Docebo Reports Fourth Quarter and Fiscal Year 2022 Results TORONTO, ONTARIO - March 9, 2023 - Docebo Inc. (NASDAQ: DCBO; TSX:DCBO) ("Docebo" or the "Company"), a leading artificial intelligence (AI)-powered learning platform provider, today announced financial results for the three months and fiscal year ended December 31, 2022. All amounts are expressed in US dollars unless otherwise stated. • Revenue of $142.9 million, an increase of 37% from the comparative period in the prior year • Revenue increased by ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2022 grew to $37 million, an increase of 37% from the prior year, and increased by 42% after adjusting for foreign exchange [24] - Subscription revenues were $34.3 million, representing 93% of total revenue for the quarter [24] - Annual recurring revenue (ARR) was $144.6 million, an increase of 44% after adjusting for foreign exchange [24] - Gross profit margin improved sequentially to 81% of revenue [26] - Positive adjusted EBITDA of $0.6 million for Q3 2022 compared to an adjusted EBITDA loss of $0.3 million for Q2 [29] - Net income for Q3 2022 was $10.3 million compared to $2.1 million in Q2 [29] - Cash and cash equivalents at the end of Q3 were $213 million [30] Business Line Data and Key Metrics Changes - Customers using Docebo for external or hybrid training increased to 65% of total ARR [25] - Company-wide average contract value (ACV) increased 17% after adjusting for foreign exchange, reaching approximately $45,000 [24] - New and cross-sell logos with ARR greater than $100,000 represented approximately 30% of net new ARR in Q3 [24] Market Data and Key Metrics Changes - North America remains the largest market, with strong external and multi-use case opportunities [21] - Expansion in EMEA and APAC is steady, with notable growth in the Nordics [21] Company Strategy and Development Direction - The company aims to demonstrate operating leverage and drive profitability to unlock shareholder value [9] - Focus areas include innovation, doubling down on the enterprise segment, and strategic hiring [10] - The company is concentrating on a solution-based approach to address specific customer use cases [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic headwinds but remains confident in the quality of the growing pipeline and strong win rates [15] - The commitment to sustainable growth with improving profitability is emphasized, despite potential near-term challenges [12] - Management is proactive in making necessary adjustments to achieve growth objectives [12] Other Important Information - The company reported a foreign exchange gain of $10.2 million included in operating expenses [26] - Share-based compensation as a percentage of Q3 revenue was 2.7% [30] Q&A Session Summary Question: Pipeline and Deal Opportunities - Management confirmed that the pipeline remains strong, with a healthy mix across segments and opportunities for larger deals [35][36] Question: Cost of Acquisition - Management indicated that customer acquisition cost (CAC) should be viewed on an annual basis due to seasonality, with expectations for improved efficiency moving forward [38][40] Question: MHR Relationship - The partnership with MHR is seen as beneficial, particularly in the government sector, which is currently underexplored [43][45] Question: Competitive Displacement - Management noted that they are displacing legacy vendors and single-point solutions, focusing on providing comprehensive solutions [58] Question: Use Cases and Customer Behavior - There is a growing interest in external training and monetization of learning, which is expected to drive future growth [61][63] Question: Seasonality and Deal Slippage - Management acknowledged that some deals slipped into other quarters due to seasonal factors, but they remain optimistic about Q4 and Q1 [83][84] Question: Branding and Marketing Strategy - The company is evolving its branding to focus more on solving real business problems for customers, particularly in the enterprise space [86][87]

