Suthan Sukumar

Suthan Sukumar asked about the level of partner engagement and their contribution to bookings growth versus direct sales, the performance metrics used for partners, the trending of the on-premise component of Sangoma's pipeline, and how the current booking strength, particularly from larger projects, is expected to convert into revenue over the year.

Answer

Charles Salameh (CEO) clarified that the bulk of revenue and large TCV deals are partner-driven, with performance measured by new partner sign-ups, quoting speed, and win rates. Jeremy Wubs (COO) reported that the Prem UC business has seen year-over-year growth for 4-5 quarters, taking share from competitors like Avaya and Mitel, and they are bullish on continued growth in this market. Charles Salameh (CEO) explained that while larger deals take time to roll out, Sangoma has a disciplined project management organization to efficiently execute and convert bookings into revenue, expecting a consistent 'wave' of revenue drops from deals signed in previous quarters, leading to compelling LTV.

Suthan Sukumar asked about the engagement and contribution of Sangoma's partner ecosystem to bookings growth versus direct sales, the trending and conversion expectations for the on-premise pipeline, and the process for converting significant booking strength from larger projects into revenue.

Answer

CEO Charles Salameh and COO Jeremy Wubs confirmed that the bulk of revenue and large TCV deals are partner-driven, with metrics tracking new partner acquisition, quoting speed, and win rates. Jeremy Wubs noted continued strong momentum in the Prem UC business, taking share from competitors like Avaya and Mitel, particularly in the SMB, government, and education sectors. Charles Salameh explained that larger deals, while taking time to roll out (e.g., 300+ locations), are managed by a disciplined project management organization, ensuring consistent revenue drops from previous quarters' bookings, with full throttle typically achieved within 8-10 months.

Suthan Sukumar asked about Sangoma's customer churn, specifically if it is now largely contained or if further declines are expected. He also inquired about the expected mix trend of expansion activity versus new business for organic growth and bookings. Additionally, he sought clarification on Sangoma's M&A priorities, such as market access, technology platform enhancement, or competitor consolidation.

Answer

Charles Salameh, CEO, confirmed that churn is well under control, with positive trends and predictions for continued decline in FY2027, aided by new AI-based tools and increased stickiness from upsell/cross-sell to new customers. He explained that organic growth will be driven equally by account expansion (Ignite programs, cross-sell/upsell to existing base) and new logos (new industry verticals, partner expansion), with large strategic deals providing additional, unpredicted momentum. Jeremy Wubs, COO, elaborated on M&A priorities, stating they aim for market access, integration of technologies like SASE, SD-WAN, and security into the portfolio, and leveraging partner ecosystems to cross-sell both acquired and existing UCaaS/contact center platforms, thereby making essential communications bundles more comprehensive.

Suthan Sukumar inquired about the containment of customer churn following Sangoma's business refocusing, asking if any 'low-hanging fruit' customers remain at risk. He also questioned the expected mix of expansion activity versus new business for future organic growth and sought clarification on the priorities for Sangoma's M&A strategy, including market access, technology platform enhancement, or competitor consolidation.

Answer

CEO Charles Salameh affirmed that churn is well under control, with positive trends and AI-based tools expected to further mitigate it, predicting continued decline. He explained that organic growth will be driven equally by account expansion (Ignite programs, cross-sell/upsell) and new logos (new verticals, partners, RCM footprint expansion), with large strategic deals as a third, unpredicted growth engine. COO Jeremy Wubs detailed M&A priorities as market access, integrating technologies like SASE/SD-WAN/security, and leveraging partner ecosystems to enhance essential communications bundles.

Suthan Sukumar questioned whether Sangoma's customer churn is now largely contained or if further declines are expected. He also asked about the anticipated mix trend between expansion activity and new business for organic growth, and the strategic priorities for M&A, including market access, technology platform enhancement, or competitor consolidation.

Answer

CEO Charles Salameh indicated that churn is well under control, with positive trends and AI-based tools expected to drive further declines into FY 2027, as legacy customers have retired and new customers offer greater stickiness. He explained that organic growth will be driven equally by account expansion (upsell/cross-sell to existing base via 'Ignite' programs) and new logos (targeting new verticals and partners), alongside large strategic deals. COO Jeremy Wubs elaborated on M&A priorities, stating they aim for market access, integration of technologies like SASE, SD-WAN, and security to create more fulsome essential communications bundles, and leveraging partner ecosystems for cross-selling.

Suthan Sukumar asked about the trend of vendor consolidation among clients and its contribution to CGI's new and existing business, and where CGI stands in the enterprise AI adoption cycle, questioning if AI spending is additive or displacing existing IT budgets.

