Docebo(US:DCBO)2023-03-11 01:08Financial Data and Key Metrics Changes - Total revenue for Q4 2022 grew to $39.0 million, an increase of 31% year-over-year, and 35% after adjusting for foreign exchange [31] - Adjusted EBITDA margin for Q4 was 6%, with a full fiscal year margin of 1% [9] - Annual recurring revenue (ARR) reached $157.1 million, a 36% increase after adjusting for foreign exchange [31] - Net dollar retention rate decreased to 109% from 113% in 2021, attributed to macroeconomic conditions [32] Business Line Data and Key Metrics Changes - Company-wide Average Contract Value (ACV) increased by 10% to over $46,000, with new customer ACV at approximately $53,400 [20] - Subscription revenues constituted 93% of total revenue for the quarter, amounting to $36.3 million [31] - Customers using Docebo for external or hybrid training represented 65% of total ARR, unchanged from Q3 [31] Market Data and Key Metrics Changes - North America remains the largest market, with significant enterprise deals signed, including VMware and Haier U.S. Appliance Solutions [21][22] - In Canada, a major deal was secured with a large entity within the Government of Quebec [22] - In Europe, a notable deal was closed with Agria, a pet healthcare insurance company, marking a significant presence in the Nordic region [23] Company Strategy and Development Direction - The company prioritizes growth while maintaining operational efficiency, emphasizing a flat organizational structure [12] - Investments in AI, particularly in Generative AI, are seen as fundamental to enhancing e-learning solutions [14] - A focus on M&A with a tuck-in strategy to enhance product offerings and capabilities is planned for 2023 [16][17] Management's Comments on Operating Environment and Future Outlook - Management noted that while deal cycles are elongating, the situation has not worsened, and demand remains healthy [10][60] - The company is optimistic about growth opportunities in 2023, driven by a strong market position and ongoing investments [12][28] - Management highlighted the importance of demonstrating value to customers to mitigate macroeconomic challenges [61] Other Important Information - The company reported a positive free cash flow of $2 million for Q4, equating to 5% of revenue [72] - Cash and cash equivalents at the end of Q4 stood at $216 million [72] - The company plans to provide quarterly guidance moving forward [74] Q&A Session Summary Question: How is the Q1 guidance constructed? - The guidance is based on prior quarter's ARR, with a significant portion of deals closing in the last month of the quarter [80] Question: What drove the expansion in ACV? - The expansion was driven by new enterprise customers and larger deals contributing to higher ACV [87] Question: How confident is the company about Europe contributing to revenue growth in 2023? - There is high confidence in Europe due to staffing up and positive demand trends, with significant enterprise deals being signed [106]