DCBO - Earnings call transcript Q2 2021

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Operator

Good morning, everyone and welcome to the Docebo, Inc.

Second Quarter 2021 Earnings Call. All participants are currently in a listen-only mode.

Following the presentation, we will open the lines for Q&A session for analysts. [Operator Instructions]. to Fong. call like Investor to now Dennis Relations, would turn over the Docebo's I ahead, go Please Dennis.

Dennis Fong

Operator. you, Thank

Before forward-looking we risks, to Such those begin, certain Docebo information actual respect would like to results Any events. assumptions statements. today the views in such forward-looking projected that to reflects cause future information subject remind from maybe in and information differ nature. to materially forward-looking is company's the with uncertainties discussed listeners that could

risks, uncertainties please the assumptions relating public For which statements on more on and to forward-looking EDGAR. refer filings, information Docebo's to SEDAR are available and

During the we reference measures. certain non-IFRS call, will financial

meanings Although that any for additional reconciliations useful non-IFRS measures. are under supplemental see including we our performance, information provide Please IFRS in financial note and they measures, stated, financial measures references not figures financial that otherwise believe information recognized regarding dollars. about standardized do our IFRS. to MD&A these to Please U.S. for nearest all our measures unless are the have not

would Now to CEO, over Docebo's turn call the Erba. to Claudio like I

Claudio Erba

and momentum growth. the Artuffo, our strong second ARR quarter thank Chief everyone Kidson, we With second Chief on Ian joining This consecutive and today for XXXX began and and earnings morning Good call. our that first accelerate, through second the me in resulting Officer. Officer record Financial our quarter, our is us demonstrated President fact, Alessio quarter quarter continued in to and in you of revenue Revenue

more will employees, to these our a trend future statements a digital for expect In and six of new the around designed have be in the business pandemic base learner from traditional With of Docebo adjusting recovering and online new also use enablement wide training create user service We're sector are in experiences. growing that over their LMS, specifically leading has accelerating demonstrated the sales across contribute cases. to RE/MAX selected not quarter, that strategic dashboard for adoption getting growth to compliance, and and net is as tools able with to the that us upskilling and Docebo, continue we're Further, train and months. normal customer adoption, to to believe potential strengthen learning ACV. clearly pandemic. for and more RE/MAX of success. recover investing the second need learning verticals exemplify custom customers using enablement platform seeing for in for use comprehensive to two RE/MAX, second enterprises example Docebo organizations including in customers, across apparel like the many last short-term quarter, global Docebo traction like the became we reverse for solution a Unlike world's the the our a athletic partners platform internal the has rapidly engage to a will is are increase our these also and long-term Docebo from relationship will market tool that past we out employees our ours selected productivity industry we XXX our address travel, the our impactful we through tool solution truth range years, great retail, of and been performance and aware fundamental Docebo MHR ACV as continue exists. the learning that great globe. soft industry added and stated we training. In grow some been total One to customer and manufacturing. size once as The logos from create cases, and the estate franchisor. skills the Lululemon, a For is requirements that consistently as reasons environment use that These significantly rate pick-up expand like to The importantly, retailer, addressable user management their provide real differentiator user leading a verticals. new are in

across quarter, consolidate deliver ongoing They U.S. quarter to XX about talked a AI which started the the Learning the as Impact is Docebo offering learning also more now Learning Docebo the XXX the logos last it manufacture launched and Shape powered award global sign-on With countries. in Suite transitioning a trial. tools and to we learning selling entire for out [ph] milestone and of learning, three properties manufacturer we're Japan. and industry, simple spending allocate allows enhance training, the the Docebo like Brazil, microlearning free employs distribution XX,XXX leader locations Roof our U.S., in content the showroom customer in suite development. process, automated and and We and the Shape, Red hours tool we At JELD-WEN, the for end of to of you Most building systems is more excessive of of winning of organization added Red that Roof important selected their travel the people selling as content, trial new and Roof Roof Red an than lodging recall resources phase added of Docebo Inn. including leading select Docebo industry, Red customers. first an versus and experience. instruction-led and their combination of launch to us. has interior managing delivery JELD-WEN high-performance professional platform. to of approximately worldwide we products. mobile development exterior reporting to a was more, the in will Docebo its We and accessibility, content with

happy already even to product third of share some the ahead the In am by licenses very the We're I to Docebo Learning also official will we of launch the Suite of products, addition, but releases. Docebo have launch of recent still the to early begin each Analytics, most end our quarter. that sell with of threshold

