Docebo Reports Fourth Quarter and Fiscal Year 2023 Results

Docebo Inc., a leader in AI-driven learning platforms, announced its Q4 and fiscal year 2023 financial results, showcasing significant growth. With a 28% increase in subscription revenue to $46.5 million and a total revenue rise of 27% to $49.3 million for Q4, alongside a fiscal year subscription revenue boost of 29% to $169.8 million, Docebo demonstrates strong performance. Notably, net income and adjusted net income saw substantial improvements, highlighting efficient operations and profitability. The company’s ambitious 2024 product roadmap aims to further enhance the learning experience through AI integration, reflecting its commitment to innovation and customer satisfaction.

TORONTO, ONTARIO – February 23, 2024 – Docebo Inc. (NASDAQ: DCBO; TSX:DCBO) (“Docebo” or the “Company”), a leading learning platform provider with a foundation in artificial intelligence (AI) and innovation, announced financial results for the three months and fiscal year ended December 31, 2023. All amounts are expressed in US dollars unless otherwise stated.

“We are delighted to announce that our fourth quarter results surpassed our guidance for both revenue and profitability,” commented Claudio Erba, Founder and Chief Executive Officer. “As we look ahead to 2024, we have an ambitious product roadmap and remain focused on driving innovation into the learner experience by leveraging AI throughout our platform.”

Fourth Quarter 2023 Financial Highlights

• Subscription revenue of $46.5 million, represented 94% of total revenue, an increase of 28% from the comparative period in the prior
• Total revenue of $49.3 million, an increase of 27% from the comparative period in the prior
• Gross profit of $40.0 million, an increase of 27% from the comparative period in the prior year, or 81.2% of revenue, compared to 80.7% of revenue for the comparative period in the prior
• Net income of $3.2 million, or $0.10 per share, compared to net income of $1.6 million, or $0.05 per share for the comparative period in the prior
• Adjusted Net Income¹ of $8.3 million, or adjusted earnings per share of $0.26, compared to Adjusted Net Income of $3.4 million, or adjusted earnings per share of $0.10 for the comparative period in the prior year.

• Annual Recurring Revenue (“ARR”)¹ as of December 31, 2023 of $194.3 million, an increase of $37.2 million from $157.1 million as of December 31, 2022, an increase of 24% or 23% after adjusting for the positive impact of approximately 1 percentage point given the weakening of the U.S. dollar relative to foreign currencies.

• Adjusted EBITDA¹ of $6.5 million, representing 2% of total revenue, compared to Adjusted EBITDA of $2.3 million, representing 5.8% of total revenue, for the comparative period in the prior year.
• Cash flow from operating activities of $6.5 million, compared to $2.2 million for the comparative period in the prior year.
• Free Cash Flow¹ of $7.0 million, representing 14.2% of total revenue, compared to $2.0 million, representing 5.1% of total revenue, for the comparative period in the prior

Fiscal Year 2023 Financial Highlights

• Subscription revenue of $169.8 million, representing 94% of total revenue, and an increase of 29% from the comparative period in the prior
• Total revenue of $180.8 million, an increase of 27% from the comparative period in the prior
• Gross profit of $146.3 million, or 81% of
• Net income of $2.8 million, or $0.09 per share, compared to net income of $7.0 million, or $0.21 per share, for the comparative period in the prior
• Adjusted net income of $21.2 million, or adjusted earnings per share of $0.65, compared to adjusted net income of $2.3 million, or adjusted earnings per share of $0.07 for the comparative period in the prior
• Net Dollar Retention Rate¹ as at December 31, 2023 of 104% compared to 109% at December 31,
• Adjusted EBITDA¹ of $16.3 million, representing 9% of total revenue, compared to Adjusted EBITDA of $1.3 million, representing 1% of total revenue, for the comparative period in the prior
• Cash flow generated from operating activities of $16.0 million, compared to $2.3 million for the comparative period in the prior
• Free cash flow¹ of $20.1 million, representing 11% of total revenue, compared to $1.4 million, representing 1% of total revenue, for the comparative period in the prior
• Cash and cash equivalents of $72.0 million as at December 31, 2023 compared to $216.3 million as at December 31, 2022.

