Docebo Inc. (DCBO): 5 FORCES Analysis [Nov-2025 Updated]

You need a clear, unvarnished look at Docebo Inc.'s competitive footing, especially with its $225.1 million ARR business facing down late 2025 headwinds. Here's the quick math: the moat looks solid with high barriers for new entrants and a low threat from substitutes, but the fight is fierce. We see intense rivalry where projected growth of 11.40% lags, and customer power is definitely rising as macro pressures let big buyers push back, even with high platform switching costs. I've mapped out all five forces-from that strong 80.3% Q3 2025 gross margin suggesting supplier leverage is low, to the reality of selling to giants like the customer with over 200,000 employees-so you can see exactly where Docebo Inc. stands right now.

Docebo Inc. (DCBO) - Porter's Five Forces: Bargaining power of suppliers

When you look at Docebo Inc.'s supplier power, you're really looking at the cost structure of their core software delivery. The good news here is that the platform itself is highly profitable, which naturally limits the leverage of suppliers whose costs are tied to the final product.

High gross margin of 80.3% (Q3 2025) suggests low variable COGS. This means that for every dollar of Docebo Inc. revenue, only about 19.7 cents goes to the direct costs of delivering that service, which is a fantastic position to be in. Honestly, this high margin gives Docebo Inc. a lot of cushion against minor supplier price hikes.

However, you can't ignore the infrastructure backbone. Reliance on major cloud providers creates high switching costs for Docebo Inc. While the data doesn't show Docebo Inc. switching off a provider, it does show the impact when a major partner relationship shifts. For instance, the wind-down of the Amazon Web Services (AWS) Skills Builder contract, set to expire on December 31, 2025, was expected to hit Annual Recurring Revenue (ARR) by $4 million. That's a concrete example of how a major infrastructure partner's decision can directly impact Docebo Inc.'s top line, even if that specific use case was less than 2 percent of ARR as of March 31, 2025.

Here's a quick look at some relevant numbers from the latest reports:

On the flip side, Docebo Inc. is actively working to diversify its go-to-market channels, which helps mitigate reliance on any single type of partner. Stronger systems integrator partnerships reduce reliance on any single channel. The CEO noted steady progress supported by these stronger systems integrator partnerships, which helps push the platform into new customer segments like federal and SLED (State, Local, and Education) markets.

The strength of the ecosystem is clear when you look at the breadth of their connections. You're not just buying a standalone product; you're buying into a network:

• Docebo Inc. has relationships with channel, service, technology, and systems integrator partners globally.
• Technology partners offer over 500+ powerful integrations to enhance capabilities.
• These partnerships help improve program adoption and streamline the tech stack.

Finally, think about content. Limited leverage from content suppliers is suggested by Docebo Inc.'s strategic focus. While the platform has a Content Marketplace, the company clearly prefers to grow its high-margin subscription revenue. In Q3 2025, Adjusted EBITDA margin hit 20.1%, and management stated they are not focused on professional services revenue, preferring the subscription stream. This preference means that while content suppliers exist, their leverage over the core financial engine of Docebo Inc. is inherently limited because the platform's value-the software itself-is what commands the premium pricing, not the third-party content.

Finance: draft 13-week cash view by Friday.

Docebo Inc. (DCBO) - Porter's Five Forces: Bargaining power of customers

You're analyzing Docebo Inc.'s position against its buyers, and the data shows a mixed picture. On one hand, the platform's deep integration into enterprise workflows creates stickiness, but on the other, current economic pressures are definitely giving large buyers more leverage right now.

Customer concentration appears low enough that losing a single major account doesn't derail the business. For instance, following the notification from Amazon Web Services, Inc. ("AWS") that it would not renew its Skills Builder customer academy Order Form, the impact was contained: the AWS use case represented less than 2% of Docebo Inc.'s reported Annual Recurring Revenue (ARR) as at March 31, 2025. This suggests that even a significant customer departure is manageable within the context of the overall revenue base.

For enterprise customers, the bargaining power is tempered by the operational reality of the platform. Once Docebo Inc.'s training solution is fully embedded across an organization's processes-for onboarding, compliance, or sales enablement-the cost and disruption of migrating to a new vendor become substantial. This platform integration acts as a natural barrier to switching, even if the contract terms are up for negotiation.

