Docebo (DCBO) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: N/A
• Average Volume (3M): 71.58K
• Price to Earnings (P/E): 33.9
• Beta (1Y): 1.02
• Revenue Growth: 21.78%
• EPS Growth: 868.71%
• Country: CA
• Employees: 991
• Sector: Technology
• Sector Strength: 68
• Industry: Software - Application
• EPS (TTM): 0.39
• Shares Outstanding: 30,255,955
• 10 Day Avg. Volume: 70,862
• 30 Day Avg. Volume: 71,580
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.17
• Price to Cash Flow (P/CF): 23.20
• P/FCF Ratio: 23.60
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 10.61
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $65.21
• Price Target Upside: 48.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Docebo's stock score reflects strong financial performance and a positive outlook from the latest earnings call. The company shows robust revenue and profitability growth, coupled with strategic initiatives that position it well for future growth. However, technical indicators suggest caution due to bearish trends, and valuation metrics imply moderate growth expectations. Earnings call highlights provide a favorable outlook, though challenges in retention and market pressures remain.

Positive Factors

Financial Performance

Docebo's revenue and adjusted EBITDA exceeded expectations, showcasing strong financial performance.

Growth Strategy

New products like AI Authoring and a new pricing strategy are anticipated to further bolster growth.

Product Innovation

The groundbreaking Harmony platform, designed to streamline content creation & administration, is set for phased rollout, indicating future growth potential.

Negative Factors

Currency Impact

The company's fiscal guidance appears below consensus due to a 1.5% FX headwind.

Earnings Guidance

Q4 ARR and 2025 guidance still came in below expectations as a result of customer downsizing.

Market Sentiment

Guidance looking for 13-14% subscription revenue growth in constant currency in 2025 seems like a bit of a head fake.

Docebo Business Overview & Revenue Model

Company Description

Docebo Inc. (DCBO) is a global leader in the e-learning industry, specializing in delivering a highly versatile and scalable Learning Management System (LMS) designed for enterprises of all sizes. Operating primarily within the technology and software sectors, Docebo's platform supports a wide range of learning and development activities, including employee training, customer training, and partner training, enhancing knowledge retention and organizational performance. The company's cloud-based solutions are customizable and integrate seamlessly with existing enterprise software, offering clients a comprehensive suite of features such as content creation, social learning, and advanced reporting capabilities.

How the Company Makes Money

Docebo generates revenue primarily through subscription-based models, where clients pay on a recurring basis to access their cloud-based learning management system. The company offers various pricing tiers based on the number of active users and specific features required, allowing scalability and flexibility for organizations of different sizes. Additionally, Docebo monetizes through professional services, providing implementation, training, and support services to ensure its clients can maximize the value of their LMS. Strategic partnerships with global technology firms and resellers also broaden the company's market reach and contribute to its revenue streams. As a SaaS provider, Docebo benefits from predictable revenue flows and the opportunity for upselling as clients expand their use of the platform.

Docebo Financial Statement Overview

Summary

Docebo demonstrates strong financial health, highlighted by a 20% revenue increase and robust profitability with a net profit margin up to 12%. The balance sheet shows low leverage and strong equity usage, while cash flow generation is solid with an 83% free cash flow growth rate. The asset base is relatively modest but overall financial performance is strong.

Income Statement

Docebo has shown strong revenue growth, with a 20% increase from last year. The gross profit margin is robust at 81%, and there is a significant improvement in profitability, with the net profit margin rising to 12% from 2% the previous year. EBIT and EBITDA margins have also improved, indicating enhanced operational efficiency.

Balance Sheet

The balance sheet is stable, with a low debt-to-equity ratio of 0.03, indicating minimal leverage. The equity ratio stands at 30%, suggesting a healthy portion of assets funded by equity. Return on equity is strong at 46%, reflecting effective use of shareholder funds. However, the overall asset size is relatively modest for the industry.

Cash Flow

Cash flow generation is robust, with a free cash flow growth rate of 83%. The operating cash flow to net income ratio is healthy at 1.09, indicating efficient cash generation relative to net income. Free cash flow to net income is also strong at 1.05, highlighting good cash flow sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
216.93M	180.84M	142.91M	104.24M	62.92M
	Gross Profit
175.64M	146.34M	114.73M	83.46M	51.38M
	EBIT
21.29M	-3.71M	-6.93M	-12.98M	-5.49M
	EBITDA
27.28M	8.28M	-15.71M	-10.92M	-6.04M
	Net Income Common Stockholders
26.74M	2.84M	7.02M	-13.60M	-7.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
92.58M	72.03M	216.29M	215.32M	219.66M
	Total Assets
190.71M	158.38M	283.67M	268.12M	254.61M
	Total Debt
1.50M	2.11M	3.07M	4.00M	3.82M
	Net Debt
-91.05M	-69.84M	-213.23M	-211.32M	-215.84M
	Total Liabilities
132.95M	107.65M	91.46M	77.47M	53.94M
	Stockholders Equity
57.76M	50.72M	192.21M	190.66M	200.67M
Cash Flow		Free Cash Flow
28.00M	15.33M	1.21M	-4.40M	3.71M
	Operating Cash Flow
29.25M	15.96M	2.29M	-3.25M	5.16M
	Investing Cash Flow
-1.50M	-9.52M	-2.15M	-1.15M	-3.90M
	Financing Cash Flow
-6.84M	-151.00M	1.58M	422.00K	172.27M

Docebo Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 43.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DCBO, the sentiment is Neutral. The current price of 43.8 is above the 20-day moving average (MA) of 41.69, below the 50-day MA of 43.99, and below the 200-day MA of 57.25, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 53.57 is Neutral, neither overbought nor oversold. The STOCH value of 75.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DCBO.

Docebo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCBO	71 Outperform	$1.25B	33.94	49.29%	―	21.78%	868.71%
SYZ	68 Neutral	C$205.83M	―	-1.93%	0.45%	-13.99%	-421.95%
Sector *	60 Neutral	$10.94B	10.58	-7.08%	2.98%	7.52%	-12.04%
KNR	58 Neutral	C$104.58M	11.79	138.78%	―	-41.96%	―
VQS	45 Neutral	C$8.90M	―	-227.19%	―	6.80%	62.78%

Docebo Corporate Events

Docebo Reports Strong Q4 and Fiscal Year 2024 Results, Driven by New Product Launches

Docebo reported strong financial results for the fourth quarter and fiscal year 2024, with revenue and profitability exceeding expectations. The successful launch of new products like AI Authoring, Advanced Analytics, and Communities has bolstered its enterprise pipeline, indicating robust growth prospects. The company achieved a 16% increase in total revenue for Q4 and a 20% increase for the fiscal year, alongside significant improvements in net income and adjusted EBITDA, highlighting its solid financial performance and strategic positioning in the market.