Docebo Inc. — Call Transcript 2026

Good morning, everyone, and welcome to Docebo's Q4 2025 earnings call. All participants are currently in listen-only mode. We will open up the lines for a question-and-answer session momentarily. Analysts can ask questions by pressing star followed by the number one on their telephone keypad. We ask that analysts please limit themselves to two questions and return to the queue for any follow-ups. I'd now like to turn the call over to Docebo's Vice President of Investor Relations, Mike McCarthy. Please go ahead, Mike. Thank you, Julianne. Earlier this morning, Docebo issued its Q4 2025 results. The press release, which included a link to management's prepared remarks and our quarterly investor slide deck, were all posted on 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&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&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 US dollars. Now, I'd like to turn the call over to Docebo's CEO, Alessio Artuffo, and our CFO, Brandon Farber. Julianne, can you open up the Q&A queue? Certainly. Just as a reminder, to ask a question, please press star followed by one on your telephone keypad, and we ask that analysts please limit themselves to two questions and return to the queue for any follow-ups. Thank you. Our first question will come from Ryan MacDonald from Needham & Company. Please go ahead. Your line is open. Hi, thanks for taking my questions, and congrats on a nice quarter. Alessio, maybe the first one for you. It was really interesting to read in the prepared remarks about the potential power of integrating Harmony Search with 365Talents, as it seems like that over time, that the search data that you can get from Harmony Search and identifying skill gaps and then sort of integrating that with 365Talents could potentially help close those skill gaps, I think, you know, as the products are integrated. Can you just talk about sort of what the where the integration efforts stand on 365Talents? Do you also see sort of this similar potential integration? You know, as we think about 2026, you know, how close are we to that vision state? Is there a sort of a sales training to sort of do that cross-sell motion kind of going into place for this year? Thanks. Good morning, Ryan. Thank you for the question. First, let me tell you, I'm extremely excited to be able to talk about our acquisition of 365. It's been an important milestone for us. You're correct in saying that the integration between Docebo and 365 is strategically relevant for us. If nothing, because among other reasons, it gives us an incremental data mode, which in the agentic era is a very critical aspect of our strategy. When it comes to integration is designed to be a phased one. Let me ground it in the current times. We already have customers that we share. We already have an integration that is in production. We are aligned on our ideal customer profile. 365Talents operated in the strategic enterprise segment, and their customers are very complex organizations with very complex people workflows. When it comes to integrating the data of Docebo and the data of 365Talents and the opportunities, there are enormous and there are many. What I would say is, one of the things that I loved about 365Talents and one of the reasons that led us to this acquisition is also their AI-forward technology and thinking. To give you an example, they already have built agents that allow to build the entire job architectures, a job that would have required months with consultants, you know, even as not as long as two years ago, to be done in instance. Their agentic experience will accelerate our integration between the two platforms. You asked about our roadmap path and, you know, what it means for us. A couple of examples of integrated workflows that we envision. Number one, imagine this, you know, skills architecture that again, like I said, gets built via agents. Okay, this is available now. It's there. Learning programs, execution happens, right? Like within Docebo. As skill gaps are identified and detected as part of the regular workforce planning, skills are constantly assessed, and skills remediation happens in an integrated way with Docebo. Imagine an agent that is capable of understanding where the workforce stands against certain business goals, and the learning machinery via agents that creates content to continuously produce the material that remediates and empowers that workforce to get better. That is the power of the integration between Docebo and 365. Ryan, just on the second part of your question of the sales motion and the cross-sell. Really, on day one, right after the acquisition, we started cross-training our sales staff. Our acquisition thesis remains that there's gonna be three motions. We're gonna continue to sell 365 on a standalone basis. We're gonna sell back to our existing customer base and net new customers. We're gonna sell a combined Docebo 365Talents suite. We do expect our existing customer base to start attaching on 365 in H2 of this year, while we cross-train our staff in H1. Super helpful color there. Maybe as we think about sort of taking a step back on AI, clearly, you have the product vision and roadmap out there. Obviously in the markets over the last, you know, several months, there's been sort of obviously plenty of fears and concerns about sort of what AI can do in terms of disruption for broader enterprise software. I'm curious if you're seeing any signs of, let's call it, market fears and reactions actually in the field. What are customers saying about AI, and sort of their internal initiatives, and how is that sort of affecting the budgetary environment as you look ahead into 2026 here? The demand environment has been very strong. The field is constantly, you know, helping us better qualify how our customers in the L&D, you know, in the learning and management world, think about AI within their organization. There's no doubt. Look, we do live in a transformation phase. In terms of the sensibility of our solution. Look, I've done this for now over 20 years, and I would say that there are a few things that I am absolutely clear and sure about. The number one thing that I'm sure about is that what we have built at Docebo now, combined with 365 and the evolution of what we're doing, is incredibly hard to build and replicate. You just don't Cloud Code this stuff overnight. That is just pure marketing speak for that type of concept. And I will add to that, you know, I do spend nights in Cloud Code. I stop sleeping because of that. And what I would say is, you know, when you go beyond the surface of your first 15%-20% creation of a productive front end, the enterprise piping requires you to deliver at scale to hundreds of thousands and millions of users. You know, things like unsexy things like database specifics, multi-tenancy, role-based access, permission, all this stuff is what actually powers an enterprise application. I really like to emphasize that because beyond the surface, there's a lot of hard coding piping that folks don't talk about in LinkedIn. Second, I would say, Ryan, what we're hearing from customers reflects our thought and knowledge of the industries, which is that enterprises effectively are evolutionary and not revolutionary. And particularly in L&D, okay? Change, radical change is slow to come by. Now, we're not standing still. Again, we own the data, we own the compliance data, the skills chart data, and no LLM owns any of that. That data becomes then what? The catalyst for those agents to take action, right? Agents are not magicians, right? An agent without data is like a Ferrari with no fuel. What we do is making sure that our data structure and data investments are very strong, and on top of that, we build the agentic layer so that now we have the data mode, the agentic mode, and the combination of the two with our enterprise experience becomes the just proof that we're gonna be winners in this market. Really helpful color. Thanks again. Our next question. Thank you. comes from George Sutton from Craig-Hallum. Please go ahead. Your line is open. Thank you. Alessio, I wanted to talk about your DNA. Growing 9% in Q4 and guiding for 10%-11%, my sense is the DNA of this company is built very differently for much more significant growth. I wondered if you could just discuss that, if anything has changed there. I wanted to kind of pair that with your substantial issuer bid and your desire to buy a lot of stock down at these levels. Wonderful. Love the DNA question. I think your intuition is right in the sense that over the years, we have continued to operate the company with a few drivers that, you know, you look at those distinctly, then they make up for what you're seeing reflected in the data. What are those drivers? Number one, staying ahead of the curve in the market in terms of technology advance. That will fuel growth as a result. The investments in AI that we've made, not just now, but over the past few years, are aimed at that, okay? This is not a story of the roll-up. This is not a story of building a legacy business. It's a story of continued evolution. Second, disciplined execution. Innovating and building great products and being on the forefront of AI, in our point of view, should not be inconsistent with great financial discipline and focus on profitability. We believe that is something that we've gotten good, very good, I would say, at, and we can be even better at. I do love this nature of a business that has the technology and the fuel to accelerate growth moving forward, while having a rather strong profitability profile. That's where I would end. Brandon? For 2026, if we think about how do we re-accelerate, how do we beat our guide, you know, we really look at our business previously in three ways and now four ways. You know, firstly, mid-markets. Mid-market had a really strong 2025. We called it out for three quarters in a row. We expect that performance to continue, but that's not a real lever to re-accelerate growth. EMEA, again, had two strong quarters in a row. We do expect that continue. Enterprise, this is the real lever for us to re-accelerate and beat our guide. You know, to be completely transparent, we were not happy with our performance in 2025. Some of it was macro, some of it was performance, and our guide does assume that we performed similarly in 2026 as 2025. We are seeing early signs that that business is turning. The demand environment is there, execution is getting better, really Q1, it's time for us to just execute. We have the demand, we have the pipe, now it comes down to execution. The last one, or sorry, the last two is government. We're still in the early innings of government. You know, if I could use maybe just a hockey reference, the national anthem hasn't even finished singing. From partnerships to pipeline to RFPs, we're extremely early in this motion. We just became FedRAMP compliant at the end of May. We're seeing pipeline exceed expectations, we have the pipeline to win some large whale deals in Q3. When you think about how ARR converts to revenue, you know, our baseline assumption is that ARR comes in September 30th, and we really have three months of revenue. Not a significant revenue acceleration for 2026, more 2027. 365Talents, you know, I'd say we already have a fairly aggressive growth targets embedded within the guide. Really, going back, enterprise is the main lever to beat our guide. From an SIB perspective, you know, if you really just take a step back, SIB is designed with all shareholders in mind. It provides every shareholder an equal opportunity to participate. We filed our circular in late January, early February. Our view is clear, and it remains unchanged today. We believe the trading price of our shares does not reflect the underlying value of our business and our future prospects. From a mechanics perspective, the SIB is the most efficient path to meaningfully buy back shares. Under NCIB, due to our public floats and just the amount of shares traded daily, we're actually quite limited. To take out 3.6 million shares, it would take over two years under SIB. Lastly, I'll just note that even after the SIB, even after the acquisition, our net leverage remains low, and we still have flexibility to allocate capital. Great. Just one quick, more narrow question on your QSR win. Understanding that organization is doing this through franchises, I'm curious if your deployment will be mandated by the entire system, or is this a hunting license situation? Sorry, can you repeat that last point? Is this something mandated by the overall company, so all the franchisees take it, or is this a hunting license where you need to go sell individually to the franchisees? Nope, it is company-wide, corporate, and all franchisees. Super. Thank you. You know the sandwich name, but we can't say it. I do know the name. Our next question comes from Josh Baer from Morgan Stanley. Please go ahead, your line is open. Great, thanks for the question. Brandon, you just mentioned, you know, not being fully pleased with 2025, but some of the same sort of assumptions around, you know, the, that execution are embedded in 2026. Could you unpack that a little bit more? Like, what exactly are you assuming in the 26 guidance with regard to converting that pipeline, you know, contribution from new customers, expansion from existing customers? If you could just kind of talk about the assumptions embedded in that guidance a little bit more. I think Celeste speaking. I think, you know, our fundamental point of view is grounded on the observation of the work that our teams have been doing over the past few quarters, and the, and the leading indicators that are resulting out of that work. If you recall, a couple quarters ago, we instituted, you know, effectively a new leadership team in the go-to-market team. After Kyle Lacy joining the CMO, subsequently, a new CRO was appointed in Mark Kosoglow, and we have effectively reshaped our GTM motion as a result of these leaders coming in. You know, this new GTM brought improvements across the board. I would say that, you know, we have focused on a number of different areas where we thought we could do better: process reengineering, people optimization, and notably, a deliberate strategy to focus on qualitative demand as opposed to quantitative demand. What that means is we have taken steps to really be deliberate in the leads that we believe are most suited to win, that belong to our category, and have implemented processes to pass on to certified partners, very small business leads, that are not necessarily any more in line with the strategy of the Docebo. We are a mid-enterprise to strategic enterprise company, and we need to focus there. That exercise is paying off. We're seeing that in the leading indicators about enterprise pipeline. We're seeing that in execution in the field. The comments from Brandon are the result of that observation. We have data and that informs our belief that the enterprise segment and government will be catalysts for our reacceleration. Thank you, Alessio. Just to follow up there with some of the, you know, refocused go-to-market, like, just looking at the ACV for new customers, which was down, is there anything to read into that? Like, is that a result of the reshaped go-to-market or, you know, obviously just one quarter of that new customer metric can move around a lot. How should we think about that? Yeah, it's really our mid-market team is really firing on all cylinders. When you look at that metric, it's heavily skewed by the number of customers you sign during a given quarter. You know, enterprise wins tend to be 1 unit at a high value. Mid-market tends to be many units at a lower value. Just the mix overall, you know, tends to skew it from quarter-to-quarter. Generally, you know, we were actually quite pleased with all our segments in Q4. You know, as mentioned in our prepared remarks, it was the strongest gross bookings we've had since Q4 of 2021. The business performed, you know, as everyone knows, we had some structural headwinds that masked the top line, ARR growth, with the wind down of Dayforce and the loss of AWS coming in effect in Q4. Josh, it's just really a matter of mid-market, performing really well in Q4. Okay. Very helpful. Thank you. Our next question comes from Erin Kyle, from CIBC. Please go ahead. Your line is open. Hi, good morning, and thanks for taking the questions. I wanted to ask, and maybe dig into the net dollar retention, for 2025, down year-over-year to 99%. I expect a lot of that was largely due to AWS, so maybe you can just unpack that number a bit for us. Yeah, you're exactly correct. Excluding AWS, we would actually have been up 1% year-over-year, so we would have been at 101%. There's a lot of good trends within NRR. We saw sequential three quarter improvements in net retention, excluding AWS from Q2 to Q3 to Q4. When we look at 2026, obviously, you know, from a retention perspective, we forecast four quarters out. Again, we're actually seeing strong trends in Q2, Q3, Q4 into 2026 as well. You know, one thing is when we look at Q4, even with a record gross bookings, you know, we've talked about previously how typically our mix of gross bookings is 65% new logo, 35% expansion. In Q4, is 60% new logo, 40% expansion. Our expansion delivered in Q4, you know, our ideal mix is 60, 40, or even 45, 55. As we all know, expansion is just much more efficient from a cost perspective. You know, new logos, acquiring new logos is very expensive. We're really focused on the expansion perspective. 365Talents really helps us accelerate that, and, you know, we're focused on improving that NRR in 2026. Thanks, Brandon. That's a lot of helpful color there. maybe one more for you, or Alessio, if you can give us an update on the AI credit pricing model that you talked about last quarter? is consumption pricing something you've been looking at moving towards more broadly, or how should we think about that? Hi, Erin. Yes, it's Alessio. One of my favorite topics. Let's go. AI credit pricing, and more broadly speaking, the topic of monetization. look at really hot topic in the industry right now. we have spent, you know, a considerable amount of time lately, thinking through this really deeply. I'm gonna share my thoughts. Include credits, but they need to be taken in the context more broadly of the overall, you know, AI monetization strategy that is becoming a very pervasive narrative these days. First, let me start by saying, head-on, we are testing AI credits at Docebo. we have maybe a month and a half worth of data, so it's early days, and the results of that work have been a mixed bag, frankly. In some instances, customers, particularly technology, first customers, I would say, are receptive to the idea of, and in other instances, and frankly, more, there has been pushback. Pushback that is kind of CFO, CIO-led, resulting from their desire for predictability and discomfort with non, strict controls and forecastability. Okay? That's where we stand with credits. If that's okay with you, though, I'd like to broaden that question to our point of view on the narrative on pricing, because the argument that I'm hearing a lot of people bring it up is, "Hey, in this new AI first era, per seat pricing is the legacy model," right? That's the general sound of it. You know what we did? We went and we dug deep. We looked at the number of companies, over 30. We analyzed anything from, yeah, AI native, LLMs, and et cetera, et cetera. What we found out has actually been really interesting. The number 1 pattern has been the majority of the companies, even across AI native companies, are using what we would call a hybrid model, which is what Docebo has today, which is a mix of per seat pricing combined with credit pricing. The second finding was that a lot of AI native companies actually do not have any concept of credit pricing or outcome pricing, and are per seat only. you know, we've been analyzing the why, that's actually really simple, that's because the customers won't buy it, that's because their use case and their industry doesn't lend itself to be adapt to a full outcome or a full credit-based model. I'm really passionate about this topic. We're going to continue exploring new avenues. I do believe there is room for innovation on the pricing side in AI, but I also have learned over the past 20 years that the best pricing model is the one that meets the needs of the company with the business processes of your customers. What we're not gonna do is, on the trend basis that everybody wants credits to be the thing, is to shove a pricing model down customers' throat. Rather, we'd work with customers to understand how their buying trends are, and we listen to the field, and we do a lot of audience insights in our customers' calls. Great topic, more to come. We'll report back on our findings as we continue to explore credits. Thanks, Alessio. That's a lot of helpful detail there. I will pass the line. Thank you. Thank you, Erin. Our next question comes from Robert Young, from Canaccord Genuity. Please go ahead. Your line is open. Hi, good morning. First question for me will be on this force reduction that is after the quarter. It seems as though it's optimization in R&D, but I'm trying to get a better idea of what the drivers are there, if that's just duplication after the acquisition of 365Talents, or if it's a more permanent reduction, or are you preparing for a shift towards hiring up in AI? Maybe if you could just talk about what that implies on, you know, the strong EBITDA margins you reported this quarter. Should we expect that to continue to grow higher on the back of this force reduction? Hi, Rob. Good morning. Good morning. Our restructuring was, you know, followed a few specific criteria. First, the most important fundamental is, we continue to use the performance as a strong mechanism to, you know, grade ourselves against our own expectations, against our shareholders' expectations. Our job is to continue to have the best people in seat to deliver against those expectations. That's kind of, I would say, an evergreen, an evergreen rationale that applies here. Second, a more targeted action was taken to accelerate something that is not new. That is, moving our product capabilities closer to our customers. As you very well know, over 70% of our customers are in North America. Very few people in product are in North America. That distance, that has, you know, accumulated between our customers and our product culture, is one that we believe, needs to be remediated and addressed, and so we've taken steps to address that. We've chosen to, you know, co-locate these teams in hubs like Toronto, and just to be absolutely clear, that doesn't mean that we are exiting our developing Italian presence, that remains foundational to our products. It doesn't mean that there is any action that has got to do as a derivative of the 365 acquisition. We simply want to give our customers the confidence that we have a product team and organization that is also closer to them. As a result of that, we're not pausing anything to rebuild, we're just accelerating. We have retained our core architectural leaders to ensure that continuity, this transition will not delay, if nothing, it will accelerate our agenda roadmap. I would say, you know, in general, as we tap into new markets and as we have the ability to hire people in new territories, we're also excited about the opportunity to improve our hiring profile and continue to augment the skills of the people at the ship. I think Brandon Farber wants to add something on the EBITDA question. Hey, Robert Young, on the EBITDA side, you know, as Alessio Artuffo mentioned, the main goal of the reduction was not for cost savings perspective. Although we are expanding EBITDA margins, the main reason for that is just discipline throughout the business while we grow it. When you look at the guide relative to how we performed on EBITDA in 2025, it's about 2% EBITDA leverage year-over-year. You know, when I think about that at a really, really just high level, you know, there's gonna be 1% leverage gained in G&A year-over-year. That's just continued discipline that we've talked about for years within G&A. Then roughly 0.5% of leverage in sales and marketing and R&D, where we continue to just focus on sales efficiencies and, you know, gaining leverage in R&D as we continue to use various tools to allow us to become more efficient. Okay, thanks for all that. second question, I think adding on to a previous question around the QSR and the casual dining traction. You've had a lot of traction in that space over the last, you know, 5+ years. Can you just talk about how much opportunity is left and what the competitive dynamic looks within that specific end market? It seems to be driving a lot of new customer growth over the last couple of years. two quick questions. Small, quick question. Sure. I was just gonna ask just a small quick question, was, in the gross bookings metric you gave, a 12.5% growth, did that include Salesforce and AWS, or is that just Salesforce? Alessio, I'll let you answer the question starting with that. I'll start with the QSR part of the question, and then I'll pass on to Brandon Farber, the gross margin question. Sorry, growth ARR question. You're right. QSR is a relevant market for us, one in which we have continued to win landmark logos. That is really the result of a couple of things. Focus, I would say sales strategy and a better defined targeting of the accounts that have a higher likelihood to convert with Docebo. Two, a deliberate product strategy that addresses some of the peculiar needs that this industry has. Some of those include the way they report on data, others include the way they organize their own personnel across franchises and corporate offices, and that requires rather complex ways of mapping users across the geos, entities, and so on and so forth. By the way, let me just use this example to my reference prior back to the defensibility of a true enterprise-grade system. This stuff is really complex. It's multilayered, and it takes years to build. Back, though, to QSR, we believe the opportunity ahead of us is pretty significant. We have in-roadmap capabilities that further make us even more compelling. The QSR space is a very it's a space that requires also a deep usage of adaptive mobile technology. We are thinking and rethinking our mobile strategy in that regard to have a more frontline workers technology