and pleased Although, the traction not with expected material so is able contributor customers. we Impact quarters, sign for be we new far are to Learning were several a to several

new those to Docebo who internal launching expanding be an agreement Docebo since After upsell platform partner customer great Learning with of has include their XXXX. training SkinCeutical customer to clients, success Impact. and been will One team, finding their network, was SkinCeutical distribution global their to

sold the and of Docebo are effectiveness leading energies programs, to Impact. Docebo standalone and designed company be learning TotalEnergies, integrated a new French with LMS Learning oil, as Our learning In to our the gas product. with or second new selected their a quarter, suite integrated product multinational improve help measure both

a We case companies also are learning working It select one French as another LMS. in one testament of alongside of happy have operations. to new products a to expanding the in our suite serves largest our use Europe

growing of and reach world accelerate experts network new while to our on requests partner customers to around allows Docebo also to centralized Community. find advance collaborate customer is is market and product experience, It to that The also business share May, for most the base of beginning their partnerships have best demonstrates customer are practice, prioritize and up second the partners broader more porter the development the the market. get than all board place get our new with of growing connect our just team of spoke those grow. partner customer come Docebo added that and career customer skill this breadth different four options. last as to experience. as the enterprise and And opening OEM is to to Community Docebo potential have our we pleased in the quarter, out are inspirations based the geographic HCM pockets we investing we products, opportunity on we there feedback. we world. leveling answers, expand their were enabled Since Docebo other the our With In launch of to to

and programs ecosystem. are partners with only South network. Workspan, service strategy We in our maximize enterprise These for training. with learning South new business develop manage services, and in management in And the unique is KOLABORI organization in allow and to Docebo expansion expertise partner and service thousands is leading technology seamlessly global of under a service and We far -- the local by KOLABORI software what base. an that an technology with signed technology the them top to Workspan to helps us. Docebo solution Workspan that and global America for develop of to an IT America. based OEM This customer a Brazil continue not be signed to We multinational will their the their companies to LMS. agent partner learning offered makes partnership management corporate the agreement platform working consulting the new then in market market-leading a new offer equal market for Brazil agreement largest embeds a value allowing of the partner partners, firm

it, with in an that of agreement OEMs the enterprise that consulting We OEM HR universal. in X,XXX have to are the also proving OEM the signed now with opportunity and offices OrchestrateHR, states. are environment then in an XX and technology and customers company HR partnership over more technology that learning is embed We space outside

XX programs into in the of Valdez at were we establish week, spent helping pleased training the of AWS, function Amazon, our approaches. Chief be the appointment the educate Martino reflected quarter at certification AWS XXX cloud This transformational year Bagini customer our leader their and years. Rudy help build something consistency And to closely With in our but to growth. to to and AWS, great helped to we we where revenue investment for he Development not millions as past talented new recently, Lastly, development organization. cloud get Rudy Docebo our will role the with to business on customer XX%. being and appointment than people at move phase technologies in the XX and led over our continue rapid to we last our year, growth is of critical by this to months. think experienced I paramount increasing and it organic been the Today, third adding more success. our we growth since such growth. are we about the next is want has next to better we over the Corporate And expect to announce transformational foundation COO. is we phase AWS newly position Rudy parallel we development of Officer. and through able Managing headcount the making of the the are increased Last ecosystem the working over have largest of have for and he years growth past we change this speak appointment set next phase Hiring their is of More have results. easy, of accommodate people by

Before on Martino this grow greater to put joining us and factor And but executing as had will a our advancing Venture Docebo, M&A another Docebo. in background strategy of emphasis allow focus Capital.

that I positive topic pass and to the that is want I customers touch and is call global We Before our company we employees a responsibility very a our on board, a that important to as ESG. make understand impact to on Ian, and to technology touch. our to me

number have place. a of programs We in

our Docebo announced two the employees to tomorrow. that to the success. official Congress but work this reflect employees and and build it impact, a about to gender better renewable to of external and well-being its day inclusion June and and technology. that our can encourage We to critical historic We reduce transitional gap we of For six is of future to our learn have and organizations number in holiday so energy. a example, historic on for year discussion milestone take XXth is offices about more diversity an past, XXX% the This before made the health care our promote support our

destination beyond HR culture have well this career our make requirement. want choice policies We Many of family statutory a focused for to growth. of and extend and Docebo employees

to pass practices speak into we This an our XXX% consultant advise embed to And and at For supplemental leave you the U.S. world. example, leave Ian understand board, have about weeks. experienced rest to at of employees, for more we formally up to the paternity have the of in on under and for wages provide care impact the future. engaged for we and on pay reporting gross now gross and the XX our including ESG business. employees to wages up to We of year to our to that, the the weeks, XX will forward stakeholders, help the call ESG with for we benefits With maternity that on best achievement direction customers, I our investor, look XX% financials. our

