Docebo (DCBO) Q1 2025 earnings summary

Executive summary

• Leadership transitions include new CMO, CFO, CTO, and upcoming departures of CRO and CPO, with succession planning and new hires focused on scaling for enterprise growth.

• The company is emphasizing an AI-first strategy, launching new capabilities such as agentic automation, enhanced content creation tools, and a credits-based system for AI video presenter.

• Achieved US$225M in Annual Recurring Revenue (ARR) as of March 31, 2025, with 3,978 customers and 900+ employees across global offices.

• Q1 2025 revenue and profitability exceeded guidance, driven by AI-enhanced product capabilities and strategic customer wins, including a leading software platform, NYU Langone Health, and a luxury hotel group.

• Recognized as a leader in enterprise learning management, with strong industry awards and high-profile clients.

Financial highlights

• Q1 2025 revenue was $57.3M, up 11% year-over-year; subscription revenue was $54.2M, up 13.1%, representing 95% of total revenue.

• Gross profit was $45.9M (80.1% margin); adjusted EBITDA margin was 15.6%, and free cash flow margin was 15.7%.

• Adjusted net income for Q1 2025 was $8.5M, with adjusted EPS (diluted) of $0.27.

• Free cash flow of $9M was generated in the quarter.

• Working capital declined to $14.3M from $27.4M year-over-year.

Outlook and guidance

• Full-year revenue guidance was reduced due to macroeconomic headwinds, particularly in retail, manufacturing, and automotive sectors, but FY 2025 guidance was raised for subscription revenue growth of 10–11% and total revenue growth of 9–10%.

• Q2 2025 revenue guidance is $59.0M–$59.2M; Adjusted EBITDA margin 14.5%–15.0%.

• Guidance assumes lower new logo growth in H2, while expansion and retention assumptions remain unchanged.

• No material FedRAMP or large deal revenues are included in the 2025 outlook, representing potential upside.

• Targeting continued expansion in enterprise and government verticals, leveraging FedRAMP certification.