Docebo(DCBO) - 2024 Q4 - Annual Report

Fourth Quarter 2024 Financial Highlights 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] Fiscal Year 2024 Financial Highlights 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] - Cash and cash equivalents increased to $92.5 million as of December 31, 2024, up from $72.0 million a year prior[7] Business Highlights and Outlook 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] - 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] Financial Outlook | Period | Guidance | | :--- | :--- | | Q1 2025 | - Total Revenue: $57.0M - $57.2M
- Adjusted EBITDA Margin: 14.5% - 15.0% | | FY 2025 | - Subscription Revenue Growth (FX-adjusted): 13.0% - 14.0%
- Total Revenue Growth (FX-adjusted): 12.5% - 13.5%
- Adjusted EBITDA Margin: 18.0% - 19.0% | Detailed Financial Tables 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 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] Key Performance Indicators (KPIs) 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] 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 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 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 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 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][15] - 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][18][19] - Docebo positions itself as a company redefining how enterprises use technology for content creation, training delivery, and measuring learning impact[25]