Docebo (DCBO) AI Stock Analysis

• Market Cap: $1.10B
• Dividend Yield: N/A
• Average Volume (3M): 102.94K
• Price to Earnings (P/E): 35.0
• Beta (1Y): 0.93
• Revenue Growth: 20.52%
• EPS Growth: 246.69%
• Country: CA
• Employees: 991
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.38
• Shares Outstanding: 29,633,183
• 10 Day Avg. Volume: 98,823
• 30 Day Avg. Volume: 102,937
• PEG Ratio: 0.67
• Price to Book (P/B): 15.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $52.52
• Price Target Upside: 42.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 67 Neutral
• Price Target: C$40.00 ▲(8.20%Upside)

Docebo is exhibiting strong financial performance and strategic growth, particularly in AI and government markets. However, the technical analysis indicates bearish trends, and challenges from leadership changes and macroeconomic cautiousness could impact growth. Valuation metrics suggest moderate growth expectations.

Positive Factors

AI and Efficiency

GenAI efficiencies could lead to higher long-term benefits for the company.

Government Sector Opportunities

FedRAMP ATO status could allow Docebo to quickly penetrate the government sector.

Product Innovation

Product innovation and monetization opportunities create potential for growth.

Negative Factors

Earnings Performance

The investment thesis following a disappointing Q1 update where growth and margins were lowered.

Future Growth Impact

A large customer intends to downsize in 2026, impacting future growth.

Growth Challenges

Consistent deceleration in trends and customer downsizing even before potential new macro headwinds.

Docebo Business Overview & Revenue Model

Company Description

Docebo Inc. provides a cloud-based learning management system to train internal and external workforces, partners, and customers in North America, Europe, and the Asia-Pacific region. Its platform helps customers to centralize learning materials from peer enterprises and learners into one learning management system (LMS) to expedite and enrich the learning process, increase productivity, and grow teams uniformly. The company's learning platform includes Docebo Learn LMS, a cloud-based learning platform; Docebo Shape, an AI-based learning content creation tool; Docebo Content that allows to unlock the industry's best-learning content; Docebo Learning Impact, a learning measurement tool; Docebo Learning Analytics that allows learning administrators to prove their learning programs are powering their business, as well as connecting learning data to business results; Docebo Connect that connects Docebo to custom tech stack and making integrations; and Docebo Flow that allows businesses to directly inject learning into the flow of work. It also provides Docebo for Salesforce, a native integration that leverages Salesforce's application programming interface and technology architecture to produce a learning experience; and Docebo Embed (OEM) that allows original equipment manufacturers to embed and re-sell Docebo as a part of their software. In addition, the company offers Docebo Mobile App Publisher product that allows companies to create and publish own branded version of Docebo Go.Learn mobile learning applications; Docebo Extended Enterprise that breeds customer education, partner enablement, and retention; and Docebo Discover, Coach & Share that enhances the learning experience to create a culture of social learning. It serves customers in the technology, media, manufacturing, consulting and professional services, and retail industries. The company was formerly known as Docebo Canada, Inc. Docebo Inc. founded in 2005 and is based in Toronto, Canada.

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: Negative
• Last Price: 36.97
• 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 Negative. The current price of 36.97 is above the 20-day moving average (MA) of 36.87, below the 50-day MA of 40.06, and below the 200-day MA of 55.33, indicating a neutral trend. The MACD of -1.10 indicates Negative momentum. The RSI at 40.70 is Neutral, neither overbought nor oversold. The STOCH value of 57.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DCBO.

Docebo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCBO	67 Neutral	$1.10B	34.99	41.12%	―	20.52%	246.69%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%
OTEX		$7.22B	11.40	15.87%	3.71%	―	―
DSGX		$8.66B	61.72	10.66%	―	―	―
KXS	73 Outperform	C$5.56B	402.42	2.32%	―	15.14%	-31.45%
LSPD	63 Neutral	C$2.16B	―	-33.64%	―	23.95%	39.68%
THNC	62 Neutral	C$170.66M	110.86	2.02%	―	16.58%	―

Docebo Corporate Events

Docebo Surpasses Q1 2025 Financial Expectations with Strategic Growth

Docebo Inc. reported strong financial results for the first quarter of 2025, surpassing guidance in both revenue and profitability. The company achieved a total revenue of $57.3 million, marking an 11% increase from the previous year, with subscription revenue accounting for 95% of the total. Notable customer wins included a North American software platform provider and a major luxury hotel chain, highlighting Docebo’s ability to deliver personalized learning experiences. The company’s continued investment in AI and strategic partnerships is expected to drive long-term value and strengthen its market position.