Group 1 - Docebo Inc. reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and showing an increase from $0.15 per share a year ago, representing an earnings surprise of 8% [1] - The company achieved revenues of $55.43 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.26%, and up from $46.51 million in the same quarter last year [2] - Docebo has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Group 2 - The stock has underperformed the market with a gain of about 5.8% since the beginning of the year, compared to the S&P 500's gain of 25.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $56.15 million, and for the current fiscal year, it is $0.97 on revenues of $214.58 million [7] - The Internet - Software industry, to which Docebo belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

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Financial Data and Key Metrics - The company has seen a significant increase in new logo ACV, growing about 70% over the past 24 months to $71,000 this quarter [30] - The enterprise customer cohort grew 30% year-over-year, indicating strong performance in the mid to large enterprise segment [38] - The company has settled a legal dispute with Dayforce, which is expected to protect IP, support revenue continuity, and preserve a good working relationship [9] Business Line Data and Key Metrics - The Deloitte partnership is expected to significantly impact the pipeline across both government and commercial spaces, with Deloitte certifying Docebo to become an asset within their commercial channels [5][6] - The company is focusing on AI monetization, with new solutions like AI authoring and virtual roleplay/coaching expected to be highly monetizable [13][14] - The communities module, set to launch on August 15, is expected to enhance customer experience capabilities and increase average ACV [26] Market Data and Key Metrics - The government sector is a significant contributor to the pipeline, with over $200 million spent on new LMS initiatives in the past three years [22] - The company is on track with FedRAMP certification, which will open up opportunities in the federal market and accelerate partnerships like Deloitte [21][23] - The cybersecurity vertical has shown strong performance, with two worldwide leaders signed recently [61] Company Strategy and Industry Competition - The company is strategically moving upmarket, focusing on mid-market, large enterprise, and government customers, while maintaining a cautious approach to the SMB segment [8][34] - Docebo is positioning itself as a platform that addresses both employee experience (EX) and customer experience (CX) needs, with 65% of ARR tied to CX/hybrid use cases [50] - The company is investing in AI capabilities to strengthen its core platform, including semantic search, content recommendation, and skills ontology management [14] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the potential of AI solutions, with customers increasingly looking for business benefits rather than flashy features [15] - The company expects to see strength in the enterprise segment and government customers in the latter part of the year, reflecting in the updated guidance [7] - The company is focused on creating value through quality investments, avoiding overlaps in capabilities, and growing market share [44] Other Important Information - The company has simplified its pricing methodology, moving from an à la carte model to a core bundle approach, which has been successful in accelerating deal cycles [16][17] - G&A expenses have been held flat or reduced over the past 6-7 quarters, contributing to operating leverage [45][47] - The company is actively working on FedRAMP certification, which is expected to open significant opportunities in the government sector [21][23] Q&A Session Summary Question: Deloitte Partnership - The Deloitte partnership is strategic, covering both government and commercial opportunities, with significant potential to impact the pipeline [3][4][6] Question: Guidance and Customer Win Activity - The updated guidance reflects strength in the enterprise segment and government customers, with cautious assumptions for the SMB side [7][8] Question: Dayforce Relationship - The legal dispute with Dayforce has been resolved, with the focus now on protecting IP, supporting revenue continuity, and preserving a good working relationship [9][10] Question: AI Monetization - Customers are increasingly willing to pay for generative AI solutions, with new offerings like AI authoring and virtual roleplay/coaching expected to drive monetization [12][13][14] Question: Pricing Methodology - The new pricing strategy has been successful in simplifying the buying process and shortening sales cycles, particularly for net new business [16][17] Question: FedRAMP Timing - FedRAMP certification is on track, with the company ready for a sponsor to take them through the process, opening up significant government opportunities [21][22] Question: Communities Module - The communities module is expected to enhance customer experience capabilities and increase average ACV, with beta programs showing encouraging results [24][26] Question: Wall-to-Wall LMS Deployments - The company is focused on addressing multiple use cases for large organizations, with 8 out of 10 new customers choosing Docebo for two or more use cases [28][29] Question: SMB Market - The SMB market remains cautious, with the company focusing more on mid-market, large enterprise, and government customers [32][34] Question: Customer Adds and ACV - The decline in customer adds is offset by the growth in ACV, with the company focusing on larger enterprise customers that drive higher revenue [36][38] Question: Capital Allocation and M&A - The company is focused on quality investments that align with its long-term vision, avoiding overlaps in capabilities and focusing on creating value [43][44] Question: G&A Optimization - G&A expenses have been held flat or reduced, contributing to operating leverage, with further updates expected at the upcoming Inspire event [45][47] Question: HCM Peers and Unemployment - The company's focus on both EX and CX use cases gives it an advantage over HCM peers, with no anticipated impact from potential higher unemployment [49][50] Question: Government Timing and Elections - The company does not expect the upcoming U.S. elections to impact the timing of government opportunities or FedRAMP certification [51] Question: SMB Customer Base - The company will continue to serve the SMB market but is focusing incremental growth on mid-market, large enterprise, and government customers [53][54] Question: Net New Wins and Channels - The majority of net new wins come from direct sales, with system integrators playing a critical role in enterprise deals [55][56] Question: Dayforce Impact - The settlement with Dayforce is expected to support revenue continuity and diversify the revenue stream through additional channel partners [58][59] Question: Pipeline and ARR - The pipeline continues to grow positively, with strong performance in the cybersecurity vertical and government sector, contributing to incremental ARR [61][64] Closing Remarks - The company looks forward to sharing more updates at its upcoming customer conference in September, where new initiatives will be unveiled [66]