Still, the near-term environment favors the buyer. Docebo Inc. itself has flagged risks related to fluctuations in the length and complexity of the sales cycle for our platform, especially for sales to larger enterprises. This elongation in 2025 means large buyers have more time and opportunity to negotiate terms, pricing, or scope before signing or renewing. Also, management has noted the impact of macroeconomic headwinds, which allow customers to push for pricing concessions or even contract downgrades as they manage their own budgets.

To be fair, Docebo Inc. continues to land massive logos, which indicates the platform meets the scale requirements of the largest buyers. This scale is a counterweight to their negotiation power. Consider the recent wins:

• A leading global provider in the industrial and environmental services sector, with over 200,000 employees, selected Docebo Inc. to unify regional learning systems.
• A major North American beverage company, boasting more than 25,000 employees, chose Docebo Inc. to replace a legacy compliance training platform.
• Stanley Black & Decker, with 50,000 employees, continues its investment in the platform.

Here's a quick look at the financial scale as of the latest reported quarter, which gives context to the size of the contracts Docebo Inc. is managing:

The ability of Docebo Inc. to secure deals with organizations exceeding 200,000 employees shows they are competing for the highest-value contracts, but these same large entities are the ones most sensitive to the current macro environment and possess the internal resources to drive harder bargains during the sales cycle.

Finance: draft 13-week cash view by Friday

Docebo Inc. (DCBO) - Porter's Five Forces: Competitive rivalry

You're looking at the competitive landscape for Docebo Inc. in late 2025, and honestly, the rivalry in the global corporate e-learning space is fierce. It's a crowded market, which means Docebo has to fight hard for every dollar of its subscription revenue.

The company's own guidance reflects this pressure. Management is forecasting total revenue growth for the fiscal year ended December 31, 2025, to be 11.40%. While this is solid, it definitely suggests that growth rates are moderating compared to the broader, high-flying SaaS benchmarks you see elsewhere in the software sector. Still, the core business, subscription revenue, is projected to grow at 11.75% for the full year.

To give you a sense of scale right now, in the third quarter of 2025, Docebo posted total revenue of $61.6 million, with subscription revenue making up 94% of that, hitting $58.0 million. Their Annual Recurring Revenue (ARR) stood at $235.6 million as of September 30, 2025. That's the revenue base they are defending against a long list of capable rivals.

Direct competition with major Human Capital Management (HCM) and Learning Management System (LMS) vendors is a constant threat. These established players often bundle learning with broader HR suites, making switching costs high for existing customers. You see this dynamic playing out against giants and specialized players alike.

Here is a quick look at some of the key platforms Docebo is measured against in the market as of 2025:

The company's primary defense and offense in this crowded field is its strategy. Docebo's AI-First platform strategy is the primary differentiator against rivals. This focus on artificial intelligence is meant to automate processes like content tagging and deliver personalized recommendations, which is crucial when competitors are trying to box them in with feature parity.

The intensity of rivalry is also reflected in how Docebo is trying to carve out specific niches, like expanding its presence in the public sector, noting wins with entities like the Latvian School of Public Administration. This shows they are actively fighting for market share beyond the usual enterprise base. Still, concerns about administrative complexity and pricing flexibility sometimes push buyers toward alternatives.

Key competitive dynamics you need to watch include:

• Focus on AI integration across all platform features.
• Competition from integrated HCM suites like Workday.
• Pressure from platforms offering better customization options.
• The need to maintain high gross profit margins, which were 80.3% in Q3 2025.
• The growth rate excluding their largest OEM customer, which was approximately 14.0% for ARR in Q3 2025.

If onboarding takes longer than expected, churn risk rises, defintely. Finance: draft 13-week cash view by Friday.

Docebo Inc. (DCBO) - Porter's Five Forces: Threat of substitutes

When you look at the threat of substitutes for Docebo Inc., you see a market that is expanding so rapidly that it naturally dampens the immediate threat from outside the core LMS space. The global Learning Management System (LMS) market itself is projected to grow from $28.6 billion in 2025 to $70.8 billion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of approximately 19.9%. This robust growth suggests that the overall pie is getting much bigger, which is a tailwind for Docebo Inc.'s primary offering.

However, not all learning solutions are created equal, and this is where simpler substitutes falter against an enterprise platform like Docebo Inc. Simple content delivery systems or basic file-sharing platforms simply cannot handle the rigor required by large organizations. You need features that go beyond just hosting a video file; you need proof of learning and compliance. For instance, Docebo Inc. offers features like Compliance Management and Compliance Tracking.