readiness available. As part of that offering, let me finish by saying, there is a module of the Docebo called AI Virtual Coaching. That is at still, I would say, rather early days, that has the potential to become an absolute killer in use cases for front-end workers and QSR-like. We're very excited about it. We're investing in it. We are actually going to put more resources and more effort into it to accelerate its development. So we believe this, the QSR opportunity is a really significant one for us. Rob, if we think about the top 10 QSRs, we have about four of them as customers. You know, there are still top four largest QSRs that we do not have, so there's still large market opportunity for us to continue to gain. On your question on the gross bookings, the 12.5%, that's actually just our total ARR. It includes growth and churn. That includes Salesforce, sorry, that excludes Salesforce, but it includes AWS. If you're looking for a metric of our growth, excluding both Salesforce and AWS, that was closer to 14.5%. Thanks a lot. Our next question comes from Richard Tse from National Bank Capital Markets. Please go ahead. Your line is open. Yes, thank you. You know, with respect to the environment in general, has kind of this AI narrative impacted your sales cycles at all? you know, is there kind of like a swell building as your prospective customers evaluate, you know, really what they want to do? Because obviously, the environment is changing so quickly. Just kind of want to get your perspective on that. Richard, we really monitor our demand in multiple ways. If the question is, are you seeing a headwind relative to this AI first narrative, the answer is no. As far as our sales cycle, our velocity of execution, one of the metrics that I am keeping an eye on in that area is exactly how long does it take us in different segments to get to deal done from qualification occurred. The recent data is incredibly encouraging. We've shaved off weeks of sales execution, particularly in our mid-market and mid-enterprise space. When you do that, what effectively it means is that you're almost gaining a month of selling action in the year. That has been very significant, and we are taking steps to improve that even further. Okay, thanks. With respect to capital allocation, you know, obviously, with you continuing on the SIB, there's a high degree of conviction. Post that sort of SIB concluding, you know, the stock doesn't sort of move higher, you know, off of the back of that. How are you thinking about capital allocation? Would you consider additional buyback programs, or are you kind of evaluating acquisitions, and ultimately, what's sort of your comfort to leverage ratio here? That's a great question. On just on the acquisition front, doing an acquisition this size of 365Talents in 2026, it is unlikely. You know, we have a lot of things to focus on for 2026. We want to really focus on execution and re-accelerate Docebo organic, really perform and execute on our acquisition of 365Talents. From a buyback perspective, if our shares continue to trade at depressed valuations, we will continue to buy back shares under the SIB, even after the SIB. From a net leverage ratio, when we think about, you know, net cash to EBITDA, you know, we certainly, you know, I think we get very uncomfortable, above 3, under 3, we are more comfortable. That's kind of our line in the sand. Okay, thank you. Our next question comes from Ken Wong from Oppenheimer. Please go ahead. Your line is open. Fantastic. Alessio, I wanted to just touch on 365Talents. You know, this is the largest M&A at the company, yeah, not exactly, you know, a competency or a muscle that you guys have. What's your comfort in your ability to absorb such an acquisition and any appetite for additional M&A beyond this? I would say a number of things on this. The discipline of skills intelligence is actually very adjacent relative to the learning space. There are obvious overlaps between the two, but you're absolutely right in saying that the use cases, and in some instances, the persona buyer can vary. That is why we've taken a deliberate stance of maintaining, for a period of time, the 365Talents entity and brand active as we implement both the integration, from a product capability standpoint, that is priority number one, and in parallel, we integrate the commercial motions. That enablement that is necessary to blend the organizations is undergoing and will take time. In the meantime, we have structured our organization at Docebo with resources that are going to be, you know, experts and are gonna live within the 365Talents world to become really the translators of the value of 365Talents in our market. The other thing that I would say about this acquisition is that Brandon briefly mentioned earlier, that I think it's really important, as we, as we have this incredible base of over 3,500 customers active, one of the objectives was also to have an opportunity to differentiate and have another entry point other than the LMS, in these organizations, they may already have an LMS in place. You know, dismantling an LMS set up from a large enterprise, it can be a year's worth of work. Our opportunity here with this effectively our first, the true second product, is to knock at the door of organizations and offer a value that integrates with their existing LMS. As we enter that secondary door, we can then consolidate that account under a unified strategy. You can appreciate how the adjacency of the capabilities and the integration strategy from a product and commercial standpoint, lends itself to what will be a, you know, I believe, a very successful second product story that will have an impact on our NRR in the future. Fantastic. Really appreciate the look into the strategic rationale. Then, Brandon Farber, maybe kind of building on that, as we think about the fiscal 26 guidance, I guess, any change in your philosophy here as you have to think through some of the moving pieces that go along with 365Talents, you know, the ability to integrate, obviously operating kind of two teams in parallel? Like, how should we think about, you know, what prudence was baked in? From a 365Talents perspective, I would say we didn't take a conservative approach. We had a very tight business case. We're really factoring in high growth from that business, we are expecting to execute on that. You know, when we think about the different aspects of revenue, you know, talking about Dayforce, you know, it's going to be down to roughly 3%-4% of our total revenues. You know, we publicly disclosed that we'll generate roughly $9 million pro rata from 365Talents. You know, we continue to put no deals greater than $1 million ARR within our guide. We do have a number of those in our pipeline, it has been over 12 months since we've closed one, we feel like the prudent aspect is to exclude that from our guide. and then, you know, just as I mentioned, government, you know, while it's, it is in our guide, it's only there for three months, just given the seasonality of the Fed spend, really geared towards September 30th. Those are, those are the main aspects that I think of from a revenue perspective. Got it. Just a quick follow-up. Any kind of top line or bottom-line synergies between the two orgs that are factored in? Bottom line, no. Top line synergies is really just what we talked about, is going back to the Docebo base and selling 365 to our current customer base. Okay, fantastic. Thanks a lot, guys.Our next question comes from Matt VanVliet Yeah, good morning. Thanks for taking my question. I guess now that you have sort of the Go-to-Market team reorganized like you wanted, with the addition of the federal opportunity maybe being a little bit more wholesome than it was before, where do you feel like you're at in terms of sales headcount? What's the plan kind of baked into the guide for 26? Then just maybe longer term, how do you think about headcount additions correlating with top-line growth, or can you decouple those a little bit with, you know, using AI tooling and other efficiency mechanisms? From a sales headcount perspective, you know, on the government side, we really invested in 2025 to get additional quota carriers in seats. We feel like at the start of 2026, we're well set up from a quota perspective, the focus is to win more business with the same amount of headcount. We're really focused on sales productivity, sales efficiencies, using tools to improve those efficiencies. You know, 2025, you know, I think we ended the year on a good note from a sales efficiency perspective. We started the year fairly inefficient in 2025. We're continuing to focus on it. You know, we really look at our pipeline to indicate when we need to add quota carriers. While we have a budget, we don't stick to it. We don't hire just to hire, we hire based on pipeline, and we'll continue to look at that on a quarterly basis. Very helpful. I guess, just on the other side of the AI question, you know, how much demand or maybe even deals closing are you finding as customers want to have a more complete platform to train their employees on maybe the usage of those LLMs, how to, you know, get value out of them, how to maybe protect the organization's data from not including overly proprietary things and prompts, and things of that nature? Is it driving a fair amount of top-of-funnel demand and potentially even deal closing? I'd say among the trends in the audience insights that we have, I would say, you know, what I, what I hear you describe more as an AI readiness is one of those trends. I think specific companies in the tech sector are more concerned with advancing their people, AI depth. Conversely, what we're finding is that sectors that are more institutional, like manufacturing, healthcare, and data sensitive, frankly, in an anti-cyclical kind of way, asking us to put in place measures for AI to be deeply controlled, enabled, disabled, toggled off. Those controls capabilities have become an absolute must requirement, and we are seeing evidence of that, unsurprisingly, frankly, also in the government space. I think it's a very interesting phase in which you have, the ones that are on the offense side and want to use our technology to get smarter about AI, and you have the ones that are completely on the defense side and are still somewhat skeptical of the downsides of AI, and ask us for, you know, observability, controls, and compliance. We're playing on both fronts. All right, great. Thank you. Thank you. Our next question comes from Suthan Sukumar from Stifel. Please go ahead, your line is open. Good morning, gents. For my first question, I wanted to touch on the competitive landscape. Aside from Workday by Sana, I'm not sure I'm seeing any major moves in the industry. I'm kind of curious, from your perspective, more broadly, you know, how are you seeing competitors respond to AI, and executing on this opportunity? I'd say this. Look, first, I will tell you where I stand philosophically on the topic of competition. While we get educated, I like to say to the team, we are incredibly self-centric and self-focused. I don't want this company to chase the others. I want us to lead the pack, innovate, and be very, very focused on ourselves. That is the philosophy I take on competition. When I get education from the team about what they hear about the competitive landscape, I think your reflections are correct. There is not a high degree of innovation happening. Fortunately for us, companies in our space historically have taken more prudent approaches to R&D. I would say the biggest trend that we are seeing, that I'm having evidence of, is what I would call AI by marketing. AI by marketing is the art of calling everything agents, even when they're not. What I see is, you know, a bunch of pretty simple copilots, defined as revolutionary agents when they're not. An agent is an agent by definition, it should be studied what that definition is. An agent takes decisions, an agent solves complex business problems, and we understand the difference between a copilot and an agent because we're building both. I would say the market is frothy. There's not a ton of real disrupting value. I'd say Sana, acquired by Workday, was that one start-up that had a edge in that area. Certainly, you know, it becomes challenging for a company like that to go at the same speed and pace within a machinery like Workday. I would assume. Again, none of my business. All I know is that when we go in the market and we introduce our AI capabilities, we stand out big time. That's what we're keeping on doing. Okay. Okay, great. For my second question, I wanna touch on from more of a bookings and pipeline perspective. Can you speak a little bit about what the how contribution has been trending with respect to your pipeline from your SI partners like Deloitte and Accenture and any color on sort of how deal sizes and deal scope has been evolving when partners like these are involved? Yes. Answer straight to your question, nearly 80% of our enterprise pipeline now has a system integrator attached to it. We work with a number of system integrators, from the Deloittes and Accentures of the world, to smaller, medium-sized system integrators that are either regional or leaders in their respective market. That work that has happened over the years is certainly paying off. Specific to system integrators, things that I can share is that, you know, we recently announced that with Deloitte, we've, for example, completed a process to enable Deloitte plus Docebo to become a product that you can purchase through the Amazon AWS Marketplace. Effectively, that Deloitte customers that want to implement a learning platform can buy Docebo in partnership with Deloitte using their AWS credits, which is a very favorable vehicle of purchasing, especially for large enterprises that have oftentimes, you know, credits to be managed and spent on AWS site. You know, everybody wins because Deloitte wins, AWS wins, and ultimately, Docebo benefits from what is a very accretive type of sale. Additionally, we're working with Deloitte and other system integrators on their own academies. What we're finding is that these system integrators are implementing academies using Docebo, which means they power their own customer academy using Docebo. This is becoming a catalyst for very large organizations that are approaching the system integrators. Notably, you know, it's happening with major airlines, major transportation groups that are going to the system integrators and saying, "Hey, I'd really love to implement your academy." Then when they scope out what they really want, this becomes less of a broad academy play, but more of a direct deal with the system integrator. So it also acts like a lead gen opportunity for us. The work that our team is doing on system integrators is very good, and there is more to be done, and there are more integrators that we're talking to, that we plan to sign over the next few quarters, and so pretty excited about it. Okay, great. Thank you for the color. I'll pass the line. Our next question comes from Gavin Fairweather from ATB Cormark. Please go ahead, your line is open. Hey, good morning. Thanks for taking my question. Just on 365Talents, I'm sure, you know, you had a base deal or a base understanding about your upsell and bundle deals, you know, when you did that acquisition. I'm curious what market feedback you're getting from clients and prospects, and how that's making you feel about the opportunity vis-a-vis your original expectations. Gavin, very relatively early days, we're a month plus in, and I can tell you that we had certain phases of amount of opportunities that we would generate of companies that want to look at 365. I recently was on a webinar with Loïc, the CEO of 365, and close to 1,000 people registered for the webinar, a number showed up, and a big percentage of the people after the webinar asked for a demonstration and declared in the webinar that they were looking for a solution or looking to improve their current solution. The pervasive feedback that we're getting across all calls, is that companies do have a skills strategy, but it's fragmented from a platform and system standpoint, meaning they may have a skills module and seeing their HRIS or HCM system, but it's not connected to their learning execution strategy in the way that we plan to do it. When we tell them a story of this automated cycle or across the skills gap, the skills engine, their workforce planning strategy, their career development and internal mobility use cases, with learning attached to it in a kind of seamless way, and we demo that to them, their reaction is incredibly positive. We are a month in. Our integration is still relatively simple, all things considered, but over... You know, imagine what will happen when we execute on our real vision over the next two to three phases of integration, which will occur within the next 12 months. All of that to say, the leading indicators are incredibly positive. I would also say the other thing that excites me the most is, you know, it's clear we have a enterprise first strategy. Complex organizations get the best out of Docebo, and the numbers that we have in our integration dashboards of leads coming in are very skewed against that threshold of 1,000 employees and above, which we have set for this product. So we're bang on in terms of the pain that is felt from the type of customers that we want to. That's product market fit, and now we just need to execute. Thanks so much. I'll pass the line. Our next question comes from John Shao from TD Cowen. Please go ahead, your line is open. Good morning. Thanks for taking my question. You mentioned Docebo has the data mode, could you maybe break down that data mode to help us understand what data belongs to you versus your customers? Maybe for data owned by your customers, how much liberty do you have to, you know, leverage that as additional resource? Sure. Well, you know, when you think about what the LMS is, it's a complex workflow engine. At the business layer, where you have a lot of functionalities that connect learners to courses. Those courses can be in a variety of ways, right? The general concept, of course, can be anything from a PDF or procedural to a learning program that occurs over the course of three months, to a classroom workshop, to a series of virtual led, instructor, a Zoom-like programs. All of that can be blended, by the way, in creative ways. When you are an enterprise of any sort, but particularly true in anything that is regulated, that data, that historical data becomes incredibly important, not just from a strategic standpoint of talent development and talent management, but particularly because there are regulators that you have to prove that you've taken certain steps to, you know, improve your people. You have a lot of data that companies sit on that doesn't live elsewhere. Needs exist and needs to be inspectable, auditable, and there needs to be trails that prove what you've done when, and if you were compliant at all times. That is the LMS in its own, I would say most simple compliance-related form. You have data relative to external use cases. You have years of use of the Docebo platform to prove that, you know, by enabling your customers and/or your partners to do the work that they need to do or to buy more by educating them, they indeed deliver better experiences if they're partners, or they buy more, or they stick around longer if they're customers. That data is invaluable to any marketing organization, to any revenue organization. On top of all of this, we're adding the data moat of skills. Now we're talking millions of records, as very large companies, of knowledge that an individual went from a certain skill set to a new skill set over different levels over the course of years. That data, once again, is not available to third-party sources. The reason why all of that data is incredibly important is that in order to, in order to operate automation and decision-making on top of it in the form of agents are not this ET alien, they are fundamentally workflow executors. They execute workflows on clean, well-organized, structured data sets. Whether the agent lives in your LLM and called via an MCP server, or the agent is a hyper-specialized agent, that Docebo has the knowledge to create and solves very specific problems in the LMS world, it sort of kind of doesn't matter. They can live in a number of different places. The thing is, the what they need in order to provide an outcome is the data that resides in our systems. I hope that helps. Got it. Thank you. My second question is in terms of the customer spending, I understand ACV is around 6-7K, but how does that number compare to, let's say, your customer's corporate learning budget? Is it around 10% or is a much higher number? Because I'm asking this question because one of the key argument for AI disruption is cost savings. It's a very interesting question. You know, the learning tech stack is much wider than you'd expect. Every company has from HRIS system to LMS to skills, the tech stack is wide. If you actually look at a graph of the number of SaaS companies that are in the L&D or, you know, CHRO tech stack, it is wide, and LMS is not the biggest one. You know, obviously, HRIS is by far in the lead, and it is materially higher than the cost of an LMS. That's just the reality. The average ACV of $67,000, you know, that's really Docebo continuing to move up and up market. You know, we really look at an enterprise ticket now at, you know, roughly $250,000. While there's competition in the enterprise space, Docebo is typically very competitively priced, maybe on the top end. Compared to our competitors, we're roughly within the range. We continue to see enterprise willingness to spend that money. There's been no pushback on price, on renewals, on new prospects. You know, pricing is holding strong. Companies see the value in an LMS. Thank you so much. I'll pass the line. Our last question will come from Kevin Krishnaratne from Scotiabank. Please go ahead, your line is open. Hey there. Thanks for fitting me in. Just one question, maybe two parts for Brandon. Brandon, you talked about in the prepared remarks on reaccelerating organic growth. I think, you know, you did 9.5% subscription growth in Q4. I think, maybe you can help us here on what the organic growth expectation is for Q1 after 365Talents coming down a little bit, but do you expect that to sort of stabilize and grow in Q2? Is there anything that we should be thinking about in Q2, whether that's, you know, anything from Dayforce churn, any kind of renewals coming up in Q2 that we need to consider? I'm just wondering how we think about the sort of organic growth trajectory here. Yeah, the reacceleration organic, we're modeling Q3, Q4 onwards. You know, there's a number of factors. Number one, if you look at, Q1, Q2, our enterprise performance was below expectations. You know, as we lapse some of the quarters that had material impacts due to Dayforce wind down, which was Q3 and Q4, as we lapse AWS, you know, our ability to reaccelerate growth becomes greater and greater. In our own internal models, that acceleration starts in Q3 and continues in Q4. Okay, that's super helpful. The last piece you talked about, you know, strength in mid-market, enterprise is gonna be a driver, but can you talk about the SMB or the low end of your base, and how much of that is in your ARR? Is there anything to think of there in terms of, you know, pressures, you know, current, those type of companies that are more on the low end of the customer profile? ARR below 50K, which is, you know, generally the benchmark we consider commercial or SMB, it's down to about 16% of our ARR. At the same time, it's actually interesting to note that our growth retention in that area actually improved year-over-year. You know, we were always kind of, you know, in the low, or I should say, mid-80s, and we actually saw sequential improvement in the commercial segment. It's an area that we've restructured how we manage it from account management perspective. We've put a little bit more focus, a little bit more investment, and we're actually seeing that investment pay off. That's more from an account management perspective. You know, as Alessio mentioned, you know, from a new leads perspective, we have new benchmarks, some go to partners, some to go to us. That existing customer base, below $50K, it's actually a much healthier customer base than it's been in prior years. Okay. good to hear. Thanks a lot. Pass the line. We have no further questions. I would like to turn the call over to Alessio Artuffo for closing remarks. Thank you, everyone, for being in the Q4 25 earnings call. We are very excited about the trajectory of Docebo. A milestone ahead of us is called the Docebo Inspire in April in sunny, warm Miami, and we look forward to seeing you there. Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker 12: Good morning, everyone, and welcome to Docebo's Q4 2025 earnings call. All participants are currently in listen-only mode. We will open up the lines for a question-and-answer session momentarily. Analysts can ask questions by pressing star followed by the number one on their telephone keypad. We ask that analysts please limit themselves to two questions and return to the queue for any follow-ups. I'd now like to turn the call over to Docebo's Vice President of Investor Relations, Mike McCarthy. Please go ahead, Mike. Good morning, everyone, and welcome to Docebo's Q4 2025 earnings call. good morning everyone and welcome to docebo's q4 2025 earnings call All participants are currently in listen-only mode. all participants are currently in listen-only mode We will open up the lines for a question-and-answer session momentarily. we will open up the lines for a question-and-answer session momentarily Analysts can ask questions by pressing star followed by the number one on their telephone keypad. analysts can ask questions by pressing star followed by the number one on their telephone keypad We ask that analysts please limit themselves to two questions and return to the queue for any follow-ups. we ask that analysts please limit themselves to two questions and return to the queue for any follow-ups I'd now like to turn the call over to Docebo's Vice President of Investor Relations, Mike McCarthy. i'd now like to turn the call over to docebo's vice president of investor relations mike mccarthy Please go ahead, Mike. please go ahead mike

