DCBO - Earnings call transcript Q2 2022

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Operator

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

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

Following the presentation, we will open the lines for a question-and-answer session for analysts. Instructions will be provided at that time for research analysts to ask questions. like of the Investor now Docebo’s over I'd President Vice Relations, Instructions] to call turn to [Operator Mr. Mike McCarthy. Please go ahead, Mike.

Mike McCarthy

operator. you, Thank

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

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

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

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

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

Claudio Erba

being We of generation line on did quarter profitability. out from company. in positive is everybody, for the CRO Artuffo, revenue quarter. another you and us today joining our with our Adjusted expectation of balance quarter flow consistent ARR exchange, execution for to the of that Hi, enterprise quarter for performance deals earnings impact to some our growth our me are the With the President overall based was for report second are and certain and our CFO. Mehta, for and call. and stretched free represented experience Sukaran for Revenue thank Alessio cash commitment with we June foreign pleased solid and impact

continue dynamics. watch to evolving the We macro

enterprise complex external, ability solutions supported solid addressable for long It the continuous to learning internal to a runway our This revenue twice that customers a Let's for needs important of as our market is organic that the note drivers their enhancement. for class and productivity by healthy, anchored the generating in our demand use by addressable case. fundamental say hybrid intact that that to deliver about growth and our and training, external total growth is customers big that is journey. is operation core external is suite market us a support our are table provides and enables our learning is where the internal as best to total

the the success, partner to does challenges training to labor on are will accelerated as revenue keep we focused as include well retention high-profile and being there you enablement. by drive customer several training addition strategic In macroeconomic fundamentally environment, drivers and

feature ecosystem offering their buyer voices organization, and as horizontal internal use own external own can ownership of layering rated ability a displacement each the of persona ability system integrate reach complex innovative an and drives needs greenfield This with showcase one unique customer with cases partner on [indiscernible] growing and weighted their We're tomorrow today their that but Our to evolving certifying our instead cost implementing meet software leverage like well opportunities. share. the multiple reliance opportunities. for upsell size with training as easy model of down on a platform disruptor where here and single they a our legacy serve greenfield, as mind federated have market multiple ownership silos, a nice all eagerly both customers Docebo positioned considerable that owners to system to by is are expand and a stack. the not are Such deploy displacement across solution, that's centralized to into pickup fits unable drivers cannot LMS and gain require and nuances. It’s effective. Simply in multi-department are lack inside and

to have process, sales including of the consolidate streamline while in internet through their number also this been In or to addition for customer whose engaged the is the customer tech makes and stacks. the creating CSO either stickier the CTO a these the focus we are And the capitalize cycle on [indiscernible] set sales those them. to many in have our executing opportunities place In and bring customers against are that longer we it short, growth of nature strategy strategic for. looking are to partnership well

will market the drive gaining that innovation in Keeping by an further balance the on large provides share well for how positive cycle to Through the serve time priority catalyst supported the a outcome generation. flow opportunity environment have maintaining legacy macro our valuable cash We quo. a to extremely now upcoming making investment to gain share. second focused we balanced strong we without where sheet a and environment positioned growth are LMS by profitability, free our [indiscernible] are investment for generally these as about and ourselves excited status disruption this under-penetrated doing main and

to call Now to over like turn update. Alessio operational who I an you the will would give

Claudio Erba

today upfront. want three Claudio out good remarks you, In morning points my you to Thank and everyone. prepared I for lay

customers. education investments of enterprise customer of for business enablement and priority revenue our are increasing base the First,

of external market, internal twice in the our are market. is as large a that capitalize the the particularly and opportunity use TAM analysis use case Second, stronger as large to cases on with greenfield

customers use better yield more Third, exponentially adopt and economics case one than are that unit more sticky.

macroeconomic makers with pulled wider That for said, we're economic consolidate platform to a plays our The environment stack as follows. to see really with lengthening engaging provide move do more getting a expect that in to We cycle corporate we wider executive organization. approvals. During teams technology learning the frequently in this as the the continue spans across trend pressure. of strengths well a to result CFOs the this segment, quarter decision saw and enterprise specifically CTOs more deal

serve enough both flexible employees and be a handling their of internal into scale. multiple on must the network, cases solutions integrate customers use global and needs effectively to learning First,

efficiency they productivity from both our LMSs for unsustainable move look and increasing we Second, school favor old architecture. legacy modern as customers, more in to away a of are

provides ease and favorable deployment Docebo time-to-value. of fast Finally, and delivers ROI

