Erin Kyle

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 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.