Docebo, the provider of a SaaS-based learning management system (LMS), reported a non-GAAP EPS of USD 0.09 in Q1 2023, above the consensus estimate of USD 0.04 per share. The company reported revenue growth of 29% YoY to USD 41.5 million in Q1 2023, beating the analyst estimate by 0.28%, while annual recurring revenue (ARR) rose 28% YoY to USD 164.9 million. 

At the segmental level, the growth in top line was supported by increases in: 1) subscriptions (up 33% YoY; ~94% share of total revenue) and 2) professional services (down 10.7% YoY; 6% share of total revenue). Additionally, Docebo's customer base expanded by 19% YoY to reach 3,506 customers by the end of Q1 2023. 

Docebo’s gross margin increased by 1 percentage point (pp) YoY to 80.6% in Q1 2023. The operating loss narrowed to USD 376,000 in Q1 2023 compared to USD 6.9 million the previous year, mainly driven by the growth in top line. Adjusted EBITDA was USD 2.2 million in Q1 2023 compared to an adjusted EBITDA loss of USD 1.3 million in Q1 2022. 

The company expects its revenue for Q2 2023 to be within the range of USD 42.9 million to USD 43.2 million. Additionally, the gross profit margin is expected to be between 80.0% and 81.0%, and adjusted EBITDA margin is expected to be between 5.5% and 6.5%.

During the quarter, notable customer acquisitions for Docebo included: 1) a Europe-based transportation and logistics solutions company operating in 160+ countries; 2) Vimeo, a video experiences platform; 3) Terex Corporation, a global manufacturer specializing in materials processing machinery and aerial work platforms; 4) Freedom Mortgage, a US-based mortgage company; 5) Knauf Gips KG, a German manufacturer of construction materials; and 6) Kornit Digital, an Israel-based market provider in sustainable fashion and textile production technologies.

Analyst QuickTake: Docebo continues to achieve profitability reflecting its strong business performance, fueled by a growing customer base. The company's ability to establish partnerships with global organizations demonstrates its effectiveness in addressing a wide array of training and development requirements. To maintain its growth trajectory, Docebo plans to continue making strategic investments in innovation, sales, and marketing.