Speaker 11: Thank you, Julianne. Earlier this morning, Docebo issued its Q4 2025 results. The press release, which included a link to management's prepared remarks and our quarterly investor slide deck, were all posted on 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&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. Thank you, Julianne. thank you julianne Earlier this morning, Docebo issued its Q4 2025 results. earlier this morning docebo issued its q4 2025 results The press release, which included a link to management's prepared remarks and our quarterly investor slide deck, were all posted on our investor relations website. the press release which included a link to management's prepared remarks and our quarterly investor slide deck were all posted on 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. 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&A, Docebo would like to remind listeners that certain information discussed may be forward-looking in nature. before we begin this morning's q&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. 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. 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. 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&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 US dollars. Now, I'd like to turn the call over to Docebo's CEO, Alessio Artuffo, and our CFO, Brandon Farber. Julianne, can you open up the Q&A queue? During the call, we will reference certain non-IFRS financial measures. 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. 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&A for additional information regarding our non-IFRS financial measures, including reconciliations to the nearest IFRS measures. please see our md&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 US dollars. please note that unless otherwise stated all references to any financial figures are in us dollars Now, I'd like to turn the call over to Docebo's CEO, Alessio Artuffo, and our CFO, Brandon Farber. now i'd like to turn the call over to docebo's ceo alessio artuffo and our cfo brandon farber Julianne, can you open up the Q&A queue? julianne can you open up the q&a queue

Speaker 12: Certainly. Just as a reminder, to ask a question, please press star followed by one on your telephone keypad, and we ask that analysts please limit themselves to two questions and return to the queue for any follow-ups. Thank you. Our first question will come from Ryan MacDonald from Needham & Company. Please go ahead. Your line is open. Certainly. certainly Just as a reminder, to ask a question, please press star followed by one on your telephone keypad, and we ask that analysts please limit themselves to two questions and return to the queue for any follow-ups. just as a reminder to ask a question please press star followed by one on your telephone keypad and we ask that analysts please limit themselves to two questions and return to the queue for any follow-ups Thank you. thank you Our first question will come from Ryan MacDonald from Needham & Company. our first question will come from ryan macdonald from needham & company Please go ahead. please go ahead Your line is open. your line is open

Speaker 15: Hi, thanks for taking my questions, and congrats on a nice quarter. Alessio, maybe the first one for you. It was really interesting to read in the prepared remarks about the potential power of integrating Harmony Search with 365Talents, as it seems like that over time, that the search data that you can get from Harmony Search and identifying skill gaps and then sort of integrating that with 365Talents could potentially help close those skill gaps, I think, you know, as the products are integrated. Can you just talk about sort of what the where the integration efforts stand on 365Talents? Do you also see sort of this similar potential integration? You know, as we think about 2026, you know, how close are we to that vision state? Hi, thanks for taking my questions, and congrats on a nice quarter. hi thanks for taking my questions and congrats on a nice quarter Alessio, maybe the first one for you. alessio maybe the first one for you It was really interesting to read in the prepared remarks about the potential power of integrating Harmony Search with 365Talents, as it seems like that over time, that the search data that you can get from Harmony Search and identifying skill gaps and then sort of integrating that with 365Talents could potentially help close those skill gaps, I think, you know, as the products are integrated. it was really interesting to read in the prepared remarks about the potential power of integrating harmony search with 365talents as it seems like that over time that the search data that you can get from harmony search and identifying skill gaps and then sort of integrating that with 365talents could potentially help close those skill gaps i think you know as the products are integrated Can you just talk about sort of what the where the integration efforts stand on 365Talents? can you just talk about sort of what the where the integration efforts stand on 365talents Do you also see sort of this similar potential integration? do you also see sort of this similar potential integration You know, as we think about 2026, you know, how close are we to that vision state? you know as we think about 2026 you know how close are we to that vision state Is there a sort of a sales training to sort of do that cross-sell motion kind of going into place for this year? Thanks. Is there a sort of a sales training to sort of do that cross-sell motion kind of going into place for this year? is there a sort of a sales training to sort of do that cross-sell motion kind of going into place for this year Thanks. thanks

Speaker 1: Good morning, Ryan. Thank you for the question. First, let me tell you, I'm extremely excited to be able to talk about our acquisition of 365. It's been an important milestone for us. You're correct in saying that the integration between Docebo and 365 is strategically relevant for us. If nothing, because among other reasons, it gives us an incremental data mode, which in the agentic era is a very critical aspect of our strategy. When it comes to integration is designed to be a phased one. Let me ground it in the current times. We already have customers that we share. We already have an integration that is in production. We are aligned on our ideal customer profile. Good morning, Ryan. good morning ryan Thank you for the question. thank you for the question First, let me tell you, I'm extremely excited to be able to talk about our acquisition of 365. first let me tell you i'm extremely excited to be able to talk about our acquisition of 365 It's been an important milestone for us. it's been an important milestone for us You're correct in saying that the integration between Docebo and 365 is strategically relevant for us. you're correct in saying that the integration between docebo and 365 is strategically relevant for us If nothing, because among other reasons, it gives us an incremental data mode, which in the agentic era is a very critical aspect of our strategy. if nothing because among other reasons it gives us an incremental data mode which in the agentic era is a very critical aspect of our strategy When it comes to integration is designed to be a phased one. when it comes to integration is designed to be a phased one Let me ground it in the current times. let me ground it in the current times We already have customers that we share. we already have customers that we share We already have an integration that is in production. we already have an integration that is in production We are aligned on our ideal customer profile. we are aligned on our ideal customer profile 365Talents operated in the strategic enterprise segment, and their customers are very complex organizations with very complex people workflows. When it comes to integrating the data of Docebo and the data of 365Talents and the opportunities, there are enormous and there are many. What I would say is, one of the things that I loved about 365Talents and one of the reasons that led us to this acquisition is also their AI-forward technology and thinking. To give you an example, they already have built agents that allow to build the entire job architectures, a job that would have required months with consultants, you know, even as not as long as two years ago, to be done in instance. 365Talents operated in the strategic enterprise segment, and their customers are very complex organizations with very complex people workflows. 365talents operated in the strategic enterprise segment and their customers are very complex organizations with very complex people workflows When it comes to integrating the data of Docebo and the data of 365Talents and the opportunities, there are enormous and there are many. when it comes to integrating the data of docebo and the data of 365talents and the opportunities there are enormous and there are many What I would say is, one of the things that I loved about 365Talents and one of the reasons that led us to this acquisition is also their AI-forward technology and thinking. what i would say is one of the things that i loved about 365talents and one of the reasons that led us to this acquisition is also their ai-forward technology and thinking To give you an example, they already have built agents that allow to build the entire job architectures, a job that would have required months with consultants, you know, even as not as long as two years ago, to be done in instance. to give you an example they already have built agents that allow to build the entire job architectures a job that would have required months with consultants you know even as not as long as two years ago to be done in instance Their agentic experience will accelerate our integration between the two platforms. You asked about our roadmap path and, you know, what it means for us. A couple of examples of integrated workflows that we envision. Number one, imagine this, you know, skills architecture that again, like I said, gets built via agents. Okay, this is available now. It's there. Learning programs, execution happens, right? Like within Docebo. As skill gaps are identified and detected as part of the regular workforce planning, skills are constantly assessed, and skills remediation happens in an integrated way with Docebo. Their agentic experience will accelerate our integration between the two platforms. their agentic experience will accelerate our integration between the two platforms You asked about our roadmap path and, you know, what it means for us. you asked about our roadmap path and you know what it means for us A couple of examples of integrated workflows that we envision. a couple of examples of integrated workflows that we envision Number one, imagine this, you know, skills architecture that again, like I said, gets built via agents. number one imagine this you know skills architecture that again like i said gets built via agents Okay, this is available now. okay this is available now It's there. it's there Learning programs, execution happens, right? learning programs execution happens right Like within Docebo. like within docebo As skill gaps are identified and detected as part of the regular workforce planning, skills are constantly assessed, and skills remediation happens in an integrated way with Docebo. as skill gaps are identified and detected as part of the regular workforce planning skills are constantly assessed and skills remediation happens in an integrated way with docebo Imagine an agent that is capable of understanding where the workforce stands against certain business goals, and the learning machinery via agents that creates content to continuously produce the material that remediates and empowers that workforce to get better. That is the power of the integration between Docebo and 365. Imagine an agent that is capable of understanding where the workforce stands against certain business goals, and the learning machinery via agents that creates content to continuously produce the material that remediates and empowers that workforce to get better. imagine an agent that is capable of understanding where the workforce stands against certain business goals and the learning machinery via agents that creates content to continuously produce the material that remediates and empowers that workforce to get better That is the power of the integration between Docebo and 365. that is the power of the integration between docebo and 365

Speaker 2: Ryan, just on the second part of your question of the sales motion and the cross-sell. Really, on day one, right after the acquisition, we started cross-training our sales staff. Our acquisition thesis remains that there's gonna be three motions. We're gonna continue to sell 365 on a standalone basis. We're gonna sell back to our existing customer base and net new customers. We're gonna sell a combined Docebo 365Talents suite. We do expect our existing customer base to start attaching on 365 in H2 of this year, while we cross-train our staff in H1. Ryan, just on the second part of your question of the sales motion and the cross-sell. ryan just on the second part of your question of the sales motion and the cross-sell Really, on day one, right after the acquisition, we started cross-training our sales staff. really on day one right after the acquisition we started cross-training our sales staff Our acquisition thesis remains that there's gonna be three motions. our acquisition thesis remains that there's gonna be three motions We're gonna continue to sell 365 on a standalone basis. we're gonna continue to sell 365 on a standalone basis We're gonna sell back to our existing customer base and net new customers. we're gonna sell back to our existing customer base and net new customers We're gonna sell a combined Docebo 365Talents suite. we're gonna sell a combined docebo 365talents suite We do expect our existing customer base to start attaching on 365 in H2 of this year, while we cross-train our staff in H1. we do expect our existing customer base to start attaching on 365 in h2 of this year while we cross-train our staff in h1

Speaker 15: Super helpful color there. Maybe as we think about sort of taking a step back on AI, clearly, you have the product vision and roadmap out there. Obviously in the markets over the last, you know, several months, there's been sort of obviously plenty of fears and concerns about sort of what AI can do in terms of disruption for broader enterprise software. I'm curious if you're seeing any signs of, let's call it, market fears and reactions actually in the field. What are customers saying about AI, and sort of their internal initiatives, and how is that sort of affecting the budgetary environment as you look ahead into 2026 here? Super helpful color there. super helpful color there Maybe as we think about sort of taking a step back on AI, clearly, you have the product vision and roadmap out there. maybe as we think about sort of taking a step back on ai clearly you have the product vision and roadmap out there Obviously in the markets over the last, you know, several months, there's been sort of obviously plenty of fears and concerns about sort of what AI can do in terms of disruption for broader enterprise software. obviously in the markets over the last you know several months there's been sort of obviously plenty of fears and concerns about sort of what ai can do in terms of disruption for broader enterprise software I'm curious if you're seeing any signs of, let's call it, market fears and reactions actually in the field. i'm curious if you're seeing any signs of let's call it market fears and reactions actually in the field What are customers saying about AI, and sort of their internal initiatives, and how is that sort of affecting the budgetary environment as you look ahead into 2026 here? what are customers saying about ai and sort of their internal initiatives and how is that sort of affecting the budgetary environment as you look ahead into 2026 here

Speaker 1: The demand environment has been very strong. The field is constantly, you know, helping us better qualify how our customers in the L&D, you know, in the learning and management world, think about AI within their organization. There's no doubt. Look, we do live in a transformation phase. In terms of the sensibility of our solution. Look, I've done this for now over 20 years, and I would say that there are a few things that I am absolutely clear and sure about. The number one thing that I'm sure about is that what we have built at Docebo now, combined with 365 and the evolution of what we're doing, is incredibly hard to build and replicate. The demand environment has been very strong. the demand environment has been very strong The field is constantly, you know, helping us better qualify how our customers in the L&D, you know, in the learning and management world, think about AI within their organization. the field is constantly you know helping us better qualify how our customers in the l&d you know in the learning and management world think about ai within their organization There's no doubt. there's no doubt Look, we do live in a transformation phase. look we do live in a transformation phase In terms of the sensibility of our solution. in terms of the sensibility of our solution Look, I've done this for now over 20 years, and I would say that there are a few things that I am absolutely clear and sure about. look i've done this for now over 20 years and i would say that there are a few things that i am absolutely clear and sure about The number one thing that I'm sure about is that what we have built at Docebo now, combined with 365 and the evolution of what we're doing, is incredibly hard to build and replicate. the number one thing that i'm sure about is that what we have built at docebo now combined with 365 and the evolution of what we're doing is incredibly hard to build and replicate You just don't Cloud Code this stuff overnight. That is just pure marketing speak for that type of concept. And I will add to that, you know, I do spend nights in Cloud Code. I stop sleeping because of that. And what I would say is, you know, when you go beyond the surface of your first 15%-20% creation of a productive front end, the enterprise piping requires you to deliver at scale to hundreds of thousands and millions of users. You know, things like unsexy things like database specifics, multi-tenancy, role-based access, permission, all this stuff is what actually powers an enterprise application. You just don't Cloud Code this stuff overnight. you just don't cloud code this stuff overnight That is just pure marketing speak for that type of concept. that is just pure marketing speak for that type of concept And I will add to that, you know, I do spend nights in Cloud Code. and i will add to that you know i do spend nights in cloud code I stop sleeping because of that. i stop sleeping because of that And what I would say is, you know, when you go beyond the surface of your first 15%-20% creation of a productive front end, the enterprise piping requires you to deliver at scale to hundreds of thousands and millions of users. and what i would say is you know when you go beyond the surface of your first 15%-20% creation of a productive front end the enterprise piping requires you to deliver at scale to hundreds of thousands and millions of users You know, things like unsexy things like database specifics, multi-tenancy, role-based access, permission, all this stuff is what actually powers an enterprise application. you know things like unsexy things like database specifics multi-tenancy role-based access permission all this stuff is what actually powers an enterprise application I really like to emphasize that because beyond the surface, there's a lot of hard coding piping that folks don't talk about in LinkedIn. Second, I would say, Ryan, what we're hearing from customers reflects our thought and knowledge of the industries, which is that enterprises effectively are evolutionary and not revolutionary. And particularly in L&D, okay? Change, radical change is slow to come by. Now, we're not standing still. Again, we own the data, we own the compliance data, the skills chart data, and no LLM owns any of that. That data becomes then what? The catalyst for those agents to take action, right? Agents are not magicians, right? An agent without data is like a Ferrari with no fuel. I really like to emphasize that because beyond the surface, there's a lot of hard coding piping that folks don't talk about in LinkedIn. i really like to emphasize that because beyond the surface there's a lot of hard coding piping that folks don't talk about in linkedin Second, I would say, Ryan, what we're hearing from customers reflects our thought and knowledge of the industries, which is that enterprises effectively are evolutionary and not revolutionary. second i would say ryan what we're hearing from customers reflects our thought and knowledge of the industries which is that enterprises effectively are evolutionary and not revolutionary And particularly in L&D, okay? and particularly in l&d okay Change, radical change is slow to come by. change radical change is slow to come by Now, we're not standing still. now we're not standing still Again, we own the data, we own the compliance data, the skills chart data, and no LLM owns any of that. again we own the data we own the compliance data the skills chart data and no llm owns any of that That data becomes then what? that data becomes then what The catalyst for those agents to take action, right? the catalyst for those agents to take action right Agents are not magicians, right? agents are not magicians right An agent without data is like a Ferrari with no fuel. an agent without data is like a ferrari with no fuel What we do is making sure that our data structure and data investments are very strong, and on top of that, we build the agentic layer so that now we have the data mode, the agentic mode, and the combination of the two with our enterprise experience becomes the just proof that we're gonna be winners in this market. What we do is making sure that our data structure and data investments are very strong, and on top of that, we build the agentic layer so that now we have the data mode, the agentic mode, and the combination of the two with our enterprise experience becomes the just proof that we're gonna be winners in this market. what we do is making sure that our data structure and data investments are very strong and on top of that we build the agentic layer so that now we have the data mode the agentic mode and the combination of the two with our enterprise experience becomes the just proof that we're gonna be winners in this market

Speaker 15: Really helpful color. Thanks again. Really helpful color. really helpful color Thanks again. thanks again

Speaker 12: Our next question. Our next question. our next question

Speaker 1: Thank you. Thank you. thank you

Speaker 12: comes from George Sutton from Craig-Hallum. Please go ahead. Your line is open. comes from George Sutton from Craig-Hallum. comes from george sutton from craig-hallum Please go ahead. please go ahead Your line is open. your line is open

Speaker 5: Thank you. Alessio, I wanted to talk about your DNA. Growing 9% in Q4 and guiding for 10%-11%, my sense is the DNA of this company is built very differently for much more significant growth. I wondered if you could just discuss that, if anything has changed there. I wanted to kind of pair that with your substantial issuer bid and your desire to buy a lot of stock down at these levels. Thank you. thank you Alessio, I wanted to talk about your DNA. alessio i wanted to talk about your dna Growing 9% in Q4 and guiding for 10%-11%, my sense is the DNA of this company is built very differently for much more significant growth. growing 9% in q4 and guiding for 10%-11% my sense is the dna of this company is built very differently for much more significant growth I wondered if you could just discuss that, if anything has changed there. i wondered if you could just discuss that if anything has changed there I wanted to kind of pair that with your substantial issuer bid and your desire to buy a lot of stock down at these levels. i wanted to kind of pair that with your substantial issuer bid and your desire to buy a lot of stock down at these levels