our with performed their quarter, and June XXX new XX% coming Cross the learning net added how our sells mid-market as more of effectiveness segments. we they During our both enterprise than customers team suite. our sales and deals upsells from in position expanded improved well

we for for progress roles past we upside, replace where goal quarter A by is organization. this With and is signed within the is opportunity motion go-to-market improving, on upscale our example to of to over decision company. we made Chipotle’s implement their excellent offer restaurant we learning [indiscernible] quick the ramping our XX a While we've future existing sellers have know win focus this service as we LMS. to tremendous are immersive opportunities the especially as customers. industry, their Their employees a emerging in upscaling development leader good and

million over for learn live Chipotle, we the offering cloud based computing work their company Amazon external skills pillars and professional Docebo’s easy growth. to this is our powered design BUPA. analytics. A mortgage subscription a an In and internal on sticky quarter full create traded their several this BUPA functionality is Provident for of to legacy subscriptions, for most increased customers extremely development that dedication Limited, in expansion happy United US and professional food use widely innovative customers. European been the builder project. Docebo. enables addition signed launch our long-term paid Smoothie And AWS to We Services training deal of that combination a [indiscernible] that expanded and case XX one IHOP, the more win a to services Associations a by worldwide to This of to looking demonstration fully other relationship customer an with its Docebo customer and in displace of healthcare one ago product chains largest lastly, loaded enterprise international with of and the a our markets presence the It platform on-boarding of British service went premium visualize motion, selling engineering our shows very known brands. the initially in boarding the publicly of has compliance We is a large competitor serving introduces of burger a architecture AWS testament (ph), were name bolster use world with enabling suite success their two, legacy teams organization. is cases. include skills. relationship of like notable our launch [Dennis] comprising week Geographical is us year we to the this signed ago customers. with This a of always of product, organization. fast the solution customers example how large services incumbent displace well-known and support for In environments great King to a in of one Web advanced we demonstrated this individuals and as

new our Turning system. largest especially with capabilities innovation, from programs best The development. our be and products market for management We're learning served cycle feedback training to the also North cases made roadmap direct choosing with include is Docebo featured DNA. tremendous enterprise of product experience upgrade new the our developed as which Geographically, and entire and from existing both America Content opportunity. the investments two for like right focused a after legacy having Docebo strongest continues seeing to strategy. and use is customer to and to to core We're commitment a and customers our product harmonization improving on greenfield the our on past under performance module have Shape and learner years their Connect, within start,

market both strong traction some deal excellent, wins. Europe, by Nordics large has UK both and to characterized been quarters enterprise in Turning the had

markets, across and The having solid We has technology joined [Aaron quality (ph) stand the look SaaS to space. with across Aaron pipeline as team existing the and and wider practice. to SAP. is our Docebo partner of bringing Australia we strong technologies and lead pleased as and region. such region. will on APAC well select expand growing XX [indiscernible] this over strategic network from OEM years partners as well a recently works Zealand industries architectures mature particularly quarter, as OEM as very they reach to New modern well. have board partnership the Aaron software companies net such many increasing that sales start-ups as our brings will on enterprise into Craft] value concentrate partnership experience partners. partnered success exceptionally incredibly same Australia, our we seeing DACH delivered a that to built formed our European out we're other leverage in We're

about machine. Through Dataminer to Turning our partnering demand In recruit into mature customers more as with so additions the traction executive positioned made further end uniquely well that and our Docebo go-to-market talent conclusion, elevating we've the the key will we're to generation pleased on motion go-to-market like have excited sales CMO. people learning able included and needs. The we're ADP. so experience. the directly Officer, summarize recently, they as we're we've our was team, roles company. Sales this and driving in be our His suite our delivered focus the has our to marketing end investments far. growth future Ryan I after support Simosko customer of to companies at and marketing a and learning Chief immediate new tightly where team to joins leadership will our our been More announce accelerate Ryan with named want serving our Nina Brock brand visibility why

long-term would tech are hiring of a responsibly or the continue Docebo to in While now to to review drive in financial performance. invest talent by the managing very I others investments key closely hand like industry stopping to our call hiring, over performance even for slowing will Sukaran and growth.

