"We are seeing balanced growth across the board from new logo sales, OEM partners, and upsell and cross-sell activity. Although still early, we are also pleased with the customer reception of the launch of the Docebo Learning Suite, as we expand our coverage across the entire enterprise learning lifecycle."

Mr. Erba added, "While the traditional LMS market has been focused on HR skills training and compliance, our customers use Docebo as a productivity enablement tool to address learning challenges enterprises have across operating departments and with their external customers and partners. This dynamic is not pandemic driven, rather it’s ROI driven, and this is why we believe the tailwinds we are seeing are both consistent and sustainable."

Second quarter 2021 financial highlights

• revenue of $25.6 million, an increase of 76% from the comparative period in the prior year
• subscription revenue of $23.6 million, representing 92% of total revenue, and an increase of 76% from the comparative period in the prior year
• revenue for the second quarter included a $1.1 million one-time cumulative catch up of revenue related to a customer contract that previously did not meet all requirements for revenue recognition; excluding this amount, total revenue for the quarter was $24.5 million, an increase of 69% from the comparative period in the prior year.
• gross profit of $20.5 million, or 80% of revenue, decline from the comparative period in the prior year
• net loss of $7.2 million, or $0.22 per share, compared to net loss of $3.5 million, or $0.12 per share for the comparative period in the prior year
• annual recurring revenue as at 30Jun2021of $93.4 million, an increase of $36.4 million from $57.0 million at the end of the second quarter of 2020, or an increase of 64%
• negative adjusted EBITDA2 of $2.0 million, or 8% of revenue, compared to negative $0.9 million or 6% of revenue for the comparative period in the prior year
• negative cash flow generated from operating activities of $0.6 million, compared to positive $0.2 million for the comparative period in the prior year
• negative free cash flow of $0.8 million compared to negative $0.035 million for the comparative period in the prior year
• cash and cash equivalents of $216.3 million as at 30Jun2021 compared to $219.7 million as at 31Dec2020

Second quarter 2021 business highlights

• Docebo is now used by 2,485 customers, an increase from 1,923 customers at the end of 302020
• strong growth in average contract value, calculated as total annual recurring revenue divided by the number of active customers, increasing from $29,616 to $37,569
• signed a new customer agreement with Lululemon, a world-leading retailer in athletic apparel, to provide a comprehensive learning solution to enhance and scale their learning objectives across the globe
• signed a new customer agreement with a global real-estate leader, RE/MAX, LLC, as their learning solution to grow their user adoption, address their user management needs, and create custom dashboards for their use cases
• signed a new customer agreement with Red Roof Inn, an award-winning leader in the lodging industry, as their learning suite to enhance the learning experience for their internal customers and to deliver a better overall experience for their guests
• signed a new customer agreement with JELD-WEN Inc., a leading global manufacturer of high-performance interior and exterior building products, to consolidate their learning systems in order to deliver learning, instructor-led training, and a combination of course and microlearning for ongoing professional development
• signed a new customer agreement with TotalEnergies, a leading French multinational integrated oil, gas, and new-energies company, to help measure and improve the effectiveness of their learning programs with Docebo Learning Impact
• signed a customer expansion agreement with SkinCeuticals to include learning analytics - Docebo’s most recent addition to its multi-product learning suite
• launched Docebo Community, a centralized place to connect with other customers, partners, and Docebo experts to share best practices, get answers, and find inspiration to get the most out of the Docebo experience
• added new OEM partnership agreements with a global IT services and consulting firm and Vartopia; a partnership agreement with Vinsys; and expanded the OEM agreement with MHR and partnership with Bluewater
• subsequent to quarter end, added new OEM partnership agreements with Workspan, KOLABORI and OrchestrateHR