DCBO - Earnings call transcript Q1 2022

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Operator

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

First Quarter 2022, Earnings Call. All participants are currently in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session for analysts. Instructions will be provided at that time for research analysts to ask questions. the Relations, over Mr. return President Docebo's I Investor of now conference to call Vice And Mike please McCarthy, go ahead Mike.

Mike McCarthy

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

more uncertainties, reference For will to and relating to EDGAR are information filings, available and we public call, certain refer Please non-IFRS assumptions during on the the SEDAR on financial risks, forward-looking measures. Docebo's which statements.

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

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

Claudio Erba

today for President our Sorry you thank for With joining Artuffo and CFO. Alessio first-quarter everybody. main call. us me CRO and And Mehta is our our Sukaran

demand pleased our products another are The across strong streaming market start we to segments. continue for We reason and extremely quarter this why morning. all services

and strategically rapid Their relationship. main and they XX% customer ACV the training of of to platform with ACV pre in momentum customer over to use enable quarter, to cases saw with availability the continue hybrid And using for the our drives and macro the suite to net capital Nishan leads characterized requirements. we customer consistent excited add and relationships to segment. These benefit particularly verticals, our stickier are see by also that representation than the continued of year-over-year propriety our and our that does We the from market, to our a from across intimated than solution higher ARR leveraging excel allowing came is mission more are scale. These the critical more important increase more the accelerating of the cases. in business [Indiscernible] to momentum about industry table training worth prior It solve of the lifetime value use our fast-growing growth create leave is increase and our team XX% number and segment the in of We Docebo products customer in are when distributor, to enterprise their external growth that charging seen reflect that for using almost enabling $XXX,XXX. an noting $XXX,XXX. have ARR from half to generating settler

to we little stay, as as a to we the positive continued profitability turn the Finally, improve EBITDA adjust Junker exit year. we remain

in sustained financial performance capital the As DNA. micro employees engaging skill and demand why our to enterprise. momentarily. main our characterize operating we're environment, a more hold All normal. moment with change competition in one and so gaps. customer hybrid who partner environment, the in environment cost, you've as in the and of the right future at the challenging dialing we of for are remaining and that operating what inflation, for will our about take maintaining a Organization new number of are detail Sukaran, excited let's efficiency But discuss we growth work the discuss while

technologies while industry the multiple [Indiscernible]. models The across nature using customer where service to department billion vertical investing daily execution multi are revenue diversely adoption cutting the the of or dollar company outcome, multiple we drive workforce, efficiency in like technologies future. of and of they on customer [Indiscernible] analytic see business element as result, system in a learning becoming We improving critical Docebo department the The these of As believe expansion, strengthening million with whether learning training [Indiscernible] to across grow multiple accelerating [Indiscernible] Docebo in focus supporting and can management is of investments. company It be and and [Indiscernible] it's horizontal XXX the support that trend the is of set from the It of owners. are system platform geography. eliminate relationships. a learning we [Indiscernible] clear single this partner today

this speaking Now, retirement on customer in me install terms, and business employees. partner let learning for in external managing retail and agreement, offering. America, the give sustainable in analyses, table for solution, training partner to a mobility the We to channel new employees to more than signed retail it XX,XXX experience We breached the leader about quarter. few multiple selected of capital we

software, will believe Learning the continue deployed To external and also a and They And goal come quarter, Customer the superior strong driver retail our software see We continued for automation to contributors globally as now growth. next to our to expansions that We customer specializing among businesses experience. traction deficit the to in than that capability. ecosystem. lane our are new end-user in getting other seeing full strategy. were we workflow fans our multiple across up captivated, the this expense engagement raving to to And of logo months North retailer, customer X like up are we Suite we out the across into pillar Using American in business morning. luxury In to initial experience go disabled table their that the customer just partnership, solution brought strategy. agreement. we the replay become catering growth point, leading long-term after our critical a to transform the need employee you integrated they're training key strategy. business then for due

continuous up-scaling on-boarding expanded solution. New to by in content value In entire connect to exceeded the year, store see subscription for into mobile of [Indiscernible] gates. grew the their of [Indiscernible] have this from TAIROLEx their associates have towards and rate. our of customer we out And shape group [Indiscernible] progression contribution use connect our triple and their expectations retail and happy attach XXX%. last and particular, for

year data needs example, will software For touch deployed [Indiscernible] digital Full to of in the largest processes connect other automation is being we United exchange that scale. Also applications of be. this by currency in quarter. signed crypto one stack learning getting that States it one in the while the data learning enable also