Core Viewpoint - Docebo Inc. reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and showing significant growth from $0.14 per share a year ago, indicating strong performance in the recent quarter [1][2] Financial Performance - The company achieved revenues of $53.05 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.45% and up from $43.59 million in the same quarter last year [2] - Over the last four quarters, Docebo has consistently surpassed consensus EPS estimates, indicating a positive trend in financial performance [2] Stock Performance - Docebo shares have declined approximately 24.6% since the beginning of the year, contrasting with the S&P 500's gain of 9%, suggesting underperformance relative to the broader market [3] - The current Zacks Rank for Docebo is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $53.65 million, while the estimate for the current fiscal year is $1.09 on revenues of $213.47 million, reflecting expectations for continued growth [7] - The trend of estimate revisions for Docebo is currently mixed, which may influence future stock performance [6] Industry Context - The Internet - Software industry, to which Docebo belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable industry outlook that could positively impact stock performance [8]

Core Viewpoint - The market anticipates Docebo Inc. (DCBO) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2024, with actual results being crucial for stock price movement [1][2]. Financial Expectations - The consensus EPS estimate for Docebo is $0.24 per share, reflecting a year-over-year increase of +71.4% [3]. - Expected revenues for the quarter are $52.3 million, which is a 20% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for Docebo is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -15.49%, suggesting a bearish outlook from analysts [10]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Docebo currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, Docebo exceeded the expected earnings of $0.17 per share by delivering $0.23, resulting in a surprise of +35.29% [12]. - Over the past four quarters, Docebo has consistently beaten consensus EPS estimates [13]. Conclusion - Docebo does not appear to be a compelling candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered by investors [16].

