Earnings call transcript: Docebo beats Q2 2025 forecasts, stock surges

Docebo Inc. (DCBO) has reported its Q2 2025 earnings, significantly surpassing analysts’ expectations. The company posted an earnings per share (EPS) of $0.29, compared to the forecasted $0.21, marking a 38.1% positive surprise. Revenue also exceeded expectations, reaching $60.7 million against a forecast of $59.02 million. The company maintains impressive gross profit margins of 80.66%, according to InvestingPro data. In response, Docebo’s stock surged by 10.94% in pre-market trading, reflecting strong investor confidence.

Key Takeaways

• Docebo’s Q2 2025 EPS of $0.29 exceeded forecasts by 38.1%.
• Revenue reached $60.7 million, surpassing expectations by 2.85%.
• Stock price increased by 10.94% following the earnings announcement.
• The company raised its annual revenue guidance.
• Strategic focus on AI innovation with the launch of the Harmony AI platform.

Company Performance

Docebo demonstrated robust performance in Q2 2025, particularly within the mid-market segment. The company reported growth in its customer base, with those spending over $100,000 increasing from 16% to 23%. Additionally, Docebo’s annual recurring revenue (ARR) grew by $8 million during the quarter. With a market capitalization of $947 million and revenue growth of 16.79% over the last twelve months, the company’s emphasis on AI-driven solutions, highlighted by the launch of the Harmony AI platform, positions it as a leader in the learning management system (LMS) space. InvestingPro analysis indicates that Docebo is currently trading below its Fair Value, suggesting potential upside opportunity.

Financial Highlights

• Revenue: $60.7 million, up from the forecasted $59.02 million.
• Earnings per share: $0.29, compared to the forecasted $0.21.
• ARR growth: $8 million in Q2.
• Customer count with over $100k spend increased from 16% to 23%.

Earnings vs. Forecast

Docebo’s actual EPS of $0.29 outpaced the forecast of $0.21, resulting in a 38.1% surprise. Revenue also exceeded expectations, achieving $60.7 million against a projected $59.02 million, a 2.85% surprise. This performance reflects positively on the company’s strategic initiatives and market positioning.

Market Reaction

Following the earnings announcement, Docebo’s stock rose by 10.94% in pre-market trading, reaching $31.86. This increase places the stock closer to its 52-week high of $53.86, indicating strong investor confidence. With a beta of 1.26, the stock shows moderate volatility compared to the market. The stock movement aligns with the company’s earnings beat and raised guidance, differentiating it from broader market trends. For deeper insights into Docebo’s valuation and 13 additional ProTips, including detailed financial health analysis, visit InvestingPro.

Outlook & Guidance

Docebo has raised its annual revenue guidance, reflecting optimism in its growth prospects. The company anticipates meaningful contributions from federal government contracts in the second half of 2026. Despite a seasonally weaker Q3 and the loss of an AWS contract in Q4, Docebo remains focused on AI innovation and product development.

Executive Commentary

CEO Alessio Artufo emphasized the company’s transition to an AI-first learning platform, stating, "We are transitioning from being one of the most innovative and modern LMSs to an AI first learning platform and company." Artufo also highlighted the role of AI in transforming learning into skills, further solidifying Docebo’s competitive position.

Risks and Challenges

• Potential impact of elongated enterprise sales cycles.
• Dependency on foreign exchange rates, which provided a 1% boost to total revenues.
• Competitive pressures from legacy vendors and HRIS providers.
• Market saturation in existing sectors.
• Economic uncertainties affecting government and enterprise spending.

Q&A

During the earnings call, analysts inquired about the strength and durability of the mid-market segment, the company’s AI monetization strategy, and the impact of the new Chief Revenue Officer on sales execution. Executives addressed these concerns, emphasizing strategic initiatives and growth potential.

This comprehensive analysis highlights Docebo’s strong performance in Q2 2025, driven by strategic initiatives and innovation in AI technology. The company’s ability to exceed expectations and raise guidance underscores its resilience and growth potential in the competitive LMS market.

Full transcript - Docebo Inc (DCBO) Q2 2025:

Conference Operator: Good morning, everyone, and welcome to the Dulcebo Q2 twenty twenty five Earnings Call. All participants are currently in a listen only mode. We will open up the lines for a question and answer session momentarily. I’d now like to turn the call over to Docebo’s Vice President of Investor Relations, Mike McCarthy. Please go ahead, Mike.

