Docebo Inc: Under-the-Radar Stock Up 54% Over Last 3 Months; Just Getting Started

Docebo Stock’s Outlook Is Bullish on Record Q2 Results

Shares of Docebo Inc (NASDAQ:DCBO) have been on a tear since late March, soaring by approximately 110%. Docebo stock is also up by roughly 25% since August 12, when the company reported strong second-quarter results.

Despite its triple-digit gains, DCBO stock still has lots of room to run in the near and long terms.

Docebo, which is Latin for “I will teach,” pretty much sums up what the company does. It provides software as a service (SaaS) learning-management technology.

The company, which only went public in December 2020, recently reported record quarterly revenue and annual recurring revenue. Management said the company’s economic tailwinds “are both consistent and sustainable.” (Source: “Docebo Reports Second Quarter 2021 Results,” Docebo Inc, August 12, 2021.)


You can’t ask for much more than that during a wobbly bull run.

Chart courtesy of

DCBO Stock Overview

Headquartered in Canada, Docebo Inc provides a cloud-based learning management system (LMS) that helps train internal and external partners and customers in North America, Europe, and the Asia-Pacific region.

Its software platform helps centralize educational materials and makes the learning process more fun and productive. (Source: “Investor Presentation: August 2021,” Docebo Inc, last accessed August 30, 2021.)

Some of the company’s products are:

  • “Shape,” an artificial intelligence platform for creating online learning programs
  • “Content,” which provides “high-quality, off-the-shelf and mobile-ready learning content”
  • “Learn LMS,” the company’s flagship LMS
  • “Learning Impact,” which measures the effectiveness of educational programs
  • “Learning Analytics,” which connects learning data to business results

(Source: “Products,” Docebo Inc, last accessed August 30, 2021.)

Since being founded in 2005, Docebo has built an enviable client list of close to 2,500 customers. A few of the company’s customers are Walmart Inc (NYSE:WMT), Hewlett Packard Enterprise Co (NYSE:HPE), Denny’s Corp (NASDAQ:DENN), and Lululemon Athletica Inc (NASDAQ:LULU).

Record Q2 Revenue & Annual Recurring Revenue

For the second quarter ended June 30, Docebo announced that its revenue increased by 76% year-over-year to $25.6 million. Subscription revenue of $23.6 million, which accounted for 92% of its total revenue, was up by 76% year-over-year. (Source: Docebo Inc, August 12, 2021, op. cit.)

The company’s gross profit was $20.5 million, or 80% of its revenue, compared to $11.6 million, or 80.5% of its revenue, in the same period of last year.

Docebo reported a second-quarter net loss of $7.2 million, or $0.22 per share, compared to a net loss of $3.5 million, or $0.12 per share, in the comparative period in the prior year.

Its annual recurring revenue (ARR) as of June 30 went up by 64% year-over-year from $57.0 million to $93.4 million.

Docebo increased its customer base from 1,923 on June 30, 2020 to 4,458 on June 30, 2021.

The company also reported strong growth in its average contract value, which is calculated as total ARR divided by the number of active customers, increasing from $29,616 to $37,569.

Claudio Erba, CEO and founder, commented, “Growth in the second quarter continued to accelerate as we added $10 million in net ARR from the first quarter resulting in our second consecutive quarter of ARR growth in excess of 60% and revenue growth in excess of 70%.” (Source: Ibid.)

Erba noted that, while the traditional LMS market has been focused on human resources skills training and compliance, Docebo’s customers use its LMS technology as a productivity enablement tool to address learning challenges, both internally and externally.

“This dynamic is not pandemic driven, rather it’s [return on investment] driven, and that is why we believe the tailwinds we are seeing are both consistent and sustainable,” said Erba. (Source: Ibid.)

Analyst Take

Docebo Inc is a great LMS company, but most people aren’t familiar with it because it only recently went public. But it has been making waves since then.

The company has been reporting strong financial results, inking contracts with tier-one customers, and launching new products. Those are some of the reasons the company’s revenue has been growing in excess of two times the LMS industry. Moreover, as mentioned earlier, management believes that this trajectory is sustainable.

That bodes well for Docebo stock investors.