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NEW YORK - Docebo Inc (TSX:DCBO). (NASDAQ:DCBO) shares tumbled 16.7% after the learning platform provider reported fourth-quarter revenue that fell short of expectations and issued disappointing guidance for the current quarter.
The company posted revenue of $54 million for the fourth quarter, missing analyst estimates of $56.25 million. Adjusted earnings per share came in at $0.28, slightly above the $0.27 consensus forecast.
For the first quarter of 2025, Docebo expects revenue between $57 million and $57.2 million, below Wall Street’s projection of $58.55 million.
"We are pleased to announce Q4 and annual results, with revenue beating our expectations and profitability coming in at the high end of our guidance even as we invest in our growth initiatives," said Alessio Artuffo, President and CEO.
Despite management’s positive tone, investors appeared focused on the revenue miss and soft outlook. The company’s subscription revenue, which made up 95% of total revenue, grew 16% YoY to $54 million in Q4.
Docebo added $9.2 million in annual recurring revenue during the quarter, down from $10.8 million added in the same period last year. Total (EPA:TTEF) ARR reached $219.7 million as of December 31, 2024, up 13.1% from $194.3 million a year earlier.
The company’s customer base expanded to 3,978 at the end of 2024, an increase from 3,759 customers at the end of 2023. Average contract value rose 6.8% YoY to $55,229.
While Docebo highlighted new customer wins and expanded relationships with existing clients, the steep stock decline suggests investors were hoping for stronger growth from the AI-driven learning platform provider.
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