Docebo (NASDAQ:DCBO) reported a significant jump in fourth-quarter profitability on Friday, with net income rising to $26.9 million, or $0.93 per share, compared to $11.9 million, or $0.39 per share, in the prior-year period.
The results highlight the learning platform provider’s successful pivot toward higher-margin software-as-a-service (SaaS) revenue and increased operational efficiency.
Total revenue for the quarter reached $63 million, an 11% increase over the same period last year.
Subscription revenue, which now accounts for 94% of the company's total top line, grew 9% to $59.1 million.
While a weakening U.S. dollar provided a modest 2-percentage-point tailwind, the company maintained steady organic growth driven by its AI-integrated enterprise training tools.
The company’s Annual Recurring Revenue (ARR) hit $238.1 million, up 8.4% year-over-year.
Notably, Docebo has successfully reduced its reliance on its largest OEM customer, which now accounts for just 4.4% of ARR, down from nearly 10% a year ago.
Excluding that specific client and adjusting for currency fluctuations, ARR growth was a more robust 12.5%.
Profitability metrics also showed broad improvement, with adjusted EBITDA reaching $13.3 million—representing 21.2% of total revenue, up from 16.7% a year earlier.
Free cash flow also strengthened to $12.3 million.
Despite a slight dip in gross margin to 79.8% due to ongoing product investments, the company’s bottom-line performance surpassed its previous guidance, reflecting a maturing business model in the competitive corporate LMS market.