Speaker 1: Wonderful. Love the DNA question. I think your intuition is right in the sense that over the years, we have continued to operate the company with a few drivers that, you know, you look at those distinctly, then they make up for what you're seeing reflected in the data. What are those drivers? Number one, staying ahead of the curve in the market in terms of technology advance. That will fuel growth as a result. The investments in AI that we've made, not just now, but over the past few years, are aimed at that, okay? This is not a story of the roll-up. This is not a story of building a legacy business. It's a story of continued evolution. Second, disciplined execution. Wonderful. wonderful Love the DNA question. love the dna question I think your intuition is right in the sense that over the years, we have continued to operate the company with a few drivers that, you know, you look at those distinctly, then they make up for what you're seeing reflected in the data. i think your intuition is right in the sense that over the years we have continued to operate the company with a few drivers that you know you look at those distinctly then they make up for what you're seeing reflected in the data What are those drivers? what are those drivers Number one, staying ahead of the curve in the market in terms of technology advance. number one staying ahead of the curve in the market in terms of technology advance That will fuel growth as a result. that will fuel growth as a result The investments in AI that we've made, not just now, but over the past few years, are aimed at that, okay? the investments in ai that we've made not just now but over the past few years are aimed at that okay This is not a story of the roll-up. this is not a story of the roll-up This is not a story of building a legacy business. this is not a story of building a legacy business It's a story of continued evolution. it's a story of continued evolution Second, disciplined execution. second disciplined execution Innovating and building great products and being on the forefront of AI, in our point of view, should not be inconsistent with great financial discipline and focus on profitability. We believe that is something that we've gotten good, very good, I would say, at, and we can be even better at. I do love this nature of a business that has the technology and the fuel to accelerate growth moving forward, while having a rather strong profitability profile. That's where I would end. Brandon? Innovating and building great products and being on the forefront of AI, in our point of view, should not be inconsistent with great financial discipline and focus on profitability. innovating and building great products and being on the forefront of ai in our point of view should not be inconsistent with great financial discipline and focus on profitability We believe that is something that we've gotten good, very good, I would say, at, and we can be even better at. we believe that is something that we've gotten good very good i would say at and we can be even better at I do love this nature of a business that has the technology and the fuel to accelerate growth moving forward, while having a rather strong profitability profile. i do love this nature of a business that has the technology and the fuel to accelerate growth moving forward while having a rather strong profitability profile That's where I would end. that's where i would end Brandon? brandon

Speaker 2: For 2026, if we think about how do we re-accelerate, how do we beat our guide, you know, we really look at our business previously in three ways and now four ways. You know, firstly, mid-markets. Mid-market had a really strong 2025. We called it out for three quarters in a row. We expect that performance to continue, but that's not a real lever to re-accelerate growth. EMEA, again, had two strong quarters in a row. We do expect that continue. Enterprise, this is the real lever for us to re-accelerate and beat our guide. You know, to be completely transparent, we were not happy with our performance in 2025. Some of it was macro, some of it was performance, and our guide does assume that we performed similarly in 2026 as 2025. For 2026, if we think about how do we re-accelerate, how do we beat our guide, you know, we really look at our business previously in three ways and now four ways. for 2026 if we think about how do we re-accelerate how do we beat our guide you know we really look at our business previously in three ways and now four ways You know, firstly, mid-markets. you know firstly mid-markets Mid-market had a really strong 2025. mid-market had a really strong 2025 We called it out for three quarters in a row. we called it out for three quarters in a row We expect that performance to continue, but that's not a real lever to re-accelerate growth. we expect that performance to continue but that's not a real lever to re-accelerate growth EMEA, again, had two strong quarters in a row. emea again had two strong quarters in a row We do expect that continue. we do expect that continue Enterprise, this is the real lever for us to re-accelerate and beat our guide. enterprise this is the real lever for us to re-accelerate and beat our guide You know, to be completely transparent, we were not happy with our performance in 2025. you know to be completely transparent we were not happy with our performance in 2025 Some of it was macro, some of it was performance, and our guide does assume that we performed similarly in 2026 as 2025. some of it was macro some of it was performance and our guide does assume that we performed similarly in 2026 as 2025 We are seeing early signs that that business is turning. The demand environment is there, execution is getting better, really Q1, it's time for us to just execute. We have the demand, we have the pipe, now it comes down to execution. The last one, or sorry, the last two is government. We're still in the early innings of government. You know, if I could use maybe just a hockey reference, the national anthem hasn't even finished singing. From partnerships to pipeline to RFPs, we're extremely early in this motion. We just became FedRAMP compliant at the end of May. We're seeing pipeline exceed expectations, we have the pipeline to win some large whale deals in Q3. We are seeing early signs that that business is turning. we are seeing early signs that that business is turning The demand environment is there, execution is getting better, really Q1, it's time for us to just execute. the demand environment is there execution is getting better really q1 it's time for us to just execute We have the demand, we have the pipe, now it comes down to execution. we have the demand we have the pipe now it comes down to execution The last one, or sorry, the last two is government. the last one or sorry the last two is government We're still in the early innings of government. we're still in the early innings of government You know, if I could use maybe just a hockey reference, the national anthem hasn't even finished singing. you know if i could use maybe just a hockey reference the national anthem hasn't even finished singing From partnerships to pipeline to RFPs, we're extremely early in this motion. from partnerships to pipeline to rfps we're extremely early in this motion We just became FedRAMP compliant at the end of May. we just became fedramp compliant at the end of may We're seeing pipeline exceed expectations, we have the pipeline to win some large whale deals in Q3. we're seeing pipeline exceed expectations we have the pipeline to win some large whale deals in q3 When you think about how ARR converts to revenue, you know, our baseline assumption is that ARR comes in September 30th, and we really have three months of revenue. Not a significant revenue acceleration for 2026, more 2027. 365Talents, you know, I'd say we already have a fairly aggressive growth targets embedded within the guide. Really, going back, enterprise is the main lever to beat our guide. From an SIB perspective, you know, if you really just take a step back, SIB is designed with all shareholders in mind. It provides every shareholder an equal opportunity to participate. We filed our circular in late January, early February. Our view is clear, and it remains unchanged today. We believe the trading price of our shares does not reflect the underlying value of our business and our future prospects. When you think about how ARR converts to revenue, you know, our baseline assumption is that ARR comes in September 30th, and we really have three months of revenue. when you think about how arr converts to revenue you know our baseline assumption is that arr comes in september 30th and we really have three months of revenue Not a significant revenue acceleration for 2026, more 2027. 365Talents, you know, I'd say we already have a fairly aggressive growth targets embedded within the guide. not a significant revenue acceleration for 2026 more 2027 365talents you know i'd say we already have a fairly aggressive growth targets embedded within the guide Really, going back, enterprise is the main lever to beat our guide. really going back enterprise is the main lever to beat our guide From an SIB perspective, you know, if you really just take a step back, SIB is designed with all shareholders in mind. from an sib perspective you know if you really just take a step back sib is designed with all shareholders in mind It provides every shareholder an equal opportunity to participate. it provides every shareholder an equal opportunity to participate We filed our circular in late January, early February. we filed our circular in late january early february Our view is clear, and it remains unchanged today. our view is clear and it remains unchanged today We believe the trading price of our shares does not reflect the underlying value of our business and our future prospects. we believe the trading price of our shares does not reflect the underlying value of our business and our future prospects From a mechanics perspective, the SIB is the most efficient path to meaningfully buy back shares. Under NCIB, due to our public floats and just the amount of shares traded daily, we're actually quite limited. To take out 3.6 million shares, it would take over two years under SIB. Lastly, I'll just note that even after the SIB, even after the acquisition, our net leverage remains low, and we still have flexibility to allocate capital. From a mechanics perspective, the SIB is the most efficient path to meaningfully buy back shares. from a mechanics perspective the sib is the most efficient path to meaningfully buy back shares Under NCIB, due to our public floats and just the amount of shares traded daily, we're actually quite limited. under ncib due to our public floats and just the amount of shares traded daily we're actually quite limited To take out 3.6 million shares, it would take over two years under SIB. to take out 3.6 million shares it would take over two years under sib Lastly, I'll just note that even after the SIB, even after the acquisition, our net leverage remains low, and we still have flexibility to allocate capital. lastly i'll just note that even after the sib even after the acquisition our net leverage remains low and we still have flexibility to allocate capital

Speaker 5: Great. Just one quick, more narrow question on your QSR win. Understanding that organization is doing this through franchises, I'm curious if your deployment will be mandated by the entire system, or is this a hunting license situation? Great. great Just one quick, more narrow question on your QSR win. just one quick more narrow question on your qsr win Understanding that organization is doing this through franchises, I'm curious if your deployment will be mandated by the entire system, or is this a hunting license situation? understanding that organization is doing this through franchises i'm curious if your deployment will be mandated by the entire system or is this a hunting license situation

Speaker 2: Sorry, can you repeat that last point? Sorry, can you repeat that last point? sorry can you repeat that last point

Speaker 5: Is this something mandated by the overall company, so all the franchisees take it, or is this a hunting license where you need to go sell individually to the franchisees? Is this something mandated by the overall company, so all the franchisees take it, or is this a hunting license where you need to go sell individually to the franchisees? is this something mandated by the overall company so all the franchisees take it or is this a hunting license where you need to go sell individually to the franchisees

Speaker 2: Nope, it is company-wide, corporate, and all franchisees. Nope, it is company-wide, corporate, and all franchisees. nope it is company-wide corporate and all franchisees

Speaker 5: Super. Thank you. Super. super Thank you. thank you

Speaker 1: You know the sandwich name, but we can't say it. You know the sandwich name, but we can't say it. you know the sandwich name but we can't say it

Speaker 5: I do know the name. I do know the name. i do know the name

Speaker 12: Our next question comes from Josh Baer from Morgan Stanley. Please go ahead, your line is open. Our next question comes from Josh Baer from Morgan Stanley. our next question comes from josh baer from morgan stanley Please go ahead, your line is open. please go ahead your line is open

Speaker 7: Great, thanks for the question. Brandon, you just mentioned, you know, not being fully pleased with 2025, but some of the same sort of assumptions around, you know, the, that execution are embedded in 2026. Could you unpack that a little bit more? Like, what exactly are you assuming in the 26 guidance with regard to converting that pipeline, you know, contribution from new customers, expansion from existing customers? If you could just kind of talk about the assumptions embedded in that guidance a little bit more. Great, thanks for the question. great thanks for the question Brandon, you just mentioned, you know, not being fully pleased with 2025, but some of the same sort of assumptions around, you know, the, that execution are embedded in 2026. brandon you just mentioned you know not being fully pleased with 2025 but some of the same sort of assumptions around you know the that execution are embedded in 2026 Could you unpack that a little bit more? could you unpack that a little bit more Like, what exactly are you assuming in the 26 guidance with regard to converting that pipeline, you know, contribution from new customers, expansion from existing customers? like what exactly are you assuming in the 26 guidance with regard to converting that pipeline you know contribution from new customers expansion from existing customers If you could just kind of talk about the assumptions embedded in that guidance a little bit more. if you could just kind of talk about the assumptions embedded in that guidance a little bit more

Speaker 1: I think Celeste speaking. I think, you know, our fundamental point of view is grounded on the observation of the work that our teams have been doing over the past few quarters, and the, and the leading indicators that are resulting out of that work. If you recall, a couple quarters ago, we instituted, you know, effectively a new leadership team in the go-to-market team. After Kyle Lacy joining the CMO, subsequently, a new CRO was appointed in Mark Kosoglow, and we have effectively reshaped our GTM motion as a result of these leaders coming in. You know, this new GTM brought improvements across the board. I think Celeste speaking. i think celeste speaking I think, you know, our fundamental point of view is grounded on the observation of the work that our teams have been doing over the past few quarters, and the, and the leading indicators that are resulting out of that work. i think you know our fundamental point of view is grounded on the observation of the work that our teams have been doing over the past few quarters and the and the leading indicators that are resulting out of that work If you recall, a couple quarters ago, we instituted, you know, effectively a new leadership team in the go-to-market team. if you recall a couple quarters ago we instituted you know effectively a new leadership team in the go-to-market team After Kyle Lacy joining the CMO, subsequently, a new CRO was appointed in Mark Kosoglow, and we have effectively reshaped our GTM motion as a result of these leaders coming in. after kyle lacy joining the cmo subsequently a new cro was appointed in mark kosoglow and we have effectively reshaped our gtm motion as a result of these leaders coming in You know, this new GTM brought improvements across the board. you know this new gtm brought improvements across the board I would say that, you know, we have focused on a number of different areas where we thought we could do better: process reengineering, people optimization, and notably, a deliberate strategy to focus on qualitative demand as opposed to quantitative demand. What that means is we have taken steps to really be deliberate in the leads that we believe are most suited to win, that belong to our category, and have implemented processes to pass on to certified partners, very small business leads, that are not necessarily any more in line with the strategy of the Docebo. We are a mid-enterprise to strategic enterprise company, and we need to focus there. That exercise is paying off. We're seeing that in the leading indicators about enterprise pipeline. We're seeing that in execution in the field. I would say that, you know, we have focused on a number of different areas where we thought we could do better: process reengineering, people optimization, and notably, a deliberate strategy to focus on qualitative demand as opposed to quantitative demand. i would say that you know we have focused on a number of different areas where we thought we could do better process reengineering people optimization and notably a deliberate strategy to focus on qualitative demand as opposed to quantitative demand What that means is we have taken steps to really be deliberate in the leads that we believe are most suited to win, that belong to our category, and have implemented processes to pass on to certified partners, very small business leads, that are not necessarily any more in line with the strategy of the Docebo. what that means is we have taken steps to really be deliberate in the leads that we believe are most suited to win that belong to our category and have implemented processes to pass on to certified partners very small business leads that are not necessarily any more in line with the strategy of the docebo We are a mid-enterprise to strategic enterprise company, and we need to focus there. we are a mid-enterprise to strategic enterprise company and we need to focus there That exercise is paying off. that exercise is paying off We're seeing that in the leading indicators about enterprise pipeline. we're seeing that in the leading indicators about enterprise pipeline We're seeing that in execution in the field. we're seeing that in execution in the field The comments from Brandon are the result of that observation. We have data and that informs our belief that the enterprise segment and government will be catalysts for our reacceleration. The comments from Brandon are the result of that observation. the comments from brandon are the result of that observation We have data and that informs our belief that the enterprise segment and government will be catalysts for our reacceleration. we have data and that informs our belief that the enterprise segment and government will be catalysts for our reacceleration

Speaker 7: Thank you, Alessio. Just to follow up there with some of the, you know, refocused go-to-market, like, just looking at the ACV for new customers, which was down, is there anything to read into that? Like, is that a result of the reshaped go-to-market or, you know, obviously just one quarter of that new customer metric can move around a lot. How should we think about that? Thank you, Alessio. thank you alessio Just to follow up there with some of the, you know, refocused go-to-market, like, just looking at the ACV for new customers, which was down, is there anything to read into that? just to follow up there with some of the you know refocused go-to-market like just looking at the acv for new customers which was down is there anything to read into that Like, is that a result of the reshaped go-to-market or, you know, obviously just one quarter of that new customer metric can move around a lot. like is that a result of the reshaped go-to-market or you know obviously just one quarter of that new customer metric can move around a lot How should we think about that? how should we think about that

Speaker 2: Yeah, it's really our mid-market team is really firing on all cylinders. When you look at that metric, it's heavily skewed by the number of customers you sign during a given quarter. You know, enterprise wins tend to be 1 unit at a high value. Mid-market tends to be many units at a lower value. Just the mix overall, you know, tends to skew it from quarter-to-quarter. Generally, you know, we were actually quite pleased with all our segments in Q4. You know, as mentioned in our prepared remarks, it was the strongest gross bookings we've had since Q4 of 2021. The business performed, you know, as everyone knows, we had some structural headwinds that masked the top line, ARR growth, with the wind down of Dayforce and the loss of AWS coming in effect in Q4. Yeah, it's really our mid-market team is really firing on all cylinders. yeah it's really our mid-market team is really firing on all cylinders When you look at that metric, it's heavily skewed by the number of customers you sign during a given quarter. when you look at that metric it's heavily skewed by the number of customers you sign during a given quarter You know, enterprise wins tend to be 1 unit at a high value. you know enterprise wins tend to be 1 unit at a high value Mid-market tends to be many units at a lower value. mid-market tends to be many units at a lower value Just the mix overall, you know, tends to skew it from quarter- to- quarter. just the mix overall you know tends to skew it from quarter- to- quarter Generally, you know, we were actually quite pleased with all our segments in Q4. generally you know we were actually quite pleased with all our segments in q4 You know, as mentioned in our prepared remarks, it was the strongest gross bookings we've had since Q4 of 2021. you know as mentioned in our prepared remarks it was the strongest gross bookings we've had since q4 of 2021 The business performed, you know, as everyone knows, we had some structural headwinds that masked the top line, ARR growth, with the wind down of Dayforce and the loss of AWS coming in effect in Q4. the business performed you know as everyone knows we had some structural headwinds that masked the top line arr growth with the wind down of dayforce and the loss of aws coming in effect in q4 Josh, it's just really a matter of mid-market, performing really well in Q4. Josh, it's just really a matter of mid-market, performing really well in Q4. josh it's just really a matter of mid-market performing really well in q4

Speaker 7: Okay. Very helpful. Thank you. Okay. okay Very helpful. very helpful Thank you. thank you

Speaker 12: Our next question comes from Erin Kyle, from CIBC. Please go ahead. Your line is open. Our next question comes from Erin Kyle, from CIBC. our next question comes from erin kyle from cibc Please go ahead. please go ahead Your line is open. your line is open

Speaker 3: Hi, good morning, and thanks for taking the questions. I wanted to ask, and maybe dig into the net dollar retention, for 2025, down year-over-year to 99%. I expect a lot of that was largely due to AWS, so maybe you can just unpack that number a bit for us. Hi, good morning, and thanks for taking the questions. hi good morning and thanks for taking the questions I wanted to ask, and maybe dig into the net dollar retention, for 2025, down year-over-year to 99%. i wanted to ask and maybe dig into the net dollar retention for 2025 down year-over-year to 99% I expect a lot of that was largely due to AWS, so maybe you can just unpack that number a bit for us. i expect a lot of that was largely due to aws so maybe you can just unpack that number a bit for us