Ian Kidson

Claudio, you, good Thank and everyone. morning,

breakdown XX, call For those filed three deck and available earnings release Investor our on website detailed in available financial in XXXX, MD&A The this website now and months this have Relations the press our on our also statements, morning. be interested financial can results and six for made accompanying our of SEDAR found which EDGAR. on ended June slide and are are

For the revenue those momentum year, prior increase revenue of an revenue even an was the who that along, Services from and growing my $XX.X over prior our grew the to X. nicely from Subscription Slide second for $XX.X The for million, representing remarks the also start follow were first with carried total going to total the quarter second I'm increase strong million, XX% of in into million, we to year quarter want demonstrated the period from prior year. period. Professional XX% the in of quarter quarter. $X XX% revenues XX% on

we unusual IFRS begin accounting such This from until one-time with a release, catch-up situation press results quarter. related did signed an this not to we quarter's have in XXXX. other As this included currently customer was do $X.X that revenue agreements. a rules revenue our contract allow of in not this million contract any resulting to us formally recognizing noted

$XX.X achieve we very look year, growth over rate signs this momentum growth pleased business over you support revenue as quarter, at second over an of in second The that million ARR the $X.X increase. and catch-up added and $XX the of million quarter in the we ARR million XX% the of all the apparent, of quarter, XXXX, our XX% in the to We continued of the of first $XX.X our first ARRs in in at end Furthermore, ARR -- recent becomes quarterly net Excluding confidence foreseeable the consider XXXX. compared most the end we in the quarter. as ARR in from the shown acceleration sorry our amount, future. forward, this quarter Slide with were increase in When when in on an were increase added our prior revenue X. million the

the their of now it new contract quarter, the from driving of XX% from The our quarter upsell growing learning our were customers of growth that ARR our quarter. the added end the supports over $XX,XXX of there internal XX% our $XX,XXX and the or departmental ACV second year increased approximately had up this second and of Docebo no average there nearly both ACV deals. at XXXX. customers contracts contention of quarter $XX,XXX, deals companywide value to logo and the and are was this a approximately new And awareness platform Importantly, large end past X,XXX external the to is applicability objectives. We at multiyear

unrealized. due see to flat to XX% slight XX% for decline prior profit sales expenses a Total $XX.X for the remain margin as of expense on second $X.X excluding profit balance a year that costs costs team levels to this as investments to of primarily in side. increased comfortable relates become within compared for of quarter Operating make targets first of adapt loss gross the as to the were with million quarter we margin expense well to the increased as When to those continued the to we the this as first a sheet volume slightly in as of a staffing to seller XX% that have year. operating was significant second for for multi-product to implementation expense our XX% cash the expense reported to compared the in to at gross operating percentage quarters. and quarter. the back to being XX.X% first of as most exchange from a Slide R&D first therefore period the foreign increased and to part to first foreign is as percentage The XX% quarter, XX.X% to XX.X% Moving margin marketing for and percentage to the the loss and the our million arrangements. the the quarter sales than being and second for the to $XX.X get on see the expect the to able related is a support Included exchange we expenses quarter. X, $XX.X revenue basis quarter declined benefits you to on revenue from a second gross for G&A next of prior new range, million $XX.X the year. was revenue the XX.X% was resumed in for first the million $X.X complexity as quarter. the a decline revenue vendor we million can two comparable I million, $XX.X over X, slightly of million of summary Slide scale On in as $XX.X declined increased three we million lines. quarter realize you compared operating can in compared longer-term that compared higher to our quarter

percentage And revenue. our our near We to a to of million compared of loss for Our to the year adjusted in loss medium-term R&D total of of marketing as quarter an million EBITDA XX% prior sales reported expectations unchanged second of $X remain for continue and expenditures at revenue $X.X expectations expense a remains XX% the XX%. period.

