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Docebo Stock (TSE:DCBO) Craters 17% Despite Q1 Earnings Beat
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Docebo Stock (TSE:DCBO) Craters 17% Despite Q1 Earnings Beat

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DCBO stock finished about 17% lower today despite both its EPS and revenue figures coming in ahead of analysts’ estimates.

Docebo (TSE:DCBO) (NASDAQ:DCBO), an AI-driven learning platform provider, fell nearly 17% today after reporting its Q1-2023 earnings results. This is despite both earnings per share (EPS) and revenue coming in ahead of analysts’ expectations. Please note that all figures are in U.S. dollars unless otherwise stated.

In Q1, Docebo’s revenue increased by 29%, reaching $41.5 million and beating the consensus estimate of $41.4 million. Subscription revenue, representing 94% of total revenue, grew by 33%, hitting $38.8 million. Meanwhile, adjusted EPS reached $0.09 compared to -$0.05 last year, which easily beat the $0.03 consensus estimate.

Additionally, the company witnessed a surge in its customer base, with the platform now used by 3,506 customers, up from 2,947 at the end of Q1 2022. Growth in average contract value, which was $47,034 in Q1 compared to $43,875 a year earlier, also contributed to Docebo’s growth.

Docebo’s Q2 Outlook

Despite potential macroeconomic challenges throughout the year, Docebo’s CEO is optimistic for the long term, and for the current quarter, Docebo anticipates total revenue between $42.9 million and $43.2 million, a gross profit margin of 80% to 81%, and an adjusted EBITDA margin of 5.5% to 6.5%.

Is DCBO Stock a Buy, According to Analysts?

According to analysts, DCBO stock is a Strong Buy based on four Buys and one Hold assigned in the past three months. The average DCBO stock price target of C$64.43 implies 56.7% upside potential.

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