Core Insights - The market is underestimating the growth potential of artificial intelligence stocks, particularly in the context of the LMS (Learning Management System) market, which is projected to grow at 20% annually through 2030 [2][3]. Company Summaries UiPath - UiPath reported a 16% increase in revenue to $335 million for Q1 of fiscal 2025, with non-GAAP net income rising 18% to $0.13 per diluted share, despite challenges in the macroeconomic environment leading to longer sales cycles [5]. - The company has lowered its full-year revenue guidance to less than 8% growth for fiscal 2025, but optimism remains due to the return of co-founder Daniel Dines as CEO to enhance market execution [8]. - UiPath is recognized as a leader in robotic process automation (RPA) and is expected to benefit from a growing AI product pipeline, with the RPA market forecasted to grow at 40% annually through 2030 [10][13]. Docebo - Docebo experienced a 24% revenue increase to $51 million in Q1, with non-GAAP net income soaring 140% to $0.24 per diluted share, although it provided disappointing full-year guidance due to macroeconomic uncertainty and the loss of a significant customer [7]. - The company has innovative applications like Docebo Flow and Docebo Shape, which leverage generative AI for training content, positioning it well to monetize generative AI opportunities [11][15]. - Despite recent challenges, analysts believe the stock sell-off presents a compelling entry point for investors, as the lost customer was acquired by a company with its own LMS [16].

Core Viewpoint - Brokerage recommendations, particularly for Docebo Inc. (DCBO), suggest a strong buy sentiment, but reliance solely on these recommendations may not be advisable due to potential biases from brokerage firms [2][4][9]. Group 1: Brokerage Recommendations - Docebo has an average brokerage recommendation (ABR) of 1.33, indicating a consensus between Strong Buy and Buy, with 75% of recommendations being Strong Buy and 16.7% being Buy [2]. - The ABR is based on recommendations from 12 brokerage firms, with nine Strong Buy and two Buy ratings [2]. - Despite the positive ABR, studies indicate that brokerage recommendations often do not effectively guide investors towards stocks with significant price appreciation potential [4][5]. Group 2: Analyst Bias and Limitations - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, often issuing five Strong Buy recommendations for every Strong Sell recommendation [5][9]. - This bias suggests that the interests of brokerage firms may not align with those of retail investors, leading to a lack of reliable insight into future stock price movements [6][9]. Group 3: Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [7][10]. - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while the ABR may not always be up-to-date [8][11]. - For Docebo, the Zacks Consensus Estimate for the current year remains unchanged at $0.85, indicating stable analyst views on the company's earnings prospects [12]. Group 4: Investment Outlook - The recent consensus estimate change and other earnings-related factors have resulted in a Zacks Rank of 3 (Hold) for Docebo, suggesting caution despite the Buy-equivalent ABR [13].

The Canadian company notched gains in important fundamentals, but there was a big caveat.On Friday, Docebo (DCBO -22.91%) took the wraps off its first quarterly earnings report of this year, and investors were none too pleased with it. This was despite double-digit -- or more -- increases in all-important subscription revenue, overall revenue, and profitability. The learning management platform operator's shares took a nearly 23% hit on the day as a result.Double-digit gains in key fundamentalsFor the quart ...

Company Participants Good morning, everyone, and welcome to the Docebo Q1 2024 Earnings Call. All participants are currently in listen-only mode. We will open the line for a question-and-answer session momentarily. [Operator Instructions] Thank you, Brianna. Last night, after the markets closed, Docebo issued its Q1 2024 results. The press release, which included a link to management's prepared remarks and our quarterly investor slide deck, were all posted to our investor relations website. This morning's c ...

Docebo Overview - Docebo has 3,833 customers[3, 128] - Docebo's Annual Recurring Revenue (ARR) reached US$201 million as of March 31, 2024[21, 70, 102] - Docebo has over 400 integrations[23] - Docebo has 900+ employees[45] Financial Performance - Subscription Revenue Compound Annual Growth Rate (CAGR) between fiscal year 2020 and fiscal year 2023 was 42%[22, 46] - 81% of ARR added in 2023 represented by customers that chose multi-year contracts[82] - Net Dollar Retention Rate was 104% in 2023[82] - Q1 2024 Adjusted EBITDA margin was 14.5%[94, 102] Strategic Focus - Docebo is focused on key growth vectors that feed new logos and expand mandates[68] - Approximately 65% of ARR is tied to external/hybrid use cases[6, 68] - Docebo is pursuing FedRAMP certification to expand into the government segment[41, 68, 98]