this facilitate [Indiscernible]. the of our This our quickly learning [Indiscernible] time-to-value also using as are [Indiscernible]. alike learning have making intelligence is made significant in our we to leadership year total from content us by investment consistently [Indiscernible] essential particularly, Alongside without and Another [Indiscernible] software [Indiscernible] in example quarter, and rising product industry to progress organizations. the in [Indiscernible] in senior and people. is middle-level creation your customer leadership reputation great create we're is innovator This profile past content to executing to [Indiscernible] mission and an experiences the that depth [Indiscernible] expanding investments our the from with which come they our burdening interactive team. their [Indiscernible] is create which achieving

to an One joined like is Meenah Well and Chief track our strategy Also, has our those the Nicole our to indirect at our Sales a scaling up Nicole joining trade brings operation -- ahead and Neenah's team, Officer. builder. objectives as growth of strategy direct additions responsible us. industry we revenue record as year Nike, our meet will demand functions. of and and organization of experience new Moscow. table products revenue She with the to larger-scale [Indiscernible], on be SAP, ennoblement our many lead be is over impressive and in redeem operations. and will in companies in Williams,

record every responsibility -- to help report, finalizing first that shareholder Docebo say organization take is published conference Docebian is our make meeting I'm will We as we impact June. ready economic. the citizen which are has proud everything say learning year-to-year our to other to and We our do. in first very that before be in not and to happy

our that We forward call you more when objective now to look our pass We we many with to are sample of I publish this advance the new proud to to to some of platform speak ESG yields. learning later customer shedding will to achieved by Sukaran financial. utilized report. the

Sukaran Mehta

Back you, everyone. And morning, Claudio. good

record, Regardless to and them a in our was that great opportunity, QX well-positioned Relations SEDAR earnings a great momentum are organization. to also are and This slide continued be demonstration website after available interested, in in detailed can the this investing website accompanying months MD&A we of their our industry. capitalize those are across morning. and release, learning disruptive filed the now made force QX. Enterprises create and the which financial growth press deck the For help economic all of is a EDGAR. favorable was the on business, call financial the technologies are on of ended a find These are for secular customers our Investor outcomes environment. of in long-term The innovate this learning statements, business at innovative to XXst, core results our March three available be breakdown XXXX on. and our on time

about current our market customers penetration, value future. tremendous our the excited we continue Given we provide be our to to and

the were for increase the X.X quarter to period. of year-over-year. result. added ARR XX% from was in total the of representing quarter, Despite first XX.X first total XX.X Professional bring grew revenue our to an million, XX% $XXX.X quarter year. FX million million, during an to Subscription Now prior XX% increase XX.X services million, for prior net million, revenue an from ARR total of XX% first headwinds, the in quarter. increase new the the We to revenues of the

QX with off as quarter. pleased this especially are performance our strongest We seasonally coming is

customers ARR the a new approximately greater fact of XXXX. at quarter that the larger New, represented sell commercial, take in be confidence $XXX,XXX XX% net and Total first the customers our we ARR the logos enterprise continued than cross end pipeline strong. underscoring XXXX, with of and are momentum to of and continues with

continued contract enterprise of shift XXXX. increased products. incremental Our driven to And at sized new by ACV approximately ACV, opportunities XX% lifetime XX% quarter continues for of positively for our we ARR revenue, the the the to of fourth the $XX,XXX the quarter quarterly the company-wide expansion of Gross more from up customers, our year enterprise value the value first of for growth as We in adding period. to or deals customers customers and prior reflects business, mix including end the in our was XX,XXX, quarter current add average margin fourth approximately XX,XXX the within to of XX% for was profit quarter compares these our believe the strengthen. base. base which customer on and XX%

in to operating the the expense operating the part to in We percentage sheet $XX.X million range exchange expect to prior continue and the low of as to fourth higher of were XXXX. enterprise on in that loss, maintain basis as Investor and lines to a a reported $XX.X first of the customer costs Total operating have balance presented for of relates support, full our loss a A in excluding $XX quarter than gross million Included invest the quarter. services. million to increased leverage XX.X% $XX.X of on-wing quarter, most continue year primarily $XX.X costs, Day. over expect on period. the is slightly revenue a million are we time GSA for million is for XX.X% $X.X is XX% unrealized. compared continued area decline operating comparable XX.X% summary expenses Sales slightly Operating our in as revenue first success operating cash the sequentially. to an of expenses this implementation noted, expense foreign from to to as for in XX% the deliver quarter and where fourth the for and to previously margins Marketing best-in-class increased compared to see we as we therefore percentage leverage, scale. This million

unit to our in to hiring as management and invest to team We sales net adding quota-carrying executives, engine. in our continue dollar well depth as includes economics higher our seniority, as remain expansion drive expect we retention. efficient This account

