Group 1 - The core thesis for investing in Docebo (NASDAQ: DCBO) is based on the belief that the business can sustain long-term growth due to its large Total Addressable Market (TAM) [1] - The investment strategy focuses on identifying undervalued companies with significant long-term growth potential, combining value investing principles with a long-term growth perspective [1] - The approach emphasizes purchasing quality companies at a discount to their intrinsic value and holding them to allow for compounding of earnings and shareholder returns [1]

Docebo (DCBO) FY Conference Summary Company Overview - Docebo is a global cloud-based learning technology software company that has transitioned towards an AI-first positioning. It is dual-listed, having started its public journey in Canada with a TSX listing and is now also listed in the US [2][4]. Key Financial Performance - Docebo reported Q2 earnings, beating and raising revenue guidance by approximately 1%. This follows a previous reduction in guidance due to macroeconomic weakness observed in sectors such as manufacturing, retail, and automotive, which constituted about one-third of the pipeline [4][14]. - The company experienced strong performance in the mid-market segment, particularly with contracts valued between $50,000 to $100,000, indicating a return to spending confidence among customers [6][8]. - The enterprise segment continues to face elongated sales cycles, with no significant change from Q1 to Q2 [9][10]. Market Dynamics - The macroeconomic environment has shown signs of improvement, particularly in the mid-market, which contributed to the raised guidance. Factors influencing this include favorable foreign exchange rates and stronger professional services [13][14]. - Docebo's international footprint is significant, with 25-30% of revenue coming from foreign markets, primarily in Europe rather than Canada [15][16]. Customer Segments and Retention - Smaller clients, which make up about 20% of the overall business, are considered stable despite having lower gross retention compared to mid-market and enterprise clients. These customers typically have low acquisition costs and quick sales cycles [19][20]. - The company is focusing on larger enterprise clients, with ongoing opportunities in its pipeline, particularly in H2, which is traditionally stronger for enterprise sales [8][9]. Strategic Partnerships and Competition - Docebo has partnerships with major technology vendors, including AWS and Google. AWS is transitioning to an internal system after a successful collaboration, while Google is adopting Docebo for its learning management needs due to its scalability and security features [21][26][29]. - The competitive landscape in the FedRAMP space is limited, with only a few vendors approved, which positions Docebo favorably for government contracts [56][59]. Growth Opportunities - The company is exploring various use cases across different sectors, including quick-service restaurants (QSR) and federal government contracts. The QSR sector is particularly attractive due to high employee turnover and the need for effective training solutions [50][51][53]. - Docebo's recent FedRAMP approval has accelerated its pipeline development, with expectations to secure more substantial government contracts starting in 2026 [61][63]. Product Development and Innovation - Docebo is actively rolling out AI-driven products, including Docebo Creator and Harmony Search, aimed at enhancing user experience and productivity [72][73]. - The company is balancing the need for innovation with maintaining EBITDA margins, targeting a gradual increase to 25% EBITDA margins over the next three years [78][79]. Capital Allocation Strategy - Docebo is focused on reinvesting cash into growth avenues, strategic share buybacks, and pursuing M&A opportunities when favorable conditions arise [82][83]. Conclusion - Docebo is navigating a complex macroeconomic landscape while capitalizing on growth opportunities in both the mid-market and enterprise segments. The company's strategic focus on AI innovation and government contracts positions it well for future growth, despite challenges in the enterprise sales cycle and competition in the learning management system space.

