Breaking Down Docebo Inc. (DCBO) Financial Health: Key Insights for Investors

Are you looking to understand the financial strength of Docebo Inc. (DCBO) and what it means for investors? Did you know Docebo's total revenue reached $216.9 million in fiscal year 2024, marking a 20% increase from the previous year? With subscription revenue accounting for 94% of this total, and a gross profit of $175.6 million, how sustainable is this growth? Dive in to uncover key insights into Docebo's profitability, debt management, and future growth prospects, helping you make informed investment decisions.

Docebo Inc. (DCBO) Revenue Analysis

Understanding Docebo Inc.'s revenue streams is crucial for investors seeking insights into the company's financial health and growth potential. Docebo Inc. is a learning platform provider that uses artificial intelligence. Here's a breakdown of Docebo's revenue streams:

Breakdown of Primary Revenue Sources:

• Subscription Revenue: This constitutes the majority of Docebo's revenue. For the fiscal year 2024, subscription revenue was $204.3 million, representing 94% of the total revenue. In Q4 2024, subscription revenue reached $54.0 million, accounting for 95% of the total revenue for the quarter.
• Professional Services Revenue: This includes initial implementation, project management, and training services.

Year-over-Year Revenue Growth Rate:

• Docebo has demonstrated strong year-over-year revenue growth. In 2024, the total revenue reached $216.9 million, marking a 20% increase compared to the previous year.
• In the quarter ending December 31, 2024, Docebo's revenue was $57.04 million, a 15.75% increase.

Contribution of Different Business Segments to Overall Revenue:

Docebo operates primarily as a single operating and reporting segment, focusing on its cloud-based learning platform. The revenue streams are mainly divided into subscription services and professional services.

• Subscription Revenue: $204.3 million (94% of total revenue in 2024)
• Professional Services: The remaining portion of the total revenue comes from professional services.

Analysis of Significant Changes in Revenue Streams:

There has been a consistent increase in both subscription and total revenue, highlighting Docebo's growth trajectory. The company's focus on AI-driven learning solutions and the introduction of new products such as AI Authoring, Advanced Analytics, and Communities have strengthened its market position.

The following table summarizes Docebo's revenue performance over recent years:

Docebo's strategic focus on expanding its AI-driven platform and enhancing its product offerings has led to a growing customer base and increased contract values. As of December 31, 2024, Docebo had 3,978 customers, with an Average Contract Value of $55,229.

For more insights into Docebo's mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of Docebo Inc. (DCBO).

Docebo Inc. (DCBO) Profitability Metrics

Analyzing Docebo Inc.'s profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, which are crucial for understanding how effectively Docebo manages its costs and generates earnings.

Here's what we'll cover:

• Gross Profit: The revenue remaining after deducting the cost of goods sold (COGS). It indicates the efficiency of production and pricing strategies.
• Operating Profit: Calculated by subtracting operating expenses from gross profit, it reflects the profitability of core business operations before interest and taxes.
• Net Profit: The profit remaining after all expenses, including interest and taxes, are deducted from revenue. It represents the actual profit available to the company's owners.

Let's delve into each of these metrics to assess Docebo's financial performance.

Understanding Docebo's profitability requires a detailed look at its financial statements. For instance, analyzing the trend of gross profit margins over the past few years can reveal whether the company is improving its cost management or if pricing pressures are affecting its profitability. Similarly, examining the operating profit margin helps investors understand how well Docebo controls its operating expenses. The net profit margin, as the bottom line, indicates the overall profitability of the company after all expenses are accounted for.

A comparison of Docebo's profitability ratios with industry averages provides a benchmark for assessing its competitive position. If Docebo's gross profit margin is higher than the industry average, it suggests that the company has a competitive advantage in terms of production efficiency or pricing power. However, if its net profit margin is lower, it may indicate higher operating or interest expenses compared to its peers.

Operational efficiency is a critical component of profitability. Effective cost management and favorable gross margin trends can significantly boost a company's bottom line. For example, if Docebo can reduce its cost of goods sold or streamline its operating processes, it can improve its profitability ratios and attract more investors.

To provide a clearer picture, here is an example of how profitability metrics might be analyzed (note that this is a hypothetical example and not actual data from Docebo):

In this hypothetical scenario, Docebo's profitability metrics show a positive trend from 2022 to 2024. The gross profit margin increased from 75% to 79%, indicating improved cost management or pricing strategies. The operating profit margin rose from 10% to 14%, suggesting better control over operating expenses. The net profit margin also increased from 5% to 7%, reflecting overall enhanced profitability. Furthermore, Docebo's margins are higher than the industry average, suggesting a competitive advantage.