Sukaran Mehta

Thank you, Alessio, and good morning everyone.

and were SEDAR their organization. also we weight about financial a results are accompanying generation ended quarter made The productivity, pleased now thing EDGAR. that remain of the long-term XXXX in reflecting filed invest Technology available for investments prospects. on committing they're revenue and on the June our and be results and very specifically, one to growth drive deck and and Investor factors release, secular six balanced approach For earnings for this the our those tailwind, aside, months there The statements, We three enhance manage enablement revenue way customers XX, website we our which Relations with detailed the as With growth software the and call can and that are existing with this morning. a website breakdown are financial was our new on our the slide increase macroeconomic MD&A our this sales available are profitability business. making press our investments, confident of to interested, is the more investments clear. found trend

Now million after of XX% in QX to XXXX that revenue adjusting the disclosed $X.X results. the by one-time our and filings. Total excluding foreign increased exchange of cumulative previously catch-up a was impact

US relative million, for XX% approximately quarter $XXX.X impact X of As an revenues reported, increase significant total points, of dollar the were of adjusting $XX.X XX% the XX% an the recurring of our the the percentage given foreign revenue prior year. to total for negative Annual was representing currencies. the revenue revenue after for quarter quarter. strengthening the increase to for first grew of $XX.X Subscription million, million, from

average adjusting for Our impact foreign XX% company increased ACV of wide after or contract the exchange. value

As reported, approximately $XX,XXX XX% ACV XXXX. the quarter $XX,XXX up customers ACV $XX,XXX. new at end was from company-wide approximately quarter of was the of to in second for the

cross the customers the result of a sequentially from direct contribution enterprise valued new XX% result net of and of ACV is cycle the $XXX,XXX This a declined we deals elongation sales previously new sell lower represented as the of logos ARR discussed. from New $XXX,XXX. greater over approximately with than ARR.

are fluctuate rates hybrid sales the involved. quarter, segment particularly this Although cases in pipeline external remains from strong, may percentage to and quarter and the our use when healthy win are enterprise

for cases of higher million gain the to on and current a cost for primarily with in compared $XX.X basis revenue reported quarter the of of expenses $X.X most second foreign Sales bit context, prior million which Gross additional quarter as quarter unrealized. operating the million, sheet For book XXXX. were $XX.X G&A the relates to from for from percentage the part, compared platform XX% declined slightly of second million the marketing play stickiness comparable from decreased in more prior a a cash quarter. Total in million the revenue first XX.X% is XX% XX% and excluding multiple $XX XX.X% period. the is quarter than million the balance customers. a first therefore operating second of our ARR of our XX% year reflect as the costs, the quarter total slightly These first of for improved this of to revenue, in first effect in Operating million investments use than the the $XX.X revenue with our is in expense sequentially R&D XX.X% to that $XX.X of the hybrid gain percentage the from strategic use comes second consistent on were XX.X% XX.X% margin year year. in the for quarter. customers our role with to to or to coming our Included with period. decreased $X.X exchange for operating of of a of profit business quarter we expenses and for external cases.

the second With quarter net for of a income loss and at We million ended cash million cash loss the of of position first quarter the compared the cash the $X.X and equivalents of team $X.X net compared strengthening for Europe adjusted reported XXXX R&D quarter a $X in in bulk of with We our million US benefit came of $XXX the to we healthy EBITDA with R&D million. million in point the second experienced to a organization. quarter. net the residing $X.X for a of quarter. the our Adjusted X EBITDA first dollar, loss for percentage XXXX of

ahead to quarter, achieve us of second strong business beginning While scale the interest us in to leverage. The report to income our in deliver of I'm of growth pleased structure operating was to the generate this cash that continues positive flow the level invest in the cycle, free positive gives allowed natural strategically. has million cash rate capital $X.X flexibility which also our plan. to is

Before to opening questions, with thoughts want some three on I to the close items. line

compensation, have we a of as since cost more to evaluate up top question bear to frequently embedded investors back share-based reported First, high-growth coming had in QX and retain been May some that the results has companies attract talent.

to Our compensation maximizing of peers use our Ensure to share-based always revenue balance with quarter similar in of the value comp modest rates when number high shareholders. are the equity a percentage are was growth X% relatively to of goal we aligned compared as approximately interests the drive second Docebo. for performance with will

similar I you Europe. be dollar see roads that, headwinds, is half these half improvements flow current second located as while strengthen impacted. to as with benefit year. forward leave we expenses R&D second deliver rates levels, and modest With the will and year, cash The the of revenue as investments our the second want revenues And EBITDA continue the point in will we as-reported at free expect to US into will this see to lastly, move are some mostly of through in growth

concludes to optimal to will growth operator Operator? the it investments remains economics. on prepared to my making That the analysts. focus long-term take I'd Our now remarks. questions while some over that maintaining like turn drive unit from

