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TORONTO--(BUSINESS WIRE)--Nov 10, 2022--
Docebo Inc. (NASDAQ: DCBO; TSX:DCBO) (“ Docebo ” or the “ Company ”), a leading artificial intelligence (AI)-powered learning suite, today announced financial results for the three and nine months ended September 30, 2022. All amounts are expressed in US dollars unless otherwise stated.
“Consistent execution resulted in strong revenue growth and delivered positive adjusted EBITDA a full quarter ahead of schedule. Docebo continues to drive positive learning outcomes for customers, which enable them to increase their productivity and compete more effectively in today’s challenging macroeconomic climate,” said Claudio Erba, Founder and CEO of Docebo.
Third Quarter 2022 Financial Highlights
1 Please refer to “Non-IFRS Measures and Reconciliation of Non-IFRS Measures” section of this press release.
Third Quarter 2022 Business Highlights
2 Please refer to “Non-IFRS Measures and Reconciliation of Non-IFRS Measures” section of this press release.
Third Quarter 2022 Results | ||||||||||||||||||||||
Selected Financial Measures | ||||||||||||||||||||||
| Three months ended September 30, |
| Nine months ended September 30, | |||||||||||||||||||
| 2022 | 2021 | Change | Change |
| 2022 | 2021 | Change | Change | |||||||||||||
$ | $ | $ | % |
| $ | $ | $ | % | ||||||||||||||
Subscription Revenue | 34,279 |
| 25,057 |
| 9,222 | 36.8 | % |
| 95,323 |
| 68,476 |
| 26,847 | 39.2 | % | |||||||
Professional Services | 2,687 |
| 2,011 |
| 676 | 33.6 | % |
| 8,634 |
| 5,965 |
| 2,669 | 44.7 | % | |||||||
Total Revenue | 36,966 |
| 27,068 |
| 9,898 | 36.6 | % |
| 103,957 |
| 74,441 |
| 29,516 | 39.7 | % | |||||||
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Gross Profit Margin | 29,826 |
| 21,385 |
| 8,441 | 39.5 | % |
| 83,286 |
| 59,742 |
| 23,544 | 39.4 | % | |||||||
Percentage of Total Revenue | 80.7 | % | 79.0 | % |
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| 80.1 | % | 80.3 | % |
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Net Income (Loss) | 10,274 |
| 661 |
| 9,613 | 1,454.3 | % |
| 5,418 |
| (12,173 | ) | 17,591 | 144.5 | % | |||||||
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Cash from (used in) Operating Activities | 975 |
| (411 | ) | 1,386 | (337.2 | ) % |
| 95 |
| (3,224 | ) | 3,319 | 102.9 | % |
Key Performance Indicators and Non-IFRS Measures | |||||||||
| As at September 30, | ||||||||
| 2022 | 2021 | Change | Change % | |||||
Annual Recurring Revenue (in millions of US dollars) | 144.6 | 103.5 | 41.1 | 39.7 | % | ||||
Average Contract Value (in thousands of US dollars) | 44.6 | 39.3 | 5.3 | 13.5 | % | ||||
Customers | 3,245 | 2,636 | 609 | 23.1 | % |
| Three months ended September 30, |
| Nine months ended September 30, | ||||||||||||||||||||
| 2022 | 2021 |
| Change | Change |
| 2022 |
| 2021 |
| Change | Change | |||||||||||
$ | $ |
| $ |
| % |
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| $ |
| $ |
| $ |
| % |
| ||||||||
Adjusted EBITDA | 630 | (1,953 | ) | 2,583 |
| (132.3 | ) % |
| (971 | ) | (6,437 | ) | 5,466 |
| 84.9 | % | |||||||
Working Capital | 177,258 | 183,540 |
| (6,282 | ) | (3.4 | ) % |
| 177,258 |
| 183,540 |
| (6,282 | ) | (3.4 | ) % | |||||||
Free Cash Flow | 624 | (1,038 | ) | 1,662 |
| (160.1 | ) % |
| (765 | ) | (4,223 | ) | 3,458 |
| 81.9 | % |
Conference Call
Management will host a conference call on Thursday, November 10, 2022 at 8:00 am ET to discuss these third quarter results. To access the conference call, please dial 416-764-8688 or 1-888-390-0546 or access the webcast at https://bit.ly/3uPlZzq. The unaudited condensed consolidated interim financial statements for the nine months ended September 30, 2022 and Management’s Discussion & Analysis for the same period have been filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Alternatively, these documents along with a presentation in connection with the conference call can be accessed online at https://investors.docebo.com.