Mike McCarthy, Vice President of Investor Relations, Docebo: Thank you, Julianne. Earlier this morning, Docebo issued its Q2 twenty twenty five 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 call will allow participants to ask questions about our results and the written commentary that management provided this morning. Before we begin this morning’s Q and A, Docebo would like to remind listeners that certain information discussed may be forward looking in nature.

Such forward looking information reflects the company’s current views with respect to future events. Any such information is subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those projected in the forward looking statements. For more information on the risks, uncertainties and assumptions relating to forward looking statements, please refer to Docebo’s public filings, which are available on SEDAR and EDGAR. During the call, we will reference certain non IFRS financial measures. Although we believe these measures provide useful supplemental information about our financial performance, they are not recognized measures and do not have standardized meanings under IFRS.

Please see our MD and A for additional information regarding our non IFRS financial measures, including reconciliations to the nearest IFRS measures. Please note that unless otherwise stated, all references to any financial figures are in U. S. Dollars. Now I’d like to turn the call over to Docebo’s CEO, Alessio Artufo and our CFO, Brandon Farmer.

Gentlemen? Good morning.

Conference Operator: As a reminder, we ask that analysts please limit themselves to two questions and return to the queue for any follow ups. Thank you. First question comes from Ryan MacDonald from Needham and Company. Please go ahead. Your line is open.

Matt Shea, Analyst, Needham and Company: Hey, good morning. Thanks for taking the question. This is Matt Shea on for Ryan. Congrats on a nice quarter here, guys. Maybe just to start, you guys called out strength in the mid market during the quarter.

Could you just unpack that a bit? What are you seeing in the mid market? And how durable do you think that strength is? And then are there any verticals within that mid market strength that were particularly strong and noteworthy?

Alessio Artufo, CEO, Docebo: Good morning. So we did report a very strong outcome in our mid market segment, and I would underscore that, you know, the Chebu over the past several years has strengthened its position in the in the mid market, the mid enterprise and enterprise segment. This is the result of work that we have done to better segment our efforts in outbound and in digital marketing, being more efficient where we allocate our spend and target verticals that are, you know, more in line with what we with our strength and capabilities. And so really having having a stronger focus on the industries where we have more success. Historically, in in mid market, technology sector has been a leading sector of our efforts.

So when our product resonates very much with SaaS companies, but we’re seeing beyond that even organizations across healthcare and financial services playing a very big role in the success. I would say, additionally, we have implemented some process and people changes in mid market with new, improved leadership capabilities, and we’ve seen an immediate impact. So we’re very pleased for this this uptick. Relative to durability, we we expect mid market to continue to be strong in the quarters to come. And then as that combines with the strength in the h two relative to enterprise cycles, we’re very excited about the future ahead.

Matt Shea, Analyst, Needham and Company: Got it. That’s helpful color. And then it was nice to see a majority of new customers still looking to use you for two or more use cases. I mean, nitpicking a little bit here, but that 65% level for two or more use cases we’ve seen the last two quarters is down from the, call it, 70 to 80% rate last year. Would be good to get your view on what has changed maybe this year versus last year?

Are customers just buying smaller in 2025 given the macro backdrop, and then you kind of think you can expand with them over time? Or how are you thinking about the lower multi use case adoption rate so far in 2025 relative to last year?

Alessio Artufo, CEO, Docebo: Yeah. Sure. So, look, our our priority is, as you say correctly, win as much market share within a customer or addressable market within a customer as we can. And there are a couple of ways of doing that. Way number one is to, you know, penetrate a customer and sell as wide as we can from day one.

That as the backdrop of reducing the sales velocity because bringing on board both internal and external use cases, for example, and the subcomponents of those use cases. The benefit is multi use case and higher ACV likely. The downside is more, cooks in the kitchen and therefore slower decision process. So what we are continuing to refine is a process that optimizes ACV and velocity. And so when you see a slight reduction, what that means is that we found that in certain segments, it is more productive to enter in an organization with a couple of use cases and win the trust and do a really great job and expand from there, which is a very good example of what we’ve done with a notable enterprise customer this quarter.

Conference Operator: Our next question comes from Robert Young from Canaccord Genuity. Please go ahead. Your line is open.

Robert Young, Analyst, Canaccord Genuity: Hi, good morning. Really nice to see the big five tech expansion. Maybe first, could you I think there’s only two of those that you have currently, if you maybe confirm that. And then if you could talk about how that was won and the decision behind the displacement of an internal system.