million $X a the equivalents loss net our XXXX, first strong $X.X came of what million of structure capital well-positioned the Adjusted negative million of EBITDA first for We of acquisition prolonged demand Claudio macro for at or quarter. million Docebo. in very in R&D the quarter R&D prior of are flow environment loss is the year XXXX, our marketing Free compared to fourth trend a the prior XXXX the million compared in benefit was first the fourth period. we quarter added balance we to and cash the was of revenue, $X.X quarter. one-time part future is year number $XXX cash quarter. quarter to end In to shows a year the healthy million I of cash the that of we sheet, loss A emphasize of recognize for that growth as on investments of also We capitalize sales creating In personnel a in first end X.X a reported compared $X.X which of will at called XX.X% that believe closing, of region. tax a from in and function of for approximately $XXXK. Skillslive credits $X.X loss the in to APAC a XX.X% extremely want quarter period. was million net net

naturally We positive, it responsively the matched will invest economics, efficiency. the that Operator continue be questions remarks, operating lead and will take concludes cash turn that in continued high-quality ability best-in-class and with like turn EBITDA now to same leverage growth, time over to the That our flow to our will to to at us we prepared sales ensuring while and maintain unit free maximizes analysts. my as to some the way I'd This a year. from exited

Operator

will question-and-answer session. from the question now comes Baer Please Instructions] Stanley. we Ladies Morgan begin [Operator with and first gentlemen, you. Your go Thank Josh ahead.

Joshua Baer

our and Wanted longer-term. bigger ability a you nice to in quarter. thinking mentioned to level, on congrats And high start $X picture the reach billion

products, get Just there what to at to about for geographies, customers. take segments when it some thinking would and wanted context get a really high level,

to to more over billion color on X any would take Just what obviously, time. get it

Claudio Erba

This Josh your first is organically. go welcome is earnings to Yeah. into know this We first call. execute digital world continue I Claudio.

focus would I perspective. So my only organic the from answer

is the but not So, industry now external The not total training hyper event. only considering be internal our part the fragmented, total from is training, market, any of also is addressable transformative reconsidered the and addressable market.

we can billion. the size to big in taking are actions So take to market, and the get unlimited in we of terms of we the What market. we are are really take need to $X and

the those but product. the that have new user sharing, all, like of First informal both only delivery we have concept; addressing. which that is products, the are Continue built, and content, multimedia like the to also content LMSs products innovate still part core but informal imagining of coaching not training we of training is

enough by be really other about needs channels So and give world fresh mean, them thought way entities to to people. provide a food innovative approach than go, you expansion, are Geographic sector, there, transformed innovation, be we into a there government mean train and into the are the we more that products verticals legacy train where more, some that to people. to disrupted I Then possibility, more government, it either can their industry, and big ready to that for more government the way I way are there train software. their thinking then a sophisticated more usually to are people and is not way the think new getting we east, the to

soul origins revenues still Europe focus are and -- coming to from North most and of still we we're but are our America. We European,

size, and a your do products, week. the be together of new new and increase So Basware the the there a these have to geographies. won't you getting elements, new all if on all are organic, We which put verticals, lot

think to addressable you're and way the market, build billion is total which fraction minor $X of bigger the uses If market one total size.

Joshua Baer

sales focus. Great, thanks, on unrelated, some Wanted if you. side. then the to additions go-to-market ask helpful. near-term we And just of up expect leadership Claudio. should sort the Thank follow of Really changes recent to but more the following

Claudio Erba

but all, as founder And Ale I revenue capabilities and need of very company. really the years others, I you me the with leader. because Revenue the also adding we, often met of do only looking which and Ale want the Ale's on reported are ideas, as at But organization, has oversee only he want Chief [ph] them for to only ten team ago Ale learners a because a closer the first Ale cover leverage help. broader other the cover But of like scope me, for recognized we and all to need part So product consider and duties to him cover revenue of I friend, I to services, marketing, [Indiscernible] partner, I and still will will Ale colleague, will not not Officer. my sales, professional me

him, also in and President President for now, that? to to as So is Revenue, I as than considered add leader, but revenue more want Ale But not organization leverage he something do on want the the you only the is President. Revenue. me

Alessio Artuffo

organizational products, critical. we better next on execution. scale. X for is grow rates, to next Geo-expansion, as to But next, Hey, got continue billion the things of human years, to years and we that to the all road you Taking of years, spoke And the when all then you is which believe Thank Claudio a continue asking top better prepare about that lay that Look, organizational we the that. execution. ourselves is to X we dollar the of is of before made really is what think tax innovation probably better X Josh. to the and journey capital