Operator

ahead. you. Thank from Your Instructions] question-and-answer comes Securities. now gentlemen, and TD question Ladies with Chan go will begin first we Daniel [Operator the session. Please

Daniel Chan

morning good guys. Hi,

deal are a change on of on composition sales the cycle. mix? in your So, pipeline Can however, seeing lengthening the you of terms enterprise in the you the commented you comment macro uncertainty pipeline,

Claudio Erba

[indiscernible] which days, and macro on environment in sales as usually the cycle negotiate deals see especially the the past focusing deals, we Sure, deal to contract. Daniel. understand in the impacted CTO growing. few Claudio, step pipeline or CSO has we enterprise the wanted is the the only in demand because pipeline to larger above and speaking. We if were Actually, where the $XXX,XXX, better extended

we phase, growth, to addressable So, any is mostly an do extension see in see is the eternal total procurement pipeline deal term in of use fact especially on the greenfield. market, the decrease this and the we not month the that the size in -- the this case

shape where you So heading only little and for careful, the more are in the inflation [indiscernible] don't next want there situation are the macroeconomic product. will chime bit a few There where quarters. or do demand to buyer because extend they is know that is in [indiscernible].

Alessio Artuffo

top that on add improvement Claudio XXX% shared. strong, recognizing seeing Yes, like of pipeline remain to also what we and upside. I'd only not have margins we're we're that for

and to We bolstering have pipeline business focus continue CMO demand our what creation. in and teams to gen teams investing instilled really a our new these development on

is net-net continues to So pipeline grow.

We working very upside we're it. on margin for have hard and

Claudio Erba

airports improve is, year demand Alex, a but are yes, to for said do need Alessio case we That [indiscernible] point, good that. and Ryan, and for are greenfield And leverage And past the it's marketing, still pipeline putting the Europe made -- the all to do pipeline have sorry, for external it's market that we etcetera. with today the are said, one internally up work internally the room bigger pipeline etcetera, is internal because the happy we better chime Nina operations impressive. -- improve, the the create you generation, with that which the we and sales, Italy which a market, about have Yes, big and you zone, mean, opportunity especially to we make is we two [indiscernible] to -- is to and to have total place is between in point times and we compared increase hiring so hasn’t the coordination a pipeline. bigger with addressable grown use growing, still the pipeline. we I the if

Daniel Chan

That's very helpful. Thanks guys.

suite, meaningful quarter with an their channel also They which is of Can continue on includes you their believe last full to I sales? your solutions. the was customers just your give taking You OEM strong. very Ceridian proportion how mentioned that very on a update to well perform large us

a still large are they they had been in past? the as you. if wondering contributor just So Thank

Sukaran Mehta

one, Yeah. morning. Dan, this take I'll Good Sukaran.

don't they this contributors performance factor had ARR On an the Ceridian scale by of you OEM across well, the story and a with side that way. one strong mentioned and really bigger board the from the I Ceridian you pretty generally have consistent quarter we that good stay both in and insight to a given MHR, the there

quarter. are So very we pleased with performance this their

Daniel Chan

Thanks.

Operator

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

Martin Toner

us morning, TAM thanks you external past. question It's for my you in great us question. everyone the that this kind enterprise. maybe further had taking many little of times, on Good give unpack some bit we've to so details? guys see Can of Guys, detail size some and and for a give

Claudio Erba

or can are this Sukaran, relation. the I to something investor say we moving

Sukaran Mehta

No, the understand. can to some say Claudio, Go ahead. of we stuff

Claudio Erba

because [indiscernible] macroeconomic macro Okay. Martin you speaking [indiscernible] made happy, is exciting. about me market addressable pricing total

correct So you what XX% Sukaran wrong me use know have to that with of at first case. covering I'm one external revenues of are we least and that numbers, cases, XX% all, if of that hybrid, means are use we the is, our our see

for time internal departments, So hard the one States is United one. one is two only bigger two External use case than us. in internal, external

a use addressable America billion, (ph) never think cases, very our US customer use external ACV pitch ACV a segue I opportunity is the good external, say, the for data as and only, during two-third every so an North to in total shocked us, is yesterday it we on external coming because an there pitch. the but the time external, see a but X exciting they and that is is team case potential with and for they for sales sales internal the also increase those you [Alpha] [indiscernible] training of that not during we them are market training, they an speaking only greenfield. in learning, mainly if are So XX% is Toronto, this is has was BBR Canada and great know,

[indiscernible] they there customers so engineers, partner, mean, recently. or America, recap, audience third AWS now means incredibly are the this two audience, to market, also other people just external, their but be yet billion train two-third that of service greenfield XX% [indiscernible] is not cloud that North $X using It's So customer are customer [indiscernible] payment big. is only targeting want that training, to become of skipping I

Sukaran Mehta

Hi, Martin. Day, some of we'll leave our is I’ll of latter we and will more Investor just that the will this say finer the some detail details unpack happen at in which for year there part point.

