Erin Kyle

Erin Kyle asked for clarification on the 2025 net dollar retention (NDR) of 99%, specifically the impact of AWS. She also requested an update on the AI credit pricing model and the broader consumption pricing strategy.

Answer

Brandon Farber (CFO) confirmed that excluding AWS, NDR would have been 101%, noting sequential 3-quarter improvements from Q2 to Q4 and strong trends into 2026. He also mentioned a Q4 gross bookings mix of 60% new logo and 40% expansion, with a focus on increasing expansion. Alessio Artuffo (CEO) stated that AI credit pricing is being tested with mixed results, citing pushback from CFOs/CIOs seeking predictability. He challenged the notion that per-seat pricing is legacy, noting that most companies, even AI-native ones, use hybrid or per-seat models based on customer needs.

Erin Kyle from CIBC inquired about Docebo's net dollar retention (NDR) for 2025, which was 99%, seeking clarification on the impact of AWS and underlying trends within the metric.

Answer

CFO Brandon Farber confirmed that excluding AWS, NDR would have been 101%, noting sequential improvements from Q2 to Q4 2025. He also highlighted a favorable mix of gross bookings in Q4, with 40% from expansion. CEO Alessio Artuffo discussed the AI credit pricing model, stating it's in early testing with mixed results due to customer desire for predictability, and emphasized a hybrid pricing approach that aligns with customer needs.

Erin Kyle from CIBC Capital Markets asked for details on the recent Global Education Solutions customer win, including the use cases and broader demand from the education vertical. She also requested an update on capital allocation priorities for the second half of the year.

Answer

CEO Alessio Artuffo described the win as a multi-use case deal with a large education publisher who was displacing a legacy vendor, highlighting Docebo's flexibility. He noted the education sector is a growing footprint. CFO Brandon Farber outlined capital allocation priorities as: 1) strategic investments in the business (e.g., government sales, AI R&D), 2) opportunistic share buybacks, and 3) M&A, for which they are awaiting the right asset.

Erin Kyle from CIBC World Markets asked about capital allocation priorities between M&A and share buybacks, the appetite for tuck-in acquisitions versus organic investment, and the expected pace of G&A expense optimization.

Answer

Interim CEO Alessio Artuffo stated that while past M&A focused on small tuck-ins, the company's strong capital structure now provides flexibility for quality investments that fit its long-term vision. CFO Sukaran Mehta explained that G&A expense has been held flat or down in absolute dollars for several quarters due to system automation and is expected to continue providing significant operating leverage as revenue grows.

Erin Kyle sought details on the macro perspective for the Capital Markets pipeline and what assumptions, particularly regarding interest rate cuts, are baked into the 2026 guidance. She also asked for the U.S. exposure in Capital Markets as a percentage of that business and the internal growth for the engineering segment in the quarter and full year.

Answer

CFO Christian Mayer stated that the 2026 outlook for Capital Markets does not rely on rate cuts, benefiting instead from pent-up demand and supply, with the U.S. expected to lead. He confirmed U.S. exposure in Capital Markets is 50%. For the engineering segment, internal growth was roughly flat for the quarter and 5% for the full year.

Erin Kyle sought details on the macro outlook for the Capital Markets pipeline, the assumptions for the 2026 guide regarding interest rate cuts, U.S. exposure in Capital Markets, and the internal growth figures for the engineering segment in the quarter and full year.

Answer

CFO Christian Mayer clarified that the 2026 Capital Markets outlook does not rely on rate cuts but rather on pent-up transaction demand, with the U.S. expected to remain strong. He confirmed U.S. exposure in Capital Markets is 50% and stated that Engineering internal growth was roughly flat for the quarter and 5% for the full year.

Erin Kyle asked for more detail on the pace and breadth of the capital markets recovery, including leading regions or asset classes, and the number and recycling percentage of funds in the disposition phase within investment management.

Answer

Christian Mayer (CFO) described the capital markets recovery as broad-based and multi-year, with Europe well-positioned. Jay Hennick (Global Chairman and CEO) added that capital markets are not fully recovered, with instability in interest rates and investor confidence, representing future upside. Jay Hennick (Global Chairman and CEO) explained that fund dispositions are ongoing, driven by opportune times and asset manager art, with key players incentivized by equity stakes.

Erin Kyle asked for more detail on the pace and breadth of the capital markets recovery, including leading regions or asset classes, and the number and recycling percentage of funds in the disposition phase within investment management.

Answer

Christian Mayer (CFO) described the capital markets recovery as broad-based and multi-year, with Europe well-positioned. Jay Hennick (Global Chairman and CEO) added that capital markets are not fully recovered, with instability in interest rates and investor confidence, representing future upside. Jay Hennick (Global Chairman and CEO) explained that fund dispositions are ongoing, driven by opportune times and asset manager art, with key players incentivized by equity stakes.

Erin Kyle asked about the roofing segment's macro outlook, specifically if new construction remaining depressed would intensify competition in the reroof segment. She also inquired about the M&A focus for 2026, asking if roofing remains a priority for tuck-in acquisitions and the appetite for larger platform deals in adjacent commercial maintenance spaces.

Answer

CEO D. Scott Patterson confirmed that competition in roofing has intensified due to fewer opportunities and more bidders, compressing gross margins, which he doesn't expect to alleviate soon. For M&A, he stated the primary focus is on tuck-unders, with roofing being a committed area. He emphasized patience and a focus on leadership and partnership. While open-minded to larger adjacency acquisitions (within restoration, roofing, or fire), he remains cautious about valuations in what he considers an overheated market.

Erin Kyle inquired about the macro view on the U.S. new construction cycle and its potential impact on competition within the reroof segment, and the company's M&A focus for 2026, specifically regarding roofing tuck-ins and the appetite for larger platform deals in commercial maintenance.

Answer

CEO D. Scott Patterson confirmed that competition in the roofing segment has intensified due to fewer opportunities and more bidders, compressing gross margins, which he doesn't expect to alleviate soon. Regarding M&A, he stated the primary focus is on tuck-unders, with roofing remaining a key area. He expressed openness to larger, adjacent acquisitions within existing platforms like restoration, roofing, or fire, but emphasized patience and caution around current high valuations in an overheated market.