the million a second for loss the prior quarter, reported $X.X a of loss for also period. million net compared $X.X year We net to

reflect the loss. recall for please does net noted, exchange second million the that foreign $X.X the already quarter loss As

negative margin cash million in the quarter. and $X.X of cash And million. equivalent was flow second with balance sheet our cash remains healthy Finally, free net $XXX

be our continue realize drive our scale. where from benefits growth, but the we're finally we greater to expect to primary our Going point forward, to to begin focus to will getting

seeing third take that to on in will strong the ARR quarter same the and reiterate pipeline the the don't our to the likely XXXX. about sales and has our want as been momentum will At enter fourth next for I in performance year We later breather we near in see resume would our start plans quarter, a anything changed. hiring expansion we've in materially time, we in reflecting medium-term, as hiring thinking but our I suggest our

We have tracking multiple revenue. including sales, expect to likely next, logo the upsells In take QX and information quarter share analysts. OEM growth products to more levers well, to some the all quarters doing new to are the that questions partnership turn coming or from our and have this year new we first progress that, over forward we specific now and of With to look so. operator will on I'll it the cross-sells the

Operator

gentlemen, and Instructions]. Ladies will [Operator now session. you. we begin question-and-answer Thank the

comes Canaccord. with Your Young go first from Please ahead. Robert question

Robert Young

morning. the in number impressive no there's to quarter. logos, It's of RE/MAX. that and but large statement deals Hi, you and dig good into quarter, a your wanted I a doubles announced Lululemon singles

of statement you're What the trying pace a just on ARR, able to into sort I mean? And the any to to understand influence -- does of large these deals add there more? is of way incremental Because each is. that think quarter, so to what deal I'm just large a important it's little dig

So detail there any would be other helpful?

Claudio Erba

me Robert, Erba. Claudio speaking? It's Can Yes. you hear me? Claudio you can hear

Robert Young

Yes.

Claudio Erba

to Yes. again. meet Great

quarter define all the sweet -- there I of the term our quarter the and perspective, we in outliers, which organic section. to not So it's from it's the healthy size, efforts because the to that a continuously consistently. Ian to not this like are spot. deal proving very And it's and I growing logo, that leave the detail of of in size logo, are quarter, framework These logos

Ian Kidson

Sure.

it we was which like contract were didn't outlier, we this like of that is a quarter me $X.X that think wrong that's for Alessio, an I of And that hundreds a than of about Claudio a was So or anything Rob, fairway down four the I'm correct plus. million. I that -- contract $X middle the when had I million four, have larger if about think said, but in dollars, five us. as thousands think right And

of kind the that's to that So transactions love we do.

Robert Young

helpful. then really And -- Okay. That's

Alessio Artuffo

Agree.

Robert Young

users Alessio. And the any -- about into a then QX after like the me. you've XX,XXX the deals of that deal the larger of Does like the quarter? large release talked seems out end that fall in anything fall RE/MAX Thanks, to do was quarter with

Ian Kidson

say when What not fall -- you sure. -- I'm -- you

Robert Young

would Like QX? -- the QX would anything than been anything be the have ARR driving in rather

Ian Kidson

talked about No. transactions in QX. been have we've No. signed Any that

Robert Young

-- another And Okay. maybe

Ian Kidson

Sorry.

Sorry. QX, QX.

Robert Young

Correct.

And of just deals slower half a so do the large for you QX, quarter year in expect deal? larger back the is

Ian Kidson

-- I'll say But focused it I what three word, it always we hate six when right. characterize me close, business, mean, the health try significant. give but of you but transactions, our months can Alessio we're we on year pass this large are If -- to as years obviously take those or because are they well, on or months to at the transactions, to ends. would why let smaller working to look, look two that's I And to I

Alessio Artuffo

Yes.

bit a I of Rob, people one healthy what big when marketing low term it's second. define of the -- one like this then performance itself for quarter for low sales second want contract $X the me that little XX know machine million. quarter. but that to me that I quarter, finally you million. more is it's Then $X sign is approving together and to one back the organization machine contracts push in healthy Rob, Sorry, and initial checks,

outliers. forecast on your growth cannot You

forecast You consistency. performance to on and grow to need your that

using you it as I'm low this that quarter. mean something percent, to are performance I So to grid our XX quarter very define happy so

Robert Young

great -- all That's Okay. figure. great

Ian Kidson

every actually this about we're spoke Hey each a multiple Rob, and segment and times. happy about for numbers just to really at We second, this level. the seal

business our customers, customers. and for customers the and the looking are size smaller in large the We're them. of long-term customers with of We're upfront. in building at long-term a the business, our experience. in the medium value. up-selling and sized customer We not a doing We're scale big and in necessarily and business of We're the medium of of large market business relationship

happy relationships dollars a down rather totally on bang the then and hundred we're few is big over with realize growing than immediately, later say thousand value starting So the time. in having millions, with and which harder to starting