Martin Toner

That's great. And I'll I or give a most. technology more skies quite the significant guys. follow you're up those believe weakness seeing little pencil companies strength it vertical a vertical? I you talk bit less to in any their if about is companies, think the to mature than for that Can are you sharpening

Claudio Erba

it? to you do want take Alex,

Alessio Artuffo

as recession-proof platform deliver referred approach learning solution, solution. as this in one in the is needs effectively to and all the education, a solution others use with we onboarding with ability manages or an and oftentimes because vendor such working all different same into a add complexity our centers effectively whether have Yes. that reducing multiple Look, refer market organization use of to an multiple when terminology concept may customer professional quality meaning the one to cost in add, an external manage ability cases, in cases, one one we name We've platform. the that internally allows the it's That one referred to case. enablement, needs, about it effectively quality compliance few We to fact multiple consolidate use federated goals. the talk the partner organization of platform to internal various use to to cases point hybrid a in itself few a also that to of name use to past

So challenges an our, that for let's in concern those say, concerns and navigate transforming recession-proof are or actually response us. customers opportunity having is to that

Martin Toner

you. that's pass the me. great. Okay, I'll Thank line. And from all

Operator

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

Stephanie Price

talk Can about was chose maybe use Good it a talk win. press of think more about a you are Chipotle you the morning, that and can LMS release that the on replacement. a Chipotle bit I a versus the as targeted typically mentioned little full provide. The Docebo? congrats system follow-up, wins why percentage that cases bit And you

Claudio Erba

a we Stephanie, the it's use we don't then marketing which the part define pure is question -- centralized see the I project us answer the I legacy, you of business next go case. that for will like on I’ll and last the directly LMS. [indiscernible] mean,

are excited are We to the on department that we on buying external that skills, means heart about customers ultra-excited train are training. Docebo

So if this are Alex, to one. define spot. in our global the not general sweet is as going take project, you LMS Chipotle you

Alessio Artuffo

location also around so in architecture, Sure. the both with capabilities the Chipotle the More of clicking the oversimplify environment, that And rigid. in see, run particularly business, generally by speaking system. system Stephanie, versus and on that are that's the to manage needs space. business the coherent I we're can to and with. enterprise you consistent that a that more to basis Chipotle themes example. have quite management area flex they displaced. those partially of of run deal are agile in it in to others also based also ability franchisees for super their area proud I'd deployment is and I Claudio kind provide vendor one the of QSR and mentioned, our distributed standpoint ones very from tell say how modern old displacement is analysis school can vendors theme in interestingly specifics double we analytics appreciate, could the perhaps it and more you specific of have a their of of a whilst the to of be certain then the enterprise I QSRs which we saying wining is reporting the say we can people of and an more in legacy productivity of frequent system on the

there And a standpoint and fairly quoted us in so place. hard that a more a won in management in it. is script, of positions no a continues to chart Stephanie. Docebo hope lot provides we space a that And hard us that we I of to our intentional that answer, business grouping. it's certain QSR marketing surprise type very the we're we in from win do capability and really as making and not effort for -- organization believe be to of It's unique more

Stephanie Price

It you does. very much. Thank

Claudio Erba

Thank you, Stephanie.

Operator

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

Richard Tse

thank you. Yes,

like sort here spending motivated what of share ahead? you're Can in still move what thoughts opportunity, trends you as for targeting up. some you of of on terms harvest looks serve seen perhaps look it your So you've are that sort LTV as are and internally we you CAC fairly to maybe to

Sukaran Mehta

Yeah, take question. that Sukaran Richard. here. I'll

general, CAC I think the question and to about we getting. some it, information to overall that we that are data about will LTV think in more report back I you think help about Investor our points growth when Day. some profitability versus we But I'll will provide come

will above we're think reported had from -- is without year. disclosed we net that through but from that the about a point I haven't you consistent one publicly a So channel data a tracking how getting as help add tracking or what perspective yet, we slightly dollar higher retention last think we which too CAC we are

for a Of side strength note in year. as see is that this course, addition use what external that, multiple gives of of that XX% customer business we to the as well data once of to use case. quarter us was a our you that But expansion the and us that and hybrid use of we for I important point gave disclose of with cases flavor XX% continue on one customers the using

of size investments heard continue ratio to that's that make, that strong When note. And net And XX for about rule you the contributor a with some will of long-term perspective at extremely drives that continue incremental always the XX. so. that with overall leverage, that, case the Docebo do into internal to as we leverage XX about being Rule driving use think growth so we'll rule retention gross fundamental company is the has to the our profitability us, important operating the been and manage about the LC strong case, and assume our us. twice the business are we and we remain think of talk I the see for to Docebo strategy growth when focus to retention and intact, Alessio they being fair it's drivers phase When will also where think think from of of of cornerstone external use effectively see I us you being bigger