An archived recording of the conference call will be available until November 17, 2022 and for 90 days on our website. To listen to the recording, please visit the webcast link or call 416-764-8677 or 1-888-390-0541 and enter passcode 510496.
Forward-looking Information
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information may relate to our future financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, the ongoing impact of COVID-19, the war in Ukraine and inflation, including actions of Central banks to contain it, on our business, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information.
In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects”, “is expected”, “an opportunity exists”, “budget”, “scheduled”, “estimates”, “outlook”, “forecasts”, “projection”, “prospects”, “strategy”, “intends”, “anticipates”, “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or, “will”, “occur” or “be achieved”, and similar words or the negative of these terms and similar terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances.
This forward-looking information includes, but is not limited to, statements regarding the Company’s business; future financial position and business strategy; the learning management industry; our growth rates and growth strategies; addressable markets for our solutions; the achievement of advances in and expansion of our platform; expectations regarding our revenue and the revenue generation potential of our platform and other products; our business plans and strategies; and our competitive position in our industry. This forward-looking information is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Certain assumptions include: our ability to build our market share and enter new markets and industry verticals; our ability to attract and retain key personnel; our ability to maintain and expand geographic scope; our ability to execute on our expansion plans; our ability to continue investing in infrastructure to support our growth; our ability to obtain and maintain existing financing on acceptable terms; our ability to execute on profitability initiatives; currency exchange and interest rates; the impact of inflation and global macroeconomic conditions; the impact of competition; the effectiveness of mitigation strategies undertaken with respect to COVID-19, and the severity, duration and impacts of COVID-19 on the economy and our business, which is highly uncertain and cannot reasonably be predicted; our ability to respond to the changes and trends in our industry or the global economy; and the changes in laws, rules, regulations, and global standards are material factors made in preparing forward-looking information and management’s expectations.
Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that, while considered by the Company to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to:
If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The opinions, estimates or assumptions referred to above and described in greater detail in the “Summary of Factors Affecting our Performance” section of our MD&A for the three and nine months ended September 30, 2022 and in the “Risk Factors” section of our AIF, should be considered carefully by prospective investors.
Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date specified herein, and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.
Additional information relating to Docebo, including our AIF, can be found on SEDAR at www.sedar.com.
About Docebo
Docebo is redefining the way enterprises leverage technology to create and manage content, deliver training, and understand the business impact of their learning experiences. With Docebo’s multi-product learning suite, enterprises around the world are equipped to tackle any learning challenge and create a true learning culture within their organization.
Results of Operations | |||||||||||
| The following table outlines our unaudited condensed consolidated interim statements of income (loss) and comprehensive loss for the following periods: | |||||||||||
| Three months ended September 30, |
| Nine months ended September 30, | ||||||||
(In thousands of US dollars, except per share data) | 2022 | 2021 |
| 2022 |
| 2021 | |||||
| $ |
| $ |
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| $ |
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| $ |
| |
Revenue | 36,966 |
| 27,068 |
|
| 103,957 |
|
| 74,441 |
| |
Cost of revenue | 7,140 |
| 5,683 |
|
| 20,671 |
|
| 14,699 |
| |
Gross profit | 29,826 |
| 21,385 |
|
| 83,286 |
|
| 59,742 |
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Operating expenses |
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General and administrative | 7,824 |
| 6,817 |
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| 22,796 |
|
| 21,178 |
| |
Sales and marketing | 15,523 |
| 11,142 |
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| 44,150 |
|
| 30,708 |
| |
Research and development | 6,105 |
| 5,481 |
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| 18,401 |
|
| 14,858 |
| |
Share-based compensation | 1,000 |