XXX XXX, are billion the got know -- be not we remain look people We as management, scale than know parts may improving assets of some it before. that billion I to and Nicole takes say our would us. there, Nina, what get We're to get one done here humble. each million in the of it that of what we organization, to that we XXX $XXX led go to them having like have every people invaluable from all that So a to like takes clear been very revenue to on stronger is will and

really get we faster. going and people, if surround to ourselves so better we're And there with great

Joshua Baer

you. Thank

Operator

Suthan next go Please Stifel. ahead. comes Sukumar question from Your with

Suthan Sukumar

what this to quarter. guys last gents, on to morning, the another -- print of keeps a looks to Curious that spending than AR seeing congrats where period. [Indiscernible] in with the wanted prior posted year? be up kind quarter. on on look kind slower demand expecting you the year pick outlook what environment to in Good guys buyer trends. the touch Similar you new added we this And the really to stronger strong you profile stronger level behavior respect to be and excited seasonal net strength should I be years. quite of you over of seasonally and

Claudio Erba

terms in So, spending I then to jump look the Suthan of detailing revenue the macroeconomic on and and want Alessio and environment will ARI.

a outlook, and So is is because more companies think shortage not of which the is another worries One there of worried points. in that recession terms of and downturn raise from only of are factor is talent couple And But but salary, probably others. inflectionally on talent. we spending of the that now people. for them

the talent, to these is been continuing an want to and closer great better [Indiscernible] partner And need you the mitigate despite the Ale as reduce stay partner I the deeper a like to these add look, downturn. system they table trend expanded company you relationships training leprosy, company to an on with as and have many to historically strategy also always to which base. have of do you so like then, work their see customer the the periods? something And tool resignation, to revenue have? and with been [Indiscernible] downturn. to forget then also about used your, in to remote work the is don't and strategy happen seen is adoption have But to learning to the customer the to which through economic macroeconomic positioned people establish basic but the in adopt online that have In XXXX-XXXX. We investing stuff I during the are that. the web And increase

Alessio Artuffo

food And right. included recorded -- large that that printed this recap, it -- time same unless provider. said -- as that restaurant contract a year with you've time printed Suthan, I a we I'm We for shared we Last period, we is a period Look XXXXX. same XX X mistaken, chain -- and if figure Yeah. a XX. chain

extend the we but I'll it scope think outcome. customers, pleased continue happened flow, satisfy we about why actually result. a had organizations and So to be about think what to that just I the that able you when to same we exceptional have expect as on to We guys be also are cases they're be gains the wouldn't capabilities it. to well for we Connect, why leveraging customer to get And even we We're those These it's as off. thrilled Smoothie leveraging been going refer their an beyond with ago, LMS year better, used like beyond Those to it solution. to use Learning leveraging know King. broader Bridgestone, and signed and they’re shared for going going are

Quarter-over-quarter, going see constitution up that to rate, our capability it's we ecstatic in we of net and are the it's we're Now going believe are up. is up. continue, according All to it's pleased our going only we're the those way not and charts deals going growth all, and tickets expansion happening, the are plan. new about

is validated the by results. Our hypothesis

Suthan Sukumar

Thanks Alessio.

to Curious follow-up, if trends seeing prior the a demand in an of quarters? any the you've that some what change the has update see you especially the with been channel, in been terms As OEM on side of could indirect you're seeing there on provide in partners?

Alessio Artuffo

partners our our are but not continued us all, of satisfied capabilities. they continue percentage makes of that be So, that we our in book business a to to adding have existing only OEM with year-over-year grow on extremely happy. services, first means It

of was for In book fact, XX% business. year-over-year that growth it

right future. the Now, demand very confident organization are the partnering we're extremely very around and in that with focused side, on we're relationships the material our results and pipeline, are the that. the excited yield These organization will in and on deep executing in

Moscow in their we the names, properly. having their like of Nina Now, organization their network just table, the designing when about about and to think and we're as not expertise, context beyond, people a capability thinking executing capabilities, but background, also reminder, in that bringing the only from of the their

staffing that as demand ourselves recap, So better a world to execute existing were the in our and better. performing We are great. and like partners

Suthan Sukumar

you questions taking my Thank line. Great. at GenCell, for the pass

Claudio Erba

Suthan. you. Thank

Operator

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

Robert Young

Good everyone. morning, first me. Hi. Maybe question for

mechanical the in I've some in rate seen when the past Is could or/and air a revenue. too different the insight into was than hoping It's you expect of the enterprise towards things is develop divergence quarters. Just the how skewing end little give growth of to that you point. that explain, there? of and over can quarter, the or just the maybe you dynamic near-term timing when there I one So

