Docebo(US:DCBO)2025-11-07 12:24Revenue Performance - Subscription revenue for Q3 2025 was $58.0 million, a 10% increase year-over-year, representing 94% of total revenue[6] - Total revenue for Q3 2025 reached $61.6 million, an 11% increase from the same period last year[6] - Annual Recurring Revenue (ARR) was $235.6 million, a 10.1% increase year-over-year, negatively impacted by $0.2 million due to foreign exchange effects[12] - Total revenue for the three months ended September 30, 2025, was $61,622,000, representing a 11.5% increase from $55,433,000 in the same period of 2024[27] - Annual Recurring Revenue (ARR) as of September 30, 2025, was $235.6 million, a 10.1% increase from $214.1 million in 2024[31] - Docebo anticipates total revenue for Q4 2025 to be between $62.0 million and $62.2 million, with adjusted EBITDA as a percentage of total revenue between 20.5% to 21.0%[9] Profitability Metrics - Gross profit for Q3 2025 was $49.5 million, accounting for 80.3% of total revenue, down from 81.1% in the prior year[6] - Adjusted EBITDA for Q3 2025 was $12.4 million, representing 20.1% of total revenue, compared to 15.7% in the prior year[6] - Net income for Q3 2025 was $6.1 million, or $0.21 per share, compared to $5.0 million, or $0.16 per share in Q3 2024[6] - Adjusted EBITDA for the three months ended September 30, 2025, was $12,404,000, which is 20.1% of total revenue, compared to 15.7% in the same period of 2024[35] - Net income for the three months ended September 30, 2025, was $6,109,000, compared to $4,959,000 in 2024, marking a 23.1% increase[27] - Adjusted net income for Q3 2025 was $9.9 million, compared to $8.3 million in Q3 2024, and for the nine months ended September 30, 2025, it was $27.3 million, up from $23.5 million in 2024[39] Cash Flow and Financial Position - Free Cash Flow for Q3 2025 was $5.7 million, representing 9.2% of total revenue, up from $4.5 million or 8.2% in Q3 2024[6] - Cash flow from operating activities for Q3 2025 was $5.3 million, an increase from $4.3 million in Q3 2024, with total cash flow from operating activities for the nine months at $19.5 million, slightly down from $19.5 million in 2024[44] - Cash and cash equivalents decreased by 28.5% to $66,129,000 as of September 30, 2025, down from $92,540,000 at the end of 2024[28] - Total assets decreased by 9.2% to $173,229,000 as of September 30, 2025, compared to $190,713,000 at the end of 2024[28] - Working capital decreased to $5.6 million as of September 30, 2025, from $9.9 million in 2024, primarily due to cash used for share repurchases and recognition of the ASPP liability[40] Contract and Market Developments - The company signed significant new contracts, including with a leading global provider in the industrial sector and the Latvian School of Public Administration, enhancing its market presence[9] - Average Contract Value (ACV) increased to $62.8 thousand in 2025 from $54.3 thousand in 2024, reflecting a growth of 15.7%[31] - The company anticipates a seven-figure negative impact on Annual Recurring Revenue due to a large enterprise customer terminating its agreement[26] Shareholder Metrics - The weighted average number of common shares outstanding decreased to 28.7 million (basic) in Q3 2025 from 30.2 million in Q3 2024[39] - Adjusted earnings per share (diluted) for Q3 2025 was $0.34, up from $0.27 in Q3 2024, while for the nine months, it was $0.90 compared to $0.76 in 2024[39] Restructuring and Acquisition Costs - The company incurred $1.0 million in acquisition-related compensation in Q3 2025, compared to $1.0 million in Q3 2024, and $3.1 million for the nine months, up from $3.0 million in 2024[39] - Restructuring costs for the nine months ended September 30, 2025, were $5.1 million, with $0.6 million recognized in Q3 2025[39]