Core Insights - Docebo Inc. reported quarterly earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and showing an increase from $0.26 per share a year ago, resulting in an earnings surprise of +45.00% [1] - The company achieved revenues of $60.73 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.91% and up from $53.05 million year-over-year [2] - Docebo has outperformed consensus EPS estimates three times in the last four quarters and has topped revenue estimates four times in the same period [2] Financial Performance - The earnings surprise of +45.00% for the recent quarter follows a previous surprise of +28.57% when actual earnings were $0.27 against an expectation of $0.21 [1] - The current consensus EPS estimate for the upcoming quarter is $0.26, with expected revenues of $59.99 million, and for the current fiscal year, the consensus EPS is $1.07 on revenues of $237.46 million [7] Market Position - Docebo shares have declined approximately 35.1% since the beginning of the year, contrasting with the S&P 500's gain of 7.8% [3] - The Zacks Industry Rank places the Internet - Software sector in the top 33% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] Future Outlook - The sustainability of Docebo's stock price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The estimate revisions trend for Docebo was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Docebo reported a strong performance in Q2 2025, with a notable increase in customer count above $100,000, ramping up to 23% from 16% in the previous quarter, attributed to new customer acquisitions and expansions [74][75]. - The company experienced a favorable foreign exchange impact, contributing 1% to total revenues and 2% to subscription revenues [21]. Business Line Data and Key Metrics Changes - The mid-market segment showed significant strength, with technology, healthcare, and financial services sectors contributing to this growth [6][8]. - The percentage of new customers using two or more use cases decreased to 65%, down from 70-80% in the previous year, indicating a shift in customer purchasing behavior [9][10]. Market Data and Key Metrics Changes - The government sector, particularly after achieving FedRAMP certification, is expected to unlock a total addressable market of $2.7 billion across federal, state, and local agencies [27][28]. - The company is currently penetrating about 10 states in the government sector, with a 10% penetration rate, indicating substantial growth potential [31]. Company Strategy and Development Direction - Docebo is transitioning to an AI-first learning platform, with the launch of Harmony, which enhances user experience through advanced AI capabilities [41][42]. - The company is focusing on integrating sales and customer success functions to improve execution efficiency and customer value [55][56]. Management's Comments on Operating Environment and Future Outlook - Management noted that while there are elongated sales cycles in the enterprise space, the mid-market sector continues to perform strongly, and they expect this trend to persist [21][70]. - The company anticipates meaningful contributions from the federal sector in 2026, driven by recent certifications and a growing pipeline [28][90]. Other Important Information - Docebo is actively investing in headcount and R&D to accelerate its AI roadmap, while also engaging in share buybacks when shares are deemed attractively valued [85][86]. - The company is leveraging its existing customer base to introduce new products like Harmony without immediate monetization, focusing on building usage and value first [66][67]. Q&A Session Summary Question: Strength in the mid-market segment - Management confirmed strong performance in the mid-market, particularly in technology, healthcare, and financial services, and expressed optimism about continued strength in future quarters [6][8]. Question: Decrease in multi-use case adoption - Management explained that the decrease in customers using multiple use cases is due to a strategic approach to penetrate organizations with fewer use cases initially, allowing for trust-building and future expansion [10][11]. Question: FedRAMP certification impact - The achievement of FedRAMP certification is expected to significantly enhance the government pipeline, with management expressing excitement about potential deals in 2026 [27][28]. Question: New CRO's impact on sales - Management indicated that the new CRO is already making an impact by focusing on short-term wins and improving execution efficiency, with a long-term view of blending sales and customer success functions [32][35]. Question: AI innovation and monetization - Management highlighted the transition to an AI-first platform with the launch of Harmony, emphasizing the importance of delivering value before monetization strategies are implemented [41][66]. Question: Capital allocation priorities - Management outlined three areas for cash deployment: investing in business growth, share buybacks, and potential M&A opportunities, emphasizing a strategic approach to capital allocation [85][86].

AUGUST 2025 Investor Presentation Note: All financials presented are in US$ unless otherwise noted. Disclaimer General This presentation is property of Docebo Inc. (the "Company", "Docebo", "us" or "we"). It cannot be circulated or forwarded without our consent. Any graphs, tables or other information demonstrating our historical performance or that of any other entity contained in this presentation are intended only to illustrate past performance and are not necessarily indicative of our or such entities' ...

