet - Software sector, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Core Insights - Docebo is recognized for its commitment to transforming learning technology, driving business success globally [1][2] - The company has achieved Diamond Level Smartchoice® Preferred Provider status, reflecting its high standards and innovative solutions in learning and development [3][4] Company Overview - Docebo is redefining enterprise learning through an AI-driven platform that integrates content creation, delivery, and personalization [4][8] - The company aims to empower organizations to build agile, high-performing teams and create meaningful changes in learning and work [2][4] Industry Recognition - Brandon Hall Group, a leading independent analyst firm, confirms that Docebo's offerings provide measurable benefits to organizations [5] - The Smartchoice® Preferred Provider Program offers resources and advisory support to ensure that Docebo maintains its high certification standards [3][5] Leadership Perspective - CEO Alessio Artuffo emphasizes that Docebo is evolving beyond a traditional LMS to become a comprehensive enterprise learning platform [4] - The recognition from Brandon Hall Group is seen as validation of Docebo's innovative approach to solving real problems at scale [4]

Group 1 - The article discusses the services provided by IPO Edge, which includes actionable information on growth stocks, first-look IPO filings, previews on upcoming IPOs, an IPO calendar, a database of U.S. IPOs, and a comprehensive guide to IPO investing [1]

Financial Data and Key Metrics Changes - Docebo reported an increase in average annual contract value (ACV) from $70,000 to $83,000 per new customer, reflecting a 17% year-over-year growth [48] - The company achieved a net retention rate (NDRR) of 100%, down from 104%, primarily due to a large customer downgrade and a 40% increase in contracts up for renewal in 2024 compared to 2023 [104][105] Business Line Data and Key Metrics Changes - The launch of three new product modules, including community and analytics components, has positively impacted customer adoption and revenue [11][12] - The attachment rates for new products launched late last year exceeded expectations, contributing to the overall growth in new logo ACV [75] Market Data and Key Metrics Changes - Docebo serves over 40 million users globally, with expectations to reach approximately 100 million users in the next five years [13] - The company is experiencing strong demand in the mid-enterprise and enterprise markets, particularly for deals above $500,000 in ARR or ACV [98] Company Strategy and Development Direction - The strategic vision is to transform Docebo from an enterprise LMS to an AI-first learning platform that addresses a broader set of learning needs [15][17] - The company plans to leverage generative AI to enhance user engagement and automate various tasks within the platform [31][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive position and the impact of new product releases on customer engagement and market share [10][11] - The company anticipates achieving authority to operate (ATO) status with FedRAMP by the end of Q3, which will enable bidding on government contracts [24][27] Other Important Information - Docebo has a cash reserve of approximately $92 million, with plans for potential stock buybacks and strategic acquisitions to enhance growth [86][88] - The company is focusing on internal upskilling initiatives, including launching an AI academy for employees [84] Q&A Session Summary Question: Update on competitive position and product adoption - Management noted satisfaction with the early impact of new product modules and emphasized the company's strong market position as an enterprise LMS [11][12] Question: FedRAMP activities and impact on customer engagement - The audit process for FedRAMP is progressing well, with expectations to achieve ATO status by the end of Q3, which aligns with government modernization efforts [24][25] Question: Insights on Agentic AI offering - The Agentic AI strategy aims to enhance user engagement and automate tasks, making the platform easier to manage [31][34] Question: Leadership changes and go-to-market strategy - New leadership has been brought on board to equip the company with necessary skills for future success, while internal talent development remains a priority [39][41] Question: Update on larger ACV lands and customer expansion - The focus is on entering organizations with a service-oriented approach, leading to trust and credibility, rather than all-in wins from the start [46][48] Question: Margins and operating leverage - Management indicated that there is room for operating efficiencies across departments, driven by AI implementation [52][53] Question: Contribution to ARR growth from current customers vs. new logos - The company expects to see growth from existing customers as they right-size their contracts, with new logo wins also contributing to future growth [115][118] Question: Capital allocation strategy - Buybacks and strategic acquisitions are being considered as part of the capital allocation strategy to enhance shareholder value [86][88]

Core Insights - Docebo Inc. reported quarterly earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.33 per share, representing an earnings surprise of -15.15% [1] - The company posted revenues of $57.04 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.37% and showing an increase from $49.28 million year-over-year [2] - Docebo shares have declined approximately 16.6% since the beginning of the year, contrasting with the S&P 500's decline of -0.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $58.55 million, and for the current fiscal year, it is $1.24 on revenues of $246.33 million [7] - The estimate revisions trend for Docebo is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Docebo belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Investor Presentation | February 2025 Note: All financials presented are in US$ unless otherwise noted. Disclaimer General This presentation is property of Docebo Inc. (the "Company", "Docebo", "us" or "we"). It cannot be circulated or forwarded without our consent. Any graphs, tables or other information demonstrating our historical performance or that of any other entity contained in this presentation are intended only to illustrate past performance and are not necessarily indicative of our or such entiti ...