Claudio Erba

I we when LCV, use there KPI point correlation add let conversion, a KPI performance, see direct the positive everything. as use case from means, and to number the mentioned cases and the me we to them. of that That Sukaran, goes one the mean you performance. more more cover every KPIs is you this ACC, cover all retention

is is I'm and direct [indiscernible] not why there Docebo, external. this correlation happy plus So with but internal only cover

Richard Tse

think looking started what bigger I years Thanks. then over XX time? when as that's ago at forward say, talk go-to-market. to terms And sort tied of in over you at going the name, you is evolved then made we five about months? like meaningful let's changes And my to of next seems some, maybe how XX you've of I sort we should it expect four, If that. follow-up question get it, Can here look the the

Claudio Erba

the and more Complex multi-use market you scalabilities need positive sophisticated that [indiscernible] business, very that a as another to the we is give as Small another cases, people Docebo different you're know case. stressing Well, from don't using use can required is one the sophisticated peer started that and same market business you learning, admin admin a multiple the own sophisticated [indiscernible] Docebo. uses and way the correlation internal fulgurated over cover. use department needs XX technology to that a more tied the actually then point is with the -- there of that technology the cases means cover The of with is so in buyers. company you Docebo is from its dual the solution. product because a capabilities technology or it's with in technology use as concept perceive case solution perceive old the

to duty say the the the cases the more more organization. biggest use market, is organization. expand have is If only we the is a off cover customer up what challenge wanted So multiple Docebo we more next the in across going next evolve of cases go but to market. more we we in evolve not year the to The I use

only expanding have. So that not expanding use of up market sites, we but in term cases all organizations in the

Richard Tse

Great. Thank you. helpful. That's

Operator

Baer question from Josh Stanley. with next comes go Morgan Please ahead. Your

Matt Wilson

the to could there you Josh larger It longer sales sales sales more the you're customers? year. a point, of like about at for of you Thank of are your more this talked for market the geographies move cycles sounds deals question. details and Back on Wilson verticals kind persist seeing smaller where And pushed or getting down throughout expectations certain Do these it's for this customers Baer. just cycle. little like frequently? elongating nature trend mostly impacting Matt the Is to that maybe the about bit taking elongating impact back. cycles you it's customer think Hi, kind

Alessio Artuffo

Alessio, sales you a Thank environment. been have so theme much. speaking. this in Elongated cycles

making to same I behavior, anybody we that right. also mid-market line. can. The fact causing in seeing environment. buying reason smaller with companies speaking I in more authority this in or not. really levels. I deals inclusion larger Suite, And the thresholds way why whether this absolutely more and of can matrix affect for or changing the deal the all market those And associate spend know again quite believe that deals, or And companies. we're changes seen the the that We in a among is the the own issue more haven't approvals XXXK customers smaller we seeing of this wasn't our certain process within that attribute bring that the involvement more finish is this companies typical that You're type we're involved generally there of over and/or we do than complex sellers you reason small-market the And say can't their of and future is introduction change that can't just C is I mentioned. enterprise, prior don't necessarily metrics the know at above going predict

this haven't but company about even just checking is, try sometimes don't regards themselves inside things is, without do, we know if but report that. signature signal, buyers road changing finding because earlier clear As and cycle it, their in quite understand right, on that interesting we checking getting a doing we're With what not now, environment of end seen to we're in checking, we and and to what we're double will times process is right and the multiple to the the checking communication companies. we're in is the we're are frankly certainly triple this what exactly what

elongated now cycles by buy and product companies inside and the we timing And ago we confusion we that so governs the optimistic you to all used the in remain we one are a everything can. But months different. control this where it's also because way will it's believe factor three