Sukaran Mehta

Rob. here. Sukaran one on. Morning, I'll take that

three of think that have you can't or -- if So things two give will I simplified into a some you this about divergence.

up move their the to teams going chain of to customers The will smarter. enterprise contracts. we the tend you're And customers negotiate the that more market, negotiate segment see quarter. procurement into customers’ of becoming enterprise contracts end are towards as Firstly, the the the

more that quarter. would been of at the -- start been of some coming mix would see, that you have have So you the benefit that in would historically

enterprise other through until following se. [Indiscernible] say, that thing a quarter bit the come revenue some market the matured thing. as doesn't this of is a And I segment you've at So of into selling would the per -- of and the

-- XX two segment spend do not on it Is also -- I'll of concept deals. when benefit minutes seconds the on is you you ramp minutes, your that enterprise For X it. that deals, have

for to those scale for one. a two scale example year because a users active locked for that deal deal. monthly years, in for in They're three. up then three three up chain year tiers that build to beyond of in but they it's in of be QSR And that And here years. an the ramp So in in then year they're up year would three terms have locked each signs

ARR revenue XX,XXX. its the second a the average, revenue, context, So in XX,XXX on year first XX,XXX, is year as year It's and take two, year XX,XXX, recognition XX,XXX and three. in that whereas year third XX,XXX it straight thousand we one year

that's of differentiation a on you few versus conversion versus a pretty in quarters, see get think But to about REV the REC. slightly if the I REC we you ratio. bit ARR REV will think next ARR to closer So where it much

Robert Young

how it, relationship relationship more got that cornerstone. press new That's the helpful. LRS is release, give I'm market the in to you on, I've was know a if thoughts curious if you changes your highlighted there. EdCast any that'll into that I helpful. that very you allow had you insight EdCast by add functions, you'll one change but your acquisition that some and was hoping so, I LXP, customer for just could LMS, that be the shows there us acquisition relatively don't Maybe in Chaivo

Alessio Artuffo

Sure. thank you. Rob,

space. with EdgeCast congratulate our our relationship to of we with that nature platform, again, new business. difference would I regards a their With more, off, the doesn't X. The the have such one our journey us, say in one second we it believe cornerstone in to for the are make at our First no Why? capabilities X. demand. we The friends immaterial. that

not EdgeCast hands we're excited our We're focused for the we're on one, our focused what -- on no very we what happy any road-map. for win win on for friends in we comes --that plans. very to future, rates makes us. it our our Again, do, focused look when others I very we I And for that repeat. very to when at something change We're our Second our rates. but have. And it's

Claudio Erba

the of one I for next a manage organize the I of they LXP are that the capital their will we the and they delivering object. create allows Because we're generation of tails And mapping users, have to that of the product as most group power not mapping indoors. the consideration. from LMS, that became, Yes. new then that LMS skill vendor mean became to endpoint, And need to are is artificial the intelligence I'm usually looking admin strong that don't LMS, for inside usually Reverse LXP already because partner bay matter. LXP complexity provide capabilities. users, from looking for skills or solidly

LXP Docebo LMS customer, became of which Because are have powerful capabilities. you that satisfy EBITDA is probably XXXX that that for kinds cannot their basic our company. development which a imagine of So effort to so cover the it XX% is Fortune looking these

Robert Young

you last building about inflation, for will QX EBITDA for it are much positive one pass Sukaran. And positive cost QX? or this then year but given quick Thank say be with the consideration inflation Okay. on. for you that. exit EBITDA you some noted go of in in that wage you mean something is expect last to and thinking do And when you're consistent the I I'll quarter, that? some very year, as just you it And

Sukaran Mehta

Rob. Yes.

We simplify we I maybe [Indiscernible] structure have thought the wage the considered as inflation, out. about will cetera, And et this year.

the are -- naturally And That's want a reiterate very will at we we always in happen business that manner. QX here as We to are EBITDA point said. the indicating efficient positive, I it exit is yes. will operate was -- we I

natural there Math your you we've and your do that's transition this growth always modeling, those happening and unit manage economics. You is our of in know yourselves some in a if I'm maintaining too. And that sure get and you'll --

Robert Young

Okay. very Thank much. you

Sukaran Mehta

Thank you.