Robert Young

second Okay. components. Thanks. large would expansion of last driven the good. all sounds quarter That's customers It to really question Maybe just one be by like with existing related expansion seem to the more balanced, the be deal QSR. that's

And existing to that and with around positive pass I'll the getting so there highlight is balanced, line. growth then there is trend customers more

Claudio Erba

and about Impact the we're good according we're will to of there to pipeline only and out sales the now early that about new do Learning are suite. really work introduction but had. to time, to customers management was that and focused stage is on really on change There's started deny Docebo very is for that is sure. not plan, according but philosophy are what's very for supporting getting lot our the a all machine it. excited the to excited There I our a positive design and but not It we is structuring and very, balanced of you. do our early for this days analytics, creating learning to strategy, It's takes results the and shipping of selling selling signals long-lasting LMS product it value we're about very,

Operator

from comes Stephanie question with ahead. go next Price Please Your CIBC.

Stephanie Price

little into Hi, a more OEM good dig morning. I strategy want here. the to bit

agreements a similar us Ceridian ramp was you with you're seeing saw update if OEM once you to on MHR, an implemented. curious up what give whether Just the can and it

Claudio Erba

integration that to the time constitute partners in are productivity as you. others really mentioned to for better business I quite is have and Ceridian Orchestrate release, sure categories. larger The us. But Hi, longest that plan Ceridian, add you technology I'm following in that silent we back in question relevant seen and products that MHR results going that and capabilities And Stephanie, you way as majority are adding the of their And hope lobe. continue get Not are believe powerful Stephanie. good it OEM continue strong. accelerated the HR being MHR we use our and two according to seen the ones and the which we we're result of answers these very new the create this companies Workspan we a is the good also active like results, all value channel with have integrator the Ceridian Ceridian, going the also and a established MHR. expect incremental a our are press sure for We than the a relationships strategy partners the expensed. of firms. shape the that to the consistently pace. point, about longer will have At and system believe MHR for we only to Those guys of mix The OEM be that table different for at managed practice. and enablement morning to revenue. to performance an the with services like

Stephanie Price

It see rolling you a space out do outside going sounds and of that, strategy integrators that follow-up around And kind you're the IT like It focused, forward? systems on. just areas services how HR focused Thank are of you. and the kind that to maybe what curious does. just of

Claudio Erba

Yes, a different approach can a markets territories all of industries really We we in vendors yes. We're are actively. this that business proposition these interest accomplish seen and not and in on terms in value markets OEM of to risk. vision their lot have on actually that products. HR in industry. working the space. need these SI other We've mind, where increased the we view depending seen respective With interest like their with we've And a what in

the as that future, helping the is example, and as segments there. to be we're are And there able to more what and think future Workspan partners. I you For leverage seeing -- in Vartopia, industries and if business signed more, in mature those believe we'll industries of really categories clear even we the traction. will, companies, bright we've really be We are

Operator

Financial. question next go Tse from National comes with Richard Bank ahead. Your Please with

Richard Tse

you. Thank Yes.

So wins wins. bit they color here, here? some just terms displacements of get really wondering a else impressive in us competitive these had or something maybe of you Are

Claudio Erba

you it? take are Alessio, to going

Alessio Artuffo

the displacement that from win sure. see really for thank there prevalent. in are past Look, are three somebody Sure, essentially we on replacement. you we business we've said And question more the that when categories

The Tier would suite light first in These the learning customer one or vendors are of with usually outgrown experience certain earlier X; time. replacement solutions. I the within platform. of are a amount the learning stages They are is say LMS those perhaps that point of from

on have focus And enterprise better speak this It's software and This competitors. not OpenSource the mid-size are flexible. from software -- certain these companies. other the and we category Customers in learning is that for mean, on better second learning that The the that to of for see In we're that and perhaps for broadly they're homegrown enterprises talent we for business solutions. industries with looking That's smaller the reality. looking a market, more Docebo. true and companies I at or category displacing top on more that we're speaking see probably just value believe more mid-market. software and that learning. Oftentimes or to looking is is generally winning customer used displace in customization the we experience, artifacts in SharePoint they're focus enterprise

