Docebo Inc. (NASDAQ:DCBO), a cloud-based, SaaS enterprise learning management system, reported strong revenue growth for fiscal 2021, but it incurred a higher loss than in 2020. Shares plunged 5% after the news.

Key 2021 Results

Revenues increased 66% to $104.2 million over the previous year. Subscription revenue came in at $95.9 million, or 92% of total revenue, and a 67% increase year-over-year. Meanwhile, net loss was $13.6 million ($0.41 per share) down from a net loss of $8 million ($0.28 per share) in 2020.

Adjusted EBITDA loss amounted to $8 million compared to an Adjusted EBITDA loss of $2.6 million a year ago. Docebo reported negative free cash flow of $4.4 million in 2021, compared to positive cash flow of $3.7 million in 2020.

The company had cash and cash equivalents of $215.3 million on its balance sheet as of December 31, 2021, compared to $219.7 million as of December 31, 2020.

Management Commentary

Docebo CEO and Founder Claudio Erba said: “The strong momentum that we have experienced throughout 2021 continued in the fourth quarter as we delivered another record quarter of new logo sales adding $14.2 million in net annual recurring revenue. The consistency of our growth both during the pandemic and the years prior to it, reflect the strength of our organic growth engine, which is led by best in class product and backed by strong sales execution, customer success and support. We believe the long-term tailwinds for our industry persist as companies invest in Docebo to better educate their customers and partners while also improving learning and knowledge retention within their organizations at a time when investing in retention, engagement and skills development has never been more critical.”

Docebo’s users base has grown from 2,179 to 2,805 customers in one year.

Q4 Key Developments

Stanley Black & Decker, the world’s largest tools company, selected Docebo for its modern capabilities, including social learning and gamification, to provide external training to customers and partners across multiple business divisions.

During the quarter, Docebo signed a new customer agreement with SolarEdge, a global leader in smart energy technologies, which will use Docebo for employee and customer training. The tech company also signed a new customer agreement with ManpowerGroup, a global leader in innovative workforce solutions, to use Docebo’s Learning Suite to improve the skills of several audiences. In addition, Docebo signed an expansion agreement with BMW to train all departments at their manufacturing facility in Greensville, NC, leveraging Docebo’s extensive standard content offering and creating their own using Docebo Shape.