Understanding these trends and comparisons is vital for investors. For more insights into Docebo, you might find this resource helpful: Exploring Docebo Inc. (DCBO) Investor Profile: Who’s Buying and Why?

Docebo Inc. (DCBO) Debt vs. Equity Structure

Understanding how Docebo Inc. (DCBO) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its activities. By examining these elements, investors can gain insights into Docebo's financial stability and risk profile.

As of the fiscal year 2024, Docebo Inc. (DCBO) exhibits the following debt structure:

• Long-term debt: While specific figures for 2024 aren't available, analyzing previous trends indicates a strategic approach to long-term debt. For instance, Docebo’s long-term debt increased from $6.7 million (USD) in 2020 to $63.7 million (USD) in 2021 to finance the acquisition of Skillsoft.
• Short-term debt: Details on Docebo's short-term debt for 2024 are not available in the provided search results.

The debt-to-equity ratio is a key metric to assess the balance between debt and equity financing. While the exact debt-to-equity ratio for 2024 isn't specified, we can infer insights from past financial activities. For example, the significant increase in long-term debt in 2021 due to the Skillsoft acquisition would have temporarily altered this ratio. Generally, a ratio below 1.0 is considered healthy, indicating that the company relies more on equity than debt.

Recent activities, such as debt issuances or refinancing, play a significant role in shaping Docebo's capital structure. For instance, the company completed a bought deal short form prospectus offering, issuing 2,968,000 common shares at a price of $34.70 (CAD) per share, resulting in gross proceeds of approximately $103 million (CAD). Additionally, Docebo issued 830,000 common shares on a flow-through basis at $42.20 (CAD) per share, with gross proceeds of about $35 million (CAD). These equity offerings suggest a strategic move to strengthen the balance sheet and fund growth initiatives without increasing debt.

Docebo strategically balances debt and equity financing to support its growth. Equity financing, like the common share offerings, helps fund operations and expansions without incurring additional debt. This approach provides financial flexibility and reduces the risk associated with high debt levels. The company's ability to raise substantial equity indicates strong investor confidence and supports its long-term strategic objectives. For further insights into the company's strategic direction, refer to: Mission Statement, Vision, & Core Values of Docebo Inc. (DCBO).

In summary, while specific debt figures for the fiscal year 2024 are not detailed in the search results, Docebo's past financial activities and strategic equity offerings provide a picture of a company focused on balancing its capital structure to support sustainable growth and strategic acquisitions.

Docebo Inc. (DCBO) Liquidity and Solvency

Analyzing Docebo Inc.'s financial health involves a close examination of its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term obligations and sustain its operations in the long run.

Liquidity Ratios:

Docebo's liquidity can be assessed using the current and quick ratios. These ratios indicate whether the company has sufficient liquid assets to cover its short-term liabilities. Here's what to consider:

• Current Ratio: Calculated by dividing current assets by current liabilities. A ratio above 1 indicates that Docebo has more current assets than liabilities.
• Quick Ratio: Similar to the current ratio, but excludes inventory from current assets. This provides a more conservative view of liquidity, focusing on the most liquid assets.

Working Capital Trends:

Monitoring Docebo's working capital trends is crucial. Working capital, which is the difference between current assets and current liabilities, reflects the company's operational efficiency and short-term financial health. A positive and increasing working capital balance typically indicates a healthy liquidity position, while a decreasing or negative balance may signal potential issues.

Cash Flow Statements Overview:

The cash flow statement provides a comprehensive view of Docebo's cash inflows and outflows, categorized into operating, investing, and financing activities. Key trends to watch include:

• Operating Cash Flow: Positive and growing cash flow from operations indicates that Docebo's core business is generating sufficient cash to fund its activities.
• Investing Cash Flow: This section shows how Docebo is using cash for investments, such as property, plant, and equipment (PP&E). Significant outflows in this area may indicate expansion or strategic investments.
• Financing Cash Flow: This reflects how Docebo is raising capital through debt or equity. Monitoring this can reveal the company's financing strategies and its reliance on external funding.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital trends, and cash flow statements, it is important to identify any potential liquidity concerns or strengths. For example:

• Strengths: Consistently positive operating cash flow and healthy liquidity ratios suggest a strong ability to meet short-term obligations.
• Concerns: Declining working capital or negative operating cash flow may indicate potential liquidity issues that require further investigation.

For more insights into Docebo Inc.'s strategic direction, you might find this resource helpful: Mission Statement, Vision, & Core Values of Docebo Inc. (DCBO).

Docebo Inc. (DCBO) Valuation Analysis

Assessing whether Docebo Inc. (DCBO) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. These elements, when combined, provide a comprehensive view of the company's valuation.

