On 12th March, CIBC analyst Stephanie Price lowered the price target on Docebo from $98 to $83 and provided an “Outperforming” rating on the stock. DCBO stock’s previous close was at $57.93 which shows it was trading at a discount of 43.27% to CIBC estimates.
Shortly after Docebo’s results, TD Securities lowered its price target from $100 to $75 while Canaccord lowered its price target from US$72 to US$65. According to analyst Robert Young, Docebo is well poised to grow market share with its rapidly expanding sales, robust product roadmap, and OEM efforts.
Docebo has been valued at a market cap of $1.89 billion and an enterprise value of $1.67 billion meaning the company has a net liquidity of $0.22 billion.
Q4 Results of Docebo
Docebo is an AI-based learning platform and announced its Q4 results last week. The company recorded a revenue of US$18.8 million, an increase of 53% from the comparative period in the prior year. Docebo’s customer base rose to 2,179 an increase from 1,725 customers at the end of December 31, 2019.
Strong growth in average contract value, calculated as total Annual Recurring Revenue divided by the number of active customers, increased from US$27,362 to US$33,953. This shows an increase in customer spending.
Recorded new logo additions including a customer agreement with Ubisoft to consolidate the latter’s training and compliance requirements while introducing social learning and collaborative elements to its global workforce of 18,000 employees.
Positive cash flow generated from operating activities of US$7.0 million, compared to US$(3.5) million for the comparative period in the prior year.
Analysts covering DCBO stock have an average 12- month price target of $65.03. DCBO revenues are expected to increase to US$91.47 million and earnings are forecasted to increase to US$0.09 per share in 2021.