Shares of Docebo Inc. (TSX:DCBO) have climbed 23% year to date
SmallCapPower | May 14, 2020: Docebo Inc. (TSX:DCBO) shares jumped 21% to close at $22.50 on Tuesday after the company reported its first-quarter 2020 financial results. Revenue for the period came in at US$13.5 million, an increase of 56.7% from the same period last year, with 56% recurring revenue growth.
Following its Q1 results, Docebo CEO and Founder Claudio Erba stated, “as the COVID-19 situation has unfolded we have seen higher utilization and interest in our platform.”
Docebo is a cloud-based vendor of Enterprise Software as a Service (SaaS) solutions, particularly in the area of employee and customer training. The Company began trading last October, after raising C$67.5M from an initial public offering and seems well positioned to capitalize on the rapid growth of the global training market.
Docebo was founded in 2005, and the Company builds software solutions in the cloud to orchestrate corporate learning. Latin for “I will teach,” Docebo helps companies develop their most important resource: people. Organizations are under pressure to find great people, train them, and be constantly upgrading their skills in a changing business environment.
Some of Docebo’s top corporate clients include Uber Technologies, Netflix, Starbucks, L’Oreal, Heineken, and Capital One. The enterprise software space is highly competitive, however learning management and training is an often-overlooked function of many large-cap enterprise software solutions. As such, the space is ready to be disrupted by companies such as Docebo.
The global learning industry is estimated to be US$400B globally, based on estimates by one of Docebo’s competitors, Cornerstone OnDemand. Additionally, Docebo plans to go into training customers, partners, and distributors, which could double its addressable market. Docebo anticipates targeting the tech industry, particularly apps, which operate with small and efficient teams and may have 1,000 customers/contract workers that need training (such as Uber, Foodora, and Skip the Dishes).
Docebo has had solid revenue growth over the past three years and anticipates becoming EBITDA positive by the end of 2021. Shares of DCBO have gained 23% year to date to its current price of $20.83.