Docebo (DCBO) Q2 2024 earnings summary

Executive summary

• Achieved $206M in Annual Recurring Revenue (ARR) as of June 30, 2024, with 3,898 customers and 900+ employees across 8 global offices.

• Strong quarter driven by enterprise and government segments, with continued focus on upmarket expansion, large customer wins, and AI innovation.

• 94% of revenue is from subscriptions, with a 42% subscription revenue CAGR from 2020 to 2023.

• Strategic partnerships, notably with Deloitte and Carahsoft, are expected to significantly impact the pipeline across government and commercial sectors.

• Recognized as a core leader in learning systems by Fosway and awarded multiple Brandon Hall Group Excellence in Technology Awards.

Financial highlights

• Q2 2024 total revenue was $53.1M, up 22% year-over-year; subscription revenue was $49.8M, 94% of total revenue.

• ARR reached $206M, with enterprise customer cohort revenue up 30% year-over-year.

• Adjusted EBITDA margin was 15.0%, up from 7.0% in Q2 2023; Adjusted net income for Q2 2024 was $7.9M ($0.26/share).

• Free cash flow margin was 15.9%, with $8.4M generated in Q2 2024.

• Average contract value increased to $71,000, up from $59,000 last quarter and 70% higher than two years ago.

Outlook and guidance

• Guidance raised for the year, reflecting strength in enterprise and government segments; Q3 2024 revenue guidance: $54.0M–$54.2M, Adjusted EBITDA margin: 15.0%–15.5%.

• FY 2024 revenue growth expected between 18.0%–19.0%; Adjusted EBITDA margin: 15.0%–15.5%.

• Strategic focus on achieving operating leverage while maintaining growth, targeting sales and marketing at 30–35% of revenue, R&D at 16–18%, and G&A at 10–12%.

• Expects to receive FedRAMP certification in 2024, supporting government segment expansion.

• Large deal pipeline includes several strategic, seven-figure opportunities in both government and enterprise.