Financial Data and Key Metrics Changes - Total revenue increased by 47% after adjusting for foreign exchange impacts, with reported revenue for the quarter growing to $34.9 million, a 36% increase from the prior year [27] - Subscription revenues were $31.9 million, representing 91% of total revenue for the quarter [27] - Annual recurring revenue (ARR) for the quarter was $138.2 million, an increase of 51% after adjusting for foreign exchange [27] - Company-wide average contract value (ACV) increased by 21% after adjusting for foreign exchange, reaching approximately $45,000 [28] - Gross profit margin improved to 80% of revenue, consistent with the prior year period [30] - Net income for the second quarter was $2.1 million, compared to a net loss of $7 million in the first quarter [33] - Positive free cash flow of $0.9 million was reported for the second quarter, ahead of plan [34] Business Line Data and Key Metrics Changes - The company added 159 net new customers during the quarter, with over 60% of deals coming from mid-market and enterprise segments [16] - Cross-sells and upsells performed well, indicating improved sales effectiveness [16] - New and cross-sell logos with ARR greater than $100,000 represented approximately 30% of net new ARR [28] Market Data and Key Metrics Changes - North America remains the strongest market with the largest greenfield opportunity, while traction in European markets, particularly the UK and Nordics, has been excellent [21] - The total addressable market (TAM) for external training in North America is estimated at $8 billion, with two-thirds being external and 70% of that being greenfield [49] Company Strategy and Development Direction - The company is focused on customer education and revenue enablement as priority investments for enterprise customers [14] - The strategy includes consolidating technology stacks and providing flexible learning solutions that integrate internal and external needs [15] - The company aims to expand use cases across customer organizations while continuing to grow in the enterprise market [62] Management's Comments on Operating Environment and Future Outlook - Management noted that while the macroeconomic environment is causing elongated sales cycles, the demand for their solutions remains strong [7][15] - The company is optimistic about long-term growth prospects, driven by technology investments that enhance productivity and revenue generation [26] - Management expects modest improvements in EBITDA and free cash flow as they continue to optimize unit economics [36][82] Other Important Information - The company reported a foreign exchange gain of $4.9 million included in operating expenses, which is primarily unrealized [30] - Share-based compensation as a percentage of revenue was approximately 4%, considered modest compared to peers [35] Q&A Session Summary Question: Impact of macro uncertainty on sales cycle and pipeline composition - Management confirmed that the pipeline is growing despite elongated sales cycles, particularly for larger enterprise deals [38][40] Question: Update on OEM channel performance, specifically Ceridian - Ceridian continues to perform well and remains a significant contributor to the ARR story [44] Question: Details on the total addressable market (TAM) - The external use case market in North America is estimated at $8 billion, with two-thirds being external and 70% of that being greenfield [49][50] Question: Competitive landscape and win rates - Management noted increased competition but maintained that win rates remain well above industry standards [77] Question: Expectations for EBITDA and cash flow improvements - Management indicated that improvements in EBITDA and free cash flow are expected due to operating leverage and optimized unit economics [82]

Financial Data and Key Metrics Changes - Total revenue for Q1 2022 grew to $32.1 million, an increase of 47% year-over-year [16] - Subscription revenues were $29.1 million, representing 91% of total revenue for the quarter [16] - Net new ARR added during the quarter was $11.6 million, bringing total ARR to $129.3 million, a 55% year-over-year increase [16] - Gross profit margin for the quarter was 80%, compared to 82% for the prior year period [18] - Net loss for Q1 2022 was $7 million, compared to a net loss of $5.6 million for the prior year period [20] Business Line Data and Key Metrics Changes - The average contract value (ACV) increased to approximately $44,000, up 23% from $36,000 at the end of Q1 2021 [17] - ACV for new customers in the quarter was approximately $60,000, driven by a shift towards enterprise-sized deals [17] - 83% year-over-year increase in the number of customers generating ARR of more than $100,000 [7] Market Data and Key Metrics Changes - Total customers at the end of Q1 2022 were 2,947 [17] - The company continues to see strong demand across various industry verticals, particularly in the enterprise segment [6][8] Company Strategy and Development Direction - The company aims to innovate both core products and new offerings, focusing on expanding into new verticals and geographies [26] - The strategy includes investing in technologies to drive critical business outcomes and addressing skill gaps in the workforce [8] - The company is focused on transforming customer relationships into long-term partnerships to drive growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustained demand for enterprise learning solutions despite macroeconomic challenges [22] - The company is well-positioned to capitalize on long-term growth opportunities in the learning technology sector [15] - Management highlighted the importance of investing in human capital to support future growth [30] Other Important Information - The company is finalizing its first year-to-year report, which will be published before the shareholder meeting in June [14] - The company has a strong balance sheet with net cash and cash equivalents of $212 million at the end of the quarter [21] Q&A Session Summary Question: What would it take to reach $1 billion in revenue? - Management indicated that reaching $1 billion would require organic growth through product innovation, geographic expansion, and targeting new verticals [25][27] Question: Changes to the go-to-market strategy with new leadership? - Management emphasized the importance of leveraging new leadership to enhance organizational innovation and scale [30] Question: Insights on the demand environment and spending trends? - Management noted that companies are increasingly focused on talent retention and are investing in learning technologies to mitigate challenges [34] Question: Divergence in growth rates of ARR and revenue? - Management explained that the timing of enterprise deals and contract negotiations can lead to differences in ARR and revenue recognition [42] Question: Thoughts on the EdCast acquisition by Cornerstone? - Management stated that the acquisition does not significantly impact their business, as they believe their platform capabilities are superior [45] Question: Expectations for EBITDA positivity? - Management confirmed expectations for EBITDA to turn positive by Q4 2022, considering wage inflation and cost pressures [48] Question: Changes in customer acquisition strategies as the company moves to enterprise? - Management highlighted a shift towards more sophisticated lead generation strategies for enterprise customers, including account-based marketing [52] Question: Trends in displacements versus new business wins? - Management reported that over 80% of wins in the mid-market and enterprise segments are displacements, indicating a strong competitive position [59] Question: Competitive dynamics with potential SAP Litmos sale? - Management expressed that the sale of Litmos to a private equity firm could provide an opportunity for them to strengthen their market position [64]