To determine Docebo Inc.'s (DCBO) valuation, several key metrics should be considered:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of Docebo Inc.'s (DCBO) earnings. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers.
• Price-to-Book (P/B) Ratio: The P/B ratio compares Docebo Inc.'s (DCBO) market capitalization to its book value. It can help investors determine whether they are paying too much for the company's net assets.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares Docebo Inc.'s (DCBO) enterprise value to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure than P/E, as it considers debt and capital expenditures.

Analyzing Docebo Inc.'s (DCBO) stock price trends over the past year, or longer, can reveal important insights into market sentiment and investor confidence. A consistent upward trend may suggest strong market confidence, while a downward trend could indicate concerns about the company's future performance. Significant price volatility could also reflect market uncertainty or speculative trading.

As of April 2025, Docebo Inc. (DCBO) does not offer a dividend yield, so dividend payout ratios are not applicable.

Monitoring analyst consensus on Docebo Inc.'s (DCBO) stock valuation provides an external perspective. Analysts typically issue ratings such as 'buy', 'hold', or 'sell', reflecting their expectations for the stock's future performance. A consensus of 'buy' ratings suggests that analysts believe the stock is undervalued, while a 'sell' consensus indicates potential overvaluation.

For additional insights into Docebo Inc.'s (DCBO) strategic direction, see Mission Statement, Vision, & Core Values of Docebo Inc. (DCBO).

Docebo Inc. (DCBO) Risk Factors

Docebo Inc. (DCBO) faces a variety of internal and external risks that could significantly impact its financial health. These risks span across industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Industry Competition: The learning management system (LMS) market is highly competitive. Docebo competes with a wide range of vendors, from large established players like SAP and Oracle, to niche providers offering specialized solutions. This intense competition can put pressure on pricing and market share, potentially impacting revenue growth and profitability.

Regulatory Changes: Changes in data privacy regulations, such as GDPR in Europe or similar laws in other jurisdictions, could increase compliance costs and restrict Docebo's ability to collect and use user data. Furthermore, regulations related to online learning and content accessibility may also require ongoing adjustments to the platform, adding to operational expenses.

Market Conditions: Economic downturns or shifts in corporate spending priorities can affect the demand for LMS solutions. During periods of economic uncertainty, organizations may reduce investments in training and development, impacting Docebo's sales cycle and revenue projections.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: These include the challenges of managing a rapidly growing global workforce, maintaining platform uptime and security, and ensuring customer satisfaction. Any significant disruptions in these areas could lead to customer churn and reputational damage.
• Financial Risks: Docebo's financial health could be affected by fluctuations in foreign exchange rates, particularly as it expands its international operations. Additionally, the company's ability to manage its cash flow and maintain adequate liquidity is critical for funding its growth initiatives.
• Strategic Risks: Strategic risks involve the need to continuously innovate and adapt to evolving market demands. Failure to anticipate technological shifts or emerging customer needs could render Docebo's platform obsolete.

While specific mitigation strategies are not always detailed publicly, Docebo likely employs several approaches to manage these risks. These may include:

• Diversification: Expanding its product offerings and targeting different customer segments to reduce reliance on any single market or vertical.
• Compliance Programs: Investing in robust data privacy and security measures to comply with relevant regulations and protect customer data.
• Financial Planning: Implementing prudent financial management practices to maintain healthy cash reserves and manage debt levels.
• Innovation: Continuously investing in research and development to enhance its platform and stay ahead of the competition.

For further insights into Docebo's strategic direction, see: Mission Statement, Vision, & Core Values of Docebo Inc. (DCBO).

Docebo Inc. (DCBO) Growth Opportunities

Docebo Inc. (DCBO) demonstrates promising future growth prospects driven by several key factors. These include product innovation, strategic market expansions, and synergistic acquisitions. These elements collectively contribute to the company's potential for sustained revenue growth and enhanced earnings.

Key growth drivers for Docebo include:

• Product Innovations: Docebo continuously enhances its learning platform with new features and capabilities, attracting new customers and retaining existing ones.
• Market Expansions: Docebo strategically targets new geographic regions and industries, broadening its customer base and revenue streams.
• Acquisitions: Docebo acquires complementary businesses to expand its product offerings and market reach, creating synergistic growth opportunities.

Docebo's strategic initiatives and partnerships further bolster its growth trajectory. These collaborations enhance its market position and drive future expansion.

A key competitive advantage for Docebo lies in its innovative AI-powered learning platform, which personalizes the learning experience and improves learning outcomes. This technological edge helps Docebo stand out in a crowded market.

Here's a look at some potential future growth projections for Docebo:

For more insights into Docebo's mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of Docebo Inc. (DCBO).

Docebo's commitment to innovation, strategic expansions, and customer satisfaction positions it well for continued success in the learning management systems market.