Alessio Artufo, CEO, Docebo: Good morning. And yes, to question number one, you’re accurate in that number two. Relative to the one we’ve announced and the expansion that we spoke about, we’re really pleased about it because it really is the ultimate recognition of the strategic efforts we’ve been putting in place to achieve this type of growth within an account. First, let me say this is a very strategic customer, that we have been serving already for a while.

: And

Alessio Artufo, CEO, Docebo: expanding these customers, especially in the enterprise space, underscores the importance of our investments in customer success. We’re, in this enterprise, this complexity and the ability to really serve the customer across multiple use cases and stakeholders becomes important to win the trust that we expand further. Second, I think, you know, you were asking about the why and behind the the the customer’s choice, and it’s very simple. The customer’s main objective was to scale the learning operation, the learning infrastructure with a partner that was able to accomplish two things. Number one, have the capabilities of large scale, so true enterprise capabilities.

Second, high integrability, meaning the ability to integrate with multiple systems preexisting via, you know, APIs, webhooks, and and other technological means. This customer, interestingly, had an experience coming from an in house grown owned system. So, you know, I know that in the past, there has been a question of our enterprises, you know, looking to build their own system. What we’re seeing is that actually, you know, a large big five like this one is actually moving away from a decision of an own system and and towards using the Chebo as the backbone of their infrastructure. And finally, what makes this, additionally very special is that this is for a customer experience use case, enabling, you know, technology teams that are part of the target market of this company.

And so it’s just a a rather perfect example of our execution.

Robert Young, Analyst, Canaccord Genuity: Thanks for all that color. That’s great. For my second question, Brandon, maybe great to see the guidance bump and thought maybe you could just get into some of the assumptions behind that. Are the larger deals still upside? Is FedRAMP still upside?

And then if you can feather into that, maybe just to I think last quarter, you suggested that net retention was improving through the back half

Yifu Li, Analyst, Cantor Fitzgerald: of year, that’s still one of

Robert Young, Analyst, Canaccord Genuity: the assumptions. And then I’ll pass the line.

Brandon Farmer, CFO, Docebo: Hey, Rob. Before I get to your question, maybe, you know, it’s important if we just zoom back to when we last reported on May 9. It was, we were roughly thirty days post liberation day, and we really put out a guidance at that point in time that we felt reflected the environment, which was frankly a little bit chaotic. And what we see is that in times of chaos, companies tend to deal with the change first. Once that change is controlled, they return to spend on investments.

Now if if we zoom back today, you know, we certainly saw a portion of that chaos was maybe more noise as opposed to news. And we’re just really updating our revenue guidance to reflect the macro that we see today, which is really reflecting the following. We saw strong performance in our mid market sector, which Alessio talked about. We continue to see elongated sales cycles in the enterprise space. And FX became a tailwind for us where during the current quarter, it helped us to the tune of 1% on total revenues and 2% on subscription.

You know, if you actually look at the different puzzle pieces that construct our annual guide and if we look at our q three guide and our full year guide together, you’ll actually see that they were trending closer to the higher end of our range as opposed to the lower end or even the midpoint. On your other question, from an NRR perspective, consistent with last quarter, we mentioned that we expected to see improvements from a gross retention perspective after Q1. From a retention perspective, it performed at expectations, if not a little bit better. Q3, we do expect another improvement in retention before taking a dip back down in q four with the loss of AWS. That’s all within our guidance.

From a from a FedRAMP perspective and large enterprise, that continues to be out of

: our guide as well.

Matt Shea, Analyst, Needham and Company: All right. Thanks a lot

Robert Young, Analyst, Canaccord Genuity: for all that. I’ll pass the line.

Conference Operator: Our next question comes from George Stutton from Craig Hallum. Please go ahead. Your line is open.

George Stutton, Analyst, Craig Hallum: Thank you. It was nice to see you get FedRAMP earlier than expected. It sounds like you’re talking about potentially meaningful contributions in the 2026. Can you just give us a little sense of the trajectory of what you would expect from FedRAMP?

Alessio Artufo, CEO, Docebo: Hi, Craig. Good morning. George. George. So first, FedRAMP was a very important milestone for us.

