Docebo Reports Second Quarter 2025 Results

Executive Summary

• Docebo Inc. reported financial results for the second quarter and first half of fiscal year 2025, announcing a conference call for August 8, 2025.
• The company reported a decline in GAAP net income but an increase in Adjusted Net Income and Adjusted EBITDA, while providing revised full-year guidance indicating slower growth expectations.
• Key operational highlights include a 15% year-over-year increase in subscription revenue, strong growth in Annual Recurring Revenue (ARR), and significant customer wins in the education, non-profit, and retail sectors.

Key Details

• Q2 2025 Financial Highlights (Three Months Ended June 30, 2025):

  • Total Revenue: $60.7 million, a 14% increase year-over-year (13% constant currency).
  • Subscription Revenue: $57.1 million, a 15% increase year-over-year (13% constant currency), representing 94% of total revenue.
  • Gross Profit: $49.1 million (80.9% of revenue), a 15% increase year-over-year.
  • Net Income: $3.1 million ($0.10 per share), compared to $4.7 million ($0.15 per share) in the prior year period.
  • Adjusted Net Income: $8.9 million ($0.30 per share), compared to $7.9 million ($0.26 per share) in the prior year period.
  • Adjusted EBITDA: $9.2 million (15.2% of revenue), compared to $8.0 million (15.0% of revenue) in the prior year period.
  • Free Cash Flow: $11.4 million (18.7% of revenue), compared to $8.4 million (15.9% of revenue) in the prior year period.
  • Cash Flow from Operations: $6.2 million, compared to $6.8 million in the prior year period.

• Six Months Ended June 30, 2025 Highlights:

  • Total Revenue: $118.0 million, a 13% increase year-over-year.
  • Net Income: $4.6 million ($0.15 per share), compared to $9.9 million ($0.33 per share) in the prior year period.
  • Adjusted Net Income: $17.4 million ($0.58 per share), compared to $15.2 million ($0.50 per share) in the prior year period.
  • Adjusted EBITDA: $18.1 million (15.4% of revenue), compared to $15.4 million (14.8% of revenue) in the prior year period.
  • Free Cash Flow: $20.4 million (17.3% of revenue), compared to $17.6 million (16.9% of revenue) in the prior year period.

• Key Performance Indicators (As of June 30, 2025):

  • Annual Recurring Revenue (ARR): $233.1 million, an increase of $27.2 million (13.2%) from $205.9 million at the end of Q2 2024.
  • Average Contract Value (ACV): $58,900, an increase of 11.6% from $52,800 in the prior year period.

• Financial Outlook & Guidance:

  • Q3 2025 Guidance (Three Months Ended Sept 30, 2025):
    • Total Revenue: $61.0 million to $61.2 million.
    • Adjusted EBITDA Margin: 19.0% to 19.5% of total revenue.
  • Full Year 2025 Guidance (Fiscal Year Ended Dec 31, 2025) - Revised:
    • Subscription Revenue Growth: 10.75% to 11.75%.
    • Total Revenue Growth: 10.0% to 11.0%.
    • Adjusted EBITDA Margin: 17.0% to 18.0% of total revenue.
  • Specific Risk Factor Noted in Guidance: Management expects a seven-figure negative impact on ARR base resulting from a large enterprise customer terminating its agreement following an acquisition.

• Customer Updates & Wins:

  • Big 5 US Global Technology Leader: Cross-sell win replacing an internally developed system for Customer and Engineer training.
  • Big Brothers Big Sisters of America (BBBS): Selected Docebo to replace its legacy LMS, focusing on user experience, tech stack integration, and analytics.
  • Global Education Leader: Selected Docebo to replace legacy LMS for K-12, higher education, and professional development across 80+ languages.
  • North American Men’s Fashion Retailer: Selected Docebo for scalable, customized Sales Enablement programs across its retail network.
  • Government Wins: Two new state-level wins in Connecticut and Utah for Employee Experience use cases, plus an upsell in Kentucky.

• Corporate Developments:

  • FedRAMP Authorization: Achieved FedRAMP Moderate Authorization to expand public sector reach.
  • Leadership: Appointment of Mark Kosglow as Chief Revenue Officer.
  • Recognition: Named one of Newsweek’s 2025 Top 100 Global Most Loved Workplaces.

• Conference Call Details:

  • Date: Friday, August 8, 2025, at 8:00 am ET.
  • Dial-in: +1-646-960-0169 or +1-888-440-6849.
  • Webcast: https://docebo.inc/events-and-presentations/default.aspx

Notable Quotes

• “Docebo delivered a solid quarter, outperforming our guidance on both revenue and profitability while maintaining disciplined execution in a still-uncertain macro environment,” said Alessio Artuffo, President & CEO of Docebo. “We continue to invest with focus—advancing our AI-first strategy, strengthening our leadership team with the appointment of Mark Kosglow as Chief Revenue Officer, and achieving FedRAMP Moderate Authorization to expand our public sector reach. These milestones position us well to support our customers’ evolving needs and to drive durable, long-term growth.”