| 745 |
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| 3,624 |
|
| 1,662 |
| |
Foreign exchange (gain) loss | (10,213 | ) | (4,765 | ) |
| (11,676 | ) |
| 375 |
| |
Depreciation and amortization | 564 |
| 501 |
|
| 1,731 |
|
| 1,464 |
| |
| 20,803 |
| 19,921 |
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| 79,026 |
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| 70,245 |
| |
Operating income (loss) | 9,023 |
| 1,464 |
|
| 4,260 |
|
| (10,503 | ) | |
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Finance (income) expense, net | (1,325 | ) | 29 |
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| (1,677 | ) |
| 103 |
| |
Other income | (21 | ) | (21 | ) |
| (64 | ) |
| (64 | ) | |
Income (loss) before income taxes | 10,369 |
| 1,456 |
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| 6,001 |
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| (10,542 | ) | |
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Income tax expense | 95 |
| 795 |
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| 583 |
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| 1,631 |
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Net income (loss) for the period | 10,274 |
| 661 |
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| 5,418 |
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| (12,173 | ) | |
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Other comprehensive loss (income) |
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Item that may be reclassified subsequently to income: |
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Exchange loss (gain) on translation of foreign operations | 10,690 |
| 4,691 |
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| 12,633 |
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| (575 | ) | |
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Comprehensive loss | (416 | ) | (4,030 | ) |
| (7,215 | ) |
| (11,598 | ) | |
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(Loss) income per share - basic | 0.31 |
| 0.02 |
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| 0.16 |
|
| (0.37 | ) | |
(Loss) income per share - diluted | 0.30 |
| 0.02 |
|
| 0.16 |
|
| (0.37 | ) | |
Weighted average number of common shares outstanding - basic | 33,044,250 |
| 32,834,833 |
|
| 33,024,887 |
|
| 32,809,397 |
| |
Weighted average number of common shares outstanding - diluted | 34,069,688 |
| 34,122,772 |
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| 34,032,666 |
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| 32,809,397 |
|
Key Statement of Financial Position Information | ||||||||||
(In thousands of US dollars, except percentages) | September 30, 2022 | December 31, 2021 |
| Change | Change | |||||
| $ | $ |
| $ |
| % |
| |||
Cash and cash equivalents | 212,733 | 215,323 |
| (2,590 | ) | (1.2 | ) % | |||
Total assets | 270,666 | 268,123 |
| 2,543 |
| 0.9 | % | |||
Total liabilities | 82,177 | 77,467 |
| 4,710 |
| 6.1 | % | |||
Total long-term liabilities | 7,180 | 8,294 |
| (1,114 | ) | (13.4 | ) % |
Non-IFRS Measures and Reconciliation of Non-IFRS Measures
This press release makes reference to certain non-IFRS measures including key performance indicators used by management and typically used by our competitors in the software-as-a-service (“SaaS”) industry. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures are used to provide investors with alternative measures of our operating performance and liquidity and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including SaaS industry metrics, in the evaluation of companies in the SaaS industry. Management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation. The non-IFRS measures referred to in this press release include “Annual Recurring Revenue”, “Adjusted EBITDA”, “Average Contract Value”, “Working Capital” and “Free Cash Flow”.
Key Performance Indicators
We recognize subscription revenues ratably over the term of the subscription period under the provisions of our agreements with customers. The terms of our agreements, combined with high customer retention rates, provides us with a significant degree of visibility into our near-term revenues. Management uses a number of metrics, including the ones identified below, to measure the Company’s performance and customer trends, which are used to prepare financial plans and shape future strategy. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies.
Annual Recurring Revenue and Average Contract Value as at September 30 was as follows:
| 2022 | 2021 |
| Change | Change % | |||||
Annual Recurring Revenue (in millions of US dollars) | 144.6 | 103.5 |
| 41.1 | 39.7 | % | ||||
Average Contract Value (in thousands of US dollars) | 44.6 | 39.3 |
| 5.3 | 13.5 | % |
Adjusted EBITDA
Adjusted EBITDA is defined as net income (loss) excluding taxes (if applicable), net finance (income) expense, depreciation and amortization, loss on disposal of assets (if applicable), share-based compensation and related payroll taxes, foreign exchange gains and losses, acquisition related compensation and transaction related expenses.
