We have yet to see how the world will have changed as a result of the COVID-19 pandemic. However, just a few months later, we already know that things will never be as they were previously. Many industries have changed dramatically. In this article, I will discuss two companies that appear to be big beneficiaries coming out of the pandemic.
A new way to buy groceries
No matter what happens in the world, people will always need to eat. The global pandemic caused a lot of inconveniences upon consumers. Ride-sharing services were avoided, public transportation stopped, and stores put many restrictions into effect. As a result, consumers needed to change the way they shop.
Many turned to online shopping for their needs, and the grocery industry was no different. As consumers continue to adopt this form of purchasing, companies such as Goodfood Market (TSX:FOOD) should thrive.
As a result of the pandemic, Goodfood Market reported some very interesting numbers. In 2018, the online grocery shopping industry was estimated to be $1-1.5 billion. Estimates put the industry at $3-3.5 billion in 2023. With the increased traffic toward this industry during the pandemic, the online shopping industry is now estimated to be $6 billion. That is double the estimated size, three years ahead of schedule. This increase was driven by a sharp rise in penetration by first-time users.
The company also reported that its total number of subscribers increased 358% over the past two years. Goodfood Market’s website is now the seventh most visited among online grocery providers. While this growth is astounding, investors should watch for any weakness in its numbers as the world recovers. However, one thing is certain. Online grocery has fully penetrated society, and this industry will be booming for years to come.
Employee training will look a lot like this
At this point, if you have read any of my previous articles, you should be able to guess which company I am featuring next by the header. Docebo (TSX:DCBO) is one of my top growth stocks in Canada and for good reason.
I have mentioned in previous articles that Docebo has been able to attract high quality companies to use its platform. Examples of these companies are Hubspot, Uber, and Walmart. What is also important to note is the structure with which Docebo has created its contracts. According to the company’s latest earnings report, 65% of enterprise customers are locked under three-year contracts that started in 2019.
This means, that the company will be able to retain a large portion of existing customers while experiencing an increase due to the pandemic. The company has also noted an impressive increase in revenue during the most recent quarter. Docebo’s Q2 revenue almost matched its entire revenue from fiscal year 2017. These are all great signs as Docebo continues on its growth trajectory.
Foolish takeaway
Many industries have changed forever, due to the recent global pandemic. In this article, I highlighted increased adoption within the online grocery industry and e-learning services for enterprises.
Although I would have suggested Goodfood Market and Docebo as excellent growth stocks regardless of the pandemic, these recent events have certainly made these two companies a lot more interesting.