We achieved that just as a look back in May, and it really unlocks, alongside sled, the state and local, a 2,700,000,000.0 TAM across US federal, state, and local agencies. That’s that’s a very important fact to just, recall. And you’re correct. We did have an acceleration, in the the obtaining the FedRAMP certification, which we’re very pleased about. And as far as, you know, the the, forward looking, we were seeing, thanks to the work that we did in advance and preparing ourselves for this moment with partners like Deloitte and others, we’ve seen an increase and strengthening of our government pipeline over the past few months.

While we’re cautious in this market because it’s not a market that we have sold into the federal one before, and we are learning its dynamics, and we will be learning over the coming months. The pipeline behavior is making us very, excited. With the deals that have the potential to be, this year and, for sure, a growth expected in 2026. We expect, as you said, H2 twenty twenty six by that time to have meaningful contribution from the federal and more broadly the government vertical of the channel. And I’ll close by saying, look, the reason why we’re super excited about it is very simple.

You know, we are in a unique position to offer a solution in this market that is scarce. Because the players that are currently winning or owning market share lag behind on capabilities, features, and innovation. If you look at the the communications even from the, White House relative to AI modernization and preferences over legacy systems, that plays exactly now wheelhouse. So to conclude, there’s a great product market fit. Timing is more accelerated than we had originally estimated, and pipeline is in line with expectations with possibility to win the business in federal already this year.

And just as a reminder, in this quarter, we won a couple of new states in flat, which is a very important fact, and we’re starting to penetrate more and more states, which is a great sign of success.

Brandon Farmer, CFO, Docebo: Yeah. I would just add, you know, seasonally, q two is a strong quarter for state and local, and we saw, you know, strong performance on the government sector. And, you know, while federal gets a lot of attention, I do think it’s important to for us to continue to call out the opportunity at state and local. Today, we are in about 10 states, and within those states, we’re about 10% penetrated. So there’s a lot of room for growth, and we’re seeing increased traction after the Fed ramp as their brand improves in the government sector.

George Stutton, Analyst, Craig Hallum: Super. It was nice to see you’ve seeded a CRO, and looks like Mark’s background is is quite good. I’m curious, given sales cycles, when would we start to expect to see his imprint on the numbers?

Alessio Artufo, CEO, Docebo: Immediately. That’s that’s what I tell him every day. But more more seriously, Mark, is a couple weeks in, and he’s already making an impact in the organization, by, you know, focusing on what are obvious, short term wins or low hanging fruit. But I, have, you know, a longer term view of his contribution. First, let me say, like you said correctly, he has a track record of, of success at the likes of Outreach and and Catalyst.

What he has mastered the art of selling, but also the deep understanding of the customer success function as it relates to selling. That is a very important attribute in a modern CRO, and I’m excited that Mike that Mark has that. His mandate is very clear. It is to sharpen execution, increase efficiency. And and look, if you ask him, I think, what he can bring in the quicker way, it’s improved velocity.

Mark is really good at identifying, you know, process and or ways to optimize in funnel, and he’s actively working on that. But the biggest contribution on a longer term perspective that I expect him with the team to make is, really blending further and further our post sales function and our sales function. Because that will have a very meaningful impact on our retention, GRR and NDRR both. And he’s spending already a lot of time on it. I would also offer the information that, it’s not completely common for sales organizations to have in house also a learning officer expert that we are we are leveraging Brandon Carson, our c l o.

He partners with Mark and Kyle to support our enterprises in the early stage over their strategy definition. And and we’re seeing early signal that this strategy of involving CLO in the learning strategy in presales is actually paying dividends. So we we think it’s a unique asset, and Mark, Kyle, and Brandon combined are gonna be a real force in our GTM efforts.

George Stutton, Analyst, Craig Hallum: Great. Thank you.

Conference Operator: Our next question comes from Josh Baer from Morgan Stanley. Please go ahead. Your line is open.

Josh Baer, Analyst, Morgan Stanley: Thanks for the question. Alessio, you gave a good summary of where docebo is with AI innovation and in your prepared remarks. I was hoping you could talk about what you are most excited about and where you are with monetization. And then I I’d also like to know how you’re thinking about and monitoring potential risks from AI, so both sides. Thanks.

Alessio Artufo, CEO, Docebo: I love this question. The risk is that I talk for far too long, and Mike and Brandon tell me to shut up. I will do my best summarize all my thoughts, but it’s a great question that opens up a lot of interesting interesting things. First, me tell you what I’m most excited about. And I think it needs to be put put in the context of what we have been doing at the Cheve over the past, you know, year or so.