Richard Tse

partnerships Okay. increase the partnerships, Board like terms helpful. and And the a notable Super across SI in in there's OEMs. then Thanks. of

until you've meaningful those this of it that growth you've up to without look going the up now, given -- partnerships. fair sort out So function the growth from we're Is had partnerships? say now in rate actually see profile months of of to accelerating scale terms up as XX step a and that maybe we because

Claudio Erba

speaking. Claudio So

will this don't the I own think, Docebo, we the will correct saying that when more at future. happen. I statement it's partner bring value I more a mean, in partners the know

hope point size with nine-months efficiency be I XX based will partner have don't but know market an the some other some different is with can extremely of or the benchmark months. on successful, partners. that than partners perform on We another better sector, will And every Ceridian it partnership, of up HR in the that and we

that only. also is are what solution of use the continuously support first the the technology partner, are every makes not of like, -- way. more evolving in our implement the we And we in one So XXXX, than we partners. partner you if happy six, the have me and And case the we partner now new the same had feeding because for five, number in to pipeline seven earnings new remember, said the call, XXXX, absolute partner, or same

speaking go start I sorry, about when for answer. to product, about that so despite And I hope you the the happier and I will nerve, so make

Operator

next Your question from Please ahead. Daniel go comes TD. with Chan

Daniel Chan

the into dig I strong quarter. the good to Congrats morning. want Hi, -- on

Claudio Erba

Thanks, Chan.

Daniel Chan

got just of channel number I channel you presence. you've closed partners out different Ceridian partner address want dig as builds acquisition to Ascender global well. now into And March, opportunities. And the their which really in to help Asia-Pac of their a

there So be strategy can currently And that, global expansion you for going on in? whether still on us not these an your partners maybe to update to your into product then of is give some to some you're new is? addition leaning what ready is done? these markets? geographies you're of be in these work you to help And Or get

Claudio Erba

Nordics, geography. So in in is opening office. we backyard be know, of Germany, -- There Germany there you will which office with are And my as real is a in terms direct an fruit that to or way their New are low can challenges communication and and it. There are hanging is our western in digest Those and There Germans backyard. there are say Italy would markets They are friendly is style. markets company that are communicate. the Australia Zealand. marketing

Zealand, in know and New Nordics it's easy expand as other Germany, partners priorities. top in What to are New our directly geography, works reseller call guys deals require lot these and through a if strategy So lot we this probably prioritize of value-added when what is Asia-Pacific. is have or try area the you Zealand, to the are penetrate is a a a the consequence, probably Australia And us. in Australia, order to some from networking, office, -- to they market, very world in we well local of setup COVID of and to for with where

For mentioned, different sure, We one the right are pagination, like because that the XX also, in British capability Ireland. non-western from characters since that probably Chinese it's one region like opened local that we support lot work countries not XX support that to our Docebo center Ceridian been we Arabic, all think we center regions can do support years in also unit. recent a are that especially support And a partners, in And that data a Canada. I to left do support are have a the company basically vendor. the have is in have languages, country. can forget when act like -- we data now AWS, we we And specific Brexit has cloud

So basically, the point. data. center you be mean, an kind you the and compare the from also usually UK perspective, an are can thanks to with with AWS have underestimated a the we is which data we in I But technology not UK, privacy if with the partnership compliant friendly data

capacity be data to I the So and -- from ready, but more and chance communicate? our have We'll are are we to we that think pragmatic, successful. feeling are What prioritize. we we also countries want to

Daniel Chan

you. good more Thank to that combination also modules, That's by growth. on dig the I that mostly driven being want Thank very new of is metric that seats to, a was helpful. in you. the mean, or really a two. I ACV

Ian Kidson

It's.

that? you Alessio to Sorry, do want take

Alessio Artuffo

Sure.

Ian Kidson

seats. ARR a not larger is I And like It's cases today, that's by driven say use really, the driving being annual of and in more would it. the XX% larger combination of -- future And contracts. it's in embedded

proportion support hope saw Going And going quarter would this what that we that upsells certainly are that. a of forward, to larger obviously contribute we that view.

