Group 1 - The options market indicates significant implied volatility for Docebo Inc. (DCBO), particularly for the May 15, 2026 $15 Call option, suggesting that investors expect a substantial price movement [1] - Implied volatility reflects market expectations of future stock movement, often indicating potential upcoming events that could lead to a major price change [2] - Docebo currently holds a Zacks Rank 3 (Hold) in the Internet – Software industry, which is in the top 27% of the Zacks Industry Rank, with recent earnings estimates showing a slight increase from 32 cents to 34 cents per share [3] Group 2 - The high implied volatility may signal a developing trading opportunity, as options traders often seek to sell premium on such options, aiming for the underlying stock to not move as much as anticipated [4]

Core Insights - Donovan Jones is an IPO research specialist with 15 years of experience in identifying high-quality IPO opportunities [1] - He leads the investing group IPO Edge, which provides actionable information on growth stocks through various resources including IPO filings, previews, calendars, and a comprehensive guide to IPO investing [1] Company and Industry Summary - IPO Edge offers a database of U.S. IPOs and tracks upcoming IPOs, facilitating investors in navigating the IPO lifecycle from filing to listing [1] - The group emphasizes the importance of understanding the quiet period and lockup expiration dates in the IPO process [1]

Core Viewpoint - Docebo Inc. is highlighted as a strong investment opportunity in the EdTech sector, with a recent price target adjustment by Needham indicating confidence in the company's growth potential despite a slight reduction in target price [1][3]. Group 1: Business Performance - Docebo reported a shift in its business mix, moving away from reliance on a single OEM, which now contributes a smaller share to Annual Recurring Revenue (ARR) compared to the previous year [2]. - The growth rate excluding the largest OEM is accelerating, suggesting a more robust underlying business model [2]. - The company has shown momentum with systems-integrator partners and secured new government contracts, including expansions with the U.S. Department of Energy and the U.S. Air Force Cyber Academy through Deloitte, indicating a stronger presence in federal and SLED channels [3]. Group 2: Company Overview - Docebo Inc. is an enterprise learning-platform provider that utilizes AI-enabled Learning Management Systems (LMS) and related modules to assist organizations in designing, delivering, and measuring training at scale for both commercial and public-sector clients [4].

Core Insights - Docebo Inc. reported revenue of $61.62 million for the quarter ended September 2025, reflecting an 11.2% increase year-over-year and a surprise of +0.9% over the Zacks Consensus Estimate of $61.07 million [1] - The company's EPS for the quarter was $0.34, up from $0.27 in the same quarter last year, with an EPS surprise of +3.03% compared to the consensus estimate of $0.33 [1] Financial Performance Metrics - Docebo's customer count was 3,978, slightly below the two-analyst average estimate of 4,012 [4] - Annual Recurring Revenue (ARR) stood at $235.6 million, compared to the average estimate of $236.89 million from two analysts [4] - Revenue from Professional Services was reported at $3.58 million, exceeding the average estimate of $2.76 million based on four analysts, representing a year-over-year increase of +26.9% [4] - Subscription Revenue reached $58.05 million, slightly below the four-analyst average estimate of $58.17 million, with a year-over-year growth of +10.3% [4] Stock Performance - Over the past month, Docebo's shares have returned -11.3%, contrasting with the Zacks S&P 500 composite's -0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Docebo's Annual Recurring Revenue (ARR) increased by $2.5 million sequentially, reflecting a year-over-year growth of 14% when excluding the Dayforce business [5][7] - The company achieved a 20% EBITDA margin, marking a significant milestone in its financial performance [39][64] Business Line Data and Key Metrics Changes - The mid-market business exceeded performance expectations, benefiting from leadership changes and improved processes [7][8] - Core business retention improved, contributing positively to overall performance despite accelerated churn with Dayforce [8][32] Market Data and Key Metrics Changes - EMEA performance exceeded expectations with significant new customer acquisitions during the quarter [8] - The company is seeing increased interest in its offerings from state and local government sectors, driven by its FedRAMP certification [11][12] Company Strategy and Development Direction - Docebo is focusing on diversifying its revenue streams and enhancing its product offerings, particularly in AI capabilities [28][29] - The company is investing in partnerships with system integrators like Deloitte and Accenture to enhance its market penetration and support complex implementations [60][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for federal contracts despite the government shutdown, indicating that it has not significantly impacted their business [11][17] - The company anticipates continued growth in the mid-market and enterprise segments, with expectations for a strong Q4 [19][78] Other Important Information - The Dayforce wind-down is expected to reduce its contribution to total revenues to approximately 3.5-4.5% in 2026 and become immaterial thereafter [25] - The introduction of AI credits is seen as a potential driver for future revenue growth and customer retention [81] Q&A Session Summary Question: Can you unpack the components of ARR growth? - Management confirmed a $2.5 million sequential increase in ARR, with a 14% growth year-over-year excluding Dayforce [5][7] Question: How is the FedRAMP initiative progressing? - The company has secured two new federal customers earlier than expected, indicating strong momentum in this area [10][11] Question: What is the outlook for the enterprise segment? - The enterprise segment continues to grow, with notable wins and expectations for a strong Q4 [19][78] Question: Can you provide details on the Dayforce wind-down? - The Dayforce contribution to revenues is expected to decline significantly over the next few years, with ongoing growth in other areas [25][44] Question: How is AI being integrated into the product offerings? - AI capabilities are being infused throughout the product, with a focus on enhancing customer experience and retention [28][29] Question: What is the impact of the AWS contract roll-off on ARR? - The AWS contract is expected to result in a $4 million hit to ARR, effective December 31 [74] Question: How are partnerships with system integrators evolving? - The company is strengthening relationships with major system integrators to enhance market presence and support complex implementations [60][84]