[Fourth Quarter 2024 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%202024%20Financial%20Highlights) Docebo reported strong Q4 2024 growth with total revenue up 16% to $57.0 million, net income surging to $11.9 million, and Adjusted EBITDA reaching $9.5 million Q4 2024 Financial Performance vs. Q4 2023 | Metric | Q4 2024 ($ million) | Q4 2023 ($ million) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $57.0 | $49.3 | +16% | | **Subscription Revenue** | $54.0 | $46.5 | +16% | | **Gross Profit** | $46.4 | $40.0 | +16% | | **Gross Margin** | 81.3% | 81.2% | +0.1 p.p. | | **Net Income** | $11.9 | $3.2 | +270% | | **Adjusted Net Income** | $8.7 | $8.3 | +4.8% | | **Adjusted EBITDA** | $9.5 | $6.5 | +46% | | **Adjusted EBITDA Margin** | 16.7% | 13.2% | +3.5 p.p. | | **Free Cash Flow** | $10.1 | $7.0 | +44% | - Annual Recurring Revenue (ARR) as of December 31, 2024, reached **$219.7 million**, an increase of **$25.4 million** from the end of Q4 2023[6](index=6&type=chunk) [Fiscal Year 2024 Financial Highlights](index=1&type=section&id=Fiscal%20Year%202024%20Financial%20Highlights) Docebo's FY 2024 results show total revenue of $216.9 million, a 20% increase, with net income surging to $26.7 million and Adjusted EBITDA more than doubling to $33.6 million Fiscal Year 2024 Financial Performance vs. FY 2023 | Metric | FY 2024 ($ million) | FY 2023 ($ million) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $216.9 | $180.8 | +20% | | **Subscription Revenue** | $204.3 | $169.8 | +20% | | **Gross Profit** | $175.6 | $146.3 | +20% | | **Net Income** | $26.7 | $2.8 | +841% | | **Adjusted Net Income** | $32.1 | $21.2 | +52% | | **Adjusted EBITDA** | $33.6 | $16.3 | +107% | | **Adjusted EBITDA Margin** | 15.5% | 9.0% | +6.5 p.p. | | **Free Cash Flow** | $32.3 | $20.1 | +60.5% | - Net Dollar Retention Rate was **100%** as of December 31, 2024, compared to **104%** at the end of 2023[6](index=6&type=chunk) - Cash and cash equivalents increased to **$92.5 million** as of December 31, 2024, up from **$72.0 million** a year prior[7](index=7&type=chunk) [Business Highlights and Outlook](index=2&type=section&id=Fourth%20Quarter%202024%20Business%20Highlights) Docebo expanded its customer base to 3,978 with increased ACV, launched new AI products, secured new clients, and provided positive Q1 and FY 2025 financial guidance - The company's AI-driven platform was strengthened by the successful launch of three new products: **AI Authoring**, **Advanced Analytics**, and **Communities**[3](index=3&type=chunk) - Key business developments in Q4 2024 include: - Total customers increased to **3,978** from **3,759** year-over-year - Average Contract Value grew to **$55,229** from **$51,689** - Notable new customer wins include **YMCA of the USA** and **Xponential Fitness** - Expanded relationships with existing customers such as **lululemon** and **Databricks**[11](index=11&type=chunk) Financial Outlook | Period | Guidance | | :--- | :--- | | **Q1 2025** | - Total Revenue: $57.0M - $57.2M <br> - Adjusted EBITDA Margin: 14.5% - 15.0% | | **FY 2025** | - Subscription Revenue Growth (FX-adjusted): 13.0% - 14.0% <br> - Total Revenue Growth (FX-adjusted): 12.5% - 13.5% <br> - Adjusted EBITDA Margin: 18.0% - 19.0% | [Detailed Financial Tables](index=3&type=section&id=Selected%20Financial%20Measures) This section presents comprehensive consolidated financial statements, including income statement, balance sheet, and key performance indicators for Q4 and FY 2024 Selected Financial Measures (in thousands of US dollars) | Measure | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $57,041 | $49,280 | $216,931 | $180,839 | | **Gross Profit** | $46,391 | $40,025 | $175,636 | $146,341 | | **Net Income** | $11,910 | $3,222 | $26,736 | $2,840 | | **EPS - Diluted** | $0.38 | $0.10 | $0.86 | $0.08 | | **Cash from Ops** | $9,727 | $6,476 | $29,249 | $15,964 | Key Performance Indicators (as of Dec 31) | KPI | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | **Annual Recurring Revenue** | $219.7M | $194.3M | +13.1% | | **Average Contract Value** | $55.2K | $51.7K | +6.8% | | **Net Dollar Retention Rate** | 100% | 104% | -4% | | **Customers** | 3,978 | 3,759 | +5.8% | Key Statement of Financial Position (in thousands of US dollars) | Account | Dec 31, 2024 | Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $92,540 | $71,950 | +28.6% | | **Total assets** | $190,713 | $158,375 | +20.4% | | **Total liabilities** | $132,952 | $107,654 | +23.5% | [Non-IFRS Measures and Reconciliations](index=6&type=section&id=Non-IFRS%20Measures%20and%20Reconciliation%20of%20Non-IFRS%20Measures) This section defines and reconciles non-IFRS financial measures like Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow to IFRS equivalents - The company uses non-IFRS measures to provide investors with alternative views of operating performance and liquidity, highlighting business trends not always apparent from IFRS measures alone[30](index=30&type=chunk) [Key Performance Indicators (KPIs)](index=7&type=section&id=Key%20Performance%20Indicators) This subsection defines key performance indicators such as Annual Recurring Revenue, Average Contract Value, and Net Dollar Retention Rate, used to track customer trends - **Annual Recurring Revenue (ARR):** The annualized equivalent value of subscription revenue from all existing contracts - **Average Contract Value (ACV):** Total ARR divided by the number of active customers - **Net Dollar Retention Rate:** Measures the change in monthly subscription revenue from the existing customer base, including expansions, contractions, and churn[34](index=34&type=chunk) KPI Performance | KPI | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | **Annual Recurring Revenue** | $219.7M | $194.3M | +13.1% | | **Average Contract Value** | $55.2K | $51.7K | +6.8% | | **Net Dollar Retention Rate** | 100% | 104% | -3.8% | [Adjusted EBITDA](index=7&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA, defined as net income adjusted for specific non-operating items, showed significant growth of 46.4% in Q4 and 106.5% for FY 2024 Reconciliation of Net Income to Adjusted EBITDA (in thousands of US dollars) | | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net income** | $11,910 | $3,222 | $26,736 | $2,840 | | Adjustments | ... | ... | ... | ... | | **Adjusted EBITDA** | $9,515 | $6,500 | $33,616 | $16,277 | | **Adjusted EBITDA Margin** | 16.7% | 13.2% | 15.5% | 9.0% | [Adjusted Net Income and Adjusted EPS](index=8&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Earnings%20per%20Share) Adjusted Net Income, excluding non-cash and non-recurring items, reached $32.1 million for FY 2024, with diluted Adjusted EPS at $1.04 Reconciliation of Net Income to Adjusted Net Income (in thousands of US dollars) | | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net income** | $11,910 | $3,222 | $26,736 | $2,840 | | Adjustments | ... | ... | ... | ... | | **Adjusted net income** | $8,658 | $8,303 | $32,116 | $21,159 | | **Adjusted EPS - diluted** | $0.28 | $0.25 | $1.04 | $0.63 | [Free Cash Flow](index=10&type=section&id=Free%20Cash%20Flow) Free Cash Flow, derived from operating activities less capital expenditures, increased to $10.1 million in Q4 2024 and $32.3 million for the full year Reconciliation of Cash Flow from Operations to Free Cash Flow (in thousands of US dollars) | | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | **Cash flow from operating activities** | $9,727 | $6,476 | $29,249 | $15,964 | | Purchases of property and equipment | ($287) | ($249) | ($1,245) | ($635) | | Other adjustments | $669 | $777 | $4,282 | $4,788 | | **Free cash flow** | $10,109 | $7,004 | $32,286 | $20,117 | [Other Information](index=3&type=section&id=Other%20Information) This section provides supplementary information, including investor conference call details, forward-looking statement disclaimers, and a corporate profile - Management will host a conference call on February 28, 2025, to discuss the results, with an archived recording available[13](index=13&type=chunk)[15](index=15&type=chunk) - The press release contains forward-looking statements, including financial guidance, which are based on management's current estimates and assumptions and are subject to various risks and uncertainties[16](index=16&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) - Docebo positions itself as a company redefining how enterprises use technology for content creation, training delivery, and measuring learning impact[25](index=25&type=chunk)

