Docebo Inc.

Good morning, everyone, and welcome to the Dolce Vos 2023 third quarter earnings call. All participants are currently in a lesson-only mode. We will open the lines for question and answer session for analysts following the presentation. Instructions will be provided at that time for research analysts to ask questions. We ask that analysts please limit themselves to two questions and return to the queue for any follow-ups. I would now like to turn the call over to Docebo, Vice President of Investor Relations, Mike McCarthy. Please go ahead, Mike.

Thank you, Operator. Before we begin, Docebo would like to remind listeners that certain information discussed today may be forward-looking in nature. Such forward-looking information reflects the company's current views with respect to future events. Any such information is subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected in the forward-looking statements. For more information on the risks, uncertainties, and assumptions relating to forward-looking statements, please refer to Docebo's public filings, which are available on CDAR Plus and EDGAR. During the call, we will reference certain non-IFRS financial measures. Although we believe these measures provide useful supplemental information about our financial performance, they are not recognized measures and do not have standardized meanings under IFRS. Please see our MD&A for additional information regarding our non-IFRS financial including reconciliations to the nearest IFRS measures. Please note that unless otherwise stated, all references to any financial figures are in U.S. dollars. Now, I'd like to turn the call over to DeXebo's CEO, Claudio Erba. Claudio?

Hello, everybody, and thank you for joining us for our third quarter earning call. With me today are Alessio Tuffo, our president and COO, and Sukhara Mehta, our CFO. I will begin our call this morning with a short summary of our Q3 results and business update. We are pleased to report that subscription revenue increased by 27 percent, and total revenues grew by 26 percent in September's quarter, with the total revenues exceeding the upper end of our guidance range. Net ARR added during the quarter was 10.1 million after adjusting for the impact of foreign exchange. ARR growth was solid, reflecting our strengthening horizontal go-to-market motion across the enterprise segment as well as the government vertical. Docebo continued to demonstrate a profitable high-growth business with adjusted BDA exceeding our guidance. We delivered an adjusted BDA margin of 9.7% as well as a solid pre-cash flow of 18% of revenue during the quarter. In general, global macroeconomic trends have remained consistent through the year, with larger, more complex deals still taking time to finalize. But we did not see any noticeable deterioration, and our pipeline in the enterprise segment remains strong. SMB customers continue to be cautious. Geographically, the US was a more active market compared to Europe, which was seasonably slower during Q3. After three years in a totally virtual format, we hosted a record number of participants at our annual customer conference, Decebo Inspire, in Nashville. It was exciting to see this community of current and potential new customers bring with them their enthusiasm for learning and their interest in the Decebo platform. During this year's event, we announced four new platform updates that included Decebo for Microsoft Teams, Decebo Community Hub, Docevo Learning Sites, and the preview of Docevo Shape 2.0. Docevo for Microsoft Teams enables learning in the flow of work. It helps to streamline learning, communication, and collaboration by eliminating the need for separate platforms while saving time and ensuring a productive experience for the learner. Customizable dashboards with Teams can be personalized for different internal and external use cases, driving higher adoption. The table community is an extension of our platform designed to allow customer to create community of knowledgeable champions. If purpose is to facilitate knowledge sharing and collaboration and engagement, and then power our customer to expand their internal and external learning programs through connections. was led by the peer-to-team which we have acquired in the first half of 2023. It showcases our efficient M&A strategy, illustrating the table's quick integration and utilization of newly acquired technology and engineers. As our platform expands in depth and in breadth, we are collecting an increasing amount of data about learners and the outcome of our customer training programs. With the launch of the table learning site, powered in partnership with QuickSight from Amazon Web Services, we are helping our customers utilize this data efficiently within their Learn elements. By simplifying the creation of custom data boards and providing relevant reports, we are empowering our customers to track the impact of their training programs more effectively. Finally, as some of you have seen at Docebo Inspire, DeceboShape will fundamentally change how training material is created and consumed. We announced a number of features that we will start rolling out in 2024. Two features that I'm particularly excited about are virtual role play and AI panel features. InShape users can create a role play scenario with an AI virtual agent. These allow learners to practice specific conversation skills. Initially, we have focused on the sales enablement use case, creating a virtual role-play AI brain that helps the sales reps practice their sales pitch, but we see multiple use case application that will incorporate in our product roadmap. Moreover, with shape AI panel, customers have full control over how their proprietary data is used and shared among their learners. Now, to capital allocation. Our balance sheet strength and financial profile enables Docebo to invest in innovation and gain further ground while competitors are consolidating and cutting costs. Our capital allocation strategy remains unchanged and is focused on two years, selective M&A and the efficient return of capital to our shareholders. In conclusion, despite facing macroeconomic and global political challenges, Our priority is to provide innovative and efficient solutions for our customer. Our customer view, both external and internal learning, is crucial in this environment. We continue to strive to deliver cutting-edge innovation to our customer with the goal of providing quality, profitable growth for our shareholders. Now, I would like to turn the call to over Alessio, who will give you an operational update.