Operator

Your Capital. go Please next question comes from Phillip Leytes Berenberg ahead. with

Phillip Leytes

for my Hey guys, thanks taking questions.

on would you M&A of the us or targets sounds a that remarks, Can kind of bigger of give assets based forward. like going company interest? your it strategy what your on prepared you color some become M&A would part hinted maybe be for Just

Claudio Erba

speaking. Claudio Yes.

don't you If want mantra, is mistakes. make know I my my to mantra

can Bagini and optimistic Martino, fact in that who worked now as capital opportunities. XXX% Development. ground, with So other is know fact a for XX the Corporate that now he the the that years each that venture we on has the me COO, makes that least at me focus he The fact that

-- we more on opportunity every pursue will will we customized -- we We to or lands have a to our proactively. assess desk capability that want

without will acquired different specific There opportunities from market there we geography expand see. are to inefficient local everything to to an the need deploy hurry way. or the into out Let's to vendors evaluate adjacent and capital the in

HR all HR makes successful not in the don't we've team the the above finance IT, the one. our deploy before another people of seen that ecosystem mine. integration will a That we first capital the mistakes. if team, investment That shareholders. table. as will team, want was not we great return what make it's have is of We my, matrix our said services, the together the HR team, optimistic of optimistic expectation next in first the operation, sure level me there team, our our and to working acquisition a our integration will The only products. a at that I integrate tremendous makes company be culture my of the not upside executed for are as first recognition This said me that sales hope hurry. to be inside professional We I are When

Operator

with Bank. Please Nick comes Your next Laurentian question Agostino from go ahead.

Salman Zia Rana

afternoon afternoon, is Nick good on This Claudio. good Agostino. behalf Yes. Salman and Good morning, of and

So questions my a end. from few

all, it's the prospects you thereby because learning Have that competition to be seen about the landscape. any strong markets e-learning strong seem high to returning space, changes signifies again, some Does public lately, First citing the competitive competitors in of and ahead. growth space?

Claudio Erba

fragmented tied training to to performance now. happen is are still management these markets system it it's the to experience, easier of other becoming enablement, that to are only and space. everywhere So the and in can Most sources. coming the from And related learning training, not

every there, at IT For end are a news company the the And of the same disclose that these by every we It's a usually the need private. of ecosystem we the say. taking but day competitors learning standard was I do Cornerstone ecosystem. that big made out quarter inside because was couple old their the companies like competitor, that competitors

Salman Zia Rana

the headcount. And you very increase to company your Okay, and helpful. question is scale my scaling that comments, mentioned that's second continues about already up

you or lately? this a are you Do has with been where growth? talent, see tech as So there issues tech finding any XX-year facing headwinds crunch talent, a especially

Claudio Erba

a So scarcity literally foreign is mean, everyone and needs software the director is mode. role competition in technology the everyone of incredible. in engineer, needs I every sales,

You start happens so of departments, The are and at high not this is churn. level in red we from any the flag. usually thinking employees about the the churn were employees see churn actual typical

is companies in selling engineers India, geographical inflection competition. other mean, see can anymore talent rising; people, in no there on that the think buyers. or talent I -- say you or hire Iceland Let's I or the the when remote now a and want rising, in want you are competition out so, yes, to is Switzerland. especially where key wherever will Because point hire is then a there you

Operator

Your Paul Scotiabank. next with go comes from Please question Steep ahead.

Paul Steep

them Great. here. morning. toss I'm in Good just one both

a can one upsell first you The you've go-to-market be organized how the just the bit or about would talk sales little for force.

is coming update, just how how contribution ramp in the More terms obviously to of think up that timing end about QX/QX think the preferred importantly, but revenues, we in on. meaningful which which of that in

about on guys. be Thanks, type the just remind Second, also scaling of quick think revenue rollout us Ian, recognition and can follow-up on you typical, would we deals those? how those of extranet for but versus the

Claudio Erba

how we listen about speaking guru. Hello, it's better from your the to sales scale are machine. Maybe

Ian Kidson

to trying was was sorry was right. was I I me paying nobody muted. and I guys. guys. Sorry, -- I'm talking now attention All realize why. I

can guys okay. hear So you me Yes.

and on the strategy. organization lead of management expense question the So and account team

and base think in we the create is ways. I'd in Greenfield. couple the with the our to similar When different the think demand So in both base, of first, a approaches of base say we of goal

we may same do. create that not of layer. the we look by and of whenever products results better in stated that We is terms wider we for to a think a manager task announced and we is and in one, that receptive have a that, which mapped the are net, only we the developing That Lululemon, parent. what team. that Further Practically need of targeted and digital a be can in company which didn't marketing, sign sister account-based out an at if exercise account the organization strong XXX properly approach focus quarter, and account would would activity, have but account structure marketing, that having we buyers internal on owned every means say we planning understand Docebo possible have an or as way, we that is we companies multiple the stakeholders positive upsell strategic For customer conversations same with assigned with company, categorize marketing our not are individuals experience. not a and services. look company, affiliated we We we additional of organization. that And organization the customer multiple for within that at this learning, there XXX which there

and real charge So just soft being that team of actual live is the live the we customer the in but and is adoption a helped go live is to and making to using from go that CX configured, not go we software have from sure side adoption. launch go to

the mature. not new becomes in relatively will you good answer very you better. strategies addressable the in pay hard making first And and think, demand and generation huge. make development this strategies, engine. planning we're the account quarters Paul, part when in debase that our So and we're to look, better strategies, question? It's dividends market do does debase good to that good We're have efforts it that, business working the and And all of hyper to I come.

