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Thinkific Labs (TSE:THNC)
TSX:THNC
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Thinkific Labs
(TSX:THNC)
59Neutral
Positive Factors
Advanced Payment Features
THNC will be launching advanced payments features, such as invoicing and group orders, which it believes may help drive better Commerce adoption by Plus customers.
Commerce Expansion
Commerce (payments) penetration expanded to 52% of GMV, up from 47% in Q3/24.
Profitability Potential
There is limited downside to the share price given THNC's depressed EV/sales valuation and the fact that THNC should now be able to sustainably generate positive FCF.
Negative Factors
Guidance and Strategic Transition
Q1/25 guidance was below consensus, reflecting a potential short-term impact due to the company's strategic transition.
Subscription Revenue Growth
A more constructive view requires seeing stronger growth in Thinkific Labs' subscription revenue.
Thinkific Labs (THNC) vs. S&P 500 (SPY)
Market Cap
C$174.96M
Dividend YieldN/A
Average Volume (3M)24.84K
Price to Earnings (P/E)219.6
Beta (1Y)0.82
Revenue Growth15.08%
EPS Growth97.53%
CountryCA
Employees275
SectorTechnology
Sector Strength43
IndustrySoftware - Application
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding23,677,485
10 Day Avg. Volume36,655
30 Day Avg. Volume24,835
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.64
Price to Cash Flow (P/CF)8.60
P/FCF Ratio8.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.50Price Target Upside37.80% Upside
Rating ConsensusHold
Number of Analyst Covering1
Thinkific Labs Business Overview & Revenue Model
Company DescriptionThinkific Labs (THNC) is a technology company that operates within the e-learning and online education sector. The company provides a comprehensive platform that enables entrepreneurs, educators, and businesses to create, market, and sell their own customized online courses. Thinkific's core products and services include course creation tools, website hosting, and integrated marketing features, all designed to support seamless online learning experiences.
How the Company Makes MoneyThinkific Labs makes money primarily through a subscription-based revenue model. The company offers tiered pricing plans that provide varying levels of access to its platform features, catering to individual educators and large enterprises alike. Key revenue streams include monthly and annual subscription fees paid by users who wish to utilize Thinkific's platform to build and sell online courses. Additionally, Thinkific may generate revenue through partnerships with educational institutions and other organizations that seek to leverage its technology for e-learning purposes. However, specific details about such partnerships or additional revenue sources are not publicly disclosed.
Thinkific Labs Financial Statement Overview
Summary
Thinkific Labs displays strong revenue growth and improving cash flow metrics, indicating positive future potential. However, persistent net losses and high operational costs affect profitability. The balance sheet is stable with low leverage, but declining assets and equity suggest challenges in capital management.Income Statement
Thinkific Labs has shown strong revenue growth over recent years, increasing from $21 million in 2020 to $66 million in 2024, indicating a positive growth trajectory. However, the company consistently reports negative EBIT and net income, which impacts profitability. Gross profit margins are healthy at approximately 75%, but significant operating losses suggest high operational costs.60
Neutral
Balance Sheet
The balance sheet reflects a solid equity base with stockholders' equity at $41.6 million in 2024. The debt-to-equity ratio is low, demonstrating conservative leverage. However, the decline in total assets and equity from 2023 to 2024 suggests potential challenges in asset management and capital retention.55
Neutral
Cash Flow
Thinkific Labs has improved its free cash flow position, turning from negative in 2023 to a positive $6.7 million in 2024, highlighting strong cash flow management. Operating cash flow has also turned positive, although the company previously faced cash flow deficits. This improvement suggests better operational efficiency and cost control.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 45.09M | 66.94M | 59.05M | 51.48M | 38.12M | 21.07M | Gross Profit |
| 33.86M | 50.31M | 44.56M | 39.11M | 29.21M | 16.62M | EBIT |
| -36.65M | -2.44M | -13.54M | -30.94M | -24.31M | -1.47M | EBITDA |
| -35.80M | -1.06M | -9.26M | -30.44M | -23.63M | -1.19M | Net Income Common Stockholders |
| -45.65M | -237.00K | -9.78M | -41.90M | -28.44M | -1.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 87.31M | 49.49M | 86.61M | 93.85M | 126.05M | 9.07M | Total Assets |
| 97.04M | 61.37M | 97.79M | 102.97M | 132.40M | 12.94M | Total Debt |
| 875.00K | 1.77M | 1.03M | 1.96M | 875.26K | 1.36M | Net Debt |
| -86.44M | -47.72M | -85.58M | -91.89M | -125.18M | -7.70M | Total Liabilities |
| 18.20M | 19.77M | 15.85M | 15.12M | 10.79M | 7.63M | Stockholders Equity |
| 78.84M | 41.59M | 81.94M | 87.85M | 121.61M | 5.31M |
| Cash Flow | Free Cash Flow | ||||
| -31.95M | 6.75M | -5.44M | -27.11M | -18.91M | 2.34M | Operating Cash Flow |
| -30.32M | 6.99M | -5.43M | -25.85M | -18.26M | 2.63M | Investing Cash Flow |
| -1.63M | -166.00K | 53.37K | -1.26M | -655.16K | -289.80K | Financing Cash Flow |
| -299.39K | -42.60M | -2.41M | -241.18K | 138.26M | 3.15M |
Thinkific Labs Technical Analysis
Negative
2.54
Price Trends
3.04
Negative
3.03
Negative
3.07
Negative
Market Momentum
-0.13
Positive
36.10
Neutral
17.45
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:THNC, the sentiment is Negative. The current price of 2.54 is below the 20-day moving average (MA) of 2.78, below the 50-day MA of 3.04, and below the 200-day MA of 3.07, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 36.10 is Neutral, neither overbought nor oversold. The STOCH value of 17.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:THNC.