Answer

François Boulanger, CEO, confirmed a strong trend of vendor consolidation, citing examples of large clients reducing suppliers, which CGI benefits from due to its proximity model. He explained that companies are now focused on realizing outcomes from deployed AI tools, creating new demand for modernizing old applications and driving savings in managed services, making AI spending additive.

Suthan Sukumar asked about the trend of vendor consolidation among clients and its contribution to CGI's new and existing business, and inquired about the current stage of enterprise AI adoption, whether AI spending is additive or displacing existing IT budgets, and its resilience to macro conditions.

Answer

François Boulanger, CEO of CGI Inc., confirmed the vendor consolidation trend, citing examples where CGI gained business due to client proximity. Regarding AI, Mr. Boulanger stated that companies are moving from tool deployment to realizing outcomes, requiring help with data quality and application modernization. He noted AI creates new demand and drives savings in managed services.

Suthan Sukumar asked for details on CGI's IP strategy, including product priorities beyond AI, and requested an update on the integration progress and growth opportunities from recent acquisitions.

Answer

President and CEO François Boulanger clarified that 40% of IP revenue is now driven by solutions with embedded AI. He highlighted strong momentum for IP in the Government and Financial Services sectors, particularly with ERP systems and platforms like Wealth360. Regarding integrations, he noted positive progress in combining CGI's broader capabilities, such as India delivery, with the strong client relationships of acquired firms like Dougherty and BJSS.

Suthan Sukumar of Stifel Financial Corp. requested details on the size and scope of the 'Big Tech' expansion deal and the potential for future growth within that account. He also asked how the go-to-market priorities might shift under the new CRO.

Answer

CFO Brandon Farber described the deal as a large six-figure contract for a customer education use case in a completely new department. He noted significant growth potential remains, as Docebo has not yet penetrated the employee experience use case and the customer uses other LMSs. CEO Alessio Artuffo added that he does not anticipate drastic shifts from the new CRO, but rather a sharpened focus on execution efficiency and integrating the sales and customer success functions.

Suthan Sukumar inquired about the recent leadership transitions, specifically the departure of the CRO and CPO, asking if they were related to performance issues and about the status of the CRO search. He also asked for an update on the relationship with AWS following the loss of a use case and the potential risk of losing the entire account.

Answer

CEO Alessio Artuffo characterized the leadership changes as a proactive evolution to align the team with Docebo's next phase of growth and scale, not as a reaction to performance. He confirmed the CRO search is well underway. Regarding AWS, Artuffo stated the relationship remains excellent and collaborative, with Amazon still being an important customer. He explained AWS's decision was a strategic 'build vs. buy' choice for a mission-critical system, not a move to a competitor.

Suthan Sukumar of Stifel asked about the drivers behind the strong 15%+ attach rates for new products, questioning which offerings saw the most demand and the impact of the new pricing strategy. He also sought clarification on the FedRAMP certification timeline.

Answer

Interim CFO Brandon Farber responded that the impressive new logo ACV growth was driven by both the new pricing model and broad-based attachment across all new products, which are solving important use cases. He also confirmed they expect FedRAMP ATO status by the end of Q3, at which point they can win contracts, and noted that a material amount of U.S. Federal revenue is not currently in the guide.

Suthan Sukumar from Eight Capital asked for more details on the strategic scope of the new Deloitte partnership, the key drivers behind the increased revenue guidance, and the current state of the relationship with Dayforce following their legal resolution.

Answer

Interim CEO Alessio Artuffo described the Deloitte partnership as a marquee relationship that certifies Docebo as a white-labeled asset for Deloitte's commercial and government practices, expecting it to significantly boost the sales pipeline. CFO Sukaran Mehta attributed the higher guidance to strength in the enterprise and government segments. Mehta also confirmed the Dayforce legal action was resolved, protecting Docebo's IP, ensuring revenue continuity, and preserving the partnership while highlighting a broader strategy of diversifying channel partners.

Suthan Sukumar asked about surprising areas of strength and persistent weakness in the new business pipeline.

Answer

Jason Macdonnell, Acting CEO, highlighted strength from a rebound in digital solutions and continued momentum in AI data solutions. He noted headwinds in the changing content moderation space but saw broader opportunity in trust and safety. Tobias Dengel, President of Digital Solutions, added that while digital demand is up, clients remain cost-conscious, driving a need for automation and geographic optimization to nearshore locations like Brazil.

Suthan Sukumar asked about software ARPU drivers beyond pricing, such as module upsell, and about the competitive landscape outside of North America.

Answer

President JD Saint-Martin attributed ARPU growth to the higher value of flagship products and strong module attach rates for features like Insights and advanced inventory. He described the international competitive landscape as 'very fragmented and region-focused,' which positions Lightspeed as a dominant player due to its presence across multiple countries in Europe and APAC.