Speaker 2: Yeah, you're exactly correct. Excluding AWS, we would actually have been up 1% year-over-year, so we would have been at 101%. There's a lot of good trends within NRR. We saw sequential three quarter improvements in net retention, excluding AWS from Q2 to Q3 to Q4. When we look at 2026, obviously, you know, from a retention perspective, we forecast four quarters out. Again, we're actually seeing strong trends in Q2, Q3, Q4 into 2026 as well. You know, one thing is when we look at Q4, even with a record gross bookings, you know, we've talked about previously how typically our mix of gross bookings is 65% new logo, 35% expansion. In Q4, is 60% new logo, 40% expansion. Yeah, you're exactly correct. yeah you're exactly correct Excluding AWS, we would actually have been up 1% year-over-year, so we would have been at 101%. excluding aws we would actually have been up 1% year-over-year so we would have been at 101% There's a lot of good trends within NRR. there's a lot of good trends within nrr We saw sequential three quarter improvements in net retention, excluding AWS from Q2 to Q3 to Q4. we saw sequential three quarter improvements in net retention excluding aws from q2 to q3 to q4 When we look at 2026, obviously, you know, from a retention perspective, we forecast four quarters out. when we look at 2026 obviously you know from a retention perspective we forecast four quarters out Again, we're actually seeing strong trends in Q2, Q3, Q4 into 2026 as well. again we're actually seeing strong trends in q2 q3 q4 into 2026 as well You know, one thing is when we look at Q4, even with a record gross bookings, you know, we've talked about previously how typically our mix of gross bookings is 65% new logo, 35% expansion. you know one thing is when we look at q4 even with a record gross bookings you know we've talked about previously how typically our mix of gross bookings is 65% new logo 35% expansion In Q4, is 60% new logo, 40% expansion. in q4 is 60% new logo 40% expansion Our expansion delivered in Q4, you know, our ideal mix is 60, 40, or even 45, 55. As we all know, expansion is just much more efficient from a cost perspective. You know, new logos, acquiring new logos is very expensive. We're really focused on the expansion perspective. 365Talents really helps us accelerate that, and, you know, we're focused on improving that NRR in 2026. Our expansion delivered in Q4, you know, our ideal mix is 60, 40, or even 45, 55. our expansion delivered in q4 you know our ideal mix is 60 40 or even 45 55 As we all know, expansion is just much more efficient from a cost perspective. as we all know expansion is just much more efficient from a cost perspective You know, new logos, acquiring new logos is very expensive. you know new logos acquiring new logos is very expensive We're really focused on the expansion perspective. 365Talents really helps us accelerate that, and, you know, we're focused on improving that NRR in 2026. we're really focused on the expansion perspective 365talents really helps us accelerate that and you know we're focused on improving that nrr in 2026

Speaker 3: Thanks, Brandon. That's a lot of helpful color there. maybe one more for you, or Alessio, if you can give us an update on the AI credit pricing model that you talked about last quarter? is consumption pricing something you've been looking at moving towards more broadly, or how should we think about that? Thanks, Brandon. thanks brandon That's a lot of helpful color there. maybe one more for you, or Alessio, if you can give us an update on the AI credit pricing model that you talked about last quarter? is consumption pricing something you've been looking at moving towards more broadly, or how should we think about that? that's a lot of helpful color there maybe one more for you or alessio if you can give us an update on the ai credit pricing model that you talked about last quarter is consumption pricing something you've been looking at moving towards more broadly or how should we think about that

Speaker 1: Hi, Erin. Yes, it's Alessio. One of my favorite topics. Let's go. AI credit pricing, and more broadly speaking, the topic of monetization. look at really hot topic in the industry right now. we have spent, you know, a considerable amount of time lately, thinking through this really deeply. I'm gonna share my thoughts. Include credits, but they need to be taken in the context more broadly of the overall, you know, AI monetization strategy that is becoming a very pervasive narrative these days. First, let me start by saying, head-on, we are testing AI credits at Docebo. we have maybe a month and a half worth of data, so it's early days, and the results of that work have been a mixed bag, frankly. Hi, Erin. hi erin Yes, it's Alessio. yes it's alessio One of my favorite topics. one of my favorite topics Let's go. let's go AI credit pricing, and more broadly speaking, the topic of monetization. look at really hot topic in the industry right now. we have spent, you know, a considerable amount of time lately, thinking through this really deeply. ai credit pricing and more broadly speaking the topic of monetization look at really hot topic in the industry right now we have spent you know a considerable amount of time lately thinking through this really deeply I'm gonna share my thoughts. i'm gonna share my thoughts Include credits, but they need to be taken in the context more broadly of the overall, you know, AI monetization strategy that is becoming a very pervasive narrative these days. include credits but they need to be taken in the context more broadly of the overall you know ai monetization strategy that is becoming a very pervasive narrative these days First, let me start by saying, head-on, we are testing AI credits at Docebo. we have maybe a month and a half worth of data, so it's early days, and the results of that work have been a mixed bag, frankly. first let me start by saying head-on we are testing ai credits at docebo we have maybe a month and a half worth of data so it's early days and the results of that work have been a mixed bag frankly In some instances, customers, particularly technology, first customers, I would say, are receptive to the idea of, and in other instances, and frankly, more, there has been pushback. Pushback that is kind of CFO, CIO-led, resulting from their desire for predictability and discomfort with non, strict controls and forecastability. Okay? That's where we stand with credits. If that's okay with you, though, I'd like to broaden that question to our point of view on the narrative on pricing, because the argument that I'm hearing a lot of people bring it up is, "Hey, in this new AI first era, per seat pricing is the legacy model," right? That's the general sound of it. You know what we did? We went and we dug deep. In some instances, customers, particularly technology, first customers, I would say, are receptive to the idea of, and in other instances, and frankly, more, there has been pushback. in some instances customers particularly technology first customers i would say are receptive to the idea of and in other instances and frankly more there has been pushback Pushback that is kind of CFO, CIO-led, resulting from their desire for predictability and discomfort with non, strict controls and forecastability. pushback that is kind of cfo cio-led resulting from their desire for predictability and discomfort with non strict controls and forecastability Okay? okay That's where we stand with credits. that's where we stand with credits If that's okay with you, though, I'd like to broaden that question to our point of view on the narrative on pricing, because the argument that I'm hearing a lot of people bring it up is, "Hey, in this new AI first era, per seat pricing is the legacy model," right? if that's okay with you though i'd like to broaden that question to our point of view on the narrative on pricing because the argument that i'm hearing a lot of people bring it up is "hey in this new ai first era per seat pricing is the legacy model," right That's the general sound of it. that's the general sound of it You know what we did? you know what we did We went and we dug deep. we went and we dug deep We looked at the number of companies, over 30. We analyzed anything from, yeah, AI native, LLMs, and et cetera, et cetera. What we found out has actually been really interesting. The number 1 pattern has been the majority of the companies, even across AI native companies, are using what we would call a hybrid model, which is what Docebo has today, which is a mix of per seat pricing combined with credit pricing. The second finding was that a lot of AI native companies actually do not have any concept of credit pricing or outcome pricing, and are per seat only. We looked at the number of companies, over 30. we looked at the number of companies over 30 We analyzed anything from, yeah, AI native, LLMs, and et cetera, et cetera. we analyzed anything from yeah ai native llms and et cetera et cetera What we found out has actually been really interesting. what we found out has actually been really interesting The number 1 pattern has been the majority of the companies, even across AI native companies, are using what we would call a hybrid model, which is what Docebo has today, which is a mix of per seat pricing combined with credit pricing. the number 1 pattern has been the majority of the companies even across ai native companies are using what we would call a hybrid model which is what docebo has today which is a mix of per seat pricing combined with credit pricing The second finding was that a lot of AI native companies actually do not have any concept of credit pricing or outcome pricing, and are per seat only. the second finding was that a lot of ai native companies actually do not have any concept of credit pricing or outcome pricing and are per seat only you know, we've been analyzing the why, that's actually really simple, that's because the customers won't buy it, that's because their use case and their industry doesn't lend itself to be adapt to a full outcome or a full credit-based model. I'm really passionate about this topic. We're going to continue exploring new avenues. I do believe there is room for innovation on the pricing side in AI, but I also have learned over the past 20 years that the best pricing model is the one that meets the needs of the company with the business processes of your customers. What we're not gonna do is, on the trend basis that everybody wants credits to be the thing, is to shove a pricing model down customers' throat. you know, we've been analyzing the why, that's actually really simple, that's because the customers won't buy it, that's because their use case and their industry doesn't lend itself to be adapt to a full outcome or a full credit-based model. you know we've been analyzing the why that's actually really simple that's because the customers won't buy it that's because their use case and their industry doesn't lend itself to be adapt to a full outcome or a full credit-based model I'm really passionate about this topic. i'm really passionate about this topic We're going to continue exploring new avenues. we're going to continue exploring new avenues I do believe there is room for innovation on the pricing side in AI, but I also have learned over the past 20 years that the best pricing model is the one that meets the needs of the company with the business processes of your customers. i do believe there is room for innovation on the pricing side in ai but i also have learned over the past 20 years that the best pricing model is the one that meets the needs of the company with the business processes of your customers What we're not gonna do is, on the trend basis that everybody wants credits to be the thing, is to shove a pricing model down customers' throat. what we're not gonna do is on the trend basis that everybody wants credits to be the thing is to shove a pricing model down customers' throat Rather, we'd work with customers to understand how their buying trends are, and we listen to the field, and we do a lot of audience insights in our customers' calls. Great topic, more to come. We'll report back on our findings as we continue to explore credits. Rather, we'd work with customers to understand how their buying trends are, and we listen to the field, and we do a lot of audience insights in our customers' calls. rather we'd work with customers to understand how their buying trends are and we listen to the field and we do a lot of audience insights in our customers' calls Great topic, more to come. great topic more to come We'll report back on our findings as we continue to explore credits. we'll report back on our findings as we continue to explore credits

Speaker 3: Thanks, Alessio. That's a lot of helpful detail there. I will pass the line. Thank you. Thanks, Alessio. thanks alessio That's a lot of helpful detail there. that's a lot of helpful detail there I will pass the line. i will pass the line Thank you. thank you

Speaker 1: Thank you, Erin. Thank you, Erin. thank you erin

Speaker 12: Our next question comes from Robert Young, from Canaccord Genuity. Please go ahead. Your line is open. Our next question comes from Robert Young, from Canaccord Genuity. our next question comes from robert young from canaccord genuity Please go ahead. please go ahead Your line is open. your line is open

Speaker 14: Hi, good morning. First question for me will be on this force reduction that is after the quarter. It seems as though it's optimization in R&D, but I'm trying to get a better idea of what the drivers are there, if that's just duplication after the acquisition of 365Talents, or if it's a more permanent reduction, or are you preparing for a shift towards hiring up in AI? Maybe if you could just talk about what that implies on, you know, the strong EBITDA margins you reported this quarter. Should we expect that to continue to grow higher on the back of this force reduction? Hi, good morning. hi good morning First question for me will be on this force reduction that is after the quarter. first question for me will be on this force reduction that is after the quarter It seems as though it's optimization in R&D, but I'm trying to get a better idea of what the drivers are there, if that's just duplication after the acquisition of 365Talents, or if it's a more permanent reduction, or are you preparing for a shift towards hiring up in AI? it seems as though it's optimization in r&d but i'm trying to get a better idea of what the drivers are there if that's just duplication after the acquisition of 365talents or if it's a more permanent reduction or are you preparing for a shift towards hiring up in ai Maybe if you could just talk about what that implies on, you know, the strong EBITDA margins you reported this quarter. maybe if you could just talk about what that implies on you know the strong ebitda margins you reported this quarter Should we expect that to continue to grow higher on the back of this force reduction? should we expect that to continue to grow higher on the back of this force reduction

Speaker 1: Hi, Rob. Good morning. Hi, Rob. hi rob Good morning. good morning

Speaker 14: Good morning. Good morning. good morning

Speaker 1: Our restructuring was, you know, followed a few specific criteria. First, the most important fundamental is, we continue to use the performance as a strong mechanism to, you know, grade ourselves against our own expectations, against our shareholders' expectations. Our job is to continue to have the best people in seat to deliver against those expectations. That's kind of, I would say, an evergreen, an evergreen rationale that applies here. Second, a more targeted action was taken to accelerate something that is not new. That is, moving our product capabilities closer to our customers. As you very well know, over 70% of our customers are in North America. Very few people in product are in North America. Our restructuring was, you know, followed a few specific criteria. our restructuring was you know followed a few specific criteria First, the most important fundamental is, we continue to use the performance as a strong mechanism to, you know, grade ourselves against our own expectations, against our shareholders' expectations. first the most important fundamental is we continue to use the performance as a strong mechanism to you know grade ourselves against our own expectations against our shareholders' expectations Our job is to continue to have the best people in seat to deliver against those expectations. our job is to continue to have the best people in seat to deliver against those expectations That's kind of, I would say, an evergreen, an evergreen rationale that applies here. that's kind of i would say an evergreen an evergreen rationale that applies here Second, a more targeted action was taken to accelerate something that is not new. second a more targeted action was taken to accelerate something that is not new That is, moving our product capabilities closer to our customers. that is moving our product capabilities closer to our customers As you very well know, over 70% of our customers are in North America. as you very well know over 70% of our customers are in north america Very few people in product are in North America. very few people in product are in north america That distance, that has, you know, accumulated between our customers and our product culture, is one that we believe, needs to be remediated and addressed, and so we've taken steps to address that. We've chosen to, you know, co-locate these teams in hubs like Toronto, and just to be absolutely clear, that doesn't mean that we are exiting our developing Italian presence, that remains foundational to our products. It doesn't mean that there is any action that has got to do as a derivative of the 365 acquisition. We simply want to give our customers the confidence that we have a product team and organization that is also closer to them. As a result of that, we're not pausing anything to rebuild, we're just accelerating. That distance, that has, you know, accumulated between our customers and our product culture, is one that we believe, needs to be remediated and addressed, and so we've taken steps to address that. that distance that has you know accumulated between our customers and our product culture is one that we believe needs to be remediated and addressed and so we've taken steps to address that We've chosen to, you know, co-locate these teams in hubs like Toronto, and just to be absolutely clear, that doesn't mean that we are exiting our developing Italian presence, that remains foundational to our products. we've chosen to you know co-locate these teams in hubs like toronto and just to be absolutely clear that doesn't mean that we are exiting our developing italian presence that remains foundational to our products It doesn't mean that there is any action that has got to do as a derivative of the 365 acquisition. it doesn't mean that there is any action that has got to do as a derivative of the 365 acquisition We simply want to give our customers the confidence that we have a product team and organization that is also closer to them. we simply want to give our customers the confidence that we have a product team and organization that is also closer to them As a result of that, we're not pausing anything to rebuild, we're just accelerating. as a result of that we're not pausing anything to rebuild we're just accelerating We have retained our core architectural leaders to ensure that continuity, this transition will not delay, if nothing, it will accelerate our agenda roadmap. I would say, you know, in general, as we tap into new markets and as we have the ability to hire people in new territories, we're also excited about the opportunity to improve our hiring profile and continue to augment the skills of the people at the ship. I think Brandon Farber wants to add something on the EBITDA question. We have retained our core architectural leaders to ensure that continuity, this transition will not delay, if nothing, it will accelerate our agenda roadmap. we have retained our core architectural leaders to ensure that continuity this transition will not delay if nothing it will accelerate our agenda roadmap I would say, you know, in general, as we tap into new markets and as we have the ability to hire people in new territories, we're also excited about the opportunity to improve our hiring profile and continue to augment the skills of the people at the ship. i would say you know in general as we tap into new markets and as we have the ability to hire people in new territories we're also excited about the opportunity to improve our hiring profile and continue to augment the skills of the people at the ship I think Brandon Farber wants to add something on the EBITDA question. i think brandon farber wants to add something on the ebitda question

Speaker 2: Hey, Robert Young, on the EBITDA side, you know, as Alessio Artuffo mentioned, the main goal of the reduction was not for cost savings perspective. Although we are expanding EBITDA margins, the main reason for that is just discipline throughout the business while we grow it. Hey, Robert Young, on the EBITDA side, you know, as Alessio Artuffo mentioned, the main goal of the reduction was not for cost savings perspective. hey robert young on the ebitda side you know as alessio artuffo mentioned the main goal of the reduction was not for cost savings perspective Although we are expanding EBITDA margins, the main reason for that is just discipline throughout the business while we grow it. although we are expanding ebitda margins the main reason for that is just discipline throughout the business while we grow it When you look at the guide relative to how we performed on EBITDA in 2025, it's about 2% EBITDA leverage year-over-year. You know, when I think about that at a really, really just high level, you know, there's gonna be 1% leverage gained in G&A year-over-year. That's just continued discipline that we've talked about for years within G&A. Then roughly 0.5% of leverage in sales and marketing and R&D, where we continue to just focus on sales efficiencies and, you know, gaining leverage in R&D as we continue to use various tools to allow us to become more efficient. When you look at the guide relative to how we performed on EBITDA in 2025, it's about 2% EBITDA leverage year-over-year. when you look at the guide relative to how we performed on ebitda in 2025 it's about 2% ebitda leverage year-over-year You know, when I think about that at a really, really just high level, you know, there's gonna be 1% leverage gained in G&A year-over-year. you know when i think about that at a really really just high level you know there's gonna be 1% leverage gained in g&a year-over-year That's just continued discipline that we've talked about for years within G&A. that's just continued discipline that we've talked about for years within g&a Then roughly 0.5% of leverage in sales and marketing and R&D, where we continue to just focus on sales efficiencies and, you know, gaining leverage in R&D as we continue to use various tools to allow us to become more efficient. then roughly 0.5% of leverage in sales and marketing and r&d where we continue to just focus on sales efficiencies and you know gaining leverage in r&d as we continue to use various tools to allow us to become more efficient

Speaker 14: Okay, thanks for all that. second question, I think adding on to a previous question around the QSR and the casual dining traction. You've had a lot of traction in that space over the last, you know, 5+ years. Can you just talk about how much opportunity is left and what the competitive dynamic looks within that specific end market? It seems to be driving a lot of new customer growth over the last couple of years. two quick questions. Okay, thanks for all that. second question, I think adding on to a previous question around the QSR and the casual dining traction. okay thanks for all that second question i think adding on to a previous question around the qsr and the casual dining traction You've had a lot of traction in that space over the last, you know, 5+ years. you've had a lot of traction in that space over the last you know 5+ years Can you just talk about how much opportunity is left and what the competitive dynamic looks within that specific end market? can you just talk about how much opportunity is left and what the competitive dynamic looks within that specific end market It seems to be driving a lot of new customer growth over the last couple of years. two quick questions. it seems to be driving a lot of new customer growth over the last couple of years two quick questions

Speaker 1: Small, quick question. Small, quick question. small quick question

Speaker 14: Sure. Sure. sure I was just gonna ask just a small quick question, was, in the gross bookings metric you gave, a 12.5% growth, did that include Salesforce and AWS, or is that just Salesforce? Alessio, I'll let you answer the question starting with that. I was just gonna ask just a small quick question, was, in the gross bookings metric you gave, a 12.5% growth, did that include Salesforce and AWS, or is that just Salesforce? i was just gonna ask just a small quick question was in the gross bookings metric you gave a 12.5% growth did that include salesforce and aws or is that just salesforce Alessio, I'll let you answer the question starting with that. alessio i'll let you answer the question starting with that