And and and that is a declared intent to transition from being one of the most innovative and modern LMSs to an AI first learning platform and company. Because it’s not only about our products, it’s also what we do within the company. And we’ve begun that change at a rapid pace about a year ago. Into that context, recently in July, after announcing it at our conference Inspire, we’ve launched Harmony. What is Harmony?

Harmony is our agentic platform. We went live in July, and what we announced was a great capability of being able to now search in platform in a modern way. Search like you would talk to ChargePT or to Cloud, which brings a new level of AI capability to the Chebo. Customers can now go into Chebo and ask natural questions and get summaries. That, frankly, is just the beginning of a long term vision, which is what excites me the most.

Because Armony really is destined to be an agent of agents. What it will do, it will help create content. It will automate administrate administrative tasks that take a long time. It will perform actions at ten, twenty, a 100 x the speed that a human can. While they sleep, administrators can have Harmony accomplish tasks for them.

I would offer also that my vision for Harmony and for agents of agents is that administrative tasks and improving the admin life is one part of the equation here, but it’s not the full story. The full story is, allowing the Chebo to become an end to end AI first platform by also enabling learners when they log in to Chebo to have an AI first experience. And, I believe it it the technology offers the possibility to switch from an instructor led model, which frankly every LMS, prioritizes where, you know, we somebody creates courses and students, take take lessons to a learner first model, where the learner is at the end of the learning and the control of their learning and upscaling in their end. So the the script is flipping, and Harmony will enable our customers to do that. That’s a a little bit more a high level.

There is a lot of innovation that is coming also in the core product. You know, when I speak about two customers, one of the things they tell me is, unless you’re great on AI, but, you know, we’re still using the core product. So, you know, the innovator’s dilemma. Right? And so we always have a to deal with a trade off between continuing to evolve our core, which is so important, while at the same time, preparing the chamber for the next one, two, three years.

So that’s, that’s, some of the things that excite me the most. I haven’t even spoken about the table creator and all the capabilities about creating content, and that’s also another big area of excitement. I hope that helps. Like I told you, it was gonna be a lot.

Josh Baer, Analyst, Morgan Stanley: That’s great. And and on the risk side, I mean, that

Brandon Farmer, CFO, Docebo: That’s a good thing. New

Josh Baer, Analyst, Morgan Stanley: new entrants or ways that, companies are leveraging, you know, LLMs internally themselves, like anything to look out for that you’re looking out for.

Alessio Artufo, CEO, Docebo: So there are always gonna be new entrants. And frankly, in the thirteen years that I’ve been in Deutsche Bank, twenty in the industry, there have always been new entrants. Well, the chatbot was a new entrant at one point. So I know that story really well. But, you know, there’s a lot of things to say about it.

First of all, we have the benefit of experience, and customers that we can work with and in order to improve the learning landscape. Second, for sure, you know, there is a debate whether, people can just learn in isolation through an LLM and skip, you will, the formal learning component. I would I would offer the following reasoning about that and the way I think about the risk mitigation. Learning is a process in a in an organization of corporation that embodies two things, the transformation of knowledge into learning, and then the absorption of learning towards the skills, the competencies that we possess and evolve over time. LLMs don’t have any information about one’s, you know, degree of knowledge in a certain area within the corporation.

They are non deterministic system. If you go to LLM and ask the same question, three times you got three different flavors of answers. In order to be deterministic, a platform needs to have the knowledge, the ability to transform this knowledge into structural learning with pedagogical models, and the underlying skills backbone that ties knowledge, learning to skills evolution. That’s what we are doing. We’re building a platform that has an LLM like experience that ties learning and knowledge because those two walls are crumbling to skills.

And, we’re doing this in an agentic way. And that is our way of mitigating risk and future proofing the table for the next ten years.

Conference Operator: Our next question comes from Suthan Sukumar from Stifel. Please go ahead. Your line is open.

Mike McCarthy, Vice President of Investor Relations, Docebo0: Good morning, guys. I wanted to double click on the Big Tech expansion deal you guys announced this morning. Could you give us a bit of sense on the size and scope of the deal? And as you think about this customer long term, what’s the what are the levers here for additional growth opportunity here?

Brandon Farmer, CFO, Docebo: Hey, Susan. On the size and scope, so it’s a it’s a customer ad use case. I would say it’s a large six figures, slightly below 7 figures deal. From a customer account perspective, you’ll see that it’s not in our new logo ACV because it’s same customer, but completely different department. And sorry.

