Docebo (NASDAQ:DCBO) is pursuing new growth initiatives across government, skills management, healthcare and artificial intelligence as it continues its shift toward larger enterprise customers, CFO Brandon Farber said at the Oppenheimer Technology Conference.
Farber described Docebo as a learning management system provider focused on “hybrid” use cases, serving organizations that need to train employees as well as external audiences such as customers, partners, members and associations. He said the company has differentiated itself in a fragmented LMS market by offering a platform designed to support both internal and external learning needs.
Government and Healthcare Expansion
Farber said Docebo entered the third quarter with its largest government pipeline to date and has continued to exceed internal pipeline targets in the segment. Government remains a small portion of the company’s annual recurring revenue base, but he said Docebo’s aspirations for the vertical are above its previously stated target of 10% to 15% subscription CAGR.
However, he cautioned that federal opportunities can be unpredictable and lumpy, with larger contracts potentially closing in the current period or being delayed into 2027.
Healthcare is the company’s next verticalization effort. Farber said healthcare already accounts for about 5% of Docebo’s ARR, including several of its top 20 customers, despite the company not having historically tailored its offering to the industry. He said the company has identified lower win rates in healthcare because its platform has not fully addressed industry-specific compliance and workflow requirements.
Docebo plans to invest approximately 10 to 12 employees across product, marketing and go-to-market functions over the next six to 12 months to develop its healthcare strategy. Farber cited pharmaceutical compliance requirements, including GxP compliance, as an example of the specialized capabilities needed to compete in the sector.
Skills Acquisition Expands Offering
The company acquired 365Talents in January to add skills-management capabilities to its platform. Farber said the acquisition was driven by enterprise prospects seeking an integrated learning and skills solution, noting that Docebo had lost some enterprise opportunities in 2025 because it lacked a compelling skills offering.
In the second quarter, Docebo won two customer contracts combining learning and skills, which Farber said the company likely would have lost the prior year. He said the combined offering can increase contract value, using an illustrative example in which a CAD 100,000 LMS sale is paired with a CAD 100,000 skills sale.
The first phase of product integration has been completed, with a second phase expected at the beginning of 2027. That phase is intended to create a more seamless experience with one login and two modules. Docebo expects additional benefits in the fourth quarter as it continues enabling sales teams, selling skills as a standalone product, bundling it with new LMS contracts and expanding sales efforts to its existing customer base.
Enterprise Demand and ARR Outlook
Farber said Docebo’s first-half enterprise performance exceeded the company’s assumptions entering 2026. The company had assumed essentially flat enterprise bookings growth in its annual outlook while it adjusted its enterprise sales motion, but saw strong enterprise results in both the first and second quarters, along with pipeline generation that he said supports continued momentum in the second half.
He said the company expects reported ARR growth to improve partly because it will face easier comparisons following customer churn tied to its former Dayforce OEM relationship and AWS. Farber said Dayforce churned roughly CAD 5 million of ARR in the third quarter of 2025, while Dayforce and AWS combined for nearly CAD 8 million of churn in the fourth quarter of 2025.
Docebo reports an underlying ARR metric excluding the Dayforce wind-down, foreign exchange and acquired ARR. Farber said the company expects that measure and its reported ARR growth rate to converge over time as the impact of the wind-down declines.
The company’s movement upmarket has also changed its customer mix. Farber said customers paying CAD 100,000 or more represented 28% of ARR in 2020 and now account for 56%. Docebo generally does not target prospects with fewer than 300 employees, he said, while its smaller customer cohort—those below CAD 50,000 of ARR—has lower retention and is expected to be more of a flat-growth segment.
AI Product Plans and Margin Targets
Docebo is expanding AI capabilities, though Farber said its human-resources buyer base is interested but not necessarily at the forefront of AI adoption. Existing AI features include content creation and virtual role play, the latter designed for scenarios such as helping frontline workers practice handling difficult customer interactions.
In the fourth quarter, the company plans to introduce Knowledge Search, which is intended to connect the LMS with sources including SharePoint, Jira and Google Drive. It also plans to launch AgentHub, enabling administrators to create custom agents for workflows such as enrolling employees across countries and courses.
Farber said most AI monetization is expected to occur through usage-based credits. Customers will initially receive credits to test capabilities, with more meaningful monetization expected in the second half of 2027.
On profitability, Farber reiterated Docebo’s approximately 20% EBITDA margin guidance for 2026, compared with 18% last year. He said the company expects roughly 2 percentage points of annual EBITDA margin expansion until it reaches its medium-term target of about 27%, driven primarily by leverage in general and administrative costs and sales and marketing. The company expects to continue investing in research and development as it builds product capabilities, despite productivity improvements from AI.
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.
