Skip to main content
No. of Recommendations: 19
While I've been following Saul's board since last February, I haven't posted much but have benefited greatly from all the smart and generous investors on this board. 

Shortly after joining this group I scoured through everything in the Knowledge Base and read every, single post creating 'my list'. Then being a proud Canuck, I created an additional list of great Canadian companies that (more or less) fit Saul's criteria. 
 
I already owned SHOP. It is currently my largest holding. I first added them to my portfolio in 2016 when they piqued my interest after winning Marketing Magazine's 2015 Tech Player of the Year and shortly thereafter were recommended by MF. Since then, I've been holding and adding on the way up (and regrettably selling some too).

I added Lightspeed in mid-March when the stock tanked due to Covid and it continues to be a small 3% position. It's up over 211% since I added it. The other company on my list was Docebo. Unfortunately, I did not pull the trigger on it and have watched the stock price move from about $11 CDN in mid-March to it's current price of over $63 CDN. Docebo has been recommended by several analysts on the MF Canada website. I have no idea whether the paid service has ever recommended it.

Previously, Docebo was only traded on the TSX. But as of today, it now also trades on the Nasdaq so I thought it was a perfect time to introduce Docebo (couldn't find any posts here) to the board.

This is my first kick at putting an 'analysis' together based on Saul's criteria. I tried to use similar formats to what I seen on this board before but may have made some errors or missed some important info so bear with me. ;) So here goes:

DOCEBO
-a cloud based Saas Learning Management System (LMS) powered by AI	
-founder led by Claudio Erba; Glassdoor CEO Approval 96%; Glassdoor Overall Rating 4.2		
-went public on the TSX (Toronto Stock Exchange) in October 2019 and was trading at $13.61 CDN on that day								
Current clients include: Walmart, AWS, Docusign, Bose, Heineken, Uber, Open Table, Thomson Reuters								
-74% of shares held by insiders according to Yahoo								
-$1.4B US market cap (Yahoo) although not sure how accurate this is due next point								
-started trading on Nasdaq December 3 under symbol DCBO, with a marketed public offering  From their press release: "DCBO today announced the pricing of its previously announced marketed public offering of 3,000,000 common shares at a price to the public of US$48.00 per share in the United States and Canada, for aggregate gross proceeds to Docebo of US$144,000,000. The size of the offering has been increased from the previously announced US$125,000,000."
								
2020 Q3:
- 2,025 customers, an increase from 1,632 customers at the end of September 30, 2019								
-Average contract value, calculated as total Annual Recurring Revenue divided by the number of active customers, increased from $25,551 to $31,901								

FINANCIALS

	Revenue (Thousands US$)		
      2018	2019	   2020
Q1 	       $8,636 	 $13,530 
Q2 	       $9,923 	 $14,535 
Q3   $6,892    $10,587 	 $16,096 
Q4   $8,049    $12,298 	

	                  2019		           2020			
	                Q3	Q4	   Q1	   Q2	   Q3
Revenue Growth (YOY)    54%	53%	   57%	   47%	   52%	
% ARR Growth	        51%	58%	   56%	   55%	   55%	
Gross Profit Margin     80%	81.4%	   79.0%   80%	   82%	
Net Profit/Loss ($M)   ($3.7)	($3.3)	   $0.70  ($3.5)  ($1.2)	

-2019 Total Revenues $41.4 Million US; YOY Revenue Growth is 53%
-2019 Net Dollar Retention Rate	>100 (that's a specific as they get)

I'm considering finally pulling the trigger, perhaps just a starter position...

Would appreciate thoughts from those who are better with the financials than me and/or have looked at Docebo.

Cheers,
Rita
Print the post Back To Top
No. of Recommendations: 0
Argh! Apologies on the formatting. I did not look like this in the preview and I can't figure out how to fix it. Any suggestions?
Print the post Back To Top
No. of Recommendations: 23
Reposting message from rsferrari with (hopefully) proper formatting:

While I've been following Saul's board since last February, I haven't posted much but have benefited greatly from all the smart and generous investors on this board.

Shortly after joining this group I scoured through everything in the Knowledge Base and read every, single post creating 'my list'. Then being a proud Canuck, I created an additional list of great Canadian companies that (more or less) fit Saul's criteria.

I already owned SHOP. It is currently my largest holding. I first added them to my portfolio in 2016 when they piqued my interest after winning Marketing Magazine's 2015 Tech Player of the Year and shortly thereafter were recommended by MF. Since then, I've been holding and adding on the way up (and regrettably selling some too).

I added Lightspeed in mid-March when the stock tanked due to Covid and it continues to be a small 3% position. It's up over 211% since I added it. The other company on my list was Docebo. Unfortunately, I did not pull the trigger on it and have watched the stock price move from about $11 CDN in mid-March to it's current price of over $63 CDN. Docebo has been recommended by several analysts on the MF Canada website. I have no idea whether the paid service has ever recommended it.