Docebo Inc. (NASDAQ:DCBO) Q4 2021 Earnings Conference Call March 10, 2022 8:00 AM ET Company Participants Mike McCarthy - Vice President of Investor Relations Claudio Erba - Chief Executive Officer Sukaran Mehta - Interim Chief Financial Officer Alessio Artuffo - President and Chief Revenue Officer Conference Call Participants Robert Young - Canaccord Genuity Daniel Chan - TD Securities Richard Tse - National Bank Financial Christian Sgro - Eight Capital Paul Steep - Scotiabank Suthan Sukumar - Stifel Gavin ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2021 grew to $27.1 million, an increase of 68% from the prior year [28] - Subscription revenue was $25.1 million, representing 93% of total revenue for the quarter and up 66% from the prior year [29] - Net ARR added in Q3 was $10.2 million, the highest ever for Docebo, with total ARR at $103.5 million, a 60% increase from $64.6 million in Q3 2020 [29][30] - Average contract value (ACV) increased to $39,000, up 23% from $32,000 at the end of Q3 2020 [30] - Adjusted EBITDA loss was $2 million for Q3 2021, compared to income of $0.6 million in the prior year [39] - Free cash flow was negative $1 million in Q3, with a healthy balance sheet showing net cash and cash equivalents of $216 million [40] Business Line Data and Key Metrics Changes - Professional services revenue in Q3 was $2 million, an increase of 102% from the prior year [29] - ACV from new customers grew to approximately $59,000 compared to approximately $46,000 in Q2 2021 [30] - Nearly half of new logo business in Q3 came from contracts over $100,000 in ARR, with a significant increase in larger enterprise deals [10][31] Market Data and Key Metrics Changes - The retail and biotech sectors showed strong performance, with notable partnerships including Neiman Marcus and Smiths Medical [13][14] - The company is seeing broad-based growth across customer verticals, with a notable increase in enterprise deals [9][31] Company Strategy and Development Direction - The company continues to focus on solving both internal and external use cases, with a strategy that emphasizes hybrid use cases [11] - New product launches, including Docebo Learning Suite, are expected to drive future growth, although the core Learn LMS platform remains the primary growth driver [17][20] - The company is investing in expanding its partnership program and geographical reach, with plans for further growth in 2022 [23][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong sales pipeline and the ability to continue growing revenue organically [41] - The current labor market challenges are driving demand for LMS solutions to improve employee retention and customer engagement [62] - Management noted that the company is well-positioned to capitalize on the growing need for comprehensive learning solutions across various industries [60] Other Important Information - Docebo was recognized for its CSR efforts with the 2021 Tech Cares Award from TrustRadius for empowering women in technology [24] - The company is committed to fostering a culture of diversity, equity, and inclusion within its workforce [25] Q&A Session Summary Question: Can you break down the enterprise growth seen this quarter? - Management noted that the product's maturity and ability to solve multiple use cases are driving higher ARR and revenue, with a focus on hybrid use cases [43] Question: How is the sales approach for the learning suite structured? - The company aims to build trust with customers before upselling additional products, focusing on the core Learn product as the entry point [44] Question: What is the structure of the cross-sell agreement with the e-commerce customer? - Management indicated that they are bound by confidentiality but emphasized the importance of understanding customer needs across multiple business units [46] Question: Are the enterprise deals primarily displacing incumbents or are they greenfield opportunities? - Management confirmed that displacement is common in the enterprise segment, but many larger organizations are still underserved in their learning needs [49] Question: What is driving the increase in enterprise deals? - Management attributed the increase to brand recognition, intentional investment in the enterprise segment, and the growth of existing customers into larger accounts [51] Question: How is the OEM partnership performing? - Management expressed satisfaction with the performance of OEM partners, noting that patience in building these relationships is key to long-term growth [76]

Docebo, Inc. (NASDAQ:DCBO) Q2 2021 Earnings Conference Call August 12, 2021 8:00 AM ET Company Participants Dennis Fong - IR Claudio Erba - CEO Ian Kidson - CFO Alessio Artuffo – President & CRO Conference Call Participants Robert Young - Canaccord Stephanie Price - CIBC Richard Tse - National Bank Daniel Chan - TD Phillip Leytes - Berenberg Capital Salman Zia Rana - Laurentian Bank Paul Steep - Scotiabank Christian Sgro - Eight Capital Operator Good morning, everyone and welcome to the Docebo, Inc. Second ...

Docebo Inc. (NASDAQ:DCBO) Q4 2020 Earnings Conference Call March 11, 2021 8:00 AM ET Company Participants Dennis Fong - Investor Relations Claudio Erba - Chief Executive Officer Ian Kidson - Chief Financial Officer Alessio Artuffo - Chief Revenue Officer Conference Call Participants Robert Young - Canaccord Stephanie Price - CIBC Daniel Chan - TD Richard Tse - National Bank Gavin Fairweather - Cormark Securities Martin Toner - ATB Capital Markets Suthan Sukumar - Eight Capital Nick Agostino - Laurentian Ban ...