Docebo(US:DCBO)2022-11-11 01:49Financial 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]