Previously, Docebo was only traded on the TSX. But as of today, it now also trades on the Nasdaq so I thought it was a perfect time to introduce Docebo (couldn't find any posts here) to the board.

This is my first kick at putting an 'analysis' together based on Saul's criteria. I tried to use similar formats to what I seen on this board before but may have made some errors or missed some important info so bear with me. ;) So here goes:

DOCEBO
-a cloud based Saas Learning Management System (LMS) powered by AI
-founder led by Claudio Erba; Glassdoor CEO Approval 96%; Glassdoor Overall Rating 4.2
-went public on the TSX (Toronto Stock Exchange) in October 2019 and was trading at $13.61 CDN on that day
Current clients include: Walmart, AWS, Docusign, Bose, Heineken, Uber, Open Table, Thomson Reuters
-74% of shares held by insiders according to Yahoo
-$1.4B US market cap (Yahoo) although not sure how accurate this is due next point
-started trading on Nasdaq December 3 under symbol DCBO, with a marketed public offering From their press release: "DCBO today announced the pricing of its previously announced marketed public offering of 3,000,000 common shares at a price to the public of US$48.00 per share in the United States and Canada, for aggregate gross proceeds to Docebo of US$144,000,000. The size of the offering has been increased from the previously announced US$125,000,000."

2020 Q3:
- 2,025 customers, an increase from 1,632 customers at the end of September 30, 2019
-Average contract value, calculated as total Annual Recurring Revenue divided by the number of active customers, increased from $25,551 to $31,901

FINANCIALS

Revenue (Thousands US$)
2018 2019 2020
Q1 $8,636 $13,530
Q2 $9,923 $14,535
Q3 $6,892 $10,587 $16,096
Q4 $8,049 $12,298

2019 2020
Q3 Q4 Q1 Q2 Q3
Revenue Growth (YOY) 54% 53% 57% 47% 52%
% ARR Growth 51% 58% 56% 55% 55%
Gross Profit Margin 80% 81.4% 79.0% 80% 82%
Net Profit/Loss ($M) ($3.7) ($3.3) $0.70 ($3.5) ($1.2)

-2019 Total Revenues $41.4 Million US; YOY Revenue Growth is 53%
-2019 Net Dollar Retention Rate >100 (that's a specific as they get)

I'm considering finally pulling the trigger, perhaps just a starter position...

Would appreciate thoughts from those who are better with the financials than me and/or have looked at Docebo.

Cheers,
Rita
Print the post Back To Top
No. of Recommendations: 7
TSX:DCBO
Business Profile
Docebo Inc. provides a cloud-based SaaS learning platform to train 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 to expedite and enrich the learning process, increase productivity, and grow teams uniformly. The company’s learning platform includes Docebo Learn, a foundational module that enables learning administrators to centralize, organize, and distribute learning content, track certifications, and measure results with customer analytics; Docebo Discover, Coach & Share that provides personalized curated content and access to social learning by sharing of knowledge; and Docebo Extended Enterprise that allows businesses to manage various portals for audiences. 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), which eliminates disjointed learner experiences, long development cycles, and ineffective partner models by allowing 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 Virtual Coach, an AI-powered assistant; Docebo Mobile Pages that enable administrators to develop mobile learning environments; and Docebo Discover that curate personalized learning content based on the skills that learners want to develop for customers. It serves customers in the technology, media and entertainment, manufacturing, consumer products, financial services, and retail industries. The company was formerly known as Docebo Canada, Inc. Docebo Inc. founded in 2005 and is headquartered in Toronto, Canada

After a little research I am posting their profile and
after reading thru it, I have no idea of what they do.
I need help putting their business in one or two sentences. Is it people learning or machine learning it
just sounds very technical and complicated as described. I try to avoid investing in companies I can't define what they actually contribute to the economy or making things easier to do or a better way to do something.
Print the post Back To Top
No. of Recommendations: 12
I try to avoid investing in companies I can't define what they actually contribute to the economy or making things easier to do or a better way to do something.

Likewise. The "can I explain this well enough to a six-year-old form them to understand it" test. While useful, I would have a harder time explaining several other companies I own shares in than this one.