Paul Steep

Yes, great. Thank you. that's

Ian Kidson

wasn't if Paul, positive revenue? you're what it, because meant just second could net you And, extra I part, the the restate about

Paul Steep

them of fees? of large embedded where franchise should have don't to get owner and in the each in to on I just have like employees; the go think board? models, you as presumably wins while hand-to-hand organizations, franchise estate QSR Thus Or those referring franchise or they might a guess organization combat core is I'm are a real type we be type win you. this deal. you to Thank number

Ian Kidson

Right.

but Alessio, of respect have front So fixed been wrong line, that with that all along correct transaction, I'm me specifically, type we if to up of for an have ones I'm the absolute that signed amount. dollar

on franchise. the franchisees. franchise it's go the deals their us It's not or win with to So

Alessio Artuffo

enables Yes. the implement We holdings agreement, control then with framework to which do that. deals franchisees the don't We separately.

Ian Kidson

I side, and quarter. about element when have but good OEM the think Paul, important. significant this OEM Right. think some really question, to your there is is we And we partnerships There an that really announced --

today will using Our are they us we them will that And of go relationships development ARR to be that yet with with determined. zero. the create support business business associated a Because work is how be, unfolds to business. those to

Ceridian bucket We with with customer. is it pre-determined our ARR Ceridian, a overtime. grows like a ARR typical like isn't with something a So partner and Ceridian

Operator

Instructions]. [Operator

ahead. Eight go comes Your next question Please Christian with Capital. from Sgro

Christian Sgro

direct What's days think by guys questions. one ask seen morning. Thanks strong sales you good these for either morning. you taking geographically been anyway? this Hi, my I or wanted where have vertical? pipeline, When interest just to the about

Alessio Artuffo

Hello at it. We manage by Christian, Alessio speaking. pipeline looking

of our learning the industries needs players horizontal pipeline the instance, that unchanged. across us multiple addresses that many for Our remains position tell

what at have that means seeing is the a segment. what pipeline expectation the constitution that of of every and And we in each is and also size Now, companies per in we linear that business range terms we're segment. deal. have value within the a is for segment fairly look average commercial we deal What constitution of at are that is

interesting on and that linearity eventually horizontal the in Verticals on side. that like peaks like also remains But strong booking And return and and continues exist as good we is demand said, to technology, strong. it is valleys manufacturing. Roof, and It don't then about perform that; true. peaks momentum seems we retail announced believe, result Red in we from think of valleys momentum or Now of another you that's very we example because that. wise, stronger to continues I Lulu growth hospitality, well.

interesting as the look technology and you of companies ARR is at verticals And take turn for table, the enablement really a that an Top what's the we're it ones or used go-to-market if are money, used seeing whether be applied our to customers, for your customers. and activity or retain volume. to companies, that across case, companies, pipeline, logic up market SaaS that something have technology into we it largest sign the academies make is But fascinating. that make across leverage companies of you Now, verticals. to we the it's technology that be to consulting our ability retain to learning that it it XX now amount leverage makes not it addressable verticals. used ways huge. in a same or And to the many why thousands see And think that's or That's

Operator

no time. at questions are There proceed. further Please this

Claudio Erba

Can me guys? you hear

Ian Kidson

Perfect.

Claudio Erba

everyone. I think from you, analysts. just both Today, and want of thank to So we record repeat I record quarter question

do in November much both speak And pleasure you a so in person well was we as we here where in Thank them. let's So usual. Toronto. it hope to performed it from you of having

Alessio Artuffo

Thank you everyone.

Ian Kidson

all. you Thank

Operator

call thank disconnect today. ladies lines. This and day. Have for that great participating for you, concludes a you We ask you your conference gentlemen. please Thank and your

Docebo (DCBO) 12 Aug 212021 Q2 Earnings call transcript