Group 1 - The core thesis is that Docebo (NASDAQ: DCBO) has significant growth potential due to a large Total Addressable Market (TAM) and ample room for expansion [3] - The company is positioned to continue growing its top line, indicating a positive outlook for future performance [3] - The analysis emphasizes a long-term growth strategy, suggesting that the company can compound its earnings and shareholder returns over time [3] Group 2 - The article does not provide specific financial metrics or performance data for Docebo [3] - There are no disclosed positions or plans to initiate positions in Docebo within the next 72 hours, indicating an unbiased perspective [3] - The analysis is presented as an independent opinion without any compensation from the company mentioned [3]

Financial Data and Key Metrics Changes - The company reported an annual recurring revenue (ARR) growth of 18% for the quarter, with a revenue growth guidance of 14% for Q4 [36][71] - The average contract value (ACV) for new deals was reported at $71,000, indicating a strong performance despite being a seasonally slower quarter [23][66] Business Line Data and Key Metrics Changes - The enterprise segment grew by 25% this quarter, while the small and medium-sized business (SMB) segment experienced growth in the single digits [27][28] - The new pricing strategy, launched in April, has driven higher value conversations and is expected to streamline the renewal process over time [19][22] Market Data and Key Metrics Changes - The company is seeing strong performance in sectors such as software, professional services, associations, and retail, particularly in the DACH region [10][11] - The government sector is also showing positive outcomes, with partnerships with firms like Deloitte enhancing market positioning [17] Company Strategy and Development Direction - The company aims to become a complete AI-driven learning and knowledge platform, focusing on expanding its total addressable market (TAM) [94] - There is a strong emphasis on partnerships, particularly with system integrators and large enterprises, to enhance go-to-market strategies [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the FedRAMP certification process, emphasizing its importance for accessing federal market opportunities [62] - The company is focused on improving its sales and marketing organization to better target mid-market and enterprise segments, which is expected to enhance pipeline quality [76] Other Important Information - The company has made significant investments in new product offerings, including AI authoring and community features, which are anticipated to drive future growth [48][86] - The leadership team has seen changes, with new executives brought on board to strengthen the organization [83] Q&A Session Summary Question: Update on the selling environment and sales productivity - Management highlighted the company's ability to execute well in a challenging macro environment, with a balanced focus on direct sales and partner relationships [7][8] Question: Progress on FedRAMP certification - Management confirmed that the company is audit-ready and actively working to finalize a sponsor relationship, remaining cautiously optimistic about the outcome [15][16] Question: Update on pricing strategy - The new core bundle pricing has driven higher value conversations and is expected to streamline the renewal process, with strong ACV growth reported [19][22] Question: Growth by cohort - The enterprise segment grew by 25%, while the SMB segment showed slower growth, with expectations for potential stabilization in 2025 [27][30] Question: OEM strategy and potential headwinds - The partner strategy remains strong, with a focus on expanding partnerships and supporting large enterprises [32][34] Question: Free cash flow and working capital changes - Management indicated that the lower free cash flow was due to timing of payments and bonuses, and this should be factored into future modeling [59][60] Question: Confidence in participating in large RFPs - The company emphasized the importance of FedRAMP certification for accessing large federal opportunities, with a significant TAM in the federal market [62] Question: Adoption of the new communities product - The communities product has shown strong engagement during beta testing, with potential for both external and internal use cases [86][88]

| --- | --- | --- | |-------|-------------------------------------------------|-------| | | | | | | docebo Investor Presentation \| November 2024 | | | | → | | | | | | | | | | 9 Disclaimer General This presentation is property of Docebo Inc. (the "Company", "Docebo", "us" or "we"). It cannot be circulated or forwarded without our consent. Any graphs, tables or other information demonstrating our historical performance or that of any other entity contained in this presentation are intended only to illustrate ...