Company Performance - Docebo Inc. reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and up from $0.23 per share a year ago, representing an earnings surprise of 28.57% [1] - The company posted revenues of $57.3 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.32% and increasing from $51.4 million year-over-year [2] - Over the last four quarters, Docebo has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Docebo shares have declined approximately 28.5% since the beginning of the year, compared to a decline of 3.7% for the S&P 500 [3] - The current Zacks Rank for Docebo is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $59.2 million, and for the current fiscal year, it is $1.22 on revenues of $240.39 million [7] - The outlook for the industry, specifically the Internet - Software sector, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Core Insights - Docebo is recognized for its commitment to transforming learning technology, driving business success globally [1][2] - The company has achieved Diamond Level Smartchoice® Preferred Provider status, reflecting its high standards and innovative solutions in learning and development [3][4] Company Overview - Docebo is redefining enterprise learning through an AI-driven platform that integrates content creation, delivery, and personalization [4][8] - The company aims to empower organizations to build agile, high-performing teams and create meaningful changes in learning and work [2][4] Industry Recognition - Brandon Hall Group, a leading independent analyst firm, confirms that Docebo's offerings provide measurable benefits to organizations [5] - The Smartchoice® Preferred Provider Program offers resources and advisory support to ensure that Docebo maintains its high certification standards [3][5] Leadership Perspective - CEO Alessio Artuffo emphasizes that Docebo is evolving beyond a traditional LMS to become a comprehensive enterprise learning platform [4] - The recognition from Brandon Hall Group is seen as validation of Docebo's innovative approach to solving real problems at scale [4]

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Financial Data and Key Metrics Changes - Docebo reported an increase in average annual contract value (ACV) from $70,000 to $83,000 per new customer, reflecting a 17% year-over-year growth [48] - The company achieved a net retention rate (NDRR) of 100%, down from 104%, primarily due to a large customer downgrade and a 40% increase in contracts up for renewal in 2024 compared to 2023 [104][105] Business Line Data and Key Metrics Changes - The launch of three new product modules, including community and analytics components, has positively impacted customer adoption and revenue [11][12] - The attachment rates for new products launched late last year exceeded expectations, contributing to the overall growth in new logo ACV [75] Market Data and Key Metrics Changes - Docebo serves over 40 million users globally, with expectations to reach approximately 100 million users in the next five years [13] - The company is experiencing strong demand in the mid-enterprise and enterprise markets, particularly for deals above $500,000 in ARR or ACV [98] Company Strategy and Development Direction - The strategic vision is to transform Docebo from an enterprise LMS to an AI-first learning platform that addresses a broader set of learning needs [15][17] - The company plans to leverage generative AI to enhance user engagement and automate various tasks within the platform [31][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive position and the impact of new product releases on customer engagement and market share [10][11] - The company anticipates achieving authority to operate (ATO) status with FedRAMP by the end of Q3, which will enable bidding on government contracts [24][27] Other Important Information - Docebo has a cash reserve of approximately $92 million, with plans for potential stock buybacks and strategic acquisitions to enhance growth [86][88] - The company is focusing on internal upskilling initiatives, including launching an AI academy for employees [84] Q&A Session Summary Question: Update on competitive position and product adoption - Management noted satisfaction with the early impact of new product modules and emphasized the company's strong market position as an enterprise LMS [11][12] Question: FedRAMP activities and impact on customer engagement - The audit process for FedRAMP is progressing well, with expectations to achieve ATO status by the end of Q3, which aligns with government modernization efforts [24][25] Question: Insights on Agentic AI offering - The Agentic AI strategy aims to enhance user engagement and automate tasks, making the platform easier to manage [31][34] Question: Leadership changes and go-to-market strategy - New leadership has been brought on board to equip the company with necessary skills for future success, while internal talent development remains a priority [39][41] Question: Update on larger ACV lands and customer expansion - The focus is on entering organizations with a service-oriented approach, leading to trust and credibility, rather than all-in wins from the start [46][48] Question: Margins and operating leverage - Management indicated that there is room for operating efficiencies across departments, driven by AI implementation [52][53] Question: Contribution to ARR growth from current customers vs. new logos - The company expects to see growth from existing customers as they right-size their contracts, with new logo wins also contributing to future growth [115][118] Question: Capital allocation strategy - Buybacks and strategic acquisitions are being considered as part of the capital allocation strategy to enhance shareholder value [86][88]

Core Insights - Docebo Inc. reported quarterly earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.33 per share, representing an earnings surprise of -15.15% [1] - The company posted revenues of $57.04 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.37% and showing an increase from $49.28 million year-over-year [2] - Docebo shares have declined approximately 16.6% since the beginning of the year, contrasting with the S&P 500's decline of -0.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $58.55 million, and for the current fiscal year, it is $1.24 on revenues of $246.33 million [7] - The estimate revisions trend for Docebo is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Docebo belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]