Docebo’s Q1 2025 Results: AI-Driven Growth Amid Transition

Docebo Inc. (DCBO), a leader in AI-powered corporate learning platforms, delivered mixed but strategically significant results for Q1 2025, highlighting its dual focus on innovation and operational discipline. While net income fell due to rising expenses, key metrics like ARR growth, customer wins, and strategic investments in AI suggest the company is positioning itself for long-term resilience.

Key Financial Highlights
Docebo’s Q1 2025 performance was marked by steady top-line growth and improved profitability under non-IFRS measures:
- Subscription Revenue: Rose 13% year-over-year to $54.2 million, accounting for 95% of total revenue, reflecting the strength of its SaaS model.
- ARR Growth: Annual Recurring Revenue hit $225.1 million, a 11.9% increase from Q1 2024, driven by upselling to enterprise clients and new wins in healthcare, hospitality, and retail.
- Adjusted EBITDA: Improved 19.5% to $8.9 million, or 15.6% of revenue, underscoring margin expansion.
- Net Income: Declined 71.5% to $1.5 million due to higher operational expenses, including investments in AI development and leadership transitions.
The company revised its 2025 guidance upward for both revenue and EBITDA margins, projecting 9–10% total revenue growth and 17–18% Adjusted EBITDA margins by year-end.
Strategic Momentum
Docebo’s Q1 results reflect its strategic focus on AI-driven product innovation and customer retention:
- AI Integration: The company showcased its AI advancements at its Docebo Inspire event, emphasizing hyper-personalized learning experiences for both customer (CX) and employee (EX) use cases. This aligns with its goal of becoming a “decision-making platform for corporate learning,” as CEO Alessio Artuffo stated.
- Customer Wins: Notable partnerships included a North American software provider (targeting trades businesses), NYU Langone Health (building a talent ecosystem), and a global luxury hotel chain (enhancing employee training). These wins highlight the platform’s versatility across industries.
- AWS Contract: While Amazon Web Services (AWS) will exit its Skills Builder academy by late 2025 (representing <2% of ARR), AWS confirmed it will continue using Docebo for EX initiatives. The loss, though small, underscores the importance of diversifying client relationships.
Leadership and Operational Shifts
Docebo is undergoing leadership changes to strengthen its execution:
- New Hires: Kyle Lacy (CMO) and Brandon Farber (CFO) bring SaaS scaling expertise, while Riccardo LaRosa (CTO) succeeds Fabio Pirovano, who is departing by year-end.
- Credit Facility: A $50 million revolving credit line (expandable to $100 million) provides liquidity for growth and strategic opportunities.
- NCIB Renewal: The Toronto Stock Exchange approved a 12-month share repurchase program, allowing Docebo to buy back up to 5% of its shares, signaling confidence in its undervaluation.
Risks and Challenges
Despite progress, Docebo faces hurdles:
- AWS Transition: The Skills Builder loss, while minor, tests its ability to retain large clients.
- Leadership Stability: Departures of key executives (e.g., Greg Swift, CRO) could disrupt sales execution if replacements underperform.
- Economic Sensitivity: Smaller businesses may delay spending amid macroeconomic uncertainty, though Docebo’s focus on large enterprises mitigates this risk.
Conclusion: Positioning for Long-Term Value
Docebo’s Q1 results reveal a company balancing short-term costs with long-term ambition. Its 11.9% ARR growth and 19.5% improvement in Adjusted EBITDA demonstrate strong fundamentals, while its AI investments and leadership overhaul aim to solidify its competitive edge.
Investors should weigh the risks—AWS’s departure and leadership transitions—against the company’s 9–10% revenue growth guidance and its $225.1 million ARR base, which provides a solid foundation for scalability. The renewed credit facility and NCIB also signal financial flexibility, a critical advantage in uncertain markets.
For those betting on AI’s role in corporate learning, Docebo’s focus on hyper-personalization and cross-industry adoption positions it as a contender in a growing $100+ billion LMS market. While profitability pressures remain, the strategic moves in Q1 suggest the company is prioritizing sustainable growth over short-term gains—a prudent approach in a sector ripe for disruption.
In sum, Docebo’s Q1 results are a mixed bag, but the data points to a company making deliberate bets on innovation and execution. Investors seeking exposure to AI-driven SaaS growth, with a tolerance for near-term volatility, may find the stock worth watching.
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