2. Docebo (TSE: DCBO)
Docebo is a SaaS company that uses its cloud-based AI platform to provide customized e-learning services to organizations for service learning and upskilling. Technology is changing the workplace at a speed never seen before as businesses adapt to changing markets and products. This has led to the massive demand for e-learning and upskilling service providers. As a result, Docebo has found great success with marquee clients like Netflix, Uber, and Starbucks. Having a client roster of blue-chip clients is a positive sign for investors as it shows the real-world success of a company’s product.
Docebo uses AI to help its client provide personalized learning for employees and comprehensive progress tracking for managers. The software trains employees with an AI-powered Virtual Coach to test real-world solution solving at scale. The software then suggests appropriate learning material based on performance to the trainees, all without the intervention of managers/admins who can spend their time more productively while having a bird’ eye view on the progress of all trainees.
Like most technology companies, Docebo has benefitted very handsomely from COVID as many companies were forced to hire work-from-home employees and needed online training services. Furthermore, COVID has led to a systemic shift towards work-from-home, leading to long-term tailwinds for Docebo.
For Q1 2021, Docebo reported revenues of $21.6 million (up 61% YoY) and a gross profit of $17.9 million. EBITDA and net loss were $2.5 million and $5.6 million (one-off expenses) as the company is currently focused on growth over profitability. In addition, Docebo grew its customer base by a staggering 27% over the past quarter.
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