To be fair, a substitute might offer a lower initial price point, but that cost saving disappears when you factor in the manual work required to manage compliance and track outcomes. Docebo Inc.'s end-to-end solution reduces the appeal of these unintegrated substitutes because it bundles the necessary infrastructure. The platform leverages SCORM data models to deliver detailed insights on learner progress, completion rates, and assessment scores, which is critical for effective monitoring.

Here's a quick look at how Docebo Inc.'s capabilities stack up against the basic requirements of an enterprise:

The shift away from traditional methods is also a major factor reducing the threat of substitutes. Instructor-Led Training (ILT) is inherently difficult to scale and expensive to deploy repeatedly. E-learning, which Docebo Inc. specializes in, requires 40 to 60% less learning time than traditional classroom learning and enhances retention by 25 to 60%. This efficiency gain makes the cloud LMS a superior alternative for continuous workforce development.

The move to digital is clear, but you must ensure the digital tool you choose is comprehensive. The market shows a strong preference for integrated systems:

• 83% of companies use an LMS to manage training programs.
• Cloud-based LMS deployments account for over 70% of the LMS market.
• 72% of businesses report a competitive advantage from LMS deployment.
• Docebo Inc.'s subscription revenue growth guidance for fiscal year 2025 is between 10.75% to 11.75%.

If onboarding takes 14+ days for a substitute platform, churn risk rises.

Docebo Inc. (DCBO) - Porter's Five Forces: Threat of new entrants

High capital is required for enterprise-grade, AI-enabled SaaS platforms.

Developing an enterprise-grade, AI-enabled SaaS platform demands substantial upfront and ongoing investment, which acts as a natural barrier. For instance, Docebo Inc. reported that its Research and Development expenses as a percentage of total revenue increased from 18.3% in the three months ended March 31, 2024, to 19.9% for the three months ended March 31, 2025. This level of sustained investment in technology keeps the bar high for newcomers. The broader Global AI-Created SaaS Market was valued at USD 101.73 Bn in 2025, indicating significant scale is needed to compete in the AI component of the technology stack.

FedRAMP Moderate Authorization creates a high barrier for US public sector entry.

For Docebo Inc. to expand its reach into the US public sector, achieving FedRAMP Moderate Authorization was a key milestone. The financial commitment for a new entrant to secure this authorization is significant. Initial Authorization to Operate (ATO) Costs for FedRAMP Moderate are estimated to range from $500,000 to $1,500,000, with ongoing annual costs between $200,000 and $500,000. A full Moderate assessment by a Third-Party Assessment Organization (3PAO) alone can range from $150,000 to $300,000 or more. Advisory services specifically for developing the System Security Plan (SSP) for a Moderate system fall in the $75,000 - $175,000 range.

The market is already crowded, making it defintely hard to gain traction.

The Learning Management System (LMS) Market is mature and populated by established players. The market size was valued at USD 29.52 Billion in 2025. Gaining market share requires displacing incumbents who already hold significant revenue streams, such as Docebo Inc., which reported Annual Recurring Revenue (ARR) of $233.1 million as at June 30, 2025. New entrants face a landscape where Generative AI is now a standard feature in leading platforms, meaning parity on core features is expected, not a differentiator.

New entrants must overcome established enterprise relationships and trust.

Securing large enterprise contracts involves long sales cycles and deep integration, which builds high switching costs for the buyer. Docebo Inc. continues to win large deals, such as a global provider with over 200,000 employees selecting the platform to unify regional systems in Q3 2025. This demonstrates the value placed on established enterprise relationships and the ability to handle complex, multi-use-case deployments. Trust is built over time, often through successful performance across multiple years.

Here are the estimated financial hurdles for a new entrant targeting the US public sector:

The competitive environment necessitates specific investments to even qualify for consideration:

• Achieve FedRAMP Moderate Authorization.
• Maintain R&D spend above 19.9% of revenue.
• Develop AI-powered content creation capabilities.
• Establish relationships with key systems integrators.
• Offer localized sales and service support globally.

Key competitors that a new entrant must contend with include the following organizations:

• Blackboard Inc.
• Cornerstone OnDemand
• SAP SE
• Oracle Corporation
• Moodle
• Instructure Inc.