Review of Docebo Inc.

JAN 04, 2024 - It has recently become profitable, and currently has thin profit margins, although we expect as the company scales up its ACV and customer base, its operating leverage will boost its net profit margins. It trades at a premium valuation, but in the competitive LMS landscape, it has demonstrated that it is a growing force, and we feel that this valuation can see contraction over the years as sales and earnings grow faster than its share price. Overall, DCBO has strong fundamentals and is underpinned by a growing SaaS platform which enables its customers to obtain easy access to training materials and tracking and reporting capabilities. We are initiating coverage at a ‘B’ rating.