Core Insights - Docebo Inc. reported quarterly earnings of $0.34 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and showing an increase from $0.27 per share a year ago, resulting in an earnings surprise of +3.03% [1] - The company achieved revenues of $61.62 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.90% and up from $55.43 million year-over-year [2] - Docebo has outperformed consensus EPS estimates three times in the last four quarters and has topped consensus revenue estimates four times in the same period [2] Financial Performance - The earnings report indicates a significant improvement in earnings per share compared to the previous year, with a surprise of +45% in the prior quarter [1] - The current consensus EPS estimate for the upcoming quarter is $0.35, with expected revenues of $61.43 million, and for the current fiscal year, the estimate is $1.19 on revenues of $240.05 million [7] Market Position - Docebo shares have underperformed the market, losing about 45.6% since the beginning of the year, while the S&P 500 has gained 14.3% [3] - The Zacks Industry Rank places the Internet - Software sector in the top 30% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] Future Outlook - The sustainability of Docebo's stock price movement will depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current Zacks Rank for Docebo is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Company Overview - Docebo's Annual Recurring Revenue (ARR) reached $235.6 million as of September 30, 2025[15] - Subscription revenues constitute 94% of the company's total revenues[15] - The company has a customer base of 3,978[15] - Docebo has over 900 employees[16] - The subscription revenue Compound Annual Growth Rate (CAGR) between fiscal year 2020 and 2024 was 36%[16] Market and Product Strategy - Docebo estimates the total addressable market (TAM) for global learning to be approximately $30 billion, with customer experience (CX) accounting for ~$18.5 billion and employee experience (EX) for ~$11.5 billion[22] - Approximately 60% of Docebo's customers utilize the platform for CX or hybrid training use cases[39] Financial Performance and Growth - Docebo's Q3 2025 subscription revenue growth was 10.3%[93] - The company's Q3 2025 Adjusted EBITDA margin was 20.1%[93] - Docebo's Q3 2025 Free Cash Flow margin was 9.2%[93] - The company has generated approximately $66 million in cash since 2016 while growing ARR to $235.6 million by the end of Q3 2025[97]

Core Insights - Docebo Inc. reported strong financial results for Q3 2025, exceeding expectations due to its AI-First platform strategy and growing partnerships in federal and SLED markets [2][5][8] Financial Highlights - Subscription revenue reached $58.0 million, a 10% increase year-over-year, accounting for 94% of total revenue [5][12] - Total revenue was $61.6 million, reflecting an 11% increase from the previous year [5][12] - Gross profit was $49.5 million, representing 80.3% of total revenue, compared to 81.1% in the prior year [5][12] - Net income increased to $6.1 million, or $0.21 per share, up from $5.0 million, or $0.16 per share, in the same period last year [5][12] - Adjusted Net Income was $9.9 million, or Adjusted Earnings per share of $0.34, compared to $8.3 million, or $0.27 per share, in the prior year [5][12] - Annual Recurring Revenue (ARR) was $235.6 million, a 10.1% increase year-over-year [5][12] - Adjusted EBITDA was $12.4 million, representing 20.1% of total revenue, compared to 15.7% in the prior year [5][12] Customer Updates - Notable new customers include a global provider in industrial and environmental services with over 200,000 employees, and the Latvian School of Public Administration, which serves over 60,000 employees [4][10] - Docebo also secured contracts with Amazon Health and the U.S. Department of Energy, highlighting its growing presence in government and education sectors [10] Financial Outlook - For Q4 2025, management expects subscription revenue growth to align with total revenue growth [8][11] - Revised guidance for the fiscal year ending December 31, 2025, anticipates total revenue growth of approximately 11.40% and subscription revenue growth of 11.75% [11]

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.