Docebo Q4 Revenue Grows 59%, Loss Widens

Docebo (TSE: DCBO) (NASDAQ: DCBO), a cloud-based, SaaS enterprise learning management system, reported strong revenue growth for the fourth quarter of 2021, but it incurred a higher loss than in the prior quarter.

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Revenue & Earnings

Revenue increased 59% to $29.8 million over the previous quarter. Subscription revenue came in at $27.5 million, or 92% of total revenue, a 64% increase quarter-over-quarter.

Net loss was $1.4 million (-$0.04 per share) down from a net loss of $4.1 million (-$0.14 per share) in Q4 2020.

Adjusted EBITDA loss amounted to $1.5 million in the quarter compared to a positive adjusted EBITDA of $0.1 million a year ago.

Docebo reported negative free cash flow of $0.2 million in Q4 2021, compared to positive cash flow of $6.6 million in Q4 2020.

Docebo is now used by 2,805 customers, up from 2,179 as of December 31, 2021.

CEO Commentary

Docebo CEO and founder Claudio Erba said, “The strong momentum that we have experienced throughout 2021 continued in the fourth quarter as we delivered another record quarter of new logo sales adding $14.2 million in net annual recurring revenue. The consistency of our growth both during the pandemic and the years prior to it, reflect the strength of our organic growth engine, which is led by best in class product and backed by strong sales execution, customer success and support. We believe the long-term tailwinds for our industry persist as companies invest in Docebo to better educate their customers and partners while also improving learning and knowledge retention within their organizations at a time when investing in retention, engagement and skills development has never been more critical.”

Q4 Partnerships

In the quarter, Docebo signed a new customer contract with SolarEdge, a global leader in smart energy technologies. SolarEdge will use Docebo for employee and customer training.

The tech company also signed a new customer contract with ManpowerGroup, a global leader in innovative workforce solutions.

Wall Street’s Take

Following the results, Canaccord Genuity Robert Young kept a Buy rating on DCBO and lowered its price target to C$83.08. This implies 57.1% upside potential.

Overall, consensus on the Street is that DCBO is a Strong Buy based on three Buys. The average Docebo price target of C$92.37 implies 74.7% upside potential to current levels.

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