Fourth Quarter 2023 Business Highlights

• Docebo is now used by 3,759 customers, an increase from 3,394 customers at the end of December 31,
• Strong growth in Average Contract Value¹, calculated as total Annual Recurring Revenue divided by the number of active customers, from $46,288 as at December 31, 2022 to $51,689 as at December 31,
• Notable new customer wins in the quarter include a significant deal with a Big 4 US-based bank operating globally using Docebo to move their learning platform to the cloud for a variety of internal use cases including Customer Support, Professional Services and Engineering Enablement, Onboarding, and Compliance
• Special Olympics provides year-round sports training and athletic competition in a variety of Olympic-type sports for children and adults with intellectual disabilities, giving them continuing opportunities to develop physical fitness, demonstrate courage, experience joy, and participate in a sharing of gifts, skills and friendship with their families, other Special Olympics athletes, and the The organization serves more than 4 million athletes and Unified Sports® partners in more than 170 countries through programming in sports, health, education, and leadership. Docebo will address several external use case requirements for Special Olympics including continuing education management.
• Major League Baseball (MLB) and the MLB Players Association have chosen Docebo as a learning solution platform to train players on a variety of topics that will help them lead more healthy and productive lives on and off the
• Pirelli, founded in Milan in 1872 is one of the world’s leading manufacturers of high-performance tires. Their brand is known globally for its cutting-edge technology, high-end production excellence and passion for Pirelli chose to partner with Docebo to address their partner learning requirements.
• Founded in 1960 by Valentino Garavani and Giancarlo Giammetti, Maison Valentino has established itself as a landmark of Made in Italy on the international With its signature DNA, it is the most established Italian Maison de Couture with collections in Couture, Prêt-à-porter, Bags, Shoes, and Accessories, as well as with licensed partners in Valentino Eyewear and Valentino Beauty. The company selected Docebo to support its external use case training requirements in areas that include customer and partner education, memberships, and retail & franchisee training.
• Texas County District and Retirement System chose Docebo for its onboarding and professional development use case needs.
• The Big 5 US-based technology company that signed in August 2023 is expanding their use of the Docebo platform to support their multiple use case needs, including training for a large external
• Bojangles is a North Carolina-born restaurant chain known for its scratch-made Southern food served at approximately 800 locations. Since implementing Docebo earlier in 2023, Bojangles has expanded its use of the platform for training franchisees.
• Stanley Black & Decker is a global leader in tools and outdoor operating manufacturing facilities worldwide. The company’s iconic brands include DEWALT®, BLACK+DECKER®, CRAFTSMAN®, STANLEY®, CUB CADET® and HUSTLER®. During the quarter, the company expanded the scope of its external use case of the Docebo platform being used to support both customer and brand

¹ Please refer to “Non-IFRS Measures and Reconciliation of Non-IFRS Measures” section of this press release.

Fourth Quarter and Fiscal Year 2023 Results

Financial Outlook

 Docebo is providing financial guidance for the three months ended March 31, 2024 as follows:

• Total revenue between $51.0 and $51.3 million
• Gross profit margin between 81.0% and 5%
• Adjusted EBITDA as a percentage of total revenue between 12.5% to 5%

The information in this section is forward-looking. Please see the sections entitled “Non-IFRS Measures and Reconciliation of Non-IFRS Measures” and “Key Performance Indicators” in this press release for how we define “Adjusted EBITDA” and the section entitled “Forward-Looking Information.” A reconciliation of forward-looking “Adjusted EBITDA” to the most directly comparable IFRS measure is not available without unreasonable effort, as certain items cannot be reasonably predicted because of their high variability, complexity and low visibility. Docebo believes that this type of guidance provides useful insight into the anticipated performance of its business.

Conference Call

 Management will host a conference call on Friday, February 23, 2024 at 8:00 am ET to discuss these fourth quarter and fiscal year results. To access the conference call, please dial +1.646.960.0169 or +1-888-440-6849 or access the webcast at

https://docebo.inc/events-and-presentations/default.aspx. The consolidated financial statements for the fiscal year ended December 31, 2023 and Management’s Discussion & Analysis for the same period have been filed on SEDAR+ at www.sedarplus.ca 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 March 1, 2024 and for 90 days on our website. To listen to the recording, please visit the webcast link which can be found on Docebo’s investor relations website at https://docebo.inc/events-and-presentations/default.aspx or call +1.647.362.9199 or 1-800-770-2030 and enter passcode 8722408#.

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.

 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 in this press release includes, but is not limited to, statements regarding the Company’s business; the guidance for the three months ended March 31, 2024 in respect of total revenue, gross profit margin and Adjusted EBITDA as a percentage of total revenue discussed under “Financial Outlook” in this press release; our 2024 product roadmap; the expanded use of AI across our platform; 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; 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:

• the Company’s ability to execute its growth strategies;
• the impact of changing conditions in the global corporate e-learning market;
• increasing competition in the global corporate e-learning market in which the Company operates;
• fluctuations in currency exchange rates and volatility in financial markets;
• changes in the attitudes, financial condition and demand of our target market;
• the Company’s ability to operate its business and effectively manage its growth under evolving macroeconomic conditions, such as high inflation and recessionary environments;
• developments and changes in applicable laws and regulations;
• fluctuations in the length and complexity of the sales cycle for our platform, especially for sales to larger enterprises;
• issues in the use of AI in our platform may result in reputational harm or liability;
• such other factors discussed in greater detail under the “Risk Factors” section of our Annual Information Form dated February 22, 2024 (“AIF”), which is available under our profile on SEDAR+ at sedar.com.

 Our guidance for the three months ended March 31, 2024 in respect of total revenue, gross profit margin, and Adjusted EBITDA as a percentage of total revenue is subject to certain assumptions and associated risks as stated under “Forward-Looking Statements,” and in particular the following:

• our ability to win business from new customers and expand business from existing customers;
• the timing of new customer wins and expansion decisions by our existing customers;
• maintaining our customer retention levels, and specifically, that customers will renew contractual commitments on a periodic basis as those commitments come up for renewal, at rates consistent with our historical experience; and
• with respect to gross profit margin and Adjusted EBITDA as a percentage of revenue, our ability to contain expense levels while expanding our

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 months and fiscal year ended December 31, 2023 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 measure the business impact of their learning programs. With Docebo’s end-to-end learning platform, organizations worldwide are equipped to deliver scaled, personalized learning across all their audiences and use cases, driving growth and powering their business.

source: https://s24.q4cdn.com/246292444/files/doc_financials/2023/q4/DCBO-IR-Deck-February-2024-FINAL.pdf