QUICK TAKE: CONFERENCE TAKEAWAY
DOMINATING NEXT-GENERATION LMS
THE TD COWEN INSIGHT
Our discussions with partners, customers, and prospects at DCBO's annual user conference suggest that the company is distancing itself from the competition and has become the defacto LMS. We continue to believe that DCBO is well positioned to win market share particularly from legacy players, but our discussions suggest it is winning against modern solutions as well. Top pick, $60 PT.
Our discussions with stakeholders supported our view that DCBO is considered best of breed. Customers that migrated from legacy solutions cited product innovation and strong customer support as primary reasons for choosing DCBO. Customers who evaluated competing cloud solutions chose DCBO for its product innovation and scalability.
A similar sentiment was echoed by channel partners we spoke with who have also focused efforts on using DCBO as one of their primary LMS solutions to go to market with at the expense of legacy solutions their practices were historically built around. It was a consistent theme amongst all our discussions: Docebo is unchallenged, leading the pack by a wide margin.
DCBO's broad capabilities were also highlighted as a key reason to adopt the platform. Many enterprise customers are consolidating multiple point solutions onto DCBO. Enterprise customers are also working with DCBO to add new features that would drive further consolidation, resulting in potentially higher ACV and lower competition for DCBO, while enterprises lower costs and complexity.
Enterprise efforts are largely there, but some work to do still. Enterprise customers noted that the product was enterprise ready and demonstrated scalability. Some major customers continue to help DCBO adapt the platform to their complex industries, but were nonetheless very satisfied with the platform. DCBO's openness to customer feedback was often cited as a key differentiator.
However, some noted that the ecosystem still needed to be built out and DCBO needed to rely on partners more for deployments, rather than take it all on themselves. We consider these to be standard growing pains. The company has revamped its sales force with more seasoned enterprise sales professionals and strengthened its customer success teams, which is expected to drive higher cross-selling.
FedRAMP certification is ongoing with DCBO having completed tasks on its end. The company expects to be able to bid in the large VA RFP that went out a couple days ago. We continue to believe that FedRAMP certification will bring considerable opportunities to accelerate growth.