Docebo Poised To Deliver A Balanced Mix Of Growth & Profitability In FY24: Analyst

Needham analyst Ryan MacDonald initiated coverage on Docebo Inc DCBO with a Buy rating and a price target of $56.

The analyst sees Docebo as a differentiated learning management system (LMS) vendor that is expected to quickly gain share by evolving corporate learning beyond HR into the extended enterprise.

The analyst notes that Docebo is poised to gain share and deliver a balanced mix of growth and profitability in FY24 thanks to a differentiated product suite and growth initiatives fueled by investments in the indirect channel via SI/OEM relationships. 

The analyst estimates revenue and EPS of $180.0 million and $0.58 in FY23 and $221.4 million and $1.09 in FY24, respectively.

In August, the company reported second-quarter FY23 revenue growth of 24.8% year-on-year to $43.59 million, beating the consensus of $43.03 million. Adjusted EPS improved to $0.14 from $(0.02), beating the consensus of $0.08.

Price Action: DCBO shares are up 9.35% at $51.64 on the last check Tuesday.