Docebo(US:DCBO)2025-08-08 11:12Financial Performance - Revenue for Q2 2025 reached $60,732,000, a 14.8% increase from $53,054,000 in Q2 2024[6] - Gross profit for the six months ended June 30, 2025, was $95,049,000, up 12.7% from $84,274,000 in the same period of 2024[6] - Operating income for Q2 2025 was $4,140,000, a decrease of 8.5% compared to $4,523,000 in Q2 2024[6] - Net income for the six months ended June 30, 2025, was $4,550,000, down 53.8% from $9,867,000 in the same period of 2024[12] - Subscription revenue for Q2 2025 increased to $57,066,000, up 14.5% from $49,821,000 in Q2 2024[63] - Professional services revenue for Q2 2025 was $3,666,000, representing an increase of 13.5% compared to $3,233,000 in Q2 2024[63] - Basic earnings per share for Q2 2025 was $0.10, down from $0.15 in Q2 2024[61] - Net income attributable to common shareholders for Q2 2025 was $3,076,000, a decrease of 34.5% from $4,698,000 in Q2 2024[61] - For the first half of 2025, total revenue was $118.028 billion, compared to $104.457 billion in the first half of 2024, indicating a year-over-year increase of 13.0%[77] Cash and Equity - Cash and cash equivalents decreased to $64,575,000 as of June 30, 2025, from $92,540,000 at the end of 2024[3] - Total equity decreased to $34,684,000 as of June 30, 2025, from $57,761,000 at the end of 2024, indicating a decline of 40%[3] Revenue Growth by Region - North America revenue for Q2 2025 reached $60.732 billion, up from $53.054 billion in Q2 2024, representing a growth of 14.3%[77] - United States revenue increased to $41.634 billion in Q2 2025, compared to $36.817 billion in Q2 2024, marking a growth of 10.0%[77] - Revenue from the Rest of World segment rose to $15.660 billion in Q2 2025, up from $12.904 billion in Q2 2024, reflecting a growth of 21.5%[77] - Canadian revenue for Q2 2025 was $3.438 billion, slightly up from $3.333 billion in Q2 2024, showing a growth of 3.2%[77] - Total revenue for the first half of 2025 in Canada was $6.528 billion, down from $6.721 billion in the same period of 2024, a decline of 2.9%[77] Expenses and Costs - Research and development expenses for Q2 2025 were $12,699,000, a 17.9% increase from $10,766,000 in Q2 2024[6] - Employee compensation costs for Q2 2025 amounted to $30,599,000, up 9.0% from $27,979,000 in Q2 2024[68] - Total share-based compensation expense for Q2 2025 was $1,733,000, a decrease of 9.9% from $1,923,000 in Q2 2024[50] - Employee severance costs related to workforce reduction in the first half of 2025 totaled $4,370,000[68] Assets and Liabilities - Deferred revenue increased to $83,148,000 in current liabilities as of June 30, 2025, compared to $72,922,000 at the end of 2024, reflecting a growth of 14.5%[3] - Trade receivables increased to $39,822, up from $39,265 as of December 31, 2024, representing a growth of 1.4%[25] - Accrued revenues rose to $5,164, compared to $3,962 in the previous year, marking a significant increase of 30.3%[25] - Total lease obligations decreased to $1,374 from $1,495 at the beginning of the year, reflecting a reduction of 8.1%[29] - The carrying value of property and equipment increased to $2,188 as of June 30, 2025, up from $2,003 at the end of 2024, indicating an increase of 9.2%[30] - Goodwill increased to $14,511 as of June 30, 2025, from $13,854 at the end of 2024, representing a growth of 4.7%[34] - The total balance of intangible assets increased to $3,893 as of June 30, 2025, from $3,661 at the end of 2024, reflecting a growth of 6.3%[33] Strategic Initiatives - The company is focusing on expanding its market presence in the Rest of World segment, which has shown significant growth[77] - Future outlook indicates continued investment in new product development and technology advancements to drive revenue growth[77] - The company plans to explore potential acquisitions to enhance its market position and product offerings[77] - Strategic initiatives will be implemented to improve operational efficiency and customer engagement across all regions[77] Share Repurchase - The company repurchased shares for cancellation amounting to $43,615,000 during the six months ended June 30, 2025[12] - The company repurchased 1,529,256 common shares at an average price of $28.52 per share, totaling $43,615 in cash consideration[43] Credit Facilities - The company entered into a $50,000 secured revolving credit facility with National Bank of Canada, which includes an accordion feature for an additional $50,000[35] - The company reported finance income for the six months ended June 30, 2025, totaling $(1,190), a slight improvement from $(1,216) in the same period of 2024[41] - The company remains in compliance with all covenants related to its credit facility as of June 30, 2025[39] Stock Options - Total stock options outstanding as of June 30, 2025, increased to 1,032,302 from 968,186 in June 2024[53] - The weighted average fair value of options issued in the first half of 2025 was $19.55, down from $31.04 in the first half of 2024[53]