After a little research I am posting their profile and after reading thru it, I have no idea of what they do. I need help putting their business in one or two sentences. Is it people learning or machine learning it

No problem. It's the first one. It could be that you're not in a job that has training or continuing education requirements, or haven't started a new job with a large company in the last, say, 10 years. Online training is well-suited to important companywide employee ... um... let's call it "knowledge maintenance". I worked for 16 years for a very big company that maintained this system in-house. Here are three of the best examples I can think of right now:

1. How to document your time worked using the company's customized program, so you can get paid
2. How to avoid creating a hostile environment for any co-worker based on race, gender, etc., so you don't get fired
3. How to work safely, so you don't get injured

Many others would be industry-specific ones that end with "so we don't get sued" (actually that's what #2 above is also about). So, based on the description you provided, it's the first two sentences. Just think of:

"Docebo Inc. provides a cloud-based SaaS learning platform to train 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 to expedite and enrich the learning process, increase productivity, and grow teams uniformly."
as
"Docebo provides employee-training software." The rest is either less-important details or maybe even marketing fluff.

-n8
Print the post Back To Top
No. of Recommendations: 0
I did not look like this in the preview and I can't figure out how to fix it. Any suggestions?

Surround only the fixed font area with < pre> and < /pre>.

Remove the spaces I added within the brackets, but include the angle brackets.


🆁🅶🅱
post tenebras lux
For not in my bow do I trust, nor can my sword save me.
Print the post Back To Top
No. of Recommendations: 3
This space is getting crowded

Sumtotal
Udemy
Pluralsight
Coursera

Workforce providers like Workday may get into it as well.

The winner will be one that has most choice of most users causing a network effect.
Print the post Back To Top
No. of Recommendations: 10
This is absolutely a crowded space. I work in the HR Technology world and went through a learning management system (LMS) RFP a couple of years ago. I became familiar with a lot of the players. An LMS system is used primarily for:

a) Employees to complete mandatory trainings (i.e. compliance training, sexual harassment training)
b) Employees to "self-learn" in subjects they are interested in (i.e. an excel training course)
c) 3rd party contractors to view/complete relevant trainings provided by the company

Docebo had an impressive sales pitch and lower costs so we went with them. However... the good vibes stopped there. The system was clunky for users and even clunkier for admins. The sales team overpromised and underdelivered. Within a year we were trying to find a way out of the contract.

Ultimately, any LMS system needs to be integrated with an organization's Human Capital Management (HCM) system. That's how the LMS knows who to offer training and when. Workday, who is a leader in the HCM space with over 40% of the Fortune 500 as a client, had no easy way to integrate with Docebo. I suspect since Workday is building out their own LMS, this could be by design. We chose not to go with Workday as our LMS provider because it was a "greener" product at the time and they were not able to satisfy our need to train non-employees (3rd party contractors). However, they have since built out this functionality.

The key point here is that it makes a lot of sense for a company's HCM and LMS to be in a single system, which is why I see Workday being the ultimate winner in this space. Perhaps Docebo might work for smaller companies.

I know this story is anecdotal but wanted to offer my two cents.

-DGordon
Print the post Back To Top
No. of Recommendations: 1
https://www.docebo.com/docebo-lms-integrations/

Workday is listed as integration on Docebo website. Additionally if you look at reviews online, they consistently rank Docebo as the best player in the LMS space.
Print the post Back To Top
No. of Recommendations: 1
One point of clarification, I was referring to a 40% portfolio drop. I was not saying to stay the course if business conditions change. I did say know when to buy and sell your investments, which is consistent with what most of us do here.
Print the post Back To Top
No. of Recommendations: 0
Sorry. Wrong thread
Print the post Back To Top
No. of Recommendations: 9
Preliminary financial results released today:

TORONTO--(BUSINESS WIRE)-- Docebo Inc. ("Docebo" or the "Company") (Nasdaq: DCBO; TSX: DCBO), a leading AI-powered learning platform, today announced preliminary financial results for the three months ended December 31, 2020. All amounts are expressed in US dollars unless otherwise stated.

Revenue is expected to be between $18.25 and $18.75 million for the fourth quarter of 2020, an increase of 48% to 52% compared to $12.3 million for the fourth quarter of 2019
Annual Recurring Revenue (“ARR”) is expected to be between $73 and $74 million as at December 31, 2020, an increase of 55% to 57% compared to $47.2 million as at December 31, 2019
Average Contract Value (“ACV”) is expected to be between $33,500 to $33,950 as at December 31, 2020, compared to approximate $27,362 as at December 31, 2019. (Increase of ~23%)

This company appears to meet most of the criteria for this board:
1. Q3 Gross Margins 82%
2. Subscription model with 94% recurring revenue
3. Dollar based net retention may be a bit low, they reported ">100%" in 2019.
4. Revenue growth has been consistently above the 50% mark aside from 47% in Q2 2020.
5. Selling a product every company needs (training platform).. BUT, a very crowded space

A corresponding news release also announced a secondary public offering of 3.65MM shares:
https://www.docebo.inc/news/news-details/2021/Docebo-Announc...

I believe they have 32.6MM shares outstanding today, so that represents an ~11% dilution.

Daws
no position in DCBO
Print the post Back To Top