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The call emphasized multiple strong positives: notably improved event engagement (Inspire), clear early traction in enterprise demand and pipeline, differentiated AI/product momentum (Agent Hub), strong Q1 free cash flow and raised guidance. Management balanced enthusiasm with prudence — calling out one-time cash benefits, long enterprise sales cycles, integration timing for acquisitions, and mixed AI readiness across buyers. Overall, positives (product differentiation, commercial momentum, long-term contract durability, and strong cash generation) materially outweigh the cautions and one-time items.
Management raised full‑year revenue guidance by about $3.5 million (with $2.2 million coming from the Q1 beat), kept the 365Talents revenue assumption at $9.0 million for FY2026, and said it will remain conservative on embedding enterprise strength until 2–3 quarters of sustained performance; Q4 is still expected to be the strongest ARR quarter. Q1 free cash flow was unusually strong (roughly a 42% free cash flow margin) but included one‑time working‑capital benefits that may normalize in Q2, and over the long run management expects trailing 12‑month free cash flow to track within ±2% of EBITDA margins. They also highlighted that enterprise deals average over three years (with $2M+ deals averaging five years), plan to continue opportunistic share repurchases at attractive valuations, and see a low likelihood of further sizable M&A in the next three quarters.
Docebo Inspire attendance grew ~20% to over 1,000 attendees; more than 20% of Docebo's ARR was represented at the event, demonstrating high customer engagement and validation of the company's positioning.
Q1 marked the first quarter of clear enterprise strength after 2025, with management noting the strongest demand seen in years and a pipeline that supports continued wins and potential raises throughout the year. Mid-market has delivered at-or-above targets for 3-4 consecutive quarters.
Agent Hub (agentic infrastructure) generated strong early interest at Inspire with over 500 customer-submitted agent requests, live demos to 1,000+ attendees, and imminent GA — signifying a differentiated product lead in AI-enabled learning automation.
Management is maintaining a 2026 revenue assumption of $9 million for 365Talents while noting strong early demand signals (about 50% of Inspire attendees visited the 365Talents booth), supporting expectations for meaningful H2 contribution once go-to-market is fully ramped.
Enterprise contract lengths increased materially: overall enterprise average exceeded 3 years and $2M+ deals averaged ~5 years (two largest deals were 5+ years), indicating stronger customer commitment and longer revenue visibility.
Company raised full-year revenue guidance by approximately $3.5 million, with $2.2 million of that increase attributable to the Q1 beat, signaling management confidence in underlying performance.
Q1 delivered particularly strong free cash flow (management referenced roughly a ~42% free cash flow margin for the quarter), aided by high-quality enterprise customers, prepayments and minimal bad debt; long-run expectation is FCF to track near trailing EBITDA margins.
FedRAMP renewal (subject to yearly review) and a growing SLED/federal pipeline with partner-led GTM were highlighted, with management expecting meaningful results in H2 2026 and 2027 as the government motion matures.
Good morning, everyone, and welcome to the Docebo Q1 2026 Earnings Call. [Operator Instructions] I'd now like to turn over to -- 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, Sarah. Earlier this morning, Docebo issued its fully audited Q1 2026 results. The press release, which included a link to management's prepared remarks and our quarterly investor slide deck were all posted to 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 financi...