Docebo (NASDAQ:DCBO) used its Q4 2025 earnings call to discuss momentum in bookings, the company’s outlook for 2026, and the early strategy behind its acquisition of 365Talents, with management repeatedly emphasizing enterprise execution, government as a longer-dated growth driver, and the importance of data and “agentic” AI capabilities as competitive differentiators.
365Talents integration: phased approach and cross-sell timing
CEO Alessio Artuffo said the acquisition of 365Talents represents a “milestone” and described the integration as strategically important, in part because it adds what he called an “incremental data mode” that becomes critical in the “agentic era.” Artuffo said Docebo and 365Talents already share customers, have an integration “in production,” and are aligned on an enterprise-focused ideal customer profile.
On commercial execution, Artuffo said Docebo began cross-training its sales staff immediately after the acquisition and reiterated a three-pronged sales thesis:
- Continue selling 365Talents as a standalone product.
- Sell 365Talents into Docebo’s existing customer base and to net new customers.
- Sell a combined Docebo-365Talents suite.
He said the company expects existing customers to begin “attaching on 365” in the second half of the year, after sales cross-training in the first half.
2026 growth levers: enterprise execution, early government opportunity
Analysts pressed management on growth rates, including Q4 growth and guidance implying 10% to 11% growth. Artuffo said Docebo remains focused on staying ahead technologically—highlighting multi-year AI investments—while maintaining financial discipline and profitability.
CFO Brandon Farber framed the 2026 setup as several distinct motions, saying mid-market performed strongly in 2025 and is expected to remain healthy but is “not a real lever to re-accelerate growth.” He said EMEA had “two strong quarters in a row” and is expected to continue, while enterprise is “the real lever” to beat guidance. Farber said the company was “not happy” with enterprise performance in 2025 and that 2026 guidance assumes a similar level of enterprise performance as 2025, but he added that early signs indicate the business is turning and emphasized that execution will be critical in Q1.
Farber also discussed government as a new motion, characterizing it as being in very early stages. He said Docebo became FedRAMP compliant at the end of May and that pipeline is exceeding expectations, with the potential to win large deals in Q3. However, he said ARR that arrives near September 30 would translate into only about three months of revenue, limiting the near-term impact and making it “more 2027” for meaningful acceleration.
Bookings, retention, and segment mix
On Q4 performance, Farber said gross bookings were the strongest since Q4 2021. He noted that the business faced “structural headwinds” that “masked the top line” and ARR growth, citing the wind down of Dayforce and the loss of AWS “coming in effect in Q4.”
Asked about average contract value fluctuations for new customers, Farber attributed the movement largely to mix, noting that enterprise deals can be fewer but larger, while mid-market tends to be many deals at lower values, which can skew quarterly metrics.
On net dollar retention, Farber said 2025 net dollar retention declined year-over-year to 99%, but attributed that to AWS. Excluding AWS, he said net retention would have been 101%, up 1% year-over-year, and he highlighted sequential improvements excluding AWS from Q2 to Q3 to Q4. Farber also said Q4 bookings mix shifted to 60% new logo and 40% expansion versus a typical 65/35 mix, adding that Docebo’s “ideal mix” would be 60/40 or even 45/55 given expansion’s efficiency.
Separately, Farber said customers below $50,000 ARR account for about 16% of total ARR and that retention in that commercial segment improved year-over-year, which he linked to changes in account management focus.
AI strategy: data “moat,” enterprise controls, and pricing tests
Management repeatedly argued that Docebo’s defensibility comes from the complexity of enterprise learning infrastructure and the data embedded in those workflows. Artuffo said customers are not reacting negatively to the broader AI narrative, describing enterprises as “evolutionary and not revolutionary,” particularly in learning and development. He also said the company has reduced sales cycle time by “weeks,” especially in mid-market and mid-enterprise.
In response to a question about competitive behavior, Artuffo said the market is seeing “AI by marketing,” describing competitors labeling basic copilots as agents. He emphasized Docebo’s focus on building both copilots and agents, and said Docebo stands out when it introduces its AI capabilities in the market.
Artuffo also described how customer attitudes vary: some technology companies are focused on AI readiness and upskilling, while more regulated or data-sensitive industries, including government, prioritize controls and the ability to enable or disable AI features. He said controls, observability, and compliance have become “must” requirements.
On monetization, Artuffo said Docebo is testing AI credit pricing and has about “a month and a half” of data, calling results “mixed.” He said some customers are receptive, but there has been more pushback—often led by CFOs and CIOs—who want predictability and strict controls. He added that Docebo studied more than 30 companies and found many use hybrid models combining per-seat and credits, while some AI-native companies are still per-seat only. Artuffo said Docebo will continue exploring pricing innovation but will not force a model customers do not want.
Capital allocation: SIB rationale and leverage comfort levels
Farber said Docebo views its substantial issuer bid (SIB) as the most efficient way to repurchase shares given liquidity limits under an NCIB, adding that buying back 3.6 million shares would take more than two years under an NCIB. He said the company believes its trading price does not reflect underlying value and future prospects, and noted that net leverage remains low even after the SIB and the 365Talents acquisition.
On future capital allocation, Farber said a deal the size of 365Talents is unlikely in 2026 as the company focuses on executing organic growth and integrating the acquisition. He also said Docebo would continue buying back shares if valuations remain depressed. Regarding leverage, he said management becomes “very uncomfortable” above 3x net leverage, and “under 3” is its comfort threshold.
During the Q&A, management also confirmed that a recently discussed QSR customer win is a system-wide deployment covering corporate and all franchisees. Artuffo said the QSR market remains significant for Docebo, highlighting industry-specific complexity in franchise and corporate workforce structures and pointing to continued investment in mobile and an “AI Virtual Coaching” module aimed at frontline worker use cases.
The call concluded with Artuffo reiterating confidence in Docebo’s trajectory and pointing investors to the company’s Docebo Inspire event planned for April in Miami.
About Docebo (NASDAQ:DCBO)
Docebo is a cloud-based learning management system (LMS) provider that offers enterprise organizations a comprehensive platform for employee, customer and partner training. The company’s software is designed to streamline learning and development with features such as AI-powered content recommendations, automated learning paths and social collaboration tools. Docebo’s platform supports multiple languages and integrates with a variety of third-party applications, enabling businesses to deliver training at scale across different departments and regions.
Founded in 2005 and headquartered in Toronto, Canada, Docebo has expanded its footprint to serve customers in North America, Europe, the Middle East and the Asia Pacific region.
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