Your second question, could you just repeat?

Mike McCarthy, Vice President of Investor Relations, Docebo0: Oh, just curious on what, you know, how you guys think about what the growth opportunity might be ahead with this customer.

Matt Shea, Analyst, Needham and Company: So it’s actually a great

Brandon Farmer, CFO, Docebo: question because if you look at the two use cases that we have, there are still two customer ed use cases, which is to say we do not have the employee experience use case. And from from what we know today, this customer still uses multiple different LMSs, not just for internal, but there are other customer experience use cases as well. So while it’s hard to exactly quantify how penetrated we are within that customer, I would still say we are underpenetrated.

Mike McCarthy, Vice President of Investor Relations, Docebo0: Got it. Thank you. And, just on the the recent CRO hire, you know, this is good to see a new CRO in place, and I and I know he’s just fresh in the seat. But how do you anticipate your focus shifts and or or priorities change with respect to your current go to market motion?

Alessio Artufo, CEO, Docebo: I I don’t believe, Suthan, that there will be any drastic shift. Like I mentioned before, rather a real focus on execution efficiency and and really ensuring that as we interact with customers, we just create value together with them. I mentioned before, Mark has a really good experience across both sales and customer success. And, you know, integrating those functions, integrating having a a full cycle where the customer feels taken care of and supported, and we manage, you know, against their their expected outcomes is an area where I believe we have a room to grow. And so one of these mandates is to really strengthen our muscle in that area.

And That that’s that’s, I think those are the most important things that I would underscore.

Mike McCarthy, Vice President of Investor Relations, Docebo0: Okay. Great. Thank you for the color. I’ll pass the line.

Alessio Artufo, CEO, Docebo: Thank you.

Conference Operator: Our next question comes from Yifu Li from Cantor Fitzgerald. Please go ahead. Your line is open.

Yifu Li, Analyst, Cantor Fitzgerald: Good morning, Alexia and Brandon. Nothing better to end the week than a positive earnings print. So, Alexia, I just wanted to start with your favorite child, that’s Harmony Organic AI, which you were most excited about at Inspire. Looks like you’re ahead of schedule in delivering Harmony in different stages, first with search, then copilot this quarter and expected automated actions by year end. So I just wanted to drill down more on the go to market and sales strategy that’s to monetize this great product.

How do you think of that pricing and now that you have marked CRO in place?

Alessio Artufo, CEO, Docebo: Great question. And I believe, Josh earlier asked the question on the flavor of monetization, And, I’m glad to cover this so that we can, respond even to the prior notes from Josh. Yi, first of all, it’s good to have you on the call. Thanks, Amit. And and thank you for the question.

So on on the merit of our money and monetization, if you if we go back to our last earnings call, I said that my priority is for us to ship capabilities that create value for our customers relative to the topic of monetization. That was the priority. In general principle, it’s important first to deliver value to customers because monetization will follow once that is accomplished. We have launched Harmony Search in the July, so not even a month ago. And our approach, by the way, is an approach of shipping capabilities at a very good state of readiness and iterating fast and improving, these capabilities very quickly as we go.

So, this is a little bit different than your more standard three, six months release cycle. We wanted to improve these AI capabilities weekly. It’s early to establish the, you know, hard numbers relative to usage even though the usage dashboard that we see please us. But it’s harder to, you know, make a definitive statement, in just about a month. But I can tell you the following, that, when I when I see that features like a video presenter that was launched a few months ago, already generated more than twenty thousand minutes of video content.

And that, roughly 2,000 customers generated AI assessments. And that, with content builder that we also recently released, over 2,000 learning assets that were developed by customers. All the data points to the fact that these products are becoming popular among our customer base. Now the question is, will we monetize it? How fast, how soon, and how in general?

Yifu Li, Analyst, Cantor Fitzgerald: How about like the how how about the go to market? Like, how about how about, like, in terms of, like, how would you sell? Forget the money aspect. I I get it. You wanna deliver the value to customers first.

Right? How would you reach them? You already have an existing customer. Right? How would you leverage the CMO, CRO in place, right, to to say, hey.

We have this awesome product in Harmony. You know, could you give it a try?

Alessio Artufo, CEO, Docebo: Yes. Well, first, for for clarity, it was our strategic choice to put these products in the end of as many customers as we can. We gave creator, and Harmony both in the end of all our customers that wanted to activate it and without discerning or or using it as an upsell mechanism. And and the reason was we really wanted to get to a place where the customers wanted to use it, want more of it before, again, applying monetization strategies. The way we’re talking about it, the way we’re using it is, really a proof point to our AI strategy and a differentiator against the legacy vendors.