Sukaran Mehta

our of is this from perspective, this the strength. in us cycle think it I is that only that, And point I’d add gives position to that

where CFO LMS, and they this is their to will CTOs C-suite the can of stepping the consolidate platforms, As happening as see the perspective as where multiple consolidation space all approval of into our stepping why what and process. various generating this can solves also our serve you platform we is their we operations also move that, cycle through And question in platforms. firstly, from and the of us revenue federated think kind businesses, need help why more Docebo about of Docebo their of asking a have LMS needs we

Matt Wilson

on hired And That kind Officer then of the earlier incremental investment? Sales year. and more, are you the strategic the this talk one for going maybe the yesterday, about Where Officer priorities you. congrats you announcing Marketing areas helpful. Chief saw Thank announcement we forward was Can like Chief of that. go-to-market? And

Unidentified Speaker

to Alex, perspective. take you want it. Speakers] [Multiple

I the perspective that is of when is, joined much, we we since deeper forget other seniority We needed but a need organizational mean, three our -- [indiscernible] Sukaran, like years. reality And the and Sorry, here XX. XX that from in entangle. need organization. Don’t need not [indiscernible] XX I look mean that Claudio Sukaran at looks we years people

yesterday day And she of me you have by – are have at develop. to this that you that we when opportunity, say, the opportunity, need Nina look looking in don't don't perceive. you one stopped opportunity, office we all Docebo as the start that granted Glenn, the you Toronto So and always see and in from you the activity and

feet sorry, is super us Alessio, [indiscernible]. people executors want So organization. it help and in a this culture kind energetic for great [indiscernible] we of the

Alessio Artuffo

[indiscernible] appreciate Great it. question. Really

those just are we off, senior us, joined folks I First want how have proud to Ryan, and to leaders. Nina management reiterate other having

a goals we in next the know stage very have You the XXX what beyond. the we're what the you the XXX do ARR, priorities. to we level preparing organization need and million get where in the started plus growth, and high are phase At of for past,

So point that's one. number

understand believe execute work they and is CMO, at with how and Creating need up you and immediately revise general is and say we job the two, up to the work that to balance is the and between of alignment true lot sales, right. of and show that execute of of very paramount, what Point is fronts, The requires needed scale. work SAP, how many experience teams lot to continue that to market. is company need globally, to brings on implies point continuing and it scale brand also enterprise that. quickly around on to people continuing a hard affirm of you like to overtime Claudio’s For need that in preparing large with NTT go Nina equally a not course, work deep scale on and that. seniority. of when have a I'd a opportunities two know seat continuing number CSO our in we demand in between we hard and leaders right and people working only a to which Nina Ryan involve we requires motion is organizations like see do we build these the sellers to Definitely very demand the job,

there, markets so, we and -- it's execute done just to government the all and what many opportunities have like – been verticals, leaders that need is all, focusing in certain it on focusing have faster. And there that with that go approaching to

Matt Wilson

you. Thank

Operator

ahead. [Operator Please Instructions] go Capital. Christian Eight Your with from next question comes

Christian Sgro

seeing thanks in Hi. just I Docebo at rates, for landscape Good on and are any frame context my you competitive taking the landscape product? the ask the to of morning, your wanted bidders questions. seeing how Maybe changes could competitive you you're [indiscernible] down win many just for there.

Claudio Erba

mean, are to are So, aggressive compete Which us. good, against more us because, and they that pressure becoming more we to our more great a I sales. puts also is to thing, how competition that competitors and learning means see improve

legacy Just use to LMS, better the I is use case. that eaten they a give you a case by has were Legacy will review game, dinosaurs -- all picture global case consolidation or competitor. cornerstone legacy use

case about is the I I Also use are this this. use think player, do back compared purchased, HCN we But I are when the which players well against landscape, this play we is that. part is of strategy enablement to there vertical area. case, well. with competition that aiming with which horizontally a success a we That name. the positioned we is that to segment a community pays that in in specifically, with pressure coaching which speaks training sales very in same Departmental want another is stronger enablement in knowledge. play, vendor, in to when from [indiscernible] and competitors. is especially strategy, customer a future one LMS competitive SAP consolidation for another vertical I you say is social a features sales game is which is detail great set have This more that the orders competitive now have only landscape see department. but factor, that enablement to and So we is organization language it's but there suffer is storytelling, a it big fragmented Docebo content the a specific little, to organization. think that only sales [indiscernible] extend that if only those very said, of you of -- learning external has enablement gap is are market language We enablement. with it's There imagine and which sales inside would sales The cannot multi the of tools require competitive mean a of players a many is not go biggest already sometimes customer department a share the and those one