The IFRS measure most directly comparable to Adjusted EBITDA presented in our financial statements is net income (loss).
The following table reconciles Adjusted EBITDA to net income (loss) for the periods indicated:
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| Three months ended September 30, |
| Nine months ended September 30, | ||||||||
(In thousands of US dollars) | 2022 |
| 2021 |
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| 2022 |
| 2021 |
| ||
| $ |
| $ |
|
| $ |
| $ |
| ||
Net income (loss) | 10,274 |
| 661 |
|
| 5,418 |
| (12,173 | ) | ||
Finance (income) expense, net (1) | (1,325 | ) | 29 |
|
| (1,677 | ) | 103 |
| ||
Depreciation and amortization (2) | 564 |
| 501 |
|
| 1,731 |
| 1,464 |
| ||
Income tax expense | 95 |
| 795 |
|
| 583 |
| 1,631 |
| ||
Share-based compensation (3) | 1,000 |
| 745 |
|
| 3,745 |
| 1,662 |
| ||
Other income (4) | (21 | ) | (21 | ) |
| (64 | ) | (64 | ) | ||
Foreign exchange (gain) loss (5) | (10,213 | ) | (4,765 | ) |
| (11,676 | ) | 375 |
| ||
Acquisition related compensation (6) | 256 |
| 102 |
|
| 868 |
| 306 |
| ||
Transaction related expenses (7) | — |
| — |
|
| 101 |
| 259 |
| ||
Adjusted EBITDA | 630 |
| (1,953 | ) |
| (971 | ) | (6,437 | ) |
Notes:
Working Capital
Working Capital as at September 30, 2022 and 2021 was $177.3 million and $183.5 million, respectively. Working Capital is defined as current assets, excluding the current portion of the net investment in finance lease and contract costs, minus current liabilities, excluding borrowings, if any, and the current portion of contingent consideration and lease obligations.
The following table represents the Company’s working capital position as at September 30, 2022 and 2021:
| 2022 | 2021 | ||
| $ | $ | ||
Current assets | 252,216 | 244,052 | ||
Deduct: |
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Current portion of net investment in finance lease | 172 | 82 | ||
Current portion of contract acquisition costs | 2,210 | 2,079 | ||
Current assets, net of net investment in finance lease and contract acquisition costs | 249,834 | 241,891 | ||
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Current liabilities | 74,997 | 60,136 | ||
Deduct: |
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Current portion of contingent consideration | 1,168 | 467 | ||
Current portion of lease obligations | 1,253 | 1,318 | ||
Borrowings | — | 0 | ||
Current liabilities, net of borrowings, contingent consideration and lease obligations | 72,576 | 58,351 | ||
Working capital | 177,258 | 183,540 |
Free Cash Flow
Free Cash Flow is defined as cash used in operating activities less additions to property and equipment and intangible assets. The IFRS measure most directly comparable to Free Cash Flow presented in our financial statements is cash flow used in operating activities. The following table reconciles our cash flow used in operating activities to Free Cash Flow:
| Three months ended September 30, |
| Nine months ended September 30, | ||||||
(In thousands of US dollars) | 2022 |
| 2021 |
|
| 2022 |
| 2021 |
|
| $ |
| $ |
|
| $ |
| $ |
|
Cash flow from (used in) operating activities | 975 |
| (411 | ) |
| 95 |
| (3,224 | ) |
Additions to property and equipment | (351 | ) | (627 | ) |
| (860 | ) | (999 | ) |
Free Cash Flow | 624 |
| (1,038 | ) |
| (765 | ) | (4,223 | ) |
View source version on businesswire.com:https://www.businesswire.com/news/home/20221110005261/en/
CONTACT: For further information, please contact:
Mike McCarthy
Vice President - Investor Relations
(214) 830-0641
mike.mccarthy@docebo.com
KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: TECHNOLOGY OTHER TECHNOLOGY SOFTWARE NETWORKS ARTIFICIAL INTELLIGENCE INTERNET
SOURCE: Docebo Inc.
Copyright Business Wire 2022.
PUB: 11/10/2022 06:30 AM/DISC: 11/10/2022 06:32 AM
http://www.businesswire.com/news/home/20221110005261/en