Docebo NASDAQ: DCBO is seeing improved enterprise demand after addressing product and go-to-market gaps that weighed on its business in 2025, Brandon Farber of Docebo said during a Needham fireside chat hosted by analyst Ryan MacDonald.
Farber described Docebo as a learning management system provider that has expanded beyond traditional internal corporate training use cases such as onboarding, compliance and talent development. He said the company was built to support multiple audiences, including employees, customers, partners, membership associations and sports organizations.
Farber cited USA Hockey as an example of an external academy customer, saying the organization has about 1,000 employees but trains approximately 600,000 external users, including referees, volunteers and youth hockey participants. He also pointed to Databricks, which he said began using Docebo around 2020 and has grown from about 100,000 customers to more than 1 million. Databricks recently purchased Docebo’s skills product following the company’s acquisition of 365Talents, Farber said.
Enterprise Demand Improves After 2025 Challenges
Discussing recent results, Farber said Docebo’s strong start to 2026 was driven by enterprise performance. He said 2025 had been marked by strength in mid-market customers and EMEA, while enterprise was pressured by tariff-related uncertainty, pauses and delays, execution issues and a product gap around skills.
“Q1 was really just a combination of everything we worked in 2025 came to fruition,” Farber said. He cited strong pipeline, win rates and competitive displacements, adding that enterprise strength drove the company’s guidance increase.
Farber said Docebo is seeing demand signals that suggest enterprise can perform well over the next two to three quarters, though he cautioned that one quarter is only a data point. He also said the company’s Inspire customer conference, which was moved from October to April, helps build pipeline earlier in the fiscal year. Roughly 10% to 20% of Inspire attendees are prospects in a typical year, he said, and prospects attending the event have had win rates “close to 100%.”
Margins Benefit From Subscription Revenue Flow-Through
Farber said Docebo has increased EBITDA margins methodically over the past several years, by about two percentage points annually. He said the company raised full-year revenue guidance by CAD 3.5 million, including about CAD 2 million from its first-quarter beat, and indicated that higher-margin subscription revenue is flowing through to the bottom line.
“By servicing the higher revenue stream, we don’t need to add incrementally,” Farber said, noting that general and administrative functions are staffed for the next level of scale. He also said stronger enterprise quota attainment should support sales efficiencies in the back half of 2026.
Skills and AI Become Key Platform Priorities
Farber said Docebo is working to connect skills intelligence, content creation and learning delivery into a “closed loop.” He said the company’s Docebo Flow product, launched in 2021, was early and required too much technical implementation, but newer tools such as Docebo Companion can embed learning into a user’s workflow through a browser extension.
He said the 365Talents acquisition adds an AI-powered skills intelligence product focused on skills intelligence, internal mobility and talent marketplace use cases. The product is aimed at enterprise customers with 1,000 or more employees, and its customer base is currently concentrated among French enterprises, Farber said.
Using the example of a bank with 100,000 employees, Farber said a skills graph can show workers the skills they have and the skills needed to move into the next role. He said customers have shown that internal mobility tools can reduce external recruiting costs by increasing the number of roles filled internally.
Farber said Docebo’s position as a system of record for learning gives it an advantage over content-only providers. He added that shared customers using both Docebo and 365Talents have shown that skills products can roughly double average contract value in some cases.
Budgets Depend on Demonstrated ROI
Farber said roughly half of Docebo’s revenue comes from learning and development budgets, while the rest comes from other areas such as sales enablement, CIO-led consolidation projects or sports organization leadership. He said customers are willing to spend when Docebo can show clear value, including efficiencies and cost savings.
He also said Docebo is seeing higher RFP volume in enterprise this year. Internal LMS demand remains a “switchers market,” he said, with companies typically reassessing vendors every three to five years. Farber said Docebo is now seeing prospects return to market after losses three years ago, and the company is better positioned to compete.
On AI, Farber said learning and development buyers are generally slower to adopt new technology than CIOs or CTOs. He said AI is not yet the primary buying decision, but prospects increasingly want to know that Docebo has an AI roadmap. Farber said Docebo is investing both in innovation areas such as AgentHub, Enterprise Knowledge and MCP functionality, as well as core platform improvements.
Government, OEM Headwinds and Capital Allocation
Farber said Docebo has been selling into state, local and education markets for nearly two years and recently became FedRAMP compliant at the end of May for federal opportunities. He said the government pipeline has exceeded targets over the past three quarters, with demand split roughly evenly between SLED and federal opportunities. Within federal, he said demand is also roughly split between on-premises-to-cloud transitions and legacy competitor replacements.
Farber also discussed the wind-down of an OEM relationship with Dayforce, which white-labeled Docebo as Dayforce Learning Module. He said Dayforce ARR with Docebo was about $20 million in Q1 2025 and had declined to $8 million in Q1 2026 after Dayforce acquired and re-platformed a small LMS called Ellomi.
Despite that headwind, Farber said core Docebo growth has accelerated, with ARR excluding the OEM wind-down and acquired ARR rising to CAD 13.6 million from CAD 12.5 million in the prior quarter. ARR from customers above $100,000 is growing 31%, he said.
On capital allocation, Farber said Docebo is in execution mode after acquiring 365Talents for roughly CAD 55 million plus CAD 5 million in earn-outs, along with share repurchase activity. He said the company does not intend to become a revenue-acquisition story and remains focused on organic growth, but added that share buybacks remain attractive given the company’s valuation.
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Docebo, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Docebo wasn't on the list.
While Docebo currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead.
This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.
Get This Free Report