Alessio Artuffo

just happy I'd really a Claudio it our about good. really, real that despite continue from really remain like win are still to to very positive Claudio standards industry the we add and in just we're monitor dynamics watch rates Christian, rate, incrementally it, rate changes but and well mentioned, that above win

Christian Sgro

one And for the for follow, I’ll Thanks Sukaran. great. maybe more ask color. That’s

help think I of the trend the with on profile Just in us And that can from near support do you term this would the business, scale model this think balancing be quarter? could where work, maybe about imagine where the land. margin margins gross gross

Sukaran Mehta

quarter. help the them we're comfortable we we we're opportunities we that in give customers the gross we where XX%, more expand a very I messaging, them very We're generally into consistent future. time. in as learning and guide. as in some and yields stay I future, I've perspective from their the that journey but services where this we'll to been than in over happy Yeah, low professional don't from investing Christian, we Not happy to we make and help immediate to sure it happy leverage move general, think margin But consistent continue customers with through long-term our customer help there success leave actually and it them is, we on think, landed see think I operating

than happy low XX%. gross more So to margin in give our

Christian Sgro

helpful. That's taking for my questions. Thanks

Operator

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

Suthan Sukumar

here. EBITDA guys, morning, a touch I quarter. second want on for to flow and on cash and congrats Good the

in kind see -- flow is that or is in you pace which leverage or timing you I of think there's in if of wondering I investments of really guys cash opening expect building your just reflection obviously I'm just that believe improvements any in the operating change EBITDA been a timing had that's do and remarks has or the free modest business. this schedule. in a said to change ahead, the there quarters

Sukaran Mehta

question, Suthan. Yeah, good

I continue through optimize perspective work -- to we think come you're we our hard leverage as come the Majority you the that the of as see the in well. of R&D answer as really that operating is some the system, those you numbers, general seeing G&A, is, course us and unit right? economics. -- can from leverage think about to in

you from as about operating think think and quarters from future G&A continue R&D and bit the general as to leverage will COGS. come so, I And the well, small

-- directional that's from out perspective go basis, from as we it's improve to flow you EBITDA perspective we move I some quarter, at cash free I like had have it would and look modestly incrementally free in seen a and flow they from think I forward. so first prepayments, cash et will annualized cetera, lumpy. or But think a

Suthan Sukumar

products attach about the new metrics with? the modules see especially little Okay, with product great, and know sort bit Can some to that's talk you're respect suite? a you helpful. And going seeing on the strong touched with And you to front, to the cross you some I’m of traction guys of expansion sell. curious rates [indiscernible] what on

Alessio Artuffo

to sort On it comes develop really When stem Alessio implied, think in correctly from Suthan, upsells, sells new to well. view contracts both will in world you they meaning, existing extension, the I fronts relations going we customer grow Sure. that think existing cross an speaking. in that that Hi, ability and are of entity. I

adding lot a is logo aren’t It entities or that using their closer what we're to one sales one sister the buyers affiliated right? a using of one call companies a platform sense is second in are that conversations is not net new the effectively would The motion, slightly with those. different yet

get and better, that leverage and we we better doing So at that.

pleased and scale results scaling proper of And that cross tactic selling. technologies On kind basis of efforts. we've the we're with proper initial to introduced planning. and account for the that a true a methods prerequisite That's

the other big exceed we'd it, upsell front, and plan new to and we modules of words of the one, driver and software you're Where for a market with future, manage go come products new done in the user are only that our it's motion have use product our and we because improvement On like improve and we in correct not monitor that is adoption say, only of for an monetization. back capabilities to report buy jobs really more tie to use the that upsells incremental And to the customers a increases, they which uses incremental many adopt that they it, better plan testament like in they ability strategy our our their to fact what that yield value not actually a software it, usage. believe let's opportunity be where we to increased and cases. in is

do shape as that has fantastic market green about like and Connect, product started we today are -- So Docebo little capture product it, outcomes, that's mix ones products the evolve a to and seeing have like across like succeeding market product bit [indiscernible] how but the rather existing capture ones, but Content share really the coach thinking continues extended enterprise well. and to and our and are we're our Those share. are that then newer we products in continue and that most really

recap the sells. that's So and cross both on upsells

Suthan Sukumar

color. the [indiscernible]. for Great. you I'll Thank

Operator

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

Claudio Erba

of I thank call. all, for the earning was saying you that, first attending

a is for so because which so busy call. get much very got attending you good. this thank many questions, you Second, is today, good, And earning we've these

Thank quarter. much. you Let’s meet next so

Operator

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

Docebo (DCBO) 11 Aug 222022 Q2 Earnings call transcript