Speaker 1: I'll start with the QSR part of the question, and then I'll pass on to Brandon Farber, the gross margin question. Sorry, growth ARR question. You're right. QSR is a relevant market for us, one in which we have continued to win landmark logos. That is really the result of a couple of things. Focus, I would say sales strategy and a better defined targeting of the accounts that have a higher likelihood to convert with Docebo. I'll start with the QSR part of the question, and then I'll pass on to Brandon Farber, the gross margin question. i'll start with the qsr part of the question and then i'll pass on to brandon farber the gross margin question Sorry, growth ARR question. sorry growth arr question You're right. you're right QSR is a relevant market for us, one in which we have continued to win landmark logos. qsr is a relevant market for us one in which we have continued to win landmark logos That is really the result of a couple of things. that is really the result of a couple of things Focus, I would say sales strategy and a better defined targeting of the accounts that have a higher likelihood to convert with Docebo. focus i would say sales strategy and a better defined targeting of the accounts that have a higher likelihood to convert with docebo Two, a deliberate product strategy that addresses some of the peculiar needs that this industry has. Some of those include the way they report on data, others include the way they organize their own personnel across franchises and corporate offices, and that requires rather complex ways of mapping users across the geos, entities, and so on and so forth. By the way, let me just use this example to my reference prior back to the defensibility of a true enterprise-grade system. This stuff is really complex. It's multilayered, and it takes years to build. Back, though, to QSR, we believe the opportunity ahead of us is pretty significant. We have in-roadmap capabilities that further make us even more compelling. Two, a deliberate product strategy that addresses some of the peculiar needs that this industry has. two a deliberate product strategy that addresses some of the peculiar needs that this industry has Some of those include the way they report on data, others include the way they organize their own personnel across franchises and corporate offices, and that requires rather complex ways of mapping users across the geos, entities, and so on and so forth. some of those include the way they report on data others include the way they organize their own personnel across franchises and corporate offices and that requires rather complex ways of mapping users across the geos entities and so on and so forth By the way, let me just use this example to my reference prior back to the defensibility of a true enterprise-grade system. by the way let me just use this example to my reference prior back to the defensibility of a true enterprise-grade system This stuff is really complex. this stuff is really complex It's multilayered, and it takes years to build. it's multilayered and it takes years to build Back, though, to QSR, we believe the opportunity ahead of us is pretty significant. back though to qsr we believe the opportunity ahead of us is pretty significant We have in-roadmap capabilities that further make us even more compelling. we have in-roadmap capabilities that further make us even more compelling The QSR space is a very it's a space that requires also a deep usage of adaptive mobile technology. We are thinking and rethinking our mobile strategy in that regard to have a more frontline workers technology readiness available. As part of that offering, let me finish by saying, there is a module of the Docebo called AI Virtual Coaching. That is at still, I would say, rather early days, that has the potential to become an absolute killer in use cases for front-end workers and QSR-like. We're very excited about it. We're investing in it. We are actually going to put more resources and more effort into it to accelerate its development. So we believe this, the QSR opportunity is a really significant one for us. The QSR space is a very it's a space that requires also a deep usage of adaptive mobile technology. the qsr space is a very it's a space that requires also a deep usage of adaptive mobile technology We are thinking and rethinking our mobile strategy in that regard to have a more frontline workers technology readiness available. we are thinking and rethinking our mobile strategy in that regard to have a more frontline workers technology readiness available As part of that offering, let me finish by saying, there is a module of the Docebo called AI Virtual Coaching. as part of that offering let me finish by saying there is a module of the docebo called ai virtual coaching That is at still, I would say, rather early days, that has the potential to become an absolute killer in use cases for front-end workers and QSR-like. that is at still i would say rather early days that has the potential to become an absolute killer in use cases for front-end workers and qsr-like We're very excited about it. we're very excited about it We're investing in it. we're investing in it We are actually going to put more resources and more effort into it to accelerate its development. we are actually going to put more resources and more effort into it to accelerate its development So we believe this, the QSR opportunity is a really significant one for us. so we believe this the qsr opportunity is a really significant one for us

Speaker 2: Rob, if we think about the top 10 QSRs, we have about four of them as customers. You know, there are still top four largest QSRs that we do not have, so there's still large market opportunity for us to continue to gain. On your question on the gross bookings, the 12.5%, that's actually just our total ARR. It includes growth and churn. That includes Salesforce, sorry, that excludes Salesforce, but it includes AWS. If you're looking for a metric of our growth, excluding both Salesforce and AWS, that was closer to 14.5%. Rob, if we think about the top 10 QSRs, we have about four of them as customers. rob if we think about the top 10 qsrs we have about four of them as customers You know, there are still top four largest QSRs that we do not have, so there's still large market opportunity for us to continue to gain. you know there are still top four largest qsrs that we do not have so there's still large market opportunity for us to continue to gain On your question on the gross bookings, the 12.5%, that's actually just our total ARR. on your question on the gross bookings the 12.5% that's actually just our total arr It includes growth and churn. it includes growth and churn That includes Salesforce, sorry, that excludes Salesforce, but it includes AWS. that includes salesforce sorry that excludes salesforce but it includes aws If you're looking for a metric of our growth, excluding both Salesforce and AWS, that was closer to 14.5%. if you're looking for a metric of our growth excluding both salesforce and aws that was closer to 14.5%

Speaker 14: Thanks a lot. Thanks a lot. thanks a lot

Speaker 12: Our next question comes from Richard Tse from National Bank Capital Markets. Please go ahead. Your line is open. Our next question comes from Richard Tse from National Bank Capital Markets. our next question comes from richard tse from national bank capital markets Please go ahead. please go ahead Your line is open. your line is open

Speaker 13: Yes, thank you. You know, with respect to the environment in general, has kind of this AI narrative impacted your sales cycles at all? you know, is there kind of like a swell building as your prospective customers evaluate, you know, really what they want to do? Because obviously, the environment is changing so quickly. Just kind of want to get your perspective on that. Yes, thank you. yes thank you You know, with respect to the environment in general, has kind of this AI narrative impacted your sales cycles at all? you know, is there kind of like a swell building as your prospective customers evaluate, you know, really what they want to do? you know with respect to the environment in general has kind of this ai narrative impacted your sales cycles at all you know is there kind of like a swell building as your prospective customers evaluate you know really what they want to do Because obviously, the environment is changing so quickly. because obviously the environment is changing so quickly Just kind of want to get your perspective on that. just kind of want to get your perspective on that

Speaker 1: Richard, we really monitor our demand in multiple ways. If the question is, are you seeing a headwind relative to this AI first narrative, the answer is no. As far as our sales cycle, our velocity of execution, one of the metrics that I am keeping an eye on in that area is exactly how long does it take us in different segments to get to deal done from qualification occurred. The recent data is incredibly encouraging. We've shaved off weeks of sales execution, particularly in our mid-market and mid-enterprise space. When you do that, what effectively it means is that you're almost gaining a month of selling action in the year. Richard, we really monitor our demand in multiple ways. richard we really monitor our demand in multiple ways If the question is, are you seeing a headwind relative to this AI first narrative, the answer is no. if the question is are you seeing a headwind relative to this ai first narrative the answer is no As far as our sales cycle, our velocity of execution, one of the metrics that I am keeping an eye on in that area is exactly how long does it take us in different segments to get to deal done from qualification occurred. as far as our sales cycle our velocity of execution one of the metrics that i am keeping an eye on in that area is exactly how long does it take us in different segments to get to deal done from qualification occurred The recent data is incredibly encouraging. the recent data is incredibly encouraging We've shaved off weeks of sales execution, particularly in our mid-market and mid-enterprise space. we've shaved off weeks of sales execution particularly in our mid-market and mid-enterprise space When you do that, what effectively it means is that you're almost gaining a month of selling action in the year. when you do that what effectively it means is that you're almost gaining a month of selling action in the year That has been very significant, and we are taking steps to improve that even further. That has been very significant, and we are taking steps to improve that even further. that has been very significant and we are taking steps to improve that even further

Speaker 13: Okay, thanks. With respect to capital allocation, you know, obviously, with you continuing on the SIB, there's a high degree of conviction. Post that sort of SIB concluding, you know, the stock doesn't sort of move higher, you know, off of the back of that. How are you thinking about capital allocation? Would you consider additional buyback programs, or are you kind of evaluating acquisitions, and ultimately, what's sort of your comfort to leverage ratio here? Okay, thanks. okay thanks With respect to capital allocation, you know, obviously, with you continuing on the SIB, there's a high degree of conviction. with respect to capital allocation you know obviously with you continuing on the sib there's a high degree of conviction Post that sort of SIB concluding, you know, the stock doesn't sort of move higher, you know, off of the back of that. post that sort of sib concluding you know the stock doesn't sort of move higher you know off of the back of that How are you thinking about capital allocation? how are you thinking about capital allocation Would you consider additional buyback programs, or are you kind of evaluating acquisitions, and ultimately, what's sort of your comfort to leverage ratio here? would you consider additional buyback programs or are you kind of evaluating acquisitions and ultimately what's sort of your comfort to leverage ratio here

Speaker 2: That's a great question. On just on the acquisition front, doing an acquisition this size of 365Talents in 2026, it is unlikely. You know, we have a lot of things to focus on for 2026. We want to really focus on execution and re-accelerate Docebo organic, really perform and execute on our acquisition of 365Talents. From a buyback perspective, if our shares continue to trade at depressed valuations, we will continue to buy back shares under the SIB, even after the SIB. From a net leverage ratio, when we think about, you know, net cash to EBITDA, you know, we certainly, you know, I think we get very uncomfortable, above 3, under 3, we are more comfortable. That's a great question. that's a great question On just on the acquisition front, doing an acquisition this size of 365Talents in 2026, it is unlikely. on just on the acquisition front doing an acquisition this size of 365talents in 2026 it is unlikely You know, we have a lot of things to focus on for 2026. you know we have a lot of things to focus on for 2026 We want to really focus on execution and re-accelerate Docebo organic, really perform and execute on our acquisition of 365Talents. we want to really focus on execution and re-accelerate docebo organic really perform and execute on our acquisition of 365talents From a buyback perspective, if our shares continue to trade at depressed valuations, we will continue to buy back shares under the SIB, even after the SIB. from a buyback perspective if our shares continue to trade at depressed valuations we will continue to buy back shares under the sib even after the sib From a net leverage ratio, when we think about, you know, net cash to EBITDA, you know, we certainly, you know, I think we get very uncomfortable, above 3, under 3, we are more comfortable. from a net leverage ratio when we think about you know net cash to ebitda you know we certainly you know i think we get very uncomfortable above 3 under 3 we are more comfortable That's kind of our line in the sand. That's kind of our line in the sand. that's kind of our line in the sand

Speaker 13: Okay, thank you. Okay, thank you. okay thank you

Speaker 12: Our next question comes from Ken Wong from Oppenheimer. Please go ahead. Your line is open. Our next question comes from Ken Wong from Oppenheimer. our next question comes from ken wong from oppenheimer Please go ahead. please go ahead Your line is open. your line is open

Speaker 8: Fantastic. Alessio, I wanted to just touch on 365Talents. You know, this is the largest M&A at the company, yeah, not exactly, you know, a competency or a muscle that you guys have. What's your comfort in your ability to absorb such an acquisition and any appetite for additional M&A beyond this? Fantastic. fantastic Alessio, I wanted to just touch on 365Talents. alessio i wanted to just touch on 365talents You know, this is the largest M&A at the company, yeah, not exactly, you know, a competency or a muscle that you guys have. you know this is the largest m&a at the company yeah not exactly you know a competency or a muscle that you guys have What's your comfort in your ability to absorb such an acquisition and any appetite for additional M&A beyond this? what's your comfort in your ability to absorb such an acquisition and any appetite for additional m&a beyond this

Speaker 1: I would say a number of things on this. The discipline of skills intelligence is actually very adjacent relative to the learning space. There are obvious overlaps between the two, but you're absolutely right in saying that the use cases, and in some instances, the persona buyer can vary. That is why we've taken a deliberate stance of maintaining, for a period of time, the 365Talents entity and brand active as we implement both the integration, from a product capability standpoint, that is priority number one, and in parallel, we integrate the commercial motions. That enablement that is necessary to blend the organizations is undergoing and will take time. I would say a number of things on this. i would say a number of things on this The discipline of skills intelligence is actually very adjacent relative to the learning space. the discipline of skills intelligence is actually very adjacent relative to the learning space There are obvious overlaps between the two, but you're absolutely right in saying that the use cases, and in some instances, the persona buyer can vary. there are obvious overlaps between the two but you're absolutely right in saying that the use cases and in some instances the persona buyer can vary That is why we've taken a deliberate stance of maintaining, for a period of time, the 365Talents entity and brand active as we implement both the integration, from a product capability standpoint, that is priority number one, and in parallel, we integrate the commercial motions. that is why we've taken a deliberate stance of maintaining for a period of time the 365talents entity and brand active as we implement both the integration from a product capability standpoint that is priority number one and in parallel we integrate the commercial motions That enablement that is necessary to blend the organizations is undergoing and will take time. that enablement that is necessary to blend the organizations is undergoing and will take time In the meantime, we have structured our organization at Docebo with resources that are going to be, you know, experts and are gonna live within the 365Talents world to become really the translators of the value of 365Talents in our market. The other thing that I would say about this acquisition is that Brandon briefly mentioned earlier, that I think it's really important, as we, as we have this incredible base of over 3,500 customers active, one of the objectives was also to have an opportunity to differentiate and have another entry point other than the LMS, in these organizations, they may already have an LMS in place. You know, dismantling an LMS set up from a large enterprise, it can be a year's worth of work. In the meantime, we have structured our organization at Docebo with resources that are going to be, you know, experts and are gonna live within the 365Talents world to become really the translators of the value of 365Talents in our market. in the meantime we have structured our organization at docebo with resources that are going to be you know experts and are gonna live within the 365talents world to become really the translators of the value of 365talents in our market The other thing that I would say about this acquisition is that Brandon briefly mentioned earlier, that I think it's really important, as we, as we have this incredible base of over 3,500 customers active, one of the objectives was also to have an opportunity to differentiate and have another entry point other than the LMS, in these organizations, they may already have an LMS in place. the other thing that i would say about this acquisition is that brandon briefly mentioned earlier that i think it's really important as we as we have this incredible base of over 3,500 customers active one of the objectives was also to have an opportunity to differentiate and have another entry point other than the lms in these organizations they may already have an lms in place You know, dismantling an LMS set up from a large enterprise, it can be a year's worth of work. you know dismantling an lms set up from a large enterprise it can be a year's worth of work Our opportunity here with this effectively our first, the true second product, is to knock at the door of organizations and offer a value that integrates with their existing LMS. As we enter that secondary door, we can then consolidate that account under a unified strategy. You can appreciate how the adjacency of the capabilities and the integration strategy from a product and commercial standpoint, lends itself to what will be a, you know, I believe, a very successful second product story that will have an impact on our NRR in the future. Our opportunity here with this effectively our first, the true second product, is to knock at the door of organizations and offer a value that integrates with their existing LMS. our opportunity here with this effectively our first the true second product is to knock at the door of organizations and offer a value that integrates with their existing lms As we enter that secondary door, we can then consolidate that account under a unified strategy. as we enter that secondary door we can then consolidate that account under a unified strategy You can appreciate how the adjacency of the capabilities and the integration strategy from a product and commercial standpoint, lends itself to what will be a, you know, I believe, a very successful second product story that will have an impact on our NRR in the future. you can appreciate how the adjacency of the capabilities and the integration strategy from a product and commercial standpoint lends itself to what will be a you know i believe a very successful second product story that will have an impact on our nrr in the future

Speaker 8: Fantastic. Really appreciate the look into the strategic rationale. Then, Brandon Farber, maybe kind of building on that, as we think about the fiscal 26 guidance, I guess, any change in your philosophy here as you have to think through some of the moving pieces that go along with 365Talents, you know, the ability to integrate, obviously operating kind of two teams in parallel? Like, how should we think about, you know, what prudence was baked in? Fantastic. fantastic Really appreciate the look into the strategic rationale. really appreciate the look into the strategic rationale Then, Brandon Farber, maybe kind of building on that, as we think about the fiscal 26 guidance, I guess, any change in your philosophy here as you have to think through some of the moving pieces that go along with 365Talents, you know, the ability to integrate, obviously operating kind of two teams in parallel? then brandon farber maybe kind of building on that as we think about the fiscal 26 guidance i guess any change in your philosophy here as you have to think through some of the moving pieces that go along with 365talents you know the ability to integrate obviously operating kind of two teams in parallel Like, how should we think about, you know, what prudence was baked in? like how should we think about you know what prudence was baked in

Speaker 2: From a 365Talents perspective, I would say we didn't take a conservative approach. We had a very tight business case. We're really factoring in high growth from that business, we are expecting to execute on that. You know, when we think about the different aspects of revenue, you know, talking about Dayforce, you know, it's going to be down to roughly 3%-4% of our total revenues. You know, we publicly disclosed that we'll generate roughly $9 million pro rata from 365Talents. You know, we continue to put no deals greater than $1 million ARR within our guide. We do have a number of those in our pipeline, it has been over 12 months since we've closed one, we feel like the prudent aspect is to exclude that from our guide. From a 365Talents perspective, I would say we didn't take a conservative approach. from a 365talents perspective i would say we didn't take a conservative approach We had a very tight business case. we had a very tight business case We're really factoring in high growth from that business, we are expecting to execute on that. we're really factoring in high growth from that business we are expecting to execute on that You know, when we think about the different aspects of revenue, you know, talking about Dayforce, you know, it's going to be down to roughly 3%-4% of our total revenues. you know when we think about the different aspects of revenue you know talking about dayforce you know it's going to be down to roughly 3%-4% of our total revenues You know, we publicly disclosed that we'll generate roughly $9 million pro rata from 365Talents. you know we publicly disclosed that we'll generate roughly $9 million pro rata from 365talents You know, we continue to put no deals greater than $1 million ARR within our guide. you know we continue to put no deals greater than $1 million arr within our guide We do have a number of those in our pipeline, it has been over 12 months since we've closed one, we feel like the prudent aspect is to exclude that from our guide. we do have a number of those in our pipeline it has been over 12 months since we've closed one we feel like the prudent aspect is to exclude that from our guide and then, you know, just as I mentioned, government, you know, while it's, it is in our guide, it's only there for three months, just given the seasonality of the Fed spend, really geared towards September 30th. Those are, those are the main aspects that I think of from a revenue perspective. and then, you know, just as I mentioned, government, you know, while it's, it is in our guide, it's only there for three months, just given the seasonality of the Fed spend, really geared towards September 30th. and then you know just as i mentioned government you know while it's it is in our guide it's only there for three months just given the seasonality of the fed spend really geared towards september 30th Those are, those are the main aspects that I think of from a revenue perspective. those are those are the main aspects that i think of from a revenue perspective

Speaker 8: Got it. Just a quick follow-up. Any kind of top line or bottom-line synergies between the two orgs that are factored in? Got it. got it Just a quick follow-up. just a quick follow-up Any kind of top line or bottom-line synergies between the two orgs that are factored in? any kind of top line or bottom-line synergies between the two orgs that are factored in

Speaker 2: Bottom line, no. Top line synergies is really just what we talked about, is going back to the Docebo base and selling 365 to our current customer base. Bottom line, no. bottom line no Top line synergies is really just what we talked about, is going back to the Docebo base and selling 365 to our current customer base. top line synergies is really just what we talked about is going back to the docebo base and selling 365 to our current customer base

Speaker 12: Okay, fantastic. Thanks a lot, guys.Our next question comes from Matt VanVliet Okay, fantastic. okay fantastic Thanks a lot, guys. thanks a lot guys Our next question comes from Matt VanVliet our next question comes from matt vanvliet

