Docebo offers a cloud-based learning management platform that enables organizations to deliver, manage, and monetize training programs. The platform includes core features such as personalized course delivery, ready-made content libraries, advanced analytics and reporting tools, and AI-powered content creation.
Docebo offers modules for building learning communities, selling training content via e-commerce, and creating customized learning experiences outside the traditional platform environment.
The company also offers specialized integrations with Salesforce And Microsoft Teams, mobile app publishing capabilities, and solutions for training external audiences, such as customers and partners.
The bull case for this TSX tech stock
Docebo delivered third-quarter results that demonstrated the underlying strength of its core learning management platforms business, although the numbers masked solid execution beneath the surface.
The company added $2.5 million in sequential annual recurring revenue (ARR). However, excluding the impact of the Dayforce partnership phase-out, ARR increased 14% year-over-year.
Notably, Docebo reported an EBITDA (earnings before interest, taxes, depreciation and amortization) of 20%, indicating an improvement in operating leverage.
On the Dayforce front, management provided specific guidance on how that partnership will be phased out. The relationship currently represents 6.2% of ARR and is expected to decline to roughly 3.5% to 4.5% of total revenue in 2026, then drop to 1% to 2% in 2027 before becoming insignificant. The accelerated phase-out happened faster than expected, but did not derail the overall momentum.
Docebo made notable progress in the public sector following FedRAMP certification in May. The company has already landed two new federal clients, including an expansion with the Department of Energy and a deal with the Air Force Cyber Academy through its partner Deloitte.
Management originally expected federal victories to materialize in the second half of fiscal year 2026, making these early victories particularly impressive. The FedRAMP certification also helps Docebo win more business in the state and local government markets, where there are increasingly similar security requirements.
Docebo continues to develop its AI strategy with products such as Harmony Search, which has enabled half a million searches since launch.
Docebo introduced an AI credit-based consumption model for modules such as AI Virtual Coach and AI Video Presenter, with the aim of monetizing AI capabilities more directly in the future.
Enterprise wins include notable customers such as Veolia, a French multinational with more than 200,000 employees and a third department Amazon, despite the impending termination of the AWS Skill Builder contract.
Is this TSX stock undervalued?
Docebo significantly underperformed the broader market due to slowing growth. The e-learning platform increased revenue from $41.44 million in 2019 to $217 million in 2024, indicating an annual growth rate of nearly 40%. By comparison, sales are expected to grow “only” 9.3% per year between 2025 and 2029, given consensus price targets.
While Docebo’s revenue growth is slowing, profit margins are expected to steadily increase. Wall Street estimated that adjusted earnings per share will rise from $1.28 per share in 2025 to $2.87 per share in 2029. If the TSX tech stock is priced at 15 times forward earnings, which is quite cheap, it should rise 50% within the next three years.
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