Operator

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

Stephanie Price

few side. a have the questions I sales morning. good Hi, on

difference customers as are a curious in how the platform. if The onto you're enterprise, first is the move seeing to you coming just

I the coming think website. were once in [Indiscernible] through

as sales still if larger the or that's presence if the add clients. wondering case these Just is changing you

Alessio Artuffo

Stephanie, the just sure I your move that to we make it’s Lead captured the of [Indiscernible] more as and our more about enterprise customers question generation. phase makeup fully in

Okay.

a it and strategy From our Sorry, is marketing. marketing, be inbound the lead through across outbound to the multi-play gen our -- line execution didn't that question. continues to an cut standpoint

flow. of level the inbound not belongs surprising requires generating a the more sure, upper XX,XXX a is industry, majority the it inbound opposed thousand on market, software the more little tactics, to will the to and employees natural more marketing of marketing this bit for Now, certain flow, sophisticated The demand company. with [Indiscernible] a as a end

the over quarters originated biggest the that mentioned, inbound. we of X times have have some through actually at However, past brands

No SDRs. by with large it future. So execute the said that areas cost deals where larger equation false it. in the we and is or One doubt buyer our we times, enterprise and like sellers personas I enterprise reach think is, requires better skill that, equals different or outbound, about two on Having myth. we're set. many getting better funnel said and will friends even committees investing is different Those long and specializing enterprise more a a --

sure. For

Paler. rather giving field used just very branding customer Speak what And with that the but of and magic happy without art up is between we still have we put that combine That's way on magic you and look we're second strategies the the feel account-based the most competitors can in collateral, just sharing customer. would journey it's much is landing world for messaging to They're I with the Like confidence perfect, And not the right? intent alignment possible the spend right so it, we're that of very right The its and very and leverage great lot of of And because without and to expect for of the wanted the Bridgestone data of. the that is very because of away thing and of way, very the that sauce add our the that seeing. I by product What we our powerful. some future and say us to believe products do then proud and these time results, entire also ABM marketing here, the we're enterprise too to going implement we're on good doubling those with accounts. us, sophisticated the when show in but doubling with proud. BDR. means Then by suite strong good marketing we pages. resources is that out

Operator

comes ATB go with next from Markets. ahead. Please Capital question Toner Martin Your

Martin Toner

little year-over-year. Good morning, declined on guys quarter. folks and driver there? bit talk Can a another Gross margin congrats strong you the to

Sukaran Mehta

margins as would quarter. but believe we just about so that is sequentially sequentially year, think talk I talked XX% pretty I about was last last way gross or think about flat much we to I the it -- Martin, year to the were Yeah continued was we've fact the that

leverage happy about I'm some bit, gross as side gross the operating move but I margin, margins we we the in forward. up see some how in with we'll as think a leverage going think pretty guided I

happy our and move getting we we low in right. make to implement few quarters. and in gross we're chain the in segment that XX%, enterprise the being deliberately next investments the Its with customers’ the they'll are We margins up making get as they're our sure there there,

all supporting around from so expansion customers and us them a journey perspective. happy are that We product benefits happy the through suite based

Martin Toner

thanks. Fantastic,

versus being XXX,XXX mini a talk whales, you the You've contributed level. in customers with quarter? AR to of the ones how greater referred whales Can in to winning to the those mini than types

Sukaran Mehta

to can pretty actually number jump but then speak in, any -- some you let slightly Alec favor more better. story, if can I similar want

that's that but logos cross logo composition dollars, a sell higher think thousand, of theme guys The quarters. new highlight the that start understand. you should figure that the chains one factor see customer are want of $X logo that months past at under one slightly in about have There net and story the half so journey thing you spot $XXX at about just ATB we implemented stop in consistency that sweet was if you quarter no ACV doesn't they of again, at new would back add the spot, quarter, their deals is no will so why the be the look that, in, to people ATB, spoken in million ago, that homeruns kind story to of and that at landed And and and at but do the above look we we've $XXX if platform we've to ARR million to So six our And customer that of big whilst then from within outset, I or the seven $XX,XXX. was sweet that's came the of outset. a is here, in the to continue we retail or sit stop that named we chain. they us fact wanted sister to months the the doesn't luxury six in

Martin Toner

much. Great, anything the And a you and new finally, can some are of share on very you with products selling making you that thank progress your suite? product

Claudio Erba

data, are other me probably are exciting one adoption. probably platform a how name, with gateway the second a because skills some content, the in we processes products how and continuously a learning mean, stickiness other in things, single Yes. more stack. the on gen inside can multiple difficult perform -- than stage customer the integrate with I either and across deeply that it's company. of the more I are investing Product because and leverage and the to sell new providing learning the the to enterprise base integrated software, And sign-on itself. are we data feeding automate beyond the the can excited rate. more to in AI, proving the and that nicer progression give and analytics But the if software price you integrated think, the more already this enterprise factor. so LMS I two support are Good all and from the visual learning logos. share and is are -- to maturity software data mean we the our to products inside providing are those I stack, Connect, shape, And fact, There the more better name connect, our AI we to extremely of I to our most, attachment had company remove, many learning

Martin Toner

Thank adding the and Great. very on I'll it on. congrats much on congrats team the members. pass you and results

Claudio Erba

Thank you.