Speaker 10: Yeah, good morning. Thanks for taking my question. I guess now that you have sort of the Go-to-Market team reorganized like you wanted, with the addition of the federal opportunity maybe being a little bit more wholesome than it was before, where do you feel like you're at in terms of sales headcount? What's the plan kind of baked into the guide for 26? Then just maybe longer term, how do you think about headcount additions correlating with top-line growth, or can you decouple those a little bit with, you know, using AI tooling and other efficiency mechanisms? Yeah, good morning. yeah good morning Thanks for taking my question. thanks for taking my question I guess now that you have sort of the Go-to-Market team reorganized like you wanted, with the addition of the federal opportunity maybe being a little bit more wholesome than it was before, where do you feel like you're at in terms of sales headcount? i guess now that you have sort of the go-to-market team reorganized like you wanted with the addition of the federal opportunity maybe being a little bit more wholesome than it was before where do you feel like you're at in terms of sales headcount What's the plan kind of baked into the guide for 26? what's the plan kind of baked into the guide for 26 Then just maybe longer term, how do you think about headcount additions correlating with top-line growth, or can you decouple those a little bit with, you know, using AI tooling and other efficiency mechanisms? then just maybe longer term how do you think about headcount additions correlating with top-line growth or can you decouple those a little bit with you know using ai tooling and other efficiency mechanisms

Speaker 2: From a sales headcount perspective, you know, on the government side, we really invested in 2025 to get additional quota carriers in seats. We feel like at the start of 2026, we're well set up from a quota perspective, the focus is to win more business with the same amount of headcount. We're really focused on sales productivity, sales efficiencies, using tools to improve those efficiencies. You know, 2025, you know, I think we ended the year on a good note from a sales efficiency perspective. We started the year fairly inefficient in 2025. We're continuing to focus on it. You know, we really look at our pipeline to indicate when we need to add quota carriers. While we have a budget, we don't stick to it. From a sales headcount perspective, you know, on the government side, we really invested in 2025 to get additional quota carriers in seats. from a sales headcount perspective you know on the government side we really invested in 2025 to get additional quota carriers in seats We feel like at the start of 2026, we're well set up from a quota perspective, the focus is to win more business with the same amount of headcount. we feel like at the start of 2026 we're well set up from a quota perspective the focus is to win more business with the same amount of headcount We're really focused on sales productivity, sales efficiencies, using tools to improve those efficiencies. we're really focused on sales productivity sales efficiencies using tools to improve those efficiencies You know, 2025, you know, I think we ended the year on a good note from a sales efficiency perspective. you know 2025 you know i think we ended the year on a good note from a sales efficiency perspective We started the year fairly inefficient in 2025. we started the year fairly inefficient in 2025 We're continuing to focus on it. we're continuing to focus on it You know, we really look at our pipeline to indicate when we need to add quota carriers. you know we really look at our pipeline to indicate when we need to add quota carriers While we have a budget, we don't stick to it. while we have a budget we don't stick to it We don't hire just to hire, we hire based on pipeline, and we'll continue to look at that on a quarterly basis. We don't hire just to hire, we hire based on pipeline, and we'll continue to look at that on a quarterly basis. we don't hire just to hire we hire based on pipeline and we'll continue to look at that on a quarterly basis

Speaker 10: Very helpful. I guess, just on the other side of the AI question, you know, how much demand or maybe even deals closing are you finding as customers want to have a more complete platform to train their employees on maybe the usage of those LLMs, how to, you know, get value out of them, how to maybe protect the organization's data from not including overly proprietary things and prompts, and things of that nature? Is it driving a fair amount of top-of-funnel demand and potentially even deal closing? Very helpful. very helpful I guess, just on the other side of the AI question, you know, how much demand or maybe even deals closing are you finding as customers want to have a more complete platform to train their employees on maybe the usage of those LLMs, how to, you know, get value out of them, how to maybe protect the organization's data from not including overly proprietary things and prompts, and things of that nature? i guess just on the other side of the ai question you know how much demand or maybe even deals closing are you finding as customers want to have a more complete platform to train their employees on maybe the usage of those llms how to you know get value out of them how to maybe protect the organization's data from not including overly proprietary things and prompts and things of that nature Is it driving a fair amount of top-of-funnel demand and potentially even deal closing? is it driving a fair amount of top-of-funnel demand and potentially even deal closing

Speaker 1: I'd say among the trends in the audience insights that we have, I would say, you know, what I, what I hear you describe more as an AI readiness is one of those trends. I think specific companies in the tech sector are more concerned with advancing their people, AI depth. Conversely, what we're finding is that sectors that are more institutional, like manufacturing, healthcare, and data sensitive, frankly, in an anti-cyclical kind of way, asking us to put in place measures for AI to be deeply controlled, enabled, disabled, toggled off. Those controls capabilities have become an absolute must requirement, and we are seeing evidence of that, unsurprisingly, frankly, also in the government space. I'd say among the trends in the audience insights that we have, I would say, you know, what I, what I hear you describe more as an AI readiness is one of those trends. i'd say among the trends in the audience insights that we have i would say you know what i what i hear you describe more as an ai readiness is one of those trends I think specific companies in the tech sector are more concerned with advancing their people, AI depth. i think specific companies in the tech sector are more concerned with advancing their people ai depth Conversely, what we're finding is that sectors that are more institutional, like manufacturing, healthcare, and data sensitive, frankly, in an anti-cyclical kind of way, asking us to put in place measures for AI to be deeply controlled, enabled, disabled, toggled off. conversely what we're finding is that sectors that are more institutional like manufacturing healthcare and data sensitive frankly in an anti-cyclical kind of way asking us to put in place measures for ai to be deeply controlled enabled disabled toggled off Those controls capabilities have become an absolute must requirement, and we are seeing evidence of that, unsurprisingly, frankly, also in the government space. those controls capabilities have become an absolute must requirement and we are seeing evidence of that unsurprisingly frankly also in the government space I think it's a very interesting phase in which you have, the ones that are on the offense side and want to use our technology to get smarter about AI, and you have the ones that are completely on the defense side and are still somewhat skeptical of the downsides of AI, and ask us for, you know, observability, controls, and compliance. We're playing on both fronts. I think it's a very interesting phase in which you have, the ones that are on the offense side and want to use our technology to get smarter about AI, and you have the ones that are completely on the defense side and are still somewhat skeptical of the downsides of AI, and ask us for, you know, observability, controls, and compliance. i think it's a very interesting phase in which you have the ones that are on the offense side and want to use our technology to get smarter about ai and you have the ones that are completely on the defense side and are still somewhat skeptical of the downsides of ai and ask us for you know observability controls and compliance We're playing on both fronts. we're playing on both fronts

Speaker 10: All right, great. Thank you. All right, great. all right great Thank you. thank you

Speaker 1: Thank you. Thank you. thank you

Speaker 12: Our next question comes from Suthan Sukumar from Stifel. Please go ahead, your line is open. Our next question comes from Suthan Sukumar from Stifel. our next question comes from suthan sukumar from stifel Please go ahead, your line is open. please go ahead your line is open

Speaker 16: Good morning, gents. For my first question, I wanted to touch on the competitive landscape. Aside from Workday by Sana, I'm not sure I'm seeing any major moves in the industry. I'm kind of curious, from your perspective, more broadly, you know, how are you seeing competitors respond to AI, and executing on this opportunity? Good morning, gents. good morning gents For my first question, I wanted to touch on the competitive landscape. for my first question i wanted to touch on the competitive landscape Aside from Workday by Sana, I'm not sure I'm seeing any major moves in the industry. aside from workday by sana i'm not sure i'm seeing any major moves in the industry I'm kind of curious, from your perspective, more broadly, you know, how are you seeing competitors respond to AI, and executing on this opportunity? i'm kind of curious from your perspective more broadly you know how are you seeing competitors respond to ai and executing on this opportunity

Speaker 1: I'd say this. Look, first, I will tell you where I stand philosophically on the topic of competition. While we get educated, I like to say to the team, we are incredibly self-centric and self-focused. I don't want this company to chase the others. I want us to lead the pack, innovate, and be very, very focused on ourselves. That is the philosophy I take on competition. When I get education from the team about what they hear about the competitive landscape, I think your reflections are correct. There is not a high degree of innovation happening. Fortunately for us, companies in our space historically have taken more prudent approaches to R&D. I'd say this. i'd say this Look, first, I will tell you where I stand philosophically on the topic of competition. look first i will tell you where i stand philosophically on the topic of competition While we get educated, I like to say to the team, we are incredibly self-centric and self-focused. while we get educated i like to say to the team we are incredibly self-centric and self-focused I don't want this company to chase the others. i don't want this company to chase the others I want us to lead the pack, innovate, and be very, very focused on ourselves. i want us to lead the pack innovate and be very very focused on ourselves That is the philosophy I take on competition. that is the philosophy i take on competition When I get education from the team about what they hear about the competitive landscape, I think your reflections are correct. when i get education from the team about what they hear about the competitive landscape i think your reflections are correct There is not a high degree of innovation happening. there is not a high degree of innovation happening Fortunately for us, companies in our space historically have taken more prudent approaches to R&D. fortunately for us companies in our space historically have taken more prudent approaches to r&d I would say the biggest trend that we are seeing, that I'm having evidence of, is what I would call AI by marketing. AI by marketing is the art of calling everything agents, even when they're not. What I see is, you know, a bunch of pretty simple copilots, defined as revolutionary agents when they're not. An agent is an agent by definition, it should be studied what that definition is. An agent takes decisions, an agent solves complex business problems, and we understand the difference between a copilot and an agent because we're building both. I would say the market is frothy. There's not a ton of real disrupting value. I'd say Sana, acquired by Workday, was that one start-up that had a edge in that area. I would say the biggest trend that we are seeing, that I'm having evidence of, is what I would call AI by marketing. i would say the biggest trend that we are seeing that i'm having evidence of is what i would call ai by marketing AI by marketing is the art of calling everything agents, even when they're not. ai by marketing is the art of calling everything agents even when they're not What I see is, you know, a bunch of pretty simple copilots, defined as revolutionary agents when they're not. what i see is you know a bunch of pretty simple copilots defined as revolutionary agents when they're not An agent is an agent by definition, it should be studied what that definition is. an agent is an agent by definition it should be studied what that definition is An agent takes decisions, an agent solves complex business problems, and we understand the difference between a copilot and an agent because we're building both. an agent takes decisions an agent solves complex business problems and we understand the difference between a copilot and an agent because we're building both I would say the market is frothy. i would say the market is frothy There's not a ton of real disrupting value. there's not a ton of real disrupting value I'd say Sana, acquired by Workday, was that one start-up that had a edge in that area. i'd say sana acquired by workday was that one start-up that had a edge in that area Certainly, you know, it becomes challenging for a company like that to go at the same speed and pace within a machinery like Workday. I would assume. Again, none of my business. All I know is that when we go in the market and we introduce our AI capabilities, we stand out big time. That's what we're keeping on doing. Certainly, you know, it becomes challenging for a company like that to go at the same speed and pace within a machinery like Workday. certainly you know it becomes challenging for a company like that to go at the same speed and pace within a machinery like workday I would assume. i would assume Again, none of my business. again none of my business All I know is that when we go in the market and we introduce our AI capabilities, we stand out big time. all i know is that when we go in the market and we introduce our ai capabilities we stand out big time That's what we're keeping on doing. that's what we're keeping on doing

Speaker 16: Okay. Okay, great. For my second question, I wanna touch on from more of a bookings and pipeline perspective. Can you speak a little bit about what the how contribution has been trending with respect to your pipeline from your SI partners like Deloitte and Accenture and any color on sort of how deal sizes and deal scope has been evolving when partners like these are involved? Okay. okay Okay, great. okay great For my second question, I wanna touch on from more of a bookings and pipeline perspective. for my second question i wanna touch on from more of a bookings and pipeline perspective Can you speak a little bit about what the how contribution has been trending with respect to your pipeline from your SI partners like Deloitte and Accenture and any color on sort of how deal sizes and deal scope has been evolving when partners like these are involved? can you speak a little bit about what the how contribution has been trending with respect to your pipeline from your si partners like deloitte and accenture and any color on sort of how deal sizes and deal scope has been evolving when partners like these are involved

Speaker 1: Yes. Answer straight to your question, nearly 80% of our enterprise pipeline now has a system integrator attached to it. We work with a number of system integrators, from the Deloittes and Accentures of the world, to smaller, medium-sized system integrators that are either regional or leaders in their respective market. That work that has happened over the years is certainly paying off. Specific to system integrators, things that I can share is that, you know, we recently announced that with Deloitte, we've, for example, completed a process to enable Deloitte plus Docebo to become a product that you can purchase through the Amazon AWS Marketplace. Yes. yes Answer straight to your question, nearly 80% of our enterprise pipeline now has a system integrator attached to it. answer straight to your question nearly 80% of our enterprise pipeline now has a system integrator attached to it We work with a number of system integrators, from the Deloittes and Accentures of the world, to smaller, medium-sized system integrators that are either regional or leaders in their respective market. we work with a number of system integrators from the deloittes and accentures of the world to smaller medium-sized system integrators that are either regional or leaders in their respective market That work that has happened over the years is certainly paying off. that work that has happened over the years is certainly paying off Specific to system integrators, things that I can share is that, you know, we recently announced that with Deloitte, we've, for example, completed a process to enable Deloitte plus Docebo to become a product that you can purchase through the Amazon AWS Marketplace. specific to system integrators things that i can share is that you know we recently announced that with deloitte we've for example completed a process to enable deloitte plus docebo to become a product that you can purchase through the amazon aws marketplace Effectively, that Deloitte customers that want to implement a learning platform can buy Docebo in partnership with Deloitte using their AWS credits, which is a very favorable vehicle of purchasing, especially for large enterprises that have oftentimes, you know, credits to be managed and spent on AWS site. You know, everybody wins because Deloitte wins, AWS wins, and ultimately, Docebo benefits from what is a very accretive type of sale. Additionally, we're working with Deloitte and other system integrators on their own academies. What we're finding is that these system integrators are implementing academies using Docebo, which means they power their own customer academy using Docebo. This is becoming a catalyst for very large organizations that are approaching the system integrators. Effectively, that Deloitte customers that want to implement a learning platform can buy Docebo in partnership with Deloitte using their AWS credits, which is a very favorable vehicle of purchasing, especially for large enterprises that have oftentimes, you know, credits to be managed and spent on AWS site. effectively that deloitte customers that want to implement a learning platform can buy docebo in partnership with deloitte using their aws credits which is a very favorable vehicle of purchasing especially for large enterprises that have oftentimes you know credits to be managed and spent on aws site You know, everybody wins because Deloitte wins, AWS wins, and ultimately, Docebo benefits from what is a very accretive type of sale. you know everybody wins because deloitte wins aws wins and ultimately docebo benefits from what is a very accretive type of sale Additionally, we're working with Deloitte and other system integrators on their own academies. additionally we're working with deloitte and other system integrators on their own academies What we're finding is that these system integrators are implementing academies using Docebo, which means they power their own customer academy using Docebo. what we're finding is that these system integrators are implementing academies using docebo which means they power their own customer academy using docebo This is becoming a catalyst for very large organizations that are approaching the system integrators. this is becoming a catalyst for very large organizations that are approaching the system integrators Notably, you know, it's happening with major airlines, major transportation groups that are going to the system integrators and saying, "Hey, I'd really love to implement your academy." Then when they scope out what they really want, this becomes less of a broad academy play, but more of a direct deal with the system integrator. So it also acts like a lead gen opportunity for us. The work that our team is doing on system integrators is very good, and there is more to be done, and there are more integrators that we're talking to, that we plan to sign over the next few quarters, and so pretty excited about it. Notably, you know, it's happening with major airlines, major transportation groups that are going to the system integrators and saying, "Hey, I'd really love to implement your academy." Then when they scope out what they really want, this becomes less of a broad academy play, but more of a direct deal with the system integrator. notably you know it's happening with major airlines major transportation groups that are going to the system integrators and saying "hey i'd really love to implement your academy." then when they scope out what they really want this becomes less of a broad academy play but more of a direct deal with the system integrator So it also acts like a lead gen opportunity for us. so it also acts like a lead gen opportunity for us The work that our team is doing on system integrators is very good, and there is more to be done, and there are more integrators that we're talking to, that we plan to sign over the next few quarters, and so pretty excited about it. the work that our team is doing on system integrators is very good and there is more to be done and there are more integrators that we're talking to that we plan to sign over the next few quarters and so pretty excited about it

Speaker 16: Okay, great. Thank you for the color. I'll pass the line. Okay, great. okay great Thank you for the color. thank you for the color I'll pass the line. i'll pass the line

Speaker 12: Our next question comes from Gavin Fairweather from ATB Cormark. Please go ahead, your line is open. Our next question comes from Gavin Fairweather from ATB Cormark. our next question comes from gavin fairweather from atb cormark Please go ahead, your line is open. please go ahead your line is open

Speaker 4: Hey, good morning. Thanks for taking my question. Just on 365Talents, I'm sure, you know, you had a base deal or a base understanding about your upsell and bundle deals, you know, when you did that acquisition. I'm curious what market feedback you're getting from clients and prospects, and how that's making you feel about the opportunity vis-a-vis your original expectations. Hey, good morning. hey good morning Thanks for taking my question. thanks for taking my question Just on 365Talents, I'm sure, you know, you had a base deal or a base understanding about your upsell and bundle deals, you know, when you did that acquisition. just on 365talents i'm sure you know you had a base deal or a base understanding about your upsell and bundle deals you know when you did that acquisition I'm curious what market feedback you're getting from clients and prospects, and how that's making you feel about the opportunity vis-a-vis your original expectations. i'm curious what market feedback you're getting from clients and prospects and how that's making you feel about the opportunity vis-a-vis your original expectations

