DCBO

• Strategic Focus on Enterprise Growth: 2026 is framed as the 'year of the enterprise', with two consecutive quarters of accelerating annual recurring revenue (ARR) driven by broad-based strength across new logos, expansions, and international markets. Approximately 80% of the enterprise pipeline now includes partner involvement, typically in hybrid wholesale/implementation models, with long-time partners like Deloitte and new partners like NIIT driving strong results.
• Product & Acquisition Integration: Six months after acquiring 365 Talents, the company has exceeded combined pipeline targets and is ahead of schedule on product integration. 365 Talents has already enabled Docebo to pursue large enterprise deals (including a major global telecom and automotive safety supplier) that it could not have won prior to the acquisition, with standalone 365 product expansion planned for 2027 and beyond. A second recent acquisition of Dive has also contributed to faster core product feature delivery.
• New Vertical Expansion into Healthcare: Docebo is launching a strategic, focused push into the healthcare vertical, building on an existing base of ~$10 million in ARR from healthcare customers and addressing a $3 billion total addressable market (TAM) within the broader $30 billion corporate learning market. Initial investment will be small (following the same incremental playbook used for government) with a targeted 3-person founding team; management expects product and go-to-market optimization to take months (not years) to improve win rates, with a subsequent deeper push into life sciences planned over the next 12-24 months.
• New AI Initiative: The company is building out a forward deployed engineer (FDE) program to support custom AI agent workflows for top customers across verticals including QSR, healthcare, and financial services, ahead of the general availability launch of Agent Hub and Enterprise Knowledge planned for early fall 2026. Custom solutions built by FDEs will eventually be abstracted into broader product offerings for all customers.
• Sales Execution Improvements: New sales leadership that joined in mid-2025 has already delivered improved processes, and Docebo has not experienced industry-wide elongated sales cycles; if anything, sales cycles have shortened in H1 2026. Management notes there remains significant runway for further sales productivity improvement, as expanded product capabilities open up new buyer personas (including CIO and chief people offices).

• Overall revenue guidance was increased by $3.5 million from the prior quarter, with $1.6 million of the increase driven by Q2 performance, and $2.1 million flowing through to the second half of 2026. Of the second half increase, ~$1.2 million is from professional services and ~$900,000 is from subscriptions.
• The upward guidance revision is entirely driven by improved enterprise segment assumptions; the company entered 2026 with conservative flat enterprise growth assumptions, and two consecutive quarters of strong performance and pipeline growth have justified higher estimates for the second half. Mid-market guidance assumptions remain unchanged, and strong government expectations were already baked into prior guidance.
• Full year 2026 adjusted EBITDA guidance was maintained despite new investments in healthcare and the FDE program. Healthcare investment will be a small, incremental

Segment-specific financial results with absolute figures and revenue contribution percentages were not explicitly disclosed in the provided transcript. Management only noted consistent performance in the mid-market segment, strong record results in the government segment in Q2 2026, and accelerating outperformance in the enterprise segment that drove upward guidance revisions.

No explicit discussion of material risks, operational failures, or downside threats to performance was included in the provided call transcript. Management noted that standard risks applicable to forward-looking statements are outlined in the company's public SEC filings.

Q: How does the new forward deployed engineer (FDE) model interact with existing professional services, where does it fall on the income statement, and what is the current buildout status? / A: Docebo is currently hiring a foundational FDE team to build a playbook for scaling, focused on building custom vertical-specific AI agent workflows for top customers ahead of the fall 2026 GA launch of Agent Hub and Enterprise Knowledge. Custom solutions will eventually be abstracted into broader product offerings for all customers. Initially, FDE costs will be categorized as R&D; once the offering scales and is monetized via AI credits or fixed pricing, costs will shift to COGS impacting gross margin. Full monetization details will be shared after the fall launch.

Q: What is the rationale for expanding into healthcare, the timeline for returns on investment, and how does it compare to the earlier government vertical expansion? / A: Healthcare is a large $3 billion TAM where Docebo already has $10 million in ARR but has only operated opportunistically to date. As a more mature company, vertical specialization improves GTM efficiency, deepens customer understanding, and increases win rates, similar to the prior government vertical investment. Unlike government, which required FedRAMP authorization to compete, Docebo is already winning healthcare customers today, so product and team adjustments to increase share of wallet can be completed in months rather than years. Key 12-18 month milestones include standing up the dedicated product and GTM team, building vertical-specific roadmaps, and measuring improved win rates.

Q: What is the current outlook for future M&A and what are Docebo's current capital allocation priorities? / A: Docebo is currently fully focused on integrating the two recent acquisitions (365 Talents and Dive) and extracting value from those investments, so net new M&A is not a near-term priority, though management remains opportunistic. The company views its current stock price as undervalued, so the top capital allocation priority right now is share buybacks through the company's modified Dutch auction repurchase program. Capital allocation priorities will be re-evaluated dynamically as share prices and market conditions change.

Q: What level of prudence is baked into current guidance, and why was EBITDA guidance maintained despite the new healthcare investment? / A: The $3.5 million upward guidance revision was driven solely by stronger-than-expected enterprise performance, as the company had entered 2026 with conservative flat enterprise growth assumptions. Mid-market performance remains consistent with prior forecasts, and strong government expectations (including a solid Q3 FedRAMP season) were already baked in. Healthcare investment in H2 2026 will be small, starting with a 3-person cross-functional team following the incremental playbook used for government. Increased R&D spending for healthcare and other initiatives is offset by lower sequential sales and marketing spend in H2 (after higher event spend in H1) and flat G&A, allowing full year EBITDA guidance to stay unchanged.