Thinkific Labs Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $150.04B | 50.69 | 19.58% | ― | 27.85% | 1400.97% | |
70 Outperform | C$1.24B | 32.34 | 49.29% | ― | 21.78% | 868.71% | |
68 Neutral | C$4.59B | 157.81 | -0.10% | ― | 14.85% | -105.25% | |
59 Neutral | C$174.96M | 219.59 | -0.39% | ― | 15.08% | 97.53% | |
59 Neutral | C$1.77B | ― | -5.18% | ― | 23.95% | 39.68% | |
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% | |
50 Neutral | $2.64B | ― | -7.59% | ― | -26.72% | 77.64% |
* Technology Sector Average
Performance Comparison
TSE:THNC
Thinkific Labs
2.54
-1.31
-34.03%
TSE:BB
BlackBerry
4.28
0.37
9.46%
TSE:SHOP
Shopify
109.42
8.42
8.34%
TSE:DCBO
Docebo
39.35
-25.63
-39.44%
TSE:KXS
Kinaxis Inc
158.26
6.37
4.19%
TSE:LSPD
Lightspeed POS Inc
11.18
-7.99
-41.68%
Thinkific Labs Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -24.18% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in key areas such as Thinkific Plus and Commerce adoption. While Self Serve ARR growth was flat, the company showed positive financial performance with increased revenue and EBITDA. Strategic investments and new board members indicate a commitment to future growth.Highlights
Growth in Thinkific Plus and Self Serve
Thinkific Plus revenue growth accelerated to 32% with record new customer bookings. Self Serve revenue grew by 10% year-over-year.
Increase in Thinkific Commerce Adoption
Commerce revenue was up 88% from the prior year, with GMV penetration increasing to 47% from 40% in the prior quarter.
Improved ARPU and Revenue
ARPU increased by 13% to $165 per month, and Q3 2024 revenue was $17.2 million, up 15% from the prior year.
Positive EBITDA and Cash Flow
Adjusted EBITDA was $930,000, with positive cash flow from operations of $2.5 million.
Strategic Investments and Board Additions
The company completed a headcount increase in the Plus sales team and added new members to the board of directors.
Lowlights
Flat Self Serve ARR
Self Serve ARR was relatively flat quarter-over-quarter, indicating stabilization rather than growth.
Minor Challenges with Gateway Fee Introduction
The introduction of the gateway fee did not result in significant churn, but it caused some minor issues.
Company Guidance
During Thinkific's Q3 2024 earnings call, the company provided a positive outlook, highlighting several key metrics. Revenue for Q3 reached $17.2 million, marking a 15% increase from the previous year, driven by significant growth in both Thinkific Plus and Self Serve segments. The company achieved a penetration rate of 47% in Thinkific Commerce, up from 40% the prior quarter, while Plus revenue grew by 32%, aided by record new customer bookings. Gross payments volume (GPV) surged to $52.4 million, a 50% year-over-year increase. Additionally, the company maintained an adjusted EBITDA margin of 5.4% and reported a solid cash position of $50 million. Looking ahead, Thinkific projected Q4 revenue between $17.6 million and $17.9 million, reflecting a continuation of growth trends.Thinkific Labs Corporate Events
Business Operations and StrategyFinancial Disclosures
Thinkific Reports Strong 2024 Financial Results and Strategic Growth
Positive
Mar 5, 2025
Thinkific Labs Inc. announced its financial results for the fourth quarter and full year of 2024, highlighting a 13% year-over-year increase in revenue to $17.6 million and a significant improvement in cash flow from operations, which grew to $7 million from a loss of $5.4 million in 2023. The company has transitioned from cost-cutting to investing in profitable growth, with a focus on product innovation and exceptional service, earning recognition in G2’s 2025 Best Software Awards. This strategic shift positions Thinkific for continued growth alongside its customers, supported by a strengthened senior management team.
Business Operations and Strategy
Thinkific Earns Top Honors in G2’s 2025 Best Software Awards
Positive
Feb 19, 2025
Thinkific has been recognized among the world’s top software companies in G2’s 2025 Best Software Awards, excelling in categories such as ‘Best Customer Service Software Products’, ‘Best Education Software Products’, and ‘Best Software Companies in Canada’. This recognition reflects Thinkific’s strong industry positioning and commitment to providing excellent tools and support for customer success, further solidifying its reputation in the cloud-based educational software sector.
Thinkific to Announce 2024 Financial Results on March 5, 2025
Jan 16, 2025
Thinkific Labs Inc. has announced that it will release its financial results for the fourth quarter and full year of 2024 on March 5, 2025. The announcement will be followed by a conference call and webcast where management will discuss the company’s financial and operational performance. This event is of significant interest to stakeholders as it will provide insights into the company’s financial health and business trajectory.
Thinkific to Engage Investors at Needham Growth Conference
Jan 6, 2025
Thinkific Labs Inc. announced its participation in the 27th Annual Needham Growth Conference, where Founder and CEO Greg Smith, alongside CFO Corinne Hua, will engage in one-on-one meetings with investors. This participation highlights Thinkific’s ongoing efforts to strengthen investor relations and potentially explore new growth opportunities, reflecting its strategic positioning in the digital learning industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.