Speaker 1: Gavin, very relatively early days, we're a month plus in, and I can tell you that we had certain phases of amount of opportunities that we would generate of companies that want to look at 365. I recently was on a webinar with Loïc, the CEO of 365, and close to 1,000 people registered for the webinar, a number showed up, and a big percentage of the people after the webinar asked for a demonstration and declared in the webinar that they were looking for a solution or looking to improve their current solution. Gavin, very relatively early days, we're a month plus in, and I can tell you that we had certain phases of amount of opportunities that we would generate of companies that want to look at 365. gavin very relatively early days we're a month plus in and i can tell you that we had certain phases of amount of opportunities that we would generate of companies that want to look at 365 I recently was on a webinar with Loïc, the CEO of 365, and close to 1,000 people registered for the webinar, a number showed up, and a big percentage of the people after the webinar asked for a demonstration and declared in the webinar that they were looking for a solution or looking to improve their current solution. i recently was on a webinar with loïc the ceo of 365 and close to 1,000 people registered for the webinar a number showed up and a big percentage of the people after the webinar asked for a demonstration and declared in the webinar that they were looking for a solution or looking to improve their current solution The pervasive feedback that we're getting across all calls, is that companies do have a skills strategy, but it's fragmented from a platform and system standpoint, meaning they may have a skills module and seeing their HRIS or HCM system, but it's not connected to their learning execution strategy in the way that we plan to do it. When we tell them a story of this automated cycle or across the skills gap, the skills engine, their workforce planning strategy, their career development and internal mobility use cases, with learning attached to it in a kind of seamless way, and we demo that to them, their reaction is incredibly positive. We are a month in. Our integration is still relatively simple, all things considered, but over... The pervasive feedback that we're getting across all calls, is that companies do have a skills strategy, but it's fragmented from a platform and system standpoint, meaning they may have a skills module and seeing their HRIS or HCM system, but it's not connected to their learning execution strategy in the way that we plan to do it. the pervasive feedback that we're getting across all calls is that companies do have a skills strategy but it's fragmented from a platform and system standpoint meaning they may have a skills module and seeing their hris or hcm system but it's not connected to their learning execution strategy in the way that we plan to do it When we tell them a story of this automated cycle or across the skills gap, the skills engine, their workforce planning strategy, their career development and internal mobility use cases, with learning attached to it in a kind of seamless way, and we demo that to them, their reaction is incredibly positive. when we tell them a story of this automated cycle or across the skills gap the skills engine their workforce planning strategy their career development and internal mobility use cases with learning attached to it in a kind of seamless way and we demo that to them their reaction is incredibly positive We are a month in. we are a month in Our integration is still relatively simple, all things considered, but over... our integration is still relatively simple all things considered but over You know, imagine what will happen when we execute on our real vision over the next two to three phases of integration, which will occur within the next 12 months. All of that to say, the leading indicators are incredibly positive. I would also say the other thing that excites me the most is, you know, it's clear we have a enterprise first strategy. Complex organizations get the best out of Docebo, and the numbers that we have in our integration dashboards of leads coming in are very skewed against that threshold of 1,000 employees and above, which we have set for this product. So we're bang on in terms of the pain that is felt from the type of customers that we want to. That's product market fit, and now we just need to execute. You know, imagine what will happen when we execute on our real vision over the next two to three phases of integration, which will occur within the next 12 months. you know imagine what will happen when we execute on our real vision over the next two to three phases of integration which will occur within the next 12 months All of that to say, the leading indicators are incredibly positive. all of that to say the leading indicators are incredibly positive I would also say the other thing that excites me the most is, you know, it's clear we have a enterprise first strategy. i would also say the other thing that excites me the most is you know it's clear we have a enterprise first strategy Complex organizations get the best out of Docebo, and the numbers that we have in our integration dashboards of leads coming in are very skewed against that threshold of 1,000 employees and above, which we have set for this product. complex organizations get the best out of docebo and the numbers that we have in our integration dashboards of leads coming in are very skewed against that threshold of 1,000 employees and above which we have set for this product So we're bang on in terms of the pain that is felt from the type of customers that we want to. so we're bang on in terms of the pain that is felt from the type of customers that we want to That's product market fit, and now we just need to execute. that's product market fit and now we just need to execute

Speaker 4: Thanks so much. I'll pass the line. Thanks so much. thanks so much I'll pass the line. i'll pass the line

Speaker 12: Our next question comes from John Shao from TD Cowen. Please go ahead, your line is open. Our next question comes from John Shao from TD Cowen. our next question comes from john shao from td cowen Please go ahead, your line is open. please go ahead your line is open

Speaker 6: Good morning. Thanks for taking my question. You mentioned Docebo has the data mode, could you maybe break down that data mode to help us understand what data belongs to you versus your customers? Maybe for data owned by your customers, how much liberty do you have to, you know, leverage that as additional resource? Good morning. good morning Thanks for taking my question. thanks for taking my question You mentioned Docebo has the data mode, could you maybe break down that data mode to help us understand what data belongs to you versus your customers? you mentioned docebo has the data mode could you maybe break down that data mode to help us understand what data belongs to you versus your customers Maybe for data owned by your customers, how much liberty do you have to, you know, leverage that as additional resource? maybe for data owned by your customers how much liberty do you have to you know leverage that as additional resource

Speaker 1: Sure. Well, you know, when you think about what the LMS is, it's a complex workflow engine. At the business layer, where you have a lot of functionalities that connect learners to courses. Those courses can be in a variety of ways, right? The general concept, of course, can be anything from a PDF or procedural to a learning program that occurs over the course of three months, to a classroom workshop, to a series of virtual led, instructor, a Zoom-like programs. All of that can be blended, by the way, in creative ways. Sure. sure Well, you know, when you think about what the LMS is, it's a complex workflow engine. well you know when you think about what the lms is it's a complex workflow engine At the business layer, where you have a lot of functionalities that connect learners to courses. at the business layer where you have a lot of functionalities that connect learners to courses Those courses can be in a variety of ways, right? those courses can be in a variety of ways right The general concept, of course, can be anything from a PDF or procedural to a learning program that occurs over the course of three months, to a classroom workshop, to a series of virtual led, instructor, a Zoom-like programs. the general concept of course can be anything from a pdf or procedural to a learning program that occurs over the course of three months to a classroom workshop to a series of virtual led instructor a zoom-like programs All of that can be blended, by the way, in creative ways. all of that can be blended by the way in creative ways When you are an enterprise of any sort, but particularly true in anything that is regulated, that data, that historical data becomes incredibly important, not just from a strategic standpoint of talent development and talent management, but particularly because there are regulators that you have to prove that you've taken certain steps to, you know, improve your people. You have a lot of data that companies sit on that doesn't live elsewhere. Needs exist and needs to be inspectable, auditable, and there needs to be trails that prove what you've done when, and if you were compliant at all times. That is the LMS in its own, I would say most simple compliance-related form. You have data relative to external use cases. When you are an enterprise of any sort, but particularly true in anything that is regulated, that data, that historical data becomes incredibly important, not just from a strategic standpoint of talent development and talent management, but particularly because there are regulators that you have to prove that you've taken certain steps to, you know, improve your people. when you are an enterprise of any sort but particularly true in anything that is regulated that data that historical data becomes incredibly important not just from a strategic standpoint of talent development and talent management but particularly because there are regulators that you have to prove that you've taken certain steps to you know improve your people You have a lot of data that companies sit on that doesn't live elsewhere. you have a lot of data that companies sit on that doesn't live elsewhere Needs exist and needs to be inspectable, auditable, and there needs to be trails that prove what you've done when, and if you were compliant at all times. needs exist and needs to be inspectable auditable and there needs to be trails that prove what you've done when and if you were compliant at all times That is the LMS in its own, I would say most simple compliance-related form. that is the lms in its own i would say most simple compliance-related form You have data relative to external use cases. you have data relative to external use cases You have years of use of the Docebo platform to prove that, you know, by enabling your customers and/or your partners to do the work that they need to do or to buy more by educating them, they indeed deliver better experiences if they're partners, or they buy more, or they stick around longer if they're customers. That data is invaluable to any marketing organization, to any revenue organization. On top of all of this, we're adding the data moat of skills. Now we're talking millions of records, as very large companies, of knowledge that an individual went from a certain skill set to a new skill set over different levels over the course of years. That data, once again, is not available to third-party sources. You have years of use of the Docebo platform to prove that, you know, by enabling your customers and/or your partners to do the work that they need to do or to buy more by educating them, they indeed deliver better experiences if they're partners, or they buy more, or they stick around longer if they're customers. you have years of use of the docebo platform to prove that you know by enabling your customers and/or your partners to do the work that they need to do or to buy more by educating them they indeed deliver better experiences if they're partners or they buy more or they stick around longer if they're customers That data is invaluable to any marketing organization, to any revenue organization. that data is invaluable to any marketing organization to any revenue organization On top of all of this, we're adding the data moat of skills. on top of all of this we're adding the data moat of skills Now we're talking millions of records, as very large companies, of knowledge that an individual went from a certain skill set to a new skill set over different levels over the course of years. now we're talking millions of records as very large companies of knowledge that an individual went from a certain skill set to a new skill set over different levels over the course of years That data, once again, is not available to third-party sources. that data once again is not available to third-party sources The reason why all of that data is incredibly important is that in order to, in order to operate automation and decision-making on top of it in the form of agents are not this ET alien, they are fundamentally workflow executors. They execute workflows on clean, well-organized, structured data sets. Whether the agent lives in your LLM and called via an MCP server, or the agent is a hyper-specialized agent, that Docebo has the knowledge to create and solves very specific problems in the LMS world, it sort of kind of doesn't matter. They can live in a number of different places. The thing is, the what they need in order to provide an outcome is the data that resides in our systems. I hope that helps. The reason why all of that data is incredibly important is that in order to, in order to operate automation and decision-making on top of it in the form of agents are not this ET alien, they are fundamentally workflow executors. the reason why all of that data is incredibly important is that in order to in order to operate automation and decision-making on top of it in the form of agents are not this et alien they are fundamentally workflow executors They execute workflows on clean, well-organized, structured data sets. they execute workflows on clean well-organized structured data sets Whether the agent lives in your LLM and called via an MCP server, or the agent is a hyper-specialized agent, that Docebo has the knowledge to create and solves very specific problems in the LMS world, it sort of kind of doesn't matter. whether the agent lives in your llm and called via an mcp server or the agent is a hyper-specialized agent that docebo has the knowledge to create and solves very specific problems in the lms world it sort of kind of doesn't matter They can live in a number of different places. they can live in a number of different places The thing is, the what they need in order to provide an outcome is the data that resides in our systems. the thing is the what they need in order to provide an outcome is the data that resides in our systems I hope that helps. i hope that helps

Speaker 6: Got it. Thank you. My second question is in terms of the customer spending, I understand ACV is around 6-7K, but how does that number compare to, let's say, your customer's corporate learning budget? Is it around 10% or is a much higher number? Because I'm asking this question because one of the key argument for AI disruption is cost savings. Got it. got it Thank you. thank you My second question is in terms of the customer spending, I understand ACV is around 6-7K, but how does that number compare to, let's say, your customer's corporate learning budget? my second question is in terms of the customer spending i understand acv is around 6-7k but how does that number compare to let's say your customer's corporate learning budget Is it around 10% or is a much higher number? is it around 10% or is a much higher number Because I'm asking this question because one of the key argument for AI disruption is cost savings. because i'm asking this question because one of the key argument for ai disruption is cost savings

Speaker 2: It's a very interesting question. You know, the learning tech stack is much wider than you'd expect. Every company has from HRIS system to LMS to skills, the tech stack is wide. If you actually look at a graph of the number of SaaS companies that are in the L&D or, you know, CHRO tech stack, it is wide, and LMS is not the biggest one. You know, obviously, HRIS is by far in the lead, and it is materially higher than the cost of an LMS. That's just the reality. The average ACV of $67,000, you know, that's really Docebo continuing to move up and up market. You know, we really look at an enterprise ticket now at, you know, roughly $250,000. It's a very interesting question. it's a very interesting question You know, the learning tech stack is much wider than you'd expect. you know the learning tech stack is much wider than you'd expect Every company has from HRIS system to LMS to skills, the tech stack is wide. every company has from hris system to lms to skills the tech stack is wide If you actually look at a graph of the number of SaaS companies that are in the L&D or, you know, CHRO tech stack, it is wide, and LMS is not the biggest one. if you actually look at a graph of the number of saas companies that are in the l&d or you know chro tech stack it is wide and lms is not the biggest one You know, obviously, HRIS is by far in the lead, and it is materially higher than the cost of an LMS. you know obviously hris is by far in the lead and it is materially higher than the cost of an lms That's just the reality. that's just the reality The average ACV of $67,000, you know, that's really Docebo continuing to move up and up market. the average acv of $67,000 you know that's really docebo continuing to move up and up market You know, we really look at an enterprise ticket now at, you know, roughly $250,000. you know we really look at an enterprise ticket now at you know roughly $250,000 While there's competition in the enterprise space, Docebo is typically very competitively priced, maybe on the top end. Compared to our competitors, we're roughly within the range. We continue to see enterprise willingness to spend that money. There's been no pushback on price, on renewals, on new prospects. You know, pricing is holding strong. Companies see the value in an LMS. While there's competition in the enterprise space, Docebo is typically very competitively priced, maybe on the top end. while there's competition in the enterprise space docebo is typically very competitively priced maybe on the top end Compared to our competitors, we're roughly within the range. compared to our competitors we're roughly within the range We continue to see enterprise willingness to spend that money. we continue to see enterprise willingness to spend that money There's been no pushback on price, on renewals, on new prospects. there's been no pushback on price on renewals on new prospects You know, pricing is holding strong. you know pricing is holding strong Companies see the value in an LMS. companies see the value in an lms

Speaker 6: Thank you so much. I'll pass the line. Thank you so much. thank you so much i'll I'll pass the line. i'll pass the line

Speaker 12: Our last question will come from Kevin Krishnaratne from Scotiabank. Please go ahead, your line is open. Our last question will come from Kevin Krishnaratne from Scotiabank. our last question will come from kevin krishnaratne from scotiabank Please go ahead, your line is open. please go ahead your line is open

Speaker 9: Hey there. Thanks for fitting me in. Just one question, maybe two parts for Brandon. Brandon, you talked about in the prepared remarks on reaccelerating organic growth. I think, you know, you did 9.5% subscription growth in Q4. I think, maybe you can help us here on what the organic growth expectation is for Q1 after 365Talents coming down a little bit, but do you expect that to sort of stabilize and grow in Q2? Is there anything that we should be thinking about in Q2, whether that's, you know, anything from Dayforce churn, any kind of renewals coming up in Q2 that we need to consider? I'm just wondering how we think about the sort of organic growth trajectory here. Hey there. hey there Thanks for fitting me in. thanks for fitting me in Just one question, maybe two parts for Brandon. just one question maybe two parts for brandon Brandon, you talked about in the prepared remarks on reaccelerating organic growth. brandon you talked about in the prepared remarks on reaccelerating organic growth I think, you know, you did 9.5% subscription growth in Q4. i think you know you did 9.5% subscription growth in q4 I think, maybe you can help us here on what the organic growth expectation is for Q1 after 365Talents coming down a little bit, but do you expect that to sort of stabilize and grow in Q2? i think maybe you can help us here on what the organic growth expectation is for q1 after 365talents coming down a little bit but do you expect that to sort of stabilize and grow in q2 Is there anything that we should be thinking about in Q2, whether that's, you know, anything from Dayforce churn, any kind of renewals coming up in Q2 that we need to consider? is there anything that we should be thinking about in q2 whether that's you know anything from dayforce churn any kind of renewals coming up in q2 that we need to consider I'm just wondering how we think about the sort of organic growth trajectory here. i'm just wondering how we think about the sort of organic growth trajectory here

Speaker 2: Yeah, the reacceleration organic, we're modeling Q3, Q4 onwards. You know, there's a number of factors. Number one, if you look at, Q1, Q2, our enterprise performance was below expectations. You know, as we lapse some of the quarters that had material impacts due to Dayforce wind down, which was Q3 and Q4, as we lapse AWS, you know, our ability to reaccelerate growth becomes greater and greater. In our own internal models, that acceleration starts in Q3 and continues in Q4. Yeah, the reacceleration organic, we're modeling Q3, Q4 onwards. yeah the reacceleration organic we're modeling q3 q4 onwards You know, there's a number of factors. you know there's a number of factors Number one, if you look at, Q1, Q2, our enterprise performance was below expectations. number one if you look at q1 q2 our enterprise performance was below expectations You know, as we lapse some of the quarters that had material impacts due to Dayforce wind down, which was Q3 and Q4, as we lapse AWS, you know, our ability to reaccelerate growth becomes greater and greater. you know as we lapse some of the quarters that had material impacts due to dayforce wind down which was q3 and q4 as we lapse aws you know our ability to reaccelerate growth becomes greater and greater In our own internal models, that acceleration starts in Q3 and continues in Q4. in our own internal models that acceleration starts in q3 and continues in q4

Speaker 9: Okay, that's super helpful. The last piece you talked about, you know, strength in mid-market, enterprise is gonna be a driver, but can you talk about the SMB or the low end of your base, and how much of that is in your ARR? Is there anything to think of there in terms of, you know, pressures, you know, current, those type of companies that are more on the low end of the customer profile? Okay, that's super helpful. okay that's super helpful The last piece you talked about, you know, strength in mid-market, enterprise is gonna be a driver, but can you talk about the SMB or the low end of your base, and how much of that is in your ARR? the last piece you talked about you know strength in mid-market enterprise is gonna be a driver but can you talk about the smb or the low end of your base and how much of that is in your arr Is there anything to think of there in terms of, you know, pressures, you know, current, those type of companies that are more on the low end of the customer profile? is there anything to think of there in terms of you know pressures you know current those type of companies that are more on the low end of the customer profile

Speaker 2: ARR below 50K, which is, you know, generally the benchmark we consider commercial or SMB, it's down to about 16% of our ARR. At the same time, it's actually interesting to note that our growth retention in that area actually improved year-over-year. You know, we were always kind of, you know, in the low, or I should say, mid-80s, and we actually saw sequential improvement in the commercial segment. It's an area that we've restructured how we manage it from account management perspective. We've put a little bit more focus, a little bit more investment, and we're actually seeing that investment pay off. That's more from an account management perspective. You know, as Alessio mentioned, you know, from a new leads perspective, we have new benchmarks, some go to partners, some to go to us. ARR below 50K, which is, you know, generally the benchmark we consider commercial or SMB, it's down to about 16% of our ARR. arr below 50k which is you know generally the benchmark we consider commercial or smb it's down to about 16% of our arr At the same time, it's actually interesting to note that our growth retention in that area actually improved year-over-year. at the same time it's actually interesting to note that our growth retention in that area actually improved year-over-year You know, we were always kind of, you know, in the low, or I should say, mid-80s, and we actually saw sequential improvement in the commercial segment. you know we were always kind of you know in the low or i should say mid-80s and we actually saw sequential improvement in the commercial segment It's an area that we've restructured how we manage it from account management perspective. it's an area that we've restructured how we manage it from account management perspective We've put a little bit more focus, a little bit more investment, and we're actually seeing that investment pay off. we've put a little bit more focus a little bit more investment and we're actually seeing that investment pay off That's more from an account management perspective. that's more from an account management perspective You know, as Alessio mentioned, you know, from a new leads perspective, we have new benchmarks, some go to partners, some to go to us. you know as alessio mentioned you know from a new leads perspective we have new benchmarks some go to partners some to go to us That existing customer base, below $50K, it's actually a much healthier customer base than it's been in prior years. That existing customer base, below $50K, it's actually a much healthier customer base than it's been in prior years. that existing customer base below $50k it's actually a much healthier customer base than it's been in prior years

Speaker 9: Okay. good to hear. Thanks a lot. Pass the line. Okay. good to hear. okay good to hear Thanks a lot. thanks a lot Pass the line. pass the line

Speaker 12: We have no further questions. I would like to turn the call over to Alessio Artuffo for closing remarks. We have no further questions. we have no further questions I would like to turn the call over to Alessio Artuffo for closing remarks. i would like to turn the call over to alessio artuffo for closing remarks

Speaker 1: Thank you, everyone, for being in the Q4 25 earnings call. We are very excited about the trajectory of Docebo. A milestone ahead of us is called the Docebo Inspire in April in sunny, warm Miami, and we look forward to seeing you there. Thank you. Thank you, everyone, for being in the Q4 25 earnings call. thank you everyone for being in the q4 25 earnings call We are very excited about the trajectory of Docebo. we are very excited about the trajectory of docebo A milestone ahead of us is called the Docebo Inspire in April in sunny, warm Miami, and we look forward to seeing you there. a milestone ahead of us is called the docebo inspire in april in sunny warm miami and we look forward to seeing you there Thank you. thank you

Speaker 12: This concludes today's conference call. Thank you for your participation. You may now disconnect. This concludes today's conference call. this concludes today's conference call Thank you for your participation. thank you for your participation You may now disconnect. you may now disconnect