Docebo Reports Strong Mid-Market Performance, Challenges Ahead

Docebo reported strong mid-market performance, expansion with a major tech company, and achieved FedRAMP certification, opening a $2.7 billion addressable market. However, challenges include lower multi-use case adoption, elongated enterprise sales cycles, and the loss of the AWS contract, impacting Q4 retention rates. The company's guidance reflects optimism for the remainder of the year.

Docebo Inc. (DCBO) has reported robust financial performance and strategic advancements during its Q2 2025 earnings call. The company showcased significant growth in the mid-market segment, particularly in technology, healthcare, and financial services sectors. This segment contributed to a 23% growth in customer count, exceeding $100,000, driven by new logos and expansions [1].

A notable achievement was the early acquisition of FedRAMP certification, which unlocks a $2.7 billion addressable market across US federal, state, and local agencies [1]. This certification opens new opportunities for Docebo, positioning it for growth in the government sector.

Docebo also announced the launch of Harmony, an AI-first learning platform designed to enhance customer experience and administrative efficiency. The platform includes features such as real-time content retrieval and automated course creation, which are expected to improve training efficiency and customer satisfaction [2].

The company reported a significant expansion with a major tech customer, highlighting its ability to displace internal systems and legacy vendors. This move underscores Docebo's enterprise capabilities and integrability, which are crucial for scaling learning infrastructures [1].

However, Docebo faced several challenges during the quarter. The percentage of new customers using the platform for two or more use cases decreased from 70-80% last year to 65% this year, indicating a shift in customer adoption patterns [1]. Additionally, elongated sales cycles in the enterprise space continued to pose a challenge, affecting deal closures [1]. The company also anticipates a dip in retention in Q4 due to the loss of AWS as a customer, which may impact ARR growth in the quarter [1].

Despite these challenges, Docebo remains optimistic about its future prospects. The company expects the mid-market performance to continue, especially as it aligns with enterprise cycles in the second half of the year [1]. The launch of the Harmony AI platform is seen as a strategic move to enhance customer experience and administrative efficiency, positioning Docebo for long-term growth.

References:
[1] https://finance.yahoo.com/news/docebo-inc-dcbo-q2-2025-070412614.html
[2] https://www.ainvest.com/news/docebo-ai-driven-strategic-transformation-catalyst-long-term-growth-lms-market-2508/