Robert Young • Canaccord Genuity

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CEO Alessio Artuffo confirmed this was their second 'Big Five' tech customer, won due to the client's need for a scalable, highly integrable platform to replace an in-house system for a customer experience use case. CFO Brandon Farber stated the guidance increase reflects strong mid-market performance and FX tailwinds, while noting that large enterprise deals and FedRAMP remain upside. Farber also reiterated that net retention should improve in Q3 before a Q4 dip from the AWS contract loss.

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CFO Brandon Farber explained the guidance reduction reflects a more measured approach for the second half of the year due to macro impacts on new logo growth, not an increase in churn; retention assumptions remain unchanged. He noted some deal elongation in the enterprise segment but stated the pipeline remains healthy and well-diversified, consistent with historical industry representation.

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CEO Alessio Artuffo confirmed the new product modules had a meaningful impact and outlined a broader strategy to evolve Docebo into an AI-first learning platform. Interim CFO Brandon Farber provided a FedRAMP update, stating they expect to achieve Authority to Operate (ATO) status by the end of Q3, which will allow them to begin bidding on federal contracts and capitalize on the need to modernize government technology.

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CFO Sukaran Mehta explained that new customer count is a less relevant metric as the company focuses on higher-value enterprise clients, where one large win can equal 10-20 SMB customers. He noted new logo ACV increased to $71k and the enterprise cohort grew 30% YoY. Mehta also confirmed the pipeline contains large, strategic 7-figure opportunities in both government and enterprise.

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President and CEO Rob Mionis confirmed they continue to win 1.6T variants and that the fully orchestrated rack win is opening new doors. He stated that expanding their services footprint is a major focus. CFO Mandeep Chawla added that while they have a partner network, they are looking at M&A targets for vertical integration in services, which would likely have a more material financial impact around 2026.

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CFO Mandeep Chawla clarified that the second half will see sequential revenue growth and described the guidance as a 'high confidence view' that is risk-adjusted for the uncertain environment. On ATS margins, he confirmed the dilutive A&D program roll-off occurred in April and is reflected in the Q2 and full-year outlook, and he sees further opportunity for margin expansion in ATS this year.

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President and CEO Rob Mionis clarified that the win leverages long-standing silicon partners for networking and the customer's proprietary custom compute silicon. He stressed that it is a significant design win for a full RAC, utilizing Celestica's IP in switching, compute modules, and RAC orchestration. CFO Mandeep Chawla described the 2025 guidance as a 'high confidence view' with strong visibility through Q3, implying potential for upside as Q4 solidifies.

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Stephen Dorwart, SVP, stated the Grok win was a significant proof point for Celestica's AI/ML compute capabilities, secured through their own go-to-market efforts, though often endorsed by ecosystem partners. The initial engagement is for manufacturing, with plans for increased design participation in future generations. On 800G, Dorwart confirmed winning next-gen programs with existing 400G customers, with strong demand and customer pressure to accelerate. CFO Mandeep Chawla added that while individual 800G ASPs are higher, the portfolio average ASP increase is in the low to mid-single digits due to product mix.

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CEO Ed Ryan stated that he expects continued GTI growth from new and existing customers but clarified that the solution is primarily for mid-sized to large customers with complex international shipping needs. He noted that it is not a universal use case for all 26,000 customers, as smaller clients with simple supply chains can often manage tariffs themselves.

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CEO Ed Ryan did not provide specific penetration metrics but explained that the need for trade intelligence solutions is primarily with mid-sized and larger customers. He noted that usage is driven by complexity; a company with many products shipping to many countries cannot manage tariffs effectively on their own and becomes a prime candidate for the solution, whereas smaller, less complex shippers may not need it.

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