And it is the beginning of positioning us strongly in the AI first category, which we fully belong to right now, and we’re just building and building and building on top of it.

Yifu Li, Analyst, Cantor Fitzgerald: Excellent color, Alexa. I just wanna follow-up with Brandon on the financial side. Sounds like from your prepared remarks, you are very optimistic about the second half with the new signs of tech investments in rescaling and upscaling. So, Brandon, can you talk about other verticals in light of the ongoing, you know, trade negotiations? You know, verticals you called out, auto, industrial, retail in last quarter.

Are we are we out of the woods yet, or are you you know, do you still have some reservations? And how does that big five tech win that you mentioned early today, you know, proves that, hey. Look. You know, Doce was able to serve other large tech titans, right, even in light of, you know, the lost unfortunate lost contract with AWS. That’s it for me.

Thanks, Alexia and Brandon.

Brandon Farmer, CFO, Docebo: Thanks for the question. So on the general industry groups that we called out, you know, what I would say is that in the enterprise space, within those subsectors, we continue to see deal scrutiny and elongated sales cycles. You know? And the good news is that we have a playbook that works well from this. You know, we’ve been in multiple different macro environments over the past three years.

And when the deals become tough, we really lean on value engineering and really work with our prospects to build a business case and prove out the ROI of learning so that they could pitch that to their executives and show that every month you do not purchase this LMS, you’re actually losing out on money. In the current quarter, that worked out very well in the mid market space, and we saw value engineering make a difference on a couple of manufacturing wins that we had during the quarter. So, generally, I would continue to separate mid market and all end segments. We saw strength. Mid and enterprise in most of the subsegments, we continue to sell deal elongation.

From the from the large, tech company when, you know, this is a customer of ours that we’ve had for a while. They’re fans of Docebo. They come to our inspire events, and the continued expansion is just proof of Docebo executing from an implementation perspective, from a customer success perspective, from a customer support perspective. And they’re continued fans of Docebo, and we continue to get introduced through different departments within that company. Alt ultimately, more and more of these large tech logos does help because they ultimately come refer referenceable companies, and that helps us win other logos.

Conference Operator: Our next question comes from Kevin Krishnaratne from Scotiabank. Please go ahead. Your line is open.

: Hey, there. Good morning. Just one maybe clarification here. In your prepared remarks, talked about the customer count above 100,000 ramping at 23%. I think it was 16%.

So a really nice acceleration there. I’m just wondering what we’re seeing there. Is there something mechanically to think about? Because it looks like there’s quite a jump from the 16 to 23.

Brandon Farmer, CFO, Docebo: Yeah, Kevin. So there’s really three ways that a customer could become a customer count above 100 k. Number one, first time Deutsche Bank customer during the quarter. Number two, that current customer was a $50,000 customer, and they expanded during the current quarter to become over a 100. And we did see not only strong performance in mid market from a new logo perspective, but also from an expansion perspective.

And then thirdly, we did see a benefit on the customer count due to FX where certain contracts denominated in euro GPP that were around the roughly 90 to 95 range got pushed above 100 k. So all those three factors together led to the acceleration in the customer count growth.

: I see. Okay. That’s that’s that’s super helpful. Thanks for that. The second one, I know you gave us the guide for for q two, but can can you talk about the ARR trends and sort of what you’d expect to close-up the year Q3, Q4?

You had a pretty good bump up here in the Q2, 8,000,000. I know FX would have helped there. Obviously, you had a couple of big deals that you signed, but just help us think about the the ARR build for for q three. That’ll help us, you know, think about the rest of the year. Thanks.

Brandon Farmer, CFO, Docebo: Generally, q three is a seasonally weak quarter for us, specifically in EMEA where, you know, vacations in July and August really make September the only month that we could execute on contracts. So from an ARR perspective, we would expect a step down in q three from the 8,000,000 we printed here in the current quarter. And in q four, while seasonally, typically the strongest quarter, we have, AWS coming out at December 31 as well. You know, ultimately, you know, I would say the impacts of ARR is in our revenue guide, and we expect the same seasonality trends that we historically have.

: Thanks, Brandon. Pass the line.

Conference Operator: Our next question comes from Erin Kyle from CIBC. Please go ahead. Your line is open.