Sukaran Mehta

Martin. you Thank

Operator

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

Unidentified Analyst

This calling Good Richard. in is morning. Mahir for

getting the towards first off, guess I If to displacements we're seeing talk tailwind. moving you of Are you're more coming from just as pandemic, there. light could just wins that wanted versus about any a you through So seeing trends space? guys ask I you, your

Alessio Artuffo

to our we the so It's of XX% in we it's little you looking for on we net be we're mid-market in At the very they're so-called be displacement space base, to get there. more stage that employee to enterprise the or XX-XX laser-focused track, actually more competitive small with of to That's know enterprise, model really strategies fairly what? the be, and because for more that would of of more mid-market and of satisfy space in yields lot level. about We displacements do field business associations. about our players, rest doubt not more customers organization the in the don't elements. are small think commercial differentiation fit space No first a and players to competitive segment. companies. bit opposed crowded, market see sort that the in and and time that it's is a large and cost-conscious. in because landing and positioned Whereas their high-growth focused end-users or type LMS an are as certainly example, one execute us, right better are employees capabilities a again, aim and distribution. the say approach number space new There Sure. amount there choice. intent at that always and And a have XXX well may business organizations we But large space. than we enterprise, of that a for high that the And amounts smaller, really I organizations is simple easier we say would Enterprise

Mahir

with Okay, on the thanks. on follow-up, have product newer AR the more your coming how and -- some that for you of guys kind buy I the across down about And ask build my tech modules touches $X mark. for way? opportunity goal strategy. valuations and to you billion you acquire wanted guys But of kick-start just some just smaller space, versus are thinking companies reaching to your Do see

Claudio Erba

So.

multiple drop, and First more interested of all, the go on find the outside me the more you hunting.

This that probably carefully the are say, multiples it because we the private we not and in public in smaller market yet are is market. there's the are. say deals. looking now great both where happen today targets That Let's private looks dropped public find can market

The great great So economics. capital multiples. there great to products. But efficiency. low a here. Great caveat always doesn't have only team need not I and great culture [Indiscernible] mean, the a also of is deal had have

will not probably find [Indiscernible] is efficient. buying so And you which capital company the a not

match to exciting falling and products find win. team on perfect say, incredibly these [Indiscernible], is will when between That cautious because economic situation fundamentals. are only world the [Indiscernible] need we apart, the braves So the

Unidentified Analyst

so my for answering thanks Got questions. it, pass line. I'll much the

Operator

Instructions]. [Operator

TB, next Chan with comes question from go please Your Daniel ahead.

Daniel Chan

metrics. of these good morning. enterprise question is earlier, on clarification Sukaran ARR a give Rob's wanted deals all the I just a some from current Hi, response to to the in

metric? before take as deals full saying ARR you're as final in the that enterprise but to time, ramp get So you that could you the the three-years you said, current over up recognition,

Sukaran Mehta

Yes.

just it. So make everyone to example sure you understands give me let

in So, a I talking monthly active That example, customer that's for what where actives with is each will monthly of year an a ramp users in perspective. sign customer below has was been year for the the monthly that, year $XX,XXX $XX,XXX floor year X, is $XX,XXX is we they active for X, in deal minimum be about, downgrade floor. and reporting a ARR and an locked from up users X, minimum in the cannot

first you subsequently the TCV So subscription Year you the it and IFRS $XX,XXX $XX,XXX. the the Year that But in when take X, calculate by was the average Year subsequently for X, that when recognize users team, on of and straight contract for revenue X under active a three. revenue it's $XX,XXX then of divided we ARR,

you'll terms revenue a then. So sense ARR in makes that see versus recognition of differentiation of

Daniel Chan

Yes, reports it's that that. bit, have dynamics to competitive changes if whether there wondering whether that's are very on maybe for Just firm? a view so selling Switching SAP gears that helpful. Thank Litmos equity you you a the private say,

Alessio Artuffo

standpoint. standpoint, side, the from market my any an M&A Cloud from the the On consideration lead

want with that sold was Callidus, remember well we CallidusCloud wrapped First being SAP. to Litmos before and New then a deal we of it to all, company when say Zealand in a

And a the entire comments. until and data. up serious that in don't chance year we in it's years process further of we journey, had that we proud any remember say past understand we they particularly XXXX, our XXXX, said, that compete make remember be much we a secret With SMB and market us for competitor, think a therefore, were for So I space. that really to according opinion have not don't to the is undergoing a about to have and strong that. will I the

Claudio Erba

customers. focuses do more I business, sometime second enterprise and that add Ale, think mostly I leap they there's either on and mean, we

a the from like will so -- of for very competitive that them, equity for game. doing standpoint company happy Let's a a taken themselves, happy say always private great that is private competitor focusing or very efficient, the years over focus by two because a re-organizing you on like years competitor firm, one know when be -- great are they I'm equity be I'm the very couple

they On private they that are are equity. by private assuming equity, the buying, acquired as

Daniel Chan

Like what So us. go they immaterial right? it's for

Claudio Erba

Yes.

