Docebo Inc. (NASDAQ:DCBO) shares closed more than 5% lower on Monday following the company’s Q4 results, with management’s commentary on profitability implying a tough growth backdrop. Quarterly results were solid, with EPS of ($0.04) and revenue of $29.8 million.

The company ended the year with $118 million of ARR (59% growth) and a significantly improved NRR of 113% (versus 108% in 2021). While the newly released learning suite remains unproven (management’s commentary indicates only a small contribution to top-line results), analysts at Berenberg Bank believe the company’s continued focus on enterprise customers offers sustainable up-sell opportunities.

Major focal points from management’s Q4 call included (1) net new ARR of $14 million in Q4, (2) a meaningful improvement in NRR to 113% due to seat expansions, (3) continued efficiency in the business model, and (4) transition to profitability in the back half of 2022.