Mike McCarthy, Vice President of Investor Relations, Docebo1: Hi. Good morning. I just wanted to ask a question on the Global Education Solutions customer win in the quarter. You mentioned students in response to an earlier question as well, Alessio. So I’m just I’m curious on that win.

First of all, how many use cases they selected to change before? And then just on the education vertical in general, are you seeing more demand in that in that industry?

Alessio Artufo, CEO, Docebo: Hi, Erin. So, yes. The good call out, this is, you know, this is one of the world’s largest education publishers. And so, we’re very, pleased to welcome, them to our our family. As far as the use case, this is a full, Docebo, multi use case hybrid, category.

We are delivering capabilities for self enablement, customer support, onboarding, and then, a more customer focused use case for, continuing education, aspects. I think notably, you know, this customer came from a very well known large, legacy vendor, where the pains were, frankly, the the ones that we, hear the most in rigidity, not very usable. And so we solved for those by bringing in, you know, flexibility and and what we do really well, which is configuring an environment that has complexity for the customer. I think, you know, the the other things I can tell you is we we it was a very competitive deal against a number of both, I would say, market competitors as well as enterprise competitors, and we were pleased with winning it. Additionally, in the competition, we understand that there were also, if you will, the giant HRIS vendors with a learning module.

But, again, because their learning capabilities are, not up to par with the Chavo, we were able to overcome overcome those. So, all in all, a great deal. And as far as the question for broader education sector, it is, it is a segment that we we love. You know, selling a learning solution to educators is, something that comes natural to us. For sure, the Chebo, you know, is not geared towards the education space in the sense of, the academia, but we have a large amount of customers that use the Chevo, similarly, to this use case.

And so it’s definitely a growing footprint in the market.

Mike McCarthy, Vice President of Investor Relations, Docebo1: Thanks, Alexia. That that’s very helpful color there. And maybe I’ll just switch gears to, capital allocation. You’re fairly active on the NCIB this quarter on on share buybacks. Maybe if you can just give us an update on, capital allocation priorities for the second half of the year as we look forward?

Brandon Farmer, CFO, Docebo: Hey, Erin. So, you know, as we’ve discussed in the past, we really have three areas where we deploy our cash. Number one is investing back in the business where we see strategic opportunities at the moment. You know, we’re investing in headcount and sales and marketing from a government vertical perspective and r and d to really accelerate our AI road map. You know, buybacks is, you know, a good use of cash.

It’s not a fixed program, and it’s certainly a program we use to deploy cash when we see our shares are at attractive valuations. And m and a is in, you know, a vertical that we continue to look at, and, you know, we continue to wait for, an asset that has the right product, is at the right price and has the right people. And until all those three line up, we’ll continue to deploy our cash and other means.

Mike McCarthy, Vice President of Investor Relations, Docebo1: Thanks, Brandon.

Conference Operator: Our last question will come from Gavin Fairweather from Cormark. Please go ahead. Your line is open.

Matt Shea, Analyst, Needham and Company: Hey, good morning. Thanks for taking my question. Just a quick one on the federal sector. Given sales cycles, I’m curious how much visibility you have on expected RFP levels in 2026? And what are you hearing from your partners on upcoming activity levels, maybe versus the historical norms?

Brandon Farmer, CFO, Docebo: Gavin, we’ve taken the opportunity and we’re reaching out to all the federal departments ourselves. We’ve been talking to them for a number of years to prep Ocebo to become FedRAMP solutions. And I would say we’re building pipe not just on RFPs, but through self sourcing and pitching to Ocebo. You know, generally, what I would say from a sales cycle perspective is that q three tends to be the largest quarter from a federal contracting perspective because the government year end and September 30. And and that’s really why we’ve always, discussed that we expect to see more meaningful revenues from the federal sector in 2026 because we just received FedRAMP compliance.

And in order to pitch, validate product, procure before September 30, it’s tight. Now while we do see, you know, one or two potential deals to land, you know, we do think it’s the right approach to stay measured and continue to guide that

: this is more of a 2026 opportunity.

Alessio Artufo, CEO, Docebo: Thanks so much. We

Conference Operator: have no further questions. I would like to turn the call back over to Alessio Artufo for closing remarks.

Alessio Artufo, CEO, Docebo: Thank you, everyone. Thank you for participating in this earnings call. We look forward to seeing you in the next call for quarter three reporting in November. Have a great day. Thank you.

Conference Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.

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