Daniel Chan

you. Thank

Operator

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

Christian Sgro

Hi, good morning.

LMS. maturity their of You had behind are mentioned terms American North previously geographies that many in corporate was

attack And which your maybe my question position behind? the call out So three to the as geographies years? regions most to being those five in next is, company's how you'd

Claudio Erba

Easter you the adopters. first faster the Well, find philosophy more time the you -- actually, the go is

is on because because Germany, bridge Germany, probably And [Indiscernible] that have well. is ship, just today, Let's to created, Zealand New the think lot speculation, these Australia do compared a Moodle in look have we is later was a Middle-East we a as these where world make UK. become to new theoretical on and foundation this That have we France is guys, during my to very -- sooner so creating a including our e-learning take as Australia, If Middle-East new say to lot XXXX in West. I offices. another the solid do Australia as frontier, or now have and I focus said, is I well. friendly that geopolitical think East but between will plate there, in

company want UK you in usually and to many on I because we distracted that are distracted in you we it they as be perform. mean, So will parallel talk -- or was more ask activities the don't the

step time. at So as -- X

Alessio Artuffo

of branding and would lead breaking not the to it's on agents segue Inc. good into entering and in where the North only prioritization. well, say over recommendation is with our we concept territory hiring also it, chart through time. force is go learned of our rag in there just and regardless produce about you our No as it's power and America like Christina, tremendous right doubt focus the the about folks, perception value, brand that the time about agency, all-in-all, in Inc. field geographical takes

with I'd moving in we office branding to go Skillslive and of the growth, result even following out through, recognition So say latest the with our acquisition, is needs understand the the that work. our market that APAC affirmation, Melbourne, a in model

we do many build got point that, execute the you to lock and has my you we repeatable. model is formula, places, it. the then progressively and formula against so to going timeline is way and do has formula I look will check the where the And be the can't that time unless same can't that franchise you're at investments the And formula according timeline that we guess at

Q –Christian Sgro

never grocery-outlet a always still. American There's say year. of at North ended lot last momentum there XX% to lot And forget grew that that, of

Alessio Artuffo

Yes.

Christian Sgro

Alessio here. all good Hi, traction follow-on over, you're at my getting

sounds couple months team in A sort a Just overnight. of Skillslive, of a acquisition lot like it curious made Australia sense. on now up it of stood that

I guess be integration's how if in then the all coming might a And you one, along, So the of follow-on, acquisition as looking coming just that's type future? for the along? how wondering, that's maybe out

Sukaran Mehta

Yes.

fit, there field I we remember, can of our are actively also really at region existed Warren in doubt. good So and people, he APG right? of yes, added a to all territory be that really that, it. scale to competition maybe it. Of of again, that in of territories the leads down the market a team, and Go was collecting really enter It future and with no head a we going at Yes new timing, recently of execution geography, their doubt. think not accelerate for yes, amount Then to yes. Skillslive. Skillslive an no to for analysis significantly, love the enter to master as needs already or itself, creating management team speak, excited -- leader regards comes is Asia There of the to territories. in to and Australia, and it's implement to it teams up is to quickly. vehicle we're Those We stellar that They our go. things execute. that Docebo, that about were DAC to anywhere a lead XX sales and that well. us take going have great the can master, the folks between accomplish able pipeline, and deep be build understand already industry stood in group Docebo we're success a so in we from And live pretty we actively we team a just selling said, to expertise to Mr. HR yesterday, we we're support addition XX go With were to new industry team wanted that Docebo. joined only and We capable a months that is

Christian Sgro

Thanks [Indiscernible] all, That's for taking my questions.

Sukaran Mehta

you. Yes. Thank

Operator

further Please proceed. questions there Mr. are this no time. at Erba,

Claudio Erba

also probably. Thank you, everyone a have Have [Indiscernible], and speak day, to safe, today. nice listening Bye-bye. to stay

Operator

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

Docebo (DCBO) 12 May 222022 Q1 Earnings call transcript